New York City Council Header
File #: Res 2016-2009    Version: * Name: Establish that the interest rate to be charged for Fiscal Year 2010 for non-payment of water rents and sewer rents be 18% per annum for real property where the assessed value is over $250,000, or over $250,000 per residential unit for co-op apartments.
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 6/10/2009
Enactment date: Law number:
Title: Resolution to establish that the interest rate to be charged for Fiscal Year 2010 for non-payment of water rents and sewer rents be 18% per annum for real property where the assessed value is over $250,000, or over $250,000 per residential unit for cooperative apartments; and 9% per annum for real property where the assessed value is not more than $250,000, or not more $250,000 per residential unit for cooperative apartments.
Sponsors: David I. Weprin, Alan J. Gerson
Council Member Sponsors: 2
Attachments: 1. Committee Report, 2. Press Release, 3. Hearing Testimony, 4. Hearing Transcript - Stated Meeting 6/19/09, 5. Heairng Transcript
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/19/2009*David I. Weprin City Council Approved, by CouncilPass Action details Meeting details Not available
6/19/2009*David I. Weprin Committee on Finance Hearing Held by Committee  Action details Meeting details Not available
6/19/2009*David I. Weprin Committee on Finance Approved by CommitteePass Action details Meeting details Not available
6/10/2009*David I. Weprin City Council Referred to Comm by Council  Action details Meeting details Not available
6/10/2009*David I. Weprin City Council Introduced by Council  Action details Meeting details Not available

Res. No. 2016

 

Resolution to establish that the interest rate to be charged for Fiscal Year 2010 for non-payment of water rents and sewer rents be 18% per annum for real property where the assessed value is over $250,000, or over $250,000 per residential unit for cooperative apartments; and 9% per annum for real property where the assessed value is not more than $250,000, or not more $250,000 per residential unit for cooperative apartments.

 

By Council Members Weprin and Gerson

 

                     Whereas, Pursuant to sections 11-312(c) and 11-313(e) of the Administrative Code of the City of New York, the Banking Commission is required to recommend to the City Council, not later than the 25th of May of each year, the proposed interest rate to be charged for non-payment of water rents and sewer rents; and

                     Whereas, Sections 11-312 and 11-313 of the Administrative Code of the City of New York, as amended by Local Law No. 62 of 2005, allow the Council to adopt interest rates to be charged for non-payment of water rents and sewer rents that become due and payable on or after July 1, 2005 pursuant to section 11-224.1 of the Administrative Code of the City of New York; and

                     Whereas, Section 11-224.1 of the Administrative Code of the City of New York, as amended by Local Law No. 66 of 2008, requires the Banking Commission to propose a rate at least equal to the prevailing interest rate charged for commercial loans extended to prime borrowers by commercial banks operating in the City (the “Prime Rate”), to be charged for non-payment of taxes on properties with an assessed value of not more than two hundred fifty thousand dollars ($250,000), or not more than two hundred fifty thousand dollars ($250,000) per residential unit for cooperative apartments; and 

Whereas, Section 11-224.1 of the Administrative Code of the City of New York requires the Banking Commission to propose a rate at least six percent (6%) per annum greater than the Prime Rate, to be charged for non-payment of taxes on properties with an assessed value of more than two hundred fifty thousand dollars ($250,000), or more than two hundred fifty thousand dollars ($250,000) per residential unit for cooperative apartments; and

                     Whereas, The Banking Commission notes that as of May 20, 2009, the Prime Rate stands at three and one-quarter percent (3.25%) as published by the Federal Reserve Board of Governors; and

                     Whereas, The Banking Commission recommends to the City Council that the interest rate to be charged for non-payment of water rents and sewer rents be eighteen percent (18%) per annum for Fiscal Year 2010 where the assessed value of the property is more than two hundred fifty thousand dollars ($250,000), or more than two hundred fifty thousand dollars ($250,000) per residential unit for cooperative apartments; and

                     Whereas, The Banking Commission further recommends to the City Council, that the interest rate to be charged for non-payment of water rents and sewer rents be nine percent (9%) per annum for Fiscal Year 2010 where the assessed value of the property is not more than two hundred fifty thousand dollars ($250,000), or not more than two hundred fifty thousand dollars ($250,000) per residential unit for cooperative apartments; now, therefore, be it

                     Resolved, That the Council determines that the interest rate to be charged be eighteen percent (18%) per annum for Fiscal Year 2010 for non-payment of water rents and sewer rents on properties where the assessed value of the property is over $250,000, or over $250,000    per residential unit for cooperative apartments; and, be it further

Resolved, That the Council establishes that the interest rate to be charged for Fiscal Year 2010 for non-payment of water rents and sewer rents be nine percent (9%) per annum for real property where the assessed value is not more than $250,000, or not more than $250,000 per residential unit for cooperative apartments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TE 5-27-09

LS#7538