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Title: Proposed Rule for the Contribution Rate for the West Chelsea Affordable Housing Fund
Agency Rules
City Planning (DCP)
City Planning Commission
22 Reade Street
New York, NY 10007
11/29/2017 10:00 AM

Accessibility questions: Sara Avila, 212 720 3366, savila@planning.nyc.gov, by Wednesday, November 22, 2017 5:00 PM

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Archived
10/24/2017
Notice
Description

DEPARTMENT OF CITY PLANNING

 

 

Notice of Public Hearing and Opportunity to Comment on Proposed Rules

 

What are we proposing?  On behalf of the City Planning Commission (“Commission”), the Department of City Planning (“Department”) proposes an amendment to Chapter 3 of Title 62 of the Rules of the City of New York. The proposed rule will set the contribution amount for the West Chelsea Affordable Housing Fund under paragraph (c) of Section 98-262 of the New York City Zoning Resolution.

 

When and where is the hearing? The Department of City Planning will hold a public hearing on the proposed rule. The public hearing will take place at 10:00am on November 29, 2017. The hearing will be held in Spector Hall at the Department City Planning, located at 22 Reade Street, New York, New York 10007.

 

How do I comment on the proposed rules?  Anyone can comment on the proposed rules by:

 

 

  • Email.  You can email comments to John Mangin at jmangin@planning.nyc.gov.

 

  • Mail.  You can mail comments to John Mangin, Counsel Division, Department of City Planning, 120 Broadway, 31st Floor, New York, New York 10271.

 

  • Fax.  You can fax comments to the Department of City Planning 212-720-3303.

 

  • By speaking at the hearing.  Anyone who wants to comment on the proposed rule at the public hearing must sign up to speak. You can sign up before the hearing by calling 212-720-3366. You can also sign up in the hearing room before the hearing begins on November 29, 2017. You can speak for up to three minutes.

 

Is there a deadline to submit comments? All written comments must be submitted on or before November 29, 2017.

 

Do you need assistance to participate in the hearing?  You must contact the Counsel Division at the Department of City Planning if you need accommodation for a disability at the hearing. You must tell us if you need a sign language interpreter. You can tell us by mail at the address given above. You may also tell us by telephone at 212-720-3366. Advance notice is requested to allow sufficient time to arrange the accommodation. Please tell us by November 22, 2017.

 

This location is equipped with wheelchair ramps and elevators.

 

Can I review the comments made on the proposed rules?  You can review the comments made online on the proposed rules by going to the website at http://rules.cityofnewyork.us/. A few days after the hearing, copies of all comments submitted online, copies of all written comments, and a summary of oral comments concerning the proposed rule will be available to the public between the hours of 9:00 a.m. and 5:00 p.m. at 120 Broadway, 31st Floor, New York, New York.

 

What authorizes the City Planning Commission and the Department of City Planning to make this rule?  Sections 1043 and 191(b)(2) of the City Charter and Section 98-262(c) of the New York City Zoning Resolution authorize the Department of City Planning, on behalf of the City Planning Commission, to make this proposed rule. This proposed rule was not included in the Department of City Planning’s regulatory agenda for this Fiscal Year because it was not contemplated when the Department published the agenda.

 

Where can I find the City Planning Commission’s and Department of City Planning’s rules? The City Planning Commission’s and Department of City Planning’s rules are in title 62 of the Rules of the City of New York.

 

What laws govern the rulemaking process?  The City Planning Commission and the Department of City Planning must meet the requirements of Section 1043 of the City Charter when creating or changing rules. This notice is made according to the requirements of Section 1043 of the City Charter.

 

 

Statement of Basis and Purpose of Proposed Rule

 

 

Background: Section 98-30 of the New York City Zoning Resolution established a High Line Transfer Corridor (“HLTC”) within the Special West Chelsea District (“WCh”). Within WCh, certain receiving sites may increase floor area up to a maximum set forth in Section 98-22 by purchasing unused transferable development rights (“TDRs”) from properties within the HLTC.
 

  • Example: A receiving site in WCh purchases 10,000 square feet (“sf”) of TDR from a site in the HLTC. That purchase increases the maximum permitted floor area on the receiving site by 10,000 sf, and reduces the maximum permitted floor area on the HLTC site by 10,000 sf. It transfers the floor area from one site to the other.  

 

Because these TDRs are finite, Section 98-262(c) provides an alternate way for receiving sites to achieve the maximum floor area set forth in Section 98-22: Once the Chairperson of the City Planning Commission has determined that more than 90 percent of the HLTC TDRs have been transferred, a developer may increase the floor area on a receiving site by making a dollar contribution per square foot increase to the West Chelsea Affordable Housing Fund (“WCAHF”). 

 

  • Example: Once the WCAHF is in effect, a receiving site in WCh that needs to increase maximum permitted floor area by 10,000 sf can either: (1) purchase 10,000 sf of TDR from an HLTC site OR (2) make a per-square-foot contribution to the WCAHF for 10,000 sf of development rights.  

 

As provided in Section 98-262(c), the WCAHF is to be administered by the Department of Housing Preservation and Development to support the production and preservation of affordable housing in Manhattan Community District 4.

 

Section 98-262(c) further provides that the Commission shall determine the contribution amount per square foot increase through a rulemaking process, and that such amount may be adjusted by rule not more than once per year.

 

Proposed Rule: On September 7, 2017, the Chairperson determined that 90 percent of the HLTC TDRs have been transferred. This rule proposes to establish a contribution amount per square foot increase into the WCAHF. 

 

Neither the Zoning Resolution nor the Commission Report approving the WCh text amendment (N 050161(A) ZRM) specifies a method of valuation for the contribution to the WCAHF, which the City Council created through its modification to the Commission-approved version of the WCh text amendment in accordance with City Charter Section 200. At the time of approval, the previous Mayoral Administration entered into a Points of Agreement with the City Council stipulating that the amount of the contribution would be based on the price of HLTC TDRs at the time when 90 percent of the TDRs had been transferred. The contribution amounts for similar mechanisms in the Special Hudson Yards District (ZR 93-31) and the Theater Subdistrict of the Special Midtown District (ZR 81-744) are also based, in part, on the market price of development rights in those areas. The Department believes the approach in WCh fits with those precedents.     

 

The Department analyzed the price per square foot of all 19 arms’-length transactions over the five years preceding the Chairperson determination that 90 percent of the HLTC TDRs had been transferred and determined that the median price for these transactions is $504.48 per square foot. For the sake of simplicity, the Commission proposes to set the contribution amount for the WCAHF at $500 per square foot of increase pursuant to Section 98-262(c).   

 

The City Planning Commission’s and Department of City Planning’s authority for these rules is found in section 1043 and 191(b)(2) of the New York City Charter and Section 98-262(c) of the New York City Zoning Resolution.

 

New material is underlined.

[Deleted material is in brackets.]

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

 

Title 62 of the Rules of the City of New York is amended by adding a new Section 11 to Chapter 3, to read as follows:

 

 

§3-11. Contributions to the West Chelsea Affordable Housing Fund Pursuant to Section 98-262(c) of the New York City Zoning Resolution.

 

Contributions to the West Chelsea Affordable Housing Fund pursuant to Section 98-262(c) of the New York City Zoning Resolution shall be made in an amount equal to $500 per square foot of floor area increase.

 

 


 

NEW YORK CITY LAW DEPARTMENT

DIVISION OF LEGAL COUNSEL

100 CHURCH STREET

NEW YORK, NY 10007

212-356-4028

 

CERTIFICATION PURSUANT TO

CHARTER §1043(d)

 

RULE TITLE: Contributions to West Chelsea Affordable Housing District

REFERENCE NUMBER: 2017 RG 089

RULEMAKING AGENCY: Department of City Planning

 

                        I certify that this office has reviewed the above-referenced proposed rule as required by section 1043(d) of the New York City Charter, and that the above-referenced proposed rule:

 

  1. is drafted so as to accomplish the purpose of the authorizing provisions of law;
  2. is not in conflict with other applicable rules;
  3. to the extent practicable and appropriate, is narrowly drawn to achieve its stated purpose; and
  4. to the extent practicable and appropriate, contains a statement of basis and purpose that provides a clear explanation of the rule and the requirements imposed by the rule.

 

/s/ STEVEN GOULDEN                                                     Date:  October 6, 2017

Acting Corporation Counsel
 


 

NEW YORK CITY MAYOR’S OFFICE OF OPERATIONS

253 BROADWAY, 10th FLOOR

NEW YORK, NY 10007

212-788-1400

 

 

CERTIFICATION / ANALYSIS

PURSUANT TO CHARTER SECTION 1043(d)

 

 

RULE TITLE:  Contributions to West Chelsea Affordable Housing District

REFERENCE NUMBER:  DCP-7

 

RULEMAKING AGENCY:  Department of City Planning

 

 

I certify that this office has analyzed the proposed rule referenced above as required by Section 1043(d) of the New York City Charter, and that the proposed rule referenced above:

 

  1. Is understandable and written in plain language for the discrete regulated

community or communities; and

 

  1. Minimizes compliance costs for the discrete regulated community or

communities consistent with achieving the stated purpose of the rule.

 

 

 

 

 

     /s/  Norma Ponce                                                                           

Mayor’s Office of Operations                                                                           Date: October 6, 2017

 

 

 


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