(a) Definitions.
(1) "Agency Activity" shall mean the making of any Disposition, the provision of any Assistance, or the execution of any agreement regarding Disposition or Assistance by the Agency in connection with a Project.
(2) "Administrative Code" shall mean the Administrative Code of the City.
(3) "Agency" shall mean the City's Department of Housing Preservation and Development and any successor agency.
(4) "Applicant" shall mean any potential Sponsor of a Project, without regard to the method used by the Agency to select the Sponsor for such Project, including, but not limited to, any person or entity which has submitted or might potentially submit a qualification statement, proposal, bid, application, or other submission.
(5) "Assistance" shall mean funds or other items of value provided by the Agency to a Sponsor in order to enable such Sponsor to perform Project Activities. Assistance may be made available to Sponsors in any form permitted by applicable Law which is determined by the Agency to be necessary or desirable, including, but not limited to, Loans and Subsidies.
(6) "Authorization Letter" shall mean a letter authorizing an Applicant or Selected Applicant to apply for funding to a potential public or private financing institution for the development of one or more Project(s) on one or more Site(s).
(7) "Binding Agreement" shall mean a legally binding written agreement between a Sponsor and the City which (i) requires such Sponsor to perform or be responsible for the performance of Project Activities in connection with a Project, (ii) has been approved by the Governing Body, if such approval is required by applicable Laws, (iii) has been approved as to form by the Law Department, and (iv) has been duly executed by all parties whose execution of such agreement is required to make such agreement legally enforceable; provided, however, that a net lease, lease, or license agreement between the City and an Applicant or Selected Applicant with regard to possession of or the right to enter all or part of a Site during the term of negotiations regarding a Project or prior to the Disposition of a Site shall not be deemed to be a Binding Agreement.
(8) "City" shall mean the City of New York.
(9) "City Housing Goals" shall mean the purposes set forth in 28 RCNY § 33-01(c).
(10) "Commissioner" shall mean the Commissioner of the Agency or his or her designee.
(11) "Disposition" shall mean the conveyance of fee title or any other real property interest in a Site from the City to a Sponsor. Such real property interests shall include, but shall not be limited to, ground leases, easements, future interests, and other conveyances of less than the entire fee title to a Site. Notwithstanding anything herein to the contrary, such real property interests shall not include any interests conveyed at mortgage foreclosure sales, utility easements, leases entered into by the Agency's Office of Housing Management and Sales, transfers of Jurisdiction over a Site from one City agency to another, or licenses.
(12) "EO Clearance" shall mean that (i) an Applicant, Selected Applicant, or Sponsor and its principals (and, where the Agency deems such additional review to be appropriate, the contractors retained by such Applicant, Selected Applicant, or Sponsor and all of their respective principals) have completed, executed, and submitted the required forms to and attended any required meetings with the Agency's Office of Equal Opportunity, and (ii) the Agency's Office of Equal Opportunity, after review of such information and any other available information, has made no finding of noncompliance with the applicable Laws regarding equal opportunity, labor compensation, locally based enterprises, and other matters monitored by the Agency's Office of Equal Opportunity.
(13) "Governing Body" shall mean the Mayor and/or the City Council, acting singly or in combination in accordance with the powers vested in them by the Charter.
(14) "GML" shall mean the General Municipal Law of the State of New York.
(15) "Grant" shall mean a grant made by the City to a Sponsor for Project Activities pursuant to Article 16 of the GML.
(16) "IG Clearance" shall mean that (i) an Applicant, Selected Applicant, or Sponsor and its principals (and, where the Agency deems such additional review to be appropriate, the contractors retained by such Applicant, Selected Applicant, or Sponsor and all of their respective principals) have completed, executed, and submitted the required forms to and attended any required meetings with the Department of Investigation's Office of the Inspector General and/or the Agency's Sponsor Review Unit, as the case may be, and (ii) the Department of Investigation's Office of the Inspector General and/or the Agency's Sponsor Review Unit, as the case may be, after review of such information and any other available information, has made no finding of derogatory information which indicates that the City should not do business with such party.
(17) "Laws" shall mean any applicable laws, ordinances, orders, rules, and regulations promulgated by any local, state, or federal authority having jurisdiction over the subject matter thereof, as amended from time to time.
(18) "Law Department" shall mean the City's Law Department and any successor agency, or its designee.
(19) "Loan" shall mean a loan made by the City to a Sponsor for Project Activities.
(20) "Negotiation Letter" shall mean a letter informing a Selected Applicant that the Agency will commence negotiations with such Selected Applicant regarding a Project.
(21) "PHFL" shall mean the Private Housing Finance Law of the State of New York.
(22) "Program" shall mean two or more Projects which (i) share the same funding source, Sponsor, grantee, or borrower, or otherwise provide for similar treatment of multiple Sites, and (ii) are deemed by the Agency to constitute a Program.
(23) "Project" shall mean a project which involves Disposition and/or Assistance by the City to a Sponsor pursuant to these Rules for Project Activities to be performed at any Site.
(24) "Project Activity" shall mean any activity performed, caused to be performed, or required to be performed by the Sponsor in connection with a Project, including, but not limited to, the acquisition, design, rehabilitation, construction, improvement, and/or marketing of a Site.
(25) "RFP" shall mean a Request for Proposals.
(26) "RFQ" shall mean a Request for Qualifications.
(27) "RPTL" shall mean the Real Property Tax Law of the State of New York.
(28) "Rules" shall mean these rules.
(29) "Selected Applicant" shall mean an Applicant selected or approved by the Agency to enter into negotiations with the Agency regarding a Project.
(30) "Site" shall mean the real property and improvements, if any, located in New York City which are the subject of a Project performed pursuant to these Rules.
(31) "Sponsor" shall mean an Applicant or Selected Applicant, or an entity formed by an Applicant or Selected Applicant and approved by the Agency, which has executed one or more Binding Agreement(s) with the Agency. Unless the Agency elects to limit the types of entities which may serve as Sponsor for a Project, a Sponsor may be an individual, corporation, partnership, joint venture, or any other entity permitted by Law.
(32) "Subsidy" shall mean any Assistance by the Agency which is intended to reduce the cost of a Project to its Sponsor. Subsidy may be made available to Sponsors in any form permitted by applicable Law which is determined by the Agency to be necessary or desirable, including, but not limited to, (i) Grants, (ii) real property sale prices which are nominal or are otherwise below the fair market value of such Sites, (iii) Loans at no interest or nominal interest or at interest rates below the prevailing private sector interest rates for similar loans, (iv) Loans which provide for payment or other terms which are more favorable than the prevailing private sector terms for similar loans, (v) Loans which provide that principal and/or interest may be written down or otherwise forgiven, (vi) Tax Benefits, (vii) contractual agreements to provide funding, (viii) waiver or forgiveness of City deposits, fees, charges, taxes, liens, or rights to receive payment, (ix) construction or funding by the City of infrastructure or other improvements which are customarily paid for by real estate developers, (x) rental subsidy assistance administered by the City under the Section 8 Housing Voucher or Certificate Program or any other rental subsidy programs, and (xi) any other Assistance permitted by Law.
(33) "Tax Benefit" shall mean a tax abatement, exemption, or waiver granted by the City to a Sponsor in connection with a Project. For the purposes of the preceding sentence, "tax" shall mean City real property taxes and assessments, City water and sewer charges, City and state taxes on the transfer of real property, recording taxes and fees, and any other tax or governmental imposition which a Sponsor may be required to pay in connection with a Project.
(b) Purpose of Rules. These Rules set forth the procedures for Site and Sponsor selection for Projects.
(c) Purpose of Projects. The Agency shall have the power and authority to initiate and undertake Projects for any public purpose, provided that all Agency Activities to be undertaken in connection with any Project are authorized by applicable Laws. Such public purposes shall include, but shall not be limited to, (i) increasing the supply of available rental and ownership housing which is affordable to persons of low, moderate, and/or middle income; (ii) increasing the supply of available rental and ownership housing which is suitable for and affordable to persons with special needs; (iii) encouraging the construction of new residential housing; (iv) facilitating the conversion of existing non-residential structures into residential housing; (v) promoting the preservation and rehabilitation of existing residential housing; (vi) eliminating conditions in existing residential housing which are unsafe or detrimental to health; (vii) facilitating both residential and non-residential uses in accordance with the provisions of the applicable urban renewal plans or urban development action area projects; (viii) facilitating non-residential uses; (ix) mitigating potential adverse environmental impacts of the development of residential housing and the redevelopment of urban renewal areas; (x) encouraging the investment of private capital for such purposes; (xi) maximizing City revenue; and (xii) minimizing City expenses.
(d) General Authority.
(1) General. The Agency may make Dispositions and provide Assistance to Sponsors for the purposes and in accordance with the procedures described in these Rules.
(2) Site Selection. The Agency may from time to time select Sites for Projects. The provisions regarding the selection of Sites are contained in 28 RCNY § 33-02.
(3) Sponsor Selection. The Agency may from time to time select Sponsors for Projects through any competitive or non-competitive process authorized by applicable Law which the Agency deems to be in the best interest of the City, including, but not limited to, direct negotiation, RFQ, RFP, competitive bidding, public bidding, auction, and selection by entities other than the Agency. For Projects involving privately owned Sites, notwithstanding any provision of these Rules to the contrary, the Sponsor and Site may be selected together by any such process and the Agency may consider the characteristics of the Site in addition to any other selection criteria. The provisions regarding the selection of Sponsors are contained in 28 RCNY § 33-03.
(4) Negotiations. The Agency may commence, conduct, and/or terminate negotiations with Applicants and/or Selected Applicants. During such negotiations, subject to approval of the Governing Body, where such approval is required by Law, the City may lease or net lease Sites to Applicants and/or Selected Applicants which have complied with all terms of the applicable selection process, applicable Laws, these Rules, and any and all agreements pertaining thereto. The provisions regarding negotiations with Applicants and Selected Applicants are contained in 28 RCNY § 33-04.
(5) Disposition. Subject to approval of the Governing Body, the City may convey Sites to Sponsors which have complied with all terms of the applicable selection process, applicable Laws, these Rules, and any and all agreements pertaining thereto. The provisions regarding Disposition of Sites are contained in 28 RCNY § 33-05.
(6) Assistance. The City may provide Assistance to Sponsors in order to facilitate Project Activities in such amounts and types as are determined by the Agency to be necessary or desirable. The provisions regarding Assistance are contained in 28 RCNY § 33-06.
(7) Project Operation. The Agency may require Sponsors to operate Sites in accordance with regulatory agreements entered into with the Agency. The provisions regarding Project operation are contained in 28 RCNY § 33-07.
(e) Programs. Where two or more Projects share the same funding source, Sponsor, grantee, or borrower, or otherwise provide for similar treatment of multiple Sites pursuant to these Rules, the Agency may deem such Projects to constitute a Program. The Agency may repeat a Project or create a Program where the Agency, for any reason, deems it necessary or desirable to do so. Such reasons may include, but shall not be limited to, the continued availability of a particular source of funding, the continued need for a particular type of housing, and the continued interest of any non-City persons or entities, whether private, quasi-public, or public, in performing such type of Projects. The Agency shall determine whether any Project is in a Program and whether any set of Projects constitutes a Program.
(f) Additional Rules. The Agency may from time to time promulgate additional rules for certain Programs, which rules shall preempt and supersede these Rules to the extent of any conflict, inconsistency, or ambiguity. Such rules shall be promulgated whenever the Agency determines, for any good and sufficient reason, that additional rules are necessary or desirable in order to facilitate the orderly progress of Agency initiatives to achieve the City Housing Goals. Such reasons may include, but shall not be limited to, the number of Projects in, or the type or number of programmatic requirements of, any Program for which the Agency determines that additional rules are necessary or desirable. The Agency shall determine which rules, if any, apply to any Program or Project.
(g) Source of Funds. The Agency may fund any Agency Activity deemed by the Agency to be necessary or desirable in connection with a Project with any available source of funds which is eligible for such purpose under applicable Law. Each Project must comply with all statutory and regulatory requirements with respect to the use of such funds, which requirements shall supersede Project requirements in the event of any conflict or inconsistency.
(a) General. This Article sets forth procedures for the selection of Sites for Projects. Such determinations shall be made by the Agency, in accordance with the procedures set forth herein, for the purposes of ascertaining whether a Site meets the requirements of a Project and applicable Laws, achieving the City Housing Goals, and protecting and furthering the best interests of the City.
(b) Determination of Appropriateness. The Agency may determine to place any Site into any Project where the Agency determines, for any reason, that such Project is an appropriate treatment for such Site. Such reasons, may include, but shall not be limited to, the following:
(1) The physical conditions or economic characteristics of the Site make it appropriate for the treatment afforded by the Project.
(2) The Site requires more private investment and/or less Assistance than would be provided under any other appropriate Project or Program, and the Project permits the treatment of the Site with such level of private investment or Assistance.
(3) The Site requires less private investment and/or more Assistance than would be provided under any other appropriate Project or Program, and the Project permits the treatment of the Site with such level of private investment or Assistance.
(4) The Site possesses unique features which make the treatment afforded by the Project necessary or desirable.
(5) The Project addresses a housing need which has not been and is not likely to be fully alleviated by the operations of the private housing market, and the Site is appropriate for inclusion in the Project.
(6) The Project would return the Site to private ownership and/or private management.
(7) The interest of one or more private parties in the Site creates special opportunities to develop the Site in unique and beneficial ways, including, but not limited to, ways which provide housing for persons with special needs, maximize City revenue, permit development with less Assistance than would be required if the Site were in another Project or Program, permit production of a greater number of units or a greater proportion of lower income units than would be produced if the Site were in another Project or Program, and/or permit development of more ancillary open space or other public facilities.
(8) The Site is not City-owned and the owner, or an authorized representative of the owner, has applied to the Agency, pursuant to any process authorized by these Rules, other rules of the Agency, or applicable Law, to have the Site included in a Project which would serve the City Housing Goals.
(9) The inclusion of the Site in the Project would serve any of the City Housing Goals.
(c) Selection. Upon the selection of a Site for a Project, the Agency may, but shall not be required to, prepare a written statement identifying the Site and the Project. Such Site selection document may be in any form which the Agency deems appropriate, including, but not limited to, a letter or memorandum placed in the file for the Project, an Authorization Letter, entry into a book, file, database, or other record of Agency Site Selections, any document prepared in order to comply with applicable Laws (including, but not limited to, the Uniform Land Use Review Procedure, the Urban Renewal Law, and the Urban Development Action Area Act), a document issued as part of any process to select a Sponsor (including, but not limited to, any RFQ, RFP, or bid solicitation), or a Loan commitment letter. Failure to prepare a Site selection document shall not invalidate the selection of a Site for a Project.
(d) Revocation. The Agency may revoke a Site selection where the Agency deems such revocation to be necessary or desirable. Upon the revocation of a Site selection, the Agency may, but shall not be required to, prepare a written statement identifying the Site and the Project from which the Site has been removed. Such Site selection revocation document, if any, may be in any of the forms permitted for a Site selection document. Failure to prepare a Site selection revocation document writing shall not invalidate the revocation, and any subsequent selection of a Site for a different Project shall serve to automatically terminate the prior Site selection. After revocation of any Site selection, the Agency may select the Site for any other Project in accordance with these Rules.
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