THE COUNCIL OF THE CITY OF NEW YORK

RESOLUTION NO. 440

Resolution approving an Urban Development Action Area Project located at Block 389/Lot  57, Borough of Brooklyn, and waiving the urban development action area designation requirement and the Uniform Land Use Review Procedure, pursuant to Sections 693 and 694 of the General Municipal Law (Preconsidered L.U. No. 171; 20115133 HAK).

By Council Members Comrie and Levin

                        WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council on July 29, 2010 its request dated June 28, 2010 that the Council take the following actions regarding the following Urban Development Action Area Project (the "Project") located at Block 389/Lot 57, Community District 2, Borough of Brooklyn (the "Disposition 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 stated in Section 691 of the General Municipal Law;

                        2.                     Waive the area designation requirement of Section 693 of the General Municipal Law pursuant to said Section;

                       3.                     Waive the requirements of Sections 197-c and 197-d of the New York City 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 Project from real property taxes pursuant to Section 577 of Article XI of the Private Housing Finance Law (the "Tax Exemption");

                        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, the project description that HPD provided to the Council states that the purchaser in connection with the Sale (the "Sponsor") is a duly organized housing development fund corporation under Article XI of the Private Housing Finance Law;

                        WHEREAS, upon due notice, the Council held a public hearing on the Project on August 23, 2010;

                        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 of the Disposition Area as an urban development action area under Section 693 of the General Municipal Law pursuant to said Section.

                        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 disposed of and developed upon the terms and conditions set forth in the Project Summary that HPD has submitted to the Council, a copy of which is attached hereto.

The Council approves the Tax Exemption as follows:

a.                     All of the value of the property in the Disposition Area, including both the land and any improvements, shall be exempt from real property taxes, other than assessments for local improvements, for a period commencing upon the date of conveyance of the Disposition Area to the Sponsor ("Article XI Commencement Date") and terminating upon the earlier to occur of (i) the fortieth anniversary of the Article XI Commencement Date, (ii) the date of reconveyance of the Disposition Area to an owner that is not a housing development fund company, or (iii) the date upon which the Sponsor voluntarily surrenders and revokes such exemption by written notice to the Department of Finance ("Article XI Expiration Date").

b.                     In consideration of the tax exemption pursuant to Section 577 of the Private Housing Finance Law provided hereunder ("Article XI Exemption"), the Sponsor shall waive the benefits, if any, of additional or concurrent real property tax abatement and/or tax exemption which may be authorized under any existing or future local, state, or federal law, rule, or regulation (“Alternative Tax Benefit”), for so long as the Article XI Exemption shall remain in effect; provided, however, that the Sponsor may (i) voluntarily surrender and revoke the Article XI Exemption at any time by written notice to the Department of Finance, and (ii) following the effective date of the surrender and revocation stated in such written notice, utilize any Alternative Tax Benefit for the Disposition Area.

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 August 25, 2010, on file in this office.

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City Clerk, Clerk of The Council