A proposed federal tax could change the way condominiums and co-ops in New York operate and drive property values down, NY1 reported. “The proposed legislation would essentially prohibit Fannie and Freddie and the federal home loan bank from investing in mortgages where the building, be it a co-op or condo, has a flip tax,” said Eva Talel, a partner at Strook & Strook & Lavan. Since a majority of the buildings in New York have a flip or transfer tax, the stability of the local real estate market could be in danger. [more]

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The number of residential projects being developed as condominiums or cooperatives in Manhattan will remain low for the foreseeable future, new figures obtained from the New York State Attorney General’s office show.

Offering plans that were either submitted to or accepted by the attorney general’s office in the first quarter of 2010 were down by more than two-thirds from the same period two years ago, meaning the number of condo projects going forward will be just a fraction of those during the run-up of the market before the credit collapse.

Sponsors submitted fewer than a dozen offering plans in the first quarter of 2010, down 74 percent from 45 in the first quarter of 2008, and just nine plans were accepted in the first quarter, down 67 percent from the 27 accepted in the first three months of 2008, data obtained through a state Freedom of Information Law request revealed. The information did not include the number of plans that were rejected or withdrawn. [more]

Jeffrey Davis, the general manager of Columbus Square, in front of the saltwater pool at 808 Columbus

From the January issue: When history books describe the real estate boom of the mid-2000s, they are likely to mention over-the-top amenities. In the mid-aughts, New Yorkers went mad for buildings with movie screening rooms, roof decks and pet spas. Buyers forked over six-figure down payments, and renters signed pricey yearlong leases, often assuming amenities were included. No more. Amid the hangover of the boom, the next generation of residential buildings will come with a bevy of extra fees and surcharges that New Yorkers aren’t accustomed to paying, often incurred to cover the cost of expensive features designed in more prosperous times. Fees for amenities at rental buildings did exist in some places before, but now are being expanded to include traditionally free features, like roof decks. New condos, meanwhile, are struggling to cover budget shortfalls by implementing transfer fees, special assessments and extra charges for previously included amenities like fitness and party rooms. [more]

From the October issue: It’s often said that the devil is in the details — and for many New
York City buyers and sellers, that’s increasingly become the case in
the down market. New development brokers and real estate lawyers say many of the
attempts they are seeing among buyers to get out of contracts are from
those arguing that the measurements on their condos are different from
what they were promised. They say that sometimes buyers will invoke the
claim over a minor quibble, such as small floorplan discrepancies or an
inch or two difference in ceiling height. Meg Goble, a real estate lawyer and a partner at Hanley & Goble,
said buyers must prove that there are “significant and material”
differences between the representation made to the buyer and the
finished product. However, there is little spelling out of exactly what
that means.