Income Tax
Resources Provided Due To COVID-19
Homeowners
Federal
· Coronavirus Aid, Relief and Economic Security (CARES) Act (the Stimulus bill signed into law 3/30/20)
o 1-4 family homeowners with Federally-backed mortgages can request a forbearance of up to 180 days, and if needed, request a 180-day extension.
§ No negative credit reporting;
§ No late fees as a result of the forbearance should be charged; and
§ No interest beyond the amount that would accrue if the borrower had continued paying should be charged to the borrower.
o Multifamily building owners (5+ units) with Federally-backed mortgages may obtain forbearance relief for up to 90-days, with the option to request a 90-day extension.
§ Tenants cannot be evicted for non-payment while the building’s mortgage is under forbearance, nor can the landlord initiate eviction.
o Except with respect to a vacant or abandoned property, a servicer of a Federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure sale for not less than the 60-day period beginning on March 18, 2020.
o Watch Marion McFadden, SVP, Public Policy, Senior Advisor, Resilience at Enterprise Community Partners breakdown what the CARES Act means for affordable housing.
· Fannie Mae and Freddie Mac
o Fannie Mae and Freddie Mac are rolling out a new mortgage payment deferral option for homeowners facing a short-term financial hardship. Payment deferral will be an alternative to the forbearance plans and loan modifications currently being offered. More information will be released in the coming months. Servicers will begin evaluating borrowers to see if they are eligible for payment deferrals beginning July 1.
· Chase
o Chase is offering homeowners call in to report financial hardship because of COVID-19 a 90-day forbearance. After the forbearance period is over, homeowners will be offered the option to resume regular payment or apply for a loan modification. *Homeowners must be current or less than 30 days delinquent to be eligible for forbearance.*
o Call the Chase Helpline: 1-888-356-0023 OR go sign-in to Chase.com and click on ‘Are You Affected by Covid-19? Do You Need Assistance’ and follow the prompts.
o If homeowners do not reach out to Chase and miss a payment, the Collections team will reach out to let homeowners know about the options.
· The National Consumer Law Center (NCLC) is tracking major consumer protections announced in response to COVID-19 both at the federal and state level. See more here.
· Listen to NHRC’s Leaders in Housing Counseling recording of Disaster Preparedness in the Era of Coronavirus here. See attachment for discussion highlights and links to resources. Share your coronavirus client stories by completing this survey.
New York State
· New York State Attorney General’s Office
o Elizabeth Lynch and Mark Ladov at the AG’s office are collecting complaints about servicers implementation of COVID-19 homeowner relief. Specifically, they want to know:
1. are servicers providing forbearance agreements as required under the CARES Act and NYS law;
2. what options are servicers providing for non-FHFA borrowers when forbearance is over; and
3. what proof, if any, are servicers requesting to document COVID-19 hardship?
o Advocates should email [email protected] and [email protected] with the name and address of the homeowner, the name of the servicer, whether the mortgage is government-backed or not, and brief description. If homeowners do not consent to information sharing, you can still share the problem and the servicer at issue.
New York City
· Department of Finance (DOF)
o Yesterday, Mayor de Blasio announced the tax lien sale will be postponed until late summer. Learn about DOF’s programs to get properties off the list here.
o Contact Sheila Voyard, Director of Outreach at DOF
212-602-7094
· Food resources
o Southern Brooklyn Community Organizations Active in Disaster compiled a list of food sources in the City.
Non-profits
Funding Opportunities
National
· Coronavirus Aid, Relief and Economic Security (CARES) Act (the Stimulus bill signed into law 3/30/20)
o The CARES Act allocated $350 billion in funding to help keep workers employed amid the pandemic. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small business and non-profits. Loans can be used for operational costs including:
§ payroll expenses
§ health benefits, paid, sick, medical/family leave and insurance premiums
§ mortgage interest
§ rent payments
§ interest on debt incurred before the covered period
o Learn more about the CARES Act here. The Jewish Federations of North America has created guides, webinars, and powerpoints about this small business loans available for non-profits.
· Open Road Ventures
It may be true that “Nothing in life is certain except death and taxes,” but at least there are a few ways New York City homeowners can reduce their property taxes. These include:
Filing for all exemptions for which the homeowner may be eligible
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Requesting corrections of the property data that appear in the Notice of Property Value sent in January
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Filing a written request with the NYC Department of Finance to review the estimated market value of the property listed on the Notice of Property Value sent every January
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Filing a written request for with the NYC Taxation Commission for an assessment appeal ($175 filing fee)
Tax Exemption Requests
Different forms are used when filing for exemptions for the first time, when changing an exemption, and when renewing an exemption.
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Basic STAR and Enhanced STAR exemption. “STAR” stands for School Tax Assessment Relief.” Basic STAR is available to homeowners of any age whose annual income is less than $500,000. Enhanced START is available to homeowners age 65 or older whose annual income is $84,550 or less. First-time applications for these exemptions must be submitted to New York State Department of Taxation and Finance (NYSDTF). Apply by calling 518-457-2036 or visiting www.tax.ny.gov/star. You must provide the homeowner’s birthday, Social Security Number, and the date the home was purchased (refer to deed) or date of last deed update. NYSDTF will decide if the homeowner is eligible for Basic or Enhanced STAR. If eligible, the homeowner will receive a rebate check.
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Upgrading from Basic to Enhanced STAR. Applicant must be 65 or older, earn less than $84,550 per year, and apply through the NYC Department of Finance by submitting the required documentation along with the form Homeowner Tax Benefit Application for STAR Exemption
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First-Time Requests for Senior, Veterans, Disabled, and Clergy Exemptions: Applicant must apply for these exemptions by submitting the required documentation along with the NYC Department of Finance form Tax Benefits Application for Homeowners
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Renewal of Senior Exemption: Applicant must be 65 or older with an annual income below $37,400. Note: A senior may have BOTH the Senior Exemption AND the Enhanced STAR exemption at the same time. Starting in 2017, seniors must now renew their senior exemption every two years. Applicants must re-apply by submitting the required documentation along with the NYC Department of Finance form Senior Citizen Homeowner Exemption (SCHE) Renewal Application for 2017/2018
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Renewal of Disabled Exemption: Starting in 2017, disabled homeowners must now renew their disabled exemption every year. Applicants must re-apply by submitting the required documentation along with the NYC Department of Finance form Disabled Homeowner Exemption (DHE) Renewal Application for 2017/2018
Correcting Property Data
The NYC DOF lists a description on p. 2 of the Notice of Property Value, which it sends every January. If the info is incorrect, resulting in an unnecessary increase in your property tax, file a request by April 3, 2017 to correct the data using one of the following two forms:
For 1-, 2-, or 3-unit, residential rental properties:
Request to Update Property Data for Tax Class 1 Homes
For 4+ unit, residential rental properties, coops, and condos:
Request to Update Property Data for Tax Class 2 Homes
Challenging Property’s Market Value
To challenge the city’s tentative assessment of a property’s market value listed on Notice of Property Value sent in January, a homeowner may file for both or either of the following:
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Department of Finance Request for Review of Market Value
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Form for Class 1 properties (1-3 family):
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Form for Class 2 properties (4+ family, condo, coop):
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File by March 15, 2017
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Free to file
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Tax Commission of the City of New York: Appeal to Correct Assessment
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After you receive your Notice of Property Value in January, complete Form TC600: http://www.nyc.gov/html/taxcomm/downloads/pdf/tc600.pdf
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File by March 15, 2017 if the property is a 1-, 2-, or 3 family
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File by March 1, 2017 if the property is a 4-family or above, a condo, or coop
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$175 fee if assessed value is $2 million or more
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