New York Court Finds Lender Has No Security Interest in FAR Bonus

New York Court Finds Lender Has No Security Interest in FAR Bonus


New York Law Journal
By: Janice Mac Avoy, Justin J. Santolli

New York Law Journal published an article by real estate and litigation partner Janice Mac Avoy and litigation special counsel Justin J. Santolli discussing an unexpected New York County Supreme Court decision in CB Frontier v. Wilmington Trust, N.A., which recently held that an inclusionary housing floor area ratio (FAR) bonus, which enables developers to build more square footage than zoning regulations would ordinarily allow, “exists only for [the developer's] benefit, independent of the Property,” was not related to the mortgaged property, and therefore was not the lender's collateral for the mortgage on the Property. 
 

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