On August 12, 2010 the Federal Housing Finance Agency (FHFA) proposed a ban on Co-ops, Condos and developers from charging a transfer fee (flip tax) on sales. The FHFA is a federal agency that does not require any legislative action to implement change in banking regulations. This proposal, if enacted, would ban banks from issuing mortgages where a transfer fee (flip tax) exists.
Co-ops would lose the only revenue source available to make the necessary upgrades or capital improvements to their property without taxing shareholders with massive increases in carrying charges and/or assessments.
We realize that co-ops are unique to New York, and perhaps those at FHFA are not aware of the devastating effect this ban would have on our very existence. Therefore, we ask that you join us by reaching out to your city, state, and federal legislators for their support to have New York exempted from this ban. The funds we raise go back into the corporation and are not used for any other purposes.
The FHFA issued the proposal on August 12, 2010 with a cutoff for input on October 12, 2010. Time is of the essence, so please join us by contacting your legislators now.
Arlene Fleishman & Ellie Freiser,
Co-Presidents Mitchell Linden Civic Association
Warren Schreiber, President
Bay Terrace Community Alliance
