File #: Res 0296-2014    Version: * Name: Establish that the interest rate to be charged for FY'15 for non-payment of water rents and sewer rents be 18% per annum for real property with an assessed value of over $250,000, or over $250,000 per residential unit for cooperative apartments.
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 6/25/2014
Enactment date: Law number:
Title: Resolution to establish that the interest rate to be charged for Fiscal Year 2015 for non-payment of water rents and sewer rents be 18% per annum for real property with an assessed value of over $250,000, or over $250,000 per residential unit for cooperative apartments.
Sponsors: Julissa Ferreras-Copeland
Council Member Sponsors: 1
Attachments: 1. Banking Commission Letter, 2. Committee Report, 3. Hearing Testimony 6-25-14, 4. Hearing Transcript 6-25-14, 5. Hearing Transcript - Stated Meeting 6-25-14, 6. Minutes of the Stated Meeting - June 11, 18 & 25, 2014
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/25/2014*Julissa Ferreras-Copeland City Council Approved, by CouncilPass Action details Meeting details Not available
6/25/2014*Julissa Ferreras-Copeland City Council Referred to Comm by Council  Action details Meeting details Not available
6/25/2014*Julissa Ferreras-Copeland City Council Introduced by Council  Action details Meeting details Not available
6/25/2014*Julissa Ferreras-Copeland Committee on Finance P-C Item Approved by CommPass Action details Meeting details Not available
6/25/2014*Julissa Ferreras-Copeland Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
Preconsidered Res. No. 296
 
 
Resolution to establish that the interest rate to be charged for Fiscal Year 2015 for non-payment of water rents and sewer rents be 18% per annum for real property with an assessed value of over $250,000, or over $250,000 per residential unit for cooperative apartments.
 
 
By Council Member Ferreras
 
      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 six percent (6%) per annum greater than 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 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, 2014, the Prime Rate stands at three and one-quarter percent (3.25%) as published by the Board of Governors of the Federal Reserve System; 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 2015 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; now, therefore, be it
      Resolved, That the Council of the City of New York establishes that the interest rate to be charged for Fiscal Year 2015 for non-payment of water rents and sewer rents be 18% per annum for real property with an assessed value of over $250,000, or over $250,000 per residential unit for cooperative apartments.
 
 
RC LS# 2021
6/18/14