Comment

The Real Estate Board of New York to The New York City Department of Housing Preservation and Development (HPD) regarding Revocation of Tax Benefits

Basha Gerhards

Senior Vice President of Planning

January 9, 2025

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association representing commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople, and other organizations and individuals active in New York City real estate. Thank you for the opportunity to submit comments on a proposed rule relating to the revocation of tax benefits for the Affordable Housing from Commercial Conversions Tax Incentive Benefits Program (RPTL Section 467-m) and Affordable Neighborhoods for New Yorkers Tax Incentive Benefits Program (RPTL Section 485-x).

Agency rule making is the critical outstanding step for the implementation of these programs that are designed to help address the city’s well documented housing shortage. We appreciate HPD’s efforts to issue these rules in a timely manner.

The proposed rule would be improved with clarifications to Section 39-02(b). In particular, the proposed rule should clarify that in the case of a ground lease arrangement the “respondent” be the ground lessee, which is the entity responsible for compliance with the program requirements. In addition, the rule should be modified to require HPD to provide any Initial Notice to all mortgagees of record, given the significant consequences of a revocation or penalty. As proposed, the inclusion of the phrase “as applicable” suggests that HPD could choose not to provide the Initial Notice to a mortgagee.

Finally, the proposed rule should require HPD to send notices by both electronic and hard copy rather than hard copy alone.

Thank you for your consideration of these points.