West Babylon, NY - October 11, 2016 - The Long Island Board of REALTORS® (LIBOR), the Long Island Builders Institute (LIBI), the Long Island Association (LIA), the New York State Land Title Association (NYSTLA), the Commercial Industrial Brokers Society of Long Island (CIBS LI), and the Association for a Better Long Island (ABLI) stand united in opposition to the massive hikes to mortgage recording fees proposed this year by the Nassau and Suffolk County Legislatures.
Last year, Nassau County hiked the tax map verification fee by 200% from $75 to $225, and increased the per-block recording fee by 100% from $150 to $300. Suffolk County raised its Tax Map Verification Fee from $60 to $200, an increase of 233%.
This year, both counties propose raising fees again. Nassau County is considering an increase in the mortgage recording fee from $300 to $350. Suffolk County is debating a new $300 per lot fee to record a new mortgage or refinance an existing mortgage, and an increase in the tax map verification fee from $200 per lot to $225.
We fear that another fee increase, one year after the largest fee increase in the history of each county, sets a dangerous precedent that could evolve into annual increases of fees levied on the real estate industry. Furthermore, we do not believe that either county has taken enough time to observe and analyze the effects of last year’s fee increases in real estate and other sectors of the economy.
According to LIBOR/MLSLI CEO Joseph E. Mottola, “Targeting the real estate transaction is short sighted, because it fails to recognize the positive economic impact that a home sale has on a community. The National Association of REALTORS® estimates that a typical real estate transaction in New York State generates, on average, over $69,000 in economic stimulation, including additional expenditures on moving truck services, consumer items such as appliances and furniture, and dining at restaurants. Of course, the value of that stimulation is even higher on Long Island, where the cost of living is much higher than in other areas of the State.”
Mottola continues, “Proponents of the fee increases fail to recognize that these massive fees negatively affect more than just the real estate market. Increasing home purchasing costs will create a drag on the local economies and will negatively impact sales tax revenue.”
The increased fees negatively affect all facets of the real estate market, but this coalition would like to draw special attention to the affordable housing market. Long Island has a high demand for both available and affordable housing. Young people working on Long Island and in the city, retired citizens looking to downsize to a more manageable living space and low income families all create this demand. Long Island has made great strides in increasing the stock of affordable housing. Unfortunately, regulations that send closing costs soaring creates another financial obstacle for those hoping to access this housing and undermines the progress that has been made.
We urge the County Legislatures to reject any budget that includes increases in real estate related fees.
The Long Island Board of REALTORS®, Inc. (also known as LIBOR) is a 23,500-member,not-for-profit trade association that serves real estate professionals throughout Nassau, Suffolk and Queens counties. Founded over 100 years ago, LIBOR is the third-largest local REALTOR® board in the United States. REALTOR® members subscribe to a strict Code of Ethics and Standards of Practice. Not every real estate licensee can be called a REALTOR®. LIBOR also has a subsidiary corporation, the Multiple Listing Service of Long Island, Inc., a computerized network of over 2,300 real estate offices that enables REALTORS® to better serve the buying and selling public.