New York City Council Header
File #: Res 0467-2014    Version: * Name: LU 144 - Association for Children with Retarded Mental Development Residential Facilities HDFC, Brooklyn
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 11/13/2014
Enactment date: Law number:
Title: Resolution approving a partial exemption from real property taxes for property located at (Block 461, Lot 59) Brooklyn, pursuant to Section 577 of the Private Housing Finance Law (Preconsidered L.U. No. 144).
Sponsors: Julissa Ferreras-Copeland, Brad S. Lander
Council Member Sponsors: 2
Attachments: 1. Memorandum, 2. Hearing Transcript - Stated Meeting 11-13-14, 3. Minutes of the Stated Meeting - November 13, 2014
THE COUNCIL OF THE CITY OF NEW YORK
RESOLUTION NO. 467
 
 
Resolution approving a partial exemption from real property taxes for property located at (Block 461, Lot 59) Brooklyn, pursuant to Section 577 of the Private Housing Finance Law (Preconsidered L.U. No. 144).
 
 
By Council Members Ferreras and Lander
 
WHEREAS, the New York City Department of Housing Preservation and Development ("HPD") submitted to the Council its request dated October 2, 2014 that the Council take the following action regarding a housing project located at (Block 461, Lot 59) Brooklyn ("Exemption Area"):
Approve a partial exemption of the Project from real property taxes pursuant to Section 577 of the Private Housing Finance Law (the "Tax Exemption");
WHEREAS, the project description that HPD provided to the Council states that the owner 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 partial 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 date of repayment or refinancing of the HUD Mortgage.
 
(b)      "Exemption Area" shall mean the real property located in the Borough of Brooklyn, City and State of New York, identified as Block 461, Lot 59 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 Association for Children with Retarded Mental Development Residential Facilities Housing Development Fund Corporation.
 
(e)      "HPD" shall mean the Department of Housing Preservation and Development of the City of New York.
 
(f)      "HUD" shall mean the Department of Housing and Urban Development of the United States of America.
 
(g)      "HUD Mortgage" shall mean the original loan made by HUD to the HDFC in connection with the Section 202 Supportive Housing Program for the Elderly, which loan was secured by a mortgage on the Exemption Area.
 
(h)      "New Exemption" shall mean the exemption from real property taxation provided hereunder with respect to the Exemption Area.
 
(i)      "Owner" shall mean the HDFC or, with the prior written approval of HPD, any future owner of the Exemption Area.
 
(j)      "Prior Exemption" shall mean the exemption from real property taxation for the Exemption Area approved by the Board of Estimate on October 25, 1984 (Cal. No. 106).
 
(k)      "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.
 
(l)      "Shelter Rent" shall mean the total rents received from the commercial and rental 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.
 
(m)       "Shelter Rent Tax" shall mean an amount equal to ten percent (10%) of Shelter Rent.
 
(n)      "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.
2.         The Prior Exemption shall terminate upon the Effective Date.
3.         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.
4.         Commencing upon the Effective Date, and during each year thereafter until the Expiration Date, the HDFC 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  HDFC 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.
5.         Notwithstanding any provision hereof to the contrary:
(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, (iv) the Exemption Area is conveyed to a new owner without the prior written approval of HPD, or (v) 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.
 
(b)       The New Exemption shall not apply to any building constructed on the Exemption Area that was not completed and lawfully occupied on the Effective Date.
 
(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.
 
(d)      All previous resolutions, if any, providing an exemption from or abatement of real property taxation with respect to the Exemption Area are hereby revoked.
 
6.         In consideration of the New Exemption, prior to or simultaneous with repayment or refinancing of the HUD Mortgage, the owner of the Exemption Area shall, for itself, its successors and assigns, (i) execute and record the Use Agreement, (ii) execute and record the Regulatory Agreement, and (iii) for so long as the New 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.
 
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 November 13, 2014, on file in this office.
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City Clerk, Clerk of Council