LLCs are a way to combine the benefits of a traditional corporate structure with enhanced anonymity and reduced tax-liability, making them the ideal method for limiting risk while at the same time maximizing profits. This incentivizes land speculation rather than reinvestment in the land in the form of development. At the same time, LLCs provide no incentive to improve the properties they own, leaving many areas of NYC blighted and underutilized. This has obvious negative consequences for the neighborhoods in which they are located. Because LLC owners are anonymous, there is no way to exert pressure on them to either improve or sell their properties. This is why this tool is such an important means to increasing transparency and accountability in LLC ownership.
For there to be transparency and accountability, however, it’s important that the pertinent information is accessible to the public. Again, this is where the CPTR mapping tool comes in. It identifies vacant and underutilized parcels in NYC and illuminates them on an interactive map which allows anyone to see if a parcel is owned by an LLC or privately owned.
Now, what has the tool shown us so far? There currently are 26,576 vacant or underutilized parcels in NYC. Of these 26,576 parcels, 18,201 are vacant (68%) and 8,375 are underutilized (31%). The total assessed value of all vacant and underutilized parcels in NYC is $3,349,346,839. Of this total, LLCs own $1,961,360,890, which is 58.6% of the total assessed value of vacant and underutilized parcels in NYC.
CPTR has only scratched the surface of what can be discovered using its LLC tool. We intend to drill deep and uncover who owns what in NYC. Again, why is this important? Because it goes to the heart of tax equity and fairness. As long as LLC owners are able to hide their assets in land and hold onto that land for speculation purposes, the full potential of the land will never be developed.
Please visit the map here: https://llcs-in-nyc.com/