LOCAL PROPERTY TAXATION – REAL PROPERTY – EXPANDABLE CONDOMINIUM – PHASING – FANNIE MAE - FHA
Tax Court: G.S. Realty Corp. v. Township of Brick; Docket Nos. 009174-2020, 5103-2021, opinion by Cimino, J.T.C., decided February 26, 2026. For plaintiff – C. Justin McCarthy and Steven W. Ward (Giordano, Halleran & Ciesla, PC); for defendant – Scott W. Kenneally (Starkey, Kelly, Kenneally, Cunningham, Turnbach & Yannone).
Held: A phased expandable condominium development precludes a developer from shifting the expenses of unannexed phases to condominium unit owners. The Federal National Mortgage Association (Fannie Mae) endorses phasing to reduce mortgage loan defaults by unit owners. Despite phasing, the developer wants to shift the taxes for unannexed phases to the unit owners. The court determines that Fannie Mae phasing along with the Federal Housing Authority (FHA) - inspired condominium taxing statute precludes shifting the tax burden to unit owners.