Repeal of Redevelopment Company Rules
Proposed Rules: Closed to Comments
Statement of Basis and Purpose of Proposed Rule
Article V of the Private Housing Finance Law (“Redevelopment Companies Law”) was a precursor to the Mitchell-Lama program. It authorizes the City to sell property and grant partial tax exemptions to "redevelopment companies" that develop housing projects with private financing. A sponsor's plan and project for area redevelopment requires approval by the City Planning Commission and the City Council. The City Council also approves a tax exemption for such developments and a contract with each redevelopment company regulating rents.
HPD is proposing to repeal the Redevelopment Companies Rules. The Redevelopment Companies Law provides sufficient guidance and, therefore, the rules are unnecessary.
Working with the City’s rulemaking agencies, the Law Department, and the Office of Management and Budget, the Office of Operations conducted a retrospective rules review of the City’s existing rules, identifying those rules that will be repealed or modified to reduce regulatory burdens, increase equity, support small businesses, and simplify and update content to help support public understanding and compliance. This proposed rule repeal was identified through this initiative.
HPD’s authority for these rules is found in sections 1043 and 1802 of the New York City Charter and section 117 of the Private Housing Finance Law.