Former Mitchell-Lama Development Doesn't Owe Transfer Tax
LVT Number: #24435
Trump Village, a Brooklyn housing development since 1961, left the Mitchell-Lama program in 2007 to become a private cooperative building by paying the mortgage, dissolving, and then reforming as a private co-op corporation. In 2009, the city notified Trump Village that it owed more than $21 million in real property transfer taxes because of the restructuring. Trump Village sued the city and lost. The court reversed on appeal, finding that the 2007 privatization wasn't really a transfer of property. After amending its certificate of incorporation, Trump Village remained the same entity and didn't have to pay the transfer tax.
Trump Village Section 3, Inc. v. City of New York: NYLJ, 10/5/12, p. 24, col. 6 (App. Div. 2 Dept.; Eng, PJ, Skelos, Belen, Cohen, JJ)