PRESENTATION
Rationale for seeking Article 11 tax exemption
0:13:19
·
79 sec
The presenter explains the reasons for seeking an Article 11 tax exemption for the Marcus Garvey development project and outlines the potential benefits of this exemption.
- Helps offset increasing operating expenses such as insurance and payroll
- Allows for a larger permanent first mortgage, reducing the need for HPD resources
- Provides flexibility in structuring different financing options
- Enables focus on creating and maintaining high-quality housing with amenities and a safe living environment for residents
Max Zarin
0:13:19
We're seeking the Article 11 exemption for this project for a number of reasons as we've continued to see other operating expenses increase drastically in recent years such as insurance and payroll Being able to limit the property taxes will be a a huge benefit to the operations of the property on an ongoing basis.
0:13:39
Doing so will also allow us to size a larger permanent first mortgage.
0:13:45
Limiting the need for valuable HPD resources.
0:13:49
And if we're able to secure the article 11 exemption, it also gives us a little bit more flexibility with HPD to structure different financings, whether we pursue financing, using tax exempt bonds, and 4% tax credits, 4 percent pursuing structure that uses only Citi's subsidy.
0:14:09
And last, at a high level, whether it's the construction budget or the ongoing operations budget, we do strongly believe that securing this exemption will allow us to focus our resources on the things that are most important to our residents, creating and maintaining high quality housing, with high quality amenities and a safe and secure living environment for our residents.
0:14:33
I thank the subcommittee very much for their time today.
0:14:35
Happy to answer any questions that the members may have.
