Rental buildings face higher assessment

Assessments for rental apartments are expected to increase this year, while co-ops and condos could get a break. The city’s Department of Finance is using a new formula, which Jack Freund of the Rent Stabilization Association said hurts low-income buildings with high operating expenses and low profit margins. That’s because those buildings’ expenses aren’t factored in. “They will get socked with a value that is higher than the income capitalization approach, and it is destructive of the city’s affordable housing stock,” Freund said. Condo owners and residential multi-family property owners will receive a new tax assessment notice.