Dear Members,
I am pleased to inform you that REBNY's efforts on removing the flip tax from federal lending restrictions have been successful!
Yesterday, the Federal Housing Finance Agency published a proposed rule that would limit Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from dealing in mortgages on properties encumbered by certain types of private transfer fee covenants and in certain related securities. Addressing the concerns raised by REBNY, the proposed rule now excludes private transfer fees paid to homeowner associations, condominiums, cooperatives, and certain tax-exempt organizations that use private transfer fee proceeds to benefit the property.
When the rule was first proposed last fall, REBNY and its membership launched the REBNY Action Center and contacted FHFA and key officials to advocate for exempting the Flip Tax and acknowledging a long standing beneficial practice in New York City housing. The Action Center generated 629 letters - which were over a quarter of the total comments submitted to the FHFA.
Also, lead by Congressman Anthony Weiner, the entire New York City House delegation supported the New York City housing industry and swiftly signed and submitted a letter requesting that federal funds should continue to be available when transfer fees are paid to a cooperative or management to the benefit of a building.
The vocal support by our representatives in Washington was critical, and we owe thanks to our New York City Congressional Delegation, including Senators Schumer and Gillibrand, with particular acknowledgement of Congressman Anthony Weiner who led the delegation effort on this issue.
The press release and the proposed rule are attached and REBNY's history of actions on the Flip Tax can be found on the REBNY website at
Sincerely,
