PLEASE TAKE NOTICE that a public hearing will be held on November 13, 2024 at 10:00 a.m., or as soon thereafter as the matter may be reached on the calendar, at which time those wishing to be heard will be given an opportunity to be heard concerning the proposed disposition of the real property identified below. 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:
Block Lot
3232 63
3440 35
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 Homeownership Opportunity Program, private lenders and developer equity. The City provides a tax exemption for the homes.
Upon construction completion, the sponsor will convey the 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 approximately 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 two two-family homes containing a total of approximately four dwelling units on the Disposition Area.
Under the proposed project, the City will sell the Disposition Area to Restored Homes Housing Development Fund Corporation (“Sponsor”) for the nominal price of one dollar per tax lot, and the Sponsor will convey beneficial ownership of the Disposition Area to NSTB LLC (“Company”), which will develop the Disposition Area. The Company will 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”).
The Sponsor and the Company will finance the acquisition and construction of the Disposition Area with loans from HPD and a private lending institution. Upon construction completion, CLT Interboro CLT Housing Development Fund Corporation (“CLT”), a community land trust housing development fund company, will acquire all or a portion of the Disposition Area and enter into one or more ground leases with purchasers. The Sponsor and Company will enter into a regulatory agreement with HPD upon acquisition, establishing certain controls upon the operation of the Disposition Area, and the CLT and/or eligible purchasers will enter into a regulatory agreement with HPD upon conveyance from the Sponsor and Company.
Upon the lease or sale of each unit to an initial purchaser, the Land Debt and City Subsidy, if any, will be apportioned to such units and/or the CLT. 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 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 emailing Margaret Carey at careym@hpd.nyc.gov on business days during business hours.
To make a request for accommodation, such as sign language interpretation services, please contact the Mayor’s Office of Contract Services (“MOCS”) via e-mail at disabilityaffairs@mocs.nyc.gov or via phone at (212) 298-0734. TDD users should call Verizon relay services. Any person requiring reasonable accommodation for the public hearing should contact MOCS at least three business days in advance of the hearing to ensure availability.