THE COUNCIL OF THE CITY OF NEW YORK
RESOLUTION NO. 1423
Resolution approving an Urban Development Action Area Project pursuant to Article 16 of the General Municipal Law and a real property tax exemption pursuant to Article XI of the Private Housing Finance Law for property located at 24 West 132nd Street (Block 1729, Lot 45); 37 West 138th Street (Block 1736, Lot 23); 202 West 133rd Street (Block 1938, Lot 38); 2274 Adam Clayton Powell Jr. Boulevard (Block 1939, Lot 34), Borough of Manhattan; and waiving the urban development action area designation requirement and the Uniform Land Use Review Procedure, Community District 10, Borough of Manhattan (Preconsidered L.U. No. 663; 20205414 HAM).
By Council Members Salamanca and Adams
WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council on May 19, 2020 its request dated May 13, 2020 that the Council take the following actions regarding the proposed Urban Development Action Area Project (the "Project") located at 24 West 132nd Street (Block 1729, Lot 45); 37 West 138th Street (Block 1736, Lot 23); 202 West 133rd Street (Block 1938, Lot 38); 2274 Adam Clayton Powell Jr. Boulevard (Block 1939, Lot 34), Community District 10, Borough of Manhattan (the "Disposition Area or Exemption 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 of Section 691 of the General Municipal Law;
2. Waive the area designation requirement of Section 693 of the General Municipal Law pursuant to Section 693 of the General Municipal Law;
3. Waive the requirements of Sections 197-c and 197-d of the 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 Exemption Area from real property taxes pursuant to Section 577 of Article XI of the Private Housing Finance Law.
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, upon due notice, the Council held a public hearing on the Project on May 27, 2020; and
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 pursuant to Section 693 of the General Municipal Law.
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 developed in a manner consistent with the Project Summary that HPD has submitted to the Council on May 19, 2020, a copy of which is attached hereto.
Pursuant to Section 577 of Article XI of the Private Housing Finance Law, the Council approves an exemption of the Exemption Area from real property taxes as follows:
a. All of the value of the property in the Disposition 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 later of (i) the date of conveyance of the Disposition Area to the Sponsor, or (ii) the date that HPD and the Sponsor enter into a regulatory agreement governing the operation of the Disposition Area (“Effective Date”) and terminating upon 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 between HPD and the Sponsor, or (iii) the date upon which the Disposition Area ceases to be owned by either a housing development fund company or an entity wholly controlled by a housing development fund company (“Expiration Date”).
b. Notwithstanding any provision hereof to the contrary, the exemption from real property taxation provided hereunder ("Exemption") shall terminate if HPD determines at any time that (i) the Disposition Area is not being operated in accordance with the requirements of Article XI of the Private Housing Finance Law, (ii) the Disposition Area is not being operated in accordance with the requirements of the regulatory agreement between HPD and the Sponsor, (iii) the Disposition 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, or (iv) the demolition of any private or multiple dwelling on the Disposition Area has commenced without the prior written consent of HPD. HPD shall deliver written notice of any such determination to the owner of the Disposition Area 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 herein, the Exemption shall prospectively terminate.
c. In consideration of the Exemption, the Sponsor and any future owner of the Disposition Area, for so long as the Exemption shall remain in effect, shall waive the benefits, if any, 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, 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.
PROJECT SUMMARY
1. PROGRAM: AFFORDABLE NEIGHBORHOOD COOPERATIVE PROGRAM
2. PROJECT: 2274 Adam Clayton Powell Jr. Blvd. Cluster
3. LOCATION:
a. BOROUGH: Manhattan
b. COMMUNITY DISTRICT: 10
c. COUNCIL DISTRICT: 9
d. DISPOSITION AREA: BLOCK LOT ADDRESS
1729 45 24 West 132 Street
1736 23 37 West 138 Street
1938 38 202 West 133 Street
1939 34 2274 Adam Clayton Powell Jr Blvd.
4. BASIS OF DISPOSITION PRICE: Nominal ($1.00 per building). The Sponsor will also deliver a note and mortgage for the remainder of the appraised value (“Land Debt”) with a term of up to sixty (60) years following cooperative conversion. The remaining balance of the Land Debt may be forgiven in the final year of that period.
5. TYPE OF PROJECT: Rehabilitation
6. APPROXIMATE NUMBER OF BUILDINGS: 4 Multiple Dwellings
7. APPROXIMATE NUMBER OF UNITS: 60
8. HOUSING TYPE: Cooperative. If units 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 Sponsor may operate the building as rental housing in accordance with the written instructions of HPD.
9. ESTIMATE OF INITIAL
PRICE: The cooperative interests attributable to occupied apartments will be sold to the existing tenants for $2,500 per apartment. The cooperative interests attributable to vacant apartments will be sold for a price affordable to families earning no more than 165% of the area median income.
10. INCOME TARGETS: The Disposition Area contains partially occupied buildings which will be sold subject to existing tenancies. After sale, units must be resold in compliance with federal regulations, where applicable. Units not subject to such regulation may be resold to purchasers with annual household incomes up to 165% of the area median.
11. PROPOSED FACILITIES: One (1) storefront commercial space at 2274 Adam Clayton Powell Jr. Blvd.
12. PROPOSED CODES/ORDINANCES: None
13. ENVIRONMENTAL STATUS: Type II
14. PROPOSED TIME SCHEDULE: Approximately 36 months from closing to cooperative conversion.
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 __________, 2020, on file in this office.
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City Clerk, Clerk of The Council