421-a Conversion into Free Market Status - Please Reply
HelloListmates, Aclient is currently evaluating the acquisition of a multifamily apartmentbuilding in Brooklyn. Theproperty is subject to a 421-a tax exemption, which is scheduled to expire nextyear. Upon expiration of the 421-a benefit, it is understood that all unitswould become eligible for transition to free market status. Withthat in mind, I wanted to reach out to see if anyone has experience or insightinto the technical process required to convert units to free market status, following the expiration of a 421-a exemption. Specifically,I would appreciate any guidance on the following: - The procedural steps required to effectuate the conversion with the relevant city agencies - Any filings or notices that must be submitted (e.g., Department of Finance, DHCR, etc.) - Whether there are any continuing affordability requirements or residual regulatory components (for example, any required percentage of units that must remain affordable post-expiration) Anyinsight or guidance would be greatly appreciated. Thankyou in advance for your time and help. Bestregards,
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ELI SAHIH