Developers Beware: Land Use and Contribution Limits in New York City

The third phase of NYC’s “doing business” contribution limits is scheduled to go into effect before the end of the year.  Indeed, these final components of the “doing business database” must be certified by December 1, 2008; otherwise, the DB limits will not triggered by these business transactions during the 2009 citywide elections. These additional business dealings are:

• Acquisitions and dispositions of real property with the City of New York
• Acquisitions of office space by the City.
• Applications under the Uniform Land Use Review Procedure (ULURP), including the designated developer or sponsor of the project
• Applications for changes in the zoning resolution or special permits.

There are several exclusions:

• Real property transactions conducted by public auction or competitive sealed bid
• Watershed Land Program acquisitions
• Owner-occupants of 1 – 3 family homes
• Housing assistance payment contracts (Section 8 rent subsidies)
• Other categories of actions, transactions and agreements providing for affordable housing (to be set forth in Department of Housing Preservation and Development rules)
• Non-profit neighborhood associations of local residents or homeowners, which are applicants for zoning district designations or zoning amendments.

For a lease in which the City is the proposed lessee, the DB limits apply to contributions from the date the City agency proposing the acquisition files its application with the Department of City Planning or the date City Planning certifies the application is complete and ready to proceed through ULURP.  The DB limits continue until one year after the commencement of the lease term or any renewal. When the City is disposing of a real property interest, the DB limits apply from the date of the submission of a proposal, through the term of any agreement, and one year after. When an application is made under ULURP, or for a zoning amendment or special permit, the DB limits commence on the date of certification of the application.  The DB limits continue until 120 days after the City Council files its action with the Mayor (or 20 days after the filing of a City Planning Commission decision with the Council, for which the Council takes no action). Next installment:  Compliance and Enforcement