TIC's: San Francisco's attempt to work around the condo lottery which is designed to keep rental housing on the market and available for renters. The condo lottery limits the amount of conversions allowed in any given year.
The TIC concept provides wanna be owners with another vehicle that is less regulated than condo conversions. Generally, they are cheaper than condo's because the units are separately owned but share a mortgage and each is responsible for the whole payment. Condo owners each have a separate mortgage and if one condo owner defaults the other condo owners are not financially responsible. Hence, TIC's carry more risk and are therefore more affordable.
Along with one mortgage TIC owners receive one property tax bill for the entire building and for the same reason. TIC's are not legally separate units.
Since some units will have improvements that others choose not to have, its reasonable that the value of the improved units is higher and should pay a larger portion of the bill. SF assessor Phil Tang planning to roll out a new approach and provide separate assessment's for separate units allowing owners to more equitably share the tax bill, further blending the difference between a TIC, which is unregulated by the city and a Condo which has conversion restrictions. Add to that the fractional loans now available and the TIC ownership looks a lot better. Get your individual assessment form here
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