SHEEPSHEAD BAY'S ONLY INDEPENDENT NEWS BLOG

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It looks like the city may have screwed thousands of New Yorkers out of a tax break that benefits condo and co-op owners, according to a report by Crain’s.

The confusion came about when tens of thousands of New York condo and co-op owners received letters from the Department of Finance telling them that a change to an existing tax abatement that was passed by the legislature this past January disqualified them from collecting the break.

The problem is that the new legislation disqualifies secondary residences – but the department erroneously sent the letters to thousands of primary residences, which still qualify for the full tax break.

The financial implications are huge, as those incorrectly excluded from break could lose out on an extra $1,000. Who or what to blame for the screw up was not entirely clear:

“Some people have been in their homes, 20, 30 or 40 years and are getting these letters,” said Mr. [Warren] Schreiber, [co-president of the Co-Op and Condo Council in northeast Queens]. “I think what happened is that the Department of Finance’s records are out of date, but it’s causing a lot of confusion and chaos.”

And it’s not the first time a mistake like this has happened. Nearly two years ago, Finance Commissioner David Frankel acknowledged the department had erred on 15,000 property bills the city mailed that July because of a “computer glitch.”

But in this case, a Department of Finance spokesman said the agency had used available data to determine which of the city’s 360,000 condo and co-ops would qualify for the abatement, and automatically enrolled 230,000 of them. In instances where there was not enough information, the agency sent out 130,000 of the letters to homeowners saying they were not eligible for the tax break.

Still, all hope is not lost for those who incorrectly received the letter disqualifying them from the break. The letter does inform residents to fill out a form by April 1 and mail it back to verify that their address is indeed their primary residence.

The Department of Finance stated that the letter was useful for updating their records, but it hasn’t stopped residents, especially the elderly, from getting anxiety that their financial planning may be out of whack.

Do you own a condo or a co-op and incorrectly receive a letter from the Department of Finance? Let us know. Oh, yeah, and let the DOF know, too.

Gallo joins members of the Cooperative Community Organization (Source: Gallo campaign)

Don’t be fooled into thinking the campaigns for the 45th Assembly District, currently occupied by Assemblyman Steven Cymbrowitz, are over. The September 13 primary that saw Cymbrowitz best Ben Akselrod was only the first round, and the incumbent now faces off against Republican Russ Gallo.

Gallo is ramping up his campaign and is now borrowing a play from Akselrod’s book, seizing on the mounting frustration of  some of the district’s co-op owners who find themselves swept up in divisive battles with their co-op boards’ alleged abuses. [UPDATED]

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A resident of 2800 Coyle Street, shareholders of which tried to boot their board in 2010.

Frequently, Sheepshead Bites receives messages from aggravated co-op apartment building residents, taking issue with their board. In the past, co-op shareholders have even organized anti-board rallies in attempt to overthrow the board.

Tomorrow night, frustrated co-op shareholders can express their dissatisfaction and discuss the challenges they face at a town hall meeting in Sheepshead Bay, hosted by Davidzon Radio, Assembly candidate Ben Akselrod and Senate candidate Andrew Gounardes.

If you have complained to Sheepshead Bites in the past, or are simply annoyed with your situation as a co-op shareholder, attend this meeting and speak your mind. Representatives from the Attorney General’s office, elected officials, and lawyers who deal with co-op issues were invited to join. Share your experiences with them, and maybe something will come of it.

Gounardes, the Democratic candidate for the NY State Senate’s 22nd District, and Akselrod, Democratic primary challenger for the State Assembly’s 45th District, and the Cooperative Community Organization will host this meeting on August 15 at 6:30 p.m. in the Davidzon Radio Office, located at 2508 Coney Island Avenue on the second floor.

Source: estately.com

Hardly a week goes by where Sheepshead Bites doesn’t receive an e-mail from an aggrieved co-op apartment building resident, taking issue with their board. Sometimes they even organize anti-board rallies or try to usurp the board altogether. And one thing’s for sure, there ain’t much oversight over these quasi-corporate, quasi-residential buildings.

Well, now there’s a show for them – and anyone else thinking of buying a co-op unit.

The Russian American Community Coalition of New York (RACCNY) is set to create “Co-Op Passions,” a reality show which will depict the many issues related to the rights of cooperative shareholders.

A “co-op,” or cooperative, is a jointly owned commercial venture that constructs and allocates goods and services. They are generally run in order to benefit their shareholders. However, as will be demonstrated in the show, Co-ops can come along with more harm than benefits.

The show will presumably include 10 episodes, which are to be aired on YouTube and Facebook. It will convey true stories of New York shareholders and the issues they faced with the Co-op board members, sponsors, supers, and management companies. Names will be changes in order to protect the identities of those featured in the show.

The first five episodes of this reality show are already underway. The first episode, entitled “Problems Problems Problems…” will display the rampant infringements on the rights of cooperative shareholders. “Where Has Our Money Gone?” the second episode, will portray the misuse of monetary power in Co-ops. The third episode, “What Can I Do?” will educate shareholders on ways in which they can protect their rights and interests. The fourth, “Independent Inspection,” shows a situation in which an independent inspection of a shareholder is arranged. “Legal Aid,” the fifth episode, will feature stories of cooperative shareholders who attempted to file a complaint through the office of the Attorney General.

This show is part of a project that wishes to expose the unknown side of Co-op ownership. Through the use of cinematic techniques, the internet, and the media, RACCNY hopes to reveal the problems related to Co-ops. They wish for government officials to respond and attempt to fix these setbacks. Consequently, if successful, RACCNY feels this project will assist in reinstating fairness to cooperative shareholders in the eye of the law.

RACCNY is a non-profit organization that attends to the Russian speaking community of New York. In addition to other activities, RACCNY seeks to aid owners of New York Cooperatives apartments, help them comprehend their entitlements as shareholders, and assist them in handling arguments. They also hold seminars and offer free legal advice to shareholders.

Courtesy of New York Times

In a real estate piece profiling the square-mile community, the New York Times portrayed Brighton Beach as a place where condos, co-ops and generally tall buildings are thriving despite a battered market. And fueling that success was an ocean view and a bustling community – and housing stock that can be easily demolished.

Starting around 2005, so that residents inland could enjoy (and pay accordingly for) panoramas, developers began erecting apartment towers as tall as Ms. Correa-Pinto’s. On those lower-slung blocks, the buildings seem gargantuan, like redwoods among ferns.

Keep reading the NYT excerpt, and see what we think they forgot to ask.

Anti-trash sign posted in the front window of an apartment building.

The message on this sign addresses what seems to be a growing problem all around Sheepshead Bay: trash left in front of residences by its very own residents.

In case the ALL CAPS message is too ‘loud’ to read, here’s the full text:

To those leaving their coffee cups, cigarette packs, & other trash next to lobby window stop it.

You might find your trash left by your apt. door & the management & all tenants made aware of what disrespectful slobs you are. As adults you should know better.

Rising co-op prices could alter Sheepshead's character for years to come (Photo courtesy of Lisanne Anderson)

What to do, what to do, what to do? When panic consumes much of the real estate market, many of my clients were still able to find good values for co-ops in Sheepshead Bay. Last week I completed two closings, one for $150,000 for a one bedroom in Gravesend and another for $225,000. You can’t find prices like that in nieghborhoods as good as Sheepshead Bay anymore. However, cue the tax man, because Governor David Paterson now wants to put a mortgage recording tax on co-op purchases.

Let me explain: When one buys a home, let’s say in Midwood, the purchaser will pay anywhere from 2.05 percent to 2.175 percent mortgage tax on the amount of mortgage they take out for the property. That occurs at the closing. However, since co-ops were not considered real property for tax purposes (they were thought of as personal property, more specifically shares in a corporation), co-op purchasers would literally pay a fraction of the closing costs that purchasers of homes and condos would.  We’re talking thousands upon thousands of dollars in savings, which is, among other thing, what made co-ops a good value. Now, to close a budget gap (until our next one shortly thereafter) Governor Paterson wants to do away with this exemption. You can imagine that co-op owners and propsective owners aren’t thrilled by this.

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Ronnette Gleizer was one of more than 20 residents of 2800 Coyle Street protesting the co-op board
in the building's lobby

Residents of a Sheepshead Bay co-op apartment building have turned a series of disagreements into an ugly, bitter, and personal fight pitting neighbor against neighbor.

The worst part is, it can happen in almost any co-op.

The entrance to 2800 Coyle Street sits about halfway up the block, between Emmons Avenue and Shore Parkway. Last Tuesday, January 26, all was quiet on the sleepy street. But inside, about 20 disgruntled residents gathered in the lobby donning protest signs and trading war stories about the building’s overseers.

They said they were there to oppose the “Tyranny and Corruption of the Majority Board of Directors,” specifically five members of the eight member board that they say run the gamut from incompetent, to corrupt, to an organized crime syndicate. (Technically the board has nine members, including one appointed by the sponsor, LeFrak organization, who remains neutral.)

“It’s just amazing the tactics that they use,” said Diane D’Agostino, a former vice president of the board. “It’s like I’m not even living in the United States of America. I have never been treated so horrendously as I have been by this board. It’s terrible.”

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Real estate is a nebulous industry, filled with scams, screwballs, and the occasional sweet deal. That’s why we’ve asked a locally born-and-bred real estate lawyer to make sense of it all. Sheepshead Bay bankruptcy and real estate lawyer Daniel Gershburg will contribute a regular column about the real estate scene. His first piece gives buyers tips for getting into that coveted Sheepshead Bay apartment co-op, a segment of real estate that represents a huge chunk of sales in the neighborhood.

So you want to buy a co-op in Sheepshead Bay? But you have questions that your real estate broker refuses to, doesn’t, or can’t answer. What do you do?

Well, what I can tell you is that when you buy a co-op in Sheepshead Bay, or anywhere for that matter, the first thing you should do is do some internet research on the address. You can try looking on Trulia.com. But my search would be more general. There are tons of forums online discussing issues with co-ops. From aggrieved co-op owners complaining about poor management to lawsuits against corporations, you can find everything. But that’s just the start. You should also ask your real estate broker about whether they have had past clients in the building and if they could put you in touch with any so you can ask them about their experiences. Is this out of the box? Absolutely. But it works better than many other things out there. Do your research before you purchase a co-op in Sheepshead Bay.

But let’s take this a step further. Say I am purchasing a co-op in Sheepshead Bay. I’ve done my research, spoken to people in the building, and now I have my interview. What can I expect?

Anything. That’s right, anything. A co-op is a corporation. The board of directors are therefore making a business judgment as to whether or not you “fit in” financially and otherwise with the building. Now unless you have a habit of fighting pit bulls in your apartment, you’ll likely be fine so long as your financials are okay. Having said that, if you are rejected for one reason or another, the co-op technically does not have to disclose the reason you were rejected, other than saying, “Sorry you can’t live in this co-op in Sheepshead Bay, try Brighton Beach.” Yes, yes you can try and sue and all those good things, but it will cost you money and will usually not leave you in a better position. The best way to avoid this embarrassment is to literally be as prepared as possible. Each co-op has a “package” which has to be prepared including your financials, references, et cetera. Make sure you go over this diligently before the meeting and everything is complete. Make sure you look prepared for the meeting.

When you buy a co-op in Sheepshead Bay, when will the closing take place?

This is one of those “Why is the sky blue?” questions. There are so many variables involved here. Typically a closing for a co-op in Sheepshead Bay will take place immediately after the co-op approves the individual and the bank clears financing. There are, however, many hurdles and obstacles that your attorney will have to navigate for you. Sometimes the bank is late, or they haven’t apprised you of issues they have, which delays financing. Sometimes the board won’t meet for several months, thereby delaying the closing and causing you to make sure your rate for your loan is locked with the bank. Sometimes the management company’s attorney will request a delay in closing to make it occur at a convenient time for them. There are literally multiple variations that could delay your closing, so make sure you choose an experienced real estate lawyer in Brooklyn to help you through this. It’s not a sales pitch, it’s reality. Just ask anyone who has gone through the process.

Daniel Gershburg Esq., is a real estate and bankruptcy attorney with offices in Sheepshead Bay and Manhattan. The practice was specifically set up to change the way people view attorneys, by incorporating radical ideas like calling people back quickly, returning emails, giving clients ’round the clock access to their cases and charging low fees. For more information please visit Brooklyn Real Estate Attorney Daniel Gershburg‘s website.