Preview
FILED: NEW YORK COUNTY CLERK 04/12/2023 04:36 PM INDEX NO. 153346/2023
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 04/12/2023
AFFIDAVIT
STATE OF NEW YORK )
: ss.:
COUNTY OF QUEENS )
JONATHAN GIAHN, being duly sworn, hereby deposes and says:
1. I am the Managing Member of 101-01 One Group, LLC, the owner
39*
of the Building known as and located at 101-01 Avenue, Queens, New York, and
the Petitioner in an Article 78 proceeding commenced against the New York City
Department of Housing Preservation and Development ("HPD") and New York City
Department of Finance ("DOF"). As such, I am familiar with the facts and
circumstances set forth herein.
2. On December 14, 2022, I was notified by 101-01 One Group, LLC's
lender, New York Community Bank, that $358,752.24 in property taxes were charged to
the Building and due by January 1, 2023. The lender requested that I wire funds to
deficit"
cover this "escrow within five calendar days.
3. After a conversation with a representative from the lender on
Friday, December 16, 2022, I deciphered that the 421-a tax benefits issued to the
Building had been revoked retroactive to 2017. I was anxiety-ridden, could barely eat
and had trouble sleeping that weekend.
4. On December 19, 2022, I went to 100 Gold Street in Manhattan to
try to speak to someone about the issue. I was not allowed past security because I did
not have an appointment. Therefore, I emailed a contact at HPD from the lobby of 100
Gold Street asking if I could speak with someone about the issue.
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5. Via email that day, HPD confirmed that the 421-a tax benefits
issued to the Building had been revoked in July 2022. Prior to December 19, 2022,
however, I had not received any notice of the impending or actual revocation of
the benefits from HPD.
6. I was subsequently advised by counsel that the Rules of the City of
New York require that HPD sends Notices to the revocation of 421-
("RCNY") pertaining
a tax benefits to five different addresses associated with the affected property owner
and management.
7. The addresses listed in the RCNY and corresponding addresses for
the Petitioner are included in the chart below. Notably, all of the addresses where HPD
was required to send the notices are addresses where I personally check and receive
mail on a regular basis, as further explained below.
Notice Required per RCNY Petitioner's Corresponding Address
(i) the address to which DOF delivers real 101-01 One Group, LLC
property tax bills for the Noticed Property 4056 Junction Blvd.
Corona, NY 11368-5837
to"
(ii) the last address indicated in "Return Address:
documents recorded in the office of the 101-01 One Group, LLC
41"
City Register for any Taxpayer holding 95-42 Avenue
fee title to the Noticed Property Corona, NY 11368
"Grantee/Buyer"
Address:
101-01 One Group, LLC
39*
101-01 Avenue
Corona, NY 11368
(iii) the last address indicated in Mortgagor/Borrower Address:
documents recorded in the office of the Joseph Giahn
City Register for any Taxpayer holding a 40-56 Junction Boulevard
mortgage on the Noticed Property Corona, NY 11368
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FILED: NEW YORK COUNTY CLERK 04/12/2023 04:36 PM INDEX NO. 153346/2023
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 04/12/2023
(iv) the address of any owner registered 101-01 One Group LLC
39*
for the Noticed Property in accordance 101-01 Avenue
with Article two of subchapter four of Corona, NY 11366
Chapter two of Title twenty-seven of the
Administrative Code
(v) the address of any agent registered Rising Real Estate Group LLC
for 41S
the Noticed Property in accordance 95-42 Avenue, 2FL
with Article two of subchapter four of Elmhurst, NY 11373
Chapter two of Title twenty-seven of the
Administrative Code
8. 4056 Junction Blvd. and 95-42 41st Avenue are buildings owned by
entities affiliated with 101-01 One Group, LLC. Ownership receives utility and other bills
at these addresses and checks the mail at these buildings several times a week. Both
buildings are across the street from my office where I am physically present on a near
daily basis, and I regularly check the mail at these buildings myself.
39*
9. I also check mail regularly at 101-01 Avenue, the Building
address, although not as frequently as I check the mail at the above two addresses. I
39*
generally check the mail at 101-01 Avenue about once a week, when I visit the
Building to address repair requests or collect rent.
10. If HPD had mailed Notices to any of the above addresses, I should
have received those Notices. However, I did not receive any Notices pertaining to the
revocation of the 421-a tax benefits addressed to either 101-01 One Group, LLC, Rising
Real Estate Group LLC or to me, in my capacity as the managing member of the owner
and registered managing agent for the Building.
11. Notably, I was always aware of the DHCR registration requirements
applicable to the Building and had delegated the filing of the annual registrations to an
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assistant property manager employed Rising Real Estate Group LLC, the registered
managing agent of the building. Upon learning that the 421-a tax benefits issued to the
Building were revoked based on the owner's failure to register units in the Building
I promptly logged on to Annual Rent Registration Online account to back-
annually, my
register the units. Once logged on to the account, I discovered that registration
information for the years 2017 through 2022 had been inputted into the system.
However, the person who inputted the information had, apparently, failed to click
"submit,"
in order to finalize the annual filings. I confirmed that the information inputted
was correct and promptly back-registered all units for all years on December 22, 2022.
12. It is also relevant to note that tenants in the Building were never
charged rents in excess of the legal regulated rents for each apartment, and renewal
and vacancy increases applied were at all times consistent with those permitted by the
Rent Guidelines Board and Rent Stabilization Law and Code, to the best of my
knowledge, information and belief.
13. This is not a situation where the owner was flouting its obligations
under the Rent Stabilization Law and Code with the goal of charging increased, illegal
rents. In fact, I am fully aware of the Petitioner's obligations pertaining to rent regulation
and the receipt of the 421-a tax benefits, and always sought and intended to comply
with those requirements.
14. As stated in my December 19, 2022 email to HPD, I was shocked
and distressed when I learned that the benefits had been revoked retroactively. The
Petitioner does not have the financial resources to repay the $358,752.24 charged back
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to the Building's property tax account, and it is quite possible that our lender will
foreclose on the Building if I am not able to resolve this issue.
15. If I had been notified that HPD intended to revoke the 421-a tax
benefits and/or that the Petitioner had the ability to propose a cure for any alleged
violation of the 421-a tax benefit program, I would have promptly responded to any
Notice received in an effort to prevent the revocation of the benefits.
16. However, since I did not receive any Notice of the intended
revocation from HPD or any other agency or entity, I was deprived of the opportunity to
do so.
17. All of the foregoing is true based on my personal knowledge,
information and belief.
JO HA GIAHN
Sworn to before me this
'
__ day of April 2023
Notary Public
State of New York
PATRICK J. SOCORRO
Sworn o e ore me Notary Public, State of New York
Reg. No. 01S06299639
Today
Qualified in Queens County
Commission Expires March 24, 20__7
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Preview
FILED: NEW YORK COUNTY CLERK 04/12/2023 04:36 PM INDEX NO. 153346/2023 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 04/12/2023 AFFIDAVIT STATE OF NEW YORK ) : ss.: COUNTY OF QUEENS ) JONATHAN GIAHN, being duly sworn, hereby deposes and says: 1. I am the Managing Member of 101-01 One Group, LLC, the owner 39* of the Building known as and located at 101-01 Avenue, Queens, New York, and the Petitioner in an Article 78 proceeding commenced against the New York City Department of Housing Preservation and Development ("HPD") and New York City Department of Finance ("DOF"). As such, I am familiar with the facts and circumstances set forth herein. 2. On December 14, 2022, I was notified by 101-01 One Group, LLC's lender, New York Community Bank, that $358,752.24 in property taxes were charged to the Building and due by January 1, 2023. The lender requested that I wire funds to deficit" cover this "escrow within five calendar days. 3. After a conversation with a representative from the lender on Friday, December 16, 2022, I deciphered that the 421-a tax benefits issued to the Building had been revoked retroactive to 2017. I was anxiety-ridden, could barely eat and had trouble sleeping that weekend. 4. On December 19, 2022, I went to 100 Gold Street in Manhattan to try to speak to someone about the issue. I was not allowed past security because I did not have an appointment. Therefore, I emailed a contact at HPD from the lobby of 100 Gold Street asking if I could speak with someone about the issue. 1 of 5 FILED: NEW YORK COUNTY CLERK 04/12/2023 04:36 PM INDEX NO. 153346/2023 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 04/12/2023 5. Via email that day, HPD confirmed that the 421-a tax benefits issued to the Building had been revoked in July 2022. Prior to December 19, 2022, however, I had not received any notice of the impending or actual revocation of the benefits from HPD. 6. I was subsequently advised by counsel that the Rules of the City of New York require that HPD sends Notices to the revocation of 421- ("RCNY") pertaining a tax benefits to five different addresses associated with the affected property owner and management. 7. The addresses listed in the RCNY and corresponding addresses for the Petitioner are included in the chart below. Notably, all of the addresses where HPD was required to send the notices are addresses where I personally check and receive mail on a regular basis, as further explained below. Notice Required per RCNY Petitioner's Corresponding Address (i) the address to which DOF delivers real 101-01 One Group, LLC property tax bills for the Noticed Property 4056 Junction Blvd. Corona, NY 11368-5837 to" (ii) the last address indicated in "Return Address: documents recorded in the office of the 101-01 One Group, LLC 41" City Register for any Taxpayer holding 95-42 Avenue fee title to the Noticed Property Corona, NY 11368 "Grantee/Buyer" Address: 101-01 One Group, LLC 39* 101-01 Avenue Corona, NY 11368 (iii) the last address indicated in Mortgagor/Borrower Address: documents recorded in the office of the Joseph Giahn City Register for any Taxpayer holding a 40-56 Junction Boulevard mortgage on the Noticed Property Corona, NY 11368 -2- 2 of 5 FILED: NEW YORK COUNTY CLERK 04/12/2023 04:36 PM INDEX NO. 153346/2023 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 04/12/2023 (iv) the address of any owner registered 101-01 One Group LLC 39* for the Noticed Property in accordance 101-01 Avenue with Article two of subchapter four of Corona, NY 11366 Chapter two of Title twenty-seven of the Administrative Code (v) the address of any agent registered Rising Real Estate Group LLC for 41S the Noticed Property in accordance 95-42 Avenue, 2FL with Article two of subchapter four of Elmhurst, NY 11373 Chapter two of Title twenty-seven of the Administrative Code 8. 4056 Junction Blvd. and 95-42 41st Avenue are buildings owned by entities affiliated with 101-01 One Group, LLC. Ownership receives utility and other bills at these addresses and checks the mail at these buildings several times a week. Both buildings are across the street from my office where I am physically present on a near daily basis, and I regularly check the mail at these buildings myself. 39* 9. I also check mail regularly at 101-01 Avenue, the Building address, although not as frequently as I check the mail at the above two addresses. I 39* generally check the mail at 101-01 Avenue about once a week, when I visit the Building to address repair requests or collect rent. 10. If HPD had mailed Notices to any of the above addresses, I should have received those Notices. However, I did not receive any Notices pertaining to the revocation of the 421-a tax benefits addressed to either 101-01 One Group, LLC, Rising Real Estate Group LLC or to me, in my capacity as the managing member of the owner and registered managing agent for the Building. 11. Notably, I was always aware of the DHCR registration requirements applicable to the Building and had delegated the filing of the annual registrations to an -3- 3 of 5 FILED: NEW YORK COUNTY CLERK 04/12/2023 04:36 PM INDEX NO. 153346/2023 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 04/12/2023 assistant property manager employed Rising Real Estate Group LLC, the registered managing agent of the building. Upon learning that the 421-a tax benefits issued to the Building were revoked based on the owner's failure to register units in the Building I promptly logged on to Annual Rent Registration Online account to back- annually, my register the units. Once logged on to the account, I discovered that registration information for the years 2017 through 2022 had been inputted into the system. However, the person who inputted the information had, apparently, failed to click "submit," in order to finalize the annual filings. I confirmed that the information inputted was correct and promptly back-registered all units for all years on December 22, 2022. 12. It is also relevant to note that tenants in the Building were never charged rents in excess of the legal regulated rents for each apartment, and renewal and vacancy increases applied were at all times consistent with those permitted by the Rent Guidelines Board and Rent Stabilization Law and Code, to the best of my knowledge, information and belief. 13. This is not a situation where the owner was flouting its obligations under the Rent Stabilization Law and Code with the goal of charging increased, illegal rents. In fact, I am fully aware of the Petitioner's obligations pertaining to rent regulation and the receipt of the 421-a tax benefits, and always sought and intended to comply with those requirements. 14. As stated in my December 19, 2022 email to HPD, I was shocked and distressed when I learned that the benefits had been revoked retroactively. The Petitioner does not have the financial resources to repay the $358,752.24 charged back -4- 4 of 5 FILED: NEW YORK COUNTY CLERK 04/12/2023 04:36 PM INDEX NO. 153346/2023 NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 04/12/2023 to the Building's property tax account, and it is quite possible that our lender will foreclose on the Building if I am not able to resolve this issue. 15. If I had been notified that HPD intended to revoke the 421-a tax benefits and/or that the Petitioner had the ability to propose a cure for any alleged violation of the 421-a tax benefit program, I would have promptly responded to any Notice received in an effort to prevent the revocation of the benefits. 16. However, since I did not receive any Notice of the intended revocation from HPD or any other agency or entity, I was deprived of the opportunity to do so. 17. All of the foregoing is true based on my personal knowledge, information and belief. JO HA GIAHN Sworn to before me this ' __ day of April 2023 Notary Public State of New York PATRICK J. SOCORRO Sworn o e ore me Notary Public, State of New York Reg. No. 01S06299639 Today Qualified in Queens County Commission Expires March 24, 20__7 -5- 5 of 5