Real Estate
Tax Projections
Transactional
Real Estate
Tax Exemption
& Tax Abatements (ICAP, 421-a, J-51)
Not-for-profit Real Estate Tax Exemptions
(420-a)
Inclusionary Housing Development
Real Estate
Tax Opinion Letters
Korngold Powers LLP analyzes and prepares future projection of real estate taxes for either a new or existing property, whether it is a rental, condominium or cooperative buildings. The analysis considers the value of any real estate tax benefits. The firm has a detailed understanding of how the assessed value and ultimate real estate taxes are determined by the New York City Department of Finance.
Korngold Powers LLP prepares projections and Opinion Letters for future real estate tax expenses for developers, borrowers and lending institutions. Often these Opinion Letters are used in new Condominium and Cooperative Offering Plans. Projection Letters are also often combined with an explanation of anticipated real estate tax benefits such as a 421-a exemption or an ICAP abatement. Lenders often require opinion letters in their analysis to determine the value of a tax abatement or tax exemption benefit.
The attorneys of Korngold Powers LLP have extensive experience representing sellers and buyers, in the acquisition and disposition of mixed-use, multi-family, and commercial properties. In addition, the firm represents sellers and buyers of townhouses, single-family homes and condominium and cooperative apartments.
The firm also represents lenders and borrowers in the placement of acquisition, refinance and construction loans.
The attorneys at Korngold Powers represent landlords and tenants in negotiating, drafting and reviewing commercial leases. We also assist both landlord and tenants in negotiating real estate tax escalation clauses in commercial leases.
The firm represents owners who construct new buildings or make alterations to existing buildings within the City of New York in filing for a tax abatement under the Industrial Commercial Abatement Program (ICAP). The ICAP tax abatement may provide a substantial real estate tax savings where a nonresidential building is altered or constructed in certain areas of New York City.
We counsel developers of new residential construction of multiple dwellings that are eligible for a tax exemption under the 421-a program. Depending on the eligibility criteria, a 421-a real estate tax exemption may provide exemption benefits for a period of thirty-five years. In most circumstances, up to three additional years of tax benefits may be obtained during the construction period.
The firm offers assistance in maximizing the value of an existing property through both the J-51 real estate tax abatement and exemption program and by obtaining approval of a Major Capital Improvement Rent Increase (MCI) from the NYS Division of Housing and Community Renewal. These benefits in certain circumstances may run for as long as 34 years.
Korngold Powers LLP represents many not-for-profit organizations in applications for not-for-profit real estate tax exemptions. These applicants include hospitals, educational institutions, houses of worship, religious organizations, parsonages, historical societies, libraries, cemeteries, and other not-for-profit organizations that own property and use it for exempt purposes. This exemption benefit may grant a full or partial real estate tax exemption to the property owned by the not-for-profit organization.
The firm also counsels and helps eligible not-for-profit organizations apply for contemplated use exemptions where the property of the not-for-profit organization is either vacant or undergoing construction.
We represent developers in the step-by-step process to apply for the Mandatory (MIH) or Voluntary (VIH) Inclusionary Housing Program administered by the New York City Department of Housing Preservation and Development.
Through this program, areas where the Inclusionary Housing Program is applicable, new construction, substantial rehabilitation, or preservation of permanently affordable housing projects may receive additional bonus floor area in return for the creation of inclusionary housing. We also represent sellers and purchasers of Inclusionary Housing Certificates which may allow a developer to use another building's affordable housing to construct a larger building.
