Res 1682-2021

By Council Members Salamanca and Riley WHEREAS, the City Planning Commission filed with the Council on May 14, 2021 its decision dated May 5, 2021 (the "Decision"), on the application submitted by the New York City Department of Housing Preservation and Development ("HPD") regarding city-owned property located at 881 Brook Avenue (Block 2365, Lot 23), 901 Eagle Avenue (Block 2620, Lot 46), 959 Home Street (Block 2979, Lot 1), 1298 Hoe Avenue (Block 2987, Lot 14), and 1013 Home Street (Block 2993, Lot 33), (the "Project Area"), approving: a) pursuant to Article 16 of the General Municipal Law of New York State the designation of Disposition Area as an Urban Development Action Area; b) pursuant to Article 16 of the General Municipal Law of New York State an Urban Development Action Area Project for the Disposition Area (the "Project"); and c) pursuant to Section 197-c of the New York City Charter the disposition of the Disposition Area to a developer to be selected by the New York City Department of Housing Preservation and Development; to facilitate the development of nine residential buildings containing a total of 32 affordable residential units in the Melrose and Morrisania neighborhood of Bronx, Community District 3 (ULURP No. C 210156 HAX) (the "Application"); WHEREAS, the City Planning Commission has certified its unqualified approval of UDAAP pursuant to Article 16 of the General Municipal Law; WHEREAS, the Decision is subject to review and action by the Council pursuant to Section 197-d of the City Charter; WHEREAS, by letter dated May 6, 2021 and submitted to the Council on May 6, 2021, HPD submitted its requests (the "HPD Requests") respecting the Application including the submission of the project summary for the Project (the "Project Summary"); WHEREAS, upon due notice, the Council held a public hearing on the Application and Decision and the HPD Requests on June 2, 2021; WHEREAS, the Council has considered the land use and financial implications and other policy issues relating to the Application; and WHEREAS, the Council has considered the relevant environmental issues, including the negative declaration issued December 10th, 2020, (CEQR No. 19HPD084X) (the "Negative Declaration"). RESOLVED: The Council finds that the action described herein will have no significant impact on the environment as set forth in the Negative Declaration. Pursuant to Section 197-d of the New York City Charter, based on the environmental determination and the consideration described in the report C 210156 HAX and incorporated by reference herein, and the record before the Council, the Council approves the Decision of the City Planning Commission and the HPD Requests. Pursuant to Article 16 of the General Municipal Law of the New York State, based on the environmental determination and the consideration described in the report C 210156 HAX and incorporated by reference herein, the Council approves the Decision of the City Planning Commission and the HPD Requests. The Council finds that the present status of the 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 approves the designation of the Area as an urban development action area pursuant to Section 693 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 and subject to the terms and conditions of the Project Summary. The Council approves the disposition of the Disposition Area under Section 197-d of the New York City Charter, to a developer to be selected by the New York City Department of Housing Preservation and Development for the development of the Project consistent with the Project Summary. PROJECT SUMMARY 1. PROGRAM: OPEN DOOR PROGRAM 2. PROJECT: Melrose Open Door CB3 3. LOCATION: a. BOROUGH: Bronx b. COMMUNITY DISTRICT: 3 c. COUNCIL DISTRICT: 17 d. DISPOSITION AREA: BLOCKS LOTS 2365 23 2620 46 2979 1 2987 14 2993 33 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"). 5. TYPE OF PROJECT: New Construction 6. APPROXIMATE NUMBER OF BUILDINGS: 5 7. APPROXIMATE NUMBER OF UNITS: 32 8. HOUSING TYPE: Cooperative Units. 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 at or below 110% of the area median income (AMI). 10. LIENS FOR LAND DEBT/CITY SUBSIDY: Each of the Land Debt and the amount of any construction financing provided through loans from the City ("City Subsidy") will be secured by a mortgage on the Disposition Area. Upon conversion to a cooperative, the HDFC cooperative and/or CLT will repay the Land Debt and City Subsidy, if any, attributable to the property by delivering one or more notes and mortgages and/or a conditional grant agreement to the City. At such time, HPD may unsecure or forgive all or a portion of the Land Debt, and unsecure, but not forgive, all or a portion of the City Subsidy, based on the appraised value of a homeownership unit and/or, in the case of forgiveness of Land Debt, if HPD determines that the forgiveness is necessary to reduce the taxable consideration for a unit. The sum evidenced by the note and secured by the mortgage will be reduced to zero upon maturity of the Land Debt and City Subsidy, respectively, if the owner has complied with the program's restrictions. 11. INCOME TARGETS: Families with annual household incomes at or below 110% of AMI. 12. PROPOSED FACILITIES: None 13. PROPOSED CODES/ORDINANCES: None 14. ENVIRONMENTAL STATUS: Negative Declaration 15. PROPOSED TIME SCHEDULE: Approximately 24 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 17, 2021, on file in this office. ..................................................... City Clerk, Clerk of The Council Page 5 of 5 C 210156 HAX Res. No. 1682 (L.U. No. 802)