Res 1211-2019

By Council Members Salamanca and Adams WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council on November 13, 2019 its request dated October 22, 2019 that the Council take the following actions regarding the proposed Urban Development Action Area Project (the "Project") located at 138 West 117 Street (Block 1901, Lot 51), 140 West 117 Street (Block 1901, Lot 52), and 264 West 117 Street (Block 1922, Lot 53), Community District 10, Borough of Manhattan (the "Disposition Area or Exemption Area"): 1. Find that the present status of the Disposition Area tends to impair or arrest the sound growth and development of the municipality and that the proposed Urban Development Action Area Project is consistent with the policy and purposes of Section 691 of the General Municipal Law; 2. Waive the area designation requirement of Section 693 of the General Municipal Law pursuant to Section 693 of the General Municipal Law; 3. Waive the requirements of Sections 197-c and 197-d of the Charter pursuant to Section 694 of the General Municipal Law; 4. Approve the project as an Urban Development Action Area Project pursuant to Section 694 of the General Municipal Law; and 5. Approve an exemption of the Exemption Area from real property taxes pursuant to Section 577 of Article XI of the Private Housing Finance Law. WHEREAS, the Project is to be developed on land that is an eligible area as defined in Section 692 of the General Municipal Law, consists solely of the rehabilitation or conservation of existing private or multiple dwellings or the construction of one to four unit dwellings, and does not require any change in land use permitted under the New York City Zoning Resolution; WHEREAS, upon due notice, the Council held a public hearing on the Project on December 2, 2019; and WHEREAS, the Council has considered the land use and financial implications and other policy issues relating to the Project. RESOLVED: The Council finds that the present status of the Disposition Area tends to impair or arrest the sound growth and development of the City of New York and that a designation of the Project as an Urban Development Action Area Project is consistent with the policy and purposes stated in Section 691 of the General Municipal Law. The Council waives the area designation requirement pursuant to Section 693 of the General Municipal Law. The Council waives the requirements of Sections 197-c and 197-d of the New York City Charter pursuant to Section 694 of the General Municipal Law. The Council approves the Project as an Urban Development Action Area Project pursuant to Section 694 of the General Municipal Law. The Project shall be developed in a manner consistent with the Project Summary that HPD has submitted to the Council on November 13, 2019, a copy of which is attached hereto. Pursuant to Section 577 of Article XI of the Private Housing Finance Law, the Council approves an exemption of the Exemption Area from real property taxes as follows: a. For the purposes hereof, the following terms shall have the following meanings: (1) "Company" shall mean 117 Preservation Partners LLC or a limited liability company that acquires the beneficial interest in the Exemption Area with the approval of HPD. (2) "Effective Date" shall mean the later of (i) the date of conveyance of the Exemption Area to the HDFC, or (ii) the date that HPD and Owner enter into the Regulatory Agreement. (3) "Exemption" shall mean the exemption from real property taxation provided hereunder. (4) "Exemption Area" shall mean the real property located in the Borough of Manhattan, City and State of New York, identified as Block 1901/Lot 51, Block 1901/Lot 52 and Block 1922/Lot 53 on the Tax Map of the City of New York. (5) "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 by either a housing development fund company or an entity wholly controlled by a housing development fund company. (6) "HDFC" shall mean 117 Preservation Housing Development Fund Company, Inc. or a housing development fund company that acquires the Exemption Area with the prior written consent of HPD. (7) "HPD" shall mean the Department of Housing Preservation and Development of the City of New York. (8) "Owner" shall mean, collectively, the HDFC and the Company. (9) "Regulatory Agreement" shall mean the regulatory agreement between HPD and Owner establishing certain controls upon the operation of the Exemption Area during the term of the Exemption. b. 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. c. Notwithstanding any provision hereof to the contrary: (1) 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 is conveyed or transferred 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 the Owner of the Exemption Area 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 herein, the Exemption shall prospectively terminate. (2) 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. (3) Nothing herein shall entitle the HDFC, Owner, or any past owner 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. In consideration of the Exemption, the owner of the Exemption Area, for so long as the Exemption shall remain in effect, shall waive the benefits, if any, 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. 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 December 19, 2019, on file in this office. ................................................... City Clerk, Clerk of The Council PROJECT SUMMARY 1. PROGRAM: MULTIFAMILY PRESERVATION LOAN PROGRAM 2. PROJECT: MMN1902 - LEMLE West 117 Street 3. LOCATION: a. BOROUGH: Manhattan b. COMMUNITY DISTRICTS: 10 c. COUNCIL DISTRICTS: 9 d. DISPOSITION AREA: Block Lot Address 1901 51 138 West 117 Street 1901 52 140 West 117 Street 1922 53 264 West 117 Street 4. BASIS OF DISPOSITION PRICE: Nominal (One dollar ($1.00) per lot) 5. TYPE OF PROJECT: Rehabilitation 6. APPROXIMATE NUMBER OF BUILDINGS: Three (3) Multiple Dwellings 7. APPROXIMATE NUMBER OF UNITS: Forty-one (41) dwelling units (including one (1) superintendent unit) 8. HOUSING TYPE: Rental 9. ESTIMATE OF INITIAL RENTS: Initial rents will be established in compliance with federal regulations, where applicable, and will be affordable to the targeted income groups. All units will be subject to rent stabilization. Eligible tenants may apply for rent subsidies. 10. INCOME TARGETS: The Disposition Area contains occupied buildings that will be sold subject to existing tenancies. Vacant units, if any, will be rented in compliance with federal regulations, where applicable. Upon vacancy, all units will be rented to families with annual household incomes up to 120% of the area median. 11. PROPOSED FACILITIES: None 12. PROPOSED CODES/ORDINANCES: None 13. ENVIRONMENTAL STATUS: Type II 14. PROPOSED TIME SCHEDULE: Approximately twenty-four (24) months from closing to completion of construction Page 6 of 6 20205152 HAM Res. No. 1211 (L.U. No. 590)