Who knows about tax abatements?

bklynnewbie

I just purchased in the area they are trying to sell as Park Slope South. Being a newbie to this process, I will not try and say that I was very savvy. Throughout the whole process I was lead to believe that the abatement was in place already. I did not push the issue nor my lawyer or mortgage broker pointed out otherwise. At my closing, the mortgage paperwork all of a sudden had this inflated number that included monthly escrow for taxes. It was then said that "it was due any day," and like the deer in headlights that I was I didn't make a huge issue out of it, nor my lawyer. Cut to now, my 1st mortgage payment has these taxes included. My lawyer is talking to all the necessary people who say that all the paperwork has been filed, they have not been asked for anything further, it will be retro once approved. I feel like I have been HAD! Besides me not being savvy, I am asking myself who slipped up here. My lawyer?? And, by the way, does anyone know why a tax abatement would NOT be granted??

Thanks so much.

jamzer

New York State and New York City offer abatements to senior citizens, veterans, etc, etc. It should be easy for you to go onto ACRIS (the city's property tax database) to see what abatements were on the property when you bought it. You are not automatically eligible for all abatements, but you should at least qualify for STAR.

Good luck getting to the bottom of this.

laura782

Did you purchase in a new building? Chances are high that your building is eligible for the abatements but it just hasn't been inspected yet by the apprpriate agencies to finalize the decision. I'm not positive, but I think you will get paid back for taxes paid until the abatement is finalized. Most buildings that are eligible do end up getting the abatement, so as long as you can afford a couple of mortgage payments with the tax you should be ok. Good luck.

brooklynjack

There are many abatements. Sounds like you are talking about a 421a for new construction of multi family dwellings

http://www.nyc.gov/html/dof/html/property/property_tax_reduc_taxreductions.shtml

IF you want to know the real scoop call the Department of Finance
Property Tax Customer Assistance
(8am-5pm, Monday-Friday)
212-504-4080

brooklynjack

Jamzer wrote: New York State and New York City offer abatements to senior citizens, veterans, etc, etc. It should be easy for you to go onto ACRIS (the city's property tax database) to see what abatements were on the property when you bought it. You are not automatically eligible for all abatements, but you should at least qualify for STAR.

Good luck getting to the bottom of this.

ACRIS is for transfer and lien info, not taxes

Tax info is here

http://nycprop.nyc.gov/nycproperty/nynav/jsp/stmtassesslst.jsp

bklynnewbie

I did buy in a new building and it is a 421a. Thanks so much for the info!

jmd

The New York Attorney General's office requires all Developers and Sponsors to put in the front section of the offering plan ( Special Risk Section) ( the big book your lawyer reviewed and hopefully discussed with you before you signed the contract) that the tax abatements are NOT guaranteed and if obtained they can not guarantee that the abatement will commence when you close on your purchase. On new construtcion buildings it can sometimes take a year or more from the offering to get the abatement ( the building has to be complete, the condominium papers have to be recorded with the City and the declaration of effectiveness has to be okayed by the Attorney General's office before the filings for the abatement are completed) and the buyer has to pay the higher taxes until it is obtained. MANY times it is not retroactive BUT goes for the full period of time ( 12-20 years) from when it first starts. When the tax abatements comes in you can take the tax bill to the bank and request a reduction in the escrows The bank will be paying your taxes as the CITY charges them so they need the money every month to be 1/12th of the annual taxes for your apartment.

Reasons not to get the abatement : the cost per room is higher than the law allows for an abatement ( in rehab buildings) or the developer didnt meet guidelines of the application process ( including construction being starated by a certain date)

PERHAPS the bank is collecting escrows based on the whole building and not just what your unit is to pay?

Get all the people inthe building to press the developer to make sure they are pushing to get the abatement as fast as the City will move.