1 2 CITY COUNCIL 3 CITY OF NEW YORK 4 -------------------------------x 5 THE TRANSCRIPT OF THE MINUTES 6 of the 7 SUBCOMMITTEE ON PLANNING, 8 DISPOSITIONS And CONCESSIONS 9 -------------------------------x 10 May 6, 2008 11 Start: 1:15 p.m. Recess: 1:46 p.m. 12 City Hall 13 Committee Room New York, New York 14 15 B E F O R E: 16 DANIEL GARODNICK Chairperson, 17 18 COUNCIL MEMBERS: Maria Baez Sara Gonzalez 19 Inez Dickens 20 21 22 23 24 LEGAL-EASE COURT REPORTING SERVICES, INC. 17 Battery Place - Suite 1308 25 New York, New York 10004 (800) 756-3410 2 1 2 A P P E A R A N C E S 3 Carol Clark 4 Assistant Commissioner NYC Department of Housing Preservation 5 And Development 6 Director of Planning for Staten Island and Queens NYC Department Housing Preservation 7 And Development 8 Wendell Walters Assistant Commissioner for Housing Production 9 NYC Department of Housing Preservation And Development 10 Meilan Chiu 11 Director of Manhattan Planning NYC Department of Housing Preservation 12 And Development 13 Carolee Fink Economic Development Corporation 14 Clifford V. James 15 Vice President and General Manager Unity Funeral Chapels 16 Ian Rasakssen 17 Office of Eric Poladnick Unity Funeral Chapels 18 Anne-Marie Hendrickson 19 Associate Commissioner, Management and Disposition NYC Department of Housing Preservation 20 And Development 21 22 23 24 25 3 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: Good 3 afternoon, everybody, and welcome to the 4 Subcommittee on Planning, Dispositions and 5 Concessions, a Subcommittee of Land Use of the New 6 York City Council. Today's date is May 6th, 2008. 7 I'm joined by my colleagues who are members of this 8 Committee, Council Member Inez Dickens of Manhattan, 9 and Council Member Sara Gonzalez of Brooklyn. We 10 have a relatively short agenda today and we are 11 going to move right on into it and open the hearing 12 on Land Use Nos 712 and 713. 13 Let me, I forgot to introduce myself, 14 my name is Dan Garodnick. I am the Chair of the 15 Committee and have the pleasure of chairing this 16 Subcommittee. 17 Land Use No. 712, and 713, related 18 items. Lafayette Manor, both in Staten Island, 19 Community Board 1. C080198 ZMR, and C080199 HAR. And 20 Ms. Clark, why don't you go ahead and introduce 21 these related Land Use items, Land Use 712 and 713. 22 ASSISTANT COMMISSIONER CLARK: Thank 23 you, Chairman Garodnick. I'm Carol Clark, Assistant 24 Commissioner at HPD. 25 Council members, it's a pleasure to 4 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 introduce Michael Polo, who is Director of Planning 3 for Staten Island and Queens for HPD, and he'll give 4 the testimony on this item. 5 CHAIRPERSON GARODNICK: Great. Thank 6 you. Welcome. 7 MR. POLO: Good afternoon, Council 8 member, Chair, Council members. This project 9 consists of the proposed disposition of one 10 City-owned lot located at 226 Fillmore Street, under 11 the Section 202 Supportive Housing Program for the 12 Elderly. 13 Under this program, the Department of 14 Housing and Urban Development selected the 15 not-for-profit sponsor Lafayette Manor, HDFC, who 16 will construct a one five-story building containing 17 59 residential units, plus one unit for a 18 superintendent. The project also includes an 19 additional 4,280 square feet of open space. LU 712 20 consists of the proposed amendment to the zoning map 21 for the disposition area from M1-1 to R6. Council 22 Member McMahon has been briefed on the project and 23 indicated his support. 24 CHAIRPERSON GARODNICK: All right, I 25 think that probably answers a lot of the questions 5 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 and just to be clear, for those who are not aware, 3 Section 202 where HUD selected the developer of this 4 property, that is through a competitive process; is 5 that correct? 6 MR. POLO: Correct, sir. That is the 7 competitive process upon which we base all of this, 8 yes. 9 CHAIRPERSON GARODNICK: Okay. And you 10 say this is 59 units and one for a super? 11 MR. POLO: Correct. 12 CHAIRPERSON GARODNICK: And it's 13 supportive housing. 14 MR. POLO: Supportive housing for the 15 elderly. Low-income supportive housing for the 16 elderly, supportive housing refers to on-site social 17 services. 18 CHAIRPERSON GARODNICK: And what sort 19 of on-site social services will be provided here? 20 MR. POLO: Well, counseling 21 recreational opportunities. And a host of services. 22 CHAIRPERSON GARODNICK: Okay. 23 And today, what is on this lot at 24 Fillmore Street? 25 MR. POLO: It is currently a vacant 6 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 lot. It is the former site of the New Brighton Town 3 Hall, a landmarked property which after years of 4 neglect and deterioration was declared unsafe and 5 had to be demolished. 6 The landmark designation for the 7 property was rescinded in 2006. 8 CHAIRPERSON GARODNICK: Okay, thank 9 you. So now it's vacant. 10 MR. POLO: Correct. 11 CHAIRPERSON GARODNICK: Completely 12 vacant. 13 Okay, other questions? 14 Seeing none, and seeing no members of 15 the public wishing to testify on Land Use 712 and 16 713, the related items, I will just ask that Council 17 Member McMahon has expressed his support for this 18 project; is that correct? 19 ASSISTANT COMMISSIONER CLARK: That is 20 correct. 21 CHAIRPERSON GARODNICK: Thank you. We 22 will close the hearing on Land Use 712 and 713, and 23 we will open the hearing on related items, Land Use 24 736 and 737, which is the United Funeral Chapel. And 25 this is C080132 ZMM, C080133 HAM, in Manhattan 7 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 Community Board 10, in the district of our own 3 Council Member Inez Dickens. And Ms. Clark, when 4 you're ready, go right ahead and introduce this 5 item. 6 ASSISTANT COMMISSIONER CLARK: The HPD 7 staff person giving the testimony on this item is 8 Meilan Chiu, who is the Director of Manhattan 9 Planning. 10 CHAIRPERSON GARODNICK: Ms. Chiu, go 11 right ahead. 12 Welcome. 13 MS. CHIU: Thank you, Chairman 14 Garodnick, Council Members. My name is Meilan Chiu, 15 Director of Manhattan Planning at HPD. 16 LU 736 consists of the proposed 17 rezoning of the disposition area located at 263 to 18 267 West 126th Street, which is before the Committee 19 and known as LU 737, Unity Funeral Chapels. 20 The rezoning would facilitate the 21 expansion of the funeral home by amending the 22 existing C1-4 overlay in an R7-2 district to a C2-5 23 overlay. 24 LU 737 consists of the proposed 25 disposition of the three City-owned lots to the New 8 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 York City Economic Development Corporation, who will 3 then convey the property to the Unity Funeral 4 Chapels for the construction of a three-story 5 building, with approximately 6,337 square feet of 6 commercial space. 7 Representatives of EDC are here to 8 provide details. 9 CHAIRPERSON GARODNICK: Go right 10 ahead. 11 MS. FINK: Good afternoon. My name is 12 Carolee Fink. I'm from EDC. I'm here obviously in 13 support of this application, that will let this 14 local business that's been in the Harlem Community 15 for over 50 years expand into adjacent vacant land. 16 I'm happy to answer -- I think Meilan 17 gave a overview of what the project is, I'm happy to 18 answer any specific questions that you have. 19 CHAIRPERSON GARODNICK: Okay. Just so 20 I understand. And I'm sure Council Member Dickens 21 has something to say. 22 So, there are a few lots right next 23 to the Unity Funeral Chapel which are vacant. 24 MS. FINK: Right. 25 CHAIRPERSON GARODNICK: And the 9 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 proposal is to dispose of them to EDC and EDC would 3 thereafter give or sell? 4 MS. FINK: Sell for market. 5 CHAIRPERSON GARODNICK: Sell at market 6 value. 7 MS. FINK: At market to Unity. 8 CHAIRPERSON GARODNICK: Okay. So, it 9 would be a market sale to the Unity Funeral Chapel, 10 based on an independent assessment. 11 Who makes that assessment? 12 MS. FINK: An independent appraisal 13 was done in January 2008. 14 CHAIRPERSON GARODNICK: Okay. 15 Council Member Dickens. 16 COUNCIL MEMBER DICKENS: Thank you, 17 Chair. I want to speak on this because this is 18 located at Frederick Douglas Boulevard at 126th 19 Street in the heart of my district. 20 I have known Unity Funeral Chapels 21 for many, many years, and it has been a fixture in 22 our community, providing comfort and solace to 23 families who have lost loved ones, as well as 24 providing much needed employment to area residents. 25 Today we are considering this project 10 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 would allow Unity Funeral Chapels to undertake a 3 much-needed expansion of their offices, parlor's 4 reception area and parking lot for grieving 5 families. 6 I thank Mr. James, Vice President and 7 General Manager of Unity Funeral Chapels for his 8 presence today to publicly discuss this project, and 9 I would like Mr. James to please join you, if 10 possible, because this is his project and this 11 development. 12 This project consists of two related 13 Land Use actions, one for the disposition of the 14 three City lots to Unity, and a zoning text change 15 to allow funeral home functions on this site which 16 the current zoning does not allow. 17 At this time I'm asking the 18 Subcommittee to consider holding this project over 19 for a vote until Thursday, May 8th's full Land Use 20 Committee for a number of reasons. 21 At the onset, though, let me be 22 clear, I am extremely supportive of Mr. James and 23 Unity Funeral Chapel's project. 24 This Land Use action will allow a 25 minority owned and operated small business, a topic 11 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 that is close to my heart, as the member of the 3 Council from Central Harlem, to expand his business, 4 offer new and expanded services to families during 5 their time of need, and provide parking for people 6 attending services at Unity. 7 Also, the new space will allow for a 8 new parking space for Unity's hearses, which will 9 allow remains to be removed more discretely, rather 10 than at the front door on Frederick Douglas 11 Boulevard. 12 However, to this point, the local 13 community board has not yet had a full board vote 14 and resolution on either of these actions. The 15 first, the zoning text change, was superseded by the 16 discussion on guess what? The 125th Street rezoning, 17 and a lack of quorum at the Land Use Committee of CB 18 10. 19 CHAIRPERSON GARODNICK: Did that take 20 any of your time, Council Member Dickens? 21 COUNCIL MEMBER DICKENS: How about my 22 life? 23 There can be no official vote on that 24 at this time. 25 However, Community Board 10 is 12 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 meeting tomorrow night to vote on the disposition 3 sale of the three lots which the Land Use Committee 4 has already approved. 5 Because I believe that the community 6 boards are the true representation of the 7 communities for electeds and City government, I am 8 reserving my official support of this project until 9 I receive notification of Community Board 10's 10 support of the project. 11 As such, I have asked the Board, EDC 12 and Unity Funeral Chapels to include language on the 13 zoning map change within the full Board resolution 14 on the disposition sale of the three lots to be 15 voted on tomorrow night. 16 If that is approved, which I think it 17 will be, and upon receipt of the notice of approval 18 of CB 10 by my office, I will strongly support this 19 expansion of Unity Funeral Chapels as one of 20 Harlem's true local small business. 21 Thank you, Chair, for the time, and I 22 ask my colleagues for their consideration and 23 indulgence of my request that this vote be laid over 24 until Thursday morning. 25 Thank you. 13 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: Thank you very 3 much. 4 Mr. James, did you have anything to 5 add? 6 You have to hit the button on the 7 microphone. There you go. 8 MR. JAMES: Clifford V. James is my 9 name. I've been a part of Unity for 38 years. I 10 started out there at 18 years old. Thirty-eight 11 years is as long as I've been employed there. Unity 12 has been in the community since 1953. And at this 13 time we do need to acquire these lots to expand our 14 facility, to offer more comfort to our families. And 15 at this time, Unity was built back in 1953, the 16 community has changed, our business has expanded 17 more, and we do need these properties at this time, 18 to move on into the future. And this is my vision to 19 hopefully acquire it. 20 This is something we started four and 21 a half years ago. It's been a long journey, but I'm 22 trying to stick it out. 23 Sometimes I want to give up, but 24 you've got to keep perseverance and persistence. 25 So, hopefully we can get this. 14 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: Thank you. We 3 congratulate you on your perseverance and as per the 4 request from my colleague, Council Member Dickens, I 5 would be pleased to lay this over for the purposes 6 of a vote until the full Land Use Committee on 7 Thursday. 8 And we have one more person wishing 9 to testify on this item, so before we close the 10 hearing I'd like to invite Ian Rasakssen (phonetic). 11 Oh, here he is. Okay, he's sitting right next to 12 you. That makes it very easy. 13 MR. RASAKSSEN: Good afternoon, 14 Councilman. I'm here from the office of Eric 15 Poladnick, and we represent Unity Funeral Chapels in 16 this transaction and Land Use application, and Mr. 17 Poladnick apologizes for not being able to be here 18 this afternoon, and I was actually just here to make 19 myself available for your questions. Thank you. 20 CHAIRPERSON GARODNICK: Good. Thank 21 you. I appreciate it, and I think we have no other 22 members of the public wishing to testify, so we will 23 close the hearing on this item, which is Land Use 24 No. 740 and 741. I'm sorry, Land Use 736 and 737. My 25 apologies. This is the Unity Funeral Chapel, C080132 15 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 ZMM, and C080133 HAM, and we will lay it over for 3 the purposes of voting until Land Use on Thursday. 4 We thank you for being here. 5 We will open the hearing now on Land 6 Use number 740 and 741, the related items at New 7 Lots Plaza. C080228 ZMK, and C080229 HAK, both in 8 Brooklyn. Both in the district of Council Member 9 Barron. And Ms. Clark. 10 ASSISTANT COMMISSIONER CLARK: Yes, 11 Chairman Garodnick. The testimony today for HPD will 12 be given by Assistant Commissioner for Housing 13 Production, Wendell Walters. 14 CHAIRPERSON GARODNICK: Mr. Walters, 15 welcome. 16 ASSISTANT COMMISSIONER WALTERS: Thank 17 you. Good afternoon to the Committee. Land Use No. 18 740 consists of a proposed amendment to the zoning 19 map to facilitate development of a project also 20 under consideration by this Committee and known as 21 Land Use No. 741, the New Lots Plaza Project. 22 This will be accomplished by changing 23 the disposition area from a C8-1 to a R6A with a 24 C2-4 overlay. Commercial overlay. 25 Land Use 741 consists of the proposed 16 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 disposition of 7 vacant City-owned lots located at 3 655 through 699 New Lots Avenue, 840 Levonia Avenue 4 and 675 Barbey Street for development under HPD's 5 Cornerstone Program. The sponsor, New Lots Housing 6 Development Fund Company, Incorporated, will 7 construct one building containing 86 rental dwelling 8 units, plus one super's unit, as well as 9 approximately 10,000 square feet of commercial space 10 and 8,300 square feet of open space. 11 Council Member Barron has viewed the 12 project and has indicated his support. 13 I will go on. The project is an 14 affordable one with the affordable range under six 15 percent of AMI and lower for all of the units, the 16 project was also subject to an RFP that was issued 17 by HPD in August 2005, so it was competitively bid 18 upon and awarded to this group. 19 CHAIRPERSON GARODNICK: Excellent. You 20 anticipated all of my questions. And I thank you for 21 that. 22 Let me just to follow up, the 23 affordability component, less than 60 percent, under 24 60 percent of AMI, that is for what period of time 25 under cornerstone? 17 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 ASSISTANT COMMISSIONER WALTERS: That 3 is a 30-year restriction period. 4 CHAIRPERSON GARODNICK: Thank you. 5 Council Member Dickens. 6 COUNCIL MEMBER DICKENS: Thank you so 7 much, Chair. And the disposition of the lots, was 8 that at market value? 9 ASSISTANT COMMISSIONER WALTERS: No, 10 these were for nominal disposition prices. 11 COUNCIL MEMBER DICKENS: For nominal 12 amounts. Seven lots. 13 ASSISTANT COMMISSIONER WALTERS: 14 That's correct. 15 COUNCIL MEMBER DICKENS: Seven lots? 16 ASSISTANT COMMISSIONER WALTERS: 17 That's correct. To reach the affordability levels 18 that we're trying to accomplish in this project. 19 COUNCIL MEMBER DICKENS: All right. 20 And you said how many units would be created at 60 21 percent or less AMI? 22 ASSISTANT COMMISSIONER WALTERS: Well, 23 it's 100 percent below 60 percent of AMI, and we 24 have two tiers that are reaching 40 percent. Four 25 out of the 86 rental units will be at 40 percent of 18 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 AMI, and ten of the two bedrooms in the project will 3 also be at 40 percent of AMI, as well. 4 COUNCIL MEMBER DICKENS: And that's 5 excellent, by the way. And you said for how long? 6 ASSISTANT COMMISSIONER WALTERS: For a 7 30-year regulatory restricted period. 8 COUNCIL MEMBER DICKENS: Oh, I 9 congratulate my colleague for getting that. And 10 wouldn't it have been great if it had been in 11 perpetuity, however? 12 Thank you. 13 CHAIRPERSON GARODNICK: Thank you, 14 Council Member Dickens. And you said that this was a 15 competitive process for the selection of, the name 16 of the developer was New Lots, I think is what you 17 said? It's also the address; is that correct. 18 ASSISTANT COMMISSIONER WALTERS: That 19 is correct. 20 CHAIRPERSON GARODNICK: What's the 21 name of the developer? 22 ASSISTANT COMMISSIONER WALTERS: The 23 name of the builder is the Jackson Development 24 Group. They put together this name for the purposes 25 of this project. 19 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: And the name 3 is New Lots? 4 ASSISTANT COMMISSIONER WALTERS: New 5 Lots Housing Development Fund Company. 6 CHAIRPERSON GARODNICK: Okay, thank 7 you. 8 Seeing no other members of the public 9 wishing to testify on this item, we will close the 10 hearing on Land Use No 740 and 741, related items 11 C080228 ZMK, C080229 HAK, and we will open the 12 hearing on Land Use 671, non-ULURP No. 20085276 HAQ 13 at 116-10 14th Road in Queens, in the district of 14 Council Member Avella. 15 Ms. Clark. 16 ASSISTANT COMMISSIONER CLARK: I'm 17 pleased this afternoon that we're joined by the 18 Associate Commissioner for Management and 19 Disposition in HPD, Anne-Marie Hendrickson, who will 20 give the testimony on this item. 21 CHAIRPERSON GARODNICK: Welcome, Ms. 22 Hendrickson. 23 ASSOCIATE COMMISSIONER HENDRICKSON: 24 Good afternoon, Chair, other Committee Members. 25 Land Use 671 consists of the proposed 20 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 disposition of one occupied six-unit City-owned 3 building located at 116-10 14th Road. 4 The proposed sponsor, Napco Holdings, 5 LLC (phonetic), will bring the building to code and 6 conserve the five existing tenancies. 7 The tenants will pay current HPD 8 rents for two years, thereafter the rents will be 9 subject to rent stabilization. 10 Councilman Avella has been briefed 11 and supports the project. 12 Thank you. 13 CHAIRPERSON GARODNICK: Thank you. 14 I note this is part of the negotiated 15 sale program. How was Napco selected in this 16 process? 17 ASSOCIATE COMMISSIONER HENDRICKSON: 18 Napco was selected in this process, they are a 7A 19 Administrator, they have worked with HPD for many 20 years in bringing buildings up to code and 21 conserving existing tenancies. They were selected 22 based on the track record that they brought to the 23 table. 24 CHAIRPERSON GARODNICK: Thank you. 25 Has HPD instituted any policies or 21 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 procedures relative to the negotiated sale program? 3 ASSOCIATE COMMISSIONER HENDRICKSON: 4 Yes, we have. What we have decided to do moving 5 forward is use the existing 7A Administrators' list 6 when we are looking at projects that have had a 7 troubled history and unable to get out of City 8 disposition. So, we're going to use the 7A list as a 9 basis for selecting, having offered it to several 7A 10 Administrators, these are Administrators that are 11 appointed pursuant to the Housing Court, and we 12 believe that they bring the type of background to 13 the troubled type of projects that are normally in 14 the negotiated sales process. 15 CHAIRPERSON GARODNICK: What is the 16 standard that a court uses in determining whether 17 somebody is qualified to be a 7A Administrator? 18 ASSOCIATE COMMISSIONER HENDRICKSON: 19 It's not really the court that decides. It's 20 basically HPD that has put forth criteria on 21 selecting a 7A and appointing them to the list. And 22 basically what they have to do is have a track 23 record in managing occupied buildings, managed at 24 least 200 units over a period of two years. And 25 again, working with distressed properties in 22 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 bringing them up to code. 3 So there is criteria that HPD has 4 imposed prior to having anyone come on to an 5 approved 7A listing. 6 CHAIRPERSON GARODNICK: So, is it 7 HPD's sole discretion to determine who goes on the 8 7A list? 9 ASSOCIATE COMMISSIONER HENDRICKSON: 10 It is HPD's discretion to put those people who are 11 deemed qualified on the list. However, in order to 12 be appointed to a 7A building, the Housing Court 13 must approve that appointment. 14 CHAIRPERSON GARODNICK: So, the people 15 that you're selecting for negotiated sale are not 16 simply developers that were put on the list by HPD, 17 they are developers that were put on the list by HPD 18 and thereafter selected by a Housing Court? 19 ASSOCIATE COMMISSIONER HENDRICKSON: 20 Right. 21 CHAIRPERSON GARODNICK: To be a 7A 22 Administrator at one point or another? 23 ASSOCIATE COMMISSIONER HENDRICKSON: 24 Yes, that's exactly the process. We have to propose 25 to the Housing Court a 7A and a 7A has to be 23 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 approved, has to post a bond in Housing Court, in 3 order to be appointed as a 7A Administrator. 4 CHAIRPERSON GARODNICK: Okay, so there 5 is no situation in which you are proposing, or will 6 propose the disposition of a property just to a 7 developer who was put on the 7A list by HPD, but 8 rather it will always be somebody who has gone 9 through a court approval process; is that right? 10 ASSOCIATE COMMISSIONER HENDRICKSON: 11 Yes. Again, there are those that have been put on 12 the list and never appointed to a build. We are 13 looking at those that have been appointed as 7As, 14 and again, bring a track record to managing those 15 distressed properties. 16 CHAIRPERSON GARODNICK: Okay. So, you 17 will not consider anybody who has not been appointed 18 as a 7A by a court for the purpose of disposition 19 under the Negotiated Sale Program? 20 ASSOCIATE COMMISSIONER HENDRICKSON: 21 That is correct. 22 CHAIRPERSON GARODNICK: Okay, and this 23 is a new policy; is that correct? 24 ASSOCIATE COMMISSIONER HENDRICKSON: 25 Yes, it is. 24 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: Okay. 3 Are there other members of the public 4 wishing to testify on this item? There are none. 5 Council Member Avella, has he indicated his support? 6 ASSOCIATE COMMISSIONER HENDRICKSON: 7 Yes, he has. 8 CHAIRPERSON GARODNICK: Thank you. 9 And this is a six-unit building? 10 ASSOCIATE COMMISSIONER HENDRICKSON: 11 Yes, it is. 12 CHAIRPERSON GARODNICK: Okay. 13 ASSOCIATE COMMISSIONER HENDRICKSON: 14 Five occupied. There's a total of six units in the 15 building. 16 CHAIRPERSON GARODNICK: Today there is 17 six units in the building. 18 ASSOCIATE COMMISSIONER HENDRICKSON: 19 Today and forever. Six units with five occupancies 20 at the time. 21 CHAIRPERSON GARODNICK: Okay. And just 22 so I understand, the Napco will keep the tenants who 23 are there in place? 24 ASSOCIATE COMMISSIONER HENDRICKSON: 25 Yes, they will. 25 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: And under what 3 rules and regulations? 4 ASSOCIATE COMMISSIONER HENDRICKSON: 5 The building will -- the tenants will pay the 6 current HPD rent for two years, thereafter the rents 7 will be subject to rent stabilization as a six-unit 8 building. 9 CHAIRPERSON GARODNICK: Oh, yes, you 10 mentioned that. Okay, good. Thank you. 11 Council Member Dickens. 12 COUNCIL MEMBER DICKENS: Thank you so 13 much. 14 And when you say for two years the 15 current rent, how much will those increases be at 16 the end of the two years? 17 ASSOCIATE COMMISSIONER HENDRICKSON: 18 Again, subject to rent stabilization so -- 19 COUNCIL MEMBER DICKENS: Meaning it 20 will go by the percentage point that's allowable at 21 that time? 22 ASSOCIATE COMMISSIONER HENDRICKSON: 23 Yes. Yes. After two years. 24 COUNCIL MEMBER DICKENS: And what if 25 the tenant cannot pay that? What if that represents 26 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 too high for the resident? 3 ASSOCIATE COMMISSIONER HENDRICKSON: 4 These rents, Council Member Dickens, are extremely 5 low right now. The rents range from $69 to $340. 6 COUNCIL MEMBER DICKENS: That sounds 7 very affordable. 8 ASSOCIATE COMMISSIONER HENDRICKSON: 9 So, we don't believe there are issues. But should a 10 tenant, there are some seniors in the building, 11 should a tenant not be able to pay, they will be 12 eligible for SCRIE exemptions to make sure they're 13 protected from rent increases. 14 COUNCIL MEMBER DICKENS: SCRIE, which 15 will prevent the rents from going up? 16 ASSOCIATE COMMISSIONER HENDRICKSON: 17 Right. They will minimize -- 18 COUNCIL MEMBER DICKENS: To protect 19 the seniors. What happens if it's not a senior? 20 ASSOCIATE COMMISSIONER HENDRICKSON: 21 If it's not a senior and we get into where someone 22 can afford, they can come back to HPD if they're 23 Section 8 eligible, and we will provide them with a 24 voucher. 25 COUNCIL MEMBER DICKENS: Which means 27 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 they may be eligible, they may not. 3 ASSOCIATE COMMISSIONER HENDRICKSON: 4 That's true. 5 COUNCIL MEMBER DICKENS: And if 6 they're not eligible for Section 8 and they're just 7 outside of the limits? 8 ASSOCIATE COMMISSIONER HENDRICKSON: 9 Then what we'll do is work with Napco. They will 10 hold the tenant harmless. 11 They are not going to put anybody out 12 for not being able to pay the rent. 13 COUNCIL MEMBER DICKENS: I just want 14 to be sure of that. Is there any guarantees to that, 15 such as in their lease? 16 ASSOCIATE COMMISSIONER HENDRICKSON: 17 There will be an enforcement agreement executed with 18 Napco, where, again, they're going to be doing work 19 in the building, but they have agreed not to 20 implement any sort of nature capital improvement 21 increases, nor raise the rents and put a rent burden 22 on the tenant. It will be in the enforcement 23 agreement. 24 COUNCIL MEMBER DICKENS: Is there an 25 enforcement agreement that is available for the 28 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 Chair to review to ensure the protection of these 3 tenants? 4 ASSOCIATE COMMISSIONER HENDRICKSON: 5 Surely. 6 COUNCIL MEMBER DICKENS: Will you 7 please provide it to the Chair so that we can be 8 assured? And who will see to it that it's indeed 9 enforced. 10 Will HPD be responsible for that? 11 ASSOCIATE COMMISSIONER HENDRICKSON: 12 Yes, there will be an HPD enforcement agreement. So, 13 we will provide you with a draft of that agreement. 14 COUNCIL MEMBER DICKENS: All right. 15 Thank you so much. 16 CHAIRPERSON GARODNICK: We look 17 forward to that. 18 Thank you. 19 And with that, we will close the 20 hearing on Land Use 671, non-ULURP 20085276 HAQ in 21 the district of Council Member Avella in Queens. 22 Council Member Dickens, before we 23 open the next item, did you have something? Let me 24 note that we -- let me note that we've been joined 25 by Council Member Maria Baez of the Bronx. We will 29 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 open the hearing on the first of our last two items 3 for the day. Land Use No. 692, non-ULURP No. 4 20085309 HAK, 639 East 87th Street in Brooklyn, in 5 the District of Council Member Lew Fidler. 6 ASSISTANT COMMISSIONER CLARK: And 7 this item, again, will be testified on by Anne-Marie 8 Hendrickson, the Associate Commissioner of HPD. 9 ASSOCIATE COMMISSIONER HENDRICKSON: 10 Land Use 692 consists of the proposed disposition of 11 a one-family occupied City-owned building located at 12 639 East 87th Street in Brooklyn, under HPD's Tenant 13 Ownership Program to Allen Flemming and Edith Harris 14 Flemming. 15 Under the Tenant Ownership Program 16 eligible existing tenants purchase buildings in as 17 is condition. The program requires that the building 18 be owner-occupied and conserved as residential 19 property. 20 Council Member Fidler has reviewed 21 the project and indicated his support. 22 Thank you. 23 CHAIRPERSON GARODNICK: Thanks. 24 What are the terms in which it is 25 disposed to the existing tenants? 30 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 ASSOCIATE COMMISSIONER HENDRICKSON: 3 It's disposed to the existing tenant at a sales 4 price. It's normally appraised value. This 5 particular price was negotiated and lowered, so 6 we're selling it to the family for $395,000. 7 CHAIRPERSON GARODNICK: Are there any 8 ongoing obligations to the family, as to future 9 sales or anything like that? 10 ASSOCIATE COMMISSIONER HENDRICKSON: 11 Owner-occupied, and again, just conserved as 12 residential property for 20 years. 13 CHAIRPERSON GARODNICK: Thank you. 14 Seeing no other members of the public 15 wishing to testify on Land Use 692, non-ULURP 16 20085309 in the district of Council Member Fidler, 17 we will close the hearing on that item and open the 18 hearing on our last item for the day, Land Use 707. 19 Non-ULURP 20085403 HAM, 1508 Amsterdam Avenue in 20 Manhattan in the district of Council Member Robert 21 Jackson. 22 ASSISTANT COMMISSIONER CLARK: Again, 23 because this item does fall into the area of HPD 24 that's under Associate Commissioner Hendrickson's 25 expertise, she is going to offer this testimony. 31 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 ASSOCIATE COMMISSIONER HENDRICKSON: 3 Land Use 707 consists of the proposed disposition, 4 it's an occupied City-owned building located at 1508 5 Amsterdam Avenue under HPD's Tenant Interim Lease 2 6 Program. 7 This project differs from the usual 8 TIL model in that the property is currently managed 9 by the not-for-profit organization, West Harlem 10 Group Assistance, Incorporated, instead of the 11 tenants, and the City would convey the disposition 12 area to a Housing Development Fund Corporation 13 formed by West Harlem Group Assistance instead of 14 one formed by the tenants. 15 1508 Amsterdam Avenue was previously 16 in the Tenant Interim Lease Program, entered in 17 October 1st, 1998, and removed in December 2006 for 18 poor rent collection and factualism within the 19 building. 20 At the request of the Council member, 21 the building was placed into TIL 2 to provide the 22 tenants with another opportunity to demonstrate that 23 they can work cohesively as a tenant association. 24 Upon the completion of renovation the 25 tenants may purchase their building from West Harlem 32 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 Group Assistance as a low-income cooperative. 3 West Harlem Group Assistance will 4 rehabilitate the building which will provide 22 5 cooperative dwelling units and storefront commercial 6 space. Councilman Jackson has reviewed the project 7 and indicated his support. 8 CHAIRPERSON GARODNICK: Is TIL 2 9 actually a separate program, or is it just a 10 separate effort at TIL? 11 ASSOCIATE COMMISSIONER HENDRICKSON: 12 It is a separate program in that we are actually 13 looking to expand TIL 2 and there are a number of 14 buildings in the TIL program now that we would like 15 to accelerate, and expand TIL 2 where they can work 16 with a not-for-profit who will function as the 17 developer to accelerate the pace of disposition, but 18 the tenants will buy their co-op after the building 19 has been completed. 20 CHAIRPERSON GARODNICK: And what will 21 be the terms of purchase? 22 ASSOCIATE COMMISSIONER HENDRICKSON: 23 The terms of purchase, we will sell it to the 24 not-for-profit at a nominal value. The tenants will 25 buy their cooperative shares for $250 per unit. 33 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: How big are 3 the units? 4 ASSOCIATE COMMISSIONER HENDRICKSON: 5 This particular building, I believe the units are 6 comprised of two-bedrooms, and I believe there are 7 some three-bedrooms. I don't have an exact breakdown 8 of the dwelling units. 9 CHAIRPERSON GARODNICK: And are there 10 ongoing obligations to the tenants for resale? 11 ASSOCIATE COMMISSIONER HENDRICKSON: 12 Yes, there will be ongoing restrictions on resale. 13 We restrict them from selling to families who earn 14 above 120 percent of area median income, and they're 15 also, upon sale, if there are proceeds, a portion 16 will go back into the cooperative reserve accounts. 17 CHAIRPERSON GARODNICK: Thank you. 18 Seeing no members of the public 19 wishing to testify on this item, we will close the 20 hearing on Land Use 707, 20085403 HAM at 1508 21 Amsterdam Avenue in Manhattan and that wraps up our 22 calendar for the day. 23 What we're going to do is, I'm just 24 going to tell you specifically which items we're 25 going to vote on today. Land Use 712, 713, 740, 741, 34 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 671, 692 and 707. 3 We are laying over Land Use Nos 736 4 and 737 to the full Land Use meeting on Thursday. 5 And we're laying over all other items on the 6 calendar that we did not hear today. 7 And with that, I will ask the Counsel 8 to call the roll. Chair recommending an aye vote on 9 all. 10 COUNSEL TO COMMITTEE: Chair 11 Garodnick. 12 CHAIRPERSON GARODNICK: I vote aye. 13 COUNSEL TO COMMITTEE: Council Member 14 Baez. 15 COUNCIL MEMBER BAEZ: Aye. 16 COUNSEL TO COMMITTEE: Council Member 17 Gonzalez. 18 COUNCIL MEMBER GONZALEZ: Aye. 19 COUNSEL TO COMMITTEE: Council Member 20 Dickens. 21 COUNCIL MEMBER DICKENS: Aye. 22 COUNSEL TO COMMITTEE: By a vote of 23 four in the affirmative, none in the negative and no 24 abstentions, the aforementioned items are approved 25 and referred to the full Committee. 35 1 PLANNING, DISPOSITIONS AND CONCESSIONS 2 CHAIRPERSON GARODNICK: Thank you very 3 much. 4 And with that, the Subcommittee is 5 adjourned. 6 (Hearing concluded at 1:46 p.m.) 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 36 1 2 CERTIFICATION 3 4 5 STATE OF NEW YORK ) 6 COUNTY OF NEW YORK ) 7 8 9 I, CINDY MILLELOT, a Certified 10 Shorthand Reporter, do hereby certify that the 11 foregoing is a true and accurate transcript of the 12 within proceeding. 13 I further certify that I am not 14 related to any of the parties to this action by 15 blood or marriage, and that I am in no way 16 interested in the outcome of this matter. 17 IN WITNESS WHEREOF, I have hereunto 18 set my hand this 6th day of May 2008. 19 20 21 22 23 --------------------- 24 CINDY MILLELOT, CSR. 25 37 1 2 C E R T I F I C A T I O N 3 4 5 6 7 8 9 I, CINDY MILLELOT, a Certified Shorthand 10 Reporter and a Notary Public in and for the State of 11 New York, do hereby certify the aforesaid to be a 12 true and accurate copy of the transcription of the 13 audio tapes of this hearing. 14 15 16 17 18 19 20 21 22 23 24 ----------------------- CINDY MILLELOT, CSR. 25