Preconsidered Res. No. 520
Resolution amending the prior resolution approving an exemption from real property taxes for property located at Block 639, Lots 1001 and 1002 (f/k/a Lot 1), Manhattan pursuant to Section 577 of the Private Housing Finance Law (Preconsidered L.U. No. 87)
By Council Member Lee
WHEREAS, The New York City Department of Housing Preservation and Development (“HPD”) submitted to the Council its request dated May 27, 2026, that the Council take the following action regarding a housing project located at Block 639, Lots 1001 and 1002 (f/k/a Lot 1), Manhattan (“Exemption Area”):
Amend Resolution No. 2062 (“Prior Resolution”), which authorized a partial tax exemption pursuant to Section 577 of the Private Housing Finance Law for the Exemption Area, by replacing paragraphs 1, 3, 4, 5, 6, and 8 thereof;
WHEREAS, The project description that HPD provided to the Council states that the purchaser of the Project is a duly organized housing development fund company under Article XI of the Private Housing Finance Law;
WHEREAS, On June 30, 2009, the Council approved the Prior Resolution;
WHEREAS, Since the approval of the Prior Resolution, Lot 1 formed condominium Lots 1001 and 1002 and the ownership structure of the Exemption Area has changed;
WHEREAS, The Exemption Area now seeks to apply for a J-51 tax benefit to reduce the partial tax payment it must pay under the Prior Resolution;
WHEREAS, The Prior Resolution must be amended to include J-51 provisions and to update the project information and ownership structure;
WHEREAS, The Council has considered the financial implications relating to the requested tax exemption; now, therefore, be it
RESOLVED:
That the Prior Resolution is amended by replacing paragraphs 1, 3, 4, 5, 6, and 8 thereof in their entirety with the following:
1. For the purposes hereof, the following terms shall have the following meanings:
a. “Company” shall mean Westbeth Artists Landlord LLC or any other entity that acquires all or a portion of the beneficial interest and/or the beneficial leasehold interest in the Exemption Area with the prior written consent of HPD.
b. “Effective Date” shall mean June 30, 2009.
c. “Exemption Area” shall mean the real property located in the Borough of Manhattan, City and State of New York, identified as Block 639, Lots 1001 and 1002 (f/k/a Lot 1) on the Tax Map of the City of New York.
d. “Expiration Date” shall mean the earlier to occur of (i) the date which is forty (40) years from the Effective Date, (ii) the date of the expiration or termination of the Regulatory Agreement, or (iii) the date upon which the Exemption Area ceases to be owned, leased or controlled by either a housing development fund company or an entity wholly controlled by a housing development fund company.
e. “HDFC-Fee Owner” shall mean Westbeth Corp. Housing Development Fund Company, Inc. or a housing development fund company that acquires the Exemption Area with the prior written consent of HPD.
f. “HDFC-Interest Owner” shall mean Westbeth Tenant Housing Development Fund Company, Inc. or a housing development fund company that acquires all or a portion of the leasehold interest in the Exemption Area with the prior written consent of HPD.
g. “HPD” shall mean the Department of Housing Preservation and Development of the City of New York.
h. “J-51 Benefits” shall mean any tax benefits pursuant to Section 489 of the Real Property Tax Law which are in effect on or after the Effective Date; provided, however, that such J-51 Benefits shall not exceed fifty percent (50%) of the Shelter Rent Tax payable in any tax year.
i. “New Exemption” shall mean the exemption from real property taxation provided hereunder with respect to the Exemption Area.
j. “Owner” shall mean (i) the HDFC-Fee Owner and/or (ii) collectively, the HDFC-Interest Owner and the Company.
k. “Prior Exemption” shall mean the partial exemption from real property taxation for the Exemption Area approved by the City Council on December 7, 1999 (Cal. No. 1097).
l. “Regulatory Agreement” shall mean the regulatory agreement between HPD and the HDFC-Fee Owner dated June 30, 2009 and recorded on October 7, 2009 (CFRN 2009000326295), establishing certain controls upon the operation of the Exemption Area during the term of the New Exemption.
m. “Rent Registration Date” shall mean April 1, 2012.
n. “Shelter Rent” shall mean the total rents received from the commercial, community facility and residential occupants of the Exemption Area, including, but not limited to, Section 8, rent supplements, rental assistance, and any other subsidy, less the cost of providing to such occupants electricity, gas, heat and other utilities.
o. “Shelter Rent Deadline” shall mean three hundred and sixty-five (365) days from the date of the HPD letter requesting the information that HPD needs to calculate the Shelter Rent Tax for the applicable tax year.
p. “Shelter Rent Tax” shall mean (i) for the period commencing on the Effective Date and ending on the Rent Registration Date, ten percent (10%) of Shelter Rent, and (ii) for the period commencing on the Rent Registration Date and ending on the Expiration Date, $200,000, plus ten percent (10%) of Shelter Rent, provided, however, that if the Owner fails to provide the Shelter Rent on or before the Shelter Rent Deadline, Shelter Rent Tax shall mean an amount equal to real property taxes that would otherwise be due in such tax year in the absence of any form of exemption from or abatement of real property taxation.
q. “Surcharge” shall mean additional rent to be collected by the Owner on a monthly basis from tenants whose income exceeds the allowable amount under the Regulatory Agreement, to the extent permitted by law and in accordance with a formula approved by HPD.
3. All of the value of the property in the Exemption Area, including both the land and any improvements, shall be exempt from real property taxation, other than assessments for local improvements, for a period commencing upon the Effective Date and terminating upon Expiration Date.
4. Commencing upon the Effective Date, and during each year thereafter until the Expiration Date, the Owner shall make real property tax payments in the sum of the Shelter Rent Tax. Notwithstanding the foregoing, the total annual real property tax payment by the Owner shall not at any time exceed the amount of real property taxes that would otherwise be due in the absence of any form of exemption from or abatement of real property taxation provided by an existing or future local, state, or federal law, rule, or regulation.
5. Notwithstanding any provision hereof to the contrary:
a. The New Exemption shall terminate if HPD determines at any time that (i) the Exemption Area is not being operated in accordance with the requirements of Article XI of the Private Housing Finance Law, (ii) the Exemption Area is not being operated in accordance with the requirements of the Regulatory Agreement, (iii) the Exemption Area is not being operated in accordance with the requirements of any other agreement with, or for the benefit of, the City of New York, (iv) any interest or leasehold interest in the Exemption Area is conveyed or transferred to a new owner without the prior written approval of HPD, or (v) the construction or demolition of any private or multiple dwelling on the Exemption Area has commenced without the prior written consent of HPD. HPD shall deliver written notice of any such determination to Owner and all mortgagees of record, which notice shall provide for an opportunity to cure of not less than sixty (60) days. If the noncompliance specified in such notice is not cured within the time period specified therein, the New Exemption shall prospectively terminate.
b. The New Exemption shall apply to all land in the Exemption Area, but shall only apply to a building on the Exemption Area that exists on the Effective Date.
c. Nothing herein shall entitle the HDFC-Fee Owner, HDFC-Interest Owner, the Owner, or any other person or entity to a refund of any real property taxes which accrued and were paid with respect to the Exemption Area prior to the Effective Date.
d. All previous resolutions, if any, providing an exemption from or abatement of real property taxation with respect to the Exemption Area are hereby revoked as of the Effective Date.
6. In consideration of the New Exemption, the owner of the Exemption Area shall, for so long as the New Exemption shall remain in effect, waive the benefits of any additional or concurrent exemption from or abatement of real property taxation which may be authorized under any existing or future local, state, or federal law, rule, or regulation. Notwithstanding the foregoing, (a) nothing herein shall prohibit the granting of any real property tax abatement pursuant to Sections 467-b or 467-c of the Real Property Tax Law to real property occupied by senior citizens or persons with disabilities, and (b) the J-51 Benefits shall remain in effect, but (i) the New Exemption shall be reduced by the amount of such J-51 Benefits, and (ii) the Shelter Rent Tax shall be reduced by such J-51 Benefits.
8. [Intentionally deleted.]
Office of the City Clerk, }
The City of New York } ss.:
I hereby certify that the foregoing is a true copy of a Resolution passed by The Council of the City of New York on June 11, 2026, on file in this office.
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City Clerk, Clerk of Council