Co-Op and Condo Tax Abatement Now Has a String Attached

Drew Donovan, the chief operating officer at Choice New York Property Management, is putting his accounting background to use as he weighs the cost of prevailing wages against the benefit of the tax abatement at the 40 co-ops and condos in the company’s portfolio that are affected by the new law. The math is complicated by such factors as each worker’s position, wages, tenure in the building and benefits. “We advise our clients on both the financial and human factors,” Donovan says. “If the tax benefit far outweighs the increase in payroll, it’s a no-brainer. But some boards want to keep their super and doormen happy, so they’re willing to pay more in wages than they would save in taxes. Or maybe the board wants to keep the union out. There is no one-size-fits all analysis.”