Understanding Suspension of Tax Credit Deadline for Mortgage Registration



I am sponsoring a plan to build a new condominium in Manhattan. I understand the Governor’s order has suspended the deadline for using the Mortgage Tax Credit. Can you explain the loan, order and how the suspension works?


New York State Real Estate Law §339-ee (2) states: “In the event that proceeds from a construction mortgage were used to build a condominium unit in accordance [the Condominium Act], or in case the unit is subject to the provisions [the Condominium Act] was subject to a full mortgage, the proceeds of which were used solely for the payment of a construction mortgage or capital expenditures or expenditures for the development or operation of a condominium, or for the purchase of land or buildings for a condominium, provided that such purchase did not exceed two years before the registration of the condominium declaration, and the mortgage registration tax has been duly paid on such a construction or general mortgage in accordance with article eleven of the tax law, then when each unit is transferred first, a loan against mortgage registration taxes is allowed (except for the special supplementary mortgage registration tax, imposed by subsection one-a of section two hundred and fifty-three of the tax law), which would otherwise be payable on a mortgage with money for the purchase, the specified loan must be in the amount as a result of the product of the proportional percentage of the buyer’s interest in common elements and the mortgage tax already paid but for construction. g blank mortgage. Credit is not permitted under this subsection (a) because of a special additional tax on mortgage registration imposed by subsection one-a of section two hundred and fifty-three of the tax laws, or (b) if the first condominium unit is sold for an amount in excess of two years after registration of construction or full mortgage ”.


Source link