§ 53-12 Cure Agreement.
RCNY § 53-12
(1)Where the Department has denied an application for a Certification of No Harassment for a Pilot Program Building, or, where an owner has, in lieu of seeking a Certification of No Harassment which is otherwise required, elected instead to seek a certification of compliance with the cure provisions described in subdivision e of § 27-2093.1 of the Administrative Code, such Owner may apply to the Department to cure the record of Harassment or satisfy the requirement for the Certification of No Harassment by entering into a cure agreement with the Department.
(2)Such cure agreement shall be a restrictive declaration and a regulatory agreement in such form as provided by the Department, and shall require compliance with such terms as shall be required by the Department.
(3)The restrictions, covenants, and provisions of such cure agreement shall run with the land and bind the Owner and all other parties in interest and their successors and assigns to the applicable property with Low Income Housing, and shall be perpetual in duration.
(4)Such cure agreement shall be recorded by the Owner in the office of the city register or the Richmond county clerk, and indexed against each tax lot with Low Income Housing within the zoning lot.
(5)The requirements of such cure agreement shall include compliance with the applicable Inclusionary Housing Guidelines and shall also include, but not be limited to that: (a) The Owner shall construct floor area of Low Income Housing, either within the Pilot Program Building, in a new building on the same site as the Pilot Program Building, or in such same community district, of no less than the greater of: (i) 25 percent of the total residential floor area of such Pilot Program Building undergoing Covered Categories of Work in which harassment has occurred or for which the Owner has elected to seek a certification of compliance with the cure provisions of subdivision e of § 27-2093.1 of the Administrative Code, or (ii) 20 percent of the total floor area of any new or Pilot Program Building undergoing Covered Categories of Work on the lot containing the Pilot Program Building subject to the cure agreement; (b) The Owner shall contract with an administering agent, which shall be an organization qualified by the Department to market and manage the Low Income Housing units and monitor compliance with the cure agreement; (c) Lawful tenants of such Pilot Program Building during the Inquiry Period shall have priority in the allocation of such Low Income Housing units constructed by the Owner within the Pilot Program Building or in a new building at the same site as the Pilot Program Building if they otherwise qualify for such units; (d) No construction of such required floor area of Low Income Housing units shall be used by the Owner to satisfy an eligibility requirement of any real property tax abatement or exemption program, or of a floor area ratio increase pursuant to § 23-90 and § 23-154, inclusive, of the Zoning Resolution, for which the Owner otherwise may be eligible to apply, or to apply for a hardship waiver from any existing code or Zoning Resolution requirement, and such required floor area shall be in addition to and not in substitution for floor area of Low Income Housing that may be used by the owner to satisfy such an eligibility requirement; (e) No city, state or federal subsidy shall be used for the construction of Low Income Housing units required pursuant to subdivision e of § 27-2093.1 of the Administrative Code or these rules; and (f) The initial rents charged by the Owner for the Low Income units shall not exceed an average of 50 percent of the area median income, adjusted for family size, at the time that such household initially occupies the dwelling unit, provided that with respect to Low Income Housing Units provided pursuant to a cure agreement in accordance with § 27-2093.1 of the Administrative Code, one-third of such Low Income Housing units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 40 percent of the area median income, one-third of such units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 50 percent of the area median income, and one-third of such units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 60 percent of the area median income.
(g)If the Owner violates any term, covenant, or provision of the cure agreement, or if any representation made by the Owner is determined by the Department to be false or misleading, then the Department may declare a default under the cure agreement, and take such enforcement action as specified in such agreement or under law. (Added City Record 9/7/2018, eff. 10/7/2018)
