Gabriella Olivieri Publications Portfolio Annual Report - 2011 | Page 38

LEG A L DIVISIONS Defeating a Landlord’s Attempt to Void Participation in an Affordable Housing Program The Division overcame a landlord’s bid to rescind its participation in the City’s J-51 tax abatement program. The program is an important component of affordable housing policy, in which owners abiding by rent stabilization laws receive certain tax incentives. London Terrace, the owner of a residential housing complex in Manhattan, had begun charging market rate for some units while still in the J-51 program. London Terrace argued that it should be able to exit the program upon reimbursing its tax credits, similar to rescinding a contract. The City argued that the program is not a contract, and the Court agreed. PHOTO: 1 BOWLING GREEN, MANHATTAN Defending a Parking Surtax Exemption for Certain Manhattan Residents Division attorneys successfully defended a federal class action challenging an exemption to the City’s parking surtax, which only certain Manhattan residents receive. The City moved to dismiss the plaintiffs’ complaint on various grounds. Relying on a U.S. Supreme Court decision in Levin v. Commerce Energy, both the District Court and Second Circuit found for the City, holding that cases such as these should not be heard by federal courts in accordance with established comity principles. TAX & BANKRUPTCY LITIGATION CHIEF R ita D. Dumain DEPUTY Lisa Bova-Hiatt DEPUTY Vincent D’Orazio The Tax & Bankruptcy Litigation Division plays a vital role in protecting the City’s fiscal health by defending court challenges to real property tax assessments and advancing initiatives to modernize the City’s infrastructure and enhance quality of life for City residents. The Division actively acquires property for a variety of projects, such as creating parks, constructing libraries, and building affordable housing. It also litigates various tax issues and matters related to property acquisition and defends the City’s interests in bankruptcy proceedings. 35 Defending the Tax Commission’s Authority on a Fee to Review Property Tax Assessments Division attorneys prevailed in a challenge to the Tax Commission’s authority to implement a rule setting a $175 fee for an administrative review of applications concerning properties with an assessed value of $2 million or more. Four Queens property owners claimed that the Tax Commission lacked authority to adopt the fee rules and that the rules are unconstitutional. The Court rejected the arguments and recognized the City’s ability to assess fees, provided the fees charged are reasonably related to a regulatory program’s accomplishments. Enforcing City Billboard Regulations in Bankruptcy Court The Division convinced a Bankruptcy Court to deny a preliminary injunction against the City’s enforcement of billboard regulations. The injunction was sought by a Chapter 11 debtor, Contest Promotions, that rents space to post billboards on building exteriors. Contest Promotions is involved in a legal dispute with the Department of Buildings (DOB) over whether its billboards comport with City regulations. The company ?led for Chapter 11 protection and asserted that, under the Bankruptcy Code, it is thus entitled to an automatic stay from enforcement by the DOB and the Environmental Control Board (ECB). Division attorneys argued that the DOB and ECB activities were exempted from the automatic stay based on precedent establishing that the City’s regulation of signs is designed to protect substantial public interests in promoting traf?c safety and preserving aesthetics. PR ACTICE SPOTLIGHT Advancing Signi?cant Development Projects to Shape the City’s Future Division attorneys are engaged in matters related to the City’s acquisition, through eminent domain, of property to enable the Number 7 subway line extension. The Division is also involved in the acquisition of land for the Staten Island Bluebelt, an initiative preserving open spaces and wildlife habitats, while naturally improving drainage and ?ltering storm water. In Queens, the Division is defending the City’s right to acquire property for the Willets Point Redevelopment Plan to revitalize the largely industrial neighborhood. 36