File #: Res 1515-2020    Version: * Name: LU 709 - Ridgewood Bushwick 203K, Brooklyn, Community District No. 4, Council Districts 34 and 37.
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 12/17/2020
Enactment date: Law number:
Title: Resolution approving an exemption from real property taxes for property located at (Block 3173, Lots 1 and 22; Block 3177, Lots 12 and 13; Block 3186, Lot 47; Block 3197, Lot 11; Block 3217, Lot 18; Block 3219, Lots 21 and 47; Block 3246, Lot 16; Block 3257, Lot 43; Block 3289, Lot 19; Block 3297, Lot 51; Block 3301, Lot 5; Block 3326, Lot 34; Block 3393, Lot 43; Block 3441, Lot 5) Brooklyn, pursuant to Section 577 of the Private Housing Finance Law (Preconsidered L.U. No. 709).
Sponsors: Daniel Dromm
Council Member Sponsors: 1
Attachments: 1. Res. No. 1515, 2. Housing Preservation and Development Letter, 3. Memorandum, 4. December 17, 2020 - Stated Meeting Agenda with Links to Files, 5. Hearing Transcript - Stated Meeting 12-17-20, 6. Minutes of the Stated Meeting - December 17, 2020

THE COUNCIL OF THE CITY OF NEW YORK
RES. NO. 1515

Resolution approving an exemption from real property taxes for property located at (Block 3173, Lots 1 and 22; Block 3177, Lots 12 and 13; Block 3186, Lot 47; Block 3197, Lot 11; Block 3217, Lot 18; Block 3219, Lots 21 and 47; Block 3246, Lot 16; Block 3257, Lot 43; Block 3289, Lot 19; Block 3297, Lot 51; Block 3301, Lot 5; Block 3326, Lot 34; Block 3393, Lot 43; Block 3441, Lot 5) Brooklyn, pursuant to Section 577 of the Private Housing Finance Law (Preconsidered L.U. No. 709).

 

By Council Member Dromm

WHEREAS, The New York City Department of Housing Preservation and Development (“HPD”) submitted to the Council its request dated December 4, 2020 that the Council take the following action regarding a housing project located at (Block 3173, Lots 1 and 22; Block 3177, Lots 12 and 13; Block 3186, Lot 47; Block 3197, Lot 11; Block 3217, Lot 18; Block 3219, Lots 21 and 47; Block 3246, Lot 16; Block 3257, Lot 43; Block 3289, Lot 19; Block 3297, Lot 51; Block 3301, Lot 5; Block 3326, Lot 34; Block 3393, Lot 43; Block 3441, Lot 5) Brooklyn (“Exemption Area”):

Approve an exemption of the Project from real property taxes pursuant to Section 577 of the Private Housing Finance Law (the “Tax Exemption”);

WHEREAS, The project description that HPD provided to the Council states that the purchaser of the Project (the “Owner”) is a duly organized housing development fund company under Article XI of the Private Housing Finance Law;

WHEREAS, the Council has considered the financial implications relating to the Tax Exemption;

RESOLVED:

The Council hereby grants an exemption from real property taxes as follows:

1.                     For the purposes hereof, the following terms shall have the following meanings:

 

a.                     “CLT” shall mean CLT Interboro CLT Housing Development Fund Corporation or a community land trust that acquires the land portion of the Exemption Area with the prior written consent of HPD.

 

b.                     “Effective Date” shall mean the date that HPD and the Owner enter into the Regulatory Agreement.

 

c.                     “Exemption” shall mean the exemption from real property taxation provided hereunder.

 

d.                     “Exemption Area” shall mean the real property located in the Borough of Brooklyn, City and State of New York, identified as Block 3173, Lots 1 and 22; Block 3177, Lots 12 and 13; Block 3186, Lot 47; Block 3197, Lot 11; Block 3217, Lot 18; Block 3219, Lots 21 and 47; Block 3246, Lot 16; Block 3257, Lot 43; Block 3289, Lot 19; Block 3297, Lot 51; Block 3301, Lot 5; Block 3326, Lot 34; Block 3393, Lot 43; and Block 3441, Lot 5 on the Tax Map of the City of New York.

 

e.                     “Expiration Date” shall mean the earlier to occur of (i) a 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.

 

f.                     “HDFC” shall mean Ridgewood Bushwick Homesteading Assistance Housing Development Fund Corporation or a housing development fund company that acquires the Exemption Area and/or a 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 the Effective Date.

 

i.                     “Owner” shall mean either (i) the HDFC, or (ii) the HDFC and the CLT.

 

j.                     “Regulatory Agreement” shall mean the regulatory agreement between HPD and the Owner establishing certain controls upon the operation of the Exemption Area during the term of the Exemption.

 

2.                     All of the value of the property in the Exemption Area, including both the land and any improvements (excluding those portions, if any, devoted to business, commercial, or community facility use), shall be exempt from real property taxation, other than assessments for local improvements, for a period commencing upon the Effective Date and terminating upon the Expiration Date.

 

3.                     Notwithstanding any provision hereof to the contrary:

 

a.                     The 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 in the Exemption Area or in the leasehold interest of the HDFC 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 Exemption shall prospectively terminate.

 

b.                     The Exemption shall apply to all land in the Exemption Area, but shall only apply to buildings on the Exemption Area that exist on the Effective Date.

 

c.                     Nothing herein shall entitle the HDFC, 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.

 

4.                     In consideration of the Exemption, the owner of the Exemption Area shall, for so long as the 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 the Exemption shall be reduced by the amount of such J-51 Benefits.

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 December 17, 2020, on file in this office.

 

_______________________
City Clerk, Clerk of Council