FLIPPING THE FHFA

A proposed ruling that would have barred lending on multifamily buildings with a flip tax has been defeated. The proposed Federal Housing Finance Agency rule announced Tuesday will continue to allow purchasers of co-ops and condos that feature a flip tax to have access to federal loans from Fannie, Freddie, and the Federal Housing Administration. In other news, Republicans took note and added the same flip tax law to healthcare, hoping that falls as well.
REBNY prez Steve Spinola says that barring such lending would have devastating consequences for NYC’s residential sales market. When the ruling was first proposed last fall, REBNY and its membership launched an initiative in which 629 letters fighting the proposal were delivered to FHFA—more than a quarter of the total responses received. Congressman Anthony Weiner led the entire NYC House delegation, supported by the housing industry, and submitted a letter requesting that federal funds should continue to be available. “This was a case of a clearly unintended consequence that the agency wisely avoided,” he said yesterday in a statement. “Flip taxes are important and fair for co-ops in NYC. A ban would have been disastrous.”

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

RXR Marketing Executive Lauren Maturo Dies At 32

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Weil Gotshal Wind-Down Leaves 830K SF Hole In America's Office Market

Meet Bisnow's 2026 New York Power Women Honorees

Related, Oxford Land Tenant For Top Floors Of 70 Hudson Yards

BXP Execs See Better Returns In Building Offices Than Buying Them

Foundry Robotics Leaves San Francisco For New East Bay HQ

Tenant Rep Firm Expands To Philly, Hires Industry Veteran

Data Centers Lose The Top Spot, San Francisco Jumps 40 Places: 9 Takeaways From ULI's 2027 Outlook

$60B Fintech Ramp Inks Huge Expansion In Flatiron: The N.Y. Deal Sheet

As The Future Of The Office Continues To Evolve, WeWork Is Bringing Clients A Tailored Workplace Solution

Cushman & Wakefield, NYC Added To Suit Alleging $250K Agency Lease Shakedown