FEMA Policy to Assist Co-ops and Condos

News and Resources

After Hurricane Sandy, thousands of homeowners in damaged co-ops and condos were surprised to learn that they were largely barred from federal disaster assistance given to single-family homes. Under FEMA policy co-ops, as well as condominium and other homeowners’ associations, are considered business entities not eligible for assistance that can reach up to $30,000 per household. A group of New York and New Jersey legislators plan to introduce a bill in Congress this week seeking to change a longstanding Federal Emergency Management Agency policy that make it impossible for co-ops to obtain grants for damages to lobbies, roofs and other common areas.

Read the full article, published in the New York Times on July

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Co-op and Condo Property Tax Guide

Co-ops or Condos?

N.Y. State Law mandates that New York City value all Class 2 properties as income producing, based on their income and expenses. This means that when you see the Market Value that NYC assigns to your property, it may not look like what you would expect its sales price to be.

To get to your Market Value, NYC uses a statistical model as a tool to find typical income and expenses for properties similar to yours (in terms of size, location, number of units and age). Next, a formula is applied to the income data to get to your Market Value.  All rental buildings, cooperatives and condominiums are valued as if they are income producing properties. There are variations in how  your Market Value is determined depending on whether you live in a larger condo or co-op with 11 units or more, or a smaller building with 10 units or fewer.

The rules, regulations and the system can all be very confusing, but NYC has published a guide that explains and may clarify the issues.  The guide is available here.

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