Res 0394-2018

By Council Members Salamanca and Kallos WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council on May 15, 2018 its request dated May 14, 2018 that the Council approve a second amended Urban Development Action Area Project (the "Amended Project") for property located at Block 1791, Lots 17, 18, and19; Block 1814, Lot 15; Block 1852, Lots 9 and 8; and Block 1641, Lot 68 (the "Disposition Area"), and Block 1791, Lots 17, 18, and 19; Block 1789, Lot 80; Block 1814, Lot 15; Block 1795, Lot 15; Block 1852, Lots 9 and 8; Block 1641, Lot 68; and Block 1801, Lot 8 (the "Exemption Area"), Community District 3, Borough of Brooklyn; WHEREAS, the request made by the New York City Department of Housing Preservation and Development is related to a previously amended approved City Council Resolution on June 8, 2016 (Resolution No. 1109 of 2016, L.U. No. 384); WHEREAS, upon due notice, the Council held a public hearing on the Second Amended Project on May 30, 2018; WHEREAS, the Council has considered the land use implications and other policy issues relating to the Amended Project; RESOLVED: The Council approves the Amended Project as an Urban Development Action Area Project pursuant to Section 694 of the General Municipal Law. The Second Amended Project shall be developed upon the terms and conditions in the Amended Project Summary that HPD has submitted to the Council on May 15, 2018, a copy of which is attached hereto. PROJECT SUMMARY 1. PROGRAM: NEW INFILL HOMEOWNERSHIP OPPORTUNITIES PROGRAM 2. PROJECT: Van Buren/Greene 3. LOCATION: a. BOROUGH: Brooklyn b. COMMUNITY DISTRICT: 3 c. COUNCIL DISTRICT: 36 d. DISPOSITION AREA: BLOCKS LOTS 1791 17 1791 18 1791 19 1814 15 1852 9 1852 8 1641 68 e. EXEMPTION AREA: BLOCKS LOTS 1791 17 1791 18 1791 19 1789 80 1814 15 1795 15 1852 9 1852 8 1641 68 1801 8 4. BASIS OF DISPOSITION PRICE: Nominal. Sponsor will pay one dollar per tax lot and deliver a note and mortgage for the remainder of the appraised value ("Land Debt"). For a period of twenty (20) years following completion of construction, the Land Debt will be repayable out of resale or refinancing profits. 5. TYPE OF PROJECT: New Construction 6. APPROXIMATE NUMBER OF BUILDINGS: Up to 10 2-Family Homes 7. APPROXIMATE NUMBER OF UNITS: Up to 20 8. HOUSING TYPE: 2-Family Homes. If homes remain unsold at the end of the Marketing Period and HPD determines in writing that (i) sale is not feasible within a reasonable time, and (ii) a rental fallback is the best available alternative, then the unsold homes may be rented in accordance with the written instructions of HPD. 9. ESTIMATE OF INITIAL PRICE: Sales prices will be affordable to families with annual household incomes between 80% and 130% of the area median income (AMI). 10. LIENS FOR LAND DEBT: The difference between the appraised value of the land and the purchase price ("Land Debt") and the amount of any construction financing provided through loans from the City ("City Subsidy") are apportioned pro rata to each home and may be unsecured at the time of sale based on the home's post-construction appraised value. HPD may forgive the Land Debt (but not the City Subsidy) apportioned to a home upon conveyance of the home to an eligible purchaser, based on the home's appraised value and/or if HPD determines that the forgiveness is necessary to reduce the taxable consideration for the home. Purchasers repay the Land Debt and City Subsidy, if any, attributable to their homes by delivering a note and mortgage and/or conditional grant agreement to the City. The sum evidenced by the note and secured by the security instruments will be reduced to zero after 20 years of owner occupancy. Initial purchasers and subsequent owners are required to make payments to the City out of resale or refinancing profits. 11. INCOME TARGETS: Families with annual household incomes between 80% and 130% of AMI. 12. PROPOSED FACILITIES: None 13. PROPOSED CODES/ORDINANCES: None 14. ENVIRONMENTAL STATUS: Type II 15. PROPOSED TIME SCHEDULE: Approximately 18 months from closing to completion of construction. Adopted. 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 7, 2018, on file in this office. ........................................ City Clerk, Clerk of The Council Page 4 of 4 20185360 HAK Res. No. 394 (L.U. No. 105)