On Aug. 12, the Federal Housing Finance Agency proposed a ban on co-ops, condominiums 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 exists.
Co-ops would require CPR or open heart surgery if they lost the only revenue available to make the necessary upgrades or capital improvements to their properties without taxing shareholders with massive increases in carrying charges and/or assessments. Shareholders are middle-income seniors on fixed incomes and young families who have made an investment with the hope of securing a high quality of life. Together, we must preserve what we have worked hard to achieve.
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 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 exempt from this ban. The funds we raise go back into the corporation and are not used as payoffs or kickbacks to anyone as assumed by the FHFA.
Hundreds of thousands of co-op residents will lose their investment if New York is not exempt from this ban. The FHFA issued the proposal Aug. 12 with a cut-off for input on Oct. 12. Time is of the essence, so please join us by contacting your legislators now.
We cannot let this happen.
Arlene Fleishman and Ellie Freiser
Mitchell Linden Civic Association
Bay Terrace Community Alliance
©2010 Community News Group
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