Queens Co-op, Condo Board Presidents Hail Preservation of 'Flip Tax'

Northeast Queens elected officials and co-op board presidents cheered the federal government's decision yesterday to preserve private transfer fees, also known as “flip taxes,” for condo and co-ops.

An initial proposal by the Federal Housing Finance Agency would have forced condominiums and cooperatives to eliminate the fees, which go toward maintaining their properties.

But, on Tuesday, the agency announced it would make an exception for condos, co-ops and homeowners associations.

“The flip tax obviously gives us an additional source of revenue,” said Robert Ricken, board president of Floral Park’s North Shore Towers. “We have over 3,000 residents, so in a building this large it helps tremendously. It saves the residents a one- or two-percent annual increase for maintenance.”

Bob Friedrich, president of Glen Oaks Village, said the tax aids co-ops, which he called the “last bastion of affordable housing.”

“This isn’t just a victory for us, but for all of the people who live in our communities,” he said.

Councilman Mark Weprin, D-Oakland Gardens, said condos and co-ops use proceeds from the fees toward the upkeep of their facilities. He said the Federal Housing Finance Agency’s original proposal would have prevented institutions such as Fannie Mae and Freddie Mac from investing in mortgages on properties with “flip taxes.”

The councilman said the inability of a property to charge the tax upon the sale of an apartment could force some co-ops to assess their shareholders and residents hundreds of dollars more on a monthly basis.

Councilman Dan Halloran, R-Whitestone, said the tax’s elimination would have negatively affected co-op and condo owners, many of whom live fixed incomes.

“The fees pay for capital improvements that would otherwise be a huge burden to the seniors and working class families that live in my district’s many cooperatives,” he said. 

Little Neck Editor Paul Leonard contributed to this story.