The Federal Home Finance Authority has proposed guidance which would terminate the use of Private Transfer Fees. Private Transfer Fees are paid each time a property is sold and are often used for community benefit programs. Private transfer fees have also been used to provide a continual source of income for developers and investors.
The FHFA has received in excess of 2,500 comments. While the FHFA is reviewing these comments the Center for Regulatory Effectiveness is asking the public and the regulated community to comment on the following public policy issues which emerge from CRE’s review of the public comments submitted to the FHFA:
1. Should the FHFA issue a rule in lieu of guidance?
2. Should the FHFA prepare an environmental impact statement on the transfer fee proposal?
3. Should there be a “carve out” for the public use of transfer fees?
Please post your comments at http://www.thecre.com/tForum/?p=68#respond (Scroll down to the bottom of the page to locate the comments section.)
The Center for Regulatory Effectiveness is a regulatory watchdog founded by former members of the White House Office of Management and Budget http://thecre.com/ombpapers/OMB_Officials.htm
For additional information , contact
Jim Tozzi at the Center for Regulatory Effectiveness
202.265.2383
____________________________
Josh Van De Riet
Research Assistant
The Center for Regulatory Effectiveness
1601 Connecticut Avenue, NW Suite 500
Washington, DC 20009(202) 265-2383
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Private transfer fees are a bold attack on private property rights. The real estate community has an extreme stake in stiking down these fees wherever possible. Everyone in the real estate industry’s ox is being gored on this issue. | |||
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12:54am • #1
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Gene, As you know real estate is local. The proposed Federal Housing Finance Agency (FHFA) guidance that would prohibit Fannie Mae or Freddie Mac from buying mortgages on property that have a private transfer tax fee agreement, or a “Flip Tax” as it is known in New York, would seriously disrupt the stability and efficiency of New York City’s housing market. It will hurt buyers, sellers and limit transfers.
The New York City condo and co-op housing market has operated with a flip tax for some time. In one study, it was reported that more than 50 percent of the co-ops in New York City have a flip tax. This tax has bolstered the capital reserve fund of numerous buildings thereby funding critical and necessary capital improvements. These improvements have benefited the residents of these buildings and the surrounding neighborhood. In New York these fees are going back to the property for the benefit of the building and its occupants, not to the building developer. These fees typically fund building maintenance, the repair and replacement of building systems, and additional building wide improvements that benefit the residents. FHFA is principally concerned with the private transfer fee covenant when the project developer, or their designated third party receives the proceeds, not when the fee goes to improve the operation of the building. The Real Estate Board of New York has set up an action center to stop this federal rule. Michael Hall, The Corcoran Group |