Yesterday, the Federal Housing Agency published a proposed rule that would limit Fannie Mae, Freddie Mac, and The Federal Home Loan Banks from dealing in mortgages on properties encumbered by certain types of private transfer fee covenants and in certain related securities. Addressing the concerns raised by REBNY, the proposed rule now excludes private transfer fees paid to homeowner associations, condominiums, certain tax-exempt organizations that use private transfer fee proceeds to benefit the property.
With the help of hundreds of its members who delivered 629 letters to the Federal Housing Finance Agency – more than a quarter of the total responses received – The Real Estate Board of New York (REBNY), the city’s leading real estate trade association, has succeeded in its effort to fight a proposed ruling that would have barred lending in buildings with a flip tax. The proposed ruling could have had a crippling impact on property sales throughout New York City.
Addressing the concerns raised by REBNY and its members, the proposed FHFA rule announced Feb. 1, 2011 now excludes private transfer fees paid to homeowner associations, condominiums, cooperatives, and certain tax-exempt organizations that use private transfer fee proceeds to benefit the property.
When the ruling was first proposed last fall, REBNY and its membership launched the initiative through the REBNY Action Center. Members were encouraged to contact the FHFA and key officials to advocate for exempting the flip tax and acknowledging the long-standing beneficial practice in New York City housing.
Led by Congressman Anthony Weiner, the entire New York City House delegation
supported the New York City housing industry and swiftly signed and submitted a letter requesting that federal funds should continue to be available when transfer fees are paid to a cooperative or management to the benefit of a building.
The Real Estate Board of New York is the city’s leading real estate trade association with more than 12,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the city’s real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation.
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courtesy of:
Mitchell Hall, Associate Broker, The Corcoran Group
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