Legislation Details

 Preconsidered Res. No. 519

Resolution approving an exemption from real property taxes for property located at Block 2054, Lot 35, Block 2164, Lot 38, Block 2177, Lots 8 and 39, Manhattan; Block 1241, Lot 1, Block 1243, Lot 21, Block 1361, Lot 1, Block 5062, Lot 43, Block 5063, Lot 1, Block 5086, Lot 22, Block 5122, Lots 10 and 35, Block 5124, Lots 12, 18, and 45, Block 5136, Lot 39, Block 5160, Lot 21, Block 5162, Lots 22 and 62, Block 5184, Lot 31, Block 5211, Lot 39, Block 6694, Lot 1, Block 6700, Lot 12, Block 6703, Lot 35, Block 6712, Lot 86, Block 7112, Lot 1, Block 7577, Lot 25, Brooklyn, pursuant to Section 577 of the Private Housing Finance Law (Preconsidered L.U. No. 86)

By Council Member Lee

WHEREAS, The New York City Department of Housing Preservation and Development (“HPD”) submitted to the Council its request dated May 26, 2026, that the Council take the following action regarding a housing project located at Block 2054, Lot 35, Block 2164, Lot 38, Block 2177, Lots 8 and 39, Manhattan; Block 1241, Lot 1, Block 1243, Lot 21, Block 1361, Lot 1, Block 5062, Lot 43, Block 5063, Lot 1, Block 5086, Lot 22, Block 5122, Lots 10 and 35, Block 5124, Lots 12, 18, and 45, Block 5136, Lot 39, Block 5160, Lot 21, Block 5162, Lots 22 and 62, Block 5184, Lot 31, Block 5211, Lot 39, Block 6694, Lot 1, Block 6700, Lot 12, Block 6703, Lot 35, Block 6712, Lot 86, Block 7112, Lot 1, Block 7577, Lot 25, Brooklyn:

Approve an exemption of the Project from real property taxes pursuant to Section 577 of the Private Housing Finance Law;

WHEREAS, The project description that HPD provided to the Council states that the purchaser of the Project is a duly organized housing development fund company under Article XI of the Private Housing Finance Law;

WHEREAS, The Council has considered the financial implications relating to the requested tax exemption; now, therefore, be it

RESOLVED:

1. For the purposes hereof, the following terms shall have the following meanings:

a.                     “Beneficial Owners” shall mean (i) (A)1040 Park LLC, 1033 Ocean LLC, 116 East 19 LLC, 1819 Beverly LLC, 22 St Nicholas LLC, 822 Ocean Ave LLC, 30 Linden Blvd LLC, 327 East 19 LLC, 75 East 21 LLC, Chaya Holdings, LLC, CT 2525 Beverly LLC, Blackberry Realty LLC, TYH Broadway LLC, 1464 Ocean Avenue LLC, 1290 Ocean Realty LLC, 2016 Regent Place LLC, 2025 Regent Place LLC, 2-12 Pinehurst LLC, Ditmas Holdings, LLC, Jerweb Realty CO., LLC, and 312 East 21 Holding LLC, and (B) 3111 Court LLC, 550 East 21 LLC, 850 East 17 LLC, 855 East 19 LLC, CH 161 LLC, MK2021 LLC, MAK 2021 LLC, and RAYYAZ LLC as tenants in common, or (ii) any other entities that acquire all or a portion of the beneficial interests in the Exemption Area with the prior written consent of HPD.

b.                     “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 the Owner enter into the Regulatory Agreement.

c.                     “Exemption” shall mean the exemption from real property taxation provided hereunder.

d.                     “Exemption Area” shall mean the real property located in the Boroughs of Manhattan and Brooklyn, City and State of New York, on the Blocks and Lots on the Tax Map of the City of New York that are identified in Schedule A attached hereto.

e.                     “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.

f.                     “Gross Rent” shall mean the gross potential rents from all residential, commercial, and community facility units on the Exemption Area without regard to whether such units are occupied or vacant, including, but not limited to, Section 8, rent supplements, rental assistance, or any other subsidy.

g.                     “Gross Rent Deadline” shall mean three hundred and sixty-five (365) days from the date of the HPD letter requesting the information that HPD needs to calculate the Gross Rent Tax for the applicable tax year.

h.                     “Gross Rent Tax” shall mean, with respect to any tax year, an amount equal to one half of one percent (0.50%) of the Gross Rent in such tax year; provided, however, that if the Owner fails to provide the Gross Rent on or before the Gross Rent Deadline, Gross Rent Tax shall mean an amount equal to real property taxes that would otherwise be due in such tax year in the absence of any form of exemption from or abatement of real property taxation.

i.                     “HDFC” shall mean HP Cedarbridge Portfolio Housing Development Fund Company, Inc. or a housing development fund company that acquires the Exemption Area with the prior written consent of HPD.

j.                     “HPD” shall mean the Department of Housing Preservation and Development of the City of New York.

k.                     J-51 Benefits” shall mean any tax benefits pursuant to Section 489 of the Real Property Tax Law which are in effect on the Effective Date.

l.                     “Owner” shall mean, collectively, the HDFC and the Beneficial Owners.

m.                     “Regulatory Agreement” shall mean the regulatory agreement between HPD and the Owner establishing certain controls upon the operation of the Exemption Area during the term of the Exemption.

2. 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.

3. Commencing upon the Effective Date, and during each year thereafter until the Expiration Date, the Owner shall make real property tax payments in the sum of the Gross Rent Tax. Notwithstanding the foregoing, the total annual real property tax payment by the Owner shall not at any time exceed the amount of real property taxes that would otherwise be due in the absence of any form of exemption from or abatement of real property taxation provided by an existing or future local, state, or federal law, rule, or regulation.

4. Notwithstanding any provision hereof to the contrary:

a.                     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 to a new owner 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 Owner 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 therein, the Exemption shall prospectively terminate.

b.                     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.

c.                     Nothing herein shall entitle the HDFC, the Owner, or any other person or entity to a refund of any real property taxes which accrued and were paid with respect to the Exemption Area prior to the Effective Date.

5. In consideration of the Exemption, the owner of the Exemption Area shall, for so long as the Exemption shall remain in effect, waive the benefits 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. Notwithstanding the foregoing, (a) nothing herein shall prohibit the granting of any real property tax abatement pursuant to Sections 467-b or 467-c of the Real Property Tax Law to real property occupied by senior citizens or persons with disabilities, and (b) the J-51 Benefits shall remain in effect, but the Exemption shall be reduced by the amount of such J-51 Benefits. 

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 11, 2026, on file in this office.

_______________________
City Clerk, Clerk of Council

CB Manager.HPO.FY26

Schedule A

Boroughs of Manhattan and Brooklyn