Bulletin: NY000367

Date:
August 12, 2008
To:
New York State Office Counsel, Managers and Agents
RE:
Peconic Bay Transfer Tax Exemption

Chapter 349 of the laws of 2008 has created an exemption FROM THE Peconic Bay Transfer Tax in the towns of Southampton, East Hampton and Shelter Island for first time home buyers who fall within an income limit as established by the State of New York Mortgage Agency low interest rate mortgage in non-target one family categories for Suffolk County. The towns of Southold and Riverhead will not be granting exemptions.

To obtain the exemption, the homebuyer must submit an application to the Town for approval, along with a copy of the contract and their latest tax returns. When approved, the town official will sign Part II of the new tax form. There will also be an approval form from the town. BOTH APPROVAL FORMS MUST BE SUBMITTED WITH THE DEED FOR RECORDING.

The exemption is also applicable to Not-for-Profits corporations or corporations formed under the Private Housing Finance Law, which have the purpose of providing housing opportunities within the towns in the Peconic Bay district. The law goes on to define affordable as housing for town residents whose income is at or below the median income for the town.

Attached is the new form for the Peconic Bay Region Community Preservation Fund. THIS IS THE ONLY FORM TO BE USED WHEN RECORDING DEEDS. The form MUST be on 8 ½ x 14 paper only.

Peconic Bay Region Community Preservation Fund Form (Click to View)

Agency Legal Services is available to answer questions at 212-922-0050

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None