Cooperatives & Condominiums

Condominium Not Required To Disclose Rent Rolls for Unsold Apartments

Matter of Trump Parc Condominium v. The Tax Commission of the City of New York

NYLJ 12/20/06, p. 25, col. 3

Supreme Ct., N.Y. Cty

(Tolub, J.)

In a proceeding brought by the condominium for a review of tax assessments, the tax commission sought an order directing condominium to disclose rent rolls for unsold apartments, information regarding the income of each of the owners and tenants of the residential units, and income and expense information for the commercial units. The court denied the requested relief, finding no valid reason to support the request for information.

The subject property's residential units were converted into a condominium in the 1980s, and the building currently has about 344 residential units, 76 storage units, and four commercial units. When the condominium brought this challenge to the building's assessments for years beginning with 1994/95, the city sought the requested information, citing its obligation to determine the building's value as a rental building, which required it to determine when each of the units would have become eligible for deregulation.

In denying the city the requested information, the court acknowledged that, by statute, the city may not assess a building held in common ownership at a higher amount than the building would have been assessed had it been maintained as a rental building. RPTL ' 581[1][a]; RPL ' 339-y[1][b]. But the court noted that the condominium had conceded that none of its units were subject to rent stabilization. The information sought by the city, however, would be valuable only in assessing whether and when the units would have become eligible for market rates. Once the condominium conceded that the units should be assessed as if they were rented at market rates, there was no further need for the city to receive the information it sought. The court hinted that the city's main motivation might have been to harass the unit owners in a way that dissuaded them from challenging future assessments.

Condominium Not Required To Disclose Rent Rolls for Unsold Apartments

Matter of Trump Parc Condominium v. The Tax Commission of the City of New York

NYLJ 12/20/06, p. 25, col. 3

Supreme Ct., N.Y. Cty

(Tolub, J.)

In a proceeding brought by the condominium for a review of tax assessments, the tax commission sought an order directing condominium to disclose rent rolls for unsold apartments, information regarding the income of each of the owners and tenants of the residential units, and income and expense information for the commercial units. The court denied the requested relief, finding no valid reason to support the request for information.

The subject property's residential units were converted into a condominium in the 1980s, and the building currently has about 344 residential units, 76 storage units, and four commercial units. When the condominium brought this challenge to the building's assessments for years beginning with 1994/95, the city sought the requested information, citing its obligation to determine the building's value as a rental building, which required it to determine when each of the units would have become eligible for deregulation.

In denying the city the requested information, the court acknowledged that, by statute, the city may not assess a building held in common ownership at a higher amount than the building would have been assessed had it been maintained as a rental building. RPTL ' 581[1][a]; RPL ' 339-y[1][b]. But the court noted that the condominium had conceded that none of its units were subject to rent stabilization. The information sought by the city, however, would be valuable only in assessing whether and when the units would have become eligible for market rates. Once the condominium conceded that the units should be assessed as if they were rented at market rates, there was no further need for the city to receive the information it sought. The court hinted that the city's main motivation might have been to harass the unit owners in a way that dissuaded them from challenging future assessments.