Celaj, Brija and Gjonaj
Property Tax Consultants LLC

Assessment

Annual Assessment Roll

During the period of my service as the Chief Assessor and later as the Assistant Commissioner at NYC’s Finance/Property Division, we produced the single most important product in City government -- the annual assessment roll.  All assessors and members of the property division worked cooperatively to produce an assessment roll that captures market value to the extent possible within the restrictions placed by law and the overriding needs to assure fairness, consistency and defensibility.

Used the income capitalization guidelines for all class 2 and 4 properties, except for unoccupied vacant land and specialty buildings that are not suitable to the income approach. Assessed all properties appropriately, including those that were partially or fully exempt buildings with PILOT agreements. Reviewed and considered all Tax Commission reductions and Law Department settlements. Used financial information from TCIE’s and RPIE’s whenever it was available and excluded interest income,  lease termination and real estate tax refund.  Where there was no historical data are available, used information from comparable properties or the guidelines to estimate income and expenses.


Commercial Properties

Used the market capitalization rate for most properties. Used above-market capitalization rates in limited circumstances such as for properties with above market rentals where the leases are up for renewal in the very near future. Also, applied higher rates to depressed properties that showed little sign of improvement and to properties that required extensive renovation to remain competitive in their market category. Used below market capitalization rates when justified by special circumstances, where the actual income was affected by old leases.


Vacancies
, leased up space to prevailing area-vacancy levels, and the net effective rent reflected if there were any charges for tenant improvement costs and free rentals that property owners were offering.  Adjusted income where related-tenant leases or book rent was artificially high or low.   Also, adjusted income that is above or below current market rents, where the leases were affected by atypical terms, were not open market transactions or where the lease is more than 15 years old.   Adjusted management expense up or down to industry norms.  Always deleted non-operating expenses such as mortgage interest and amortization charges, depreciation, ground rent, corporate or partnership taxes and officers’ salaries.


RESIDENTIAL PROPERTIES

Buildings built after 1983 are treated as unregulated unregulated if they had no exemption in place.  Buildings built from 1974 to 1982 and luxury buildings of any age may be partially deregulated.   Selected capitalization rates consistent with the area rating, building condition and certainty of the income stream.  For exceptional buildings and superior locations, selected capitalization rates at the lower end of the range. Properties potentially affected by luxury and vacancy decontrol were valued using a lower capitalization rate.  Adjusted management expenses to industry norms, and eliminated miscellaneous operating expenses that were part of management or that exceed normal levels. Always delete non-real estate operating expenses such as mortgage interest and amortization payments and officers’ salaries.

 

Cooperatives and Condominiums were valued based on what its regulatory status would be if it were a rental building of the same age and history.  That is, most pre-1975 buildings were valued on the assumption that the rents would have been subject to rent control or stabilization.  Condominiums and cooperatives are valued as if they were residential rental apartments. Income information from similar rental properties is applied to determine value. choosing similar properties to value condos and coops.  Properties are selected based on a combination of factors such as: location, income levels, building age, size, unit size,  and construction.

Shelter Rent Buildings
Buildings in the Mitchell-Lama and other shelter rent programs are subject to rent stabilization when the subsidized mortgage is paid off if the building was built before 1975. Computed an accurate value even if the building remained exempt for several more years.  For rental buildings, used the actual income reported and actual expenses, with appropriate adjustments to determine value.

Low-Income Buildings

Used the higher end of the capitalization rate range for buildings that are located in distressed areas, were in disrepair or had significant deferred maintenance.  Allowed substantially higher than typical vacancy and collection loss and above normal operating expenses for most items.

Celaj, Brija & Gjonaj 
Property Tax Consultants LLC
931 Morris Park Avenue
2nd Floor
Bronx, NY 10462
Tel#: (718) 918-2684
Fax#: (718) 597-5216
fadil@cbgpropertytax.com
cbgpropertytax@yahoo.com
www.cbgpropertytax.com  
   

Tax Rates for Tax Year 2016/2017 -> Class 1-19.991%, Class 2-12.892%, Class 3-10.934%, Class 4-10.574%.


                                                                                                                                                                   
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