It’s no surprise that the real estate market in New York gives us each the opportunity to earn a great deal of money, but with great wealth comes even greater responsibility. The increased equity in property is more than just the sum of improvements made by the owners, but includes the added value the public has contributed as well, including tax incentives, new subway lines, community improvement projects and other neighborhood changes that take place over the course of an owner’s tenure. There is a “social appreciation” on property that the community is entitled to share in after a sale is made.
To this end, I am currently in the process of developing the New York Real Estate Fund (NYREF) – a vehicle for socially and environmentally conscious real estate professionals to give back to the communities they live and work in.
Here’s how it works –
• Real estate brokers pledge a percentage of their commissions on transactions (or sellers pledge a percentage of the equity earned on the sale of their property) to the fund.
• This tax-deductible contribution will then be used to support innovative community development and conservation projects in New York City and beyond.
• Participants will have the option to steer their donations to favorite causes, like education, community gardens, or homeless shelters, among others.
• Nonprofit organizations will submit proposals detailing how they will use the money they are requesting.
• A committee will then review the proposals and determine who the best candidates are to receive a NYREF grant.
Members of NYREF will become the preferred brokers for socially and environmentally conscious buyers and sellers in the New York market. Once the idea catches on it will be common for real estate transactions all over the city to include a component of giving back. The concept seems a logical extension of the “eco-friendly” lifestyle that many New Yorkers are now seeking. Common sense tells us that consumers are looking for new options in the marketplace to mirror their values.
To learn more about NYREF, please contact Chris Drury.