421-a Enforcement and Compliance + NYC Property Tax Rates Set for 2022/23

June 16, 2022

We have been made aware that the Department of Housing Preservation and Development (HPD) has commenced enforcement actions against property owners who have not submitted their required Annual Rent Registrations. Enforcement actions include suspension and/or revocation of 421-a benefits. Correction of these concerns typically require partial repayment of the benefit during the noncompliant period and an extension of the rent stabilization term. It is absolutely imperative that you continue to file the annual Rent Registrations here: NYS Homes & Community Renewal - Single Signon.

NYC Property Tax Rates Set for 2022/23

• Class 1: Most residential property of up to three units (family homes and small stores or offices with one or two apartments attached), and most condominiums that are not more than three stories.

• Class 2: All other property that is not in Class 1 and is primarily residential (rentals, cooperatives and condominiums). Class 2 includes:

• Sub-Class 2a (4 - 6 unit rental building);

• Sub-Class 2b (7 - 10 unit rental building);

• Sub-Class 2c (2 - 10 unit cooperative or condominium); and

• Class 2 (11 units or more).

• Class 3: Most utility property.

• Class 4: All commercial and industrial properties, such as office, retail, factory buildings and all other properties not included in tax classes 1, 2 or 3.

Class 1 20.309% (1-3 family homes)
Class 2 12.267% (residential 4 units or greater)
Class 3 12.755% (utility)
Class 4 10.646% (commercial)

Brett J. Gottlieb at +1 212 592 1455 or [email protected]

© 2022 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.