Comptroller Stringer’s letter to ESD spotlights a 100% increase in the assessed value of the building in just 3 years, leading to a $5.2 million tax bill on residents
In addition to the high tax burden, ESD imposed a ground lease payment, commercial rent restrictions and a large mortgage, which places undue financial pressure on building residents including those that are low and moderate income, and seniors
Letter calls on ESD to immediately find a workable financial solution that would save the development’s residents from being forced to sell their homes
(New York, NY) — New York City Comptroller Scott M. Stringer sent a letter to the Empire State Development Corporation (ESD) this week calling for immediate financial relief for the low and moderate income residents of the CityLights housing development – an affordable co-op in Long Island City – who are facing a $5.2 million tax bill that could lead to the displacement of residents, particularly retirees living in the building. But, the resident’s monthly maintenance bills are being driven up by more than just the tax bill. ESD also executed a high building wide mortgage at the time of construction completion, restricted the rents that CityLights can charge on their commercial spaces, and is charging CityLights a ground lease payment of $500,000 per year – compared to a $1 for most of the buildings built subsequently. Comptroller Stringer’s letter calls on ESD to find a workable long-term financial solution to ease the massive maintenance bills that CityLights residents face each month, which will prevent seniors and working New Yorkers from losing their homes.
“I remember growing up in Washington Heights during a time when more people were leaving the City than were moving in – but many New Yorkers stayed and created communities just like CityLights residents did over 20 years ago. But the residents of CityLights have been blindsided by a massive new tax bill, which threatens to displace working class New Yorkers and sweep away their contributions. It’s wrong on every level,” said New York City Comptroller Scott M. Stringer. “CityLights residents were sold the promise of affordable homeownership – a community to place their families and put down roots. But these buildings were set up to fail. If we want an affordable New York for all New Yorkers, we can prove it, by standing up for CityLights residents and preventing these crushing monthly bills.”
Comptroller Stringer’s letter calls on ESD to:
Amend the CityLights’s ground lease to be consistent with other developments built by the State agency as part of the Queens West Development Corporation (QWDC), most of which pay only $1 per year;
Correct ESD’s mistake of putting a large mortgage on the building, which drives up the monthly maintenance cost, in the form of grants, refinancing, or other assistance opportunities;
Because CityLights has committed the majority of its retail space to PS 78 at a cost that’s half the average rent – a fraction of the market rate value – ESD should find a means to offset the lower rent through either a grant or other means, which recognizes the public benefit of the school that has helped mitigate the potential impacts of developing other projects in the area by ensuring enough school capacity.
Comptroller Stringer has been outspoken about the need for providing tax relief for residents of CityLights. In January, the Comptroller sent a letter to the Mayor’s Office and joined residents at a rally in Long Island City’s Gantry Park urging the City to implement a solution that would prevent the displacement of hundreds of families from their homes by demanding relief for the building’s over-taxed middle-class residents. The rally took place following the expiration of a Payment-in-Lieu-of-Taxes (PILOT) agreement and a new assessment by the New York City Department of Finance (DOF) that nearly doubled the building’s assessment from $51.7 million to $101.6 million in Fiscal Year 2019 (FY19).
To read Comptroller Stringer’s letter to Empire State Development Corporation, click here.
To read Comptroller Stringer’s letter to the Mayor’s Office, click here.