Month: January 2021

Categories
Buying Guide Rentals

New York City Housing Lottery [2021]

Finding affordable housing is a near-impossible feat in New York City, where the average price for a one-bedroom apartment is $2,980. Therefore, debates have sprung up to determine ways to provide affordable housing in New York City. One way is through the New York City housing lottery (NYCHL). The idea is to provide affordable housing that costs individuals a third or less of their household income as rents. It only applies to buildings whose developers are getting tax breaks for setting aside some affordable apartments.

As we move forward, we’ll discuss the New York City housing lottery guide.

Check If You Qualify

To know if you qualify for lottery programs, check each building’s guidelines. Generally;

  • Your age is a crucial factor as you must be 18 years old.
  • Have a good credit score and a history of paying your debt and taxes in time. If your credit score is low, you can start working on it immediately.
  • Your household income has to lie within a specific range depending on the total number of people in your house.

Apply for The Lottery

You do not pay a broker or developer fee to apply for the lottery. You can either apply online through the NYC Housing Connect portal or offline through the mail. Note that developers will discard incomplete or fraudulent applications online or offline. Make sure you sign the application mail before sending it back. Developers may discard your application if you apply more than once for an apartment in the same building. Also, they will not consider your application if you submit it after the application deadline.

Although your chances of winning the lottery are higher if you have a small log number, there’s a way to improve your chances. Each building has preferred groups of people in the selection process. Some of which include:

  • Current community board residents
  • Veterans
  • Some disabled applicants
  • Municipal employees

If you fall within any of these groups, include this in your application to increase your chances of winning.

Getting The Results

Generally, applicants are contacted roughly 2 to 10 months after the application deadline. A developer may reach out to you for one of many reasons.

  • In case there was a flaw in your application for a lottery.
  • If you submitted more than one application for the lottery, and they have disqualified you.
  • The developer will contact you if you are selected to move on to the interview stage.

In some cases, qualified applicants do not go to the interview stage because of the enormous number of people who apply for this housing lottery.
If the developer randomly selects you after the interview, you may sign some more documents and wait for the HPD’s approval before signing the lease. Or you may be put on the waiting list until there is a vacant apartment. Within the waiting period, you have to write to the developer twice yearly to show your continual interest in the apartment.

Categories
Rentals

Manhattan Tenant Rights

People’s rights and democratic freedoms are topics that are on the lips of almost everyone in the 21st century. They range from basic fundamental rights like the right to play to more advanced ones like tenant rights. New movements and protests spring up ever so often to ensure the preservation of individual rights. The goal is to live in a comfortable environment and grants you access to what you deserve. Nobody likes knowing another person has infringed their rights for any reason, tenants inclusive. Therefore, landlords have to make life pleasant for their tenants by ensuring they are safe and comfortable. In this article, we’ll discuss Manhattan tenant rights.

Pest Control

Pests and vermins are such a nuisance to tenants. They ruin clothing, destroy documents, worsen tenant’s health conditions, and spread diseases.

Manhattan tenants have a right to live in a vermin and pest-free environment. Landlords have to ensure they do not breach this right. Landlords ought to fix all leaks, cracks and have an excellent way of containing garbage.

They ought to work only with pest control professionals licensed by the NY State Department of Environmental Conservation. Their job is to inspect the property, identify where pests and vermins hide and use pesticides that are not poisonous to humans to eradicate the pests. They also have to do regular follow up to see that the vermins have not returned to create new breeding grounds.

Tenant Safety

  • To keep children below six years safe, landlords have to hire professionals to reduce lead-based painting hazards. This rule applies to buildings constructed before 1960 and those that have lead paint.
  • Manhattan tenants have the right to request window guards in writing, after which landlords must install them.
  • Tenants have the right to remove double cylinder locks from apartment entrance doors since they are illegal and unsafe.
  • Tenants have the right to request stove knob holders.
  • Landlords must install smoke detectors in every apartment. Also, they have to install carbon monoxide detectors a few feet away from the main entrance of every bedroom. The carbon monoxide detector must have an alarm that signifies when it is almost out of use. Furthermore, they have to give tenants a manual to let them know how the carbon monoxide detector functions and maintenance.

Tenant Heating

  • Tenants have a right to constant hot water supply all year round. Hence, landlords have to make sure it is always available.
  • Landlords have to provide Manhattan tenants with heat from October to May regardless of what temperature it is outside. However, they are only obliged to do so from 10 pm to 6 am daily.

Additionally, tenants have the right to privacy, and landlords can only enter their apartments with their consent. They also have a right to join or form tenant organizations to protect and promote their rights. Disabled tenants have the right to request modifications that will ease their discomfort. However, this will be at their expense.

Call 311 to report right violations to the NYC Department of Housing Preservation and Development (HPD).

Categories
Guide

NYC Heating Laws & Requirements

Outdoor temperatures are dropping, and NYC residents are doing everything possible to stay warm and healthy. NYC heating laws stipulate that landlords must ensure they keep all residential buildings warm during the heating season. The heating season spans from the 1st of October till the 31st of May. They must provide heat between 6:00 am and 10:00 pm if the outdoor temperature falls below 55 degrees Fahrenheit. They must ensure the indoor temperature is at least 68 degrees Fahrenheit.

When Is Landlord Require to Turn Heat on in NYC?

Also, owners and landlords must provide heat between the hours of 10:00 pm and 6:00 pm. The indoor temperature must be at least 62 degrees Fahrenheit. However, there are no outdoor temperature requirements. Additionally, the law requires that building owners provide hot water at 120 degrees Fahrenheit all year round.

The goal is to keep people safe from the biting cold in autumn and prepare them for freezing temperatures in winter. In this light, the HPD helps landlords and tenants understand the heat season’s requirements for heat or hot water problems.

What to Do if Your Apartment Does not have Heating or Hot Water in NYC

If your apartment doesn’t have hot water or heat during the heating season, let your landlord, managing agent, or superintendent know about it. Go through your lease to see the right way to report damages and the need for repairs. You may call or send an email depending on how urgent the situation is. Note that it is your legal right to seek your landlord’s assistance in case of heat or hot water issues. Keep copies of the emails and record all calls because you may need them as evidence in court.

However, if your landlord doesn’t react to remedy the situation, dial 311 to register an official complaint with the HPD. You can also file a complaint using the 311 mobile app or visit 311 online. If you have hearing difficulties, you can file a complaint using a Touchtone Device for the Deaf at (212) 504-4115. the HPD can sometimes get multiple complaints from the same building signifying the same problem.

What Happens When You Report a Landlord to the Department of Housing Preservation and Development (HDP)?

The HPD will try to get in touch with your building owner on the specific issue. After this, they will reach out to you to see if the landlord has solved the problem. You can check your complaint status on the HPD website or through text if you provided a phone number when registering the complaint.

The Department of Housing Preservation will send an inspector to your building within two days tops if your issue is still unresolved. The inspector will carefully assess the entire building to identify the problem. After which, the landlord will have to fix it within a certain period. If not, the HPD will carry out repairs to keep tenants healthy and safe during the heating season. The HPD then levies fees and penalties on uncooperative homeowners through a court order.

Summarily, it is your right as a tenant to have hot water all year round and a heated apartment during the heating season. If you don’t get any of these, you may be subject to hypothermia, dehydration, and other health problems that accompany freezing temperatures.

Categories
Buying

What Is NYC Flip Taxes? And How to Avoid Flip Tax

Flip taxes are a foolproof method to raise funds for a building without incurring additional costs. It is a transfer fee that a buyer or seller pays the cooperative after selling or transferring an apartment. Additionally, flip taxes provide funds for capital improvements. Cooperatives and co-ops have to treat all shareholders equally to ensure the courts approve of the flip tax. Averagely, transfer taxes in NYC range between 1% to 3% of the building’s final sales price. Flip taxes are part of the building’s closing costs.

What Are the NYC Flip Taxes?

There are multiple flip taxes from which to choose. Carefully weigh the pros and cons of each flip tax before making a decision.

The flat fee and per share amount types of flip transfer taxes are similar. Both require that the cooperative sets a fixed flip fee for all shareholders. Also, the flat fee flip tax requires cooperatives to set a flat fee amount for all shareholders. The per-share amount requires shareholders to pay a fixed dollar amount per share.  This policy is beneficial to shareholders to a larger property and those who bought buildings years ago at fair prices. It is a total disaster for shareholders who have smaller buildings and those who bought buildings a few years ago. Nonetheless, it helps maintain a certain degree of order when calculating flip taxes. It is important to know that the flip tax is different from the NYC mansion taxes.

Percentage

The percentage of the sales price is not so different. Here, the cooperative demands a percent of the total amount made from selling the building.

Another method is the percentage of net profit. It is the most stressful method for cooperatives because it is not easy to calculate only the gain from selling a property. After which, they request a certain percentage of the amount.

The combining method is a less popular method cooperatives use to collect flip taxes. It requires combining two or more flip tax methods. Although it works, it is quite tedious.

Who pays the Flip Tax?

Sellers typically cover the cost of flip taxes. Nevertheless, buyers will pay if the cooperative demands the payment of this tax. Therefore, buyers have to carefully read through their real estate contract to know if the seller will pay the NYC flip taxes.

The amount a seller or buyer pays as flip taxes depends on how much the cooperative requires. Since there is no specific amount that cuts across all cooperatives, they demand different amounts. Some cooperatives make a higher demand if the seller sells the property at a high price. The goal is to add funds to the cooperative’s reserve funds.

Cooperatives can change their flip taxes by voting. Every shareholder has to vote before the board makes a final decision. They can only change the flip taxes if the majority agrees to it.

In summary, flip taxes are a fee cooperatives request for maintaining buildings without incurring additional costs. Family members may not pay house flip taxes depending on the cooperative’s policy. Seek the assistance of a real estate agent if you need clarification on your real estate contract.

Categories
Rentals

NYC Rental Laws [2021]

People’s rights and democratic freedoms are topics that are on the lips of almost everyone in the 21st century. They range from basic fundamental rights like the right to play to more advanced ones like tenant rights. New movements and protests spring up ever so often to ensure the preservation of individual rights. The goal is to live in a comfortable environment and grants you access to what you deserve. Nobody likes knowing another person has infringed their rights for any reason, tenants inclusive. Therefore, landlords have to make life pleasant for their tenants by ensuring they are safe and comfortable. In this article, we’ll discuss Manhattan tenant rights.

Pest Control

Pests and vermins are such a nuisance to tenants. They ruin clothing, destroy documents, worsen tenant’s health conditions, and spread diseases.

Manhattan tenants have a right to live in a vermin and pest-free environment. Landlords have to ensure they do not breach this right. Landlords ought to fix all leaks, cracks and have an excellent way of containing garbage.

They ought to work only with pest control professionals licensed by the NY State Department of Environmental Conservation. Their job is to inspect the property, identify where pests and vermins hide, and use pesticides that are not poisonous to humans to eradicate the pests. They also have to do regular follow up to see that the vermins have not returned to create new breeding grounds.

Safety

  • To keep children below six years safe, landlords have to hire professionals to reduce lead-based painting hazards. This rule applies to buildings constructed before 1960 and those that have lead paint.
  • Manhattan tenants have the right to request window guards in writing, after which landlords must install them.
  • Tenants have the right to remove double cylinder locks from apartment entrance doors since they are illegal and unsafe.
  • Tenants have the right to request stove knob holders.
  • Landlords must install smoke detectors in every apartment. Also, they have to install carbon monoxide detectors a few feet away from the main entrance of every bedroom. The carbon monoxide detector must have an alarm that signifies when it is almost out of use. Furthermore, they have to give tenants a manual to let them know how the carbon monoxide detector functions and maintenance.

Heating

  • Tenants have a right to constant hot water supply all year round. Hence, landlords have to make sure it is always available.
  • Landlords have to provide Manhattan tenants with heat from October to May regardless of what temperature it is outside. However, they are only obliged to do so from 10 pm to 6 am daily.

Additionally, tenants have the right to privacy, and landlords can only enter their apartments with their consent. They also have a right to join or form tenant organizations to protect and promote their rights. Disabled tenants have the right to request modifications that will ease their discomfort. However, this will be at their expense.

Call 311 to report right violations to the NYC Department of Housing Preservation and Development (HPD).

Categories
Buying Guide

NYC Transfer Tax Guide [2021]

The NYC Transfer Tax affects all transfers of cooperative shares or real estate property worth over $25,000 from one party to the next. Condos, single-family homes, and all other residential property are subject to this tax.

It is one of the most expensive parts of the closing costs of a transaction. It is also applicable to transfers of majority shares within corporations.

What is the NYC Transfer Tax Rate?

The NYC transfer tax depends on the sales price of the property or shares.

The NYC transfer tax is 1% if the sales price is below or equivalent to $499,999. For NYC, the transfer tax is 1.425% for properties with a sales price above $500,000.

Who Pays the Transfer Tax?

It depends on the deal between the buyer and seller. Generally, the seller is responsible for covering the NYC transfer tax. Some sellers put this forward to attract buyers and keep them glued. However, the buyer may end up paying the NYC transfer tax if tax authorities do not know the sellers’ whereabouts. For new development property, a buyer may pay this tax if the sponsor demands it. In this case, the buyer has to bring the cash at closing. Buyers cannot finance it through other methods.

What is the Reason for the Transfer Tax?

Generally, taxes play a role in increasing government revenue. No matter how small the figure may look initially, it all adds up. The NYC Transfer Tax helps fill government coffers. Tax payer’s money enables the government to achieve some of its goals and improve the city. New York City officials take the transfer seriously because the government has raised impressive amounts in previous years. Therefore, they do a thorough follow-up on the transfer tax and ensure the buyer or seller makes the complete payment. Failure to do so may attract dire consequences on either party.

How to Avoid Paying Transfer Tax?

Many people seek ways to either reduce the transfer tax payment or to avoid it. Here are some tips on how to achieve any of them.

  1. Assess Closing Cost

    Assess how much of the closing costs the developer of a new development building is willing to shoulder. You need this information because the buyer usually pays the NYC transfer tax for a new development building. However, a developer may pay the NYC transfer tax if they are desperate to get the property out of their hands.

  2. Seller Purchase of CEMA

    Sellers should purchase CEMA to minimize their transfer tax. Sellers can cut costs if they do not hire a real estate agent to put up their property for sale. They can put it up themselves on real estate platforms and still find buyers.

However, you can only avoid payment if you qualify for an exemption. You can be eligible for an exemption if you are using the property as collateral for a debt. Also, you are exempted if you are selling or buying the property for a non-profit organization. Government institutions may not pay the tax for various reasons. You are also eligible for an exemption if you sell or buy the property for some US affiliated international organizations.

To conclude, paying your tax is crucial. It would be best to learn more about all the taxes you need to pay to avoid getting in trouble with the authorities. Failure to pay taxes has severe consequences we all should avoid. Consult a real estate agent to get professional advice before buying or selling property in New York City.