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Counter-argumentsJul 21, 2007


Good questions, V.

"They say: They don't want a flip tax because they want to control where the money is going. I say: You don't control where the money goes now! What will change?"

You're exactly right. That response is not about a flip tax, but about controlling expenditures, which, as you point out, is a non-issue because they don't control expenditures anyway (unless they're board members).

However, the next time someone gives you that reply, ask him/her this: "The proposal you would vote on requires that any flip tax money be spent only on capital improvement," such as a new boiler, elevator, windows, roof, sidewalk and so forth. That way the shareholders actually have MORE control over how the money is spent, as opposed to all the other income. (Of course, you would want to run this by the board first.)

"They say: They need ALL their profit for the next residence."

Then they're cheating their neighbors for their personal benefit. The purpose of co-operative housing (get it? "cooperate"?) is to work together in the long-term interests of the corporation. Not to withhold money so an individual can afford a nicer place when he/she leaves.

You could point out that with flip taxes, the building could be improved (nicer doors/lobby/light fixtures, new paint, new elevator, hire a doorman or another porter to help keep things clean) and that with any of these, the value of a shareholder's apartment will increase.

By the way, why do the shareholders think they will have to pay? Make sure they understand that they should make their buyers pay the flip tax! In our building, whenever there are competing bids, the flip tax is the first thing a bidder offers to pay (if one of them hasn't already).

If, on the other hand, people don't mind their home going to pot because they expect to move out soon, well, there's not much you can do, I'm afraid.

For other arguments, check the Habitat archives.

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