The Federal Housing Finance Agency has reportedly given in to complaints of New York City residents who were upset at a potential ruling which would have barred them from receiving loans from major lenders due to some city properties' flip tax charges.
Through constant phone and mail messages to the FHFA and Senator Charles Schumer, Habitat Magazine states city residents won't have any restrictions placed on them when acquiring a home loan from a flip tax – a flat transfer fee paid by buyers or sellers to property owners. GlobeSt.com reports the Real Estate Board of New York credits a letter-writing campaign by the group's members to state lawmakers as one of the reasons for the ruling's disapproval.
"Barring lending in buildings with a flip tax would have had devastating consequences for New York City’s residential sales market," REBNY president Steven Spinola said in a press release. He added he and the group are thrilled by the results of the campaign to stop the ruling.
The FHFA began legislation regarding the flip tax regulation in August, when it expressed that the ruling may have increased the cost of homeownership in the city, as well as expose lenders to risks from potential liens.
