Currently, condo and co-op units are assessed at 60% of market value, while single-family homes are assessed at 100%. Homestead provides municipalities with the legal ability to reclassify, for property assessment purposes, certain condominium units as single-family homes. However, the EIC believes that Homestead is unlikely to be invoked by an incorporated Village of Edgemont for the following reasons:
- Homestead is intended to apply only when a town-wide reassessment results in a substantial shift of the tax burden from commercial properties (which in NY includes co-ops and condos) to single-family homes. Greenburgh just completed such a reassessment (for the first time in 50 years), found no such shift, and therefore the Town declined to invoke Homestead.
- Homestead allows municipalities the option of reclassifying only condos built after 1983. Homestead does not apply to co-op or rental buildings. The EIC has identified only approximately fewer than 50 condos in Edgemont (less than 2% of Edgemont’s housing) that could potentially qualify under Homestead. The Village of Edgemont would be unlikely to invoke Homestead on such a small number of residences, as doing so would raise a negligible amount of revenue for the Village.
For these reasons, we believe that the Village of Edgemont is unlikely to invoke Homestead.