Title
AN ORDINANCE AUTHORIZING FIRST AMENDMENT TO ORIGINAL TAX ABATEMENT GRANTED TO CATHEDRAL PARK ASSOCIATES, LP UNDER THE LIMITED DIVIDEND LAW TO EXTEND THE TERM OF THE FINANCIAL AGREEMENT UNTIL AUGUST 31, 2043 TO COINCIDE WITH THE EXPIRATION DATE OF THE HOUSING ASSISTANCE PAYMENT RENEWAL CONTRACT FOR AN AFFORDABLE HOUSING PROJECT LOCATED AT 147-153 CLIFTON AVENUE AND 88-92 MT PROSPECT AVENUE, AND DESIGNATED AS BLOCK 491, LOT 54 ON THE OFFICIAL TAX MAP OF THE CITY OF NEWARK.
body
WHEREAS, on September 16, 1981, the Municipal Council of the City of Newark (the "Municipal Council") adopted Resolution 7RB-k, granting a long-term tax abatement to Cathedral Park Associates, LP pursuant to the Limited Dividend Non-Profit Housing Corporations or Associations Law, N.J.S.A. 55:16-1 et seq., (the "Financial Agreement") for the construction of a forty-eight (48) unit affordable housing project on the located at 147-153 Clifton Avenue and 88-92 Mt Prospect Avenue, and designated as Block 491, Lot 54 on the official tax map of the City of Newark (collectively, the "Property"); and
WHEREAS, the City and Cathedral Park Associates, LP subsequently executed a financial agreement governing the Project (the "Original Financial Agreement"); and
WHEREAS, the Limited Dividend Law was repealed in 1992 and was replaced by the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1 et seq. (the "LTTE Law"), but the LTTE Law explicitly saved from repeal and ratified all existing tax abatements granted under the Limited Dividend Law; and
WHEREAS, the Project is 100% affordable and is supported by project-based Section 8 housing assistance payments from the United States Department of Housing and Urban Development ("HUD"); and
WHEREAS, as set forth in Sections 4 and 9 of the Financial Agreement, the Project shall be exempt from taxation for a period equal to the lesser of: (i) fifty (50) years from the completion of the Project, or (ii) the term of the first mortgage t...
Click here for full text