Int 0205-2002

Be it enacted by the Council as follows: Section 1. Subchapter 1 of chapter 2 of title 11 of the administrative code of the city of New York is hereby amended by adding a new section 11-238 to read as follows: Section 11-238 Special benefits and exemptions for certain housing corporations. a. The benefits of this section shall apply with respect to any housing development fund company organized under article eleven of the private housing finance law when (1) such housing development fund company owns real property that was under the jurisdiction of the department of housing preservation and development during any portion of the period from January first, nineteen hundred eighty-eight through December thirty-first, nineteen hundred ninety-five prior to the transfer of title by the city; and (2) such housing development fund company owned such real property on the effective date of this section; and (3) such housing development fund company agrees to be subject to the oversight of the department of housing preservation and development, with the terms and the conditions of such obligation to be negotiated and agreed upon in writing in a regulatory agreement as described in this section. b. Any real property owned by a housing development fund company that satisfies the criteria set forth in subdivision a of this section, other than commercial property, (1) shall be exempt from the real property tax allocable to the residential portion of such real property that exceeds an assessed valuation equal to the lesser of (i) an amount equal to the full assessed valuation of the residential property, or (ii) an amount calculated by multiplying two thousand five hundred dollars times the number of dwelling units in such real property and increasing such product by two percent on July first, two thousand three and on July first of each successive year. In no event shall the assessed valuation increase by more than twenty percent in any five-year period but in no event shall real property be exempt from assessments for local improvements. c. Such regulatory agreement shall include, at a minimum, the following provisions and any other matters deemed necessary by the department of housing preservation and development: (1) a term of thirty years; (2) a requirement that where the obligation to pay real property tax arrears, including interest and penalties, has been suspended, that such suspension shall continue provided that the housing development fund company complies with the regulatory agreement for an initial period of ten years in accordance with a schedule established in the regulatory agreement; (3) a requirement that any obligations that may have been suspended and have not been forgiven may be reinstated if the housing development fund company fails to comply with the regulatory agreement; (4) that all new municipal charges, including real property taxes, must be paid in a timely fashion; (5) that the department of housing preservation and development shall be authorized to assume control of such housing development fund company if such housing development fund company fails to comply with the regulatory agreement; (6) that the housing development fund company must comply with financial and other reporting requirements required by any statute, rule or regulation; (7) that the housing development fund company shall be required to increase maintenance charges or impose assessments to insure that the housing development fund company does not fail to comply with its obligations; (8) the establishment of a structured reserve fund; (9) restrictions to insure that sales and rentals of dwelling units are made to only low-income individuals and families; (10) the establishment of a transfer fee for the sale of any dwelling units which shall be paid by the seller to the reserve fund of such housing development fund company; (11) restrictions on subletting; (12) primary residence requirements; and (13) the certification of annual elections for directors. �2. This local shall take effect immediately, provided however, that the benefits of subdivision b of section 11-238 of the administrative code of the city of New York, as added by section one of this local law, shall apply to real estate taxes due for the tax year commencing July first, two thousand two. LS# 265 TNN 05/16/02 3