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.