THE COUNCIL OF THE CITY OF NEW YORK

RESOLUTION NO. 1604

Resolution to amend tax exemptions previously approved by the City Council pursuant to  Section 696 of the General Municipal Law for certain properties rehabilitated and sold under the Department of Housing Preservation and Development’s ACA/Dollar Homes Program. (L.U. No. 810; 20085725 HAY)

By Council Members Katz and Garodnick

WHEREAS, the New York City Department of Housing Preservation and Development Council submitted to the Council on June 6, 2008 its request dated June 5, 2008 for amendments to certain tax exemptions previously granted by the Council and submitted to the Council on June 16, 2008 its request dated June 13, 2008 adding an additional property to the request for amendments (the “Project”);

WHEREAS, each property for which the amendment is requested (each an “Exemption Area”) is listed on Appendix A, which is attached hereto;

WHEREAS, each Exemption Area is part of a previously approved Urban Action Area Project;

WHEREAS, upon due notice, the Council held a public hearing on the Project on September 2, 2008;

WHEREAS, the Council has considered the land use and financial implications and other policy issues relating to the tax exemptions;

RESOLVED:

                     The Council hereby amends the previously approved tax exemptions as specified in Appendix A by approving the exemption of each Exemption Area from real property taxes pursuant to Section 696 of the General Municipal Law as follows:

1.                     All of the value of the buildings, structures, and other improvements situated on the Exemption Area shall be exempt from local and municipal taxes, other than assessments for local improvements and land value, for a period of ten years commencing on the January 1^st or July 1^st  (whichever shall first occur) following certification by HPD or its designee that (i) rehabilitation of the building on the Exemption Area has been substantially completed and a temporary or permanent Certificate of Occupancy for such building has been issued by the Department of Buildings or is not required and (ii) the cost of such rehabilitation is at least equal to the assessed value of such building as determined in the tax year immediately preceding the grant of the tax exemption hereunder, during the last five years of which such exemption shall decrease in equal annual decrements.

2.                                          The partial tax exemption granted hereunder shall terminate with respect to all or any                      portion of an Exemption Area if the Department of Housing Preservation and                      Development determines that such real property has not been, or is not being,                      developed, used, and/or operated in compliance with the requirements of all                      applicable agreements made by the Sponsor or the owner of such real property with,                      or for the benefit of, the City of New York or the United States Department of                      Housing and Urban Development.  The Department of Housing Preservation and                      Development shall deliver written notice of any such determination of                      noncompliance to the owner of such real property and all mortgagees of record,                      which notice shall provide for an opportunity to cure of not less than ninety (90) days.                      If the noncompliance specified in such notice is not cured within the time period                      specified therein, the partial tax exemption granted hereunder shall prospectively                      terminate with respect to the real property specified therein.

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 September 4, 2008, on file in this office.

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City Clerk, Clerk of The Council

APPENDIX A

EXEMPTION AREA