File #: Res 0212-2014    Version: * Name: LU 52 - Daniel Gilmartin Apartments, Queens
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 4/29/2014
Enactment date: Law number:
Title: Resolution approving a full exemption from real property taxes for property located at 53-11 99 Street (Block 1936, Lot 20), Queens, pursuant to Section 577 of the Real Property Tax Law (Preconsidered L.U. No. 52).
Sponsors: Julissa Ferreras-Copeland
Council Member Sponsors: 1
Attachments: 1. Memorandum, 2. Hearing Transcript, 3. Hearing Transcript - Stated Meeting 4-29-14, 4. Minutes of the Stated Meeting - April 29, 2014
THE COUNCIL OF THE CITY OF NEW YORK
RESOLUTION NO. 212
 
 
Resolution approving a full exemption from real property taxes for property located at 53-11 99 Street (Block 1936, Lot 20), Queens, pursuant to Section 577 of the Real Property Tax Law (Preconsidered L.U. No. 52).
 
 
By Council Member Ferreras
 
WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council its request dated April 14, 2014 that the Council take the following action regarding a housing project located at 53-11 99 Street (Block 1936, Lot 20), Queens ("Exemption Area"):
 
Approve a full exemption of the Project from real property taxes pursuant to Section 577 of the Real Property Tax Law (the "Tax Exemption");
 
WHEREAS, the project description that HPD provided to the Council states that the purchaser of the Project (the "Sponsor") 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 Tax Exemption;
 
RESOLVED:
 
The Council hereby grants a full exemption from real property taxes as follows:
 
1.      For the purposes hereof, the following terms shall have the following meanings:
 
(a)      "Effective Date" shall mean the later of (i) the date of conveyance of the Exemption Area to the HDFC and (ii) the date that HPD and the Owner enter into the Regulatory Agreement.
 
(b)      "Exemption Area" shall mean the real property located in the Borough of Queens, City and State of New York, identified as Block 1936, Lot 20 on the Tax Map of the City of New York.
(c)      "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.
(d)      "HDFC" shall mean Daniel Gilmartin Housing Development Fund Company, Inc.
(e)      "HPD" shall mean the Department of Housing Preservation and Development of the City of New York.
(f)      "New Exemption" shall mean the exemption from real property taxation provided hereunder with respect to the Exemption Area.
(g)      "Owner" shall mean, collectively, the HDFC and the Partnership.
(h)      "Partnership" shall mean Daniel Gilmartin, L.P.
(i)      "Prior Exemption" shall mean the exemption from real property taxation for the Exemption Area approved by the Board of Estimate on May 24, 1984 (Cal. No. 81).
(j)      "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 New Exemption.
(k)      Shelter Rent" shall mean the total rents received from the commercial and residential occupants of the Exemption Area, including any federal subsidy (including, but not limited to, Section 8, rent supplements, and rental assistance), less the cost of providing to such occupants electricity, gas, heat and other utilities.
 
(l)      Shelter Rent Tax" shall mean an amount equal to ten percent (10%) of Shelter Rent, but not less than $200,070.
 
(m)      Use Agreement" shall mean the use agreement by and between the HDFC and HUD
which commences on or before the Effective Date, runs with the land, binds all subsequent owners and creditors of the Exemption Area, and requires that the housing project on the Exemption Area continue to operate on terms at least as advantageous to existing and future tenants as the terms required by the original Section 202 loan agreement or any Section 8 rental assistance payments contract or any other rental housing assistance contract and all applicable federal regulations.
    1. The Prior Exemption shall terminate upon the Effective Date.
    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 or commercial 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 Shelter 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:
      1. a      The New 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, or (iv) the 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 New Exemption shall prospectively terminate.
      2. b.        The New Exemption shall not apply to any building constructed on the Exemption Area which was not completed and lawfully occupied on the Effective Date.
  2.       c…        Nothing herein shall entitle the HDFC to a refund of any real property taxes which accrued and were paid with respect to the Exemption Area prior to the Effective Date.
    1. In consideration of the New Exemption, the owner of the Exemption Area, for so long as the New Exemption shall remain in effect, shall 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.
 
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 April 29, 2014, on file in this office.
 
_______________________
City Clerk, Clerk of Council