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NOTICE IS HEREBY GIVEN that a Real Property A&D Public Hearing will be held on Wednesday, May 27, 2020, at 10:00 AM. The Public Hearing will be held via Conference Call. Call-in #: 1-646-992-2010, Access Code: 717-876-299.
Pursuant to Section 695(2)(b) of the General Municipal Law and Section 1802(6)(j) of the Charter, the Department of Housing Preservation and Development ("HPD") of the City of New York ("City") has proposed the sale of the following City-owned property (collectively, "Disposition Area") in the Borough of Brooklyn:
Addresses Blocks/Lots
423 Herkimer Street 1864 / 48
421 Herkimer Street 1864 / 49
440 Herkimer Street 1871 / 42
444 Herkimer Street 1871 / 43
37 Rochester Avenue 1709 / 9
35 Rochester Avenue 1709 / 10
18 Suydam Place 1709 / 27
20 Suydam Place 1709 / 28
22 Suydam Place 1709 / 29
816 Herkimer Street 1710 / 9
329 Ralph Avenue 1556 / 8
331 Ralph Avenue 1556 / 7
335 Ralph Avenue 1556 / 3
Under the Open Door Program, eligible sponsors purchase City-owned or privately owned land and construct cooperative or condominium buildings affordable to moderate- and middle-income households. Where dictated by lot size, the program may also fund the construction of new one- to three-family homes. Construction financing may be provided through loans from the City ("City Subsidy"), the New York State Affordable Housing Corporation, private lenders and developer equity. The City provides a tax exemption for the homes.
Upon construction completion, the sponsor will sell the homeownership units to households who agree to owner-occupy their units for the length of the regulatory period. If the homeowner sells or refinances during the regulatory period, the homeowner may realize up to 2% appreciation on the original purchase price per year of owner occupancy. Upon resale, the homeowner will also be required to sell to a household earning no more than the project’s income limit.
The proposed project consists of the new construction of approximately seven buildings containing a total of approximately 78 cooperative units on the Disposition Area.
Under the proposed project, the City will sell the Disposition Area to NYC Partnership Housing Development Fund Company, Inc. (“Sponsor”) for the nominal price of one dollar per tax lot, and the Sponsor will convey beneficial ownership of the Disposition Area to BJF Development LLC (“Company”), which will develop the Disposition Area. The Company will also deliver a note, and the Sponsor and the Company (collectively, “Owner”) will deliver a mortgage, for the difference between the appraised value of the land and the purchase price (“Land Debt”).
Upon conversion to a cooperative, the cooperative corporation will repay the Land Debt and City Subsidy, if any, attributable to the property by delivering a note and mortgage and/or conditional grant agreement to the City. At such time, HPD may unsecure or forgive all or a portion of the Land Debt, and unsecure, but not forgive, all or a portion of the City Subsidy, based on the appraised value of a homeownership unit and/or, in the case of forgiveness of Land Debt, if HPD determines that the forgiveness is necessary to reduce the taxable consideration for a unit. The sum evidenced by the note and secured by the mortgage will be reduced to zero upon maturity of the Land Debt and City Subsidy, respectively, if the owner has complied with the program’s restrictions.
The appraisal and the proposed Land Disposition Agreement and Project Summary are available for public examination by contacting HPD at pearsona@hpd.nyc.gov on business days during business hours.
In order to access the Public Hearing and testify, please call 1-646-992-2010, Access Code:
717-876-299 no later than 9:55 AM. If you need further accommodations, please let us know
at least five business days in advance of the Public Hearing via e-mail at DisabilityAffairs@mocs.nyc.gov