§ 1-01 Applicability.
This chapter shall govern loans to owners of multiple dwellings for rehabilitation or improvement pursuant to Article VIII of the Private Housing Finance Law.
§ 1-02 Definitions.
As used in this chapter, the following terms shall mean:
Agency. The term “Agency” shall mean the Department of Housing Preservation and Development of the City of New York or the office or department charged with the administration of the program.
Cost of acquisition. The term “cost of acquisition” shall mean the sum of
(1) cash payments made to acquire the property to be rehabilitated or improved and
(2) the net cost of satisfying the bona fide mortgages, liens (including real estate taxes due and owing to the City of New York) and other encumbrances on the property. The cost of acquisition shall in no event exceed the appraised value of the property prior to rehabilitation.
Development cost. The term “development cost” shall comprehend those items included under such heading in 28 RCNY § 1-05 (Allowable Rehabilitation and Improvement Cost).
Maximum mortgage amount. The term “maximum mortgage amount” shall mean the lesser of the following:
(1) An amount which, together with all prior liens permitted under 28 RCNY § 1-08(c), shall not exceed 90 percent of the value of the property after completion of rehabilitation;
(2) Where the property is owned free and clear and was acquired more than one year before submission of the loan application, development cost;
(3) Where the property was acquired more than one year before submission of the loan application and is encumbered, an amount necessary to satisfy such encumbrances (not to exceed the appraised value of the property prior to rehabilitation) plus development cost, provided that the loan shall not exceed two times the development cost;
(4) Where the property is to be acquired or was acquired less than one year before submission of the loan application, the cost of acquisition plus development cost. Persons or families of low income. The term “persons or families of low income” shall mean and include, pursuant to § 401 subdivision 3 of Article VIII of the Private Housing Finance Law, owner-occupants, persons and families in occupancy immediately prior to the date the loan is granted, and persons or families whose probable aggregate annual income during the period of occupancy does not exceed six times the rental (including the value or cost to them of heat, light, water and cooking fuel) of the apartment occupied by such persons or families except in the case of persons or families with three or more dependents, where such ratio shall not exceed seven to one, as this definition may be further expanded or limited by 28 RCNY § 1-12 (Management Supervisory Requirements).
Value of the property after completion of rehabilitation. The term “value of the property after completion of rehabilitation” shall mean appraised value prior to rehabilitation plus development cost, provided that the estimated revenues, including any subsidies, will be sufficient to support the estimated debt service and operating expenses.
§ 1-03 Eligibility and General Conditions.
(a) Applicants for loans and any prior lienors must covenant in writing, that so long as any part of such loan remains unpaid, or any tax exemption-tax abatement granted as a result of the installations, alterations, improvements or rehabilitation remains in effect, or for a period of at least ten years from the occupancy date, whichever is the later, the following conditions will govern:
(1) Apartments in such multiple dwelling shall be available solely for persons or families of low income as herein defined and as set forth below in subdivision (c) and in 28 RCNY § 1-12 (Management Supervisory Requirements).
(2) Apartments shall be available strictly in the order of priority set forth in 28 RCNY § 1-12(d).
(3) No charge or rental for apartments in such multiple dwelling shall be made or charged in excess of the maximum rentals prescribed by the Department of Housing Preservation and Development in accordance with the New York City Rent and Rehabilitation Law and the regulations promulgated thereunder.
(4) At all times during the life of the mortgage, the owner shall keep and maintain the rehabilitated building and all fixtures and articles of personal property now or hereafter used in the building in good condition, order and repair. Failure on the part of the owner to comply with this provision or make repairs when requested by the Agency shall result in the Agency, at its option, employing workmen to make such repairs at the owner’s expense or declaring the unpaid principal balance of the mortgage, with interest, immediately due and payable.
(5) Any persons owning, operating or managing such multiple dwelling, during or after rehabilitation, shall comply with the laws under which a loan is made and the Rules and Regulations now or hereafter adopted by the Agency, including Equal Opportunity Regulations.
(6) Any persons owning, operating or managing such multiple dwelling shall permit the authorized officers, employees, agents or inspectors of the Agency to enter in or upon the mortgaged premises and inspect same at all reasonable hours.
(7) The Agency, its officers, employees, agents or inspectors shall have full power to investigate and order the owner of said multiple dwelling or his agents to furnish such reports and information as it may require concerning the planning and construction of the installation, rehabilitation or improvement and the management of said multiple dwelling and shall also have full power to audit the books and records of such owner with respect to such matters. Owners of buildings rehabilitated under this program must submit reports as specified in 28 RCNY § 1-12 (Management Supervisory Requirements).
(8) The foregoing covenants shall run with the land.
(9) The applicant shall comply with applicable laws and regulations of the Department of Buildings, particularly § 26-235 of the Administrative Code referring to the sealing of vacant buildings, and make the buildings safe. It must be clearly understood that the filing of an application does not relieve the applicant of any liability for violation of such rules.
§ 1-04 Preliminary Site Submission.
The applicant, prior to the filing of a formal application, shall submit to the Agency, for preliminary consideration, a description of the proposed installation, alteration, improvement or rehabilitation which shall include the following information:
§ 1-05 Allowable Rehabilitation and Improvement Costs.
Loans may, at the discretion of the Agency, include the following items of cost incurred in the process of rehabilitation or improvement of multiple dwellings:
(1) Construction costs.
(2) Relocation stipends paid in accordance with applicable laws and regulations to tenants in occupancy of the building to be rehabilitated on the date of execution of the loan, or on such prior date as may be approved by the Agency, but not earlier than the date of filing the loan application.
(3) Architectural and legal fees and contractor’s overhead and profit as set forth in the schedules herein, and reasonable fees for accounting and appraisals.
(4) The cost of a “Payment and Performance Bond” or an amount in lieu thereof, as provided in 28 RCNY § 1-09 (Fee Requirements).
(5) Real estate taxes, assessments, frontage and meter charges and sewer rents accruing during the period of construction, commencing on the date of execution of the loan, where income is inadequate during the period of construction to pay such costs.
(6) Monthly interest on the amounts advanced under the loan during the period of construction.
(7) A supervision fee as provided in 28 RCNY § 1-09.
(8) Fees due and payable to an approved title company for the title insurance policy, recording of loan documents and mortgage recording taxes.
(9) Net cost, if any, related to the rehabilitation or improvement including, but not limited to, maintaining the property pending rehabilitation or improvement, or where actions are taken in aid of the rehabilitation or improvement prior to the closing, such net costs commencing no earlier than the date of the loan application as may be approved by the Agency. Net cost represents the extent to which, due to the rehabilitation or improvement, operating expenses for repairs, janitorial services, real estate taxes, utilities and management contract and expenses related to the rehabilitation or improvement including cost of initial renting as such are approved by the Agency exceeds the rents collected from the property.
(10) Premiums for insurance during construction.
(11) An amount approved by the Agency for contingencies, to provide for approved change orders and other approved increases in development cost.
(1) The sum of cash payments made to acquire the property to be rehabilitated or improved, and
(2) The net cost of satisfying bona fide mortgages, liens (including real estate taxes due and owing to the City of New York) and other encumbrances on the property. The cost of acquisition shall in no event exceed the appraised value of the property prior to rehabilitation. The sum of (1) and (2) shall not exceed the appraised value of the property prior to rehabilitation.
§ 1-06 Application Submission.
Applicants who receive approval after review of the preliminary site submission may obtain application forms from the Department of Housing Preservation and Development, Office of Rehabilitation Financing, 100 Gold Street, New York, N.Y. 10033. Application forms may also be obtained from the Department of Housing Preservation and Development, Office of Special Improvements, 2 Lafayette Street, New York, N.Y. 10007, when a loan is sought for less than $4,200 per unit. Submission must include the following:
§ 1-07 Insurance Requirements.
The applicant is required to submit to the Agency, for its approval in a form satisfactory to the Agency including but not limited to, an endorsement that fifteen days prior notice by registered mail, return receipt requested, of cancellation shall be given to the City of New York as the Agency shall prescribe, the following evidence of insurance prior to loan closing or commencement of construction or installation, whichever is first: (a) An original policy of fire insurance with extended coverage, for a term of three (3) years, in an amount at least equal to the amount of the loan. During the construction period coverage may be for less than the amount of the loan. Such policy must contain a loss payable clause, naming the City of New York, c/o Department of Housing Preservation and Development as mortgagee and further provide that “buildings in course of renovation with permission granted to complete and occupy” or a similar description to this effect. When the improvements are completed, such proviso is to be deleted from the policy.
(1) a guarantee of completion executed by the owner and where the owner is a corporation, by the principal stock- holder(s) or officer(s) thereof,
(2) a financial statement by each party executing such a guarantee, showing sufficient net assets and net worth to give reasonable certainty of financial ability to fulfill such commitment, and
(3) an amount equal to two (2%) percent of the construction cost as a non-refundable fee. The Agency may in its discretion, where satisfactory proof has been presented that after a diligent effort such bond cannot be obtained, accept in lieu thereof bonds furnished by subcontractors covering at least fifty (50%) percent of the construction cost, in which case the balance of the construction cost shall be covered by guarantees of completion and fees as described above. Following completion of the rehabilitation the owner shall maintain public liability insurance against claims for personal injury or death and for damage to property suffered by others, occurring upon, in or about the building in at least the sum of $100,000 – $300,000 bodily injury and $25,000 – $50,000 property damage in a form satisfactory to the Agency. Modification of those insurance requirements as to term, amount, or coverage may be made only with the approval of the Deputy Commissioner of the Agency charged with the administration of this pro- gram.
§ 1-08 Mortgage Conditions.
(a) No loan may exceed the maximum mortgage amount.
§ 1-09 Fee Requirements.
(a) Simultaneously with the filing of the application the applicant shall deliver to the Department of Housing Preservation and Development, Office of Rehabilitation Financing, a certified or cashier's check payable to the "Municipal Loan Program Application Account" in the sum of one hundred fifty dollars ($150), or such larger amount as may be required by the Agency to defray the costs of appraisal, credit reports and other expenses of processing the application. Applications filed with the Office of Special Improvements must be accompanied by such a check payable to "Small Loan Program Application Account" in the amount of one hundred dollars ($100) for such purposes.
§ 1-10 Construction Requirements: Payments.
(a) The plans, specifications, work write-ups or any description of work to be performed on a building subject to a loan under this program must be approved by the applicable office of the Agency prior to the commencement of any rehabilitation work or the closing of a mortgage loan for same. Such plans, specifications, work write-ups or other description of work must conform to the rehabilitation design standards of the Agency and must have been approved by the Department of Buildings, where applicable, or any other necessary governmental bureau or department.
(1) A certified list of the actual costs paid by the general contractor for materials and sub-contract work under the general contract.
(2) A certified list of the actual costs for non-construction items as were approved by the Agency.
(3) Proof that all labor and materials included in the rehabilitation have been paid for.
(4) An opinion certifying as to the accuracy of the owner’s costs statements by an independent certified public accountant.
§ 1-11 Labor Compliance Conditions.
Each mortgagor or contractor performing rehabilitation work with proceeds of a mortgage loan under this program must agree that the following standards and requirements will be strictly complied with:
§ 1-12 Management Supervisory Requirements.
(a) Neither an owner, nor anyone acting in his behalf, shall make a charge or demand a fee of any kind for processing a tenant's application.
(1) Probable aggregate annual income includes the annual income of the chief wage earner of the family, plus all other income of other members of the family in excess of $1,500 per annum for each such member. The income of a working minor who is a full-time student shall not be included in the computation of such annual income. Social Security or other pension plan payments received by females aged sixty-two years and over, or males sixty-five or over shall be excluded from computation of annual income up to a total maximum amount of $75 a month per individual.
(2) If at the time a loan is granted, the tenant’s probable annual income exceeds, or later increases so as to exceed, the prescribed income limits by more than fifty percent, he can be removed, with the Agency’s consent, from the building either the expiration of a two-(2) year period from the time the loan was granted.
(3) A tenant who moves into the building after the loan has been granted is subject to removal, with the Agency’s consent, when his yearly income exceeds the income limits by more than fifty percent.
(4) If, after the expiration of a two-year period from the time the loan was granted, more than twenty percent of the tenants in the building are over-income, the Agency may require the owner to remove over-income tenants.
(5) When the owner of the building occupies one of the units, he will be liable for rent surcharges the same as any tenant.
(6) Any person or family in occupancy whose income exceeds the maximum prescribed shall pay a rent surcharge in accordance with the following schedule:
| (Percentage of Maximum Permitted Income) | |
|---|---|
| Up to 100 percent | Basic rent only |
| In excess of 100 to 105 percent | Basic rent only |
| In excess of 105 to 110 percent | Basic rent plus 5 percent |
| In excess of 110 to 115 percent | Basic rent plus 10 percent |
| In excess of 115 to 120 percent | Basic rent plus 15 percent |
| In excess of 120 to 125 percent | Basic rent plus 20 percent |
| In excess of 125 to 130 percent | Basic rent plus 25 percent |
| In excess of 130 to 135 percent | Basic rent plus 30 percent |
| In excess of 135 to 140 percent | Basic rent plus 35 percent |
| In excess of 140 to 145 percent | Basic rent plus 40 percent |
| In excess of 145 to 150 percent | Basic rent plus 45 percent |
| In excess of 150 percent | Basic rent plus 50 percent |
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The owner of the dwelling must, subject to the approval of the Agency, take the action necessary to assure compliance with these provisions. Rental surcharges collected by the owner are paid to the Agency by check made out to the order of the City of New York and are used to reimburse the City for any tax exemption or abatement granted to the owner. If such benefits have not been granted, or if a sum equal to the amount of tax exemption and abatement granted has already been paid to the City, the surcharge shall be paid to the City in reduction of the loan in accordance with § 403 Subdivision 4 of Article VIII of the Private Housing Finance Law.
(1) Site occupants, that is, tenants occupying the building on the date of preliminary site submission or such later date approved by the Agency. “Building” in this paragraph shall include parcels subject to a consolidated loan. Where the Housing Authority has entered into a leasing program regarding the rehabilitated building, all tenants eligible for public housing must apply to the Housing Authority to recognize their priority.
(2) Tenants in occupancy shall have the first priority for internal transfer.
(3) If the site is within an urban renewal area or other redevelopment area, residents of sites acquired to effectuate the plans for such area; families in emergency need of housing, including families who are homeless, under warrant of eviction, living in buildings condemned as unfit for human habitation, or facing displacement from sites, buildings or dwelling units being cleared or vacated by governmental action. Within this class preference shall be given to residents of the same community planning district.
(4) Persons listed on the outside waiting list in strict chronological order.
(5) Others, subject to Agency approval. Notwithstanding the foregoing, where a federal subsidy is involved, federal standards of priority are controlling as to the affected apartments.
(1) The owner shall submit to the Agency, prior to renting, a Tenant Selection Review Form prescribed by the Agency.
(2) The owner shall fully complete such form and state whether he wishes to reject or accept the tenant applicant.
(3) The Agency shall render a decision on acceptability of the tenant within three working days of receipt of the Tenant Selection Review Form.
(4) The Agency reserves the right to approve or reject any tenant applicant and the owner agrees to be bound by its decision. It shall be the owner’s responsibility to contact the Agency to obtain such decision. If the applicant is rejected, the owner will follow the same procedure for any other applicant he considers.
(5) The owner shall accept referrals from whatever governmental source the Agency may designate. Where the Agency determines that an owner has rejected a tenant applicant, it reserves the right to order him to submit another applicant for that housing unit. The fact that an applicant is on welfare shall not be grounds for rejection. Failure to submit a Tenant Selection Review Form to the Agency, failure to obtain Agency approval prior to renting, or renting an apartment to a tenant applicant who has not been approved by the Agency, shall, at the option of the Agency, make the owner liable for the expense of finding a comparable housing unit for another applicant who is eligible under renting priorities set forth above and for any unusual cost in relocating such applicant in such comparable unit.
(1) Accountant’s certification.
(2) Financial statements (accrual basis).
(i) Balance Sheet, with such supporting schedules as required to be fully informative.
(ii) Statement of Operations, with detailed income and expense subclassifications. The annual statement shall also show separately the operating figures for the last six months of the fiscal year, January l-June 30.
(iii) Statement of Sources and Application of Funds (Change in net working capital). There shall also be filed such other financial reports or data as the Agency may require.
§ 1-13 Community Participation.
The Agency acknowledges the desirability of involving recognized and responsible community organizations in the planning and execution of rehabilitation efforts in their areas.
§ 1-14 Fee Schedules.
Allowable architectural and legal fees and contractor’s overhead and profit shall not exceed the fee schedules below:
(1) Any work beyond the scope of the contract requirements requested by the Department of Housing Preservation and Development in writing, shall be paid to the architect at the rate of two and a half times the reasonable salaries of technicians engaged in such changes.
(2) When the basic plans are repeated for identical buildings (within twenty percent of design is reused) then such fee shall be reduced by thirty-three and a third percent of original design fee.
(3) Architect shall supply all required services, plans, specifications and filing with the Department of Buildings.
(4) If buildings are contiguous, and only one set of mechanical drawings is used for all buildings, then the fee for each duplicate building shall be 50 percent of the original building construction cost.
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| Less than $100,000 | 10.0 |
|---|---|
| 100,000 | 9.7 |
| 200,000 | 9.4 |
| 300,000 | 9.1 |
| 400,000 | 8.8 |
| 500,000 | 8.5 |
| 600,000 | 8.2 |
| 700,000 | 7.9 |
| 800,000 | 7.6 |
| 900,000 | 7.3 |
| 1,000,000 | 7.0 |
| 1,500,000 | 5.5 |
| 2,000,000 | 4.0 |
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The amount allowed shall not be less than that for the preceding construction cost.
§ 1-15 Rent Adjustments.
(a) Upon completion of the rehabilitation or improvement, maximum rents shall be adjusted pursuant to § 33.9 of the Rent and Eviction Regulations and the rules and regulations adopted pursuant to those provisions.
§ 1-16 Failure to Comply with Regulations.
Upon failure of an applicant, owner or mortgagor to comply with this chapter, said applicant, owner or mortgagor may be disqualified by the Agency from applying for a loan under this program for up to three years following the date of any failure.
§ 1-17 Waiver.
The Agency may waive any of this chapter where the nature of the installation, alteration, improvement or rehabilitation or other circumstances warrant such exception. Any waiver to be effective requires the approval of the Commissioner or the Municipal Loan Committee.
§ 2-01 General Provisions.
(a) Purpose. This chapter (and any applicable regulations promulgated by the governmental authority providing funds for the rehabilitation or improvement) shall govern the making of loans for rehabilitation and improvement pursuant to Article VIII-A of the Private Housing Finance Law of the State of New York.
Administrative Code. “Administrative Code” shall mean the Administrative Code of the City of New York.
City. “City” shall mean the City of New York.
Commissioner. “Commissioner” shall mean the Commissioner (or Acting Commissioner) of the Department or the chief executive officer (or acting chief executive officer) of any successor to the Department.
Department or Dept. “Department” or “Dept.” shall mean the Department of Housing Preservation and Development of the City or any successor thereto.
Dwelling unit. “Dwelling unit” shall mean any residential accommodation in a multiple dwelling.
Housing Maintenance Code. “Housing Maintenance Code” shall mean the Housing Maintenance Code of the City constituting Chapter 2 of Title 27 of the Administrative Code.
Multiple Dwelling Law. “Multiple Dwelling Law” shall mean the Multiple Dwelling Law of the State of New York.
Multiple dwelling or building. “Multiple dwelling” or “building” shall mean an existing dwelling within the City which is rented or leased to be occupied, or is occupied, as the residence of three or more families living independently of each other, and for which a loan application is made under the program.
Occupancy by persons or families of low income. “Occupancy by persons or families of low income” shall mean occupancy by persons or families paying rentals or carrying charges not in excess of the average rentals or carrying charges prevailing in local projects of municipally-aided limited-profit housing companies aided under Article II of the Private Housing Finance Law of the State of New York, the occupancy of which commenced on or after May 18, 1970. The rental or carrying charge for any such projects assisted under § 236 of the United States Housing Act of 1937 shall mean the fair market rental or carrying charge determined from time to time in accordance with the provisions of the agreement with the housing company pursuant to said section. Notwithstanding the foregoing, “occupancy by persons or families of low income” in single room occupancy housing shall mean occupancy by persons paying rentals not in excess of seventy-five (75) percent of the Moderate Rehabilitation Fair Market Rents for 0-bedroom units. “Moderate Rehabilitation Fair Market Rent” shall mean one hundred twenty (120) percent of the amount, less tenant utility allowance where applicable, which is indicated for 0-bedroom units on the then current Existing Housing Fair Market Rent Schedule for the § 8 Existing Housing Assistance Payments Program under the administration of the Department. Where the Department determines on the basis of a market survey or other acceptable and documented evidence that the market rents for dwelling units in the immediate neighborhood where the building is located exceeds the applicable Existing Housing Fair Market Rents, the Department may increase said rents by an amount not to exceed ten (10%) percent.
Owner. “Owner” shall mean an individual, partnership, corporation or other entity, including a non-profit company, a mutual company, or a housing development fund company, which holds record title in fee simple to the premises or is the lessee thereof under a lease having an unexpired term of not less than fifteen years.
Premises. “Premises” shall mean the multiple dwelling or the building and includes the land upon which it is situated.
Program. “Program” shall mean the program for the making of loans pursuant to Article VIII-A of the Private Housing Finance Law of the State of New York and this chapter.
Rehabilitation. “Rehabilitation” or “rehabilitation or improvement” shall mean the curing of any substandard or insanitary condition or conditions, or the replacement, repair or upgrading of heating, plumbing, electrical and related systems.
Rent or rental. “Rent” or “rental” shall also mean carrying charge whenever the multiple dwelling is cooperatively owned. This definition shall not apply to 28 RCNY § 2-04(a)(2).
Single room occupancy housing. “Single room occupancy housing” shall mean dwelling units which:
(1) may be lawfully occupied as the residence of single individuals capable of living independently of each other and do not contain either food preparation facilities or sanitary facilities or both, or
(2) are otherwise used and maintained for such occupancy in full compliance with the building’s certificate of occupancy and the provisions of the New York State Multiple Dwelling Law.
Useful life of the dwelling. “Useful life of the dwelling” shall mean the period of time, as determined by the Dept., that the multiple dwelling is expected to be habitable at a level of comfort, safety and sanitation compatible with current requirements of state and city statutes, ordinances and administrative regulations, where there is regular maintenance and care of the major building systems by competent mechanics.
Useful life of the rehabilitation or improvement. “Useful life of the rehabilitation or improvement” shall mean the period of time as determined by the Department that the improvement is expected to function in good condition, with routine maintenance and repair.
§ 2-02 Eligibility and General Conditions.
(a) Eligible buildings.
(1) Loans may be made to an owner of a multiple dwelling located within the City to enable or assist such owner to eliminate a substandard or insanitary condition or conditions in violation of the Multiple Dwelling Law or the Housing Maintenance Code of the City of New York or to provide for the replacement and rehabilitation of the heating, plumbing, electrical and related systems or other improvements as shall be reasonably necessary to prolong the useful life of such dwelling.
(2) No loan shall be made unless the average rent for dwelling units in the building is not in excess of the average rent prevailing in local projects of municipally-aided limited-profit housing companies aided under Article II of the Private Housing Finance Law of the State of New York, the occupancy of which commenced on or after May 18, 1970, except for loans made to rehabilitate single room occupancy housing, in which cases the average rent for such units in the building shall not exceed seventy-five (75%) percent of the Moderate Rehabilitation Fair Market Rent as defined in 28 RCNY § 2-01(b) “Occupancy by persons or families of low income”, for 0-bedroom units.
(1) Construction costs and filing fees required by the Department of Buildings and other governmental agencies having jurisdiction.
(2) Interim interest on the loan proceeds.
(3) Recording and filing fees and mortgage taxes.
(4) Payment and Performance Bond(s).
(5) Fees or charges attributable to the examination and insurance of title.
(6) Real estate taxes, assessments, water and meter charges and sewer rents.
(7) Fire insurance premiums.
§ 2-03 Application Procedure.
(a) Application forms. Application forms may be obtained from the Department, 100 Gold Street, New York, N.Y. 10038, Attention: Article VIII-A Loan Program. All applications shall be submitted to the Department for review and approval.
(1) A description of the rehabilitation or improvement and the estimated cost thereof.
(2) The name, address and telephone number of the applicant, the owner, the managing agent and the holders of existing mortgages and other liens against the multiple dwelling.
(3) A statement of income and expenses for a period of time to be determined by the Department.
(4) A statement of the current monthly rent or carrying charges of each residential and commercial unit, the name of each residential tenant, the number of rooms in each residential unit, and the rent controlled or rent stabilized status of each residential unit.
(5) A statement of the current non-publicly assisted, rent stabilized market rents of residential units in the building and, if known, a similar statement for comparable apartments in adjacent buildings or buildings in the immediate vicinity.
(6) Such additional information as the Department may require.
§ 2-04 Determination of Feasibility and Conditions Precedent to Making a Loan.
(a) Low income tenancy and rent increases.
(1) Covenant on low income tenancy. No loan shall be made unless the owner covenants in writing that so long as any part of the loan shall remain unpaid:
(i) Upon vacancy, each dwelling unit in the multiple dwelling shall be available solely for occupancy by persons or families of low income; and
(ii) No person living in the multiple dwelling at the time the loan is made shall be required to move because of the rehabilitation or improvement financed by the loan, other than temporarily during the course of construction.
(2) Rent increases.
(i) The Department, in its sole discretion, shall have the option to adjust the rent for each rental unit within the multiple dwelling pursuant to authority granted by subdivision 7 of § 452 of the Private Housing Finance Law of the State of New York. The total rental adjustment shall be in an amount not in excess of the debt service (both principal and interest) calculated on that portion of the loan which the Department attributes to the financing of the rehabilitation of the rental units as if such loan were to be repaid over a self-amortizing term to be determined by HPD which shall be not less than ten (10) years for loans averaging five thousand ($5,000) dollars or less per dwelling unit, and not less than fifteen (15) years for loans exceeding five thousand ($5,000) dollars per dwelling unit. The initial rental adjustment for each rental dwelling unit will be calculated by dividing the total rental adjustment by the total number of rental rooms. Such adjustment shall be applied equally on a per room per month basis, except that a greater adjustment may be allowed for vacant units. For loans which closed prior to the effective date of these regulations, unequal adjustments may be allowed if HPD sends notification of such rent adjustment to the tenants prior to the closing of the loan. For rents to be adjusted under the provisions of this subparagraph, the owner(s) of the premises must agree to waive any and all increases which are attributable to the completed rehabilitation work financed by the 8A loan or required pursuant to the Housing Repair and Maintenance Agreement to which he might be entitled under the Administrative Code Chapters 4 and/or 5 of Title 26. Rental adjustments under this subparagraph shall have no effect upon the status of
(A) rent stabilized units which will remain stabilized with the rental adjustment added to the then current rent and subject to continuing lease increases granted by the appropriate governmental authority, or
(B) rent controlled units which will remain controlled with the rental adjustment added to the then current maximum base rent and maximum collectible rent and subject to continuing increases in the maximum base rent and maximum collectible rent granted by the appropriate governmental authority. Nothing contained in this subparagraph (2)(i) shall affect the time period for the repayment of the loan as determined by the Department under 28 RCNY § 2-02(d).
(ii) As an alternative to the rental adjustment provided under the preceding sub- paragraph (2)(i) the Department may in appropriate circumstances restructure the rents under § 33.9 of the New York City Rent and Eviction Regulations provided the rents as restructured do not exceed the average rent prevailing in local projects of municipally-aided limited- profit housing companies aided under Article II of the Private Housing Finance Law of the State of New York, the occupancy of which commenced on or after May 18, 1970, or in the case of a single room occupancy housing, seventy-five (75%) percent of the Moderate Rehabilitation Fair Market Rent, as defined in these regulations, for 0-bedroom units.
(3) Status of apartments. Loans may be made irrespective of the current status of control, stabilization or decontrol of dwelling units and shall not have any effect upon such present or future status of the units.
(4) Tenant notification. Prior to final approval of the loan, the owner shall be required to give tenants residing in the multiple dwelling written notification of the proposed rehabilitation or improvement and the possibility of rent increases, in form specified or approved by the Department. The owner shall submit an affidavit to the Department certifying that such written notification has been given to the tenants. The Department shall notify the tenants in writing no later than twenty-eight (28) calendar days prior to the loan closing of the nature of the proposed rehabilitation or improvement and any projected rent increases. The tenants may forward their comments or objections regarding the proposed loan to the Department for consideration of all relevant issues. The Department, in its discretion, may hold or require the owner to hold at least one public meeting with the tenants or their representatives to discuss the proposed rehabilitation or improvement and any projected rent increases. The Department may, as an alternative to its twenty-eight day notification, hold a tenant meeting if at least three (3) business days before the meeting a copy of the Department’s notification letter is sent by ordinary mail to all tenants. If rents are to be adjusted pursuant to 28 RCNY § 2-04(a)(2)(i), the Department shall send by ordinary mail a written notice of the approximate expected rent increase after the completion of the rehabilitation or improvement and prior to the establishment of the rental adjustments. After this notification, tenants may again forward their comments or objections to the Department for consideration. The Department shall consider any comments or objections that it considers to be relevant to the rent increases and which are received within ten (10) days after the date of mailing (by deposit in a general or branch post office or other official depository of the United States Postal Service) of the Department’s notification.
(1) Existing mortgages. Loans may be made with respect to a multiple dwelling encumbered by mortgages provided no mortgage is in default, except by reason of the deteriorated physical condition of the building, if such condition and default shall be remedied by the proposed rehabilitation or improvement.
(2) Modification agreement. A mortgage modification or extension agreement may be required from the holder of a prior mortgage against the building where such mortgage secures a loan which is not self-liquidating and matures prior to the final payment date of the proposed loan.
(3) Subordination of existing liens.
(i) An existing mortgage or other lien held by the owner or a relative of the owner, or an officer, director, stockholder or partner of the owner, or a relative of such persons, or a party which is associated or affiliated with or a subsidiary of the owner shall be subordinated to the lien of the mortgage given to secure the City loan.
(ii) A secured loan made by a private non-institutional lender, if made in conjunction with a loan made by the City for the partial financing of the rehabilitation, shall be subordinated to the lien of the mortgage given to secure the City loan.
(1) Removal of violations. All multiple dwellings assisted under this Program shall be brought into substantial compliance with the Multiple Dwelling Law and the Housing Maintenance Code within a period of time to be determined by the Department but in no event later than one (1) year from the date set forth in the loan documents for the commencement of the payment of principal and interest on the loan.
(2) Additional work. The Department may require that the owner correct conditions and perform work in the premises in addition to that set forth in the Building Improvement Loan Agreement.
(3) Management. No loan shall be made unless the Department shall have determined that the owner has evidenced an ability to manage the building in accordance with good real estate industry practice. In appropriate cases, the Department may require a written management plan, acceptable to the Department, to ensure proper procedures for management of the property, including rent collection, supervision of building employees, payment of bills for maintenance and operation and handling tenant complaints.
(1) Code compliance. No loan shall be made unless the rehabilitation or improvement will result in the elimination of a substandard or unsanitary condition(s) existing in the multiple dwelling in violation of the Multiple Dwelling Law or the Housing Maintenance Code, or will provide for the replacement and rehabilitation of the heating, plumbing, electrical and related systems or other improvements if reasonably necessary to prolong the useful life of the dwelling. In either case, the estimated useful life of the multiple dwelling after rehabilitation shall not be less than the term of the loan.
(2) Economic viability. No loan shall be approved unless after the rehabilitation or improvement and any restructuring of rents as set forth in 28 RCNY § 2-04(a), or any rent adjustment or other benefits to which the owner may otherwise become entitled under the provisions of the Administrative Code, or otherwise, as a result of the rehabilitation or improvement, the building’s projected revenues are sufficient to meet all maintenance and operating expenses, real estate taxes, water rates, sewer rents, vacancy and collection losses, debt service and return on equity.
§ 2-05 Contract Terms and Insurance Requirements.
(a) Loan documents. Each loan shall be evidenced by a promissory note executed by the owner of the multiple dwelling in form specified by the Department. The Department in its discretion may require that one or more of the shareholders, officers or directors of a corporate owner co-sign the note or otherwise guarantee or pledge security or provide an acceptable surety for the repayment of the loan. The following additional documents may be required:
(1) Building Loan Contract. A Building Loan Contract between the owner and the City in form specified by the Department.
(2) Mortgage or financing statement. A mortgage executed by the owner in form specified by the Department, shall be required as security for all loans, except that, if the loan is for thirty-five thousand ($35,000) dollars or less, or for a term of seven (7) years or less, the Department may, in its discretion, accept a financing statement as security.
(3) Disclosure statement. A sworn disclosure statement, in form specified by the Department, executed by the owner or his duly authorized agent disclosing the identity of all parties involved or to be involved in the ownership, financing and rehabilitation or improvement of the building.
(4) Such other documents executed by the owner as the City or the Department and its attorneys deem necessary or desirable.
(1) Method of repayment. Debt service consisting of payments of interest on the unpaid principal balance and repayment of the principal amount shall be paid in equal monthly installments so as to be fully amortized by the maturity date of the loan. At its discretion, the Department may require an alternative schedule of loan payments provided the loan is fully paid by its maturity date.
(2) Prepayment privileges. The loan may be prepaid only in accordance with the terms specified in the loan documents.
(3) Refinancing. Any debt in existence prior to the time of the closing of the City loan and secured by a lien against the premises may, without the consent of the Department be refinanced after such closing provided:
(i) the principal amount of the refinanced debt shall not exceed the unpaid principal balance of the debt at the time of the refinancing, except that if such lien is subordinate to that of the mortgage given to secure the City loan, the principal amount shall not exceed the unpaid balance of the debt at the time of the closing of the City loan;
(ii) the rate of interest on the refinanced debt shall not exceed the rate prevailing in the private market at the time of the refinancing;
(iii) after refinancing debt service on the refinanced debt shall be paid in equal and constant periodic installments; and
(iv) at the time of the refinancing the mortgage given to secure the City loan shall not be in default with respect to any payment of principal or interest or any other payment required under the terms of said mortgage or the note secured thereby.
(4) Further encumbrances. Except as otherwise provided in 28 RCNY § 2-05(b)(3), an owner shall not at any time further encumber, mortgage or permit any encumbrance or lien of any kind or nature upon the premises without the prior written consent of the Department nor, shall the premises or any part thereof be conveyed without the prior written consent of the Department. On failure to comply with this paragraph (4), the Department, at its option, may declare the entire loan immediately due and payable.
(1) Fire insurance. Ten days before loan closing the owner shall deliver to the Department prepaid insurance policies issued by companies in form and amounts satisfactory to the Department, insuring the premises against loss or damage by fire, with the usual extended coverage endorsement, and such other hazards as may reasonably be required by the Department. Such policies shall name the City as a mortgagee and provide that losses thereunder shall be payable to the City as its interest may appear.
(2) Workmen’s compensation. Each contractor and sub-contractor, pursuant to the Workmen’s Compensation Law, shall provide adequate Workmen’s Compensation Insurance for all employees engaged in work on a building who may come within the protection of said law.
(3) The Department may require the owner or contractor to provide Public Liability, Property Damage and Employer’s General Liability insurance.
§ 2-06 Construction Requirements and Payment of Loan Proceeds.
(a) Cost estimates, construction contract and contractors.
(1) Scope of work and cost estimates. Applicants shall be required to submit estimates showing the nature and cost of each item of the rehabilitation or improvement. The Department may require the applicant to submit more than one estimate per trade and may prescribe forms on which such estimates shall be prepared or summarized. The plans, specifications, work write-ups or any other description of work to be performed must be approved by the Department prior to the commencement of any rehabilitation work or the making of a loan for same. The technical specifications shall conform to the standards established by the Department and where applicable, shall be subject to the approval of the Department of Buildings or other governmental agencies having jurisdiction.
(2) Approval of construction contract. The specifications approved by the Department shall be made part of the written construction contract between the owner and the general contractor, and such construction contract shall be subject to the written approval of the Department. If a general contractor is not engaged, the owner shall enter into a written construction contract with each subcontractor. The pertinent specifications approved by the Department shall be made a part of each such contract and each such contract shall be subject to the written approval of the Department.
(3) Contractors. The Department reserves the right to disapprove any contractor or subcontractor because of previous violation of statutes, rules or regulations relating to discrimination, standards of employment or labor standards, or because of inefficiency, abandonment of duties, or disregard for creditors on prior jobs performed under this Program or other programs of the City.
(1) Periodic inspections. While rehabilitation is in progress the Department’s personnel may conduct periodic inspections of the work and ma- terials.
(2) Progress payments. Progress payments for work completed shall be made on the basis of sworn statements as hereinafter provided, subject to review, inspection and approval by the Department. At the time of each progress payment, the borrower and the general contractor, if a general contractor has been engaged, or other contractor, shall execute and submit to the Department a sworn statement, in form specified by the Department, certifying that there has been compliance with all labor standards pursuant to 28 RCNY § 2-06(d), that payment has been made or will be made from the proceeds of such progress payments for all labor and services rendered and materials furnished in connection with the work to the date of payment and that any liens placed against the premises subsequent to the closing of the loan have been paid, bonded or otherwise discharged. In the sole discretion of the Department, progress payments shall be made payable directly to the owner, directly to the contractor, or jointly to the owner and contractor.
(3) Retention. The Department shall withhold an amount equal to ten percent (10%) of the total amount of each approved progress payment to create a retention fund to assure satisfactory progress and completion of the work. Up to fifty percent (50%) of such retention may be released upon the completion of at least fifty per cent (50%) of the work upon written request by the borrower and approval by the Department. The remainder of the retention funds shall be released upon:
(i) completion of the work to the full satisfaction of the Department;
(ii) issuance of approvals by governmental agencies having jurisdiction, including, where applicable, a certificate of occupancy or of completion by the Department of Buildings; and
(iii) proof of payment for all labor and materials provided in connection with the rehabilitation or improvement. In lieu of subparagraph (ii) above, the Department in its discretion may accept from an architect registered with the State of New York or a professional engineer licensed by the State of New York, a certification that the completed work complies with the requirements of the particular governmental agencies having jurisdiction thereof and that applications seeking the approval of certification of such agencies have been properly filed with or submitted to such agencies.
(4) Escrow provisions. The Department may require the deposit of loan advances in a separate escrow account, in a bank designated by the Department, subject to withdrawal only upon the joint signatures of the borrower and a representative of the Department. The Department may further require that the owner deposit in such escrow account, or in a separate trust account in such bank under such provisions as the Department shall prescribe, all or a designated portion of the rents collected from the multiple dwelling during the period of construction.
(5) Failure to complete work. If the borrower for any reason fails to diligently pursue or timely complete the rehabilitation to the full satisfaction of the Department, the Department may, after written notice to the borrower, enter upon the premises, effect the completion of the rehabilitation and charge the cost thereof to the borrower.
(6) Adjustments for interim interest. Any portion of the loan representing interest on advances during construction shall be adjusted upon completion of the rehabilitation as follows. If such portion shall be more than the amount required for interest on advances, the excess shall be credited to the borrower in reduction of the principal of the loan; if less than the amount required for such interest, the difference shall be deducted from the final advance of loan proceeds due borrower and paid to the City.
(1) Compliance. The owner and any contractor or subcontractor engaged in connection with the rehabilitation or improvement must agree as a condition of such engagement to comply with all applicable federal, state and local statutes, rules and regulations relating to discrimination and standards of employment. The owner shall not exclude any person, including prospective tenants, from participation in, deny any person the benefits of, or subject any person to discrimination under this Program on the grounds of race, color, national origin, creed, age, sex, or sexual orientation. If an owner, contractor or subcontractor fails to comply with the provisions of this paragraph (1), the Department, in its discretion, may, in addition to or as an alternative to any other remedies reserved to the City or the Department in the loan documents, withhold progress payments to the owner or disapprove the contractor or subcontractor for future work under this Program or other programs of the Department.
(2) Books, records and inspections. In order to assure strict compliance with this subdivision (c), all contractors and subcontractors will be required to sign an agreement, in form specified by the Department, to make their books and records available for inspection by representatives or agents of the Department. In order to determine such compliance the Department reserves the right to interview or confer with any employee at any time, on a rehabilitation site or in the office of the contractor or subcontractor.
(1) Compliance with labor standards. The owner and any contractor or subcontractor engaged in connection with the rehabilitation or improvement must agree as a condition of such engagement to comply with all applicable federal, state and local statutes, rules and regulations relating to labor standards, including the payment of prevailing wage rates.
(2) Enforcement. Each contractor and subcontractor shall be required to submit to the Department for review, copies of their weekly payrolls and such other documentation and reports as may be required by the Department. If the contractor engages a subcontractor, the contractor shall be obligated to obtain such required documentation and reports from the subcontractor. All books and records of the owner, contractors, subcontractors, laborers and materialmen involved in the rehabilitation shall be made available to representatives or agents of the Department and other governmental agencies having jurisdiction, for review or audit. The above parties may be required to submit to oral examination under oath. Such examination may include, but is not limited to, the performance and quality of the work, any and all matters pertaining to the loan and compliance with applicable statutes, rules and regulations.
§ 2-07 Supervision by the Department.
(a) Power to inspect and investigate.
(1) Covenant on inspection and investigation. No loan shall be made unless the owner covenants in writing that so long as any part of the loan shall remain unpaid:
(i) All persons operating or managing the multiple dwelling will permit the duly authorized officers, employees, agents or inspectors of the Department to enter in or upon and inspect such multiple dwelling at all reasonable hours; and
(ii) The Department by its duly authorized representatives shall have full power to investigate into and order the owner of the multiple dwelling to furnish such reports and information as the Department may require concerning the rehabilitation or improvement and the management of the multiple dwelling, and shall have full power to audit the books of the owner with respect to such matters.
(2) Nature of inspection. In addition to any other inspections authorized by law, the Department may make periodic inspections of the building so long as any monies remain unpaid on the loan. Such inspections shall be for the purpose of inspecting the condition and maintenance of the building, including its utilities, fixtures and equipment. Copies of any inspection reports shall be made available to the owner with recommendations for corrective measures where necessary. Representatives of the Department may periodically visit the building for the purpose of conferring with tenants and, where necessary, serving as a liaison or intermediary on landlord-tenant problems.
(1) No loan shall be made unless the owner covenants in writing that so long as any part of the loan shall remain unpaid the owner shall submit to the Department annually, in such form as shall be approved by the Department, a statement of the income and expenses of such multiple dwelling. The statement of income shall include, but is not limited to, the monthly rent of each residential apartment and the rent controlled or rent stabilized status of each unit.
(2) The annual statement shall cover the twelve month period ending June 30th or such other period approved by the Department, and shall be submitted within ninety days after the close of such period. The Department, in its discretion, may require submission of statements of income and expenses on a more frequent basis.
(3) On five days’ notice, the books and records of the owner relative to the premises shall be made available to representatives or agents of the Department for review, examination or audit.
§ 3-01 Sponsors and Publicity.
(a) Sponsorship of development. Applicants for sponsorship of a limited-profit housing company development shall furnish to the Department of Housing Preservation and Development, hereinafter referred to as "HPD",
(1) an application for approval of the site and sponsors,
(2) evidence of financial ability and other qualifications, and
(3) such other data or information as HPD shall require. Applications, financial data and information with respect to qualifications shall be in such form and substance as HPD shall, from time to time, require. All references herein to “housing company” shall be deemed to mean limited-profit housing company.
§ 3-02 Rental or Sale of Space and Solicitation of Deposits.
(a) Priority of applicants for dwelling units – initial rent up period. All inquiries and applications for the purchase of shares or rental of dwelling units received within 10 days of the public announcement about the development by HPD shall be treated on a par with each other regardless of the actual date of receipt of inquiry, application or deposit. In order to receive consideration, all inquiries shall be in writing and directed to the housing company, which shall note the date of receipt thereon. All correspondence addressed to the housing company or sponsor relating to the proposed development shall be acknowledged within ten (10) days of its receipt.
(1) In the case of a cooperative housing company (hereinafter referred to as a “mutual housing company”), the Information Bulletin shall be accepted for filing by the Department of Law of the State of New York pursuant to § 352-e of the General Business Law.
(2) The sponsoring agreement, restricted bank account, and required insurance coverage have been provided by the housing company and approved, in writing, by HPD.
(3) The sales or rental agreement, blanket position bond, and resolution of the Board of Directors of the housing company authorizing the agreement have been approved by HPD.
(4) All application forms, subscription agreements, occupancy agreements, receipts, and all other forms proposed to be used by the housing company must be approved in writing by HPD before they are used.
(1) The form of receipt, and
(2) The opening of a trust account in which all deposits are required to be promptly deposited in the name of the housing company (or such other person or organization designated by HPD), and
(3) The proposed selling agent. Deposits shall be accepted by the housing company by check or money order only, payable to the housing company. In the case of a mutual housing company, all funds so received shall be deposited in said account and shall bear the title “Capital Trust Account” after the name of the housing company. Funds on deposit in said trust account shall be restricted and subject to withdrawal only upon the filing of a written authorization signed by a designee of HPD.
(4) All other criteria set forth in this section governing rental of dwelling units or sale of shares.
(1) Every housing company shall have adequate supplies of applications on hand at all times at its business and sales office.
(2) Any bona fide resident of the State of New York who has reached his/her majority under the laws of the State of New York may file an application for the lease of a dwelling unit in a rental housing company or the purchase of shares in a mutual housing company, provided, however, that in developments assisted by a project-based Section 8 contract under the United States Housing Act of 1937, as amended, or assisted by a contract under Section 236 of the National Housing Act, as amended, any legal resident of the United States who has reached his/her majority under the laws of New York may file an application for such lease or such purchase of shares. No condition or limitation shall be imposed upon an applicant in connection with the filing or execution of an application other than:
(i) an application fee;
(ii) non-returnable fees to cover the cost of credit investigation, home visit or administrative costs; and
(iii) conditions set forth in applicable governmental authorizations, Land Disposition Agreements or other documents of such public nature. The application and non-returnable fees shall be in amounts approved by HPD. No applicant can be refused a place on an external waiting list for reason of financial ineligibility. Financial eligibility shall be determined at the time an apartment is offered. However, applicants shall be advised of the financial eligibility requirements at the time of applying.
(3) Applications shall be consecutively numbered and dated upon receipt by the housing company or shall be numbered pursuant to order of selection by lottery, as applicable. The housing company or its managing agent shall provide an applicant with a dated receipt or other form of documentation setting forth the date and/or waiting list number of the application. Applicants must meet the occupancy standards at the time of application and at the time the apartment is offered. No applicant may be placed on more than one waiting list by bedroom size in a particular housing company development. Applications are only transferable to spouses, siblings, or children who are at least eighteen years of age as of the date of the applicant’s initial application, provided that such spouse’s, sibling’s, or children’s names appeared on the applicant’s initial application. Each applicant shall only be entitled to one entry per lottery for a housing company development. Multiple entries shall result in disqualification from such lottery. Furthermore, an applicant whose name is selected in a lottery cannot be included in the family composition of any other applicant who is selected in the same lottery for that particular housing company development. Such inclusion in multiple selected family compositions also shall result in disqualification of all involved parties from such lottery.
(4) Each application, together with income and occupancy information and other data as hereinafter specified, shall be investigated by the housing company at the time an apartment is offered to determine the eligibility of the applicant. The data received by any housing company relative to tenant income shall be regarded as confidential in nature and protected accordingly to the extent permitted by law. In the case of a mutual housing company development, applicants approved by the mutual housing company shall upon notification of such approval be required to pay the balance of the purchase price of the shares allocated to the apartment. Thereafter, such application, together with supporting data, including a satisfactory credit history, and, in the case of a mutual housing company development, one copy of the contract for sale of shares approved by the housing company, shall be forwarded to HPD for its approval. Home visits conducted in connection with a credit check are permitted.
(5) Except for developments governed by 28 RCNY § 3-21, no applicant shall be given possession of an apartment until his or her application has been approved by HPD and he or she has executed an occupancy agreement or lease.
(6) Applications which are rejected by a housing company without being submitted to HPD shall have clearly marked thereon the reason for disapproval and shall be kept for a period of time as HPD may direct, and shall be available for examination by HPD. The applicant shall be advised in writing of the reason for his or her rejection and advised that he or she can appeal the rejection to HPD within thirty (30) days from the date of such written notification. Such appeal shall be in writing.
(7) The housing company may adopt a policy permitting or prohibiting guarantors that must be applied uniformly to all applicants. Where an applicant requires a guarantor to guarantee payment of rent/carrying charges to a housing company that has adopted a policy permitting guarantors, the managing agent shall conduct a credit check and income review of the guarantor to assure that guarantor is financially responsible.
(8) (i) All housing companies, whether mutual or rental, shall maintain all waiting lists on forms approved by HPD for all tenant/cooperator applications for apartments, listed in chronological order, by apartment size, by date of receipt or by order of selection by lottery, as applicable. All eligibility requirements for age, residency and family composition must be met by the cut-off date for the lottery. As used in this chapter, the term “tenant/cooperator” shall mean a tenant residing in an apartment in a rental development and/or a shareholder/proprietary lessee residing in an apartment in a mutual housing company development, as the case may be. These master waiting lists shall be kept in the management office. A conformed copy of the master waiting lists by apartment size shall be sent to HPD. Thereafter, on a semi-annual basis, or more frequently if requested by HPD, updated waiting lists shall be submitted to HPD. The waiting lists must reflect the status of each application, i.e. who received an apartment, who declined an apartment, who withdrew, or any other circumstances, including dates the actions were taken.
(ii) The opening and closing of all waiting lists shall be subject to prior written approval of HPD. The lottery for the units that become available through the opening of a waiting list must be advertised through the New York City Housing Connect/Mitchell-Lama Connect lottery system or any successor program administered by HPD to market vacant Mitchell-Lama units. Such lottery also must be advertised through advertisements that have been approved by HPD and published in at least two daily newspapers of general circulation and two publications known to have a high readership amongst minorities. Housing companies must thereafter select applicants from the New York City Housing Connect/Mitchell Lama Connect or successor program lottery. When a list has sufficient names on it to last for three years, the list may be closed by HPD. Waiting lists for various size apartments may be closed at different times as the particular apartment-size list attains sufficient names.
(iii) No application shall be taken or deposit accepted for a position on the waiting list subsequent to the official closing of such waiting list. Any application added to the waiting list after the official closing date shall be rejected by HPD.
(9) Each applicant and members of his or her household shall furnish an affidavit attesting to the gross household income for the preceding year and the anticipated gross household income for the current year. Each applicant and members of his or her household shall also be required to furnish to the housing company or HPD certified copies of tax returns filed by them with the Internal Revenue Service (“IRS”) and the New York State Department of Taxation and Finance for the preceding or subsequent years for admission purposes as well as during their occupancy of a dwelling unit of the development. Applicant and members of his or her household shall assume the cost of obtaining certified copies for these purposes. Failure to provide certified tax returns when requested for admission purposes shall result in rejection of the application; failure to provide certified copies during occupancy shall result in imposition of maximum surcharges upon the tenant/cooperator.
(10) The waiting list shall be printed in a legible manner and shall be available for inspection by members of the Board of Directors, members of the Tenants Association, residents of the development, city officials and applicants. Both internal and external waiting lists must be posted in a format prescribed by HPD in the management office, or, if there is no management office, in the lobby of each building of the housing company development. Posted waiting lists shall exclude all personal information except for the first and last names of all active applicants. Names of applicants on such waiting lists shall appear in chronological order, by apartment size, by date of application receipt or by order of selection by lottery, as applicable.
(11) If, at any time, an applicant’s name has been omitted from a waiting list in error, and said applicant can present adequate documentation satisfactory to the housing company or its managing agent to substantiate an earlier date of application for an apartment, applicant’s name shall be inserted into the waiting list in the corrected date order. Requests to be reinserted into the waiting list cannot be made more than seven years after the date of the initial application and must be submitted to HPD for prior written approval.
(12) Except for the priorities mentioned below, the waiting list by apartment size in chronological order by date of receipt of application or order of selection by lottery, as applicable, shall be maintained in the following manner:
| Type Apartment Desired (Example: 1 Bedroom) | |||||
|---|---|---|---|---|---|
| Date of Request | Name | Address | Business Telephone | Residence Telephone | Veteran yes or no |
| 1/1/69 |
|
XXX Ave. Y | 123-4567 | 765-5432 | yes |
~
Selections of tenants or cooperators must be made from this list in chronological order or order of selection by lottery, as applicable.
(13) Notwithstanding anything to the contrary contained in this subdivision, an applicant on a waiting list for the lease of a dwelling unit in a rental housing company development or the purchase of shares in a mutual housing company development who, while he or she is on such waiting list, either (i) occupies a dwelling unit in such development in violation of this chapter, including, but not limited to, through failing to be included on the income affidavit for such dwelling unit or through submitting IRS or New York State income tax returns in conjunction with such applicant’s application that reflect a different income than the income reported on such dwelling unit’s income affidavit, or (ii) submits any material false, fraudulent or misleading statement, representation, documentation or other information in connection with an application, certification of eligibility or recertification of eligibility for any governmentally-provided affordable housing assistance or subsidy, shall be removed from such waiting list.
(14) Any applicant on an external waiting list may file a written request with the managing agent of a housing company, with a copy provided to HPD, that his or her application be put on hold for one year provided that (i) such written request is filed by the later of (A) at least thirty days in advance of the proposed commencement of such one year hold period or (B) no more than five business days after receiving an offer from such housing company, (ii) if such applicant does not notify the managing agent of such housing company in writing, with a copy provided to HPD, at least thirty days prior to the expiration of such one year hold period that he or she would like to remain on such external waiting list, such applicant shall not be reinstated to such external waiting list at the expiration of such one year hold period, and (iii) no applicant shall be entitled to request more than one such hold during the time period in which such applicant remains on the external waiting list.
(1) First priority. Tenant/cooperators currently residing in a development whose household composition renders them eligible for a smaller apartment shall be given first priority for an internal transfer. Tenant/cooperators currently residing in a development whose household composition renders them eligible for a larger apartment shall be given first priority for the first three out of every four apartments that become available and the fourth such apartment that becomes available shall be set aside and offered to an applicant on the external waiting list in accordance with the provisions contained in paragraph (3) of this subdivision. No priority shall be given to residents seeking additional apartments for members of their household, or for non-resident family members or any other parties. The housing company shall maintain an internal transfer list by apartment size, listed in chronological order by date of receipt of transfer request. If, at any time, a tenant/cooperator’s name has been omitted from the internal transfer list in error, and said tenant/cooperator can present adequate documentation satisfactory to the housing company or its managing agent to substantiate an earlier request for a transfer, said tenant/cooperator’s name shall be inserted into the internal list in the corrected date order. Insertions to the internal transfer list shall be submitted to HPD for prior written approval.
A tenant/cooperator on an internal transfer list, whose household composition so changes as to render him or her ineligible for the apartment size requested, shall be placed on the appropriate size apartment list as of the date when the change occurred or the date the original request is made, whichever is later; provided, however, that, except for enlargement of a household due to birth or adoption, the change to a larger household composition must have occurred at least one year prior to placement on the internal transfer list. If a tenant/cooperator is offered an apartment as an internal transfer and he or she is no longer eligible for that size apartment due to a change in household composition, his or her name shall then be placed on the appropriate size apartment list as of the date when the change occurred which made him or her ineligible.
The tenant/cooperator must meet the occupancy standards for the size apartment requested at the time that he or she places his or her name on the internal transfer list and must have been in residence for a period of no less than one year before he or she may request a transfer to a larger apartment. The income affidavit submitted by the tenant/cooperator on file with the housing company or its managing agent must reflect a sufficient number of occupants to warrant a transfer at the time of his or her request, as well as when an apartment is offered. The housing company or its managing agent shall deny a transfer to the tenant/cooperator if he or she fails to satisfy these requirements. No transfer request will be accepted based on pregnancy. No transfer of apartments shall be effected if the tenant/cooperator seeking the transfer is in arrears in rent/carrying charges, surcharges, capital assessments, submetering charges or any other fees or charges. The housing company shall advise the tenant/cooperator in writing of its denial of a request for transfer.
The tenant/cooperator shall be required to pay a surcharge effective the first day of the month following his or her residency in the new apartment if his or her income exceeds the maximum allowable for that apartment.
(2) Second priority. Pursuant to § 31(7) of the Private Housing Finance Law, preference in admission to a project with an open waiting list, as determined by HPD, shall be given to persons who are veterans as such term is defined pursuant to § 85 of the Civil Service Law or their surviving spouses, and for projects with a closed list, as determined by HPD, preference shall be given upon the opening of the waiting list to such veterans or surviving spouses that are selected in the lottery for such opened waiting list. This preference in admission shall only be provided to veterans or surviving spouses whose names appear on the waiting list as the applicants of record and who have identified themselves as the heads of household on their applications. The inclusion of a veteran or surviving spouse as a member of the household shall not entitle any other applicant of record to this preference in admission.
(3) Third priority. Persons listed on the external waiting lists by apartment size in strict chronological order by date of receipt of application or order of selection by lottery, as applicable. Family members of a tenant/cooperator, whether or not members of the tenant/cooperator’s household, shall not receive preferential treatment on the waiting lists.
(4) The above priorities shall not be applicable to staff or student housing or to housing for the elderly or disabled except as such priorities apply within each special category. Preference in admission to any development or to such portion of any development which has been specifically designed for occupancy by elderly or disabled persons, as the case may be, shall be given to such persons.
(1) Admission income verification. The housing company or its managing agent shall verify the aggregate income of each applicant and members of his or her household prior to admission to the development in the following manner:
(i) Each applicant shall furnish an affidavit attesting to the gross household income of his or her household for the preceding year and the anticipated gross household income for the current year. All members of the household must be listed on the income affidavit whether or not income was earned.
(ii) Each applicant and each member of the household having any income shall furnish proof of income by supplying copies of W-2 forms filed by them for the preceding year, or a statement from their employer setting forth their current rate of income and their total earned income for the immediately preceding year and a copy of their IRS or New York State income tax returns for the immediately preceding year. HPD or the housing company may require submission of certified income tax returns for admission purposes. Each self-employed applicant and self-employed member of the household who will reside with the applicant shall furnish a certified copy of his or her IRS and New York State income tax returns for the immediately preceding year. Applicants and members of the applicant’s household shall pay the cost of obtaining certified copies of their income tax returns.
(iii) A copy of amendments to any tax returns, or of tax assessments shall be furnished to the housing company within 30 days after filing the amendment or receipt of notice of the assessment.
(iv) Additional proof of eligibility may be requested by the housing company or HPD.
(2) Income verification during occupancy. During occupancy, a tenant/cooperator and members of his or her household shall submit when requested by the housing company, its managing agent or HPD certified copies of their IRS and/or New York State income tax returns for audit or verification purposes with regard to continued eligibility, surcharges or any other valid purpose. The tenant/cooperator and members of his or her household shall assume the cost of obtaining such certified copies.
(3) Failure to provide certified income tax returns or other documentation. Failure to provide certified copies of income tax returns or other required documentation shall result in denial of admission to new applicants and imposition of the maximum surcharge to those already in occupancy.
(1) Apartments shall be offered for occupancy as they become vacant in accordance with the standards set forth below (occupancy standards shall be applied without regard to the pending birth or pending adoption of a child):
(i) Efficiency apartments (no bedrooms). One (1) or two (2) persons.
(ii) One (1) bedroom apartments. Two (2) or three (3) persons shall occupy a one-bedroom apartment. A single person may occupy a one-bedroom apartment if the development has less than ten percent (10%) efficiency apartments.
(iii) Two (2) bedroom apartments. No fewer than three persons, a brother and a sister who are both adults, or a parent or guardian with at least one child.
(iv) Three (3) bedroom apartments. No fewer than (A) five (5) persons, (B) parent(s) or guardian(s) with two children of the opposite sex, (C) a household of three adults with one child where at least one adult is the parent or guardian of such child, or (D) a household of one parent or guardian and his or her three children shall occupy a three-bedroom apartment.
(v) Four (4) bedroom apartments. No fewer than (6) persons.
(vi) All apartments. In all cases the tenant/cooperator named on the lease must be at least eighteen years of age and must actually occupy the apartment as his or her primary residence.
(vii) HPD may grant waivers of occupancy standards for medical reasons.
(2) Except as otherwise provided by paragraph (1) of subdivision (i) of this section, priority shall be given to internal transfers in the offering of all vacant apartments.
(1) No tenant/cooperator shall be permitted to occupy an apartment until an executed lease or occupancy agreement has been approved by HPD. The minimum term of such lease or occupancy agreement shall be one year.
(2) No tenant/cooperator shall have the right to sublet without prior written approval of HPD and the housing company, which only shall be given in exceptional circumstances, including, but not limited to, military service. No tenant/cooperator shall have the right to assign his or her lease/occupancy agreement.
(3) No tenant/cooperator may accept any consideration or thing of value from a guest, invitee or other occupant in exchange for occupancy, whether temporary or permanent, unless such person is listed on the application, income affidavit or recertification of the tenant/cooperator and the tenant/cooperator continues to maintain the apartment as his or her primary residence.
(4) It is required that the apartment of the tenant/cooperator be at initial occupancy and continue to be his or her primary place of residence. The facts and circumstances to be considered in determining whether a tenant/cooperator occupies a dwelling unit as his or her primary residence include, but are not limited to, whether such tenant/cooperator
(i) specifies an address other than such dwelling unit as his or her place of residence or domicile in any tax return, motor vehicle registration, driver’s license or other document filed with a public agency,
(ii) gives an address other than such dwelling unit as his or her voting address,
(iii) sublets or permits unauthorized persons to occupy the dwelling unit without written approval by HPD and the housing company or attempts to assign such dwelling unit, or
(iv) spent less than an aggregate of one hundred eighty-three days in the preceding calendar year in the City at such dwelling unit (unless such individual is in active service in the armed forces of the United States or took occupancy at such dwelling unit during the preceding calendar year). However, no dwelling unit may be considered the primary residence of the tenant/cooperator unless the tenant/cooperator’s name is listed on income documentation that must be sent by the tenant/cooperator to the Department or to any other governmental agencies (for example: income affidavits, re-certifications or Section 8 forms) for the most recent preceding year for which such documentation was required. No dwelling unit may be considered the primary residence of the tenant/cooperator unless the tenant/cooperator provides proof that he or she either filed a New York City Resident Income Tax return at the claimed primary residence for each year of residency for which such return should have been filed or that the tenant/cooperator was not legally obligated to file such tax return pursuant to § 1705(b)(1)(A) and § 1751(a) of the Administrative Code due to residency in a foreign country or pursuant to § 11-1751(a) of the Administrative Code and § 6-01 of the Tax Law because the tenant/cooperator’s income for such year was below that required for the filing of a return or pursuant to § 893 or 894 of the Internal Revenue Code due to employment by a foreign government or international organization or due to any treaty obligation of the United States which applies to such taxpayer. The tenant/cooperator whose residency is being questioned will be obligated to provide proof that his or her apartment is his or her primary place of residence, including, but not limited to certified New York State income tax returns, utility bills, and voter registration data.
(5) The terms and conditions of all licensing agreements and all tenancies, including tenancies of commercial and professional space, shall be subject to HPD written approval.
(1) Definition of terms. Section 235-f of the Real Property Law of the State of New York shall apply to all housing companies, subject to the restrictions set forth in this section. As used in this subdivision (o), the term “occupant” shall mean a person, other than a tenant/cooperator, residing together with the tenant/cooperator in an apartment in a rental or mutual housing company development subject to these rules, who is not a party to the lease or occupancy agreement, including, but not limited to, a member of a tenant/cooperator’s immediate family, whose occupancy has been approved by the housing company and HPD.
(2) Admission and eligibility requirements for occupants.
(i) No tenant/cooperator shall permit a person to “co-occupy” the tenant/cooperator’s apartment without first obtaining the written approval of the housing company and/or HPD, except as specified in subdivision (p) of this section. Such approval shall be sought by the tenant/cooperator and the proposed occupant, submitting to the housing company through its managing agent the same financial information as is required to be submitted by any tenant/cooperator.
(ii) The housing company and/or HPD may reject any proposed occupant:
(A) For the same reasons that the housing company and/or HPD would reject the application of a person who applies to become a tenant/cooperator of a vacant apartment, provided that no rejection shall be based on the financial ability of a proposed occupant to pay the rent/carrying charge for the apartment if the tenant/cooperator has adequate financial ability to pay such rent/carrying charge; or
(B) when the acceptance of a proposed occupant would result in the apartment being occupied contrary to the occupancy standards for apartments set forth in subdivision (m) of this section; or
(C) when the acceptance of a proposed occupant would result in the apartment being occupied in violation of the income eligibility requirements of the Private Housing Finance Law or these rules, or
(D) when the acceptance of a proposed occupant would violate the income eligibility or other occupancy standards or requirements of any other federal, state or city program applicable to such apartment.
(3) Status of occupant.
(i) No occupant, except as otherwise set forth in subdivision (p) of this section, shall have any rights under the lease/occupancy agreement for the apartment or to succeed to the rights of the tenant/cooperator, if the tenancy of the tenant/cooperator terminates. Acceptance by the housing company of full or partial payment of rent/carrying charges from an occupant, by check or otherwise, shall not give the occupant any rights of tenancy under the lease/occupancy agreement or otherwise.
(ii) Each occupant shall be required to furnish to the housing company such financial and other information, on an annual or more frequent basis, that the tenant/cooperator is required to furnish to the housing company, in the form that the tenant/cooperator is required to furnish such information, including by affidavit. Where the rental or carrying charge for an apartment, or a rental surcharge, is based on the income of persons residing in the apartment, the income of the occupant shall be included in such com- putation.
(iii) The tenant/cooperator and the occupant shall occupy the apartment as their primary residence, and the occupant shall represent his or her intention to do so prior to commencing occupancy.
(1) The rights of family members of a tenant/cooperator who have requested to remain as the lawful tenant/cooperator are governed by policies and procedures set forth in this subdivision, except in those instances where this subdivision is preempted by the rules or regulations of other federal, state or city programs.
(2) As used in this subdivision the following definitions shall apply:
(i) “Tenant/Cooperator” shall mean any person named on a lease as a lessee or who is a party to a rental agreement or proprietary lease and obligated to pay rent or carrying charges for the use or occupancy of an apartment.
(ii) “Family member” shall mean:
(A) A husband, wife, son, daughter, stepson, stepdaughter, father, mother, stepfather, stepmother, brother, sister, nephew, niece, uncle, aunt, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, son-in-law, or daughter-in-law of the tenant/cooperator.
(B) Any other person residing with the tenant/cooperator in the apartment as a primary residence who can prove emotional and financial commitment and interdependence between such person and the tenant/cooperator. Although no single factor shall be determinative, evidence which is to be considered in determining whether such emotional and financial commitment and interdependence existed shall be the income affidavit filed by the tenant/cooperator for the apartment and other evidence which may include, without limitation, the following factors:
(a) longevity of the relationship;
(b) sharing of or relying upon each other for payment of household or family expenses, and/or other common necessities of life;
(c) intermingling of finances as evidenced by, among other things, joint ownership of bank accounts, person and real property, credit cards, loan obligations, sharing a household budget for purposes of receiving government benefits, etc.;
(d) engaging in family activities by jointly attending family functions, holidays and celebrations, social and recreational activities, etc.;
(e) formalizing of legal obligations, intentions, and responsibilities to each other by such means as executing wills naming each other as executor and/or beneficiary, granting each other a power of attorney and/or conferring upon each other authority to make health care decisions each for the other, entering into a personal relationship contract, registering a domestic partnership pursuant to Executive Order No. 48, dated January 7, 1993 or Local Law No. 27 of 1998, serving as a representative payee for purposes of public benefits, or other such formalizations;
(f) holding themselves out as family members to other family members, friends, members of the community or religious institutions, or society in general, through their words or actions;
(g) regularly performing family functions, such as caring for each other or each other’s extended family members, and/or relying upon each other for daily family services;
(h) engaging in other patterns of behavior, or other action which evidences the intention of creating a long-term, emotionally committed relationship.
In no event shall evidence of a sexual relationship between such persons be required or considered.
(iii) “Disabled person” shall mean a person who has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which is demonstrable by medically acceptable clinical and laboratory diagnostic techniques and which is expected to be permanent and to substantially limit one or more of such person’s major life activities.
(iv) “Senior citizen” shall mean a person who is sixty-two (62) years of age or older.
(3) Unless otherwise prohibited by occupancy restrictions based upon income limitations pursuant to federal, state or local law, regulations or other requirements of governmental agencies, if the tenant/cooperator has permanently vacated the apartment, any member of such tenant/cooperator’s family, who has resided with the tenant/cooperator in the apartment as a primary residence, as determined by 28 RCNY § 3-02(n)(4), for a period of not less than two years immediately prior to the tenant/cooperator’s permanent vacating of the apartment, and whose name is listed on any income documentation submitted by such tenant/cooperator to the Department or to any other governmental agencies (for example: income affidavits, re-certifications or Section 8 forms), for at least the two consecutive annual reporting periods immediately prior to the tenant/cooperator’s permanent vacating of the apartment or where such person seeking succession rights is a senior citizen or disabled person, for a period of not less than one year immediately prior to the tenant/cooperator’s permanent vacating of the apartment, and has appeared on such income documentation for at least the reporting period immediately prior to the permanent vacating of the apartment by the tenant/cooperator, or from the inception of the tenancy or commencement of the relationship if for less than such periods, and the apartment was and continues to be the primary residence of the member of the tenant/cooperator’s family that resided with such tenant/cooperator, may request to be named as a tenant/cooperator on the lease and where applicable on the stock certificate. In the event that HPD has authorized the housing company not to collect surcharges based on income documentation, the family member shall be asked to provide other evidence of occupancy for the required period of time. The burden of proof is on said family member to show use of the apartment as his or her primary residence during the required period to be eligible to succeed to possession.
(4) Family members do not have the right to succeed the tenant/cooperator in occupancy if the housing company terminates the tenancy of a tenant/cooperator for cause.
(5) The minimum periods of required residency set forth in this section shall not be deemed to be interrupted by any period during which the family member who is seeking succession rights temporarily relocates because he or she:
(i) is engaged in military duty;
(ii) is enrolled as a full-time student, and the family member resided in the subject apartment as a primary residence (as determined pursuant to paragraph 4 of subdivision (n) of this section) for at least two years immediately prior to the family member’s enrollment as a full-time student;
(iii) is not in residence at the apartment pursuant to a court order not involving any terms or provisions of the lease/occupancy agreement, and not involving any grounds specified in the Real Property Actions and Proceedings Law;
(iv) is engaged in employment requiring temporary relocation from the apartment;
(v) is hospitalized temporarily for medical treatment; or
(vi) has other reasonable grounds that shall be determined by HPD upon application by such person.
(6) The housing company shall secure credible evidence of the tenant/cooperator’s permanent removal from the apartment and the surrender of the apartment or the tenant/cooperator’s written declaration to vacate the apartment prior to the consideration of re-letting or succession to the apartment by a family member.
(i) Where a tenant/cooperator has died, the lease and shares of stock for such decedent’s apartment shall be surrendered by the decedent’s estate or survivors to the housing company.
(i-1) When a member of a tenant/cooperator’s family residing in the apartment as a primary residence as set forth in paragraph (3) of this subdivision is granted succession rights, the housing company shall transfer the shares, other value assigned to the apartment and/or the lease to said family member.
(i-2) When there is no succession claim or a claimant is denied succession rights, and a legally recognized estate of the deceased tenant/cooperator requests the value of the shares and other value assigned to such decedent’s apartment, the housing company shall remit such value, less any charges against such shares and other value that are permitted by this chapter, to such estate.
(i-3) When there is no succession claim or a claimant is denied succession rights, and no legally recognized estate of the deceased tenant/cooperator makes a claim for the value of the shares and other value assigned to such decedent’s apartment within one hundred twenty days of the death of said tenant/cooperator, such shares shall be transferred to the housing company and shall be offered for sale in accordance with this section. The housing company shall hold the value of such shares and other value assigned to such decedent’s apartment, less any charges against such shares and other value that are permitted by this chapter, for a legally recognized estate until such time that a lawful claim for such is recognized in a court of law.
(ii) If there is a legal dispute or claim involving who is rightfully entitled to the value of the shares, mortgage amortization and capital assessment contributions assigned to an apartment in a mutual housing company, such legal dispute or claim shall not affect the rights of such family members as set forth in paragraph (3) of this subdivision.
(iii) If a court of law determines that someone other than such family members as set forth in paragraph (3) of this subdivision is entitled to the value of the shares, mortgage amortization and capital assessment contributions assigned to the apartment, such matter shall be resolved between such party and such successor family members without recourse to the housing company.
(7) The housing company and/or HPD shall have the option of requiring any proposed successor to move to a smaller apartment in the development, in the event the apartment in question is or would become underoccupied according to occupancy standards set forth in subdivision (m) of this section.
(8) Where a family member applies to the housing company for permission to remain in occupancy as a tenant/cooperator, the housing company shall act on the application within thirty (30) days of receipt by either requesting that HPD approve the application or by denying the application and notifying the applicant family members in writing of its determination.
(i) In the event the housing company denies such application, the notice to the applicant shall set forth in writing the reasons why the evidence submitted was deemed inadequate and resulted in such denial and inform the applicant of the right to appeal and the method of appeal.
(ii) A family member whose application to succeed to a lease or an occupancy agreement has been denied by a housing company may, within thirty (30) calendar days of receipt of the written denial, appeal to the Commissioner of HPD (hereinafter “Commissioner”) or his or her designee. Such appeal shall include proof of service of a copy of such appeal upon the housing company. The appeal shall briefly set forth the reasons why the family member believes he or she is entitled to occupy the apartment and any errors or erroneous findings he or she believes are contained in the housing company’s determination. The Commissioner or his or her designee shall review the housing company’s determination and any additional information submitted by the applicant and shall issue the final agency decision with regard to the applicant’s application. The only review of this determination is pursuant to Article 78 of the Civil Practice Law and Rules.
(iii) Pending the agency’s determination, the applicant may continue in occupancy and shall be required to pay for the use and occupancy of the apartment in an amount equal to the monthly rental/carrying charge paid by the vacating tenant/cooperator.
(iv) In the event the agency determines that the applicant is ineligible to remain in occupancy then such applicant shall vacate the apartment or the housing company may seek to terminate the occupancy without any further approval by HPD.
(9) This subdivision shall not apply to staff housing where employment at the institution is a primary requirement for residency. It shall also not apply to housing designated for senior citizens or the disabled, unless such succeeding family member would have qualified for an apartment as an original tenant.
(1) A rental housing company may require all new tenants to deposit as security an amount equal to a maximum of two months’ rent, or such amount as may be approved by HPD at the time of signing the lease except where federal law or regulations prohibit. Commercial or professional tenants may be required to deposit as much rent as security as the housing company requires.
(2) Each rental housing company is required to open an interest bearing bank account in accordance with § 7-103 of the General Obligations Law.
§ 3-03 Tenant Income Limitations, Surcharges and Applicability of Federal § 8 Subsidy to Tenant/Cooperators in Residence.
(a) Income limitations.
(1) The dwellings in a rental development shall be available for persons or families whose probable aggregate annual income at the time of admission and during the period of occupancy does not exceed the greater of (i) the median income for such persons or families for the New York City metropolitan statistical area or (ii) seven times the annual rental, including the value or cost of heat, light, water and cooking fuel, except that in the case of families with three or more dependents, such ratio shall not exceed eight times the annual rental.
(2) “Probable aggregate annual income” shall mean the total income of the chief wage earner as reported in the New York State income tax return, plus the total income of each other member of the household, excluding therefrom (i) the income of each additional wage earner up to $20,000 or such amount as determined by State law, and (ii) such personal exemptions and deductions for medical expenses as are actually taken by each tax paying occupant on the New York State tax return. However, the income of a household member, under 21 years of age, who is a full time student shall not be included in the computation of such annual income.
(3) Subject to the conditions contained in paragraphs (1) and (2) supra, in determining the eligibility of tenant/cooperators in a mutual housing company development, there may be added to the total annual carrying charges an amount equal to six per cent of the original investment of a person or family in the equity obligations of such mutual housing company and where same is not included in the carrying charges payable to the mutual housing company, the value or cost to the tenant/cooperator of:
(i) heat, light, water and cooking fuel
(ii) the cost of repainting, upon the basis of $45 per room per year and
(iii) the cost of replacement of fixtures and appliances upon the basis of $10 per room per year.
(4) Notwithstanding other applicable provisions, families with two or more dependents whose probable aggregate annual income does not exceed one hundred twenty-five percent of the limitations as to income as determined pursuant to paragraphs (1) and (2) of this subdivision (a), shall also be eligible for admission to the dwelling of a project provided that any family becoming eligible for admission by reason hereof shall pay, from the time of admission, a rental surcharge as provided for in subdivision (b) of this section, computed on the basis of the income limitations applicable to such family in the absence of this provision.
| Schedule of Surcharges | |
|---|---|
| Income | Percent of Basic Rent Constituting Surcharge |
| Up to 100 percent of maximum income limit | None |
| From 100 percent and up to 105 percent of maximum income limit | None |
| From 105 percent and up to 110 percent of maximum income limit | 5 |
| From 110 percent and up to 115 percent of maximum income limit | 10 |
| From 115 percent and up to 120 percent of maximum income limit | 15 |
| From 120 percent and up to 125 percent of maximum income limit | 20 |
| From 125 percent and up to 130 percent of maximum income limit | 25 |
| From 130 percent and up to 135 percent of maximum income limit | 30 |
| From 135 percent and up to 140 percent of maximum income limit | 35 |
| From 140 percent and up to 145 percent of maximum income limit | 40 |
| From 145 percent and up to 150 percent of maximum income limit | 45 |
| From 150 percent and over | 50 |
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(1) Surcharges shall be payable monthly on a current basis by tenant/cooperators in occupancy based upon income realized during the prior calendar year and such income shall be reported on income affidavits to be furnished by tenant/cooperators.
(2) On February 15th of each year during occupancy, or at such other date as determined by HPD, the housing company shall distribute to each tenant/cooperator an affidavit to be executed by all occupants residing in the apartment as to the income realized by each of such occupants during the preceding calendar year. The information requested shall be set forth in a form of affidavit prescribed by HPD.
(3) The tenant/cooperator shall return to the housing company or its managing agent the income affidavit supplied by the housing company duly executed and notarized by April 30th of each year.
(4) The surcharges shall be computed by the housing company or its managing agent in sufficient time so that surcharge billings shall commence no later than July 1st of each year. The income affidavits will be subject to verification at any time, pursuant to such method as may be determined by HPD, including, but not limited to, spot check audits of certified income tax forms and verification by the New York State Department of Taxation and Finance as set forth in § 60(9) of the Private Housing Finance Law. Tenant/cooperators and other occupants selected for audit shall be required to provide a certified copy of the IRS or New York State income tax return for the audited year(s). The tenant/cooperators shall assume the cost of obtaining said certified copies. If HPD establishes a verification system with the New York State Department of Taxation and Finance, those tenant/cooperators found to have reporting discrepancies shall be obligated to furnish certified copies of IRS or New York State income tax returns. The housing company may, upon HPD’s approval, implement a policy imposing a penalty fee when additional income is found that would have resulted in an additional surcharge.
(5) A housing company or its designee is required to collect all surcharges computed on the basis of income received by all individuals in occupancy.
(1) In the event that a tenant/cooperator fails to return a fully completed affidavit by April 30th of each year, the income of such tenant/cooperator will be presumed to have exceeded the maximum allowable income by 150 percent or more. Written notice will be given informing such tenant/cooperator that the maximum surcharge will be imposed effective July 1st. In the event completed income affidavits are submitted after April 30th but prior to June 30th, the maximum surcharge will not be imposed. However a non-refundable administrative charge, payable to the housing company, will be applied. This charge cannot exceed $50.00. The housing company may remit half of any such charge collected to the managing agent to compensate for the additional administrative work.
In the event fully completed income affidavits are submitted after June 30th, a correction to the maximum surcharge billing will be made effective the first day of the month following the submission of such income affidavit. However, a non-refundable administrative charge, payable to the housing company, will be applied. This charge cannot exceed $150.00 for each month after June 30th in which the tenant/cooperator has not submitted a fully completed income affidavit. This charge must be made payable to the housing company. The housing company may remit half of any such charge collected to the managing agent, in accordance with the terms of the applicable contract, to compensate for the additional administrative work. In extenuating circumstances, HPD may permit reimbursement of excess surcharge to the tenant/cooperator.
For purposes of this paragraph, an income affidavit in which the tenant/cooperator’s household income is not disclosed is not a fully completed income affidavit.
(2) [Reserved.]
(3) Whenever changes occur in rentals or carrying charges or any component thereof used in the computation of surcharges, surcharges shall be recalculated by the housing company or its managing agent.
(4) A housing company cannot bring an eviction proceeding against any tenant/cooperator who fails or refuses to pay surcharges without the issuance of a certificate of eviction by HPD following an administrative hearing by an HPD designated hearing officer in accordance with 28 RCNY § 3-18.
(5) Housing companies or their managing agents shall submit a copy of the surcharge information tabulation sheets, and all changes thereto, together with copies of the income affidavits for HPD review and evaluation. Surcharge records shall be kept available by the housing company or its managing agent for inspection by HPD.
(6) Tenant/cooperators and other occupants shall be required by HPD to furnish certified copies of their IRS and New York State income tax returns. The cost for the certified report is to be borne by the tenant/cooperator.
(1) Where a tenant/cooperator anticipates a long-term reduction in income, resulting from death of a wage earner, retirement, or other such circumstances, said tenant/cooperator must submit documentation of such interim change in income to the managing agent. The managing agent shall verify the documentation submitted, and if a change in income is so determined, shall remove the surcharge and inform HPD of such action. HPD reserves the right to disapprove the action of the housing company.
(2) Where a tenant/cooperator anticipates a temporary reduction in income, such as job loss, temporary illness, or other such circumstances, said tenant/cooperator must submit documentation of such temporary reduction in income to the managing agent. The managing agent shall verify the documentation submitted, and if the interim change in income is so determined, shall reduce, eliminate or defer collection of surcharges for a reasonable period of time or shall arrange for an extended payment plan.
(3) The managing agent must maintain supporting documentation for all agreements which shall be available for review by HPD. Any tenant/cooperator shall have the right to appeal any determination under this subdivision (f) to HPD.
§ 3-04 Housing Company Funds and Bonds.
(a) Bank accounts. All funds of the housing company shall be deposited in banks or savings and loan associations maintaining an office in the State of New York in accounts which are insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation. All bank accounts shall be maintained in the name of the housing company and in a manner and form prescribed by HPD.
§ 3-05 Rent Collection.
(a) Rent collection.
(1) Rent/carrying charges of tenant/cooperators is payable on the first day of each month.
(2) It is the responsibility of the managing agent to collect rent/carrying charges and take the necessary actions to collect past due rent/carrying charges.
(3) A charge for late payment of rent/carrying charges may be implemented by each housing company. In order to implement a late charge, a written request must be submitted to HPD setting forth the dollar amount of the proposed charge and the date of the month it is to be billed. In the case of a mutual housing company, a Board of Directors Resolution certified and acknowledged by the Secretary of the Corporation setting forth the adoption of the late charge by the Corporation shall be submitted to HPD. HPD shall respond in writing. Late charges shall be considered additional rent.
(1) Where collection efforts on the part of the housing company, managing agent and counsel have not been successful, the housing company may turn over uncollected accounts to a collection agency licensed by the New York City Department of Consumer Affairs.
(2) Where all efforts as outlined above prove to be unsuccessful and an account appears to be uncollectible, write-offs should be handled as follows:
(i) Accounts receivable not in excess of three months’ rent may be written off at discretion of the housing company.
(ii) Accounts receivable equal to or in excess of three months’ rent may be written off only after approval by HPD. Requests for such approval must be supported by a detailed description of collection efforts and such other material as may be required by HPD.
(iii) Except for cases of fraud and misrepresentation, counsel to the housing company may be permitted to compromise and settle all accounts of vacated tenants turned over to him or her regardless of the amount involved when such compromise and settlement are of an urgent nature and are approved by the housing company. HPD must be advised of such settlements in cases where indebtedness equaled or exceeded three months’ rent.
§ 3-06 Resale of Cooperative Shares.
(a) Procedures.
(1) A shareholder desiring to sell his or her shares in a mutual housing company shall notify the housing company in writing no later than 90 days in advance of his or her intention to sell his or her shares to the housing company or its designee, pursuant to the provisions of the housing company by-laws and occupancy agreement.
(2) The shareholder shall transfer his or her shares to the housing company and shall thereafter surrender possession of the apartment at the agreed upon time pursuant to arrangements made with the housing company. After the shareholder has surrendered possession of the apartment, the housing company will inspect the apartment to determine necessary repairs. Any surcharge or any other fees and charges owing to the housing company shall be deducted from the equity due the cooperator.
(3) The housing company shall enter the transfer of shares on its books.
(4) The shareholder shall be responsible for carrying charges and submetered electrical charges for up to 90 days after surrendering possession of the apartment or until the housing company transfers the shares to the new owner, whichever occurs earlier.
(5) (i) If a tenant/cooperator seeks to withdraw his or her offer of sale of shares, and no commitment has been made to a purchaser, the housing company at its option, may permit the tenant/cooperator to withdraw his or her offer, and may charge the tenant/cooperator a reasonable fee for this service.
(ii) If, within an 18 month period, shares for the same apartment are re-offered for sale after a previous withdrawal pursuant to subparagraph (i) of this paragraph, the tenant/cooperator must post security for administrative costs in the amount of two months’ carrying charges. If the shares for the apartment are sold, the security shall be refunded. If the shares for the apartment are withdrawn again, the security shall be forfeited.
(6) The occupancy agreement for each mutual housing company shall set forth the obligations of each shareholder with respect to the condition of the unit at the time that such shareholder vacates the unit.
(7) In the case of National Housing Act of 1937, as amended, § 223(f) refinanced mutual housing companies, where the appliances were included as security for the insured mortgage, the outgoing shareholder shall be required to leave behind the appliances which were in place at the time of refinancing or to replace them with appliances of equal size and amenities. In the case of non-refinanced mutual housing companies, a board of directors may adopt a uniform policy whereby either the incoming or outgoing cooperator shall be responsible for providing a stove and refrigerator for his or her apartment. A board may adopt a policy which apportions the cost of appliances between the incoming and outgoing shareholders as follows: As appliances require replacement, the cooperator in residence would be required to purchase the new appliance(s). A life-expectancy schedule would be established for each type of appliance and the appliance would be depreciated over that pre-determined time period. If the cooperator in residence vacated the apartment any time during the depreciation period, he or she would be reimbursed for the remainder of the period by the incoming cooperator. If the depreciation period were over when the cooperator vacated, the incoming cooperator would be obligated to purchase new appliances and the process would commence again. The depreciated appliances would become the property of the housing company. Any policy adopted must be applied uniformly to all apartments.
(8) The mutual housing company shall follow the chronological order of its waiting list in the sale of shares. In the event a mutual housing company has substantially depleted its waiting list, the mutual housing company shall seek potential applicants. A mutual housing company and its managing agent shall only open a closed waiting list in accordance with the requirements of 28 RCNY § 3-02.
(1) The resale price of shares in a mutual housing company shall be fixed by the mutual housing company, subject to the approval of HPD and shall be equal to
(i) the consideration the selling tenant/cooperator paid for such shares and
(ii) any capital assessments and voluntary capital contributions approved by HPD and paid by the selling tenant/cooperator to the mutual housing company, to the extent not already included in the consideration paid for such shares, and,
(iii) if established by the mutual housing company, a proportionate share of the actual aggregate amortization paid on all existing and prior mortgages on the project in reduction of total outstanding principal indebtedness during such period as shall be fixed by the board of directors of the mutual housing company, to the extent not already included in the consideration paid for such shares, and
(iv) reasonable non-refundable administrative charges, not to exceed $150. Said administrative charge is to be retained by the mutual housing company.
(2) The aggregate amount to be paid to the selling tenant/cooperator with respect to the sale of the selling tenant/cooperator’s shares shall be fixed by the board of directors of the mutual housing company, subject to the approval of HPD, and shall be equal to
(i) the consideration the selling tenant/cooperator paid for such shares,
(ii) any capital assessments and voluntary capital contributions approved by HPD and paid by the selling tenant/cooperator to the mutual housing company, to the extent not already included in the consideration paid for such shares, and
(iii) a proportionate share of the actual aggregate amortization paid by the selling tenant/cooperator on all existing and prior mortgages on the project in reduction of total outstanding principal indebtedness during such period as shall be fixed by the board of directors pursuant to subparagraph (iii) of paragraph (1) of this subdivision (b), to the extent not already included in the consideration paid for such shares. To the extent that a selling tenant/cooperator may be entitled to an amount less than the resale price of his or her shares, the difference shall be retained by the mutual housing company.
(3) The Board of Directors may, subject to the approval of HPD, establish a general policy pursuant to which a selling tenant/cooperator who had occupied more than one dwelling unit is paid an amount measured by his or her proportionate share of the actual aggregate amortization paid during his or her period of occupancy on all existing or prior mortgages on the project. To the extent that a selling tenant/cooperator may be entitled to an amount greater than the resale price of shares, the difference may be paid to the selling tenant/cooperator by the mutual housing company.
(4) The “proportionate share of the actual aggregate amortization paid on all existing and prior mortgages on the project” referred to in paragraph (1) of subdivision (b) of this section shall be in the same ratio to such actual aggregate amortization as the number of shares held by the selling tenant/cooperator at the time of sale bears to the total number of shares of issued and outstanding capital stock of the mutual housing company during such period.
(5) Nothing contained in this section shall prohibit the continued use of any method of calculating resale price adopted by a mutual housing company and approved by HPD prior to July 26, 1983.
(6) Participation in the full amortization provisions of this section is voluntary and not mandatory.
(7) A mutual housing company electing to amend its by-laws pursuant to this subdivision (b) shall submit to HPD for its approval, a Board of Directors Resolution certified and acknowledged by the Secretary of the Corporation setting forth the adoption of this provision and a fully executed copy of a by-law amendment certified by the Secretary of the Corporation.
(a) such spouse either was an initial occupant of the applicable dwelling unit with such shareholder or was included in at least two of the income affidavits filed by such shareholder during the time period immediately preceding such shareholder’s request to add the spouse as co-owner of shares and a co-signatory of such occupancy agreement;
(b) such spouse has occupied the applicable dwelling unit as his or her primary residence for at least two consecutive years and continues to occupy such dwelling unit as his or her primary residence at the time of such request; and
(c) such spouse and the shareholder intend in good faith to remain joint occupants of the applicable dwelling unit. Any spouse that becomes a co-owner of shares and a co-signer of the applicable occupancy agreement pursuant to these requirements also shall be considered a shareholder of record for such dwelling unit.
§ 3-07 Management and Operations.
(a) Special services. A housing company may furnish tenant/cooperators with special services not provided for in the lease or occupancy agreement such as bus, laundry, television antenna or other services upon such terms as HPD shall approve in writing. These services and all facilities used in connection therewith, shall be made available to all tenant/cooperators on equal terms. Discontinuance of special services at the request of a tenant/cooperator shall not entitle the tenant/cooperator to a reduction in rent or carrying charges unless HPD shall otherwise direct.
(1) Each housing company shall maintain its structures, grounds, elevators, boilers and other equipment, either by contract or by qualified employees in such a manner as to preserve the property, to protect the health and safety of the residents and employees, and to provide economical operation of the development.
(1-a) Periodically, HPD will require each housing company to submit a physical condition report prepared by an independent qualified consultant acceptable to HPD. The report will determine the physical condition of the property and all appurtenant equipment. The report must specify all items and equipment that are in need of repair or replacement or which have exceeded their useful lives or are projected to need repair or replacement within five years. The report must also include a plan to address its findings, including an explanation of how any necessary work will be financed.
(2) Contracts for building services, repairs, replacements, redecorating or improvements and supplies shall be let on the basis of lowest cost compatible with quality of performance, material and workmanship. In addition, any contract for over $100,000 also must be let on the basis of no less than three competitive bids and shall be submitted for HPD written approval. The housing company’s submission shall include the three bids plus a contract executed by the successful bidder as well as the other documents as set forth below.
Notwithstanding the foregoing, HPD reserves the right to require any individual housing company to submit for approval any or all contracts over $5,000.
In the case of a mutual housing company, the submission shall be accompanied by
(i) a certified copy of Resolution of the housing company’s Board of Directors acknowledged by the Secretary of the Corporation, approving the contract, bearing the housing company’s corporate seal and
(ii) the housing company’s attorney’s certification that the proposed contract is in compliance with the rules of HPD.
In the case of a rental development, the president or managing general partner of the housing company or his or her duly authorized designee must sign the contract.
The following language shall be included in all contracts for building services, repairs, replacements, redecorating and improvements: “Material, equipment and workmanship shall be subject to the inspection and approval of HPD or its duly authorized agent at the discretion of HPD during the progress of the work and before final payment is made on the contract.”
Every contract subject to HPD approval shall contain the following language: “This agreement is subject to written approval by HPD. No work shall commence until this agreement is approved by HPD.”
(3) The housing company or its managing agent shall require that all firms performing work on the housing company’s behalf, supply evidence in the form of a certificate of insurance for workers’ compensation and commercial general liability, naming the housing company and HPD as additional insured parties. For contracts subject to HPD approval, such certificates must be submitted to HPD for its written approval before any such contract is executed by the housing company. The liability limits for workers’ compensation shall be statutory, and the commercial general liability insurance shall be in standard comprehensive general liability form, naming the housing company and HPD as additional insureds, against all claims for bodily injury, death or property damage in an amount not less than $1,000,000 per occurrence, $2,000,000 annual aggregate for bodily injury and property damages.
(4) On all contracts over $100,000, the successful bidder shall, not later than the time of its delivery of the executed contract, deliver to the housing company and HPD an executed Performance Bond for 100 percent of the accepted bid as surety for the faithful performance of the contract and an executed Payment Bond for 100 percent of the accepted bid as surety for the payment of all persons performing labor or furnishing materials in connection therewith. Alternatively, the contractor may submit an unconditional, irrevocable letter of credit from a New York Clearing House bank equal to at least 10 percent (10%) of the dollar amount of the contract which shall provide that the full amount may be drawn down by the housing company upon delivery of a letter certifying default of the contractor. Request for waiver of a bond or letter of credit shall be submitted in writing to HPD by the housing company.
(5) The following language shall be included in all contracts that are subject to HPD approval for building services, repairs, replacements, redecorating and improvements: “Contractor shall not assign any monies due or to become due hereunder without the written consent of the Owner and HPD, nor shall Contractor subcontract or assign any of the work without prior written approval by the Owner and HPD of such sub-contractor or assignee.” In addition, such contracts shall contain the following language: “This agreement is subject to written approval by HPD.”
(6) In the case of emergencies, where immediate employment of a contractor is deemed necessary by the housing company to prevent damage to property or prevent injury to persons, submission to HPD of the data required by paragraph (2) above may be made after execution of a contract or performance of the work, provided that such submission is made promptly following the date on which such emergency arose. However, if the emergency occurs during working hours, notification of emergency should be made by telephone to HPD and verbal approval obtained prior to commencement of repairs.
(7) All contracts for building services or maintenance of buildings equipment on an annual or time basis that require HPD approval pursuant to paragraph two of this subdivision shall be submitted to HPD for written approval before execution by the housing company, and prior to expiration of the previous contract, if any. Where a contract that was not previously approved for automatic renewal is to be renewed for an increased amount, the renewal contract must be submitted for approval to HPD at least thirty (30) days prior to expiration of the existing contract. All such renewal contracts for building services or maintenance of buildings equipment shall provide that they are subject to termination without cause upon thirty (30) days written notice by the housing company or upon ten (10) days written notice by HPD, and immediately upon notification by the housing company or HPD that the contractor has materially breached his or her contract. After termination, no amounts shall be owed except for work actually completed.
(8) In the event that any director, officer, shareholder, employee or agent of any housing company shall be directly or indirectly connected with any person, firm or corporation which may submit any bid, or to whom any contract is proposed or awarded, pursuant to the provisions of paragraph (2) or (5) hereof, a statement setting forth the nature of such connection shall be included in the submission to HPD and shall be made a part of the minutes of the meeting wherein the contract was approved.
(1) All contracts and retainer agreements with attorneys and accountants shall be subject to the prior written approval of HPD and to termination without cause by HPD or the housing company upon thirty (30) days written notice and immediately by written notice by the housing company or HPD if there has been a material breach of contract. After termination, no amounts shall be owed except for work actually completed. Managing agent contracts are subject to 28 RCNY § 3-16.
(2) An accountant retained by a housing company shall be an independent C.P.A. licensed to practice under the laws of the State of New York.
(3) No company, association, director, officer, employee, agent or other person shall solicit or receive, directly or indirectly any commission, bonus, gratuity, fee or any other payment not expressly authorized by HPD from any individual, firm or corporation which may submit any bid, or to whom any contract is proposed to be awarded.
(4) Violation of this subdivision (c) by any company, association, director, officer, employee, agent or other person shall be cause for discharge and any other appropriate action; and a provision to such effect shall be incorporated in all employment agreements entered into by the company.
(1) The number, types, qualifications and rate of pay of the employees required for the proper maintenance and operation of the housing company’s properties shall be subject to review by HPD and the housing company shall submit staffing plans to HPD for its review and approval, if required by HPD.
(2) The rental of an apartment in a development by an employee of the housing company shall be subject to the same rules and procedures as are applicable to all other tenants, except that income limitations, occupancy standards, and surcharges shall not apply when the employee is living at the development for the furtherance of the housing company’s interests. However, the number of apartments, if any, which may be set aside for such employees shall be subject to the approval of HPD. The agreement shall provide for the termination of occupancy by the employee when his or her services are discontinued. Such resident employees shall not be shareholders, if such company is a mutual housing company.
(1) Physical inspection. All developments are subject to physical inspection. HPD may retain a third party to make inspections or may rely on inspections made by others. The inspector shall carry out his or her inspection together with a representative of the housing company. In the case of a rental development, a representative of the duly constituted Tenants Association may join in the inspection. The Tenants Association may make a list of complaints available to HPD in advance of the inspection date; the inspector shall notify the representative in advance of the date and time of the inspection. All inspections shall be made in the course of normal business hours. HPD or its designee shall issue a written inspection report which shall be sent to the owner or President of the Board of Directors, the managing agent and, in the case of a rental development, the Tenants Association. The managing agent, with the knowledge and approval of the housing company, shall cause all emergency repairs to be made immediately and will comply expeditiously with the requirements of the inspection report. The managing agent will advise HPD in writing of actions taken to comply with recommendations in the inspection report. To facilitate the physical inspection of a development, the following records shall be maintained:
(i) Apartment painting, maintenance and repair files.
(ii) A log of repairs or improvements to plant, structures and grounds.
(iii) A log of service interruptions, such as heat, hot water, elevator and utilities.
(iv) log of contracts, including, but not limited to, name of contractor, fee and expiration date.
(v) A log of general supplies, tools and equipment.
(vi) An oil consumption log setting forth delivery date, gallonage and price per gallon; or a steam or gas consumption log, where applicable.
(vii) Electricity usage log (monthly kwh consumed).
(2) Fiscal examination of operations. HPD shall at its discretion conduct audits and reviews of housing company financial operations. The housing company shall cooperate in making all books and records available for such audit and review. To facilitate the examination of data, the following records shall be maintained and (where indicated) sent to HPD:
(i) Permanent individual tenant/cooperator files which shall include the initial application forms, credit checks, home visit reports where applicable, and other supporting documentation. In addition, the file should contain all income affidavits, tenant/cooperator leases and occupancy agreements and any special forms, riders, documents and information which may pertain to the eligibility of said tenant/cooperator for his or her apartment and any and all subsidies which may be applicable.
(ii) A quarterly vacancy report to be sent to HPD within thirty days of its preparation.
(iii) Current tenant/cooperator rent roll to be sent to HPD every twelve months.
(iv) A monthly operating statement showing rent/carrying charges and other receipts, disbursements, aged accounts payable and aged rent/carrying charge arrears, including the name of occupant in arrears, his or her apartment number and dollar amount of arrears to be sent to HPD no later than thirty days after the end of the month for which such monthly operating statement was prepared.
(v) An annual audited financial statement which shall be prepared for and submitted to HPD no later than one hundred twenty (120) days from the end of the audited fiscal period.
(3) In the event the income and reserves of the housing company shall be insufficient, as determined by HPD, to complete all required repairs, HPD, in conjunction with the housing company, shall establish priorities.
§ 3-08 Reserves.
(a) Reserves. Each housing company shall be required to maintain a capital repair and replacement reserve account.
(1) Deposits.
(i) Annually, each housing company must deposit into the capital repair and replacement reserve account three hundred dollars ($300) per dwelling unit in equal monthly installments.
(ii) If the capital repair and replacement reserve account balance does not equal or exceed the greater of one thousand dollars ($1,000) per dwelling unit or twenty-five percent (25%) of the housing company’s rent roll, such housing company must deposit three percent (3%) of its rent roll on a monthly basis to the capital repair and replacement reserve account until its balance is raised to equal or exceed the greater of one thousand dollars ($1,000) per dwelling unit or twenty-five percent (25%) of the housing company’s rent roll.
(2) Disbursements. No disbursements from the capital repair and replacement reserve account can be made without prior written authorization by HPD.
Further resolved, that this resolution shall remain in full force and effect unless and until revoked with HPD’s written consent. A certified copy of the housing company’s resolution opening the bank account and a photocopy of the housing company’s signature card filed with the bank shall be submitted to HPD’s Division of Housing Supervision.
(1) If interest-bearing bank accounts are utilized, passbooks and bank records shall be annotated as follows: Withdrawals from this account are limited to checks payable to (Housing Company), Capital Repair and Replacement Reserve Account, (Name of bank in which reserve account is maintained).
(2) If Federal obligations are purchased, a custodial agreement for the bank in which the “Capital Repair and Replacement Reserve Account” must be maintained. This agreement shall require that all interest and proceeds from liquidation or redemption of securities be re-deposited to the “Capital Repair and Replacement Reserve Account.” A photocopy of the custodial agreement shall be submitted to HPD.
§ 3-09 Insurance.
(a) General. The following is intended to serve as minimum requirements for housing companies in arranging an insurance program to provide protection against the usual hazards experienced during the course of operation. Since the same conditions may not prevail in all developments, separate studies should be made as to the actual exposures and hazards and the insurance coverage necessary to meet them. It is incumbent upon all housing companies to see that proper insurance coverage is maintained at all times and that coverages are modified or changed to meet changing conditions. Copies of all insurance policies and renewals shall be transmitted promptly to HPD. Furthermore, all insurance coverage that is maintained by housing companies must be issued by an insurance company in good standing licensed to issue insurance in New York State.
(1) Upon opening a corporate or sales office.
(i) Public liability (Comprehensive General Liability Form) Minimum limits of $1,000,000 per occurrence, $2,000,000 annual aggregate for bodily injury and property damage.
(ii) Workers’ compensation. As required by statute.
(iii) Disability benefits. As required by statute.
(iv) Blanket fidelity bond. Appropriate limits as determined by HPD.
(v) Hold up. Inside and outside. Money and securities. (Broad Form if possible where safe is located on premises.)
(2) Upon acquisition of site.
(i) Liability coverage. To be endorsed to include site and any buildings thereon.
(ii) Fire insurance. Housing company should obtain this coverage on its buildings and/or personal property.
(3) Upon commencement of construction of the limited-profit housing company development. The following coverages are generally supplied by the General Contractor pursuant to the terms of the construction contract. Contractors shall be required to submit the required policies delineated in this section to HPD before the commencement of any construction work and operations shall not be allowed to commence until coverage required has been approved by HPD.
(i) Contractor’s public and protective liability and property damage. Contractor shall provide such coverage to protect him and his subcontractors against claims for property damage and personal injury, including accidental death, in the sum of $1,000,000 per occurrence, $2,000,000 annual aggregate bodily injury and property damage.
(ii) Owner’s protective liability and property damage. Contractor shall provide such coverage to protect the housing company against claims for property damage and personal injury including accidental death caused by the operation of the contractor or his subcontractors during the performance of the work in the sum of $1,000,000 per occurrence, $2,000,000 annual aggregate bodily injury and property damage.
(iii) Workers’ compensation. As required by statute.
(iv) Disability benefits. As required by statute.
(v) Fire and extended coverage insurance. Pursuant to the terms of the Construction Contract. It is recommended that a builder’s risk “Completed Value” form of policy be used. Adequate coverage shall be maintained for any materials which are stored away for the development site. It is recommended that the housing company rather than the contractor obtain this coverage.
(vi) Boiler. Minimum of $1,000,000 pursuant to the terms of the Construction Contract. It is recommended that the housing company rather than the contractor obtain this coverage.
(vii) Payment and performance bond. Pursuant to the terms of the Construction Contract.
(4) Upon occupancy of buildings. Policies carried during the initial or construction periods of a housing development for which there is a continuing exposure thereafter may remain in force and the policies adjusted in accordance with requirements during later conditions.
(i) Comprehensive general liability. Minimum limits of $1,000,000 per occurrence, $2,000,000 annual aggregate for bodily injury including accidental death and property damage. This policy should include coverage for the maintenance or use of the premises as well as for all elevators which are located in the development.
(ii) All Risk Property Policy. Policy should be written in an amount equal to at least 90 percent of the insurable value of the development. The prior approval of HPD shall be obtained for a deductible clause in excess of $5,000. Fire policies shall contain a provision that the settlement of all fire losses shall be subject to the approval of HPD. Policies shall be endorsed to cover the interest of The City of New York, as first mortgagee.
(iii) Rents. The rental income of the development should be written on a 100 percent co-insurance basis.
(iv) Workers’ compensation. As required by statute.
(v) Disability benefits. As required by statute.
(vi) Fidelity Bond. 3D Comprehensive form of policy is recommended for this coverage. The amount of the coverage shall be two and one-half times the value of the monthly rent roll plus any other fluid assets. However, in certain cases using the two and one-half times factor may make the amount of coverage unrealistic and the cost prohibitive for the risk involved. Therefore, HPD reserves the right to determine, on a case by case basis, what amount is sufficient. A rider should include coverage for a managing agent. Furthermore, for mutual housing companies, a rider can also be added to include the interest of all non-compensated officers, directors and committee members.
(vii) Boiler and machinery. HPD recommends a “Comprehensive” form of coverage be used or a rider be added to the “Broad” form to cover “Miscellaneous Electrical Equipment”. The amount of insurance to be carried shall be sufficient to cover the maximum probable damage to the property of the development and property of others that may arise out of any accident occurring through the operation of such equipment, but in any event not less than $1,000,000. Policies shall be endorsed to cover the interest of the City of New York, as first mortgagee.
(viii) Directors and officers. For mutual housing companies. Minimum limit of $1,000,000.
(ix) Umbrella liability. The minimum requirement for under 150 units $1,000,000; 151 to 500 units $5,000,000; 501 to 1,000 units $10,000,000; over 1,001 units $15,000,000.
(x) Miscellaneous risks.
(A) Automobiles. Any vehicle owned by the housing company shall be covered by automobile liability insurance with minimum limits of $250,000/500,000 for bodily injury, including accidental death, and at least $100,000 for property damage. For damage to the vehicle itself, comprehensive fire and theft shall be obtained. For automobiles owned by employees and officers of the housing company, used on behalf of the company, proper liability coverage shall be obtained with limits of $250,000/500,000 for bodily injury including accidental death and $100,000 for property damage.
(B) Sales and management companies. Where the housing company employs independent sales or managing agents, these agents or their employees who are responsible for the handling of housing company monies shall, without expense to the company, be bonded by a Blanket Position Bond, in favor of the housing company and a copy of such Blanket Position Bond shall be submitted to HPD.
(C) Contractors, concessionaires, and similar professionals. In the event that repair, alterations, exterminating or any other work or services shall be performed by the housing company, the housing company shall require that all firms performing such operations, supply evidence that workers’ compensation and public liability insurance are in force. The limits for liability shall be at least $500,000 for bodily injury and property damage, combined single limit. It may be that certain contractors and concessionaires, by the nature of the liability factor for the work being done, and the cost of the contract, would have a higher risk factor. In that event we reserve the right to require, on a case by case basis, a higher amount for bodily injury. The housing company and HPD shall be named as an Additional Insured.
(D) Commercial tenants and licensees. Must carry a minimum of $1,000,000 for bodily injury and property damage, combined single limit. It may be that certain commercial tenants and licensees, by the nature of their business, would have a higher bodily injury risk factor. In that event we reserve the right to require, on a case by case basis, a higher amount for bodily injury. The housing company and HPD shall be named as an Additional Insured.
(E) Architects and engineers. Must furnish evidence of their liability coverage.
(F) For subparagraphs (x)(C) and (x)(D) above, the housing company and HPD shall be named as an Additional Insured.
(G) Insurance coverage shall be reviewed prior to the anniversary date of each policy with respect to the adequacy of coverage. HPD may direct a housing company to increase the amount of its coverage to reflect current replacement value where appro- priate.
(1) The housing company shall give immediate notice to HPD of the occurrence of any damage to its property caused by fire or any other hazards, whether or not covered under any of the above insurance coverages.
(2) If damage to housing company property is sustained at other than normal business hours, the loss must be reported to HPD on the first regular business day following the occurrence.
(3) Personal injury or fatality as a result of a fire or other than natural causes must be reported to HPD immediately.
(4) In the event that a housing company decides to employ a Public Adjuster for the purpose of negotiating a settlement with its insurance company, the housing company must request approval from HPD in writing. Approval by HPD must be confirmed in writing to the housing company.
(5) Unless HPD exercises its rights under the mortgage to apply insurance proceeds to the mortgage, all checks in payment of losses shall clear through HPD Insurance Unit. HPD representatives will inspect to see that the damaged property has been restored to satisfactory condition, after which time the checks shall be released to the housing company.
(1) The housing company shall cause to be placed and kept in force all forms of insurance needed to protect the company adequately or required by law, including but not limited to workers’ compensation insurance, disability insurance, public liability, boiler insurance, and all risk property insurance. All of the various types of insurance coverage required for the benefit of the housing company shall be placed with such companies, in such amounts, and with such beneficial interest appearing therein as shall be acceptable to the housing company and the New York State Division of Housing and Community Renewal, and otherwise be in conformity with the requirements of the mortgage.
(2) The housing company shall provide or make provision for a managing agent’s bond naming the New York State Housing Finance Agency as obligee with an amount and an insurance company acceptable to the housing company, the New York State Housing Finance Agency, the New York State Division of Housing and Community Renewal and HPD.
§ 3-10 Rent and Carrying Charge Increases.
(a) Procedure for request of increase.
(1) The housing company shall prepare the requisite petition, application, or motion for an increase in the maximum rental or carrying charges per room and submit same to HPD for approval as to form and authorization for hearing procedures.
(2) In the event the housing company fails to submit said petition, application or motion as set forth in paragraph (1) above, HPD may, upon its determination of the need for an increase in rents or carrying charges, promulgate a petition preparatory to effectuating the hearing, which petition need not be in the same form as delineated in 28 RCNY § 3-10(b).
(1) HPD shall hold a public hearing before acting upon any application or motion for an increase in the maximum rental/carrying charges per room to be charged tenant/cooperators of dwellings where HPD is the supervising agency under the provisions of the Private Housing Finance Law. Said hearing shall be held upon not less than thirty (30) days notice to the tenant/cooperators, provided, however, that with respect to a mutual housing company, the board of directors thereof must hold an informational meeting with the tenant/cooperators prior to any such hearing to discuss the reasons for the rental/carrying charges increase request. Such notice shall have annexed to it a copy of the application or motion for increase in rental/carrying charges and shall set forth the facts upon which the application or motion is based. A development assisted by a Federal Section 236 contract must also comply with Federal rent/carrying charge increase requirements.
(2) No applications or motion for an increase in the maximum rental/carrying charges per room shall be entertained or acted upon hereunder for a period of two years from the date of any previous order of the supervising agency for the increase of maximum rental/carrying charges affecting the same dwelling.
(3) In the event that a hearing having been scheduled is adjourned for any reason whatsoever, then notice of such adjourned date shall be posted near the elevators, on bulletin boards or in any other conspicuous places on the lobby floor; such notice shall constitute compliance with these regulations.
(1) An application for rental/carrying charge increases shall be submitted to HPD, together with a copy of the notice proposed to be delivered to the tenant/cooperators. (For the purpose of this subdivision (c) the term “rental” shall mean and be interchangeable with the term “carrying charges” as used for a mutual company and the term “tenant” shall mean and be interchangeable with the term “cooperator”).
(2) The notice to be delivered to the tenants shall first be submitted to HPD for its approval and shall contain:
(i) In bold print, at the top,
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(ii) In the body of the notice:
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(3) Applications for rent increases shall be verified and submitted in quadruplicate. They shall contain:
(i) Name of housing company, location of development, date of organization and number of rental rooms.
(ii) Dates of completion and of occupancy.
(iii) Status with respect to tax exemption.
(iv) Present average room rent.
(v) Present income from non-dwelling spaces.
(vi) Capitalization, authorized and actual.
(vii) Status of dividend and debenture interest payments accruing from date of initial occupancy.
(viii) Assessed valuation. Land and land improvements.
(ix) Such other information and data as may be pertinent.
(x) Request for a specific rent increase.
(4) The application shall have annexed the following exhibits and schedules:
Exhibit I. A three year projection of operations on a cash flow basis as per a format available from HPD, complete with applicable schedules. In addition to the three years an actual base year should be used as a starting point reflecting the information in the latest certified statement of financial condition as prepared by a certified public accountant.
Exhibit II. A calculation of the increase required on an average per room per month rate in a format available from HPD. This calculation will commence with beginning working capital or deficit working capital as of the beginning of the projection. Include total deficits projected for the length of the projection and one month’s working capital to be left at the end of the period. This deficit then divided by the number of months between expected day of increase and the end of projections and that amount divided by the number of rental rooms in the development will produce the required per room per month dollar increase.
Exhibit III. A three year projection of operations on a cash flow basis after reflecting the increase calculated in Exhibit II above. All applicable schedules will be provided as required in Exhibit I.
Exhibit IV. The most recent annual audited financial statement for the housing company. It should be noted that working capital or negative working capital resulting from prior years’ operations, as well as required reserves not funded, must be considered in the calculation of required increase in the petition. The format for these exhibits and schedules is available from HPD. HPD may require further information on any of the matters listed above or on any other matters and may request an amended or superseding application. Such additional information shall be verified and filed in quadruplicate within the time stated by HPD.
(1) If the papers submitted to HPD are in form sufficient to warrant consideration by such agency, the applicant shall be notified in writing. Such notification shall include the date and place established by HPD for the public hearing on the application. The hearing shall be held within sixty (60) days of the date of such notification.
(2) Thereafter, the applicant shall notify each tenant in writing by notice approved by HPD of the pending application and the date and place set for the hearing. Such notification shall be sent to the tenants by ordinary mail or distributed under each apartment door and a copy shall be posted in a conspicuous public place on the lobby floor of each building affected. Additional copies of the notice to tenants shall be kept by the applicant for inspection by tenants requesting same. Satisfactory proof of notification to tenants must be supplied to HPD not less than ten (10) days prior to the date set for hearing.
(3) All books, records and financial data pertinent to the requested increase shall be made available to representatives of the Tenants Association in a rental development.
(4) The hearing shall be presided over by such hearing officer as may be designated by HPD for such purpose. The applicants and those opposing the application, in person or by duly authorized representatives, shall each be given a reasonable opportunity to be heard.
(5) A record of the proceedings shall be kept, which shall include, among other things, the application, the notice to tenants, the written and documentary material received, including comments received by HPD. A verbatim transcript of the hearing shall be made and kept as a record of the public hearing. The cost of such transcript shall be borne by the housing company.
(6) HPD shall make its decision with respect to the application, and if it is determined that an increase shall be granted, the Commissioner shall issue an Order specifying the amount of the increase and the date(s) of implementation. Said Commissioner’s Order may be structured to provide for a single or multiple-stage increase.
(7) Prior to the issuance of the Commissioner’s order, HPD shall make available the results of a preliminary financial analysis of the application. In the case of a rental development, such analysis shall be provided to both the owner and the Tenants Association or their respective representatives or designees. If either party in the case of a rental development requests a meeting to review the preliminary financial analysis, HPD’s Assistant Commissioner of Housing Supervision shall call a meeting with both parties present prior to making a recommendation to the Commissioner. In the case of a mutual housing company, such analysis shall be provided to the President of the Board of Directors or his or her designee. If the Board of Directors requests a meeting to review such analysis, the Assistant Commissioner of Housing Supervision shall call a meeting prior to making a recommendation to the Commissioner.
(1) A Tenants Association that is constituted pursuant to 28 RCNY § 3-17 shall be eligible for reimbursement of professional fees incurred when such Tenants Association retains an accountant, architect or engineer to review a rent increase application which has been submitted by a housing company to HPD and approved as to form by HPD. Only one accountant and/or one architect or engineer may be retained by a Tenants Association pursuant to this subdivision to review a particular rent increase application submitted by a housing company pursuant to this section.
(2) On the date upon which a housing company submits a rent increase application to HPD pursuant to paragraph one of subdivision (a) of this section, such housing company shall notify the Tenants Association in writing that it has submitted such application and that the Tenants Association may retain an accountant and/or an engineer or architect to review the rent increase application upon approval as to form of such application by HPD.
(3) A Tenants Association may retain a professional or professionals to review a rent increase application that has been approved as to form by HPD provided, however, that such professional or professionals shall be retained within ten days after receipt of the notice required pursuant to paragraph two of this subdivision. Said notice shall be deemed to have been received on the business day immediately following the day of mailing. Such Tenants Association shall provide a copy of the retainer agreement or agreements to the housing company and to HPD prior to submission of the professional report or reports pursuant to paragraph four of this subdivision.
(4) A Tenants Association which has retained a professional or professionals to review a rent increase application that has been approved as to form by HPD shall submit a copy of the report and the bill for services of such professional or professionals to the housing company and to HPD at least seven days prior to the scheduled date of the hearing on such application.
(5) The total fees charged by a professional or professionals retained by a Tenants Association pursuant to this subdivision shall be the fair and reasonable cost of the services rendered by such professional or professionals, but shall not exceed in total the amounts specified in the following schedule:
| Size of Housing Development | Maximum Total Fee(s) |
|---|---|
| Under 500 units | $7,500 |
| 500 or more units | $8,500 |
~
(6) The housing company shall remit payment for services to a professional or professionals who is retained by a Tenants Association pursuant to this subdivision within a reasonable time after receipt of the bill for services, and not later than thirty days after the hearing on the rent increase application.
(7) This subdivision shall not apply in the case of a rent increase application exclusively subject to the approval of HUD.
§ 3-11 Utility Pass-Through, Submetering, Direct Metering.
(a) Utility pass-through.
(1) Procedure for request of increase.
(i) A housing company which desires to implement an increase in that portion of the rent/carrying charges attributable to utilities must make a request in writing to HPD for permission to do so. Accompanying said request must be photocopies of utility bills for the period of two years prior to the date of request in order to compare current costs with prior costs.
(ii) The housing company must indicate the total annual amount of the increase requested and, in addition, indicate the amount of the increase on a per room per month basis.
(iii) In the case of a mutual housing company, the utility increase request must be accompanied by a board of director’s resolution approving same.
(iv) The housing company’s accountant shall verify in writing that the supporting figures submitted are correct.
(v) The housing company, upon submission of a request to HPD, shall post the request in a conspicuous public place on the lobby floor of each building. In the case of a rental development, a copy of the request with the back-up data shall be mailed to the President of the Tenants Association for review and comment. Additional copies of the request with back-up data shall be kept by the housing company for inspection by tenant/cooperators requesting same.
(2) Procedure for processing increase. The above data will be analyzed by the Division of Housing Supervision of HPD to determine the validity of the request for a utility pass-through. Tenant/cooperators shall be allowed thirty (30) days from the date of notification to the shareholders or Tenants Association to comment on the request. Upon determination by HPD that a pass-through of increased utility costs is warranted, based on an increase in utility rates, an increase in utility consumption or any combination thereof, HPD shall approve implementation of said utility pass-through and shall notify the housing company in writing of such approval and of the duration of said utility pass-through. In a rental development, a copy of the approval letter shall be sent to the President of the Tenants Association. HPD may deny the request if the housing company has sufficient resources to absorb the increases.
(3) Implementation by housing company.
(i) A utility pass-through shall become effective on the first day of the month following the approval of same. The housing company shall notify the tenant/cooperators of such utility pass-through at least fifteen (15) days in advance thereof by either ordinary mail or distribution under each apartment door, and by posting a copy of the approval letter in a conspicuous public place on the lobby floor of each building affected; if such notice is not given in sufficient time, then the pass-through shall become effective on the first day of the next following month after such notice is given.
(ii) A utility pass-through may be requested at any time that an increase in rates or usage occurs; however, no more than one (1) pass-through for the housing company will be approved by HPD for implementation within any six (6) month period.
(1) Submission of plans. The housing company shall submit to HPD for review and approval plans and specifications for the installation of submetering equipment.
(2) Bidding requirements.
(i) All contracts for the sub-metering of electricity shall be bid in accordance with 28 RCNY § 3-07.
(ii) In the event that any director, officer, stockholder, employee or agent of any housing company shall be directly or indirectly connected with any person, firm, or corporation which may submit any bid, or to whom any contract is proposed or awarded, a statement setting forth the nature of such connection shall be included in the submission to HPD. In the case of a mutual housing company, it shall be made a part of the minutes.
(3) Testing of submetering equipment.
(i) The housing company shall be responsible for maintaining accurate meters. Periodic inspections shall be conducted for this purpose.
(ii) If a tenant/cooperator requests an inspection of a meter at a time other than the periodic inspection, the cost of said inspection will be borne by the housing company if the meter is found to be defective, or by the tenant/cooperator if the accuracy of the meter is found to be within prescribed parameters.
(4) Grievance procedures. Grievance procedures prepared by the housing company relating to the submetering of electrical charges shall be submitted to HPD for review and approval before such procedures are implemented by the housing company.
(1) A housing company whose project obtains electricity through a master meter may, pursuant to HPD approval, install equipment for the purpose of having electricity directly metered to each tenant/cooperator.
(2) The housing company shall submit to HPD for review, plans and specifications for installation of direct metering equipment. The bidding requirement set forth in 28 RCNY § 3-07 shall be complied with.
(3) At the time of request by the housing company for permission to direct meter a development, a copy of the request shall be sent by ordinary mail to all tenant/cooperators.
(4) Prior to any determination being made by HPD regarding the conversion to direct metering, HPD will solicit tenant/cooperator comments regarding said conversion.
(5) A determination will be made by HPD after analysis of existing utility charges as to whether rents or carrying charges at the development require adjustment as a result of the conversion.
§ 3-12 Energy Conservation. [Repealed]
(a) Written notice and opportunity to appear. In the event of a violation by a housing company which could result in removal of any or all of a Board of Directors pursuant to § 32(6) of the Private Housing Finance Law, the Board of Directors shall be provided with written notice and affected directors shall be given an opportunity to appear and be heard before HPD with respect to any alleged violations.
§ 3-14 Corporate Action.
(a) Certificates of incorporation, by-laws, rules and regulations. Each housing company shall file with HPD, for its approval, a certified and acknowledged copy of its proposed by-laws. Each housing company shall also file with HPD, for its approval, a certified and acknowledged copy of all proposed amendments to its certificate of incorporation or by-laws. The housing company shall forward to HPD for its files two copies of the by-laws or amendments to the certificate of incorporation or by-laws subsequent to HPD approval. Failure to seek HPD approval or rejection by HPD of the by-laws or amendments to the certificate of incorporation or by-laws will render the by-laws or such amendments null and void. Certificates of incorporation, by-laws, rules and regulations established by a housing company shall be in conformity with state laws and HPD rules. Housing company certificates of incorporation, by-laws, rules and regulations to the contrary shall be deemed null and void.
(1) Members of the Board of Directors of a housing company, whether rental or mutual housing company, bear a high public responsibility, since they have elected to operate under a City-aided program to effectuate public policy by encouraging the building and operating of housing developments for families of moderate income.
(2) Board members have a fiduciary responsibility to the shareholders of the corporation. Each board member must ensure that buildings, grounds and other assets are kept up to high standards so that their value is not impaired and that the annual operating revenue is spent effectively and economically.
(3) Board members must exercise judicious control of the premises entrusted in their care, including community rooms and public spaces.
(4) Members of the Board of Directors have an obligation to provide to tenant/cooperators the most economical operation of the development without endangering the long term interest of the project.
(5) Board members should be aware of and responsive to tenant/cooperator grievances.
(6) Upon HPD’s request, the housing company shall submit to HPD a copy of the minutes from the relevant meeting, certified as to correctness by the housing company’s secretary.
(7) No board member shall receive any preferential treatment or thing of value as a result of his or her board membership.
(8) Members or officers of the Board of Directors must occupy a dwelling unit at the mutual housing company development represented by such Board of Directors as his or her primary place of residence.
(1) Capital assessments. A mutual housing company may, by vote of its directors followed by a vote of the shareholders, assess all shareholders on an equitable basis in order to undertake a program of major capital improvements or major repairs approved by HPD. A mutual housing company must obtain a majority of votes at a meeting of shareholders for this purpose and obtain HPD’s approval for the assessment.
(2) Proceeds of capital assessments. The proceeds of capital assessments shall be deposited in a blocked bank account and all withdrawals from such account shall be subject to the written approval of HPD. Any surplus remaining in the account upon completion of HPD approved repairs or improvements shall be added to the reserve fund.
(3) Approval process. A request for approval of a capital assessment shall be submitted in writing to HPD, and shall specifically indicate the type of capital improvements or repairs required, along with an estimate of probable cost and the timetable for completion of the proposed program. Contracts for completion of the program shall be subject to the appropriate provisions of HPD rules [;and regulations];, and shall include a provision that the acceptance of all work is subject to the approval of HPD.
(1) shall be or become interested directly or indirectly in any manner whatsoever in any business dealing with the mutual housing company except for resale of shares of their own apartments.
(2) shall act as attorney, accountant, managing agent, broker or employee for any person, firm or corporation interested directly or indirectly in any manner whatsoever in business dealings with the mutual housing company;
(3) shall accept any valuable gift, whether in the form of service, employment, loan, thing or promise, or any other form from any person, firm or corporation which to his or her knowledge, is interested directly or indirectly, in any manner whatsoever, in business dealings with the mutual housing company, its managing agent or any affiliates thereof.
(4) Any deviation from the above requires prior written approval of HPD.
(1) The Board of Directors of a mutual housing company shall hold regular meetings for the conduct of business. In addition, an annual meeting for the election of directors shall be held at a time and place, and in the manner prescribed by the mutual housing company’s by-laws.
(2) (i) All elections of directors for a mutual housing company that has not been refinanced under Section 223(f) of the National Housing Act must be supervised by an independent election company or the mutual housing company’s attorney and/or accountant. No fewer than forty-five (45) days prior to conducting the election, the mutual housing company must submit to HPD in writing (A) the name of the independent election company and the proposed independent election company agreement, or, alternatively, with the approval of HPD, the name of the housing company’s attorney and/or accountant who will be supervising the election, (B) a written description of the procedures for the nomination of directors and for the intended election, and (C) drafts of all other documents related to the election.
(ii) No election may be conducted without the prior written approval of HPD of the submission made pursuant to subparagraph (i) of this paragraph.
(1) Subdivisions two and three of section 35 of the Private Housing Finance Law, with respect to City-aided limited-profit housing companies, provides as follows: “A company aided by a loan made after [;May 1, 1959]; may voluntarily be dissolved, without the consent of [;HPD];, not less than twenty [;(20)]; years after the occupancy date upon payment in full of the remaining balance of principal and interest due and unpaid upon the mortgage or mortgages and of any and all expenses incurred in effecting such voluntary dissolution. Upon such dissolution, title to the project may be conveyed in fee to the owner or owners of its capital stock or to any corporation designated by it or them for the purpose, or the company may be reconstituted pursuant to appropriate laws relating to the formation and conduct of corporations, provided, however, that prior to any such dissolution and conveyance or reconstitution, payment shall be made of all current operating expenses, taxes, indebtedness and all accrued interest thereon and the par value of and accrued dividends on the outstanding stock of such company. If after making such payments, and after conveyance of the project, a surplus remains in the treasury of the company, such surplus … shall upon dissolution, be paid into the general fund of the [;City of New York];. After such dissolution and conveyance, or such reconstitution, the provisions of [;Article II of the Private Housing Finance Law]; shall become and be inapplicable to any such project and its owner or owners and any tax exemption granted with respect to such project pursuant to [;§ 33 of the Private Housing Finance Law]; shall cease and terminate.”
(2) Notice of Intent for Rental Companies. A rental housing company intending to dissolve and/or reconstitute pursuant to § 35, shall submit to HPD no later than 365 days prior to the anticipated date of dissolution and/or reconstitution, a notice of such intention (“Notice of Intent”) which shall contain the following information and supporting documents:
(i) Name and address of the housing development;
(ii) Name and business address of the beneficial and legal owner(s) other than limited partners and stockholders;
(iii) Name and address of proposed transferee, if property is being sold or transferred and the proposed date of any such transfer;
(iv) A current rent roll reflecting rents last ordered by HPD and/or by HUD including surcharges, subsidy and other special charge data;
(v) A list of tenants who are presently receiving rent subsidies which may be discontinued as a result of dissolution and the proposed rents to be charged such subsidy recipients after dissolution;
(vi) A copy of any applicable documents relating to the rental development, including, but not limited to, the urban renewal plan, the plan and project, the deed or lease, the land disposition agreement, any applicable Board of Estimate or City Council resolution and the temporary certificate of occupancy and permanent certificate of occupancy, or any other documents requested by HPD; and
(vii) A list of all State, municipal and/or federal financial assistance or subsidies received by the housing development (such as low income housing tax credits, tax exempt bond financing, interest reduction subsidy under Section 236 of the National Housing Act, as amended, project-based Section 8 under the United States Housing Act of 1937, as amended, housing choice vouchers, rent supplement, J-51 or other tax exemption and/or abatement benefits, and flexible subsidy grants) and the amount thereof. All such documents shall also be given to the Tenants Association as well as to a management office on site (or, if there is no management office on site, to a management office located within the city of New York). At such management office, such documents shall be made available to any tenant of such rental housing company and/or his or her representative upon request. The owner shall notify all tenants by ordinary mail or distribution at or under each apartment door and by posting a copy in a conspicuous place on the lobby floor of each building affected of its intent to dissolve or reconstitute at or about the same time as the delivery of the notice of intent to HPD.
(3) Public information notice for rental companies. At least sixty (60) days prior to the proposed date of dissolution and/or reconstitution, a rental housing company intending to dissolve and/or reconstitute shall serve a Notice of a Public Meeting by distribution under each apartment door; shall post such notice in three (3) conspicuous locations within the lobby and elevator areas of each building; and shall send such notice by certified or registered mail to each of the following:
(i) Commissioner and the Assistant Commissioner of Housing Supervision, and
(ii) The president or chairperson of the Tenants Association. Such notice shall specify the day, date, time and location of a public information meeting which shall be held to inform tenants of the proposed dissolution and/or reconstitution of the housing company. If the public information meeting is outside the community district in which the housing company is located, the owner must provide transportation for tenants. Such public information meeting shall be held not less than 10 nor more than 20 days after service of the Notice upon the parties set forth above.
(4) Public information meeting for Rental Companies. Pursuant to the Notice as specified above, the rental housing company shall conduct at least one public information meeting with the tenants. At such meeting representatives of the rental housing company shall inform the tenants of the rental housing company’s intention to dissolve and/or reconstitute; the rental housing company’s removal from HPD’s jurisdiction and, if applicable, its subsequent registration with the New York State Division of Housing and Community Renewal (DHCR) for the purpose of rent stabilization pursuant to the applicable DHCR rules and regulations; whether rent stabilization will be applicable; prospective changes in ownership and any other relevant information regarding future plans for the rental housing company affecting the tenants. A question and answer period shall be conducted. The Tenants Association may invite local elected officials or other representatives to participate.
(5) Where applicable, the rental housing company shall provide evidence that it has appropriately preregistered all apartments with DHCR, indicating current rents for each apartment and services provided to the tenants as of the date of dissolution and/or reconstitution.
(6) Mutual housing companies-special meeting. A board of directors of a mutual housing company considering dissolution and/or reconstitution pursuant to § 35 shall call a special meeting in conformance with the mutual housing company by-law requirements for the purpose of ascertaining shareholder interest in dissolution and/or reconstitution. The secretary of the board of directors shall submit to HPD a certified resolution stating that not less than two-thirds (2/3) of the dwelling units in such mutual housing company approved an expenditure of funds in a specified amount not to exceed $100,000 for the purpose of the preparation of a written feasibility study that shall compare remaining a mutual housing company with dissolving and reconstituting as a private cooperative corporation organized pursuant to the Business Corporation Law or as an Article XI housing development fund company organized pursuant to Article XI of the Private Housing Finance Law. Such written feasibility study will be distributed to each shareholder no later than sixty days after its preparation is completed, unless the by-laws of the company mandate a greater affirmative vote. Each dwelling unit shall be entitled to one vote regardless of the number of shares allocated to such dwelling unit, the number of shareholders holding such shares, or the provisions regarding voting in such mutual housing company’s certificate of incorporation or by-laws. Said resolution shall include language as follows:
“This resolution authorizes the board of directors to take steps necessary to prepare a written feasibility study that shall compare (i) remaining a mutual housing company (ii) dissolving and reconstituting as a private cooperative corporation organized pursuant to the Business Corporation Law, or (iii) dissolving and reconstituting as an Article XI housing development fund company organized pursuant to Article XI of the Private Housing Finance Law. Such written feasibility study will be distributed to each shareholder no later than sixty days after its preparation is completed. This resolution authorizes the expenditure of $_________ for such study, and notifies the shareholders that there are Private Housing Finance Law requirements for dissolution and/or reconstitution. This resolution also advises the shareholders that any additional expenditure of funds for such study will require a separate shareholder approval in accordance with the same voting procedures and cannot exceed $100,000 at any one time, and that the New York State Department of Law requirements must be met prior to actual dissolution and/or reconstitution.”
A certified copy of the resolution shall be submitted to HPD within seven (7) business days after such vote. Expenditure of funds authorized above shall require prior written approval of HPD.
The feasibility study prepared in accordance with such resolution shall compare (i) remaining a mutual housing company with (ii) dissolving and reconstituting as a private cooperative corporation organized pursuant to the Business Corporation Law or (iii) dissolving and reconstituting as an Article XI housing development fund company organized pursuant to Article XI of the Private Housing Finance Law. Such study shall include, but not be limited to:
(i) a physical condition survey of the mutual housing company development prepared by a licensed engineer or architect projecting such development’s capital needs and the costs thereof for the next ten years from the date of such survey;
(ii) projected increases in real property taxes for the next five years due to the loss of any abatements of and/or exemptions from real property taxation that would result from dissolution and/or reconstitution;
(iii) advisory estimates from State and City taxing authorities of the real estate and real property transfer taxes that would result from dissolution and/or reconstitution;
(iv) a market study prepared by an independent real estate professional containing projected sales prices for dwelling units if such mutual housing company were to dissolve and/or reconstitute; and
(v) financial estimates that compare remaining a mutual housing company, dissolving and reconstituting as a housing development fund company organized pursuant to Article XI of the Private Housing Finance Law in accordance with the provisions of paragraph (15) of this subdivision, and dissolving and reconstituting as a private cooperative corporation organized pursuant to the Business Corporation Law.
(6-a) Special meeting to authorize preparation of an offering plan and filing of Notice of Intent.
(i) Pursuant to the applicable notice period in the mutual housing company’s by-laws, a special meeting shall be convened by the board of directors of the mutual housing company no later than ninety days after the written feasibility study has been distributed to each shareholder to authorize the (A) expenditure of $__________ for the preparation and submission to the office of the Attorney General of the State of New York of a private cooperative or condominium offering plan for the housing project, and (B) submission to HPD of the mutual housing company’s notice of its intention to dissolve and/or reconstitute (“Notice of Intent”). Eligible voters for purposes of a quorum and for a vote on preparation and submission of such plan and such Notice of Intent shall be persons named on the stock certificate. Preparation and submission of such plan and such Notice of Intent requires approval of two-thirds (2/3) of the dwelling units in such mutual housing company. Each such dwelling unit shall be entitled to one vote regardless of the number of shares allocated to such dwelling unit, the number of shareholders holding such shares, or the provisions regarding voting in such mutual housing company’s certificate of incorporation or by-laws. On or after the effective date of this amendment to this subparagraph (i), any other expenditures in furtherance of dissolution and/or reconstitution that have not already either been authorized pursuant to an agreement entered into by the board of directors or received the express prior approval of the shareholders shall require the express prior approval of a majority of the dwelling units in such mutual housing company before the board of directors is authorized to allocate such funds in furtherance of dissolution and/or reconstitution. For purposes of this subparagraph (i), “express prior approval” shall mean that both the purpose of the expenditure and the exact dollar amount of such expenditure are or have been approved.
(ii) The Notice of Intent shall be submitted to HPD no later than 365 days prior to the anticipated date of dissolution and/or reconstitution. It shall be accompanied by evidence of the appropriate shareholder vote and resolution authorizing the preparation and submission of the offering plan and such Notice of Intent in accordance with subparagraph (i) of this paragraph and shall contain the following information and supporting documents:
(A) Name and address of the housing development;
(B) Name and address of proposed transferee, if property is being sold or transferred and the proposed date of any such transfer;
(C) A current rent roll reflecting carrying charges last ordered by HPD and/or by HUD including surcharges, subsidy and other special charge data;
(D) A list of cooperators who are presently receiving subsidies which may be discontinued as a result of dissolution and the proposed carrying charges to be charged such subsidy recipients after dissolution;
(E) A copy of any applicable documents relating to the mutual development, including, but not limited to, the urban renewal plan, the plan and project, the deed or lease, the land disposition agreement, any applicable Board of Estimate or City Council resolution and the temporary certificate of occupancy and permanent certificate of occupancy, or any other documents requested by HPD. Such documents shall also be given to a management office on site (or, if there is no management office on site, to a management office located within the city of New York). At such management office, such documents shall be made available to any cooperator of such mutual housing company and/or his or her representative upon request; and
(F) A list of all State, municipal and/or federal financial assistance or subsidies received by the housing development (such as low income housing tax credits, tax exempt bond financing, interest reduction subsidy under Section 236 of the National Housing Act, as amended, project-based Section 8 under the United States Housing Act of 1937, as amended, housing choice vouchers, rent supplement, J-51 or other tax exemption and/or abatement benefits, and flexible subsidy grants) and the amount thereof; All such documents shall also be given to a management office on site (or, if there is no management office on site, to a management office located within the city of New York). At such management office, such documents shall be made available to any cooperator of such mutual housing company and/or his or her representative upon request. Such mutual housing company shall notify all cooperators by ordinary mail or distribution at or under each apartment door and by posting a copy in a conspicuous place on the lobby floor of each building affected of its intent to dissolve or reconstitute at or about the same time as the delivery of the Notice of Intent to HPD.
(7) Special meeting to authorize dissolution and/or reconstitution of mutual housing companies. Pursuant to the applicable notice period in the mutual housing company’s by-laws, a special meeting to authorize dissolution and/or reconstitution shall be convened by the board of directors of the mutual housing company after the acceptance by the office of the Attorney General of the State of New York of the filing of the offering plan pertaining to the proposed transfer from the mutual company to a private cooperative or condominium corporation. Eligible voters for purposes of a quorum and for the vote on dissolution and/or reconstitution shall be persons named on the stock certificate. Dissolution and/or reconstitution of the mutual housing company requires approval of two-thirds (2/3) of the dwelling units in such mutual housing company. Each such dwelling unit shall be entitled to one vote regardless of the number of shares allocated to such dwelling unit, the number of shareholders holding such shares, or the provisions regarding voting in such mutual housing company’s certificate of incorporation or by-laws.
(7-a) Conduct of special meetings.
(i) Special meetings required pursuant to paragraphs six, six-a, seven and fifteen of this subdivision shall be conducted no more frequently than once every twelve months.
(ii) Special meetings required pursuant to paragraphs six, six-a, seven and fifteen of this subdivision shall be conducted by an independent election company. At least sixty days prior to conducting such special meetings, the mutual housing company must notify HPD in writing of the name of the independent election company, and of the intended special meeting procedures, and HPD must issue its approval in writing of such independent election company and of the intended special meeting procedures before such special meeting can take place.
(iii) If the cost of any special meeting required pursuant to paragraphs six, six-a and seven of this subdivision exceeds $15,000 in housing companies with fewer than five hundred (500) dwelling units or $30,000 in housing companies with at least five hundred (500) dwelling units, the contracts will require HPD’s prior written approval.
(iv) With respect to special meetings required pursuant to paragraphs six-a, seven and fifteen, the independent election company must submit proof to HPD that the requirements of this paragraph have been met.
(8) Operating Documents of Mutual Housing Companies. Each mutual housing company shall provide in any voting provisions in its certificate of incorporation and by-laws that in the shareholder votes required pursuant to paragraphs six, six-a, seven and fifteen of this subdivision, each dwelling unit shall be entitled to one vote regardless of the number of shares allocated to such dwelling unit, the number of shareholders holding such shares, or any other provisions regarding voting in such mutual housing company’s certificate of incorporation or by-laws.
(9) Waiting list notifications. Both rental and mutual housing companies shall submit an affidavit certifying that each applicant on such housing company’s apartment waiting list has been advised in writing of the proposed dissolution and/or reconstitution and that fees have been returned to said applicants prior to dissolution and/or reconstitution. Further, the affidavit shall state that any funds unreturned for lack of proper address or other technicality shall be escrowed and returned upon applicant’s request.
(10) Payment of mortgage(s) and other indebtedness by rental and mutual housing companies. On the date set for dissolution and/or reconstitution and mortgage prepayment, the housing company shall submit to HPD payment in a form approved by HPD for all principal, interest, supervisory fees, surcharges, amounts payable pursuant to residual receipt notes and any other amounts which may be owing to the City of New York, including any surplus due to be paid into the general fund of the City pursuant to Private Housing Finance Law Article II, § 35(3).
(i) At least sixty (60) days prior to the date set for dissolution and/or reconstitution and mortgage prepayment, a schedule of all accounts payable, taxes due and any other indebtedness, including the par value and accrued dividends on outstanding stock (or, in the case of a partnership, accrued distributions) shall be submitted to HPD for its review and written approval; said schedule to be prepared and certified to HPD by an independent certified public accountant acceptable to HPD. Such schedule shall contain a listing of all items of indebtedness, the amount thereof, the source of payment thereof and the anticipated date of payment, plus the amount of money anticipated to be paid to the City from the remaining surplus. At the time of dissolution and/or reconstitution, such certified schedule shall be amended to reflect the current status of all accounts, and the exact amount, if any, owed to the City. Housing company funds may not be used for the purpose of prepayment of the mortgage debt.
(ii) Accounts payable may include monies owed on executed contracts for repairs or capital improvements, subject to HPD approval. Any contract for capital improvement or repair work in an amount in excess of $15,000 executed within ninety (90) days prior to submission of a Notice of Intent to dissolve and/or reconstitute other than contracts for projects subject to HUD supervision must have a statement attached to the contract submission, sent to HPD for approval, advising HPD that the housing company is contemplating dissolution and/or reconstitution at the time of said submission of the contract. Failure to submit such contracts may result in exclusion of their cost in calculating surplus.
(iii) No legal and accounting fees or other costs in a rental development associated with dissolution and/or reconstitution shall be charged to the housing company.
(iv) Where applicable, the housing company shall submit evidence of payment of any relevant mortgages.
(11) Issuance of letter of no objection to rental and mutual housing companies. Upon payment by certified check or checks from a New York clearing house bank of all amounts owing to the City and/or other mortgagee and certification of compliance with all applicable rules and provisions of law relating to dissolution and/or reconstitution, HPD shall issue a Letter of No Objection to the housing company’s dissolution and/or reconstitution.
(12) Notification to New York City Department of Finance. On the date of dissolution and/or reconstitution, both rental and mutual housing companies shall send written notification to the Department of Finance that the property owned by the housing company is to be restored to a full taxpaying position effective the date of dissolution and/or reconstitution. A copy of such notice shall be sent to the HPD Division of Housing Supervision.
(13) Notification to senior citizen rent increase exemption (SCRIE) program. No later than ten days after the date of dissolution and/or reconstitution, both rental and mutual housing companies shall send written notification to the HPD Division of Housing Supervision’s SCRIE unit of said dissolution and/or reconstitution and to all SCRIE recipients advising them of their status after dissolution and/or reconstitution.
(14) Terminology Used by Mutual Housing Company. Whenever a mutual housing company uses the term “dissolution,” it shall include reconstitution where such housing company elects to reconstitute upon dissolution of such housing company. Furthermore, where the mutual housing company’s board or the sponsor of a cooperative conversion of a mutual housing company represents in its cooperative offering plan or other documents that such mutual housing company is amending and/or restating its certificate of incorporation and/or that the shareholders will be voting on a voluntary reconstitution and conversion from a limited-profit mutual housing company to a private cooperative or to a housing development fund company in accordance with paragraph fifteen of this subdivision, section 35 of the Private Housing Finance Law designates these actions as a dissolution and reconstitution of the former limited-profit housing company cooperative.
(15) Notwithstanding anything to the contrary contained in this subdivision, for the purposes of dissolving and reconstituting a mutual housing company as a housing development fund company (organized pursuant to Article XI of the Private Housing Finance Law) that will enter into a thirty-year regulatory agreement with HPD, the following shall apply:
(i) such mutual housing company must follow the procedures contained in subdivisions two and three of Section 35 of the Private Housing Finance Law;
(ii) such mutual housing company shall (A) call a special meeting in conformance with its by-law requirements to conduct a vote in which not less than a majority of the dwelling units represented at such special meeting approve the preparation of a draft proxy statement and the submission to HPD of such mutual housing company’s notice of its intention to dissolve and reconstitute as a housing development fund company, and (B) after such draft proxy statement has been prepared, submit the draft proxy statement in support of the plan of dissolution and reconstitution to the office of the Attorney General of the State of New York and, simultaneously with such submission, deliver copies of such draft proxy statement to HPD and to each of such mutual housing company’s cooperators by ordinary mail or distribution under each apartment door;
(iii) the cooperators shall have ninety (90) days from the submission date to provide comments to the office of the Attorney General of the State of New York, at the expiration of which such Attorney General shall provide any deficiency comments to the mutual housing company;
(iv) within thirty days of the Attorney General’s issuance of an exemption letter, such mutual housing company must distribute the proxy statement and no other materials to each cooperator by ordinary mail or distribution under each apartment door;
(v) between thirty and one hundred-twenty days after the proxy statement is distributed to the cooperators, such mutual housing company shall conduct a special meeting in accordance with the applicable notice period in such mutual housing company’s by-laws and in accordance with the requirements of subparagraphs (i), (ii) and (iv) of paragraph (7-a) of this subdivision in which the cooperators shall vote on the proxy statement. Eligible voters for purposes of a quorum and for the vote shall be persons named on the stock certificate. No fewer than two-thirds of the dwelling units in such mutual housing company must approve such proxy statement in order for such dissolution and reconstitution to proceed and every dwelling unit shall be entitled to one vote, regardless of the number of shares allocated to such dwelling unit, the number of shareholders holding such shares, or the provisions regarding voting in such mutual housing company’s certificate of incorporation or by-laws;
(vi) the independent election company that conducts the special meeting pursuant to subparagraph (v) herein must certify the results of the shareholder vote to HPD as well as prove that the requirements of such subparagraph (v) for such special meeting have been met. If at least two-thirds of the dwelling units have approved the proxy statement and such voting procedures have been followed, HPD shall issue a letter of authorization to the mutual housing company to proceed with dissolution and reconstitution as a housing development fund company in lieu of a Letter of No Objection otherwise required pursuant to paragraph (11) of this subdivision;
(vii) within seven days of receipt of HPD’s letter of authorization or within such reasonable time period as HPD has otherwise provided in writing, the mutual housing company shall send a written notice to each cooperator by ordinary mail or by distribution under each apartment door (“Effective Date Notice”), which provides the following:
(A) the proxy statement has been approved by at least two-thirds of the dwelling units and the requisite voting procedures were followed;
(B) the procedures by which cooperators who wish to dissent can exercise the option of becoming rental tenants of the housing development fund company by providing such mutual housing company with an affidavit of intent to forego participating in the plan of dissolution and reconstitution within thirty days of receipt of the Effective Date Notice, and
(C) the mutual housing company shall submit an effectiveness amendment to the Attorney General, which shall include as exhibits HPD’s letter of authorization and the Effective Date Notice, within thirty days of such Effective Date Notice. After the Attorney General’s acceptance of the effectiveness amendment, HPD shall request that the City Council approve a real property tax exemption for such reconstituted housing development fund company in accordance with Section 577 of the Private Housing Finance Law on substantially the same terms as the prior real property tax exemption that had been issued pursuant to Section 33 of the Private Housing Finance Law;
(viii) within six months after the City Council has approved such real property tax exemption or within such reasonable time period as HPD has otherwise approved in writing, the mutual housing company shall set the date upon which it shall be reconstituted as a housing development fund company (“Reconstitution Date”). On such Reconstitution Date, the following actions must occur:
(A) the filing with the New York State Department of State of the amended and restated certificate of incorporation for such housing development fund company;
(B) the loan closing for any new financing for such housing development fund company;
(C) execution of the thirty-year regulatory agreement by all parties, and
(D) payment of any and all costs associated with carrying out the plan to reconstitute as a housing development fund company; and
(ix) within thirty days after the Reconstitution Date or within such reasonable time period as HPD has otherwise approved in writing, the board of such housing development fund company shall:
(A) provide participating shareholders with their propriety leases and such housing development fund company’s corporate documents, including, but not limited to, its by-laws; and
(B) provide dissenting shareholders the return on their initial equity investment in the former mutual housing company and market-rate rental leases for their dwelling units.
(x) Notwithstanding anything to the contrary contained in this paragraph, the Reconstitution Date shall be within twelve months from the first day of the proposed first year of operation of the housing development fund company, provided, however, that if HPD, in consultation with the Attorney General, has approved in writing a Reconstitution Date in accordance with subparagraph (viii) of this paragraph that is more than twelve months from the first day of the proposed first year of operation of the housing development fund company, such mutual housing company shall file an amendment to the proxy statement that was circulated to the cooperators in accordance with subparagraph (iv) of this paragraph.
(1) With HPD’s approval, a mutual housing company may require a standard form and procedure for the casting of proxies or absentee ballots in any matter requiring a shareholder vote.
(2) Notwithstanding anything to the contrary contained herein, in any vote conducted pursuant to paragraphs six-a, seven or fifteen of subdivision (i) of this section, voting by proxy shall not be permitted. However, HPD may approve, in writing, a standard form direct mail ballot for transmission to the independent election company engaged to conduct any votes pursuant to paragraphs six-a, seven or fifteen of subdivision (i) of this section. Such standard form of direct mail ballot shall be invalidated by the shareholder executing such ballot if such shareholder appears to vote in person in any vote conducted pursuant to paragraphs six-a, seven or fifteen of subdivision (i) of this section.
§ 3-15 Partnerships.
(a) Partnership agreements. Certain housing companies are permitted to become partners of partnerships formed pursuant to Section 16 of the Private Housing Finance Law. Partnership Agreements and amendments thereto are subject to prior approval in writing by HPD. Admission, withdrawal or retirement of general partners is [;also]; subject to the prior written approval of HPD.
§ 3-16 Managing Agents Agreements.
(a) Managing agents agreement required. All housing companies are required to enter into written agreements for management services which must be approved in writing by HPD. This subdivision (a) applies to all agents, corporate or individual. Managing agent agreements are subject to the provisions of subdivision (e) of 28 RCNY § 3-13 regarding debarment.
(1) The prospective agent, corporate or individual, must be a real estate broker in good standing duly licensed by the State of New York. Site managers employed by the prospective agent must be certified, by an organization acceptable to HPD, within twelve (12) months after assignment to an HPD-supervised housing development. The certification requirement cannot be waived by transferring the site manager to an alternate HPD-supervised site prior to the end of the twelve month period. If a housing company elects to undertake self-management of its housing development, it must seek written approval from HPD. The person being employed to perform the role of manager must be approved in writing by HPD. If the manager is an employee of the housing company, he or she is not obligated to have a real estate broker’s license. However, the employee-manager must be certified, by an organization acceptable to HPD, within twelve (12) months after his or her initial employment date.
(2) The agent must provide a fidelity bond in an amount and form and with a surety approved by HPD.
(3) The agent shall provide evidence of experience and capability commensurate with the responsibility it seeks to undertake.
(4) The agent may be required to submit a management plan proposing a program conducive to proper maintenance and economic viability of the project, and to harmonious relations among tenant/cooperators, management and the community. The plan shall include, but shall not be limited to, policy regarding deployment of personnel, tenant/cooperator-management relations, tenant/cooperator selection, rent/carrying charge collection procedures, agency reporting procedures, fiscal accountability, physical plant maintenance, equal opportunity measures and security measures. The plan shall take into account the characteristics of the development, its neighborhood and type of tenancy (e.g., senior citizen or handicapped). The plan and its implementation will be considered in determining the agent’s employment, renewal and compensation, and will be subject to HPD review and written approval.
(5) The agent must maintain an office or place of business in the metropolitan area at no cost to the housing company where it will keep all books, records, bills and other documents pertaining to the housing company. These records will be available for inspection and review by the owner, HPD or other interested parties as permitted by statute or rules of HPD.
(1) Any managing agent’s agreement shall be in a form approved by HPD and shall be of no force or effect until the contract has been approved in writing by HPD.
(2) All new managing agent’s agreements shall have a term of one (1) year commencing July 1st and terminating on June 30th of the following year. All renewals shall have a similar one (1) year term; provided, however that if a new managing agent agreement commences after July 1st, it still shall terminate on the June 30th following the commencement of such agreement.
(3) Managing agent agreement renewals must be submitted to HPD for written approval.
(4) Any managing agent’s agreement shall provide that it is subject to termination without cause upon thirty (30) days written notice by the housing company or HPD. HPD or the housing company shall have the right to immediately terminate any managing agent for cause.
(5) Promptly upon any termination, the managing agent shall turn over to the housing company, all project records, rent rolls, bills, cancelled checks, bank statements, bank books, waiting lists, correspondence, ledgers and all other documents related to or owned by the housing company.
(6) HPD may review the performance of a managing agent at any time and may solicit comments from owners, tenants, and others relating to the performance of the managing agent.
(1) The managing agent’s fee will be negotiated by the housing company and will be subject to approval by HPD.
(2) The fee may be further adjusted on a compound basis by a percentage to be established annually by HPD, said percentage may be subject to negotiation by the housing company, but may not exceed the maximum percentage authorized by HPD.
(3) If a new managing agent enters into an agreement with a housing company to replace an existing agent at a development, the maximum fee which can be paid to the new agent will be the fee established for the prior agent, plus any cumulative percentages adjustments which have been approved by HPD, regardless of whether the prior agent was given said increases. The new agreement is subject to negotiation by the housing company within the maximum established above.
(4) If, upon evaluation by HPD, it is determined that an agent’s performance has not been satisfactory during the prior year, the agent shall not be entitled to the annual increase in its fee. In its evaluation, HPD will consider comments from the housing company and the Tenants Association but will make the final determination regarding the increase. HPD will advise the housing company in writing at least 30 days prior to the agreement renewal date each year if approval of the annual increase is being withheld and the reasons therefor.
(5) An approved annual increase in the managing agent’s fee will become effective on July 1st of each year.
(6) In the event a newly constructed development goes into occupancy, the managing agent’s fee shall be negotiated by the housing company, but in no event shall it exceed the highest fee plus cumulative increases for a development of comparable size and nature already in existence within the program. Comparability will be determined solely by HPD.
(7) If HPD disapproves an annual increase for a managing agent, HPD may within a reasonable period of time meet with the representatives of the housing company and the managing agent to discuss the reasons for HPD’s dissatisfaction. The managing agent shall take such steps as deemed necessary by HPD to satisfy HPD requirements. If the agent’s performance remains unsatisfactory, HPD may, upon notice to the housing company, terminate the managing agent’s agreement.
(1) investigate, hire, pay, supervise and discharge all personnel necessary to be employed in order to properly maintain and operate the development in accordance with an operating schedule, job standards and reasonable and necessary wage rates approved by the housing company. Such personnel shall be considered employees of the housing company and compensation for the services of such employees shall be considered an operating expense of the company, provided, however, that in each development the managing agent shall employ and shall compensate out of its fee one or more responsible individuals as approved by HPD and the housing company whose job it shall be to carry out the responsibilities of the managing agent at the premises;
(2) prepare tax records, including withholding and social security records for the employees of the development, and shall administer required programs of workers’ compensation and other employee liability insurance programs;
(3) collect all monthly rents, carrying charges and all other charges due from tenant/cooperators both residential and commercial, and from other users or concessionaires; including, but not limited to, licensees, and take such action with respect thereto as the owner may authorize;
(4) cause the buildings and grounds of the development, and all equipment appurtenant thereto to be maintained according to standards acceptable to the housing company and to HPD;
(5) subject to the approval of the owner and in accordance with HPD rules, contract for water, electricity, gas, fuel oil, extermination and other necessary services;
(6) submit tenant/cooperator applications to HPD for approval; maintain waiting lists in accordance with HPD rules and utilize such lists in the re-rental of vacated apartments or resale of shares in a mutual housing company; perform all services in connection with the processing of applications resulting from such reletting or resale;
(7) diligently undertake the renting of any parking spaces, commercial and non-dwelling space in the project, arranging for the execution of such leases or permits as may be required;
(8) undertake recertification of tenant/cooperator income as required by HPD or by federal regulations;
(9) prepare and submit annual operating budgets, monthly operating reports, rent rolls, vacancy reports, rent arrears reports, surcharge tabulation sheets, equal opportunity reports, HUD excess income reports, where applicable, and any other documents required by the housing company or HPD;
(10) maintain books and records relating to the development;
(11) establish operating bank accounts and make deposits and withdrawals in such account as directed by the housing company; maintain a blocked reserve account as required by HPD and invest the funds of such account in accordance with HPD rules to attain the maximum return on investment;
(12) advise the housing company and HPD of projected needs for repairs and replacements at least once each year; review physical inspection reports and effect compliance;
(13) submit contracts and retainers for HPD approval in accordance with HPD rules; (14) process tax matters in a timely manner;
(15) conduct an annual inspection of all apartments for the purpose of identifying unreported electrical or other equipment (air conditioners, freezers, washing machines and dryers), observing the physical condition of the apartments, and ascertaining compliance with the rules and regulations of the project, HPD and HUD, where applicable, and report its findings in writing to the Owner and HPD;
(16) receive, record and respond to all service requests made by tenants in a timely manner;
(17) carry out such other duties and responsibilities as may be stipulated by the housing company or HPD and as may be included in the management agreement; and
(18) advise HPD of violations of these rules attempted or carried out on behalf of the housing company, its employees, any person or entity or employee of an entity doing or seeking to do business with the housing company or by members of the Board of Directors of the housing company.
| Charge to | ||
|---|---|---|
| Managing Agent | Housing Company | |
| (1) Item of expense | ||
| (i) Wages for managing agent’s staff | ||
|
X | |
|
X | |
| (ii) Sight staff, where applicable | Case by Case Basis | |
| (iii) Messenger service and out of pocket expenses for deliveries | X | |
| (iv) Travel expense from central office to site and back | X | |
| (v) Travel expense to and from HPD for such things as meetings | X | |
| (vi) Overtime for emergencies or deadlines | X | |
| (vii) Legal and accounting fees of managing agent | X | |
| (viii) Rent hearing participation | X | |
| (ix) Cost of preparing all reports required by HPD, HUD, where applicable, or any other city, state, or federal agency | X | |
| (2) On site furnishings | ||
| (i) Office furniture (desk, chair, carpet) | X | |
| (ii) Office equipment, purchased or rented (computers, facsimile machine, mimeo, xerox, typewriters, adding machines) | X | |
| (iii) Maintenance and repair of equipment | X | |
| (3) On site supplies and services | ||
| (i) Housing company stationery, plain and copy paper | X | |
| (ii) Pens, pencils, clips, carbon paper and other office supplies | X | |
|
X | |
|
X | |
|
X | |
|
X | |
| (v) Printing of leases, notices and advisories to tenant/cooperators; proxies and other forms for Board elections | X | |
| (vi) Photocopying and other reproduction costs | X | |
| (vii) Fidelity Bond and other insurance covering management operation | X | |
| (viii) Penalties or fines levied by Finance Department or other agencies | Case by Case Basic depending on fault | |
| (ix) Lock box service | X |
~
(1) No brokerage commissions shall be permitted for that part of a lease term in excess of 20 years.
(2) No brokerage commissions shall be permitted for:
(i) tax payments deemed to be additional rent and paid by the tenant,
(ii) options to renew for an additional term of years, unless such option shall have been duly exercised in accordance with the terms of the lease or
(iii) payments for items not included in basic rent, including, but not limited to, utilities and costs of improvements made by the owner.
(3) Maximum brokerage commissions shall be permitted in accordance with the following schedule, based on the rentals charged the tenant:
First year or any fraction thereof 5 1/2%
Second year or any fraction thereof 2 1/2%
Third year up to and including the tenth year 2 1/2%
Eleventh year up to and including the twentieth year 1 1/2%
(4) Brokerage commissions earned and due the broker, shall be paid by the housing company in an amount not to exceed the dollar amount of the non-refundable security held by the housing company at the time the lease is approved by HPD. The balance due, if any, shall be paid when the tenant takes possession of the premises in accordance with the terms of the lease.
(5) Brokerage commissions earned and due the broker, where the tenant is a bank, supermarket chain or where the tenant’s latest published credit rating is “A” or better and no security deposit is required under the lease, shall be paid by the housing company when the lease is approved by HPD.
(6) When requested by HPD, the broker shall submit trade references, financial statements and any other credit information which shall be properly authenticated in order to determine the credit-worthiness of the tenant.
(7) The brokerage agreement shall constitute the complete understanding between the housing company and the broker. There shall be no payments to the broker beyond those authorized by such agreement.
§ 3-17 Housing Company Responsibilities to Tenant/Cooperators.
(a) Tenants Association.
(1) All rental housing companies shall recognize a duly constituted Tenants Association that will be representative of the tenant body as a whole.
(2) A Tenants Association shall be duly constituted when a petition is signed by tenants representing no less than forty (40%) percent of the dwelling units. A group seeking recognition on the basis of such petition must submit the original petition to HPD and a copy to the housing company, and must arrange for the posting of a notice in each building of the development advising the other tenants of their intention to seek recognition. If HPD determines that the proposed group has been duly constituted, it will advise the housing company in writing of its decision to recognize the group. In the event other tenants representing no less than forty (40%) percent of the dwelling units in the development seek recognition of an alternative group, the housing company shall provide for an election to determine which shall be the duly constituted Tenants Association. In such an election each dwelling unit in the development shall be accorded one vote.
(3) Upon recognition of a Tenants Association, an election of officers must be held and the names of the officers of said association shall be furnished to HPD.
(4) HPD reserves the right to review and approve the by-laws and constitution of a Tenants Association.
(5) Members or officers of the Tenants Association must occupy a dwelling unit at the rental housing company development represented by such Tenants Association as his or her primary place of residence.
(1) The rental housing company shall provide the Tenants Association with copies of operating budgets and financial statements of the housing company within 30 days after said documents are filed with HPD.
(2) In a rental development which does not have a duly constituted and recognized Tenants Association, the rental housing company shall maintain copies of the operating budget and financial reports in the management office on site. If there is no office on site, the documents shall be made available upon request.
(3) Any tenant/cooperator or any Tenants Association’s duly authorized representative may audit the books of the housing company during normal business hours and shall have access to the financial records upon which such financial statement is based.
(4) In a mutual housing company, the operating budget and financial statements shall be supplied to all shareholders.
§ 3-18 Lease Termination and Renewals.
(a) Preliminary notice of grounds of eviction, administrative hearing and certificate of eviction. Except as otherwise provided in this subdivision, no eviction proceeding based upon a holdover or a breach of the terms of the lease or occupancy agreement shall be initiated by a housing company against a residential tenant/cooperator without the issuance of a certificate of eviction by HPD following an administrative hearing by an HPD designated hearing officer. The hearing officer's decision shall be final without recourse to an administrative appeal. Notwithstanding the foregoing, such hearing and certificate of eviction shall not be required for any eviction proceeding based upon non-payment of rent/carrying charges or any sum which constitutes rent or additional rent pursuant to the applicable lease or occupancy agreement. Furthermore, at HPD's sole discretion, such hearing and certificate of eviction may be waived in accordance with subdivision (e) of this section. To set an eviction hearing the housing company shall notify HPD in writing of the facts which it contends justify eviction, together with an affidavit stating that a preliminary notice of grounds for eviction has been served upon the tenant/cooperator as follows:
(1) The notice shall be sent to the tenant/cooperator by regular first class mail, and by certified or registered mail, return receipt requested; and
(2) A copy of the notice shall also be served by personal delivery to the tenant/cooperator; or by delivery to a person of suitable age and discretion occupying the apartment in question; or if admittance cannot be obtained and such person cannot be found, by affixing a copy upon the door or placing a copy under the door of the apartment.
(3) The notice may be served simultaneously with any notice to cure which may be required by the tenant/cooperator’s lease/occupancy agreement, and shall advise the tenant/cooperator of the following:
(i) The specific charges against him or her;
(ii) that he or she has the opportunity to appear before an HPD hearing officer to deny or explain the charges against him or her;
(iii) that he or she may retain counsel to represent him or her at a hearing;
(iv) that the findings of the HPD hearing officer, should a hearing take place, may be determinative as to the factual issues.
§ 3-19 Senior Citizen Rent Increase Exemption Program (“SCRIE”).
(a) Background and applicability. Local Law No. 40 of 1976 (§§ 26-601 et seq.) amended the Administrative Code of the City of New York in order to establish an exemption from rent increases for senior citizens who meet the eligibility requirements specified therein, and who reside in a dwelling unit whose rent is regulated or established pursuant to the provisions of Articles II, IV, V or XI of the Private Housing Finance Law. Amendments to the law in 1977 and 1978 made dwelling units in a dwelling subject to or initially subject to a mortgage insured by the federal government pursuant to § 213 of the National Housing Act (12 U.S.C. § 1715e) eligible for the exemption. The Administrative Code was subsequently further amended to include increases in charges due to capital assessments and voluntary capital contributions within the definition of "increase in maximum rent," and to require that rent increase exemptions and tax abatements granted for such assessments and contributions be paid back by the tenant/shareholder to the housing company, and by the housing company to the City, upon transfer of shares. The amendment regarding capital assessments specifically excluded any dwelling unit subject to a mortgage insured or initially insured by the federal government pursuant to § 213 of the National Housing Act, as amended (12 U.S.C. § 1715e). Subdivision (g) of 28 RCNY § 3-19 implements the amendment to the Administrative Code. The rules set forth in this section implement Administrative Code §§ 26-601 et seq., and are applicable as provided therein. In addition, an amendment was passed on September 6, 1977 to allow portability for senior citizens receiving a subsidy under the rent and rehabilitation law, the rent stabilization law and Local Law 40 of 1976. Portability means that a senior citizen with a valid SCRIE subsidy may move within a development, and in addition, certificates issued by the Department for the Aging and HPD are interchangeable under conditions set forth in the law.
(1) The head of household or spouse is 62 years of age or older.
(2) The total disposable income of all members of the household when combined does not exceed the amount provided for in RPTL § 467-c(1)(d).
(3) The increase in maximum rent or carrying charges resulted in the maximum rent or carrying charge equalling or exceeding one-third of the combined disposable income of all members of the household. That portion of a rent or carrying charge increase attributable to gas or electrical utility charges or an increase in dwelling space, services or equipment is excluded from exemption.
(4) The head of household is not receiving any other rent subsidies other than public assistance.
(1) A head of household may apply to HPD for a SCRIE subsidy on a form prescribed and made available by HPD. In addition to the application, he or she must submit any other documentation necessary to assist HPD in its review.
(2) HPD shall review the application and shall notify the applicant of its determi- nation.
(3) When HPD determines that an applicant is eligible, HPD shall advise both the eligible senior citizen and the housing company of the established base rent which the housing company is to charge the senior citizen. The established base rent shall remain the same until a change in circumstance occurs.
(4) Senior citizens receiving benefits under this program must complete an annual recertification form prescribed and made available by HPD.
(5) The effective date of the SCRIE subsidy for applications received by HPD not more than 120 days from the date of the increase shall be the effective date of the increase. The effective date of the SCRIE subsidy for all other applications shall be the first day of the month following the receipt of the application and shall be based only upon the most recent increase in maximum rent.
(6) It shall be illegal for a housing company to collect any amount for which a SCRIE subsidy provides credit or to withhold benefits from a tenant/cooperator entitled to a SCRIE subsidy and collection or retention of any such amount for a dwelling unit occupied by such eligible head of household shall be deemed a rent overcharge. Upon conviction therefor, the housing company and its directors and any employee responsible therefor, shall be guilty of a misdemeanor, punishable by a fine not to exceed one thousand dollars or imprisonment not to exceed six months, or both.
(1) On a quarterly basis, HPD will issue Tax Abatement Certificates to all housing companies which have extended benefits to senior citizens deemed eligible by HPD. The certificates will be in an amount equal to the difference between the approved rent/carrying charges for the dwelling units and the amount of the established base rents charged to the eligible senior citizens.
(2) The housing company, upon receipt of the Tax Abatement Certificate, shall submit the certificate with the next quarterly real estate tax bill to the Department of Finance, paying the amount of the bill less the credit for the amount on the Tax Abatement Certificate. In those instances, where the taxes to be paid are less than the amount to be abated, HPD shall issue a voucher to the housing company for the balance.
(3) The housing company shall provide HPD with a revised rent roll upon implementation of each new rent/carrying charge increase.
(4) HPD, at its discretion, may electronically notify the Department of Finance of the abatement amount in lieu of the issuance of a Tax Abatement Certificate. If HPD electronically notifies the Department of Finance of the abatement amount, such electronic notification shall be deemed to be the equivalent of a Tax Abatement Certificate.
(1) Any change in the status of the head of household or members of household which renders such persons ineligible shall result in the cancellation of benefits.
(2) Any change in income may result in a change in base rent/carrying charges.
(3) It is the obligation of both the recipient of benefits under this program and the housing company to notify HPD of any change in status or income which may affect eligibility.
(4) Failure of a senior citizen receiving benefits to recertify on an annual basis will result in termination of benefits.
(5) If an audit or other means of verification discloses that an exemption is excessive, the amount of tax payable by reason of such disclosure and the statutory penalty thereon, shall be a lien upon the property as of the due date of the tax for which the excessive exemption was claimed. In the event the excessive exemption was not due to any willful fault of the housing company, the amount of tax payable by reason of the disclosure shall be a lien upon the property as of the date for payment of taxes next following certification of such corrected order by HPD.
(1) When a head of household receiving a SCRIE subsidy moves his or her principal residence to another dwelling unit eligible under this program, the head of household may apply to HPD for a SCRIE subsidy relating to the subsequent dwelling unit which shall provide that the head of household shall be exempt from paying that portion of the maximum rent for the subsequent dwelling unit which is the least of the following:
(i) The amount by which the rent for the subsequent dwelling unit exceeds the established base rent actually required to be paid in the original dwelling unit;
(ii) the amount of rent abated in the most recent month in the original dwelling unit; or
(iii) the amount by which the maximum rent of the subsequent dwelling unit exceeds one-third of the continued income of all members of the household.
(2) A senior citizen seeking to transfer his or her rent exemption must complete and submit a SCRIE application and portability request prescribed and made available by HPD. In addition to submission of the application form and portability request, proof of income and proof of previous rent and subsidy are required.
(1) This subdivision implements the provisions of §§ 26-605 and 26-615 of the Administrative Code regarding SCRIE subsidies for charges attributable to capital assessments and project-wide voluntary capital contributions, which are approved by HPD, where applicable.
(2) i) A head of household who receives an increase in carrying charges based upon a charge attributable to capital assessments or voluntary capital contributions shall make an application for such certificate to HPD on a form prescribed and made available by HPD.
(ii) In addition to the application, a head of household must submit any other documentation necessary to assist HPD in its review.
(3) HPD shall review the application and any supporting documentation to determine the eligibility of the head of household. HPD shall approve or disapprove applications, and, if it approves, shall issue a written notification to such head of household and to the affected housing company indicating the total amount of SCRIE subsidy available pursuant to this subdivision. If the application is disapproved, HPD shall issue a written notification of disapproval to such head of household indicating the reasons for the disapproval.
(4) Upon receipt of notification of eligibility, the housing company shall provide the decrease in charges applicable to the capital assessment or voluntary capital contribution, and HPD shall reimburse the affected housing company in accordance with the procedures provided in subdivision (d) of this section in an amount equal to the total capital assessment or capital contribution.
(5) i) Documentation of imposition of a capital assessment or voluntary capital contribution shall be provided by the affected housing company to HPD, in addition to any further information required by HPD to make a determination of eligibility under this subdivision.
(ii) A housing company which imposes a capital assessment or voluntary capital contribution shall provide notice to all persons affected by such capital assessment or voluntary capital contribution of the potential availability of a SCRIE subsidy pursuant to this subdivision. Such notice shall be included in the notice to such person of the imposition of such capital assessment or voluntary capital contribution.
(6) i) Notification and documentation of any transfer of shares by an eligible head of household who has received a SCRIE subsidy under this subdivision shall be provided in writing to HPD by the affected housing company immediately upon the closing date of such transfer except in cases involving a succession of rights claim, in which case notification shall be made in writing within five days of approval of the succession claim.
(ii) The affected housing company shall be entitled to deduct from the amount to be paid to such eligible head of household for the sale of such shares all amounts previously covered by a SCRIE subsidy which are attributable to a capital assessment or voluntary capital contribution. Where there is a transfer of shares through succession rights and where the successor is not entitled to a SCRIE subsidy under this subdivision, the affected housing company shall be entitled to receive a payment from the successor in an amount equal to all SCRIE subsidies attributable to a capital assessment or voluntary capital contribution.
(iii) Such housing company shall not approve the transfer of shares unless it has received the payment required by subparagraph (ii) of this paragraph, or made the deduction therein authorized.
(iv) Payment by such housing company of the amount attributable to the capital assessment or voluntary capital contribution set forth in subparagraph (ii) of this subdivision shall be made to the Department of Finance through an adjustment in tax abatement status issued to the Department of Finance by HPD, or by remittance by such housing company of such amount directly to the Department of Finance and written notification to HPD of such payment by the housing company within 90 days of the collection thereof. Payments due to the City in accordance with this subparagraph shall be deemed a tax lien and may be enforced in any manner authorized for the collection of delinquent taxes on real property.
(7) The provisions of this section shall be applicable to an application pursuant to this subdivision except where in conflict with this subdivision, in which case, the provisions of this subdivision shall control.
§ 3-20 Assignment of tax. [Repealed]
(a) General. Certain limited profit housing companies have been refinanced under § 223(f) of the National Housing Act through the New York City Housing Development Corporation (HDC). Such housing companies remain subject to the provisions of the Private Housing Finance Law and the rules and regulations governing city-aided limited profit housing companies, except as provided otherwise by agreement with, or regulations of, the U.S. Department of Housing and Urban Development (HUD). In general, all matters involving management, maintenance, and operation shall be supervised by HUD except as otherwise set forth by statute or in this section. Compliance with the requirements of the Private Housing Finance Law shall continue to be supervised by HPD. To the extent that HUD should relinquish authority over matters such as rent setting and management supervision, those responsibilities shall revert back to HPD.
(1) Audited Financial Statement
(2) Annual Budget (HDC only)
(3) Surcharge Tabulation Sheets (HPD only)
(4) Income Affidavits (HPD only)
(5) Waiting Lists and Internal Transfer Lists (HPD only)
(6) Original Insurance Policies to HDC
(7) Copies of excess rent reports as required in the Federal 236 interest reduction subsidy program
(8) Data relating to Senior Citizen Rent Increase Exemption Program (HPD only)
(9) Rent Roll (at request of HPD)
(10) Data relating to compliance by the housing company with any applicable law, rules, regulation or administrative order of the city, state or federal government (at request of HPD)
(11) Amendments to Certificates of Incorporation, by-laws, and partnership agree- ments
(12) Any and all books and records of the housing company which HPD directs to be made available
(1) notify HUD, HDC and HPD in writing, and
(2) obtain the prior written consent of HDC and HUD (and, where necessary, HPD) except that such notification and consent is not required to perform such minor repairs as do not require a permit from the City of New York Department of Buildings or to perform emergency repairs.
§ 3-22 Form of Residential Lease.
The form of residential lease including occupancy agreements utilized by housing companies is subject to the approval of HPD and shall be submitted to HPD, if requested. All leases shall be for a minimum term of one year. Failure to comply with the foregoing requirement shall in no event be deemed to afford a defense to the enforcement of a lease by a housing company.
§ 3-23 Equal Opportunity Policy.
All housing companies shall comply with all applicable Federal, state and local laws, rules and regulations concerning equal opportunity in housing.
§ 3-24 Special Powers.
Notwithstanding any other provisions of this chapter, HPD may authorize special emergency measures in any instance in which it is determined by HPD that a development is in serious financial difficulty.
§ 3-25 Miscellaneous Provisions.
(a) HPD Discretion. All determinations to be made by HPD in accordance with this chapter shall be in the sole discretion of HPD.
(a-1) Waiver. Rules may be waived in exceptional circumstances upon the initiative of the commissioner if, in the opinion of the commissioner, their application to a specific case, or under an emergency condition, may be shown to effect undue hardship.
§ 4-01 Reports. [Repealed]
*§ 4-02 Limitations. [Repealed]* ::
§ 4-03 Limitations on Sale of Shares. [Repealed]
*§ 4-04 Verification of Tenant-Income Limitations. [Repealed]* ::
§ 4-05 Surcharges (Rental Procedure). [Repealed]
*§ 4-06 Schedule of Fees. [Repealed]* ::
§ 5-01 Scope and Construction.
(a) Scope. This chapter governs the granting of tax exemption and tax abatement pursuant to § 489 of the Real Property Tax Law of the State of New York, § 11-243, formerly § J51-2.5 of the Administrative Code of the City of New York, and Chapter 61 of the New York City Charter, including the procedure for filing an application for tax exemption and tax abatement and the issuance of Certificates of Eligibility and Reasonable Cost by the Office of Tax Incentive Programs of the Department of Housing Preservation and Development.
§ 5-02 Definitions.
As used in this chapter, the following terms have the meanings indicated below.
Act. “Act” means § 11-243 of the Administrative Code as amended.
Actual Assessed Value. “Actual Assessed Value” means the value of a property for real property tax purposes as determined by assessors as defined in Real Property Tax Law § 102(1).
Administrative Code. “Administrative Code” means the Administrative Code of the City of New York, as amended.
Alterations or improvements. “Alterations” or “improvements” means only those physical changes to an existing dwelling set forth in 28 RCNY § 5-08.
Attorney General. “Attorney General” means the Attorney General of the State of New York.
Bedroom. “Bedroom” means any living room as defined in § 27-2004 of the Housing Maintenance Code and § 4 of the Multiple Dwelling Law, after excluding the primary living room and the kitchen, except as provided in 28 RCNY § 5-03(e)(2)(ii) and in 28 RCNY § 5-03(e)(2)(iv).
BLDS. “BLDS” means HPD’s Division of Building and Land Development Services or any successor unit.
BLDS Inspection. “BLDS Inspection” means an inspection by BLDS of the items of work that are claimed in an application submitted pursuant to 28 RCNY § 5-05.
Building. “Building” means a complete or substantially complete permanent improvement for occupancy or use within prior to the commencement of construction of alterations, improvements or conversion, provided such improvement is permanently affixed to the land, and that such improvement, exclusive of the land, has an assessed valuation of more than one thousand dollars ($1,000) for the fiscal year immediately preceding the commencement of construction, provided that such assessed valuation test shall not apply to alterations, improvements or conversions is carried out with substantial governmental assistance.
Building Permit. “Building Permit” means a permit that is issued by the Department of Buildings to authorize work on Conversions, Alterations or Improvements.
Certificate of Eligibility and Reasonable Cost. “Certificate of Eligibility and Reasonable Cost” means the certificate issued by the Office pursuant to 28 RCNY § 5-05(g)(3).
Certificate of Occupancy. “Certificate of Occupancy” means a Temporary Certificate of Occupancy or a Permanent Certificate of Occupancy.
Certified reasonable cost or CRC. “Certified reasonable cost” or “CRC” means the cost of a conversion or alterations or improvements certified by the Office to be eligible for the benefits of the Act pursuant to the procedures set forth in this chapter, as evidenced by the issuance by the Office of a “Certificate of Eligibility and Reasonable Cost.”
City. “City” means the City of New York.
Class A multiple dwelling. “Class A multiple dwelling” means a Class A multiple dwelling as defined in § 4 of the Multiple Dwelling Law, and shall include a garden-type maisonette dwelling project as defined below. A “Class A multiple dwelling used for single room occupancy” means a dwelling occupied pursuant to § 248 of the Multiple Dwelling Law.
Class B multiple dwelling. “Class B multiple dwelling” means a Class B multiple dwelling as defined in § 4 of the Multiple Dwelling Law.
Commencement of Construction.
(a) For work requiring a permit, “Commencement of Construction” means:
(1) the date of issuance of a Building Permit, or
(2) if physical alterations commenced prior to obtaining a required Building Permit, the actual start date, or
(3) for projects eligible pursuant to 28 RCNY § 5-03(a)(1), (3), (4), (9) or (10), the actual Commencement of Construction in good faith based on prior issuance of a Building Permit. Demolition work does not constitute “Commencement of Construction.”
(b) If the issuance of a Building Permit is not required by law, Commencement of Construction means the date any physical operation has commenced solely for the purpose of making eligible Alterations or Improvements. The Office shall require that the Commencement of Construction date be confirmed by an affidavit of a registered architect or licensed professional engineer, along with such other information as the Office may require to substantiate such date, including, but not limited to, an affidavit from the owner, a copy of the work contract, invoices, cancelled checks and a contractor’s affidavit. If an application contains a series of Major Capital Improvements, the Commencement of Construction date is that of the first Major Capital Improvement for which benefits are claimed.
Commissioner. “Commissioner” means the Commissioner of the Department of Housing Preservation and Development or his or her designee.
Common area. “Common area” means the area in an existing dwelling other than the area which is within the interior walls of individual dwelling units.
Completion of Construction. “Completion of Construction” means the earlier of:
(i) the date of issuance or reissuance of a Permanent Certificate of Occupancy;
(ii) the date of issuance of a Temporary Certificate of Occupancy for all of the dwelling units therein, provided the only work remaining to secure a Permanent Certificate of Occupancy is work to be performed or completed in space to be used exclusively for non-residential purposes; or
(iii) the date of the issuance of a sign-off by the Department of Buildings as evidenced by the J-3, a computer printout or such other official documentation as may be required by the Department of Buildings and is acceptable to the Office if issued in connection with an eligible Conversion, Alteration or Improvement; provided, however, that
(a) if none of the documents set forth above are required by law, “Completion of Construction” means that date on which physical operations to undertake Alterations or Improvements are concluded as confirmed by the submission of an affidavit of a registered architect or licensed professional engineer, along with such other information as the Office may require to substantiate such date, including, but not limited to, an affidavit from the owner, a copy of the work contract, invoices, cancelled checks and a contractor’s affidavit;
(b) if the applicant is a Limited Profit Housing Company which owns and operates a planned unit development consisting of at least fifteen thousand (15,000) dwelling units, “Completion of Construction” means that date on which physical operations to undertake Alterations or Improvements are concluded as confirmed by the submission of an affidavit of a registered architect or licensed professional engineer, along with such other information as the Office may require to substantiate such date, including, but not limited to, an affidavit from the owner, a copy of the work contract, invoices, cancelled checks and a contractor’s affidavit. Notwithstanding the foregoing, all required sign-offs including, but not limited to, the J-3 issued by the Department of Buildings, must be submitted to the Office before it issues a Certificate of Eligibility and Reasonable Cost pursuant to 28 RCNY § 5-05(g)(3) to such an applicant; and
(c) if an Alteration Type-1 Permit was issued to any applicant other than an applicant who is a Limited Profit Housing Company which owns and operates a planned unit development consisting of at least fifteen thousand (15,000) dwelling units, the only acceptable evidence of Completion of Construction shall be a Certificate of Occupancy.
Condominium. “Condominium” means any dwelling unit that is owned pursuant to the Condominium Act and is situated in a Class A Multiple Dwelling that either (a) has had an Offering Plan accepted for filing by the Attorney General, (b) has received a “no action” letter from the Attorney General, or (c) has demonstrated that it is not subject to the requirements of § 352(e) of the General Business Law.
Condominium Act. “Condominium Act” means Article IX-B of the Real Property Law.
Conversion. “Conversion” means only those items of work set forth in 28 RCNY § 5-08 which are necessary for the conversion of any building not a Class A multiple dwelling, into a Class A multiple dwelling. For purposes of eligibility for benefits, an interim multiple dwelling claiming benefits for conversion based on compliance with the standards of safety and fire protection set forth in Article 7-B of the Multiple Dwelling Law shall be deemed a Class A multiple dwelling.
Cooperative. “Cooperative” means any Building which is operated exclusively for the benefit of persons or families who are entitled to occupancy in dwelling units by reason of ownership of stock, membership, or other evidence of ownership in the corporate owner of the Building, or for the benefit of such persons or families entitled to occupancy in dwelling units under applicable provisions of law without ownership of stock, membership, or other evidence of ownership in the corporate owner of the Building, where such Building either (a) has had an Offering Plan accepted for filing by the Attorney General, (b) has received a “no action” letter from the Attorney General or (c) has demonstrated that it is not subject to the requirements of § 352(e) of the General Business Law.
Department of Buildings. “Department of Buildings” means the Department of Buildings of the City.
Department of Environmental Protection. “Department of Environmental Protection” means the Department of Environmental Protection of the City.
Department of Finance. “Department of Finance” means the Department of Finance of the City.
Designated historic district or landmark site or structure. “Designated historic district or landmark site or structure” means an historic district or landmark site or landmark structure as designated by the Landmarks Preservation Commission of the City.
DHCR. “DHCR” means the New York State Division of Housing and Community Renewal.
Disposition of Funds Statement. “Disposition of Funds Statement” means written confirmation of funds actually advanced for construction under a building loan agreement made pursuant to Article 8, 8-a, 11, 12, 15 or 22 of the Private Housing Finance Law, or § 312 of the United States Housing Act of 1964 (42 U.S.C. § 1452b), or the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. §§ 12701 et seq.) or § 696-a or § 99(h) of the General Municipal Law, or any other City-supervised housing program, or, in the discretion of the Office, other governmentally supervised housing programs.
Existing dwelling. “Existing dwelling” means a Class A multiple dwelling, including a garden-type maisonette dwelling project, or one or two Class A dwelling units in a building over space used for commercial occupancy which was in existence prior to the commencement of construction of alterations or improvements for which tax exemption or tax abatement is claimed under the terms of the Act, provided that a valuation for the improvement of more than one thousand dollars ($1,000), exclusive of the land, appears on the annual record of assessed valuation of the City for the fiscal year immediately preceding the commencement of construction of alterations or improvements, and provided further that such assessed valuation test shall not apply if the alterations, improvements or conversion are carried out with substantial governmental assistance.
Fannie Mae. “Fannie Mae” means the Federal National Mortgage Association.
Floor Area. “Floor Area” of a Building means the gross square footage of all of the floors and the accessory structures of the Building on the same lot, as measured from the exterior faces of exterior walls or from the center line of party walls. “Floor Area” of a dwelling unit in a Building means the gross square footage within the dwelling unit measured from the interior faces of the demising partitions or party walls.
Garden-type maisonette dwelling project. A “garden-type maisonette dwelling project” shall mean a project consisting of a series of dwelling units which together and in their aggregate were arranged or designed to provide three or more apartments and are provided as a group collectively with all essential services such as, but not limited to, water supply, house sewers and heat, and which are in existence and operated as a unit under single ownership on the date upon which an application for the benefits of the Act is received by the Office, even though Certificates of Occupancy may have been issued for portions thereof as private dwellings.
General Business Law. “General Business Law” means the General Business Law of the State of New York.
Gross cubic content. “Gross cubic content” of a building means the volume within the exterior faces of the perimeter walls (or center line of party walls), above legal grade, and below the roof level, plus any legal residential space below grade level. Roof bulkheads or roof penthouses used exclusively for machinery or equipment shall not be included. New exterior stair towers or elevator shafts shall not be included, unless they substitute for existing stair or elevator space which is converted to residential space.
HDFC. “HDFC” means a housing development fund company organized pursuant to Article XI of the Private Housing Finance Law.
Hotel. “Hotel” shall mean those buildings defined as Hotels by 28 RCNY § 5-03(f)(4).
Housing Maintenance Code. “Housing Maintenance Code” means the Housing Maintenance Code of the City, constituting §§ 27-2001 et seq. of the Administrative Code, as amended.
HPD. “HPD” means the Department of Housing Preservation and Development of the City.
HUD. “HUD” means the United States Department of Housing and Urban De- velopment.
Increase in gross cubic content. “Increase in gross cubic content” means any portion of a building that results from new construction as distinguished from alterations or improvements to the gross cubic content in existence immediately prior to commencement of construction.
Institutional lender. “Institutional lender” means any municipal, federal or state agency and any savings or commercial bank, life insurance company, public real estate investment company, pension fund or any other entity having assets in excess of fifty million dollars ($50,000,000), whose mortgage loans are subject to regulation of a federal or state agency.
Itemized Cost Breakdown Schedule. “Itemized Cost Breakdown Schedule” means the schedule set out in 28 RCNY § 5-08.
Landmark. “Landmark” means an improvement which has been designated as a landmark by the Landmarks Preservation Commission of the City or which is within the boundaries of a historic district designated by the Landmarks Preservation Commission of the City.
Limited Profit Housing Company. “Limited Profit Housing Company” means a limited profit housing company organized pursuant to Article II of the Private Housing Finance Law.
Major capital improvement or MCI. “Major capital improvement” or “MCI” means only those items of work designated as major capital improvements (MCI’s) and set forth, preceded by an asterisk, in 28 RCNY § 5-08.
Minimum tax zone. “Minimum tax zone” means the area within the Borough of Manhattan in which tax abatement benefits are limited as set forth in 28 RCNY § 5-06(e)(2).
Moderate rehabilitation. “Moderate rehabilitation” means a scope of work in a substantially occupied Class A multiple dwelling which includes a major capital improvement in not less than one of the five categories set forth in 28 RCNY § 5-03(a)(6), and in which the certified reasonable cost, calculated as set forth in 28 RCNY § 5-03(a)(6), equals or exceeds $2,500 (two thousand five hundred dollars) per dwelling unit, and meets the notice and filing requirements set forth in 28 RCNY § 5-03(h)(1).
Mutual company. “Mutual company” shall have the same meaning as set forth in section two of the Private Housing Finance Law.
Mutual Redevelopment Company. “Mutual Redevelopment Company” means a Redevelopment Company that is a corporation operating exclusively for the benefit of the persons or families who are entitled to occupancy in a project of such Redevelopment company by reason of ownership of shares in such Redevelopment Company.
Non-targeted Area. “Non-targeted Area” means a geographic area in the city of New York that is not located in a Targeted Area.
Offering Plan. “Offering Plan” means an offering statement or plan with respect to a Condominium or Cooperative as required by § 352-e of the General Business Law.
Office. “Office” means the Office of Tax Incentive Programs of HPD, or any successor thereto authorized to administer this chapter.
Ordinary repairs. “Ordinary repairs” means those items of work listed in the Itemized Cost Schedule as ordinary repairs, i.e., those items not preceded by an asterisk.
Permanent Certificate of Occupancy. “Permanent Certificate of Occupancy” means a permanent certificate of occupancy that is issued by the Department of Buildings with respect to a Class A Multiple Dwelling for all dwelling units contained therein.
Permanent residential use. “Permanent residential use” shall mean the lease of all residential units for residential purposes as set forth in 28 RCNY § 5-03(f)(4).
Private dwelling. “Private dwelling” means any building or structure which is either:
(1) exclusively designed and occupied for residential purposes by not more than two families or
(2) for which the Department of Buildings has issued a Certificate of Occupancy which describes the building as intended exclusively for not more than two families. Private dwelling shall also be deemed to include a series of one or two-family dwelling units each of which faces or is accessible to a legal street or public thoroughfare, if each dwelling unit is equipped as a separate dwelling unit with all essential services, and if each such unit is arranged so that it may be approved as a legal one-family or two-family dwelling.
Private Housing Finance Law. “Private Housing Finance Law” means the Private Housing Finance Law of the State of New York.
Reasonable cost. “Reasonable cost” means the cost of a conversion, alteration or an improvement as conclusively determined and certified by the Office pursuant to this chapter.
Redevelopment Company. “Redevelopment Company” means a company organized pursuant to Article V of the Private Housing Finance Law.
Rehabilitation schedule. “Rehabilitation schedule” means the Itemized Cost Breakdown Schedule.
Rules. “Rules” means this chapter of the Rules of the City of New York.
Single room occupancy. “Single room occupancy” means occupancy in a multiple dwelling by one or more persons of a room or rooms without a private kitchen or kitchenette or a private bathroom or separate means of egress for occupants thereof to the public areas of the multiple dwelling.
Substantial governmental assistance. “Substantial governmental assistance” shall mean a project carried out with grants, loans or subsidies from any federal, state or local agency or instrumentality, including, without limitation, financing or insurance provided by the State of New York Mortgage Agency and New York City Residential Mortgage Insurance Corporation, but shall not include (1) taxable bonds issued by a federal, state, or local agency or instrumentality, (2) purchase money mortgages from a federal, state or local agency or instrumentality, or (3) any grant, loan or subsidy from a federal, state or local agency or instrumentality which does not specifically require a program of affordable housing (e.g., energy conservation grants). In the discretion of the Office, a below market sale by a Federal, state or local agency or instrumentality or a written agreement with a Federal, state or local agency or instrumentality for development of affordable housing shall qualify as a subsidy.
Substantial interest. “Substantial interest” as used in 28 RCNY § 5-03(h)(2) shall mean ownership of an interest of ten percent (10%) or more in a property or entity owning property or sponsoring a conversion, alteration or improvement.
Substantial rehabilitation. “Substantial rehabilitation” means any rehabilitation of a Class A multiple dwelling where the scope of work includes at least four of the systems listed in 28 RCNY § 5-03(a)(6)(i), or where, for City-owned buildings or buildings conveyed by deed from the Commissioner of Finance eligible for benefits under 28 RCNY § 5-03(a)(9), the scope of work includes rehabilitation work in at least four major systems in elevator buildings or three major systems in non-elevator buildings, and where major systems include heating, plumbing, electricity, elevator, windows and roof (replacement or covering with a new roof of at least seventy-five percent (75%) of the aggregate roof area), provided further that work done during City ownership or work financed by a City program but not eligible for benefits because outside of the required time limits, may be counted toward the required systems if the work was done and the system has a substantial remaining useful life at the time of application as evidenced by a certification by the Commissioner which may be based on such information as permits, sign-offs, disposition of funds statements, inspections or other program records.
Substantially occupied. “Substantially occupied” shall mean that at least sixty percent (60%) of the units in a building are occupied by permanent residential tenants immediately prior to the start of rehabilitation, during the entire period of rehabilitation (except for temporary periods of relocation in substantially governmentally assisted projects) and immediately subsequent to completion of construction of the rehabilitation.
Successor in interest. “Successor in interest” shall mean an institutional lender which originates or acquires an interest in a loan to finance alterations, improvements or a conversion eligible for benefits under this chapter and which acquires title to the alterations, improvements or conversion as result of the original owner’s default on such loan, whether by mortgage foreclosure or deed in lieu of foreclosure.
Supervising agency. “Supervising agency” shall have the same meaning as set forth in section two of the Private Housing Finance Law.
Targeted Area. “Targeted Area” means a geographic area in the city of New York in the zip code listed below that has been determined by the department of health and mental hygiene to have high rates of children with environmental intervention blood lead levels:
~
| Bronx | 10458 | Belmont-Fordham-Bedford Park |
|---|---|---|
| Bronx | 10468 | University Heights-Kingsbridge |
| Brooklyn | 11205 | Fort Greene-Clinton Hill |
| Brooklyn | 11206 | Williamsburg-Bedford Stuyvesant |
| Brooklyn | 11216 | Bedford Stuyvesant |
| Brooklyn | 11217 | Park Slope-Boerum Hill |
| Brooklyn | 11218 | Kensington-Windsor Terrace |
| Brooklyn | 11221 | Bushwick-Bedford Stuyvesant |
| Brooklyn | 11222 | Greenpoint |
| Brooklyn | 11225 | Crown Heights-Prospect Lefferts |
| Brooklyn | 11226 | Flatbush |
| Brooklyn | 11230 | Midwood |
| Brooklyn | 11233 | Stuyvesant Heights-Ocean Hill |
| Brooklyn | 11235 | Sheepshead Bay-Brighton Beach |
| Brooklyn | 11237 | Bushwick |
| Brooklyn | 11238 | Prospect Heights |
| Manhattan | 10026 | South Central Harlem |
| Manhattan | 10027 | Manhattanville-Harlem |
| Manhattan | 10031 | Hamilton Heights |
| Manhattan | 10032 | South Washington Heights |
| Manhattan | 10033 | Middle Washington Heights |
| Queens | 11102 | Old Astoria |
| Queens | 11385 | Ridgewood-Glendale |
~
Tax abatement exclusion zone. “Tax abatement exclusion zone” means the area within the Borough of Manhattan in which tax abatement benefits are limited as set forth in 28 RCNY § 5-06(e)(3).
Temporary Certificate of Occupancy. “Temporary Certificate of Occupancy” means a temporary certificate of occupancy that is issued by the Department of Buildings with respect to a Class A multiple dwelling for all dwelling units contained therein.
Zoning Resolution. “Zoning Resolution” means the Zoning Resolution of the City, as amended.
§ 5-03 Eligible Projects and Eligibility Requirements.
(a) Eligible projects. Subject to the limitations relating to single room occupancy and permanent residential use set forth in 28 RCNY §§ 5-03(f)(4), 5-04(a)(4) and 5-07(f)(1), the following classes of projects may be granted tax exemption and tax abatement:
(1) Conversion of any building or structure classified as a Class B multiple dwelling or a Class A multiple dwelling used for single room occupancy into a Class A multiple dwelling, but only if the conversion is carried out with substantial governmental assistance.
(2) Conversion of residential units covered by Article 7-C of the Multiple Dwelling Law in buildings classified as interim multiple dwellings pursuant to such article and registered with the New York City Loft Board to units which are in compliance with the standards of safety and fire protection set forth in Article 7-B of the Multiple Dwelling Law or to units which have a Certificate of Occupancy as part of a Class A multiple dwelling. Provided, that if only a portion of a building is eligible as an interim multiple dwelling, benefits shall be pro-rated between such portion and the remaining part of the building.
(3) Conversion permitted as of right by the Zoning Resolution of any non-residential Building or structure situated in the borough of Manhattan into a Class A Multiple Dwelling, provided that the Conversion was completed prior to December 31, 2011.
(4) Conversion permitted as of right by the Zoning Resolution of any non-residential Building or structure situated in the boroughs of the Bronx, Brooklyn, Queens or Staten Island into a Class A Multiple Dwelling, provided that the Conversion was completed prior to December 31, 2011.
(5) Alterations or improvements to the exterior of a building visible from a public street, provided the alterations or improvements are made pursuant to a Permit for Minor Work, Certificate of Appropriateness, or Certificate of No Effect issued by the Landmarks Preservation Commission with respect to a landmark and the building or structure is otherwise eligible and either an existing dwelling or a building other than a private dwelling, which is being converted into a Class A multiple dwelling. Such alterations are eligible for the full amount spent on the required work whether or not the work qualifies as an MCI, provided, however, that each item of work must appear on the Itemized Cost Breakdown Schedule as set forth in 28 RCNY § 5-08.
(6) Alterations or improvements constituting a moderate rehabilitation of a substantially occupied Class A multiple dwelling, provided the project meets all the conditions set forth below:
(i) The scope of work must includes a major capital improvement in not less than one of the following five categories designated below:
(A) Elevators:
(a) Replacement of existing unit in its entirety;
(b) Replacement of traction machine;
(c) Replacement of one or two-speed controller; or
(d) Conversion of manual to automatic.
(B) Heating:
(a) Boiler and/or burner replacement; or
(b) Piping, heat, mains, risers, branches in all dwelling units.
(C) Plumbing:
(a) Piping (gas), risers and branches in all dwelling units;
(b) Piping (waste and vent), mains, risers branches in all dwelling units;
(c) Piping (water-main and risers), mains, risers, branches in all dwelling units; or
(d) Sprinklers, in entire building.
(D) Wiring:
(a) Adequate in all dwelling units; or
(b) New in all dwelling units.
(E) Window and trim replacement: provided that all the windows are replaced in at least ninety percent (90%) of all residential units; and
(ii) The scope of work must have an average certified reasonable cost of not less than two thousand five hundred dollars ($2,500) for each dwelling unit in existence at the commencement of construction of the rehabilitation, comprised exclusively of major capital improvements, exclusive of any certified reasonable cost for ordinary repairs.
(iii) For the purpose of moderate rehabilitation, a Class A multiple dwelling is substantially occupied if at least sixty percent (60%) of the units are occupied by permanent residential tenants immediately prior to the start of rehabilitation, during the entire period of rehabilitation (except, in substantially governmentally assisted projects, for temporary periods of relocation pursuant to a governmentally supervised plan of temporary relocation) and immediately subsequent to completion of construction of the rehabilitation.
(7) Alterations or improvements to an existing dwelling; provided that such items of work are set forth in 28 RCNY § 5-08 and are necessary to eliminate presently existing unhealthy or dangerous conditions or to replace inadequate and obsolete sanitary facilities, including asbestos abatement to the extent required by any federal, state or local law.
(8) Alterations or improvements designated as energy conservation items in 28 RCNY § 5-08. In order to be eligible pursuant to this paragraph the building being altered or improved must be an existing dwelling.
(9) Alterations or improvements commenced on or after September 1, 1987 constituting a substantial rehabilitation of a Class A multiple dwelling or a conversion of a building or structure into a Class A multiple dwelling as part of a program to provide housing for low and moderate income households, provided that:
(i) such alterations or improvements or conversions shall be aided by a grant, loan or subsidy from any federal, state or local agency or instrumentality. For purposes of this paragraph, the term “low and moderate income households” shall mean households having an annual household income no greater than one hundred sixty-five percent (165%) of area median income for the Metropolitan Statistical Area as determined by HUD. Notwithstanding the foregoing sentence, HPD shall grant benefits to a building if no more than eighty percent (80%) of units are rented to households having an annual household income no greater than one hundred eighty percent (180%) of such area median income, provided at least twenty percent (20%) of the units in such building are rented to households with an annual household income no greater than eighty percent (80%) of such area median income.
(ii) [Reserved.]
(10) Conversion of a property classified under the zoning resolution as a non-profit institution with sleeping accommodations into a Class A multiple dwelling, but only if such conversion is carried out with substantial governmental assistance.
(11) Alterations or improvements to any private dwelling, or conversion of any private dwelling to a Class A multiple dwelling, or conversion of any multiple dwelling to a private dwelling, provided that in each instance the alterations, improvements or conversion are carried out with substantial governmental assistance.
(1) Items of work designated as major capital improvements in the itemized cost breakdown schedule contained in 28 RCNY § 5-08 shall be eligible for tax benefits. Except for purposes of 28 RCNY § 5-03(c)(1)(iii), any item of work set forth in 28 RCNY § 5-08 shall also be considered a major capital improvement if done pursuant to an Alteration Type-I Permit issued by the Department of Buildings or if it is part of the scope of work of a moderate rehabilitation.
(2) An existing dwelling shall not be eligible to receive tax abatement or tax exemption for any item of work designated as a major capital improvement if it is receiving tax abatement or tax exemption for the same or a similar major capital improvement at the time of application for tax benefits, except as provided in 28 RCNY § 5-04(b)(4).
(1) Ordinary repairs are those items of work listed in the Itemized Cost Breakdown Schedule which are not preceded by an asterisk. The replacement of any component part of any item of work listed in 28 RCNY § 5-08 is also an ordinary repair. Ordinary repairs are not eligible for tax abatement unless they are:
(i) Made to a common area; and are
(A) Certified to have been started and completed within a twelve month period by an affidavit:
(a) of a registered architect or a licensed professional engineer; or
(b) by the applicant. Certification by the applicant must be substantiated to the satisfaction of the Office by cancelled checks or such other proof of payment as the Office shall require, contractors’ affidavits and/or such other information as may be required by the Office to substantiate such completion of construction; and
(B) Made concurrently with a major capital improvement to such common area which requires a permit by the Department of Buildings. Ordinary repairs are made concurrently with a major capital improvement if they are started no earlier than sixty days before and no later than sixty days after the issuance of a building permit for the major capital improvement; or
(ii) Done pursuant to an Alteration Type-I Permit issued by the Department of Buildings; or
(iii) Done as part of a moderate rehabilitation pursuant to 28 RCNY § 5-03(a)(6) provided, however, that only major capital improvements shall be counted to meet the requirement of 28 RCNY § 5-03(a)(6)(ii) that the CRC for a moderate rehabilitation must equal or exceed an average of two thousand five hundred dollars ($2,500) per dwelling unit; or
(iv) In the case of projects described in 28 RCNY § 5-03(a)(9), done pursuant to an Alteration Type-II Permit.
(2) The certified reasonable cost for ordinary repairs may not exceed twice the amount actually expended on the designated concurrent major capital improvement, exclusive of any such ordinary repairs.
(3) An existing dwelling is not eligible to receive tax abatement for any item of work designated as an ordinary repair if the existing dwelling was receiving tax abatement for ordinary repairs pursuant to the Act as of the December thirty-first of the calendar year preceding the date of the application to the Office, unless the ordinary repair independently qualifies under this subdivision (c) as eligible for tax benefits. Tax abatement may not be received for repairs to any item for which benefits of tax abatement are already being received.
(1) In order to receive tax benefits pursuant to the Act, eligible projects, except for conversions described in 28 RCNY § 5-03(a)(2), must be completed as follows:
(A) for eligible projects that are completed prior to December 31, 2011, within thirty-six months following the Commencement of Construction;
(B) for eligible projects that are completed on or after December 31, 2011, within thirty months following the Commencement of Construction; or
(C) for eligible projects carried out with Substantial Governmental Assistance or Alterations or Improvements undertaken by an HDFC which are carried out in a property transferred from the City if such Alterations or Improvements are completed within eighty-four months after the date of transfer, within sixty months following the Commencement of Construction. Notwithstanding the foregoing, all such Conversions, Alterations or Improvements must be completed prior to June 30, 2015.
(2) In a project with multiple Buildings, if all Buildings are not completed prior to December 31, 2011 and within the thirty-six month period following Commencement of Construction, or on or after December 31, 2011 and within the thirty-month period following Commencement of Construction, as applicable, applications for benefits may be filed for separate Buildings or separate groups of Buildings which are on the same tax block and lot and are completed within the applicable time period, provided that separate Building Permits are in effect for each such filing.
(2-a) For a project with multiple Buildings eligible for the sixty-month completion period established pursuant to subparagraph (C) of paragraph one of this subdivision in which all of the Buildings in such project are not completed within such period, separate applications for benefits may be filed either for: (A) different items of governmentally-assisted work completed within such sixty-month period, or (B) benefits for separate Buildings or separate groups of Buildings that are on the same tax block and lot and are completed within such sixty-month period, provided that separate Building Permits are in effect for each such filing.
(3) In order to receive the tax benefits pursuant to the Act, an application for a Certificate of Eligibility and Reasonable Cost must be filed with the Office after the Completion of Construction and (A) for Conversions, Alterations or Improvements completed before December 31, 2011, not later than forty-eight months following the Commencement of Construction, (B) for Conversions, Alterations or Improvements completed on or after December 31, 2011, not later than thirty-six months following the Commencement of Construction, or (C) for applications for benefits pursuant to 28 RCNY § 5-03(a)(2), not later than twelve months following the Completion of Construction.
(4) At the discretion of the Commissioner, the time to file an application for a Certificate of Eligibility and Reasonable Cost may be extended to not later than seventy-two months following the Commencement of Construction for any project that is carried out with Substantial Governmental Assistance.
(5) An application for a Certificate of Eligibility and Reasonable Cost must contain all documentation required by 28 RCNY § 5-05 and be completed and filed with the Office as follows:
(A) for Conversions, Alterations or Improvements that are completed before December 31, 2011, within twenty-four months of the initial filing date with the Office;
(B) for Conversions, Alterations or Improvements that are completed on or after December 31, 2011, within twelve months of the initial filing date with the Office; or
(C) for projects carried out with Substantial Governmental Assistance that have received a Temporary Certificate of Eligibility and Reasonable Cost, within one year of the Completion of Construction. If the application is not completed in accordance with subparagraphs (A)-(C) of this paragraph five, it shall be deemed withdrawn at the end of the tax quarter in which the application completion deadline set forth above falls, and no tax benefits shall be authorized for the Conversion, Alterations or Improvements made thereunder. The applicant is referred to 28 RCNY § 5-05 for detailed filing requirements. Applicants must notify the Office of any change of address and/or change of ownership of the property, and any change in the designated filing agent.
(6) Notwithstanding the provisions contained in paragraph five of this subdivision, if the applicant is a Limited Profit Housing Company that owns and operates a planned unit development consisting of at least fifteen thousand (15,000) dwelling units, an application for a Certificate of Eligibility and Reasonable Cost must contain all documentation required by 28 RCNY § 5-05 and be completed and filed with the Office within twenty-four months of the initial filing date with the Office. If such application is not so completed and filed with the Office within twenty-four months of the initial filing date, the application shall be deemed withdrawn at the end of the tax quarter in which the twenty-fourth (24th) month falls, and no tax benefits shall be authorized for the Conversion, Alterations or Improvements made thereunder.
(1) In order to be eligible for tax benefits a building must be structurally sound and must comply with applicable laws including, but not limited to, the Building Code, the Multiple Dwelling Law, the Housing Maintenance Code and the Zoning Resolution.
(2) The following subparagraphs set forth the minimum number of bedrooms required by the Act.
(i) Buildings converted to Class A multiple dwellings, buildings where the configuration has been altered to increase the number of units, and existing dwellings which have been substantially rehabilitated must contain bedrooms in a number equal to seventy-five (75%) percent of the dwelling units contained therein in order to be eligible to receive tax benefits.
(ii) The bedroom count requirement set forth in subparagraph (i) above is not applicable to non-residential buildings or structures converted to Class A multiple dwellings when the resulting dwelling units therein contained an average floor area of one thousand square feet or more.
(iii) A substantial rehabilitation of an existing dwelling shall be exempt from the provisions of this paragraph (2) in the event that (A) the number of dwelling units in such existing dwelling is not thereby increased and (B) the number of bedrooms in such existing dwelling is not thereby reduced.
(iv) For purposes of the bedroom count requirement set forth in subparagraphs (i) and (ii) above, dwelling units which contain a combined living/dining/kitchen space in excess of three hundred and twenty-five square feet may be deemed to include both a kitchen and living room, so that any additional rooms may be considered bedrooms, under subparagraphs (i) and (ii) above.
(3) No building shall be eligible to receive benefits pursuant to the Act unless all of the dwelling units contained therein are Class A dwelling units as defined in § 4 of the Multiple Dwelling Law, and have complete sanitary facilities and a complete kitchen or kitchenette for the exclusive use of the person or family residing in such unit, provided, however, if a building contains both Class A and Class B units, benefits may be pro-rated as set forth in 28 RCNY § 5-03(f)(4). Class B units may be eligible to apply to the Office for tax benefits pursuant to § 11-244 of the Administrative Code.
(1) Rent regulation generally mandatory. In order to be eligible to receive tax benefits under the Act and for at least so long as a building is receiving the benefits of the Act, except for dwelling units which are exempt from such requirement pursuant to paragraph (2) below, all dwelling units in buildings or structures converted, altered or improved shall be subject to rent regulation pursuant to:
(i) the City Rent and Rehabilitation Law (§§ 26-401 et seq. of the Administrative Code); or
(ii) the Rent Stabilization Law of 1969 (§§ 26-501 et seq. of the Administrative Code); or
(iii) the Private Housing Finance Law; or
(iv) any federal law providing for rent supervision or regulation by HUD or any other federal agency; or
(v) the Emergency Tenant Protection Act of 1974.
(2) Exemption from rent regulation.
(i) Notwithstanding paragraph (1) above, dwelling units in multiple dwellings which are owned as cooperatives or condominiums and which are not regulated pursuant to any of such laws shall not be required to be subject to rent regulation.
(ii) Newly created dwelling units in a building for which a prospectus for condominium or cooperative formation has been submitted to the Attorney General at the time of application for benefits to the Office shall not be required to registered with DHCR, unless a plan of cooperative or condominium ownership has not been declared effective within fifteen (15) months of the date of the acceptance for filing of the plan of cooperative or condominium ownership with the Attorney General.
(3) Deregulation of units.
(i) With respect to a dwelling unit in any building receiving benefits under the Act,
(A) such unit shall remain subject to rent regulation until the occurrence of the first vacancy after tax benefits are no longer being received for the building at which time the unit shall be deregulated, unless the unit is otherwise subject to rent regulation; or
(B) if each lease and renewal thereof for such unit for the tenant in residence at the time of the expiration of the tax benefits has included a notice in at least twelve point type informing such tenant that the unit shall become subject to deregulation upon the expiration of the tax benefits and stating the approximate date on which tax benefits are to expire, such dwelling unit shall be deregulated after tax benefits are no longer being received for the building, unless the unit is otherwise subject to rent regulation.
(ii) As provided in 28 RCNY § 39-03, rent regulation shall not be terminated by the waiver or revocation of tax benefits.
(iii) Rent regulation of dwelling units shall not be exempted or terminated other than as set forth in this subdivision (f) as long as benefits are in force.
(4) Permanent residential use. All dwelling units must be leased for permanent residential purposes for a term of not less than one year so long as tax benefits are in effect. Permanent residential use shall not include use as a hotel, dormitory, employee residence or facility, fraternity or sorority house, resort housing or any similar type of non-permanent housing. For purposes of this chapter, a “hotel” shall mean (i) any Class B multiple dwelling, as such term is defined in the Multiple Dwelling Law, (ii) any structure or part thereof containing living or sleeping accommodations which is used or intended to be used for transient occupancy, (iii) any apartment hotel or transient hotel as defined in the Zoning Resolution, or (iv) any structure or part thereof which is used to provide short term rentals or owned or leased by an entity engaged in the business of providing short term rentals. For purposes of this definition, a lease, sublease, license or any other form of rental agreement for a period of less than six months shall be deemed to be a short term rental. Notwithstanding the foregoing, (i) a structure or part thereof owned or leased by a not-for-profit corporation for the purpose of providing governmentally funded emergency housing shall not be considered a hotel for purposes of this chapter, and (ii) benefits may be pro-rated by deducting out work attributable to Class B units in a building containing both Class A and Class B units, provided that all units in a building are registered with DHCR as rent stabilized or rent controlled units, and are utilized for permanent residential use.
(5) Escalation clauses in leases. Except for the notice referred to in subparagraph (i)(B) above, no lease for dwelling units which are registered with DHCR shall contain escalation clauses for real estate taxes or any other provisions for increasing the rent set forth in the lease, other than permitting an increase in rent pursuant to an order of DHCR or the Rent Guidelines Board.
(6) Partial waiver of rent adjustments attributable to major capital improvements.
(i) As a requirement for claiming or receiving any tax abatement attributable to a major capital improvement, the owner of the property shall file with the Office, on the date any application for benefits is made, a declaration stating that in consideration of any tax abatement benefits which may be received pursuant to such application for alterations or improvements constituting a major capital improvement, such owner agrees to waive the collection of a portion of the total annual amount of any rent adjustment attributable to such major capital improvement which may be granted by DHCR pursuant to the rent stabilization code equal to one-half of the total annual amount of the tax abatement benefits which the property receives pursuant to such application with respect to such alterations or improvements. For example, an owner receiving a total rent adjustment over eighty-four months equal to $100,000 for a major capital improvement along with tax abatement of $100,000 for the same improvement would waive collection of $50,000 during such period. Such waiver shall commence on the date of the first collection of such rent adjustment, provided that, in the event that such tax abatement benefits were received prior to such first collection, the amount waived shall be increased to account for such tax abatement benefits so received. The entire amount shall be applied against the first annual rent adjustment, including any retroactive rent adjustments which may be granted by the applicable DHCR order, unless the amount exceeds such adjustments, in which event the excess shall be carried forward. The calculation of the amount attributable to the waiver shall be against the total rent adjustment for the eighty-four month period prior to the application of any annual percentage limitation applied by DHCR to defer collection of the total rent adjustment. In calculating rental adjustments pursuant to Rent Guidelines Board orders the amount of the waived rent shall not be included in the base rent. Following the expiration of a tax abatement for alterations or improvements constituting a major capital improvement for which a rent adjustment has been granted by DHCR, the owner may collect the full amount of annual rent permitted pursuant to such rent adjustment. A copy of such declaration shall be filed simultaneously with DHCR. Such declaration shall be binding upon such owner, and his or her successors and assigns.
(ii) The provisions of subparagraph (i) shall not apply to substantial rehabilitation of buildings vacant when alterations or improvements are commenced or to buildings rehabilitated with substantial governmental assistance.
(1) Buildings owned as Cooperatives or Condominiums are eligible for tax exemption pursuant to the Act, provided that the work is eligible pursuant to 28 RCNY § 5-03(a).
(2) Eligibility for tax abatement is limited to: (i) Alterations or Improvements completed prior to or within thirty-six months following the date (a) of the first closing of a Condominium unit to a bona fide purchaser or (b) on which the first shares allocable to a Cooperative unit are conveyed to a bona fide purchaser, or
(ii) Any Cooperative or Condominium in which dwelling units have been newly created by the Substantial Rehabilitation of a vacant Building or the Conversion of a non-residential Building if such Conversion is completed prior to December 31, 2011, or
(iii) [Reserved.]
(iv) Alterations or Improvements in any Cooperative or Condominium for work completed prior to December 31, 2011 which meets the following requirements:
(A) the Actual Assessed Value of such Cooperative or Condominium shall not exceed an average of forty thousand dollars ($40,000) per dwelling unit at the time of the Commencement of Construction, and
(B) during the three years immediately preceding the Commencement of Construction, the average per room sale price of the dwelling units or the stock allocated to such dwelling units shall have been no greater than thirty-five percent (35%) of the maximum mortgage amount for a single family home eligible for purchase by Fannie Mae, provided that if an amount less than ten percent (10%) of the dwelling units or an amount of stock less than the amount allocable to ten percent (10%) of such dwelling units has not been transferred during such preceding three year period, then eligibility for benefits shall be conditioned upon the Cooperative or Condominium having an Actual Assessed Value per dwelling unit of no more than forty thousand dollars ($40,000) at the time of the Commencement of Construction.
(C) [Reserved.]
(D) The maximum amount of tax abatement which may be applied against taxes due in any tax year by any cooperative or condominium claiming benefits under this 28 RCNY § 5-03(g)(2)(iv) shall be limited to two thousand five hundred dollars ($2,500) per dwelling unit.
(E) Notwithstanding anything to the contrary contained in this subparagraph (iv), the availability of any benefits pursuant to the Act to any multiple dwelling, Building or structure owned and operated by a Limited Profit Housing Company or a Redevelopment Company shall not be conditioned upon the Actual Assessed Value of such multiple dwelling, Building or structure, including land, as calculated as an average dollar amount per dwelling unit, at the time of Commencement of Construction, provided, that such Limited Profit Housing Company or Redevelopment Company (1) is organized and operating as a Mutual Company or a Mutual Redevelopment Company, respectively, (2) continues to be organized and operated as a Mutual Company or a Mutual Redevelopment Company, respectively, and to own and operate the multiple dwelling, Building or structure receiving such benefits, and (3) has entered into a binding and irrevocable agreement with the commissioner of housing of the state of New York, the Supervising Agency, the New York city housing development corporation, or the New York state housing finance agency prohibiting, respectively, either (A) the dissolution or reconstitution of such Limited Profit Housing Company pursuant to section thirty-five of the Private Housing Finance Law for not less than fifteen years from the date of commencement of such benefits, or (B) the dissolution or reconstitution of such Redevelopment Company pursuant to section one hundred twenty-three of the Private Housing Finance Law until the earlier to occur of fifteen years from the date of commencement of such benefits, or the expiration of any tax exemption granted to such Redevelopment Company pursuant to section one hundred twenty-five of the Private Housing Finance Law.
(v) For purposes of determining the number of rooms in applying the limitations contained in 28 RCNY § 5-03(g)(2)(iv), the number of zoning rooms shall be used unless there is no filing with the Department of Buildings indicating the number of zoning rooms, in which case the number shall be:
(A) the number of rooms as evidenced in the Offering Plan, or
(B) at the discretion of the Office, the number of rooms as certified by a licensed architect.
(vi) Where the Building is occupied in part for residential purposes and in part for non-residential purposes, the Actual Assessed Value of the property shall be allocated by the Office between the residential and the non-residential portions based on pro rata Floor Area, unless the non-residential portion is on a separately assessed tax lot, in which case only the amount of Actual Assessed Value allocated to the residential portion shall be considered in computing the Actual Assessed Value per dwelling unit for purposes of 28 RCNY § 5-03(g)(2)(iv).
(1) Special requirements for moderate rehabilitation.
(i) In order to be eligible for tax benefits pursuant to 28 RCNY § 5-03(a)(6), an applicant must:
(A) Not more than one hundred eighty days nor less than thirty days prior to the commencement of construction of rehabilitation, complete form MR-1 (notice to tenants) and send it by registered or certified mail, return receipt requested, to all tenants residing in the building to be rehabilitated and post a copy conspicuously in the building lobby; and
(B) Complete form MR-2 (affidavit that MR-1 was mailed) and file it with the Office not less than thirty days prior to the start of rehabilitation.
(ii) If more than one hundred eighty days elapse between the date Form MR-1 is mailed to any tenant and the date rehabilitation actually commences, new Forms MR-1 and MR-2 must be completed and mailed and posted and filed as required by subparagraphs (i) and (ii) of this paragraph (1) provided that, in the case of a loan program supervised by HPD, notice to HPD shall be unnecessary, and further provided that HPD may itself provide the required notice to tenants prior to commencement of construction in lieu of the MR-1 written notice and MR-2 affidavit.
(iii) In the discretion of the Office, in lieu of the requirements established by subparagraphs (i) and (ii) of this paragraph (1), the applicant may establish by proof satisfactory to the Office that it has provided notice to HPD and to the tenants residing in the building to be rehabilitated of (A) the proposed work prior to commencement of such work, (B) the identity of the owner’s representative, and (C) the tenants’ rights under applicable law with respect to such work.
(2) Special non-harassment provisions. In order to be eligible for any tax exemption pursuant to the Act, irrespective of the cost of the conversion, alteration or improvement, or to be eligible for tax abatement when the CRC per dwelling unit exceeds seven thousand five hundred dollars ($7,500) (including the cost of any conversion, alteration or improvement for which an abatement was approved within four years prior to commencement of construction of the contemplated project), the owner of the property shall file with the Office, not less than thirty days before the commencement of construction of the conversion, alteration or improvement (the “cut-off date”), an affidavit, or, at the time of application, a late filing affidavit or, where any information referred to in 28 RCNY § 5-03(h)(2)(i) below changes prior to applying for or claiming any benefit under this subdivision (h), an amended affidavit, setting forth the following information:
(i) every owner or record and owner of a substantial interest in the property or entity owning the property or sponsoring the conversion, alteration or improvement;
(ii) a statement that none of such persons had, within the five years prior to the cut-off date, been found to have harassed or unlawfully evicted tenants by judgment or determination of a court or agency (including a non-governmental agency having appropriate legal jurisdiction) under the penal law, any state or local law regulating rents or any state or local law relating to harassment of tenants or unlawful eviction; and
(iii) any change in the information required to be set forth.
(3) No conversion, alteration or improvement subject to paragraph (2) of this subdivision (h) shall be eligible for tax exemption or tax abatement under the Act where:
(i) any affidavit required under paragraph (2) has not been filed; or
(ii) any such affidavit contains a willful misrepresentation or omission of any material fact; or
(iii) any person referred to in 28 RCNY § 5-03(h)(2)(i) has been found to have harassed or unlawfully evicted tenants until and unless the finding is reversed on appeal, provided that any such finding after the cut-off date shall not apply to or affect any tax abatement or exemption for the conversion, alteration or improvement covered by the affidavit.
§ 5-04 Ineligible Projects, Items of Work.
(a) Ineligible projects. The tax benefits of the Act are not available to:
(1) Any tax lot which is receiving tax exemption or tax abatement under any other provision of state or local law for rehabilitation or new construction, including but not limited to § 420-c, § 421-a, § 421-b, § 421-g, and § 488-a of the Real Property Tax Law, but not including the provisions of the Private Housing Finance Law as of the date that the Certificate of Eligibility is issued.
(2) Any building for which real estate taxes, water or sewer charges, payments in lieu of taxes, emergency repair or relocation liens are due and owing or not satisfied of record as of the last day of the tax quarter preceding the submission date of the Certificate of Eligibility to the Department of Finance, provided that a property rehabilitated by a loan pursuant to Article 8 or Article 15 of the Private Housing Finance Law shall not be ineligible pursuant to this section if there are no real estate taxes or water and sewer charges due and owing as of the last day of a tax quarter preceding commencement of construction of such rehabilitation. The benefits of tax exemption and tax abatement shall not be denied to any property pursuant to this section on account of unpaid real estate taxes, water or sewer charges provided the applicant or his predecessor in title has entered into an installment agreement with the City pursuant to §§ 11-401 et seq. of the Administrative Code and all payments required by said installment agreement have been paid when due.
(3) Any multiple dwelling which results from the conversion of a private dwelling except as provided in 28 RCNY § 5-03(a)(11).
(4) The conversion, alteration or improvement, commenced on or after July 1, 1982, of any Class B multiple dwelling or Class A multiple dwelling used in whole or in part for single room occupancy regardless of the status or use of the building after the conversion, alteration or improvement, unless such conversion, alteration or improvement is carried out with substantial governmental assistance.
(5) Any property for which the improvement is assessed at one thousand dollars ($1,000) or less at the commencement of construction of alterations, improvements or conversion, provided that such assessed valuation test shall not apply if the alterations, improvements or conversion is carried out with substantial governmental assistance.
(6) Any building or structure that results from new construction as distinguished from rehabilitation, alterations, improvements or conversion, as evidenced by issuance of a building permit for new construction. In order for a building to be characterized as rehabilitated, altered, improved or converted, one of the following conditions must be met before, during and after construction:
(i) At least seventy-five percent (75%) of the total area of the original perimeter walls, but in any event at least fifty percent (50%) of the total area of the original non-party perimeter walls, must remain in place as perimeter walls in the building for which benefits are claimed; or
(ii) At least eighty percent (80%) of the original structural floor area of the building must remain in place as structural floor in the building for which benefits are claimed.
(7) The conversion of any building, or portion thereof.
(i) which is located within any district in the County of New York where a floor area ratio, as that term is defined in the Zoning Resolution, of fifteen or greater is permitted by said resolution, or
(ii) located in the City where residential conversion as-of-right is not permitted by said resolution, unless construction actually commenced in the County of New York prior to January 1, 1982, or in the Counties of Kings, Queens, Richmond or the Bronx prior to October 1, 1983, pursuant to an alteration permit, or unless the building is eligible for the benefits of the Act pursuant to 28 RCNY § 5-03(a)(2).
(8) Any conversion commenced on or after June 28, 1988 of any property classified under the Zoning Resolution as a non-profit institution with sleeping accommodations, unless such conversion is carried out with substantial governmental assistance.
(1) Alterations or improvements done in connection with the refinancing of a housing project pursuant to § 223(f) of the National Housing Act, as amended.
(2) Any portion of a building that results from new construction as distinguished from alterations or improvements or which represents an increase in the gross cubic content of a building from the gross cubic content in existence immediately prior to commencement of construction.
(3) Any portion of a building occupied by stores, professional offices, community facilities or otherwise used for commercial or non-residential purposes pursuant to the classifications set forth in the Zoning Resolution.
(4) Any item of work if a building is receiving tax abatement for the same or a similar item of work at the time of application for the benefits of the Act, provided, however, that if an item or a system which was previously repaired is replaced in its entirety while the building is still receiving the benefits of the Act for such repair, tax benefits for the replacement shall be granted only to the extent that the certified reasonable cost of the replacement exceeds the amount of the previously granted certified reasonable cost attributable to the repair.
(5) An existing dwelling is not eligible to receive tax abatement for any item of work designated as an ordinary repair if the existing dwelling was receiving tax abatement for ordinary repairs pursuant to the Act as of the December thirty-first of the calendar year preceding the date of the application to the Office, unless the ordinary repair independently qualified under 28 RCNY § 5-03(c) as eligible for tax benefits. Tax abatement may not be received for repairs to any items for which benefits of tax abatement are already being received.
§ 5-05 Application Procedure: Documentation.
(a) Application forms and filing. Prescribed forms and applications are available from the Department of Housing Preservation and Development, Office of Tax Incentive Programs, 100 Gold Street, 1st Floor, New York, New York 10038. All applications must be submitted to the Office on forms approved by the Office. Only applications complete in all detail will be considered for certification of eligibility and reasonable cost. All forms must be filled out fully and legibly by the applicant and shall be typewritten or inscribed in permanent ink. Applications and supporting documentation may only be submitted to the Office for review and approval after the completion of construction of work.
(1) Original and four copies of the application form; and
(2) one copy of the following:
(i) a report by an independent certified public accountant on the cost of the Conversion, Alterations or Improvements, in a form prescribed by the Office and in accordance with standards approved by the Office and based upon the books and records of the owner provided that the original records are retained as set forth in 28 RCNY § 5-07(e)(3) and 28 RCNY § 39-06(a) and are available for audit purposes; or
(ii) A Disposition of Funds Statement or certification by the Commissioner of the cost of the work based upon other program records where the Conversion, Alterations or Improvements are undertaken aided by a loan made pursuant to Article 8, 8-a, 11, 12, 15 or 22 of the Private Housing Finance Law or § 312 of the United States Housing Act of 1964 (42 U.S.C. § 1452b), or the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. §§ 12701 et seq.) or § 696-a or § 99(h) of the General Municipal Law, or any other City-supervised housing program, or, in the discretion of the Office, other governmentally-supervised housing program; or
(iii) In the discretion of the Office, paid bills, cancelled checks, installment agreements, and the work contract and any change orders, indicating work, location of Building, and quantity in appropriate unit of measurement all in a form corresponding to the individual items on the Itemized Cost Breakdown Schedule so that the claimed costs can be audited by HPD against the specific items and allowances contained in such schedules; or
(iv) In the case of applications for Buildings under 28 RCNY § 5-03(a)(9), a designated special application form may be submitted including the general contract (if applicable), trade payment breakdown schedule and an HPD inspection report or an HPD-approved construction monitor’s certificate of completion. The Office, upon receipt of appropriate documentation, may determine that each such project has incurred eligible costs of at least twenty thousand dollars ($20,000) in CRC per unit and grant a Certificate of Eligibility and Reasonable Cost for one hundred and fifty percent (150%) of such amount, i.e., thirty thousand dollars ($30,000) in CRC per unit; and
(3) Plans and amendments, if any, approved by the Department of Buildings; and
(4) Proof of Commencement of Construction:
(i) Copy of a Building Permit; or
(ii) The Office shall require that the date of Commencement of Construction be confirmed by an affidavit of a registered architect or licensed professional engineer, together with, at the discretion of the Office, such other information as the Office may require to substantiate such date, including, but not limited to, an affidavit from the owner, a copy of the work contract, invoices, cancelled checks or such other proof of payment as the Office shall require, and a contractor’s affidavit. If an application contains a series of Major Capital Improvements, the Commencement of Construction date is that of the first Major Capital Improvement for which benefits are claimed; and
(5) Proof of Completion of Construction:
(i) A Permanent Certificate of Occupancy; or
(ii) A Temporary Certificate of Occupancy for all of the dwelling units therein, and an affidavit from a registered architect or licensed professional engineer and the owner that the only work remaining to secure a Permanent Certificate of Occupancy is work to be performed or completed in space to be used exclusively for non-residential purposes; or
(iii) A sign-off by the Department of Buildings as evidenced by the J-3, a computer printout or such other official documentation as may be required by the Department of Buildings and is acceptable to the Office if issued in connection with an eligible Conversion, Alteration or Improvement; or
(iv) If none of the above are required by law, Completion of Construction must be confirmed by the submission of an affidavit of a registered architect or a licensed professional engineer, along with such other information as may be required by the Office, including, but not limited to, an affidavit from the owner, a copy of the work contract, invoices, cancelled checks or such other proof of payment as the Office shall require, Disposition of Funds Statements, certification by the Commissioner based on program records or inspection, and a contractor’s affidavit which confirm such Completion of Construction date to the satisfaction of the Office.
(6) Proof of Compliance with the Housing Maintenance Code. For applications for which a Certificate of Occupancy has not been issued within one year of the date of submission of such application for all units for which benefits are claimed: If a search by the Department of Housing Preservation and Development dated no earlier than ninety days prior to the date of submission of such application indicates that there are any violations of record which are classified as hazardous or immediately hazardous, the applicant must either clear the violations of record or submit affidavits:
(i) from a registered architect, or a licensed professional engineer, certifying that the architect or engineer has inspected the premises and that work necessary to remove any hazardous or immediately hazardous violations has been completed. If a violation classified as hazardous or immediately hazardous was caused by a tenant and the tenant refuses to grant access to the applicant to correct the tenant-related violation, such violation will not preclude eligibility provided the applicant can establish these facts with clear and convincing evidence; and
(ii) from the owner, certifying that the architect or engineer has inspected the premises and that work necessary to remove any hazardous or immediately hazardous violations has been completed. If a violation classified as hazardous or immediately hazardous was caused by a tenant and the tenant refuses to grant access to the applicant to correct the tenant-related violation, such violation will not preclude eligibility provided the applicant can establish these facts with clear and convincing evidence.
(7) Applications for benefits pursuant to 28 RCNY §§ 5-03(a)(2), (3) or (4) must provide proof of compliance with the relocation requirements of § 11-243(z) of the Act.
(8) Department of Buildings Certification for Tax Exemption and Tax Abatement (Form J-3) or, if no permits from the Department of Buildings are required, at the option of the Office, alternative documentation to prove absence of Building Code violations.
(9) Proof that the building has been registered with HPD in accordance with the provisions of article two of subchapter four of the Housing Maintenance Code.
(10) (i) For applications received on or after March 19, 2006, an affidavit from the owner certifying that whenever any household appliance in any dwelling unit, or any household appliance that provides heat or hot water for any dwelling unit in the multiple dwelling, is installed or replaced with a new household appliance on or after March 19, 2006, such new appliance shall be certified as Energy Star. If applicable, such affidavit may instead certify (A) that an appropriately-sized Energy Star certified household appliance is not manufactured, such that movement of walls or fixtures would be necessary to create sufficient space for such appliance, and/or (B) that an Energy Star certified boiler or furnace of sufficient capacity is not manufactured.
(ii) For purposes of this paragraph (10), (A) “household appliance” shall mean any refrigerator, room air conditioner, dishwasher or clothes washer, within a dwelling unit in the multiple dwelling that is provided by the owner, and any boiler or furnace that provides heat or hot water for any dwelling unit in the multiple dwelling, and (B) “Energy Star” shall mean a designation from the United States Environmental Protection Agency or Department of Energy indicating that a product meets the energy efficiency standards set forth by the agency for compliance with the Energy Star program.
(1) An opinion of counsel which states that the building is a legal cooperative or condominium and which has a prospectus accepted for filing by the Attorney General, or was formed prior to the date of prospectus was required by law, or is exempt for other reasons from the filing requirements; and
(2) If benefits are claimed under 28 RCNY § 5-03(g)(2)(i), evidence of the first sale of a condominium unit or shares of stock allocable to a cooperative unit in a form required by the Office; and
(3) A copy of the prospectus or offering plan which has been accepted for filing by the Attorney General, and all subsequent amendments which become effective prior to the time the Office issues a Certificate of Eligibility and Reasonable Cost for any cooperative or condominium eligible for tax abatement pursuant to 28 RCNY § 5-03(g).
(4) Provided, however, if benefits are being claimed under 28 RCNY § 5-03(g)(2)(iii) or (g)(2)(iv), evidence shall be submitted with respect to assessed valuation per unit and the average per room sale price during the three years preceding the application in a form prescribed by the Office.
(1) Applicants must submit a non-refundable application fee with each application in the amount of five hundred ($500) dollars. Upon notification of a determination of reasonable cost in excess of ten thousand dollars ($10,000) and prior to issuance of the Certificate of Reasonable Cost, the applicant must pay an additional fee in an amount equal to one percent (1%) of the reasonable cost in excess of ten thousand dollars ($10,000). If applicable, the penalty prescribed by 28 RCNY § 5-05(b) must also be paid at this time.
(2) If a Code Violation Search report is not submitted with an application submitted on or before December 30, 2004 in accordance with 28 RCNY § 5-05(c)(6)(a), an additional non-refundable filing fee equal to the fee charged by the HPD Division of Code Enforcement, currently thirty dollars ($30), must be submitted to cover the cost of processing such search. This fee must be submitted simultaneously with the five hundred dollar ($500) application fee.
(3) Payment of all fees must be made by certified or cashier’s check or a check from an attorney or owner/agent payable to the “NYC Department of Finance NYCJ51 Fee”. In the event a check is returned unpaid, the applicant shall be assessed a fifty dollar ($50) processing fee and all further payments with respect to the application shall be made by certified or cashier’s check.
(f-1) BLDS Inspections. Except as otherwise provided in Section 489 of the Real Property Tax Law, Section 11-243 of the Administrative Code or these Rules, the filing of an application for a Certificate of Eligibility and Reasonable Cost is deemed a representation by such applicant that, with respect to all items of work claimed in such application, there has been Completion of Construction. Unless the aggregate cost of the items of work claimed in such application is less than ten thousand dollars ($10,000) or a designated special application form has been submitted in accordance with subparagraph (iv) of paragraph two of subdivision (c) of this section, all such items of work are subject to a BLDS Inspection prior to HPD’s issuance of a Certificate of Eligibility and Reasonable Cost. Any Certificate of Eligibility and Reasonable Cost issued with respect to such application shall not include items of work claimed therein where, as determined by such BLDS Inspection, there has not been Completion of Construction.
(1) The Office shall review each application to determine if it is eligible for tax benefits in accordance with the provisions of these rules and the Act. The Office will inform an applicant if the file is incomplete; however, it is the applicant’s responsibility to complete the application within twenty-four months of the initial filing date as provided in 28 RCNY § 5-03(d)(5). Provided, however, that for projects carried out with substantial governmental assistance and which have received a Temporary Certificate of Eligibility, the applicant must complete the application within one year of the completion of construction.
(2) The certified reasonable cost for all eligible items of work shall be calculated as follows:
(i) The certified reasonable cost for all eligible items of work shall be the lesser of the applicant’s actual cost, or the allowance set forth in the Itemized Cost Breakdown Schedule.
(ii) The certified reasonable cost for all eligible items of work shall be reduced where such items are allocable in whole or part to, or service, ineligible portions of the building, if any, in the same ratio as the ineligible space bears to the aggregate floor area of the building.
(iii) For buildings eligible for enriched abatement as provided in 28 RCNY § 5-06(c)(1) the total certified reasonable cost shall not exceed the lesser of the owner’s total actual expenditure or one hundred fifty percent (150%) of the total of the Itemized Cost Breakdown Schedule amounts set forth in 28 RCNY § 5-08.
(iv) For buildings subject to the dollar limit set forth in 28 RCNY § 5-06(d), the aggregate certified reasonable cost may not exceed the maximum eligible CRC set forth therein.
(v) [Repealed.]
(3) The Office shall issue a Certificate of Eligibility and Reasonable Cost for all approved applications. Failure to produce satisfactory supporting documentation of the cost of an alteration, improvement or conversion, or any part thereof, or any of the items specified in this chapter may result in the denial of a Certificate of Eligibility and Reasonable Cost.
(1) For cooperatives and condominiums with an average transitional assessed valuation per dwelling unit of less than forty thousand dollars ($40,000), in order to receive tax abatement beginning on the first day of any tax quarter, the applicant must file a Certificate of Eligibility and Reasonable Cost with the appropriate borough Office of the Real Property Assessment Bureau of the Department of Finance during the third month preceding the start of such tax quarter; i.e.: January 1 through January 31 for the tax quarter beginning April 1, April 1 through April 25 for the tax quarter beginning July 1, July 1 through July 31 for the tax quarter beginning October 1, October 1 through October 31 for the tax quarter beginning January 1.
(2) For cooperatives and condominiums with an average transitional assessed valuation per dwelling unit of forty thousand dollars ($40,000) or more, and for all other buildings receiving benefits, in order to receive tax abatement beginning on the first day of January or July of any year, the applicant must file a Certificate of Eligibility and Reasonable Cost with the appropriate borough office of the Real Property Assessment Bureau of the Department of Finance during the third or sixth month preceding the start of such tax period; i.e.: January 1 through January 31 or April 1 through April 25 for the tax period beginning July 1, or July 1 through July 31 or October 1 through October 31 for the tax period beginning January 1.
(3) The following documents must be filed with the Certificate of Eligibility and Reasonable Cost during the time periods indicated above:
(i) Department of Buildings Certification for Tax Exemption and Tax Abatement (Form J-3) or, if no permits from the Department of Buildings are required, at the option of the Office, alternative documentation to prove absence of Building Code violations;
(ii) Certified Tax Search or copy of Installment Agreement;
(iii) Department of Finance Application for Tax Exemption and Tax Abatement.
§ 5-06 Tax Exemption/Tax Abatement Commencement: Duration and Amount.
(a) Tax Exemption.
(1) Except as provided in § 489(9) of the Real Property Tax Law, for a period of fourteen years, or thirty-four years if the eligible project was a moderate rehabilitation or a project eligible under 28 RCNY § 5-03(a)(9), any increase in assessed valuation of properties which receive a Certificate of Eligibility and Reasonable Cost shall be exempt from taxation on any increase in assessed valuation resulting from the certified reasonable cost of the alteration, improvement or conversion performed pursuant to the Act. If the conversion, alteration or improvement results in an increase in the gross cubic content of the building, the portion of the building which represents the additional cubic content shall not be exempt from any increase in assessed valuation. In the case of fourteen year exemptions, any increase in assessed value which results from an alteration, improvement or conversion shall be fully exempt for ten years and such exemption shall be reduced by twenty per cent (20%) in each succeeding year. In the case of thirty-four year exemptions, any increase in assessed value which results from an alteration, improvement or conversion shall be fully exempt for thirty years and such exemption shall be reduced by twenty per cent (20%) in each succeeding year.
(2) The land improved by a building with a Certificate of Eligibility and Reasonable Cost shall not be exempt from an increase in assessed valuation. An increase in assessed valuation resulting from an alteration, improvement or conversion other than one made pursuant to the Act shall not be exempt.
(3) Tax exemption shall commence on the first day of July following the commencement of tax abatement with the following exceptions:
(i) If tax abatement commences on July first, tax exemption shall start at the same time;
(ii) Tax exemption may commence on the first day of any tax quarter designated by the Office following the commencement of construction if the property is:
(A) Aided by a loan made pursuant to Article 8, 8-a or 15 of the Private Housing Finance Law; or
(B) Aided by a loan made pursuant to § 312 of the United States Housing Act of 1964 (42 U.S.C. § 1452b); or
(C) Started after July 1, 1983 by a housing development fund company organized under Article 11 of the Private Housing Finance Law and carried out either
(a) with substantial governmental assistance or
(b) in a property transferred from the City where alterations and improvements are completed within seven years of the date of such transfer; or
(D) Started after July 1, 1988 by or on behalf of a company not qualified under any of the above provisions, which is a not-for-profit corporation qualified pursuant to § 501(c)(3) of the Internal Revenue Code and which has entered into a regulatory agreement with the HPD requiring operation of the property as housing for low and moderate income persons and families; or
(E) Started after July 1, 1992, and aided by a loan or grant under Article 11, 12 or 22 of the Private Housing Finance Law, § 696-a (Article 16) or § 99(h) of the General Municipal Law, or the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. §§ 12701 et seq.).
(iii) A Temporary Certificate of Eligibility may be issued in the discretion of the Office for projects eligible for tax benefits pursuant to 28 RCNY § 5-06(a)(3)(ii) above.
(1) Except for special circumstances enumerated in paragraph (4) of this subdivision (b), property in the Borough of Manhattan south of or adjacent to the south side of one hundred tenth street with an average assessed valuation per dwelling unit of thirty-eight thousand dollars ($38,000) or more after completion of construction, calculated by dividing the amount of the total assessed valuation of the residential portion of the property as determined under the Real Property Tax Law by the number of dwelling units in the building after completion of construction of the conversion, alteration or improvement, shall not be eligible for a tax exemption. The amount of assessed valuation that will be exempt from taxation shall be calculated pursuant to the following table:
| Average Assessment per Dwelling Unit After Completion of Construction | Percent of Increased Assessment Exempt |
|---|---|
| $18,000 or less | 100% |
| $18,001 – $22,000 | 75% |
| $22,001 – $26,000 | 50% |
| $26,001 – $30,000 | 25% |
| $30,001 – $37,999 | 0% |
| $38,000 or more | No exemption granted |
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(2) In calculating the amount of assessed valuation that will be exempt from taxation pursuant to the formula in paragraph (1) above, the full amount of total assessed valuation that does not represent increased assessed valuation shall be applied in such formula prior to the inclusion of any amount of increased assessed valuation.
(3) Where the real property is occupied in part for residential purposes and in part for non-residential purposes, unless the non-residential portion is on a separately-assessed tax lot, the assessed valuation of the property shall be allocated by the Office between the residential and non-residential portions based on pro rata square footage. In computing the total assessed valuation per dwelling unit under paragraph (1) above, only the amount of valuation so allocated to the residential portion shall be considered.
(4) Exception to Assessed Valuation Limitation to Allow Additional Affordable Housing Units.
(i) Notwithstanding the provisions in paragraph (1), the Office may reduce or remove the limitations on the exemption from taxation provided in such paragraph with respect to a particular property undergoing alteration or improvement, upon application of the property owner and a determination by the Commissioner that the increased benefit will increase the number of dwelling units that will be affordable to persons of low and moderate income, and the increased benefit is necessary to make economically viable units or to improve the quality of dwelling units that will be affordable to persons of low or moderate income.
(ii) As used in this paragraph (4), the term “persons of low or moderate income” shall mean persons who would qualify for housing subsidies pursuant to section two hundred thirty-five (§ 235) of the National Housing Act, as amended, at one hundred thirty-five percent (135%) of the income limitations provided therein. The term “affordable,” when used in connection with persons of low or moderate income, shall mean that such persons shall not be required to spend more than thirty percent of their adjusted annual income for housing.
(iii) Upon receiving an application under this paragraph (4) in proper form, the Office shall immediately submit it to the community board for the area in which the project is located, which may, within forty-five days of receiving it and after a public hearing, make recommendations to the Office as to the application. The Office shall act on the application within sixty days of receiving it from the property owner in proper form, but not before expiration of the time for the community board to make its recommendations, unless the board has acted sooner.
(iv) The Office will not approve any application under this paragraph (4), unless the owner enters into an agreement with the City which guarantees that at least thirty percent (30%) of the apartments in the building receiving tax benefits shall be rented or sold to persons of low or moderate income at rentals or carrying charges not exceeding thirty percent (30%) of their annual income, and that such apartments will, on vacancy, be re-rented or re-sold to persons of low or moderate income for a period of no less than fifteen (15) years. Such units must be rehabilitated or newly created units resulting from substantial rehabilitation or conversion.
(5) For purposes of this subdivision (b), the assessed valuation shall be the actual assessed valuation not transitional assessed valuation.
(6) Further exceptions to assessed valuation limit. The following conversions, alterations, and improvements are not subject to the limitations set forth in paragraphs (1) and (2) of this subdivision (b).
(i) Alterations or improvements under 28 RCNY § 5-03(a)(6); and
(ii) Conversions of residential units covered by Article 7-C of the Multiple Dwelling Law under 28 RCNY § 5-03(a)(2); and
(iii) Alterations or improvements under paragraphs (5), (7) or (8) of 28 RCNY § 5-03(a) when carried out:
(A) with substantial governmental assistance, or with the aid of grants, loans or subsidies from any not-for-profit philanthropic organization one of whose primary purposes is providing housing affordable to persons of low or moderate income as defined in 28 RCNY § 5-06(b)(4)(ii); or
(B) with mortgage insurance by the New York City Residential Mortgage Insurance Corporation or the State of New York Mortgage Agency; or
(C) within the areas in New York County set forth in 28 RCNY § 5-10; or
(D) pursuant to a program established by the Federal Housing Administration, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or Government National Mortgage Association for the rehabilitation of existing multiple dwellings for persons of low or moderate income, or a program of mortgage insurance for the rehabilitation of existing multiple dwellings pursuant to § 223(f) of the National Housing Act, as amended, or a program of mortgage insurance established by the Federal Housing Administration for the rehabilitation of existing multiple dwellings for persons of low or moderate income; provided that properties receiving benefits under such programs are located in a neighborhood strategy area, as defined by HUD (24 C.F.R. Part 881), or in one of the neighborhood preservation areas listed in 28 RCNY § 5-10.
(7) Assessed valuation limits for projects commenced prior to June 1, 1986. Conversions, alterations and improvements commenced after September 15, 1983 and before June 1, 1986 are subject to the exemption limitations set forth in 28 RCNY § 5-06(b) whether they are located in Manhattan or in any other Borough of the City, unless they qualify under one of the exceptions to the assessed valuation limit set forth in 28 RCNY § 5-06(b)(6), or are located in a designated neighborhood preservation area, as listed in 28 RCNY § 5-06(d)(3)(iii)(C). For purposes of this subdivision (b), the Clinton neighborhood preservation area is exempt from the assessed valuation limits of 28 RCNY § 5-06(b) only for conversions, alterations and improvements commenced prior to June 28, 1988.
(1) Enriched abatement. In the case of
(i) alterations or improvements carried out pursuant to 28 RCNY § 5-03(a)(6) which are carried out with substantial governmental assistance or with the aid of grants, loans or subsidies from any not-for-profit philanthropic organization one of whose primary purposes is providing low or moderate income housing or financed with mortgage insurance by the New York City Residential Mortgage Insurance Corporation or the State of New York Mortgage Agency or pursuant to a program established by the Federal Housing Administration for rehabilitation of existing multiple dwellings in a neighborhood strategy area, as defined by HUD (24 C.F.R. Part 881); or
(ii) any conversion, alteration or improvement of property located in census tracts in which seventy-five percent (75%) or more of the population live in households which earn fifty percent (50%) or less of the median household income of the City, involving substantial governmental assistance; or
(iii) any alteration, improvement or conversion carried out pursuant to 28 RCNY § 5-03(a)(9); the abatement of taxes on such property, including the land shall not exceed the lesser of the total actual cost of the alterations, improvements or conversion or one hundred fifty percent (150%) of the total certified reasonable cost of the alterations or improvements, and the annual abatement of taxes shall not exceed twelve and one-half percent (12.5%) of such certified reasonable cost.
(2) Maximum annual and aggregate abatement.
(i) In all cases not qualifying for the enriched abatement described in 28 RCNY § 5-06(c)(1), the maximum annual and aggregate abatement for each of the eligible projects listed in 28 RCNY § 5-03(a) is as follows:
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| 28 RCNY § 5-03(a)(1) | 8 1/3% of CRC | 90% of CRC | |
|---|---|---|---|
| 28 RCNY § 5-03(a)(1) | 8 1/3% of CRC | 50% of CRC | |
| 28 RCNY § 5-03(a)(2) | 8 1/3% of CRC | 90% of CRC | |
| ** | 28 RCNY § 5-03(a)(2) | 8 1/3% of CRC | 50% of CRC |
| 28 RCNY § 5-03(a)(3) | 8 1/3% of CRC | 50% of CRC | |
| 28 RCNY § 5-03(a)(4) | 8 1/3% of CRC | 90% of CRC | |
| *** | 28 RCNY § 5-03(a)(5) | 8 1/3% of CRC | 90% of CRC |
| 28 RCNY § 5-03(a)(6) | 8 1/3% of CRC | 100% of CRC | |
| 28 RCNY § 5-03(a)(7) | 8 1/3% of CRC | 90% of CRC | |
| 28 RCNY § 5-03(a)(8) | 8 1/3% of CRC | 90% of CRC* | |
| 28 RCNY § 5-03(a)(10) | 8 1/3% of CRC | 90% of CRC | |
| 28 RCNY § 5-03(a)(11) | 8 1/3% of CRC | 90% of CRC | |
| 28 RCNY § 5-03(a)(6) | 12 1/2% of CRC | 150% of CRC | |
| 28 RCNY § 5-03(a)(9) | 12 1/2% of CRC | 150% of CRC |
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* Conversions within the County of New York on any tax lot bordering on or south of 96th Street.
** Conversions within the County of New York.
*** Only work specified on the Itemized Cost Breakdown Schedule is eligible for tax benefits. However, the CRC for such qualifying work shall be equal to the actual cost of the work. Notwithstanding the foregoing, the maximum allowable abatement may not exceed 50% of CRC if done in connection with a non-residential conversion located within the County of New York.
**** Non governmentally-assisted moderate rehabilitation.
* Only eligible for 50% of CRC if done in connection with a non-residential conversion located within the County of New York.
** Pursuant to 28 RCNY § 5-06(c)(1): governmentally-assisted moderate rehabilitation and substantial rehabilitation.
(ii) In cases qualifying for the enriched abatement described above in 28 RCNY § 5-06(c)(1), the maximum aggregate and annual abatement is:
(3) Tax abatement shall commence as follows:
(i) for cooperatives and condominiums with an average transitional assessed valuation per dwelling unit of less than forty thousand ($40,000) dollars, on the first day of the tax quarter following the filing of the Certificate of Eligibility and Reasonable Cost with the Real Property Assessment Bureau of the Department of Finance, except as provided in subparagraphs (ii) and (iii) below:
(ii) for cooperatives and condominiums with an average transitional assessed valuation per dwelling unit of forty thousand ($40,000) dollars or more, and for all other buildings, on the first day of January or July, whichever date next follows the filing of the Certificate of Eligibility and Reasonable Cost with the Real Property Assessment Bureau of the Department of Finance;
(iii) for property aided by a loan made pursuant to the authorities listed below or owned by a type of corporation listed below, on the first day of any tax quarter designated by the Office following the commencement of construction:
(A) Article 8, 8-a, or 15 of the Private Housing Finance Law or § 312 of the United States Housing Act of 1964 (42 U.S.C. § 1452b), or
(B) if commencement of construction occurred after July 1, 1988, by or on behalf of a not-for-profit corporation qualified pursuant to § 501(c)(3) of the Internal Revenue Code and which has entered into a regulatory agreement with HPD requiring operation of the property as housing for low and moderate income persons and families, or
(C) if commencement of construction occurred after July 1, 1992, Article 11, 12 or 22 of the Private Housing Finance Law or § 696-a (Article 16) or § 99(h) of the General Municipal Law or the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. §§ 12701 et seq.).
(4) Taxes may be abated each year by the amount specified in the 28 RCNY § 5-06(c), provided that in no event may taxes be abated for more than twenty years nor may the abatement in any twelve month period exceed the amount of taxes payable in such twelve month period.
(1) Dollar limit. For conversions, alterations or improvements commenced on or after September 15, 1983, except in special circumstances enumerated in paragraphs (2) and (3) of this subdivision (d), the certified reasonable cost of a conversion, alteration or improvement eligible for abatement shall not exceed the amounts specified in the following table:
| Number of Rooms Per Dwelling Units | Maximum Eligible CRC |
|---|---|
| 2 1/2 | $12,600 |
| 3 1/2 | $15,000 |
| 4 1/2 | $17,400 |
| 5 1/2 | $19,800 |
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(2) Enriched dollar limit. An abatement may exceed the limitations set forth in paragraph (1) of this subdivision (d) by a maximum of twenty-five percent (25%) of the applicable limitation if, upon written request of the applicant, the Office determines that:
(i) in the case of a conversion pursuant to paragraphs (1), (2), (3) or (4) of 28 RCNY § 5-03(a), the increased cost is necessary to comply with applicable law; or
(ii) in the case of an alteration or improvement pursuant to 28 RCNY § 5-03(a)(7), the increased cost is necessary to eliminate unhealthy or dangerous conditions or replace inadequate and obsolete sanitary facilities in a satisfactory manner; or
(iii) in the case of an alteration or improvement pursuant to 28 RCNY § 5-03(a)(8), the increased cost is necessary to conserve energy in a satisfactory manner; or
(iv) in the case of an alteration or improvement pursuant to 28 RCNY § 5-03(a)(5), the increased cost, to the extent such cost is not offset by any and all tax credits received as a result of the alteration or improvement, is necessary to comply with any provision of law regulating historic or landmark buildings or structures.
(3) Exceptions to dollar limit. The following conversions, alterations, and improvements are not subject to the limitations set forth in paragraphs (1) and (2) of this subdivision (d), but are subject to the limitations of paragraph (4) of this subdivision (d).
(i) alterations or improvements under 28 RCNY § 5-03(a)(6); and
(ii) conversions of residential units covered by Article 7-C of the Multiple Dwelling Law under 28 RCNY § 5-03(a)(2); and
(iii) alterations or improvements under paragraphs (5), (7) and (8) of 28 RCNY § 5-03(a) when carried out:
(A) with substantial governmental assistance or with the aid of grants, loans or subsidies from any not-for-profit philanthropic organization one of whose primary purposes is providing housing affordable to persons of low or moderate income as defined in 28 RCNY § 5-06(b)(4)(ii); or
(B) with mortgage insurance provided by the New York City Residential Mortgage Insurance Corporation or the State of New York Mortgage Agency; or
(C) within the areas set forth in 28 RCNY § 5-10; or
(D) pursuant to a program established by the Federal Housing Administration, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or Government National Mortgage Association for the rehabilitation of existing multiple dwellings for persons of low or moderate income, or a program of mortgage insurance for the rehabilitation of existing multiple dwellings pursuant to § 223(f) of the National Housing Act as amended, or a program of mortgage insurance established by the Federal Housing Administration for the rehabilitation of existing multiple dwellings for persons of low or moderate income; provided that properties receiving benefits under such programs are located in a neighborhood strategy area, as defined by HUD (24 C.F.R. Part 881), or in one of the neighborhood preservation areas listed in 28 RCNY § 5-10.
(4) (i) Tax abatement for a multiple dwelling shall be available only if:
(A) for alterations and improvements commenced after June 28, 1988 and on or prior to June 15, 1993, the actual assessed valuation of such multiple dwelling, including land, does not exceed an average of thirty thousand dollars ($30,000) per dwelling unit at the time of commencement of construction of the alterations or improvements; or
(B) for alterations and improvements commenced after June 15, 1993, the actual assessed valuation of such multiple dwelling, including land, does not exceed an average of forty thousand dollars ($40,000) per dwelling unit at the time of commencement of construction of the alterations or improvements. Unless the non-residential portion is a separately-assessed parcel, when the building is occupied in part for residential purposes and in part for non-residential purposes, the assessed valuation of the property shall be allocated by the Office between the residential and the non-residential portions based on pro rata square footage, and only the amount of valuation so allocated to the residential portion shall be considered in computing the assessed valuation per dwelling unit.
(ii) The limitations set forth in this paragraph (4) shall not apply to:
(A) multiple dwellings owned as a cooperative or condominium; or
(B) multiple dwellings in which units have been newly created by substantial rehabilitation of vacant buildings or conversions; or
(C) alterations or improvements under 28 RCNY § 5-03(a)(6); or
(D) conversions of residential units covered by Article 7-C of the Multiple Dwelling Law under 28 RCNY § 5-03(a)(2); or
(E) alterations or improvements under paragraphs (5), (7) and (8) of 28 RCNY § 5-03(a) when carried out: (a) with substantial governmental assistance or with the aid of grants, loans or subsidies from any not-for-profit philanthropic organization one of whose primary purposes is providing housing affordable to persons of low or moderate income as defined in 28 RCNY § 5-06(b)(4)(ii); or (b) with mortgage insurance provided by the New York City Residential Mortgage Insurance Corporation or the State of New York Mortgage Agency; or (c) within the areas set forth in 28 RCNY § 5-10; or (d) pursuant to a program established by the Federal Housing Administration, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or Government National Mortgage Association for the rehabilitation of existing multiple dwellings for persons of low or moderate income, or a program of mortgage insurance for the rehabilitation of existing multiple dwellings pursuant to § 223(f) of the National Housing Act as amended, or a program of mortgage insurance established by the Federal Housing Administration for the rehabilitation of existing multiple dwellings for persons of low or moderate income; provided that properties receiving benefits under such programs are located in a neighborhood strategy area, as defined by HUD (24 C.F.R. Part 881), or in one of the neighborhood preservation areas listed in 28 RCNY § 5-10.
(5) Tax abatement benefits shall not be available to any limited-profit housing company established pursuant to article two of the Private Housing Finance Law to reduce taxes beneath the applicable statutory minimum tax, provided however, the benefits of the Act shall apply to alterations and improvements commenced after June 1, 1986 by any such company provided the project is otherwise eligible. Such multiple dwelling shall be eligible for benefits where at least one building-wide major capital improvement as set forth in 28 RCNY § 5-03(a)(6)(i) or a new roof (at least seventy-five percent (75%) of the aggregate roof area is replaced or covered with new roofing) or building-wide submetering of all individual dwelling units is part of the application for benefits. Furthermore, to the extent that such alterations or improvements are financed with grants, loans or subsidies from any federal, state or local agency or instrumentality, such multiple dwelling, building or structure, shall be eligible for benefits only if the limited-profit housing company has entered into a binding and irrevocable agreement with the commissioner of housing of the state of New York, the supervising agency, the New York city housing development corporation, or the New York state housing finance agency prohibiting the dissolution or reconstitution of such limited-profit housing company pursuant to section thirty-five of the Private Housing Finance Law for not less than fifteen years from the commencement of benefits. The abatement of taxes on such property, including the land, shall not be an amount greater than ninety percent (90%) of the certified reasonable cost of such alterations or improvements, nor greater than eight and one-third percent (8 1/3%) of such certified reasonable cost in any twelve month period, nor be effective for more than twenty years. The annual abatement of taxes in any twelve month period shall in no event exceed fifty percent (50%) of the applicable exemption granted pursuant to article two of the Private Housing Finance Law or other applicable laws or fifty percent (50%) of payments required to be made in lieu of taxes in such twelve month period. Notwithstanding the foregoing, the annual abatement of taxes for alterations or improvements commenced prior to June 1, 1986, may not be applied to reduce the amount of taxes payable or the amount of payments required to be made in lieu of taxes in any twelve month period to an amount less than the minimum amount of taxes required to be paid pursuant to § 3 of the Private Housing Finance Law (ten percent (10%) of shelter rent or assessed value at time of acquisition of the property by the housing company, whichever is higher).
(1) The following buildings shall be eligible for limited tax benefits as set forth herein
(i) For any building:
(A) in which conversion, alteration or improvement commences on or after January 1, 1982, and
(B) which is located in the County of New York within an area designated herein as a minimum tax zone, the benefits of the Act shall not be applied to abate or reduce the taxes upon the land portion of such real property, which shall continue to be taxed based upon the assessed valuation of the land and the applicable tax rate at the time such taxes are levied; provided, however, that the foregoing limitation with respect to abatement of taxes shall not apply: (a) to any multiple dwelling which is eligible for benefits based upon moderate rehabilitation pursuant to 28 RCNY § 5-03(a)(6) or (b) to any conversion, alteration or improvement which is carried out with substantial governmental assistance.
(ii) For any building:
(A) in which conversion, alteration or improvement commenced on or after January 1, 1982, and
(B) which is located in the County of New York within an area designated herein as a tax abatement exclusion zone, the benefits of the Act shall not be applied to abate or reduce the taxes upon such real property, which shall continue to be taxed based upon the assessed valuation of the land and the improvements and the applicable tax rate at the time such taxes are levied; provided, however, that the foregoing limitation shall not deprive such real property of any benefits of exemption from taxation of an increase in assessed valuation to which it is entitled pursuant to the Act, and provided further that the foregoing limitation with respect to abatement of taxes shall not apply: (a) to any Alteration or Improvement designated herein as a major capital improvement, provided that the maximum amount of tax abatement which may be applied against taxes due in any tax year by any such multiple dwelling for any such alterations and improvements shall be limited to an amount not in excess of two thousand five hundred dollars ($2,500) per dwelling unit, or (b) to any conversion, alteration or improvement which is carried out with substantial governmental assistance.
(2) The minimum tax zone in the County of New York is as follows: all tax lots now existing or hereafter created within the following designated area or adjacent or contiguous to either side of any street forming the boundary of such designated area, which area is bounded and described as follows: beginning at Central Park West and 86th Street; thence easterly along 86th Street to the East River; thence southerly along the easterly boundary of New York County to 23rd Street; thence westerly along 23rd Street to Third Avenue; thence southerly along Third Avenue to 14th Street; thence westerly along 14th Street to Broadway; thence southerly along Broadway to Houston Street; thence westerly along Houston Street to West Street; thence northerly along West Street to 14th Street; thence easterly along 14th Street to 9th Avenue; thence northerly along 9th Avenue to 57th Street; thence westerly along 57th Street to the Hudson River; thence northerly along the westerly boundary of New York County to 72nd Street; thence easterly along 72nd Street to Central Park West; thence northerly along Central Park West to 86th Street and Central Park West, which is the place of beginning.
(3) The tax abatement exclusion zone in the County of New York is as follows: all tax lots within the following designated area or adjacent or contiguous to either side of any street forming the boundary of such designated area or adjacent or contiguous to either side of any street designated as included in such area, which area is bounded and described as follows: beginning at the intersection of 96th Street and Central Park West; thence easterly to Park Avenue; thence southerly along Park Avenue to the intersection of Park Avenue and 72nd Street; thence easterly along 72nd Street to York Avenue; thence northerly along York Avenue to the Franklin Delano Roosevelt Drive; thence north-westerly along the Franklin Delano Roosevelt Drive to as far as 96th Street; thence easterly to the easterly border of New York County; thence southerly along such border to 34th Street; thence westerly along 34th Street to 8th Avenue; thence northerly, along 8th Avenue and Central Park West as far as 96th Street, which is the place of beginning. Additionally, the following north/south and east/west thoroughfares shall be included in the tax abatement exclusion zone; 96th Street between Central Park West and the East River; 86th Street between Central Park West and the East River; 79th Street between West End Avenue and the East River; 72nd Street between West End Avenue and the East River; West End Avenue from 72nd Street to 86th Street; and Riverside Drive from 72nd Street to 96th Street.
§ 5-07 Revocation of Tax Exemption/Tax Abatement for Failure to Substantiate Claimed Costs and Declaratory Rulings.
(a) [Reserved.]
(1) In addition to the basis for revocation of tax benefits provided in chapter thirty-nine of this title, the Commissioner may reduce or revoke past or future tax exemption or tax abatement if he or she finds that the application for tax exemption or tax abatement, including all affidavits submitted in connection with the application, contains a false statement or false information as to a material matter or omits a material matter relating to claimed costs. It is the responsibility of the recipient of the benefits, whether the original applicant or any subsequent owner, including any condominium or cooperative, to document all claimed costs in a manner acceptable to HPD and in accordance with generally accepted auditing standards so that original checks or such other proof of payment as the Office shall require can be properly matched against the items on the Itemized Cost Breakdown Schedule and so that the auditors may examine original documentation for the cost of all supplies and the cost of all subcontracts. If a recipient of tax benefits hereunder fails to substantiate claimed costs to the satisfaction of HPD, the CRC shall be reduced or revoked as applicable. In the event that HPD determines on the basis of the total available evidence that the application contains a false statement or false information as to a material matter, or omits a material matter, relating to claimed costs, all benefits hereunder shall be revoked.
(2) Tax benefits will not be revoked for failure to substantiate the amount of claimed costs after the expiration of six years from the later of the date of the approval of the Certificate of Eligibility and Reasonable Cost as stated therein or the date upon which the tax benefits commence, except that (1) where an audit has been initiated within the six-year period, but a final determination has not been rendered, or (2) where the applicant has not made payment in full for the work comprising the project within two years after the applicant has collected the Certificate of Eligibility, then such benefits may be revoked subsequent to such six year period.
(3) All books, records and documents, which in accordance with generally accepted auditing standards, may be used to substantiate entries in the applicant’s books and records relating to claimed costs, shall be kept at all times available for inspection by the Office and shall be retained for a period of at least six years from the later of the date of the approval of the Certificate of Eligibility and Reasonable Cost as stated therein or the date upon which the tax benefits commence except that (1) where an audit has been initiated and a final determination has not been rendered, such records shall be retained until such determination has been made and (2) where an applicant has entered into an installment arrangement with respect to payment for work comprising all or a part of the project, such records shall be retained until the later of (i) three years from the date on which the applicant collects the Certificate of Eligibility and Reasonable Cost, and (ii) one year following payment in full for the work comprising the project.
(4) If an institutional lender has become a successor in interest to the original owner of such building or structure, and, after diligent efforts to obtain original contracts, checks and other records normally reviewed by the Office to verify claimed costs, is unable to obtain part or all of such records, the Office shall permit the substitution, in whole or in part, of documentation certified by the institutional lender showing the amounts advanced by the institutional lender pursuant to the mortgage loan to finance such alterations or improvements along with such other documentation as the Office may require.
(5) The revocation of tax exemption and/or abatement for failure to substantiate claimed costs hereunder shall be conducted in accordance with the procedures established pursuant to chapter thirty-nine of this title. Notwithstanding the foregoing, if, after HPD delivers an Initial Notice in accordance with chapter thirty-nine of this title, the Taxpayer fails to submit documentation to substantiate claimed costs during the Comment Period as defined in such Initial Notice, HPD shall deliver a Determination Notice to the Taxpayer in accordance with such chapter.
§ 5-07.1 New Eligibility Requirements for Conversions, Alterations or Improvements Completed On or After December 31, 2011.
(a) Definitions. For purposes of this 28 RCNY § 5-07.1, the following terms shall have the following meanings:
Program for the Development of Affordable Housing. “Program for the Development of Affordable Housing” means housing that complies with the requirements of a grant, loan or subsidy from any federal, state or local agency or instrumentality and of the Act or these Rules to provide the requisite percentage of its units as units affordable to and available for occupancy by individuals whose incomes do not exceed a specified limit.
Exempt Cooperatives and Condominiums. “Exempt Cooperatives and Condominiums” means multiple dwellings, Buildings and structures (a) owned and operated by Mutual Companies, (b) owned and operated by Mutual Redevelopment Companies, (c) developed as a planned community and owned as two separate Condominiums containing a total of ten thousand or more dwelling units, or (d) Cooperatives or Condominiums that have an average assessed value of less than thirty thousand dollars ($30,000) per dwelling unit. Inspection Fee.
“Inspection Fee” means two times the actual cost of inspecting any Conversion, Alteration or Improvement claimed in an application for benefits pursuant to this chapter.
Substantial Governmental Assistance. “Substantial Governmental Assistance” means (a) grants, loans or subsidies from any federal, state or local agency or instrumentality in furtherance of a program for the development of affordable housing approved by HPD, including, without limitation, financing or insurance provided by the state of New York mortgage agency or the New York city residential mortgage insurance corporation; or (b) a written agreement between an HDFC and HPD limiting the income of persons entitled to purchase shares or rent housing accommodation therein.
(1) any multiple dwelling, Building or structure that is owned as a Cooperative or Condominium other than Exempt Cooperatives and Condominiums shall only be eligible for benefits pursuant to these Rules if the Alterations or Improvements for which such multiple dwelling, Building or structure has applied for such benefits were carried out with Substantial Governmental Assistance;
(2) no benefits shall be granted for the Conversion of a non-residential Building or structure into a Class A Multiple Dwelling unless such Conversion was carried out with Substantial Governmental Assistance; and
(3) if such Conversions, Alterations or Improvements are not completed on the date upon which HPD inspects the items of work claimed in an application for benefits pursuant to these Rules, the applicant must pay the Inspection Fee for each additional inspection required to confirm that such Conversions, Alterations or Improvements have been completed.
§ 5-08 Itemized Cost Breakdown Schedule.
The following allowances apply to Conversions, Alterations or Improvements for which the Commencement of Construction occurred after June 1, 1997 and which were completed prior to December 31, 2011. For Conversions, Alterations or Improvements for which Commencement of Construction occurred on or before June 1, 1997, the Itemized Cost Breakdown Schedule in effect as of the date of such Commencement of Construction shall apply, except in the case of asbestos abatement, for which the allowance set forth below shall apply to all applications pending on or submitted after November 1, 1997.
Maximum Allowance for All Buildings
|
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|---|---|---|---|---|
| Item | Units | Allowance | ||
| # * | (1) | Asbestos abatement1 | See table | |
| # * | (2) | Boiler room enclosure | sq. ft. | 7.50 |
| # * | (3) | Bulkhead | sq. ft. | 8.50 |
| (4) | Ceiling, cellar (fireproof gyp bd) | sq. ft. | 1.60 | |
| (5) | Ceilings, gypsum board or plaster | rooms | ||
| # * | (6) | Cement wash or parge waterproofing | sq. ft. | 1.00 |
| (7) | Ceramic tile, bathroom2 | bathrooms | ||
| # * | (8) | Chimney, masonry | floors | 1,200. |
| * | (9) | Compactor, see Item 39. Refuse | ||
| # | Concrete, structural slab3 | cu. yd. | ||
| # | Concrete, structural foundation3 | cu. yd. | ||
| # | Concrete, flatwork4 | sq. ft. | 4.00 | |
| * | Abatement of lead-based paint hazards5 | See Itemized Cost Breakdown Schedule for Abatement of Lead-Based Paint Hazards in (h) below | ||
| Demolition & removal allowance6 | rooms | |||
| Doors (incl. frame and hardware) | ||||
| * | Main entrance and lobby | set | 4,000. | |
| * | Hollow metal | doors | ||
| Wood Swing | doors | |||
| Bi-fold closet | Bi-fold | |||
| Sliding closet (2 doors) | set | |||
| ** | Storm | doors | ||
| Dumbwaiters converted to closets | units | |||
| Dumbwaiters sealed | units | |||
| Entrance, stoops, steps, concrete | risers | |||
| * | Fire escapes | Flights | 2,000. | |
| # | Floor joists (incl. sub floor)3 | joists | ||
| Flooring, finished wood | rooms | |||
| Flooring, resilient w/underlayment | rooms | |||
| ** | Insulation, wall (thermal only) | sq. ft. | 0.50 | |
| ** | Insulation, roof (thermal only) | sq. ft. | 0.85 | |
| # * | Leaders and gutters | floors | ||
| * | Lintel replacement | units | ||
| * | Mailboxes | d.u. | ||
| # * | Masonry | sq. ft. | 7.50 | |
| # * | Parapet including coping | lin. ft. | ||
| Partitions, gypsum board or plaster | rooms | |||
| Partitions, framing | rooms | |||
| # * | Pointing7 | sq. ft. | 2.00 | |
| # * | Railings, roof | lin. ft. | ||
| * | Refuse | |||
| * | chute, complete | floors | ||
| * | compactor, central unit | compactors | 6,800. | |
| * | recycling, base separating unit (turntable &/or diverter) | chutes | 17,000. | |
| * | recycling, floor control panel | floors | ||
| # * | Roof surface | sq. ft. | 1.25 | |
| Skylight including screens8 | units | 1,300. | ||
| Stairs, steel | flights | 2,200. | ||
| # | Structural steel3 | lbs. | 1.50 | |
| * | Window, single pane glass9 | units | ||
| ** | Window, insulating glass | units | 175 | |
| ** | Window, insulating glass over 24 sf | sq. ft. | ||
| ** | Window, storm with screen | units | ||
| * | Window guards, approved security | units | 175 | |
| * | Window guards, childproof | units |
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|
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|---|---|---|---|---|
| Item | Units | Allowance | ||
| * | (1) | New elevator, complete | unitsfloors | 45,000+7,000 |
| * | (2) | Convert manual to automatic10 | units | 7,000. |
| Elevator, partial | ||||
| * | (3) | Motor11 | motor | 3,500. |
| * | (4) | Traction machine11 | units | 10,000. |
| * | (5) | One-speed controller11 | controller | 6,200. |
| * | (6) | Two-speed or variable controller11 | controller | 8,000. |
| * | (7) | Cables | floors | |
| * | (8) | Shaftway floor | doors | |
| * | (9) | Floor call station | floors | |
| * | Interlocks | interlocks | ||
| * | Door operator | units | 2,500. | |
| * | Car | |||
| * | Reline cab | units | 4,200. | |
| * | Top of car safety device | units | 2,800. |
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|
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|---|---|---|---|---|
| Item | Units | Allowance | ||
| (1) | Bathtubs12 | tubs | ||
| # * | (2) | Hot water heater/tank (input) | MBH | See table |
| # ** | (3) | Insulation, pipe (also for heating) | lin. ft. | 2.50 |
| (4) | Kitchen sink13 | sink | ||
| (5) | Lavatory12 | lavs | ||
| Piping | ||||
| * | (6) | Water main, risers, branches | d.u. | 1,700. |
| * | (7) | Waste and vent (complete) | d.u. | 1,500. |
| # * | (8) | Water service, street connect14 | lin. ft. | |
| # * | (9) | Sewer, street connection | lin. ft. | |
| * | Gas, risers and connections | d.u. | ||
| * | Sprinklers, heads only | heads | ||
| * | Sprinklers, piping and heads | heads | ||
| # * | Standpipe | floor | ||
| * | Tank, water storage | gallon | 1.50 | |
| Water closets12 | units | |||
| Food waste disposers13 | units |
~
|
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|---|---|---|---|---|
| Item | Units | Allowance | ||
| # ** | (1) | Boiler-burner (output)15 | MBH | See table |
| # ** | (2) | Boiler (output) | MBH | See table |
| # ** | (3) | Burner (output)15 | MBH | See table |
| (4) | Convectors or radiators | units | 250 | |
| # * | (5) | Electronic boiler control system | units | 2,500. |
| (6) | Exhaust duct (int. kit & bath only) | unit | ||
| # * | (7) | Metal boiler stack | floors | |
| # * | (8) | Oil tank | gallon | See table |
| * | (9) | Piping, heat mains, risers, branch | rooms |
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|
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|---|---|---|---|---|
| Item | Units | Allowance | ||
| * | (1) | All new apartment wiring | d.u.+room | 400.+420.* |
| * | (2) | Apartment wiring only, adequate(risers and meters separate)16 | d.u. | |
| * | (3) | Service equipment and risers16 | ||
| Electric service equipment | ||||
| * | with individual meter | entry+d.u. | 1,500.+160. | |
| * | with master meter | entry+d.u. | 1,500+110. | |
| * | Apartment panel | d.u. | ||
| Risers | ||||
| * | with individual meter16 | d.u. | ||
| * | with master meter16 | d.u. | ||
| * | (4) | Intercom, door opener | d.u. | |
| (5) | Outlet on new circuit | circuit | ||
| * | (6) | Smoke detectors, hard wired | d.u. | |
| * | (7) | Submetering installation17 | d.u. | |
| # | (8) | Cogeneration equipment19 | kilowatt | 400 |
~
|
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|---|---|---|---|---|
| Item | Units | Allowance | ||
| (1) | Kitchen cabinets18 | lin. ft. | ||
| (2) | Kitchen cabinets, base & counter18 | lin. ft. | ||
| (3) | Medicine cabinets inc. mirror12 | units | ||
| (4) | Range (minimum 24 in. width)13 | units | ||
| (5) | Refrigerator (min. 12 cf nominal)13 | units | ||
| (6) | Steam or chemical cleaning | sq. ft. | 0.80 |
~
Items of work listed on this schedule only per 28 RCNY § 5-03(a)(5)
| Boiler/Burner Table(maximum allowance) | |||
|---|---|---|---|
| Item | Output in MBH (thousand BTU per hour) | ||
| 0 - 2,000 MBH | 2,000 - 6,000 MBH | > 6,000 MBH | |
| Boiler-burner15 | $1,500.16.50/MBH | 20,000.7.25/MBH | 47,600.2.65/MBH |
| Burner15 | $500.4.75/MBH | 6000.2.00/MBH | 8,300.1.65/MBH |
| Boiler (existing burner) | $1,000.11.75/MBH | 14,000.5.25/MBH | 39,300.1.00/MBH |
~
| Domestic Hot Water Table(maximum allowance) | |
|---|---|
| Input in MBH | Allowance |
| 0 - 600 | $460. 9.10/MBH |
| >600 | $1,900. 6.70/MBH |
~
| Oil Tank Table(maximum allowance) | |
|---|---|
| Size in Gallons | Allowance |
| 0 - 4,000 | $500. l.10/gal. |
| >4,000 | $2,900. .50/gal. |
~
| Asbestos Abatement Table(maximum allowance) | |
|---|---|
| Internal Linear Feet | $1,600. + $10./linear ft. |
| Internal Square Feet | $1,600. + $10./sq. ft. |
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|
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|---|---|---|---|---|---|
| Item | Units | Allowance for Non-targeted Areas | Allowance for Targeted Areas | ||
| # * | Inspection for Lead-Based Paint Hazards20 | d.u.commonarea21 | |||
| # * | Risk Assessment of Lead-Based Paint Hazards20 | d.u.commonarea22 | |||
| # * | Ceilings, lamination | rooms | |||
| # * | Ceilings, common area, lamination | sq. ft. | 1.80 | 2.50 | |
| # * | Doors (incl. frame and hardware), main entrance and lobby | set | 4,600. | 5,000. | |
| # * | Doors (incl. frame and hardware), hollow metal | doors | |||
| # * | Doors (incl. frame and hardware), wood swing | doors | |||
| # * | Doors (incl. frame and hardware), bi-fold closet | bi-fold | |||
| # * | Sliding closet (2 doors, incl. frame and hardware) | set | |||
| # * | Flooring, finished wood | rooms | 1,250. | ||
| # * | Flooring, resilient w/underlayment | rooms | |||
| # * | Partitions, gypsum board or plaster | rooms | 1,170. | ||
| # * | Partitions, common area | sq. ft. | 1.80 | 2.50 | |
| # * | Stairs, steel (incl. risers, pans, railings, stringers, & newel posts), stripped | steps | |||
| # * | Window, insulating glass | units | |||
| # * | Window, insulating glass over 24 sf | sq. ft. | |||
| # * | Convectors or radiators, new | units | |||
| # * | Convectors or radiators, stripped | units | |||
| # * | Risers, stripped | lin. ft. | |||
| # * | Kitchen cabinets18 | lin. ft. | |||
| # * | Kitchen cabinets, base & counter18 | lin. ft. | |||
| # * | Medicine cabinets (incl. mirror)23 | units | |||
| # * | Remove and install window sill | units | |||
| # * | Remove and install baseboard, wood molding | lin. ft. | 2.50 | 3.50 | |
| # * | Remove and install closet shelf and pole | set |
~
* Denotes Major Capital Improvement (MCI).
** Denotes Energy Conversation Items which shall also be considered Major Capital Improvements.
# Denotes that the item allowance may be reduced by proportion of non-residential space where the item serves both residential and non-residential space. (Items wholly within or serving the non-residential space receive no allowance.)
1. For (1) removal or encapsulation of any friable asbestos when done as part of a substantial rehabilitation requiring an alteration permit, or (2) for removal of asbestos Thermal System Insulation (TSI) on other rehabilitation or (3) for removal of other friable asbestos (and not roofing, siding or flooring) pursuant to a report from a certified asbestos inspector describing condition, quantity and location of asbestos containing materials to be removed including microscopic analysis. TSI shall mean insulation applied to heating, ventilation or air conditioning systems, hot or cold domestic water systems for the purpose of preventing heat transfer or water condensation. TSI shall include insulation on boilers, water tanks, air handling equipment and ducts, piping, pipe fittings or valves.
4. This item includes inner walkways, courtyards, cellar slabs and the public sidewalk.
5. For construction commenced on or after August 2, 2004, requires (a) “an abatement” of lead-based paint hazards, as defined in 40 Code of Federal Regulations part 745 or any successor regulations, in any existing dwelling, including any vacant or occupied dwelling unit or any common area, and (b) proof of lead-based paint hazards pursuant to an “inspection” and/or “risk assessment”, as defined in 40 Code of Federal Regulations part 745 or any successor regulations. Notwithstanding the foregoing, no such benefit shall be given for (a) any abatement performed to comply with a notice of violation issued for a violation of article fourteen of subchapter two of chapter two of title 27 of the Administrative Code, or (b) any abatement performed in a dwelling unit or in the common areas in such dwelling unless all of the lead-based paint hazards identified in such dwelling unit or in all of the common areas in such dwelling have been abated. Furthermore, the deleading of lead-based paint hazards pursuant to a NYC Dept. of Health and Mental Hygiene order that is commenced prior to August 2, 2004 will continue to be eligible for J-51 benefits provided that there is an approved contract and sign-off. The allowance for such deleading of lead-based paint hazards will be per contract.
6. For substantial alterations and conversions only. The maximum quantity for this item is the number of new rooms created in the space where the demolition was done.
17. For submetering, the owner must comply with the rent decrease requirements of DHCR, and the project must consist of a building-wide submetering in all individual dwelling units.
18. The eligible length cannot exceed 8 feet in any apartment.
19. This item requires an affidavit from an engineer or architect certifying the installation of a natural gas-fired electric cogeneration system or the conversion or modification of an existing oil-fired cogeneration system to a natural gas-fired electric cogeneration system. Such affidavit also must provide that the waste heat from the cogeneration unit is used for heating domestic hot water or space heating or cooling of the residential units.
20 In order to qualify for benefits for Inspection for Lead-Based Paint Hazards or Risk Assessment of Lead-Based Paint Hazards, (a) the inspection or risk assessment must be an “inspection” or “risk assessment” as defined in 40 Code of Federal Regulations part 745 or any successor regulations, (b) the inspection or risk assessment must have determined that lead-based paint hazards exist in such dwelling, including any vacant or occupied dwelling unit or any common area, and (c) an “abatement” of lead-based paint hazards, as defined in 40 Code of Federal Regulations part 745 or any successor regulations, must have been performed in response to such inspection or risk assessment determination. Notwithstanding the foregoing, no such benefit shall be given for the inspection or risk assessment of a dwelling unit or common area if (a) any abatement performed in a dwelling unit or common area in response to such inspection or risk assessment determination was also performed to comply with a notice of violation issued for a violation of article fourteen of subchapter two of chapter two of title 27 of the Administrative Code, or (b) all of the lead-based paint hazards identified in such dwelling unit or in all of the common areas in such dwelling by such inspection or risk assessment have not been abated. Furthermore, such benefits for inspection or risk assessment of lead-based paint hazards shall only be given for such inspections or risk assessments commenced on or after August 2, 2004.
21 For dwellings with no more than three stories, the allowance for both non-targeted areas and targeted areas for inspection of all of the common areas in such dwelling is $400. For dwellings with four to six stories, the allowance for both non-targeted areas and targeted areas for inspection of all of the common areas in such dwelling is $800. For dwellings with at least seven stories, the allowance for both non-targeted areas and targeted areas for inspection of all of the common areas in such dwelling is $1,200.
22 For dwellings with no more than three stories, the allowance for both non-targeted areas and targeted areas for risk assessment of all of the common areas in such dwelling is $250. For dwellings with four to six stories, the allowance for both non-targeted areas and targeted areas for risk assessment of all of the common areas in such dwelling is $300. For dwellings with at least seven stories, the allowance for both non-targeted areas and targeted areas for risk assessment of all of the common areas in such dwelling is $400.
23 Maximum of one per apartment unless the apartment has two or more bathrooms.
The following allowances apply to Conversions, Alterations or Improvements that are completed on or after December 31, 2011.
Maximum Allowance for All Buildings
|
|||||
|---|---|---|---|---|---|
| Item | Units | Allowance | |||
| Non-SGA Condo/Coops1 | Rentals & SGA Condo/Coops2 | ||||
| # * | Asbestos abatement3 | See table | See table | ||
| # * | Boiler room enclosure | sq. ft. | 7.50 | 7.50 | |
| # * | Bulkhead | sq. ft. | 8.50 | 12.39 | |
| Ceiling, cellar (fireproof gyp bd) | sq. ft. | 1.60 | 1.60 | ||
| Ceilings, gypsum board or plaster | rooms | 280.00 | 280.00 | ||
| # * | Cement wash or parge waterproofing | sq. ft. | 1.00 | 1.00 | |
| # * | Chimney, masonry | floors | 1,200.00 | 1,319.18 | |
| # | Concrete, structural slab4 | cu. yd. | 500.00 | 500.00 | |
| # | Concrete, structural foundation4 | cu. yd. | 250.00 | 250.00 | |
| # | Concrete, flatwork5 | sq. ft. | 4.00 | 4.00 | |
| Abatement of lead-based paint hazards6 | See Itemized Cost Breakdown Schedule for Abatement of Lead-Based Paint Hazards in (g) below | See Itemized Cost Breakdown Schedule for Abatement of Lead-Based Paint Hazards in (g) below | |||
| Demolition & removal allowance7 | rooms | 200.00 | 200.00 | ||
| Doors (incl. frame and hardware) | |||||
| Main entrance and lobby | set | 4,000.00 | 4,000.00 | ||
| Hollow metal | doors | 475.00 | 475.00 | ||
| ** | Storm | doors | 180.00 | 180.00 | |
| Dumbwaiters sealed | units | 110.00 | 110.00 | ||
| Entrance, stoops, steps, concrete | risers | 225.00 | 225.00 | ||
| Fire escapes | flights | 2,000.00 | 2,000.00 | ||
| # | Floor joists (incl. sub floor)4 | joists | 165.00 | 165.00 | |
| ** | Insulation, wall (thermal only) | sq. ft. | 0.50 | 0.50 | |
| # * | Leaders and gutters | floors | 40.00 | 72.10 | |
| Lintel replacement | units | 250.00 | 250.00 | ||
| # * | Masonry | sq. ft. | 7.50 | 7.50 | |
| # * | Parapet including coping | lin. ft. | 135.00 | 135.00 | |
| Partitions, gypsum board or plaster | rooms | 600.00 | 600.00 | ||
| Partitions, framing | rooms | 350.00 | 350.00 | ||
| # * | Pointing8 | sq. ft. | 2.00 | 2.64 | |
| # * | Railings, roof | lin. ft. | 25.00 | 30.14 | |
| Refuse chute, complete | floors | 750.00 | 750.00 | ||
| # * | Roof surface | sq. ft. | 1.25 | 1.25 | |
| Skylight including screens9 | units | 1,300.00 | 1,300.00 | ||
| Stairs, steel | flights | 2,200.00 | 4,620.00 | ||
| # | Structural steel4 | lbs. | 1.50 | 1.50 | |
| ** | Window, insulating glass | units | 175.00 | 367.50 | |
| ** | Window, insulating glass over 24 sf | sq. ft. | 10.00 | 21.00 | |
| ** | Window, storm with screen | units | 65.00 | 65.00 | |
| Window guards, approved security | units | 175.00 | 175.00 | ||
| Window guards, childproof | units | 25.00 | 25.00 | ||
|
|||||
| Item | Units | Allowance | |||
| Non-SGA Condo/Coops1 | Rentals & SGA Condo/Coops2 | ||||
| New elevator, complete | units + floors | 45,000.00 + 7,000.00 | 45,000.00 + 7,000.00 | ||
| Convert manual to automatic10 | units | 7,000.00 | 7,000.00 | ||
| Elevator, partial | |||||
| Motor11 | motor | 3,500.00 | 3,500.00 | ||
| Traction machine11 | units | 10,000.00 | 10,000.00 | ||
| Two-speed or variable controller11 | each | 8,000.00 | 8,000.00 | ||
| Cables | floors | 400.00 | 400.00 | ||
| Shaftway floor | doors | 800.00 | 800.00 | ||
| Floor call station | floors | 200.00 | 200.00 | ||
| Interlocks | each | 280.00 | 280.00 | ||
| Door operator | units | 2,500.00 | 2,500.00 | ||
| Car reline cab | units | 4,200.00 | 4,200.00 | ||
|
|||||
| Item | Units | Allowance | |||
| Non-SGA Condo/Coops1 | Rentals & SGA Condo/Coops2 | ||||
| # * | Hot water heater/tank (input) | MBH | See table | See table | |
| # ** | Insulation, pipe (also for heating) | lin. ft. | 2.50 | 2.50 | |
| Piping | |||||
| Water main, risers, branches | d.u. | 1,700.00 | 3,570.00 | ||
| Waste and vent (complete) | d.u. | 1,500.00 | 1,500.00 | ||
| # * | Water service, street connect12 | lin. ft. | 110.00 | 110.00 | |
| # * | Sewer, street connection | lin. ft. | 200.00 | 200.00 | |
| Gas, risers and connections | d.u. | 275.00 | 287.70 | ||
| Sprinklers, piping and heads | heads | 220.00 | 220.00 | ||
| # * | Standpipe | floor | 600.00 | 1,260.00 | |
| Tank, water storage | gallon | 1.50 | 1.50 | ||
|
|||||
| Item | Units | Allowance | |||
| Non-SGA Condo/Coops1 | Rentals & SGA Condo/Coops2 | ||||
| # ** | Boiler-burner (output)13 | MBH | See table | See table | |
| # ** | Boiler (output) | MBH | See table | See table | |
| # ** | Burner (output)13 | MBH | See table | See table | |
| Convectors or radiators | units | 250.00 | 306.60 | ||
| # * | Electronic boiler control system | units | 2,500.00 | 2,500.00 | |
| # * | Metal boiler stack | floors | 400.00 | 535.92 | |
| # * | Oil tank | gallon | See table | See table | |
| Piping, heat mains, risers, branch | rooms | 220.00 | 352.10 | ||
|
|||||
| Item | Units | Allowance | |||
| Non-SGA Condo/Coops1 | Rentals & SGA Condo/Coops2 | ||||
| All new apartment wiring | d.u. + room | 400.00 + 420.00* | 400.00 + 420.00* | ||
| Apartment wiring only, adequate(risers and meters separate) | d.u. | 370.00 | 370.00 | ||
| Service equipment and risers | |||||
| Electric service equipment | |||||
| with individual meter | entry + d.u. | 1,500.00 + 160.00 | 1,500.00 + 160.00 | ||
| with master meter | entry + d.u. | 1,500.00 + 110.00 | 1,500.00 + 110.00 | ||
| Apartment panel | d.u. | 300.00 | 300.00 | ||
| Risers | |||||
| with individual meter | d.u. | 500.00 | 500.00 | ||
| with master meter | d.u. | 350.00 | 350.00 | ||
| Outlet on new circuit | circuit | 100.00 | 100.00 | ||
| Smoke / carbon monoxide detector combination (hard wired) | d.u. | 100.00 | 100.00 | ||
| Submetering installation14 | d.u. | 280.00 | 280.00 | ||
| # | Cogeneration equipment15 | kilowatt | 400.00 | 400.00 |
~
Items of work listed on this schedule only per 28 RCNY § 5-03(a)(5)
| Boiler/Burner Table(maximum allowance) | |||
|---|---|---|---|
| Non-SGA Condo/Coops1 | Output in MBH (thousand BTU per hour) | ||
| Items | 0 - 1,999 MBH | 2,000 - 5,999 MBH | ≥ 6,000 MBH |
| Boiler-burner13 | $1,500 + $16.50/MBH | $20,000 + $7.25/MBH | $47,600 + $2.65/MBH |
| Burner13 | $500 + $4.75/MBH | $6,000 + $2.00/MBH | $8,300 + $1.65/MBH |
| Boiler (existing burner) | $1,000 + $11.75/MBH | $14,000 + $5.25/MBH | $39,300 + $1.00/MBH |
~
| Rentals & SGA Condo/Coops2 | Output in MBH (thousand BTU per hour) | |||
|---|---|---|---|---|
| Items | 0 - 749 MBH | 750 - 1,999 MBH | 2,000 - 5,999 MBH | ≥ 6,000 MBH |
| Boiler-burner13 | $8,895 + $13.90/MBH | $8,895 + $13.90/MBH | $19,700 + $8.50/MBH | $19,700 + $8.50/MBH |
| Burner13 | $3,450 + $0.82/MBH | $500 + $4.75/MBH | $6,000 + $2.00/MBH | $8,300 + $1.65/MBH |
| Boiler (existing burner) | $5,445 + $13.08/MBH | $8,395 + $9.15/MBH | $13,700 + $6.50/MBH | $11,400 + $6.85/MBH |
~
| Domestic Hot Water Table(maximum allowance) | |
|---|---|
| Non-SGA Condo/Coops1 | |
| Input in MBH | Allowance |
| 0 - 600 | $460 + 9.10/MBH |
| > 600 | $1,900 + 6.70/MBH |
| Rentals & SGA Condo/Coops2 | |
| Input in MBH | Allowance |
| 0 - 599 | $2,700 + $30.49/MBH |
| > 600 | $13,326.51 + $10.90/MBH |
~
| Oil Tank Table(maximum allowance) | |
|---|---|
| Non-SGA Condo/Coops1 | |
| Size in Gallons | Allowance |
| 0 - 4,000 | $500 + $1.10/gal. |
| > 4,000 | $2,900 + $0.50/gal. |
| Rentals & SGA Condo/Coops2 | |
| Size in Gallons | Allowance |
| 0 - 3,999 | $3,775 + $1.60/gal. |
| ≥ 4,000 | $6,975 + $0.80/gal. |
~
| Asbestos Abatement Table(maximum allowance) | |
|---|---|
| Non-SGA Condo/Coops1 | |
| Removal Units | Allowance |
| Internal Linear Feet | $1,600 + $11/lin. ft. |
| Internal Square Feet | $1,600 + $11/sq. ft. |
| Rentals & SGA Condo/Coops2 | |
| Removal Units | Allowance |
| Internal Linear Feet | $1,600 + $11/lin. ft. |
| Internal Square Feet | $1,600 + $11/sq. ft. |
~
|
|||||
|---|---|---|---|---|---|
| Item | Units | Allowance | |||
| Non-targeted Areas | Targeted Areas | ||||
| Inspection for Lead-Based Paint Hazards16 | d.u. common area17 | 400.00 | 400.00 | ||
| Risk Assessment of Lead-Based Paint Hazards16 | d.u. common area18 | 250.00 | 250.00 | ||
| Ceilings, lamination | rooms | 320.00 | 420.00 | ||
| Ceilings, common area, lamination | sq. ft. | 1.80 | 2.50 | ||
| Doors (incl. frame and hardware), main entrance and lobby | set | 4,600.00 | 5,000.00 | ||
| Doors (incl. frame and hardware), hollow metal | doors | 550.00 | 800.00 | ||
| Doors (incl. frame and hardware), wood swing | doors | 155.00 | 350.00 | ||
| Doors (incl. frame and hardware), bi- fold closet | bi-fold | 125.00 | 300.00 | ||
| Sliding closet (2 doors, incl. frame and hardware) | set | 145.00 | 300.00 | ||
| Flooring, finished wood | rooms | 575.00 | 1,250.00 | ||
| Flooring, resilient w/underlayment | rooms | 515.00 | 585.00 | ||
| Partitions, gypsum board or plaster | rooms | 690.00 | 1,170.00 | ||
| Partitions, common area | sq. ft. | 1.80 | 2.50 | ||
| Stairs, steel (incl. risers, pans, railings, stringers, & newel posts), stripped | steps | 45.00 | 60.00 | ||
| Window, insulating glass | units | 200.00 | 425.00 | ||
| Window, insulating glass over 24 sf | sq. ft. | 12.00 | 30.00 | ||
| Convectors or radiators, new | units | 260.00 | 275.00 | ||
| Convectors or radiators, stripped | units | 115.00 | 150.00 | ||
| Risers, stripped | lin. ft. | 15.00 | 20.00 | ||
| Kitchen cabinets19 | lin. ft. | 65.00 | 75.00 | ||
| Kitchen cabinets, base & counter19 | lin. ft. | 80.00 | 105.00 | ||
| Medicine cabinets (incl. mirror)20 | units | 95.00 | 125.00 | ||
| Remove and install window sill | units | 115.00 | 150.00 | ||
| Remove and install baseboard, wood molding | lin. ft. | 2.50 | 3.50 | ||
| Remove and install closet shelf and pole | set | 55.00 | 75.00 |
~
* Denotes Major Capital Improvement (MCI).
** Denotes Energy Conversation Items which shall also be considered Major Capital Improvements.
# Denotes that the item allowance may be reduced by proportion of non-residential space where the item serves both residential and non-residential space. (Items wholly within or serving the non-residential space receive no allowance.)
1 The Maximum CRC contained in this column is available to multiple dwellings, Buildings or structures that are owned as a Cooperative or Condominium and that have an average assessed value of less than thirty thousand dollars per dwelling unit.
2 The Maximum CRC contained in this column is available to multiple dwellings, Buildings or structures that are (a) owned and operated as rental developments, (b) owned and operated by Mutual Companies, (c) owned and operated by Mutual Redevelopment Companies, (d) developed as a planned community and owned as two separate Condominiums containing a total of ten thousand or more dwelling units, or (e) owned as a Cooperative or Condominium for which the Alterations or Improvements for which such multiple dwelling, Building or structure has applied for J-51 benefits were carried out with Substantial Governmental Assistance as such term is defined in 28 RCNY § 5-07.1(a).
3 For (1) removal or encapsulation of any friable asbestos when done as part of a substantial rehabilitation requiring an alteration permit, or (2) for removal of asbestos Thermal System Insulation (TSI) on other rehabilitation or (3) for removal of other friable asbestos (and not roofing, siding or flooring) pursuant to a report from a certified asbestos inspector describing condition, quantity and location of asbestos containing materials to be removed including microscopic analysis. TSI means insulation applied to heating, ventilation or air conditioning systems, hot or cold domestic water systems for the purpose of preventing heat transfer or water condensation. TSI shall include insulation on boilers, water tanks, air handling equipment and ducts, piping, pipe fittings or valves.
4 This item requires an affidavit from an engineer or architect certifying that he has personal knowledge of the installation and that the quantity claimed was installed. It also requires site photographs or other evidence satisfactory to HPD documenting the installation of the item.
5 This item includes inner walkways, courtyards, cellar slabs and the public sidewalk.
6 “For construction commenced on or after August 2, 2004, requires (a) “”an abatement”” of lead-based paint hazards, as defined in 40 Code of Federal Regulations part 745 or any successor regulations, in any existing dwelling, including any vacant or occupied dwelling unit or any common area, and (b) proof of lead-based paint hazards pursuant to an “inspection” and/or “risk assessment”, as defined in 40 Code of Federal Regulations part 745 or any successor regulations. Notwithstanding the foregoing, no such benefit shall be given for (a) any abatement performed to comply with a notice of violation issued for a violation of article fourteen of subchapter two of chapter two of title 27 of the Administrative Code, or (b) any abatement performed in a dwelling unit or in the common areas in such dwelling unless all of the lead-based paint hazards identified in such dwelling unit or in all of the common areas in such dwelling have been abated.
Furthermore, the deleading of lead-based paint hazards pursuant to a NYC Dept. of Health and Mental Hygiene order that is commenced prior to August 2, 2004 will continue to be eligible for J-51 benefits provided that there is an approved contract and sign-off. The allowance for such deleading of lead-based paint hazards will be per contract.”
7 For substantial alterations and conversions only. The maximum quantity for this item is the number of new rooms created in the space where the demolition was done.
8 Not eligible if brickwork is covered by cement wash or other coating.
9 For skylights over 16 sq. ft. The maximum allowance for eligible skylights under 16 sq. ft. shall be 50 percent of allowance listed.
10 Plus all other applicable partial elevator items listed.
11 For buildings over eight stories the approved quantity shall be equal to the actual quantity increased by 10 percent for each floor over eight.
12 For water service 2 1/2” in diameter or greater than approved length shall be equal to one and one-half times the actual installed length.
13 Oil, gas, or combination burner.
14 For submetering, the owner must comply with the rent decrease requirements of DHCR, and the project must consist of a building-wide submetering in all individual dwelling units.
15 This item requires an affidavit from an engineer or architect certifying the installation of a natural gas-fired electric cogeneration system or the conversion or modification of an existing oil-fired cogeneration system to a natural gasfired electric cogeneration system. Such affidavit also must provide that the waste heat from the cogeneration unit is used for heating domestic hot water or space heating or cooling of the residential units.
16 In order to qualify for benefits for Inspection for Lead-Based Paint Hazards or Risk Assessment of Lead-Based Paint Hazards, (a) the inspection or risk assessment must be an “inspection” or “risk assessment” as defined in 40 Code of Federal Regulations part 745 or any successor regulations, (b) the inspection or risk assessment must have determined that lead-based paint hazards exist in such dwelling, including any vacant or occupied dwelling unit or any common area, and (c) an “abatement” of lead-based paint hazards, as defined in 40 Code of Federal Regulations part 745 or any successor regulations, must have been performed in response to such inspection or risk assessment determination. Notwithstanding the foregoing, no such benefit shall be given for the inspection or risk assessment of a dwelling unit or common area if (a) any abatement performed in a dwelling unit or common area in response to such inspection or risk assessment determination was also performed to comply with a notice of violation issued for a violation of article fourteen of subchapter two of chapter two of title 27 of the Administrative Code, or (b) all of the leadbased paint hazards identified in such dwelling unit or in all of the common areas in such dwelling by such inspection or risk assessment have not been abated. Furthermore, such benefits for inspection or risk assessment of lead-based paint hazards shall only be given for such inspections or risk assessments commenced on or after August 2, 2004.
17 For dwellings with no more than three stories, the allowance for both non-targeted areas and targeted areas for inspection of all of the common areas in such dwelling is $400. For dwellings with four to six stories, the allowance for both non-targeted areas and targeted areas for inspection of all of the common areas in such dwelling is $800. For dwellings with at least seven stories, the allowance for both non-targeted areas and targeted areas for inspection of all of the common areas in such dwelling is $1,200.
18 For dwellings with no more than three stories, the allowance for both non-targeted areas and targeted areas for risk assessment of all of the common areas in such dwelling is $250. For dwellings with four to six stories, the allowance for both non-targeted areas and targeted areas for risk assessment of all of the common areas in such dwelling is $300. For dwellings with at least seven stories, the allowance for both non-targeted areas and targeted areas for risk assessment of all of the common areas in such dwelling is $400.
19 The eligible length cannot exceed 8 feet in any apartment.
20 Maximum of one per apartment unless the apartment has two or more bathrooms.
§ 5-09 Additional Documentation for Certain Alterations or Improvements.
Applications for alterations requiring a new or amended Certificate of Occupancy must include: (a) PW-1, PW-1A, PW-1B and Initial Work Permits; and (b) final Certificate of Occupancy; (c) such additional documentation as may be applicable or re- quested. The following major capital improvements require the approval of designated agencies on the forms indicated below, and such additional documentation as the Office shall require. The forms listed herein may be revised or added to by the Department of Buildings, in which case the Office will require the forms as revised. If a Borough Office was not using any of the referenced forms when documentation was obtained, the Office may require the forms then in effect or as listed in the prior Rules and Regulations.
(1) Asbestos Inspection Report (ACP-7) or Asbestos Removal Plan.
(1) DOB Certificate of Electrical Inspection or contractor’s affidavit if the Certificate is not applicable.
(1) Notice of Proposed Steam or Hot Water Boiler Installation for boilers serving 6 units or more and over 350,000 BTUs (B form 900A signed by a boiler inspector, DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) For boilers with a capacity of 350,000 BTUs or more, approved Application for Certificate of Operation (APC 5-0, stamped) or Certificate of Registration (APC 501), (Bureau of Air, Noise and Hazardous Materials, DEP); and
(4) DOB Certificate of Electrical Inspection or contractor’s affidavit if the Certificate is not applicable (e.g., if boiler only); and
(5) Certificate of Approval for Oil Burning Installation (B Form 16A, Sign-off, DOB).
(1) Schedule B Plumbing (PW-1B) and/or Notice of Proposed Steam or Hot Water Boiler I installation (B form 900A signed by a boiler inspector) (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) For boilers with a capacity of 350,000 BTUs or more, approved Application for Certificate of Operation (APC 5-0, stamped) or Certificate of Registration (APC 501), (Bureau of Air, Noise and Hazardous Materials, DEP); and
(4) DOB Certificate of Electrical Inspection or contractor’s affidavit if the Certificate is not applicable.
(1) If burner is oil-fired, documents (1) through (5) in paragraph (c) above; or
(2) If burner is gas-fired, documents (1) through (4) of paragraph (d) above; or
(3) If burner is gas- and oil-fired, documents (1) through (4) of paragraph (d) above.
(1) Approved Application for Certificate of Operation (APC 5-0, stamped, Bureau of Air, Noise and Hazardous Materials, DEP).
(1) Plan/Work Approval Application with Schedule C Heating & Combustion Equipment for oil or Schedule B Plumbing for gas (PW-1 with PW-1C or PW-1B), or computer printout showing scope of work (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) DOB Certificate of Electrical Inspection or contractor’s affidavit if the Certificate is not applicable; and
(4) Approved Application for Certificate of Operation (APC 5-0, stamped, Bureau Air, Noise and Hazardous Materials, DEP); and
(5) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Initial Work Permit or PW-2 (DOB); and
(2) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Initial Work Permit or PW-2 (DOB); and
(2) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Initial Work Permit or PW-2 (DOB); and
(2) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(3) For replacement compactor, submit affidavit attesting to the replacement.
(1) Initial Work Permit or PW-2 (DOB); and
(2) Computer print-out showing plumbing sign-off or B Form 505 (DOB) or Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Violation Notice, Approved Contract and Violation Dismissal (Department of Health)
(1) Approved Elevator application/Permit (ELV-1, DOB); and
(2) Sign-off by a DOB inspector (Form 73), or a stamped Elevator Inspection/Test Report by Approved Private Elevator Inspection Agency (ELV-3, DOB); and
(1) Initial Work Permit or PW-2 (DOB); and
(2) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1B), or computer printout showing scope of work (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(4) For boilers with a capacity of 350,000 BTUs or more, approved Application for Certificate of Operation (APC 5-0, stamped) or Certificate of Registration (APC 501), (Bureau of Air, Noise and Hazardous Materials, DEP).
(1) Permit for Minor Work or Certificate of Appropriateness as applicable and Notice of Compliance (Landmarks Preservation Commission); and
(2) Description of Landmarks Preservation work listed on or attached to the R-2 form available from the J-51 Office.
(1) Plan/Work Approval Application with Schedule C Heating & Combustion Equipment (PW-1 with PW-1C), or computer printout showing scope of work (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Certificate of Approval for Oil Burning Installation (B Form 16A, Sign-off, DOB).
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1B) or computer printout showing scope of work (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Computer printout showing plumbing sign-off or B Form 505 (DOB); and
(4) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1B) or computer printout showing scope of work, (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Computer printout showing plumbing sign-off or B Form 505 or Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Plan/Work Approval Application with Schedule B (PW-1 with PW-1B) or computer printout showing scope of work, (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Computer printout showing plumbing sign-off or B Form 505 (DOB) or Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Initial Work Permit or PW-2 or Plan/Work Approval Application or computer printout showing scope of work (PW-1, DOB); and
(2) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Street Opening Permit from the Bureau of Sewers (DEP) or Bureau of Highways (Department of Transportation) as applicable.
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1B) or computer printout showing scope of work, (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Plan/Work Approval (PW-1) or computer printout showing scope of work, (DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
(1) Affidavit from an architect or engineer specifying the nature, quantity and location of work done (e.g. number of floor joists installed, cubic yards of structural concrete used, pounds of structural steel used, etc.). In addition, length, size and placement of steel beams may be required. Photographs of new floor joists in place are recommended.
(1) Street-Opening Permit (Bureau of Highways, DOT)
(aa) New water storage tank (no permit required for replacement, submit affidavit attesting to replacement).
(1) Plan/Work Approval Application with Schedule B Plumbing (PW-1 with PW-1B) or computer printout showing scope of work DOB); and
(2) Initial Work Permit or PW-2 (DOB); and
(3) Letter of Completion for DIR. 14 on work done pursuant to permit or computer printout showing the sign-off date (DOB).
§ 5-10 Neighborhood Preservation Program Areas.
AREAS IN THE COUNTY OF BRONX:
MOTT HAVEN: The area bounded by East 159th Street; Third Avenue; East 161st Street; Prospect Avenue; East 149th Street; Jackson Avenue; Bruckner Expressway; Major Deegan Expressway; Morris Avenue; East 149th Street and Park Avenue.
ALDUS GREEN: The area bounded by East 169th Street; East 167th Street; Westchester Avenue; Sheridan Expressway; Longfellow Avenue; Randall Avenue; Tiffany Street; Longwood Avenue; Bruckner Expressway; East 149th Street; and Prospect Avenue.
MORRISANIA: The area bounded by Cross Bronx Expressway; Park Avenue; East 174th Street; Washington Avenue; Cross Bronx Expressway; Arthur Avenue; Crotona Park North; Waterloo Place; East 175th Street; Southern Boulevard; Cross Bronx Expressway; Sheridan Expressway; East 167th Street; East 169th Street; Prospect Avenue; East 161st Street; Third Avenue; East 159th Street; Park Avenue; and Webster Avenue.
HIGHBRIDGE-CONCOURSE: The area bounded by Washington Bridge-Cross Bronx Expressway; Webster Avenue; Park Avenue; East 149th Street; and the Harlem River.
WEST TREMONT: The area bounded by West Fordham Road; East Fordham Road; Webster Avenue; Cross Bronx Expressway; George Washington Bridge; and the Harlem River.
BELMONT-BRONX PARK SOUTH: The area bounded by Southern Boulevard; Bronx Park South; Boston Road; East 180th Street; Bronx River Parkway; Cross Bronx Expressway; Crotona Parkway; East 175th Street; Waterloo Place; Crotona Park North; Arthur Avenue; Cross Bronx Expressway; Washington Avenue; East 174th Street; Park Avenue; Cross Bronx Expressway; and Webster Avenue.
KINGSBRIDGE: The area bounded by Van Cortlandt Park South; West Gun Hill Road; Jerome Avenue; Bainbridge Avenue; East 211th Street and its prolongation; Conrail right of way; Bedford Park Boulevard; Webster Avenue; East Fordham Road; West Fordham Road; the Harlem River; Marble Hill Avenue; West 230th Street; Riverdale Avenue; Greystone Avenue; Waldo Avenue; Manhattan College Parkway; and Broadway.
SOUND VIEW: The area bounded by the Cross Bronx Expressway; Bronx River Parkway; East Tremont Avenue; White Plains Road; Randall Avenue; Olmstead Avenue; Lacombe Avenue; Westchester Creek; East River; Bronx River; Westchester Avenue; and Sheridan Expressway.
PELHAM PARKWAY: The area bounded by Adee Avenue; Mathews Avenue; Williamsbridge Road; Pelham Parkway South; Yates Avenue; Lydig Avenue; Williamsbridge Road; Neil Avenue; Bogart Avenue; East Tremont Avenue; Bronx River Parkway; and Bronx Park East.
AREAS IN THE COUNTY OF KINGS (BROOKLYN):
WILLIAMSBURG: The area bounded by Metropolitan Avenue; Union Avenue; Conselyea Street; Wood Point Road; Frost Street; Morgan Avenue; Meserole Street; Bushwick Avenue; Flushing Avenue; Union Avenue; Division Avenue; and the East River.
BEDFORD-STUYVESANT: The area bounded by Myrtle Avenue; Broadway; Ralph Avenue; Atlantic Avenue; and Nostrand Avenue.
BUSHWICK: The area bounded by Flushing Avenue; Cypress Avenue; Menahan Street; St. Nicholas Avenue; Gates Avenue; Wyckoff Avenue; Eldert Street; Irving Avenue; Chauncey Street; Central Avenue; property line of the Cemetery of the Evergreens; Conway Street; and Broadway.
EAST-NEW YORK: The area bounded by Jamaica Avenue; Elderts Lane; Atlantic Avenue; Fountain Avenue; New Lots Avenue; and Sheffield Avenue.
SOUTH BROOKLYN (A): The area bounded by The Buttermilk Channel; Congress Street; Hicks Street; Hamilton-Gowanus Parkway; the Gowanus Canal; and the Gowanus Bay.
SOUTH BROOKLYN (B): The area bounded by Fourth Avenue; Pacific Street; Flatbush Avenue; Sixth Avenue; and 15th Street.
SUNSET PARK: The area bounded by the Upper New York Bay; the Gowanus Bay; 15th Street; Prospect Park S.W.; Coney Island Avenue; Caton Avenue; Fort Hamilton Parkway; 37th Street; Eighth Avenue; Long Island Railroad right of way; Gowanus Expressway; 64th Street; Shore Parkway; and the Long Island Railroad right of way.
CROWN HEIGHTS: The area bounded by Pacific Street; Vanderbilt Avenue; Atlantic Avenue; Ralph Avenue; East New York Avenue; Utica Avenue; Winthrop Street; Flatbush Avenue; Parkside Avenue; Ocean Avenue; Empire Boulevard; Washington Avenue; Eastern Parkway; Grand Army Plaza; and Flatbush Avenue.
CONEY ISLAND: The area bounded by the Coney Island Creek; Stillwell Avenue; the Boardwalk West; and West 37th Street.
FLATBUSH: The area bounded by Parkside Avenue; Flatbush Avenue; Winthrop Street; New York Avenue; Clarendon Road; East 31st Street; Newkirk Avenue; Nostrand Avenue; Foster Avenue; New York Avenue; Avenue H; Flatbush Avenue; Avenue K; and Coney Island Avenue.
EAST FLATBUSH: The area bounded by Clarkson Avenue; Utica Avenue; East New York Avenue; East 98th Street; Church Avenue; Ralph Avenue; Clarendon Road; and New York Avenue.
BROWNSVILLE: The area bounded by Broadway; Rockaway Avenue; Atlantic Avenue; East New York Avenue; Christopher Avenue; Glenmore Avenue; Powell Street; Sutter Avenue; Van Sinderen Avenue; Dumont Avenue; Junius Street; Livonia Avenue; Stone Avenue; Linden Boulevard; Rockaway Avenue; Hegeman Avenue; Hopkinson Avenue; Riverdale Avenue; East 98th Street; East New York Avenue; Ralph Avenue; Atlantic Avenue; and Saratoga Avenue.
AREAS IN THE COUNTY OF NEW YORK (MANHATTAN):
LOWER EAST SIDE: The area bounded by East 14th Street; the East River; Delancey Street; Chrystie Street; East Houston Street; and Avenue A.
MANHATTAN VALLEY: The area bounded by Cathedral Parkway (West 110th Street); Central Park West; West 100th Street; and Broadway.
EAST HARLEM: The area bounded by East 142nd Street; the Harlem River; East 96th Street; and Fifth Avenue.
CENTRAL HARLEM: The area bounded by West 145th Street; the Harlem River; Fifth Avenue; Cathedral Parkway (West 110th Street); Morningside Avenue; West 123rd Street; St. Nicholas Avenue; West 141st Street; and Bradhurst Avenue.
HAMILTON HEIGHTS: The area bounded by West 155th Street; Bradhurst Avenue; West 141st Street; Convent Avenue; West 140th Street; Amsterdam Avenue; West 133rd Street; and Riverside Drive.
WASHINGTON HEIGHTS: The area bounded by the Harlem River; Teunissen Place; West 230th Street; Marble Hill Lane; the Harlem River; West 155th Street; and the Hudson River.
AREAS IN THE COUNTY OF QUEENS:
HALLETS POINTS: The area bounded by the East River-East Channel, Hallets Cove and Pot Cove; Hoyt Avenue South; 21st Street; 31st Avenue; Vernon Boulevard; and 35th Avenue.
JACKSON HEIGHTS-CORONA-EAST ELMHURST: The area bounded by Grand Central Parkway; Long Island Railroad right of way; 110th Street; Corona Avenue; Long Island Expressway; Junction Boulevard; Roosevelt Avenue; and Brooklyn-Queens Expressway East.
RIDGEWOOD: The area bounded by Grand Avenue; Rust Street; 59th Drive; 60th Street; Bleecker Street; Forest Avenue; Myrtle Avenue; the Long Island Railroad right of way; and Queens-Brooklyn boundary line.
JAMAICA SOUTH: The area bounded by the Long Island Railroad right of way; New York Boulevard; Southern Parkway (Sunrise Highway) and Van Wyck Expressway.
FAR ROCKAWAY: The area bounded by the Jamaica Bay-Mott Basin; Queens-Nassau boundary line; Far Rockaway Beach; Beach 32nd Street; and Norton Drive.
AREAS IN THE COUNTY OF RICHMOND (STATEN ISLAND):
PORT RICHMOND: The area bounded by the Kill Van Kull; Jewett Avenue and its prolongation; Forest Avenue; and the Willow Brook Expressway.
NEW BRIGHTON: The area bounded by the Kill Van Kull; Westervelt Avenue; Brook Street; Castleton Avenue; and North Randall Avenue and its prolongation.
STAPLETON: The area bounded by Victory Boulevard; the Upper New York Bay; Vanderbilt Avenue; Van Duzer Street; Cebra Avenue; and St. Pauls Avenue.
FOX HILLS: The area bounded by Vandervilt Avenue; the Upper New York Bay; the Staten Island Rapid Transit Railway right of way; and the Staten Island Expressway.
§ 6-01 Scope; Construction; Definitions.
(a) Scope of rules. This chapter governs the grant of tax exemption pursuant to § 421-a of the Real Property Tax Law of the State of New York, including the procedure for filing an application for tax exemption and the issuance of Preliminary and Final Certificates of Eligibility by the Office of Development of the Department of Housing Preservation and Development. Upon issuance of the Certificate of Eligibility, the calculation and implementation of the tax exemption are under the jurisdiction of the Department of Finance.
Act. “Act” shall mean § 421-a of the Real Property Tax Law, as amended.
Adjusted monthly rent. “Adjusted monthly rent” shall mean the rent payable per month as provided in the first effective lease upon initial occupancy of a rental dwelling unit of a multiple dwelling after completion of construction assisted by exemption under the Act, not inclusive of charges for parking or electricity, gas, cooking fuel and other utilities other than heat and hot water.
Administrative Code. “Administrative Code” shall mean the Administrative Code of the City of New York.
Affordable units. “Affordable units” shall mean units created and rented in accordance with 28 RCNY § 6-08.
Aggregate floor area. “Aggregate floor area” shall mean the sum of the gross horizontal areas of all of the floors of a dwelling or dwellings and accessory structures on a lot measured from the exterior faces of exterior walls or from the center line of party walls.
Annual schedule of reasonable costs. “Annual schedule of reasonable costs” shall mean the amounts determined by the Department to be reasonable for the maintenance and operation of a multiple dwelling in such categories and classifications attached to these rules as Appendix A.
Certificate of Eviction. “Certificate of Eviction” shall mean a certificate of eviction granted by the city rent agency pursuant to § 26-408 of the Administrative Code.
Commencement of construction. “Commencement of construction” shall mean the date upon which excavation and the construction of initial footings and foundations commences in good faith. An architect or professional engineer licensed in the State of New York shall certify that such construction commenced on such date and that such construction was thereafter completed without undue delay. Notwithstanding the foregoing, construction shall not commence prior to issuance by the Department of Buildings of either (i) a building or alteration permit for the construction of an entirely new multiple dwelling, the footprint of which consisted entirely of vacant and unimproved land upon such date, or (ii) an alteration permit for the construction of a new multiple dwelling above, and on an entirely separate tax lot from, one or more existing structures which are to be retained, provided that only the floor area attributable to the new multiple dwelling, and any eligible commercial, community facility or accessory use space within such new structure shall be eligible for benefits under the Act. Any such new multiple dwelling shall comply with all other applicable statutory and regulatory requirements.
Commissioner. “Commissioner” shall mean the Commissioner of the Department of Housing Preservation and Development, or his or her designee, or the chief executive officer of any successor agency thereto authorized to administer these rules.
Completion of construction. “Completion of construction” shall mean the date upon which either a Temporary Certificate of Occupancy is issued for all residential areas in the multiple dwelling or a Permanent Certificate of Occupancy is issued for the entire building.
Construction. “Construction” shall mean the construction of a new building which is a Class A multiple dwelling.
Covered Project. “Covered Project” shall mean a “covered project” as defined in subparagraph (i) of paragraph (a) of subdivision six of § 421-a of the Real Property Tax Law. For purposes of clause (B) of such subparagraph, two or more buildings shall be considered part of one contiguous development if such buildings are located on tax lots existing on or after June 21, 2005 that (1) are adjacent for at least ten linear feet, or (2) but for the intervention of streets, sidewalks or street intersections, would be adjacent for at least ten linear feet. All tax lots apportioned from such tax lots shall be deemed part of one contiguous development.
Demolished. “Demolished” shall mean the total destruction of a building or structure by razing or otherwise.
Department. “Department” shall mean the Department of Housing Preservation and Development of the City of New York or any successor agency or department thereto.
Department of Buildings. “Department of Buildings” shall mean the Department of Buildings of the City of New York or any successor agency or department thereto.
Eligible debt-financed project. “Eligible debt-financed project” shall mean a project that may be encumbered by a lien or mortgage, where (A) such project is not obtaining low income housing tax credits pursuant to § 42(b)(1)(A) of the Internal Revenue Code of 1986, as amended (nine percent (9%) reservation), (B) any lien or mortgage encumbering such project provides that it is expressly subject and subordinate to the Written Agreement entered into with the Department, and (C) the average household income of the units in such project does not exceed eighty percent (80%) of median income.
Floor area of commercial, community facilities, and accessory use space. “Floor area of commercial, community facilities, and accessory use space” shall mean the gross horizontal areas of all the floors or any portion thereof of a multiple dwelling or dwellings and accessory structures or spaces on a lot measured from the exterior faces of exterior walls of commercial or community facilities or accessory uses as such uses are defined in the Zoning Resolution; (See Article 1, Chapter 2). Notwithstanding the foregoing, accessory use space shall not include (a) parking areas which are not part of the building such as uncovered outdoor parking areas and open space beneath a building (including access roads), (b) for properties for which a final certificate of eligibility is issued on or after November 3, 1995, accessory parking space located not more than twenty-three feet above the curb level, (c) for properties for which a final certificate of eligibility is issued on or after May 8, 2013, accessory off-street parking spaces located not more than twenty-three feet above the curb level which (i) are located in the Manhattan Core, as defined in Section 12-10 of the Zoning Resolution, and (ii) meet the requirements of Section 13-21 of the Zoning Resolution.
Geographic exclusion area. “Geographic exclusion area” shall mean that area of Manhattan described in 28 RCNY § 6-02(c)(10).
Hotel. “Hotel” shall mean (i) any Class B multiple dwelling, as such term is defined in the Multiple Dwelling Law, (ii) any structure or part thereof containing living or sleeping accommodations which is used or intended to be used for transient occupancy, (iii) any apartment hotel or transient hotel as defined in the Zoning Resolution, or (iv) any structure or part thereof which is used to provide short term rentals or owned or leased by an entity engaged in the business of providing short term rentals. For purposes of this definition, a lease, sublease, license or any other form of rental agreement for a period of less than six months shall be deemed to be a short term rental. Notwithstanding the foregoing, a structure or part thereof owned or leased by a not-for-profit corporation for the purpose of providing governmentally funded emergency housing shall not be considered a hotel for purposes of this chapter.
Low and moderate income. “Low and moderate income” shall mean a household income not exceeding 100 percent of median income. For purposes of this chapter, low income households shall be deemed to be those at 60 percent or less of median income and moderate income households shall be those between 60 and 100 percent of median income, provided, however, that the average household income in any group of affordable units shall not exceed 80 percent of median income.
Median income. “Median income” shall be calculated in accordance with the regulations of the United States Department of Housing and Urban Development governing eligibility for occupancy as a lower income family, by size of family, in the metropolitan statistical area, which includes the City of New York, for purposes of § 8 of the United States Housing Act of 1937, as amended.
Multiple dwelling or building. “Multiple dwelling” or “building” shall mean a dwelling which is, or is to be, lawfully occupied as the residence or home of three or more families living independently of one another, whether individual dwelling units herein are rented or owned as a cooperative or condominium.
Negotiable Certificate. “Negotiable Certificate” shall mean a document issued by the Department which certifies that the bearer is entitled to the benefits of the Act for a specified number of units within the geographic exclusion area, provided that all program requirements have been met.
Office. “Office” shall mean the Office of Tax Incentive Programs of the New York City Department of Housing Preservation and Development or any successor thereto.
Prior assessed valuation. “Prior assessed valuation” shall mean the taxable assessed valuation in effect pursuant to § 1805-(3) of the Real Property Tax Law, exclusive of any exemption, of a tax lot (land and improvements) during the tax year preceding the tax year of Commencement of Construction.
Program for the development of affordable housing. “Program for the development of affordable housing” shall mean housing which complies with the requirements of a grant, loan or subsidy from any federal, state or local agency or instrumentality to provide no less than twenty percent of its units as units affordable to and occupied by or affordable to and available for occupancy by individuals or families whose incomes do not exceed a specified limit and which has been approved by the commissioner pursuant to this chapter.
Public project. “Public project” shall mean a building developed with substantial governmental assistance or a building developed pursuant to a regulatory agreement with a Federal, state or local agency or instrumentality requiring the development of affordable housing.
Residential building. “Residential building” shall mean a structure or part thereof lawfully occupied in whole or part as the home, residence or sleeping place of one or more persons.
Room Count. “Room Count” shall be calculated in the following manner: Each dwelling unit with at least one room which either (i) contains no cooking facilities and measures at least one hundred and fifty (150) square feet, or (ii) contains cooking facilities and measures at least two hundred and thirty (230) square feet, shall count as two and one-half rooms. Every other room in the dwelling unit separated by either walls or doors, including bedrooms, shall count as an additional room, plus one-half room for a balcony, provided, however, that kitchens, cooking facilities, bathrooms or corridors shall not count as an additional room. To be included in the calculation of “room count,” a room must meet the requirements of habitability as provided in Administrative Code §§ 27-746 and 27-751.
Single room occupancy. “Single room occupancy” shall mean occupancy in a multiple dwelling by one or more persons of a room or rooms either without a lawful kitchen or kitchenette or without a lawful bathroom or without separate means of egress for occupants thereof to the public areas of the multiple dwelling.
Substantial governmental assistance. “Substantial governmental assistance” shall mean grants, loans or subsidies provided to any building or buildings on the same zoning lot or, if only a portion of such zoning lot is being granted benefits pursuant to the Act, to any building or buildings on such portion of such zoning lot, by any federal, state or local agency or instrumentality pursuant to a program for the development of affordable housing, provided that (1) as determined by the commissioner, each of the buildings on such zoning lot or portion thereof is part of the same project, (2) each of the buildings on such zoning lot or portion thereof is part of the same application for benefits pursuant to the Act, (3) the periods of construction and final real property tax exemption benefits granted pursuant to the Act for all of the buildings on such zoning lot or portion thereof being granted benefits pursuant to the Act shall commence simultaneously, and (4) no final real property tax exemption benefits shall be granted pursuant to the Act for any buildings on such zoning lot or any portion thereof being granted benefits pursuant to the Act until receipt of a certificate of occupancy or a temporary certificate of occupancy for the residential portions of the building or buildings on such zoning lot containing the units affordable to and occupied by or affordable to and available for occupancy by individuals or families whose incomes do not exceed a specified amount. Such subsidies may include allocations of low income housing tax credits and, in the discretion of the Department, below market sales or sales subject to evaporating purchase money mortgages by a federal, state or local agency or instrumentality, but shall not include permanent financing provided through the State of New York Mortgage Agency, purchase money mortgages, or mortgage insurance.
Written Agreement. “Written Agreement” shall mean a document issued by the Department pursuant to 28 RCNY § 6-08(l).
Zoning lot. “Zoning lot” shall mean a “zoning lot” as defined in § 12-10 of the Zoning Resolution.
Zoning Resolution. “Zoning Resolution” shall mean the Zoning Resolution of the City of New York, as amended.
§ 6-02 Eligibility.
(a) Eligibility. Partial tax exemption will only be granted to multiple dwellings which are eligible projects and which meet all the eligibility requirements of this section.
(1) new multiple dwellings located outside the geographic exclusion area containing not less than three (3) dwelling units provided construction is commenced before December 31, 2007;
(2) new multiple dwellings located in the geographic exclusion area if the commencement of construction occurred on or before November 29, 1985 and if such building is completed no later than December 31, 2000 and only to the extent the building receives a permanent Certificate of Occupancy indicating that it was built pursuant to architectural, structural, and mechanical plans approved by the Department of Buildings on or before November 29, 1985; and
(3) new multiple dwellings located in the geographic exclusion area if the commencement of construction occurred after November 29, 1985 and before December 28, 2010, only if construction is carried out with substantial governmental assistance or if affordable units are created in accordance with the requirements of 28 RCNY § 6-08.
(1) Any building or structure which is receiving tax exemption and/or tax abatement under any other provision of state or local law for new construction, conversion or rehabilitation, including but not limited to, §§ 488-a and 489 of the Real Property Tax Law and §§ 11-243 and 11-244 of the Administrative Code, and Article 16 of the General Municipal Law; provided however, that if a building or structure is divided into condominium units, and a condominium unit within the building is entitled to receive permanent tax exemption under any statute under which exemption is granted based on the exempt status of the owner, the granting of such an exemption shall not prevent the remaining condominium unit or units from receiving § 421-a exemption.
(2) Any multiple dwelling which results from the conversion or rehabilitation of any building or structure;
(3) Any building or portion thereof which after the completion of construction is used as a hotel, as that term is defined herein;
(4) Any building or portion thereof which after the completion of construction is used for single room occupancy, as that term is defined herein;
(5) Any multiple dwelling situated on land which is mapped as a public park provided, however, that this exclusion from eligibility for exemption shall not apply to any land which has been mapped as a public park but which, for a period of ten years or more after the date of such mapping, has not been acquired by the state or the city in which such land is located and with respect to which land the Department of Parks and Recreation has determined that such land is not required for public park purposes, and that such department has no intention of acquiring such land and that no funds have been allocated for such purpose;
(6) Any multiple dwelling situated on land which was utilized for ten or more consecutive years immediately prior to October first, nineteen hundred seventy-one as a “private park” as hereinafter defined. A private park is a privately owned zoning lot in a densely developed area having a minimum size of four thousand square feet, free of all developments and containing only trees, grass, benches, walkways and passive recreational facilities including structures incidental thereto which has been used and maintained during said period for such passive recreational activity by the general public without charge with the consent and participation of the owner thereof;
(7) Any multiple dwelling, or portion thereof, the construction of which commenced on or after November twenty-ninth, nineteen hundred eighty-five and which is located within any district in the county of New York where a maximum base floor area ratio, as that term is defined in the Zoning Resolution, of fifteen or greater was permitted as of right by provisions of such resolution in effect on April fourteenth, nineteen hundred eighty-two; provided, however, that this rule shall not be applicable to the extent to which such restriction is modified or repealed by State or local law.
(8) Any multiple dwelling the footprint of which is located in whole or in part within any area in the county of New York designated by the Zoning Resolution in effect on the date of commencement of construction as either a manufacturing district or a mixed-use district except to the extent that such multiple dwellings in a mixed-use district could be constructed for residential purposes, as of right, pursuant to the Zoning Resolution, unless construction actually commenced prior to January first, nineteen hundred eighty-two; this restriction is in accordance with City policy of preservation of these districts for mainly non-residential purposes: provided, however, that this restriction shall not apply to multiple dwellings for which construction commenced after the effective date of these rules.
(9) For purposes of paragraphs (7) and (8) above, the obtaining of a variance or special permit to allow residential construction in a manufacturing or mixed-used district shall not render the newly constructed Class A multiple dwelling eligible for tax benefits under the Act. In addition, to the extent the zoning lot of a project includes any building or structure located in such non-eligible district that is not to be demolished, the partial tax exemption shall be reduced by an amount equal to the area of the portion of the zoning lot which is located in such ineligible area.
(10) Except for multiple dwellings qualifying for the benefits of the Act pursuant to 28 RCNY § 6-08:
(i) any project commenced, as that term is defined herein, after November 29, 1985 and before March 7, 2006 within the geographic exclusion area, bounded and described as follows: Beginning at the intersection of the bulkhead line in the Hudson River and 96th Street extended; thence easterly to 96th Street and continuing along 96th Street to its easterly terminus; thence easterly to the intersection of 96th Street extended and the bulkhead line in the East River; thence southerly along said bulkhead line to the intersection of said bulkhead line and 14th Street extended; thence westerly to 14th Street and continuing along 14th Street to Broadway; thence southerly along Broadway to Houston Street; thence westerly along Houston Street to Thompson Street; thence southerly along Thompson Street to Spring Street; thence westerly along Spring Street to Avenue of the Americas; thence northerly along Avenue of the Americas to Vandam Street; thence westerly along Vandam Street to Varick Street; thence northerly along Varick Street to Houston Street; thence westerly along Houston Street and continuing to its westerly terminus; thence westerly to the intersection of Houston Street extended and the bulkhead line in the Hudson River; thence northerly along said bulkhead line to the intersection of said bulkhead line and 11th Avenue extended; thence northerly to 11th Avenue and continuing along 11th Avenue to 14th Street; thence easterly along 14th Street to 10th Avenue; thence northerly along 10th Avenue to 28th Street; thence easterly along 28th Street to 9th Avenue; thence northerly along 9th Avenue to 33rd Street; thence easterly along 33rd Street to 8th Avenue; thence northerly along 8th Avenue to 34th Street; thence easterly along 34th Street to 7th Avenue; thence northerly along 7th Avenue to 41st Street; thence westerly along 41st Street and continuing to its westerly terminus; thence westerly to the intersection of 41st Street extended and the bulkhead line in the Hudson River; thence northerly along said bulkhead line to the place of beginning;
(ii) any project commenced, as that term is defined herein, on or after March 7, 2006 and before May 11, 2007 within the geographic exclusion area, bounded and described as follows: Beginning at the intersection of the bulkhead line in the Hudson River and 96th Street extended; thence easterly to 96th Street and continuing along 96th Street to its easterly terminus; thence easterly to the intersection of 96th Street extended and the bulkhead line in the East River; thence southerly along said bulkhead line to the intersection of said bulkhead line and 14th Street extended; thence westerly to 14th Street and continuing along 14th Street to Broadway; thence southerly along Broadway to Houston Street; thence westerly along Houston Street to Thompson Street; thence southerly along Thompson Street to Spring Street; thence westerly along Spring Street to Avenue of the Americas; thence northerly along Avenue of the Americas to Vandam Street; thence westerly along Vandam Street to Varick Street; thence northerly along Varick Street to Houston Street; thence westerly along Houston Street and continuing to its westerly terminus; thence westerly to the intersection of Houston Street extended and the bulkhead line in the Hudson River; thence northerly along said bulkhead line to the intersection of said bulkhead line and 11th Avenue extended; thence northerly to 11th Avenue and continuing along 11th Avenue to 14th Street; thence easterly along 14th Street to 10th Avenue; thence northerly along 10th Avenue to 30th Street; thence westerly along 30th Street to 11th Avenue; thence northerly along 11th Avenue to 41st Street; thence westerly along 41st Street and continuing to its westerly terminus; thence westerly to the intersection of 41st Street extended and the bulkhead line in the Hudson River; thence northerly along said bulkhead line to the place of beginning; or
(iii) any project commenced, as that term is defined herein, on or after May 11, 2007 and before July 1, 2008 within the geographic exclusion area, bounded and described as follows: Beginning at the intersection of the bulkhead line in the Hudson River and 96th Street extended; thence easterly to 96th Street and continuing along 96th Street to its easterly terminus; thence easterly to the intersection of 96th Street extended and the bulkhead line in the East River; thence southerly along said bulkhead line to the intersection of said bulkhead line and 14th Street extended; thence westerly to 14th Street and continuing along 14th Street to Broadway; thence southerly along Broadway to Houston Street; thence westerly along Houston Street to Thompson Street; thence southerly along Thompson Street to Spring Street; thence westerly along Spring Street to Avenue of the Americas; thence northerly along Avenue of the Americas to Vandam Street; thence westerly along Vandam Street to Varick Street; thence northerly along Varick Street to Houston Street; thence westerly along Houston Street and continuing to its westerly terminus; thence westerly to the intersection of Houston Street extended and the bulkhead line in the Hudson River; thence northerly along said bulkhead line to the intersection of said bulkhead line and 30th Street extended; thence easterly along 30th Street to 11th Avenue; thence northerly along 11th Avenue to 41st Street; thence westerly along 41st Street and continuing to its westerly terminus; thence westerly to the intersection of 41st Street extended and the bulkhead line in the Hudson River; thence northerly along said bulkhead line to the place of beginning; or
(iv) any project commenced on or after July 1, 2008 within the geographic exclusion area as defined pursuant to 28 RCNY § 6-09 except as otherwise provided in such 28 RCNY § 6-09.
(1) Only the ten year exemption is available to buildings located within the geographic exclusion area described in 28 RCNY § 6-02(c)(10), above, and such buildings shall be eligible to receive such benefits only if each building meets one of the following conditions:
(i) construction is carried out with substantial governmental assistance, or
(ii) the Department has imposed a requirement or has certified pursuant to 28 RCNY § 6-08 that 20 percent (20%) of the units are affordable to persons of low and moderate income, or
(iii) pursuant to an agreement with the Department, in conformity with the requirements of 28 RCNY § 6-08, housing units affordable to persons of low and moderate income are either newly constructed or substantially rehabilitated off-site.
(2) The ten year exemption is available to buildings located outside the geographic exclusion area but in Manhattan on tax lots south of or adjacent to either side of 110th Street, the construction of which commenced on or after July 1, 1985, except that the fifteen year exemption shall be available to such buildings if:
(i) construction is carried out with substantial governmental assistance; or
(ii) the Department has imposed a requirement or has certified pursuant to herein that 20 percent (20%) of the units are affordable to persons of low and moderate income.
(3) The fifteen year exemption is available to buildings located in the boroughs of the Bronx, Brooklyn, Queens, Staten Island and in Manhattan north of 110th Street, the construction of which commenced on or after July 1, 1985, unless such multiple dwellings are eligible for the twenty-five year exemption described in (5) below.
(4) The twenty year exemption is available in the borough of Manhattan for buildings on tax lots now existing or hereafter created south of or adjacent to either side of one hundred tenth street which commenced construction after July 1, 1992 and before December 28, 2010, only if:
(i) construction is carried out with substantial governmental assistance; or
(ii) the Department has imposed a requirement or has certified pursuant to 28 RCNY § 6-08 that 20 percent (20%) of the units are affordable to families of low and moderate income.
(5) The twenty-five year exemption is available to buildings located in the boroughs of the Bronx, Brooklyn, Queens, Staten Island or Manhattan north of 110th Street, the construction of which commenced on or after July 1, 1985, if the multiple dwelling:
(i) is located in one of the following areas:
(A) Neighborhood Preservation Program Areas as determined by the Department as of June 1, 1985, or
(B) Neighborhood Preservation Areas as determined by the New York City Planning Commission as of June 1, 1985, or
(C) an area eligible for mortgage insurance provided by the Rehabilitation Mortgage Insurance Corporation (REMIC) as of May 1, 1992, or
(D) an area receiving funding for a neighborhood preservation project pursuant to the Neighborhood Reinvestment Corporation Act (42 U.S.C. §§ 180 et seq.) as of June 1, 1985, or
(ii) meets one of the following conditions:
(A) is constructed with substantial governmental assistance, or
(B) is a building where the Department has imposed a requirement or has certified that 20 percent (20%) of the units contained in that multiple dwelling are affordable to persons of low and moderate income, exclusive of those units created pursuant to 28 RCNY § 6-08.
(1) It shall contain at all times not less than the number of dwelling units specified in 28 RCNY § 6-02(b)(1). A multiple dwelling containing the requisite number of dwelling units may include: garden type maisonette dwelling projects containing a series of attached dwelling units which are provided as a group collectively with all essential services such as, but not limited to, water supply and house sewers, and which units are located on a site or plot under common ownership, including ownership as a condominium; and buildings erected at the same time with common exterior walls, provided that in each case such buildings are operated as a unit under a single ownership, notwithstanding that Certificates of Occupancy were issued by the Department of Buildings for separate portions thereof covering less than the requisite number of units.
(2) If a multiple dwelling contains more than one hundred dwelling units, not less than ten percent of the dwelling units in such multiple dwelling shall contain at least four and one-half rooms and, in addition, not less than fifteen percent shall contain at least three and one-half rooms. The number of rooms in a dwelling unit shall be computed in accordance with the definition of “room count” contained in subdivision (c) of 28 RCNY § 6-01. Those units consisting of four and one-half rooms or more, to the extent that they comprise ten percent of all units in the multiple dwelling, shall not be included as part of the units which must contain three and one-half rooms, comprising a total of fifteen percent of all the units in the multiple dwelling. This room count requirement may be waived in writing at the discretion of the Department:
(i) where the multiple dwelling is to provide housing for the elderly; or
(ii) upon the filing of adequate documentation from which the Department determines that compliance with the room count requirement would impose an undue and unreasonable economic hardship. The necessity of alteration of existing construction shall not in itself be deemed such a hardship.
(3) If construction of a new multiple dwelling commences on or after August 1, 1981 and such construction takes place on land which, immediately prior to the commencement of construction, was improved with a residential building or buildings that have since been substantially demolished, and the new building or buildings contain more than twenty dwelling units, then such new building or buildings shall contain at least five dwelling units for each Class A dwelling unit in existence immediately prior to the demolition preceding construction. The calculation of the ratio of new to old units shall be made based on the entire site included in the 421-a application. For purposes of this paragraph, “immediately prior to the commencement of construction” shall be deemed to be a date which is one month prior to the commencement of construction.
(1) To be eligible for partial tax exemption, the land upon which an eligible project is located must have been vacant, predominantly vacant, under-utilized, or improved with a non-conforming use on the operative date. The operative date shall be:
(i) thirty-six months prior to the commencement of construction, if construction commences on or after August 1, 1981; or
(ii) October 1, 1971, if construction commenced before August, 1981.
(2) If only part of the land upon which an otherwise eligible project is located satisfies the requirement set forth in paragraph (1), above, or if only part of a building or structure on said land would satisfy that requirement, partial tax exemption shall be available in accordance with the following formula:
(i) If fifty-one percent (51%) or more of the area of the land satisfies the requirement set forth above, then the partial tax exemption shall be reduced by an amount equal to the percent of the area of the site which does not satisfy that requirement;
(ii) If less than fifty-one percent (51%) of the area of the land satisfies the requirement set forth above, then the entire site is ineligible for partial tax exemption hereunder.
(3) Definitions. For the purpose of this subdivision (f), the following definitions are applicable:
Actual Assessed Valuation. “Actual assessed valuation” shall mean the assessed valuation of a tax lot without reference to § 1805(3) of the Real Property Tax Law.
Land improved with a non-conforming use. “Land improved with a nonconforming use” is defined in the same manner as that term was defined in the Zoning Resolution in effect on the operative date.
Predominantly vacant. “Predominantly vacant” land is a plot of land on which not more than fifteen percent (15%) of the lot area contained enclosed, permanent, improvements. Fences, sheds, garage attendant’s booths, pier bulkheads, lighting fixtures and similar items, or any improvement having an Actual Assessed Value of less than $2,000 shall not constitute an enclosed, permanent improvement.
Under-utilized. “Under-utilized” land is land or space which was under-utilized by virtue of the fact that:
(A) It was improved with a residential building or buildings
(a) whose room count in occupied dwelling units numbered not more than seventy percent of the room count in dwelling units in the new building or buildings; or
(b) whose aggregate floor area was no greater than seventy percent of the aggregate floor area of the new building or buildings.
(c) provided, however, that buildings commenced prior to the effective date of these rules shall be governed by the rules in effect at the time of commencement.
(B) It consisted of air rights above a public roadway, waterway, railroad right of way, public buildings, or other similar property used by the general public, provided that the public building was used by the general public on the operative date and continues to be so used and classified after the completion of the eligible construction, and provided further that “public building” shall mean structures or parts of structures in which persons congregate for civic, political, educational, religious or recreational purposes, or in which persons are harbored to receive medical, charitable or other care or treatment, or in which persons are held or detained by reason of public or civic duty, or for correctional purposes, including among others, court houses, schools, colleges, libraries, museums, exhibition buildings, lecture halls, churches, assembly halls, lodge rooms, club houses with more than five sleeping rooms, dance halls, theatres, bath houses, hospitals, asylums, armories, fire houses, police stations, jails and passenger depots; or
(C) Construction commenced on or after November 29, 1985 and before May 12, 2000 on land that was improved with a non-residential building or buildings
(a) each of which contained:
(1) no more than the permissible floor area ratio for non-residential buildings in the zoning district in question, and
(2) a floor area ratio which was twenty percent (20%) or less of the maximum floor area ratio for residential buildings for such zoning district, or
(b) each of which had an actual assessed valuation equal to or less than twenty percent (20%) of the actual assessed valuation of the land on which the building or buildings were situated, or (c) which, by reason of the building’s configuration or substantial structural defects not brought about by deferred maintenance practices or intentional conduct, could no longer be functionally or economically utilized, on the operative date, in the capacity in which it was formerly utilized.
(D) Except as provided in subparagraph (E) of this paragraph, commencement of construction occurred on or after May 12, 2000 and before October 30, 2002 on land that was improved with a non-residential building or buildings
(a) each of which contained:
(1) no more than the permissible floor area ratio for non-residential buildings in the zoning district in question, and
(2) a floor area ratio which was seventy-five percent (75%) or less of the maximum floor area ratio for residential buildings for such zoning district, or
(b) each of which had an actual assessed valuation equal to or less than seventy-five percent (75%) of the actual assessed valuation of the land on which the building or buildings were situated, or
(c) which, by reason of the building’s configuration, or substantial structural defects not brought about by deferred maintenance practices or intentional conduct, could no longer be functionally or economically utilized, on the operative date, in the capacity in which it was formerly utilized.
(E) Commencement of construction occurred on or after May 12, 2000 and before October 30, 2002 on a tax lot now existing or hereafter created which is located south of or adjacent to either side of 110th Street in the borough of Manhattan and on land that was improved with a non-residential building or buildings
(a) each of which contained:
(1) no more than the permissible floor area ratio for non-residential buildings in the zoning district in question, and
(2) a floor area ratio which was fifty percent (50%) or less of the maximum floor area ratio for residential buildings in such zoning district, or
(b) each of which had an actual assessed valuation equal to or less than fifty percent (50%) of the actual assessed valuation of the land on which the building or buildings were situated, or
(c) which, by reason of the building’s configuration, or substantial structural defects not brought about by deferred maintenance practices or intentional conduct, could no longer be functionally or economically utilized, on the operative date, in the capacity in which it was formerly utilized.
(F) Except as provided in subparagraph (G) of this paragraph, commencement of construction occurred on or after October 30, 2002 on land that was improved with a nonresidential building or buildings
(a) each of which contained:
(1) no more than the permissible floor area ratio for non-residential buildings in the zoning district in question, and
(2) (i) a floor area ratio which was seventy-five percent (75%) or less of the maximum floor area ratio for residential buildings in such zoning district, or
(ii) if the land was not zoned to permit residential use on the operative date, had a floor area ratio which was seventy-five percent (75%) or less of the floor area ratio of the residential building which replaces such non-residential building; or
(b) each of which had an actual assessed valuation equal to or less than seventy-five percent (75%) of the actual assessed valuation of the land on which the building or buildings were situated, or
(c) which, by reason of the building’s configuration, or substantial structural defects not brought about by deferred maintenance practices or intentional conduct, could no longer be functionally or economically utilized, on the operative date, in the capacity in which it was formerly utilized.
(G) Commencement of construction occurred on or after October 30, 2002 on a tax lot now existing or hereafter created which is located south of or adjacent to either side of 110th Street in the borough of Manhattan and on land that was improved with a non-residential building or buildings
(a) each of which contained:
(1) no more than the permissible floor area ratio for non-residential buildings in the zoning district in question, and
(2) (i) a floor area ratio which was fifty percent (50%) or less of the maximum floor area ratio for residential buildings in such zoning district, or
(ii) if the land was not zoned to permit residential use on the operative date, had a floor area ratio which was fifty percent (50%) or less of the floor area ratio of the residential building which replaces such non-residential building; or
(b) each of which had an actual assessed valuation equal to or less than fifty percent (50%) of the actual assessed valuation of the land on which the building or buildings were situated, or
(c) which, by reason of the building’s configuration, or substantial structural defects not brought about by deferred maintenance practices or intentional conduct, could not longer be functionally or economically utilized, on the operative date, in the capacity in which it was formerly utilized.
Vacant. “Vacant” land is land, including land under water, which contains no enclosed, permanent improvement. Fences, sheds, garage attendant’s booths, piers, bulkheads, lighting fixtures, and similar items, or any improvement having an Actual Assessed Value of less than $2,000 shall not constitute an enclosed, permanent improvement.
(1) If a building which, on December 31, 1974, contained more than twenty-five occupied dwelling units administered under the City Rent and Rehabilitation Law, the Rent Stabilization Law of nineteen hundred sixty-nine, or the Emergency Tenant Protection Act of nineteen hundred seventy-four, is displaced, or any unit therein is displaced, the new multiple dwelling will be eligible for partial tax exemption only if a Certificate of Eviction was issued for at least one dwelling unit in the displaced building. If only one unit is displaced as the result of eligible construction, the Certificate of Eviction must pertain to that displaced unit. Notwithstanding the foregoing, the sale, transfer or utilization of air rights over residential buildings which were not demolished shall not be construed as a displacement within the purview of this subdivision (g).
(2) Notwithstanding the provisions of any local law for the stabilization of rents in multiple dwellings or the Emergency Tenant Protection Act of 1974, the rents of a unit shall be fully subject to regulation under such local law or such Act, unless exempt under such local law or such act from regulation by reason of the cooperative or condominium status of the unit, for the entire period during which the property is receiving tax benefits pursuant to the Act, or for the period any such applicable local law or such Act is in effect, whichever is shorter. Thereafter, such rents shall continue to be subject to such regulation to the same extent and in the same manner as if this subdivision (g) had never applied thereto, except that for dwelling units in buildings completed, as that term is defined herein, on or after January 1, 1974, such rents shall be deregulated if:
(i) with respect to dwelling units located in multiple dwellings completed after January 1, 1974 such unit becomes vacant after the expiration of the lease for the unit in effect when such benefit period or applicable law or Act expires, provided, however, such unit shall not be deregulated if the Commissioner of the New York State Division of Housing and Community Renewal or a court of competent jurisdiction finds the unit became vacant because the owner thereof or any person acting on his or her behalf engaged in any course of conduct, including but not limited to, interruption or discontinuance of essential services which interfered with or disturbed or was intended to interfere with or disturb the comfort, repose, peace or quiet of the tenant in his use or occupancy of such unit, and that upon such finding in addition to being subject to any other penalties or remedies permitted by law, the owner of such unit shall be barred from collecting rent for such unit in excess of that charged to the tenant, if the tenant so desires, in which case the rent of such tenant shall be established as if such tenant had not vacated such unit, or compliance with such other remedy, including, but not limited to, all remedies provided for by the emergency tenant protection act of nineteen seventy-four for rent overcharge or failure to comply with any order of the Commissioner of the New York State Division of Housing and Community Renewal, as shall be determined by said Commissioner to be appropriate; provided, however, that if a tenant fails to accept any such offer of restoration of possession, such unit shall return to rent stabilization at the previously regulated rent.
(ii) with respect to dwelling units located in multiple dwellings with became subject to the rent stabilization provisions of the Act on or after July 1, 1984, the lease for the unit expires after such tax benefit period expires, provided that each lease and renewal thereof for such unit for the tenant entitled to a lease at the time of such deregulation contained a notice in at least twelve (12) point type informing such tenant that the unit shall be subject to deregulation upon the expiration of such benefit period and stated the approximate date on which such benefit period was expected to expire. If each lease and renewal thereof has not contained such notice, a unit covered by such lease shall be subject to subdivision (i) above even though it became subject to the rent stabilization provisions of the Act on or after July 1, 1984. This subdivision (ii) shall not apply to any unit in any multiple dwelling which was subject to the rent stabilization provisions of the Act prior to July 1, 1984, notwithstanding any contrary provision in any lease or renewal thereof.
(3) Notwithstanding paragraph (2) above, dwelling units in multiple dwellings owned as cooperatives or condominiums which are exempt from such provisions of law shall not be required to be subject to the provisions of law set forth in that paragraph (2) during the time period specified therein. Newly created dwelling units in a building for which a prospectus for condominium or cooperative formation has been submitted to the Attorney General at the time of application for benefits to the Office, shall not be required to be registered with the New York State Division of Housing and Community Renewal, provided that an affidavit has been filed with the Office stating that the sponsor will register the building and all units as they become occupied, with the New York State Division of Housing and Community Renewal within fifteen months from the date of issuance of a Final Certificate of Eligibility if a cooperative or condominium plan has not been declared effective by that time.
(4) The offering by the owner to all tenants in rental dwelling units in the multiple dwelling, of an initial lease of at least two years; unless the dwelling unit’s rent is regulated by local laws, such as § 26-401 of the Administrative Code, which do not provide for the offering of leases for fixed terms. This requirement shall not preclude a shorter lease where requested by the tenant, or where a lease of at least two years is specifically prohibited by the terms of a Department of Housing and Urban Development regulatory agreement for an insured subsidized project, or where, through foreclosure, title to a building eligible for partial tax exemption pursuant to the Act is held subsequently by the Department of Housing and Urban Development.
(5) No lease for dwelling units subject to the Rent Stabilization Law or Emergency Tenant Protection Act which are registered with the New York State Division of Housing and Community Renewal shall contain escalation clauses for real estate taxes or any other provisions for increasing the rent set forth in the lease other than permitting an increase in rent pursuant to an order of the New York State Division of Housing and Community Renewal or the Rent Guidelines Board; or an increase of 2.2 percent pursuant to 28 RCNY § 6-04(b).
§ 6-03 Local Community Planning Board Review.
(a) Submission of application to local community board. An applicant for partial tax exemption pursuant to the Act whose project contains more than twenty dwelling units shall send a complete copy of the application for a Preliminary Certificate of Eligibility and supporting papers by certified mail or hand delivery to the local Community Planning Board for the area in which such project is located within ten days of submission of the application to the Department. A copy of the receipt shall be hand delivered or mailed to the Department for annexation to the application no later than ten days after the date appearing on such receipt.
§ 6-04 Determination of Initial Rent; Rent Increases.
(a) Determining the initial adjusted monthly rent and the comparative adjusted monthly rent for rental dwelling units. No certification of eligibility shall be issued by the Department until the Department determines the initial adjusted monthly rent to be paid by tenants residing in rental dwelling units contained within the multiple dwelling. Except for affordable units, the initial adjusted monthly rent is determined in accordance with the provisions of paragraph (3) below.
(1) The total expenses of the multiple dwelling shall be determined by the Department in order to calculate the initial adjusted monthly rent. Total expenses shall mean the annual total of the following:
(i) An amount for the annual cost of operation and maintenance, as established pursuant to the Annual Schedule of Reasonable Costs; plus,
(ii) An amount for vacancies, contingency reserves and management fees as established pursuant to the Annual Schedule of Reasonable Costs; plus,
(iii) Projected real property taxes to be levied on the multiple dwelling and the land on which it is situated at the time of estimated initial occupancy; plus,
(iv) Fourteen percent of the total project cost, as determined pursuant to 28 RCNY § 6-05(b)(1)(i) and the Annual Schedule of Reasonable Costs, which amount will include debt service; less,
(v) The estimated annual income to be derived from any Floor Area of Commercial, Community Facilities, and Accessory Use Space in the multiple dwelling.
(2) The adjusted monthly rent per room shall be determined by the Department by dividing the total expenses as determined pursuant to paragraph (1) above by twelve (12) and then dividing that amount by the Room Count as defined in subdivision (c) of 28 RCNY § 6-01 of this chapter; i.e.,
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(3) The The initial adjusted monthly rent for each dwelling unit shall be determined by the Department by multiplying the adjusted monthly rent per room to be determined pursuant to paragraph (2) above by the Room Count, as defined in subdivision (c) of 28 RCNY § 6-01, of each rental dwelling unit. Adjustments to the initial adjusted monthly rent per room to be determined pursuant to paragraph (2) above by the Room Count, as defined in subdivision (c) of 28 RCNY § 6-01, of each rental dwelling unit. Adjustments to the initial adjusted monthly rent for any dwelling unit may be allowed by the Department provided that the total of the rentals charged in the multiple dwelling do not exceed the total expenses of such multiple dwelling, as determined pursuant to paragraph (1) above; i.e.,
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§ 6-05 Application Procedure; Documentation.
(a) Application forms. All prescribed forms and applications must be obtained from the Department of Housing Preservation and Development, Office of Tax Incentive Programs, 3rd Floor, 150 William Street, New York, New York 10038. All applications shall be submitted to the Department on such form or forms as shall be prescribed by the Department. Only applications complete in all detail shall be considered for a Certificate of Eligibility. All forms must be filled out fully and legibly by the applicant and shall be typewritten or inscribed in permanent ink.
(1) A sworn statement by the owner (if the owner is other than an individual, the statement must be certified by the chief executive officer or managing partner of the owner), together with certifications by certified public accountants, appraisers, engineers and architects where required by this chapter, attesting to the accuracy of information provided to the Department concerning the eligibility of a project under 28 RCNY § 6-02 and the initial adjusted monthly rent required by the Act for each rental dwelling unit contained within the multiple dwelling. This sworn statement shall include, as a minimum, a statement of the following:
(i) Total project cost of the newly constructed building and a breakdown of the costs:
(A) Land acquisition cost or purchase price shall be certified to by an independent certified public accountant or by an appraisal of value of the land and any improvements thereon prepared by an independent appraiser found to be qualified by the Department if the land was purchased more than two years prior to the date of the commencement of construction or in the event that the land was obtained by other than purchase; provided further that in the event the land is leased and not purchased, rent attributable to the development period shall be included in total project cost.
(B) Site preparation costs not covered by an appraisal in subparagraph (A) above shall be certified to by an affidavit from a licensed architect or engineer on a date not more than ninety days prior to the filing of an application for a Preliminary Certificate of Eligibility, and an estimate of the balance of such costs to be incurred prepared by such a licensed engineer or architect. The application for a Final Certificate of Eligibility shall contain a statement of all site preparation costs incurred, which shall be certified to by an independent certified public accountant. Site preparation costs may include, but are not limited to, costs expended to demolish structures. Site preparation costs may also include relocation expenses, which may be independently certified to by the owner or applicant;
(C) A good faith estimate of construction costs as well as an estimate prepared by a licensed engineer of any abnormal, unique or special foundation costs which may be incurred;
(D) An allowance for off-site costs, including but not limited to legal, engineering, and architectural fees, insurance, interest and taxes during construction, title and mortgage fees;
(E) Specific other amounts which would ordinarily and customarily be incurred in connection with the construction of an eligible project.
(ii) Compliance with eligibility requirements including:
(A) Statement of the conditions of the site as of thirty-six months prior to the commencement of construction, or as of October 1, 1971, as required by this chapter, along with sufficient documentation to demonstrate the conditions of the site to the satisfaction of the Department;
(B) A statement of the number of occupied dwelling units in existence on the site on December 31, 1974;
(C) A statement, if the construction is to include more than twenty dwelling units, that the building will provide no less than five Class A dwelling units for each Class A dwelling unit in existence on the site immediately prior to the commencement of new construction; as required by this chapter;
(D) A statement that the new multiple dwelling will contain not less than three dwelling units;
(E) A statement that not less than ten percent of the dwelling units in the new multiple dwelling will contain at least four and one-half rooms and that no less than fifteen percent of such dwelling units will contain at least three and one-half rooms, as determined pursuant to 28 RCNY § 6-02(d), if the multiple dwelling is to contain more than one hundred dwelling units, unless such requirements are waived in writing by the Department;
(F) The submission to the Department of one set of plans approved by the Department of Buildings, as evidenced by a seal of the Department of Buildings thereon or an architect’s affidavit that such plans are so approved.
(G) If construction commenced on or before November 29, 1985, sufficient documentation to demonstrate to the satisfaction of the Department the condition of the site on November 29, 1985.
(H) If construction commenced after November 29, 1985 and is located within the geographic exclusion area,
(a) written certification by the Department in accordance with 28 RCNY § 6-08, that 20 percent (20%) of the units contained in that building will be affordable to persons of low and moderate income; or
(b) written certification by the Department, in accordance with 28 RCNY § 6-08, that construction is being carried out with substantial governmental assistance; or
(c) a copy of a written agreement with the Department for the construction or substantial rehabilitation of housing units affordable to persons of low and moderate income on another site, such agreement expressly providing that the creation of said units is intended to meet the requirements of 28 RCNY § 6-08; or,
(d) Negotiable Certificates issued pursuant to §28 RCNY § 6-08, evidencing the bearer’s entitlement to the benefits of the Act for the units for which the applicant is seeking tax benefits.
(iii) The date upon which it is estimated that initial occupancy will commence.
(2) A statement of intention that the owner will register all rental units with the New York State Department of Housing and Community Renewal prior to initial occupancy and will offer initial leases of not less than two years to tenants of such stabilized units, or such shorter term as the tenant requests, or a statement that the multiple dwelling is to be owned as a cooperative or condominium.
(3) A certified copy of a Certificate of Eviction, if required by 28 RCNY § 6-02(f).
(4) A schedule of proposed initial rents for each rental dwelling unit in the building. No requests for revision of this schedule will be considered once a Final Certificate of Eligibility has been issued for the building in question.
(1) The owner must file an application for a Final Certificate of Eligibility which shall consist of an affidavit in the form required by the Commissioner and shall include the following:
(i) A sworn statement of the actual total project cost of the newly constructed building. Such actual project cost may be approved by the Department as the total project cost of such building provided all of the items comprising such actual total project cost are certified to by a certified public accountant licensed by the State of New York, and further provided that such actual total project cost does not exceed the specific costs determined by the Department pursuant to its promulgated Annual Schedule, plus any allowable abnormal, unique or special foundation costs which may be incurred. In the event that costs relating to commercial portions of the building are incomplete, an estimate of such costs may be accepted tentatively by the Office, provided a supplemental accountant’s certification is provided after such costs have been determined. If additional fees are owed on the basis of such supplemental certification, benefits are subject to revocation pursuant to chapter thirty-nine of this title if the fees are not paid. Where such costs differ from the original cost certification filed with the application for a Preliminary Certificate of Eligibility, such sworn statement shall include
(A) the difference in costs, and
(B) the reason or basis for such difference in costs;
(ii) A revised schedule of proposed initial rents, if any, containing any modification of the original schedule filed with the application for a Preliminary Certificate, for each rental dwelling unit in the building. No requests for revision to this schedule will be considered once a Final Certificate of Eligibility has been issued for the building in question;
(iii) (A) Evidence satisfactory to the Office in a form approved by the Department that the owner of rental dwelling units has registered the building and any occupied units with the New York State Division of Housing and Community Renewal, and, if the building is not fully occupied, an affidavit stating that the owner shall register all remaining units as they become occupied and shall submit proof of such registration of all remaining units in a form approved by the Department upon the earlier to occur of (1) the occupancy of the last remaining unit, or (2) one year from the date of Completion of Construction; or (B) if the project is to be owned and operated as a cooperative or a condominium, a statement by the owner that if the prospective cooperative or condominium plan has not been declared effective for filing at a time fifteen months after the issuance of a Final Certificate of Eligibility, such owner will register these rental units with the New York State Division of Housing and Community Renewal no later than fifteen calendar days after such fifteen month period.
(iv) A statement of the date of completion of the building.
(v) If construction commenced after November 29, 1985 within the geographic exclusion area, and construction was not carried out with substantial governmental assistance, a copy of the Written Agreement and proof of compliance with the requirements of 28 RCNY § 6-08, including a Permanent Certificate of Occupancy for all new or substantially rehabilitated units or a Temporary Certificate of Occupancy for the entire residential portion of a building or buildings located outside the geographic exclusion area which was constructed or rehabilitated pursuant to an agreement with the Department to qualify the building located within the geographic exclusion area for the benefits of the Act. Proof of compliance shall include the requisite number of Negotiable Certificates in accordance with the ratios set forth in 28 RCNY § 6-08(b).
(vi) In the event that through no fault of the applicant, and due to unforeseen circumstances which are beyond the control of the applicant, construction of the off-site units which was promptly commenced and has been diligently proceeding has not been completed before the completion of the building applying for benefits pursuant to the Act, the Department, in its sole discretion, may permit the applicant to submit a Letter of Credit equal to 150 percent of the Department approved estimate of the cost of completing the off-site units. The written agreement with the Department will be amended to provide a new completion date, after which the Department shall have the authority to use the proceeds of the Letter of Credit to complete the construction.
(vii) Proof that the multiple dwelling has been registered with the Department in accordance with the provisions of article two of subchapter four of the Housing Maintenance Code.
(viii) A) For applications received on or after December 19, 2006, an affidavit from the owner certifying that whenever any household appliance in any dwelling unit, or any household appliance that provides heat or hot water for any dwelling unit in the multiple dwelling, is installed or replaced with a new household appliance on or after December 19, 2006, such new appliance shall be certified as Energy Star. If applicable, such affidavit may instead certify (a) that an appropriately-sized Energy Star certified household appliance is not manufactured, such that movement of walls or fixtures would be necessary to create sufficient space for such appliance, and/or (b) that an Energy Star certified boiler or furnace of sufficient capacity is not manufactured.
(B) For purposes of this subparagraph (viii), (a) “household appliance” shall mean any refrigerator, room air conditioner, dishwasher or clothes washer, within a dwelling unit in the multiple dwelling that is provided by the owner, and any boiler or furnace that provides heat or hot water for any dwelling unit in the multiple dwelling, and (b) “Energy Star” shall mean a designation from the United States Environmental Protection Agency or Department of Energy indicating that a product meets the energy efficiency standards set forth by the agency for compliance with the Energy Star program.
(ix) For applications received for any projects that commence construction on or after December 28, 2007, an affidavit from the owner certifying that either (A) all building service employees employed or to be employed at the building shall receive the applicable prevailing wage for the duration of such building’s tax exemption pursuant to the Act, or (B) such project contains less than fifty dwelling units, or (C) at initial occupancy, at least fifty percent (50%) of the dwelling units in the multiple dwelling will be affordable to individuals or families with a gross household income at or below one hundred twenty-five percent (125%) of the area median income and that any such rental units will remain affordable for the entire period during which they receive benefits pursuant to this Act.
(x) For applications received for any projects that commence construction on or after the effective date of the amendment that added this subparagraph, an affidavit from the owner certifying that all units that are affordable to persons of low and moderate income that qualify buildings outside of the geographic exclusion area for a twenty-five year exemption will be marketed by the Department pursuant to a fair and open process in accordance with the Department’s marketing guidelines or will be marketed in accordance with the marketing guidelines of another federal, state or local agency or instrumentality that provided substantial governmental assistance for the construction of such units.
(2) The application for a Final Certificate of Eligibility must be filed as follows:
(i) for a multiple dwelling to be owned as a rental, the application must be filed prior to occupancy of the building, but no earlier than the date of the application for a Preliminary Certificate of Eligibility.
(ii) for a multiple dwelling to be owned as a condominium or a cooperative, the application must be filed prior to the first taxable status date following the completion of construction. In the event such application is not timely filed, benefits of the Act shall be revoked pursuant to 28 RCNY § 6-07(e)(5) only where the failure to file such application has resulted in the extension of the construction benefit period beyond the actual period of construction.
(iii) (A) For a public project, the Department may grant an extension of up to four years for filing the application for a Final Certificate of Eligibility, provided that to the extent to which the failure to file such application has resulted in the extension of the construction benefit period beyond the actual period of construction for such public project, the construction benefit period shall be retroactively adjusted so that it is coterminous with the actual construction period.
(B) For a building which is not a public project, the Department may grant an extension of up to two years for filing the application for a Final Certificate of Eligibility where the applicant has established that it reasonably relied upon the representations of third parties that the benefits of the Act would be available, provided that to the extent to which the failure to file such application has resulted in the extension of the construction benefit period beyond the actual period of construction for such building, the construction benefit period shall be retroactively adjusted so that it is coterminous with the actual construction period.
(iv) Notwithstanding the provisions contained in subparagraphs (i) through (iii) of this paragraph, the deadlines for filing an application for a Final Certificate of Eligibility shall not apply to any property for which the Department issued a Preliminary Certificate of Eligibility and which has received tax benefits pursuant to the Act on or after January 1, 1990.
(3) The applications for a Final Certificate of Eligibility must be completed by the applicant as follows:
(i) for a multiple dwelling containing one hundred units or less, within ninety days following the issuance of a permanent certificate of occupancy or a temporary certificate of occupancy covering all residential space.
(ii) for a multiple dwelling containing more than one hundred units, within one hundred and eighty days following the issuance of a permanent certificate of occupancy or a temporary certificate of occupancy covering all residential space.
(iii) where an extension has been granted under paragraph (2)(iii) of this subdivision, the application must be completed (A) within ninety days of the filing thereof for a multiple dwelling containing one hundred units or less, or (B) within one hundred and eighty days of the filing thereof for a multiple dwelling containing more than one hundred units.
(4) [Reserved.]
(5) In the event that all the required documents are not timely filed, benefits of the Act may be revoked in accordance with the procedures established pursuant to chapter thirty-nine of this title. An application shall be deemed complete when all items delineated in 28 RCNY § 6-05 have been submitted, as well as any other documents which the Office may request.
(6) Notwithstanding the provisions contained in paragraph (3) of this subdivision, the Office may grant an extension to complete an application for a Final Certificate of Eligibility for good cause shown.
(1) Upon receipt of the application for a Preliminary Certificate of Eligibility the Department shall determine the initial adjusted monthly rent and the comparative adjusted monthly rent with respect to rental dwelling units contained within the multiple dwelling pursuant to 28 RCNY § 6-04(a). Upon the Commissioner’s determination that a multiple dwelling is entitled to partial tax exemption hereunder the Department shall issue a Preliminary Certificate of Eligibility to be delivered by the applicant to the appropriate borough officer of the Property Division of the Department of Finance together with his, her or its application to the Department of Finance for partial tax exemption. Such certification shall be conditioned upon the filing and approval of an application for a Final Certificate of Eligibility as herein provided.
(2) Upon receipt of the application for a Final Certificate of Eligibility and either a Temporary Certificate of Occupancy for all residential areas in the multiple dwelling or a Permanent Certificate of Occupancy, and upon the Commissioner’s determination that a multiple dwelling is entitled to partial tax exemption hereunder, the Department shall issue a Final Certificate of Eligibility to be delivered by the owner to the appropriate borough officer of the Property Division of the Department of Finance between February 1st and March 15th, together with his, her or its application to the Department of Finance for partial tax exemption.
§ 6-06 The Tax Exemption.
(a) Taxes on prior assessed valuation not subject to exemption. Taxes on the assessed value of land receiving benefits under this section, and any improvements thereon, during the tax year preceding the commencement of construction are not eligible for exemption under the Act. Tax exemption under the Act is not available until the tax year following the first year taxable status date following commencement of construction. The Prior Assessed Valuation remains subject to taxation at the prevailing rate from year to year.
| TEN YEAR EXEMPTION | |
|---|---|
| Year | Percent of Increased Assessed Valuation Which is Exempt |
| First | 100% |
| Second | 100% |
| Third | 80% |
| Fourth | 80% |
| Fifth | 60% |
| Sixth | 60% |
| Seventh | 40% |
| Eighth | 40% |
| Ninth | 20% |
| Tenth | 20% |
| Eleventh | 0% |
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| FIFTEEN YEAR EXEMPTION | |
|---|---|
| Year | Percent of Increased Assessed Valuation Which is Exempt |
| First through Eleventh | 100% |
| Twelfth | 80% |
| Thirteenth | 60% |
| Fourteenth | 40% |
| Fifteenth | 20% |
| Sixteenth | 0% |
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| TWENTY YEAR EXEMPTION | |
|---|---|
| Year | Percent of Increased Assessed Valuation Which is Exempt |
| First through Twelfth | 100% |
| Thirteenth and Fourteenth | 80% |
| Fifteenth and Sixteenth | 60% |
| Seventeenth and Eighteenth | 40% |
| Nineteenth and Twentieth | 20% |
| Twenty-first | 0% |
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| TWENTY-FIVE YEAR EXEMPTION | |
|---|---|
| Year | Percent of Increased Assessed Valuation Which is Exempt |
| First through twenty-first | 100% |
| Twenty-second | 80% |
| Twenty-third | 60% |
| Twenty-fourth | 40% |
| Twenty-fifth | 20% |
| Twenty-sixth | 0% |
~
(1) For the ten year benefit period, the ten years beginning in the first year of exemption after completion of construction.
(2) For the fifteen year benefit period, the five years beginning in the eleventh year of exemption after completion of construction.
(3) For the twenty year benefit period, the eight years beginning in the thirteenth year after completion of construction.
(4) For the twenty-five year benefit period, the five years beginning in the twenty-first year of exemption after completion of construction.
§ 6-07 Record Keeping; Revocation of Tax Exemption; Discrimination Prohibited. [Repealed]
(a) Multiple dwellings affected. Within the geographic exclusion area described in 28 RCNY § 6-02(c)(10), the benefits of the Act are available only to multiple dwellings which would otherwise be eligible for benefits of the Act pursuant to the provisions of these rules and where construction commenced on or before November 29, 1985, unless such construction is carried out with substantial governmental assistance, or the owner thereof complies with the requirements of this section.
| Paragraph | Ratio |
|---|---|
| 28 RCNY § 6-08(b)(1) | 1:5 |
| 28 RCNY § 6-08(b)(2) | 1:5 |
| 28 RCNY § 6-08(b)(3)(i) | 1:4 |
| 28 RCNY § 6-08(b)(3)(ii) | 1:3.3 |
| 28 RCNY § 6-08(b)(4)(i) | 1:5 |
| 28 RCNY § 6-08(b)(4)(ii) | 1:4 |
| 28 RCNY § 6-08(b)(4)(iii) | 1:6 |
| 28 RCNY § 6-08(b)(5)(i) | 1:2.3 |
| 28 RCNY § 6-08(b)(5)(i) | 1:2 |
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(1) Obtaining the certification of the Department that twenty percent (20%) of the units contained in the multiple dwelling applying for benefits pursuant to the Act shall be rented to persons of low and moderate income as defined by this chapter at rents to be determined by the Department pursuant to this section.
(2) Entering into a written agreement with the Department on or before December 31, 1990 to create through new construction on a site or sites meeting the requirements of 28 RCNY § 6-02(f), Class A dwelling units to be rented to persons of low and moderate income as defined by this chapter at rents to be determined by the Department pursuant to this section numbering at least twenty percent (20%) of the units in the multiple dwelling located within the geographic exclusion area seeking benefits pursuant to the Act.
(3) Entering into a written agreement with the Department on or before December 31, 1990 to substantially rehabilitate an existing Class A multiple dwelling, the residential portion of which is vacant, to be rented to persons of low and moderate income as defined by this chapter at rents to be determined by this section. The number of units to be substantially rehabilitated shall be in accordance with the following ratios:
(i) twenty-five percent (25%) of the number of units contained in the multiple dwelling or dwellings located within the geographic exclusion area which will be owned as a rental; or
(ii) thirty percent (30%) of the number of units contained in the multiple dwelling or dwellings located within the geographic exclusion area which will be owned as a cooperative or condominium.
(4) Entering into a Written Agreement with the Department on or after January 1, 1991 to create Class A dwelling units through new construction on a site or sites meeting the requirements of 28 RCNY § 6-02(f) to convert an existing non-residential building to a Class A multiple dwelling, or to substantially rehabilitate an existing Class A multiple dwelling building, the residential portion of which is vacant and has been entirely vacant for not less than three years, to be rented to:
(i) persons of low income as defined by this chapter at the rents to be determined by the Department pursuant to this chapter numbering at least twenty percent (20%) of the units in the multiple dwelling located within the geographic exclusion area seeking benefits pursuant to the Act.
(ii) persons of moderate income as defined by this chapter at rents to be determined by this section numbering at least twenty-five percent (25%) of the units in the multiple dwelling located within the geographic exclusion area seeking benefits pursuant to the Act.
(iii) homeless persons are referred by the Department or by the Human Resources Administration, numbering at least sixteen and six-tenths percent (16.6%) of the units in the multiple dwelling located within the geographic exclusion area seeking benefits pursuant to the Act.
(5) Entering into a written agreement with the Department to create through new construction or substantial rehabilitation Single Room Occupancy units to be rented to persons of low and moderate income as defined by these rules at rents to be determined by the Department pursuant to this section. The number of units to be created shall be in accordance with the following ratios:
(i) forty-two percent (42%) of the number of units contained in the multiple dwelling or dwellings located within the geographic exclusion area which will be owned as a rental; or
(ii) fifty-one percent (51%) of the number of units contained in the multiple dwelling or dwellings located within the geographic exclusion area which will be owned as a cooperative or condominium.
(6) If the average size of the residential units contained in the multiple dwelling or dwellings located within the geographic exclusion area seeking benefits pursuant to the Act exceeds 1,200 square feet, the Department shall increase the number of affordable units which must be created pursuant to paragraphs (2), (3), (4) or (5) of 28 RCNY § 6-08(b) by multiplying that number of units by the ratio of the average square footage to 1,200 square feet unless the average square footage per unit of the low and moderate income units is equal to those of the multiple dwelling in the geographic exclusion area and the developer is the same for the geographic exclusion area units and the affordable units.
(7) If the number of low and moderate income units to be created exceeds 130, two out of every three units in excess of 130 must be rented to moderate income households as defined in this chapter, and must number twenty-five percent (25%) of the number of the units in the multiple dwelling located within the geographic exclusion area seeking the benefits of the Act; and one out of every three units in excess of 130 must be rented to low income households as defined in this section, and must number twenty percent (20%) of the number of units in the multiple dwelling located within the geographic exclusion area seeking the benefits of this Act.
(1) An applicant for benefits pursuant to this Act who wishes to create the required number of low and moderate income units on a vacant City-owned site may be offered a site or sites pursuant to a method to be established by the Department. Such method shall make available parcels which will yield the necessary number of low and moderate income units.
(2) The following procedures apply to the substantial rehabilitation or conversion of City-owned sites or to new construction on vacant City-owned parcels:
(i) All construction shall be performed by the developer under a license agreement with the City. At no time will title to the multiple dwelling be conveyed to the developer. All hard and soft development costs will be borne by the developer.
(ii) After a permanent Certificate of Occupancy has been issued for the multiple dwelling or dwellings, the Department shall convey title to the multiple dwelling or dwellings to a qualified not-for-profit organization in whose catchment area the project is located. Disposition will be for $1 per multiple dwelling through ULURP or UDAAP. If the building is located in the catchment area for more than one local and/or city-wide qualified not-for-profit group, the Department will select the group to whom the building will be sold.
(iii) one hundred percent (100%) of the units in the multiple dwelling or dwellings must be affordable units.
(iv) ten percent (10%) of the units must be provided for homeless families. Referrals will be made by HPD/HRA by agreement with the not-for-profit organization, which shall provide the not-for-profit organization with the ability to screen prospective tenants.
(1) All affordable units created pursuant to this section must be owned as rentals, for either 20 years or as long as the building containing the affordable units receives real estate tax benefits, whichever is longer.
(2) Buildings containing affordable units created on privately owned sites may be owned by either a for-profit or a qualified not-for-profit organization.
(i) In the event ownership of the affordable units is retained by a for-profit owner, the owner of the building receiving the benefits of the Act as a result of satisfaction of the requirements of this section shall have the ongoing responsibility for insuring the continuing maintenance and operation of the affordable units in a habitable condition. Should an owner fail to maintain such units as affordable or in a habitable condition, benefits of the Act received by the multiple dwelling located in the geographic exclusion area shall be revoked retroactive to the start of construction. Such revocation shall be conducted in accordance with the procedures established pursuant to chapter thirty-nine of this title.
(ii) The developer of the affordable units on privately owned sites may elect to transfer ownership of the off-site units to a qualified not-for-profit organization is a New York State corporation experienced in the management of low income housing and approved in writing by the Department in accordance with the purpose of this section. In that event, the developer must convey title to a qualified not-for-profit for $1.00 per multiple dwelling. The not-for-profit owner shall assume the ongoing responsibility for insuring the continuing maintenance and operation of the affordable units in a habitable condition. Failure of the not-for-profit to maintain such units as affordable or in a habitable condition shall not result in a revocation of the tax benefits received by the multiple dwellings located in the geographic exclusion area.
(iii) A developer creating affordable units on a privately-owned site with the assistance of the Federal Low Income Housing Credit under § 42 of the Internal Revenue Code of 1986 may retain ownership of such units if the developer enters into a management contract with a qualified managing agent approved in writing by the Department and conforms to the requirements of this section. Failure of the managing agent to maintain such units as affordable or in a habitable condition shall not result in a revocation of the tax benefits received by the multiple dwelling located in the geographic exclusion area.
(A) The management contract must be approved by the Department and shall be for twenty years or for the length of the real estate tax benefits on the affordable units, whichever is longer. The developer must obtain the prior written approval of the Department to substitute another qualified managing agent if, during the term of the contract, the relationship with the original manager is severed for any reason.
(B) The affordable units must remain as rent stabilized units for twenty years or the length of the real estate tax benefits on such affordable units, whichever is longer. Thereafter, upon each vacancy the affordable units may be deregulated according to the following schedule:
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| One | 0% |
|---|---|
| Two | 0% |
| Three | 20% |
| Four | 20% |
| Five | 40% |
| Six | 40% |
| Seven | 60% |
| Eight | 60% |
| Nine | 80% |
| Ten | 80% |
| Eleven | 100% |
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(C) The developer shall enter into an agreement with the Department to fund two reserve funds. The first shall create sufficient funds for maintenance and operation of the affordable housing units to the extent to which maintenance and operating expenses exceed income available from the rent roll, and shall be created in accordance with 28 RCNY § 6-08(f). The second covers capital improvement costs and will require the developer to deposit with the City a Capital Improvement Escrow Fund equal to 1 percent (1%) of total development costs. The developer will be required to replenish the fund within sixty (60) days of any drawing down. Interest will accrue to such Fund, which will be held by the Department. The not-for-profit can draw on this escrow fund upon authorization by the Department if the developer fails to make necessary capital repairs. Neither the Department nor the City shall have any liability as Escrow Agent; the Department’s determination of withdrawal of funds shall be binding on all parties.
(D) If HPD approves a not-for-profit manager, the developer must enter into a purchase option contract with the not-for-profit for the period of the affordable housing plan. This option contract shall state that the not-for-profit manager may purchase the affordable units for $1 if the owner abandons the project. Evidence of abandonment shall include failure by the developer to meet the maintenance and operating expenses, failure to replenish the Capital Improvement Escrow Fund, or failure to make necessary repairs. Further, if during the time of the Federal Low Income Housing Credit, such credit is revoked and recaptured due to failure by the developer to comply with the applicable provisions of the Internal Revenue Code and any applicable regulations, then the not-for-profit may exercise the purchase option listed above. If the developer retains ownership through the end of the affordable housing plan, then the Capital Improvement Escrow Fund is paid to the developer upon expiration of the affordable housing plan. If the developer abandons the development before the end of the expiration of the affordable housing plan, then the Capital Improvement Escrow Fund is transferred to the not-for-profit. The purchase option contract may provide for an automatic termination of the contract if HPD approves termination of the not-for-profit as managing agent. In the absence of a not-for-profit manager, HPD may require the owner to enter into a purchase option contract with a not-for-profit acceptable to HPD which would take effect in the event of abandonment.
(1) Affordable Class A dwelling units created through new construction must meet the standards set forth in the Department’s “Design Guidelines For Housing – New Construction” and “Standard Specifications” (“Design Guidelines”) (applicant should obtain the most recent edition of the Design Guidelines from the Department). In addition, such dwelling units must satisfy one of the following requirements:
(i) Unless the affordable units are created under 28 RCNY § 6-08(b)(3) or (b)(5), 50 percent (50%) of the units must contain two or more bedrooms, and in all cases average square footage and bedroom mix must be equally distributed with respect to all income levels; or
(ii) For multiple dwellings that commence construction before December 28, 2007, such affordable units must be located in the same building and must contain the same average square footage and bedroom mix of all residential units contained in such multiple dwelling. For multiple dwellings that commence construction on or after December 28, 2007, if the affordable units are created in accordance with 28 RCNY § 6-08(b)(1) and unless preempted by federal requirements, (A) all affordable units must have a comparable number of bedrooms and a unit mix proportional to the market rate units contained in such multiple dwelling, or (B) at least fifty percent (50%) of the affordable units must have two or more bedrooms and not more than fifty percent (50%) of the remaining affordable units can be smaller than one bedroom, or (C) the floor area of the affordable units must be no less than twenty percent of the total floor area of all dwelling units in such multiple dwelling.
(2) Affordable Class A dwelling units created through substantial rehabilitation or conversion must meet the standards set forth in the Department’s “Design Guidelines For Housing – Substantial Rehabilitation” and “Standard Specifications.” (“Design Guidelines”) (applicant should obtain the most recent edition of the Design Guidelines from the Department).
(i) In order for the rehabilitation of a vacant multiple dwelling or the conversion of a non-residential building to qualify under 28 RCNY § 6-08(b)(4), the scope of work must include but is not limited to the following:
(A) Beam replacement, to the extent required by the Department
(B) New subflooring
(C) New partition framing
(D) New sheetrock walls and ceilings
(E) New windows
(F) New finish flooring, roofing and insulation
(G) New kitchen cabinets
(H) New baths with ceramic tile finishes
(I) New interior and exterior doors (wood and metal)
(J) New finish carpentry
(K) New plumbing
(L) New heating
(M) New electrical
(N) New elevators (where applicable)
(O) Masonry repairs, to the extent required by the Department
(P) New fire escapes, to the extent required by the Department
(Q) Concrete site work, to the extent required by the Department
(ii) At least fifty percent (50%) of the affordable units created pursuant to this paragraph shall contain two or more bedrooms each, except that the Department may reduce the bedrooms requirements when, in the sole opinion of the Department, existing structural elements preclude compliance. If the Department approves a reduction in the number of bedrooms, the developer will be required to rehabilitate or create through conversion additional units in a room and bedroom configuration which is acceptable to the Department, to compensate for the number of bedrooms and square footage which would have been obtained had the bedroom requirement been met. For the purposes of computation, the Department will require three studios or two one-bedroom units to be built for every two-bedroom unit lost. The Department will seek the solution which results in creating apartments with the highest bedroom count possible, consistent with the Department’s policy of creating housing which meets the needs of families.
(3) Single Room Occupancy Units created to conform to 28 RCNY § 6-08(b)(5) must conform to the Department’s Single Room Occupancy Guidelines (applicant should obtain the most recent edition of the Guidelines from the Department).
| Bedroom Size | Minimum Number of People |
|---|---|
| 0 | 1 |
| 1 | 1 |
| 2 | 2 |
| 3 | 4 |
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(1) For projects permitted to assume debt pursuant to 28 RCNY § 6-08(o)(2), the Department shall establish initial rents for individual units as provided in subparagraph (i). For all other projects, initial rents shall be established as provided in subparagraph (ii).
(i) Units rented to persons of low income are not to exceed 30% of 55% of median income. Units rented to persons of moderate income are not to exceed the average of 30% of 75% of median income, provided that no initial annual rent will be established for any unit in a moderate or mixed income project which exceeds 30% of 95% of annual median income. The Department shall establish a total rent roll for units created pursuant to this section based upon program-wide standards for the amount necessary for maintenance, operation, administration, creation of normal reserve accounts, debt service, and in consideration of the income level to be served. For the purpose of determining median income, the following family sizes shall be imputed:
| Number of Bedrooms | Imputed Family Size |
|---|---|
| 0 | 1.0 |
| 1 | 1.5 |
| 2 | 3.0 |
| 3 | 4.5 |
| 4 | 6.0 |
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(ii) The Department shall establish a total rent roll for units created pursuant to this section based upon program-wide standards for the amount necessary for maintenance, operation, administration and the creation of normal reserve accounts, and in consideration of the income level to be served. For affordable units being constructed under any of the options in this section, the managing agent may set rents higher than the allowable rent roll only with the prior written approval of the Department and only as long as no household is charged more than thirty percent (30%) of their annual income for rent. Such rents shall be the higher of the rents in effect when the Written Agreement for Creation of Affordable Housing is entered into or when construction of the affordable housing units commences. The initial rents for individual units will be determined by the managing entity, and must be affordable to low and moderate income families, as defined in this chapter. In no case shall the initial rent of any affordable unit exceed 30% of 100% of median income.
(2) Upon initial occupancy, all units created pursuant to this section must be registered with the New York State Division of Housing and Community Renewal. Such units must remain rent stabilized for the entire period during which such units receive real estate tax benefits under any New York State or New York City tax abatement and/or exemption programs, or for 20 years, whichever is longer.
(3) Future rent increases may not exceed the increases established by the Rent Guidelines Board.
(4) Upon vacancy, units must be re-rented at no more than the legal stabilized rent. All units must be rented to families earning no more than four times such annual rent.
(5) Tenants holding a lease and in occupancy of any unit created pursuant to this section at the expiration of the rent stabilization period pursuant to paragraph (2) of this subdivision (i) shall have the right to remain as rent stabilized tenants for the duration of their occupancy. Once units become vacant after termination of benefits, the owner of such units shall have the option to de-stabilize such rents.
(6) Tenant incomes and rents must be certified to the Department by the owner of the multiple dwelling containing the affordable units following initial rent up. Thereafter, the owner of such multiple dwelling must certify to the Department tenant incomes and rents for all re-rentals after vacancies on an annual basis, but no later than January 31 for each calendar year ending December 31.
(7) For the purposes of this subsection (i), “rent” shall mean gross rent, as defined for the purposes of the federal low income housing tax credit program, and shall include utilities. In the event that utilities are charged separately, gross rent shall be reduced accordingly.
(1) When the project’s financial feasibility is threatened by a significant unanticipated rise in maintenance and operating expenses that cannot be covered by the rent roll and available reserves; or
(2) When a significant, unanticipated expense occurs in the building that cannot be covered by the rent roll and available reserves; or
(3) When rents rise faster than the income of the tenants who are paying 30 percent (30%) of their income in rent and where the increased rent(s) on the vacant unit(s) are used to maintain the rents for existing tenants at 30 percent (30%) of their income.
(1) The written agreement with the Department for the creation of affordable units pursuant to this section must be entered into prior to the commencement of construction of such affordable units.
(2) Such written agreement may be entered into after the commencement of construction of the multiple dwelling or dwellings located in the geographic exclusion area seeking benefits of this Act.
(3) Any request for a written agreement pursuant to 28 RCNY § 6-08(l) shall be accompanied by a filing fee of $100 for each proposed unit of affordable housing, which fee shall be non-refundable but shall be applied to the filing fee for the tax benefits for the affordable units, as established by 28 RCNY § 6-05(c) and 28 RCNY § 5-05(f) governing tax exemption and abatement pursuant to § 11-243 of the Administrative Code (J-51).
(1) A cover sheet identifying:
(i) the applicant
(ii) if a corporate entity, the principals in that entity
(iii) the location of the affordable housing units
(iv) the location, if known, of the multiple dwelling located within the geographic exclusion area seeking benefits of the Act.
(2) A statement that the units are intended to entitle a project to receive benefits of the Act and that such units will be rented in compliance with all provisions of this chapter.
(3) Proof of control of the site of the affordable units including:
(i) if privately owned, deed or contract of sale; or
(ii) if a city-owned building is to be rehabilitated or converted,
(A) proof of selection of site; and
(B) endorsed license agreement with the City to permit the rehabilitation or con- version.
(4) Preliminary building plans as approved by the Department, indicating a site plan of the low and moderate income building, total size of the building and the size and configuration of the dwelling units to be contained in the building.
(5) A scope of work indicating the extent of rehabilitation or scope of new construction or conversion.
(6) Identification of the owner of the affordable units created on privately owned sites:
(i) if a for-profit owner, the name of the ownership entity and principals.
(ii) a not-for-profit owner, the name of not-for-profit and evidence of pre-qualification.
(7) A marketing plan for tenant selection and apartment rental. The marketing plan shall identify specific organizations or institutions, such as Community Boards, not-for-profit organizations, senior citizen centers, religious institutions, etc., which shall advertise the availability of the affordable units and must be in accordance with the Department’s marketing guidelines, which can be obtained from the Department. All marketing efforts must meet equal opportunity and fair housing guidelines.
(8) A statement that a rental multiple dwelling located within the geographic exclusion area which qualified for benefits under the Act pursuant to 28 RCNY § 6-08(b)(3), (4) or (6) of this section will not be converted to cooperative or condominium ownership during the period of partial tax exemption. Conversion may be permitted by the Department subsequent to the expiration of the period of partial tax exemption where the affordable units are owned by a for-profit organization only if the conversion sponsor:
(i) enters into a Written Agreement with the Department to provide for the maintenance and operation of the affordable units for the remainder of the 20 years or the period during which such units receive tax benefits under any New York State or New York City tax abatement or exemption program, whichever is longer, or
(ii) transfers the ownership of the affordable units to a not-for-profit organization qualified by the Department.
(9) Where affordable units are created pursuant to 28 RCNY § 6-08(b)(1), a statement that such units will not be converted to condominium or cooperative ownership for 20 years, or as long as the buildings containing the affordable units receive tax benefits under any tax abatement or tax exemption program from the State of New York or the City of New York, whichever is longer.
(10) Where the affordable units will be owned by for-profit organization, except those units meeting the requirements of 28 RCNY § 6-08, a statement that the recipient of the benefits of this Act will be responsible for the maintenance and operation of the units in a habitable condition. If the units will be owned by a not-for-profit organization as permitted under 28 RCNY § 6-08(e)(2)(iii), the developer shall be required to fund a reserve fund in the amount of $2.25 for each square foot of affordable housing provided, in the same manner as that described in 28 RCNY § 6-08(f), and a Capital Improvement Escrow Fund in accordance with 28 RCNY § 6-08(e)(2)(iii).
(11) For units to be owned by a not-for-profit organization, an agreement to fund a blocked reserve account, in an amount specified by this section and administered by the Department, or to create such a fund should the units owned by a for-profit organization be transferred to a not-for-profit in the future.
(12) An agreement to submit to the Department, within five days of their execution or issuance by another City agency:
(i) a construction contract for the creation of the lower income units between the applicant and the entity chosen to carry out the construction;
(ii) final approved plans by the Department of Buildings;
(iii) the altered building application and alteration permit for substantial rehabilitations and conversions or the new building permit for new construction;
(iv) a temporary certificate of occupancy for the entire residential portion of the building or the permanent certificate of occupancy.
(13) An agreement that changes or amendments made to any document included in this plan must obtain the prior approval of the Department.
(14) A filing fee in the amount of $100 for each proposed unit of affordable housing.
(15) A financial statement describing proposed sources and uses of all funds for the project, as approved by the Department.
(1) After the Department determines that a request for Written Agreement is complete and satisfies all requirements of this section, the Department shall approve the request for a Written Agreement. The Written Agreement will provide for the granting of benefits of this Act for a specified number of dwelling units contained in a multiple dwelling located within the exclusion area. Such Written Agreement must be submitted to the Department with the application for benefits of the Act for the multiple dwelling located in the geographic exclusion area. In the event benefits of the Act are granted based upon a Written Agreement, failure to satisfy the conditions contained in such Written Agreement will result in a revocation of any benefits received by the multiple dwelling located in the exclusion area.
(2) Upon the submission to the Department of a permanent Certificate of Occupancy for, or the temporary Certificate of Occupancy for the entire residential portion of, the building containing the affordable units created pursuant to this section, the Department shall conduct a site inspection. Following that site inspection and upon satisfaction that all terms of the Written Agreement and of this section have been met, the Department shall issue the Negotiable Certificates representing the completion of the affordable units.
(3) Such Negotiable Certificate shall be required prior to the issuance of the Final Certificate of Eligibility for a multiple dwelling located within the geographic exclusion area pursuant to 28 RCNY § 6-05(e), unless at the sole option of the Department, pursuant to 28 RCNY § 6-05(d)(l)(vi), a Letter of Credit has been submitted to the Department.
(4) Such Negotiable Certificate shall provide that a specified number of dwelling units containing up to an average size of twelve hundred square feet to be constructed in the geographic exclusion area shall be eligible to receive benefits of the Act.
(5) In the event that the benefits of the Act are to be transferred to more than one building located within the geographic exclusion area, and at the written request of the applicant, the Negotiable Certificate shall be “drawn down” by the amount required for each transfer, and a new Negotiable Certificate, endorsed by the applicant, shall be issued for each transfer. Application for the benefits of the Act must be accompanied by the original Negotiable Certificate and a copy of the Certificate of Completion.
(1) Affordable units created pursuant to 28 RCNY § 6-08(b) may not be the recipient of any other as-of-right or discretionary government benefit, consideration or assistance, excluding tax exempt financing, federal low income housing tax credits, and real estate tax benefits enumerated in paragraph (3) of this subdivision (n).
(2) Affordable units created to satisfy the low and moderate income housing requirements of any other governmental benefit, consideration or assistance except tax exempt financing, federal low income housing tax credits, and real estate tax benefits enumerated in paragraph (3) of this subdivision (n) shall not be considered as being created to satisfy the requirements of this section. Units created pursuant to 28 RCNY § 6-08(b)(i) shall not also qualify as affordable units under this section.
(3) In order to qualify a multiple dwelling located within the geographic exclusion area for benefits under the Act, affordable units created by rehabilitation or conversion must receive a Certificate of Eligibility for the benefits of § 11-243 or 11-244 of the Administrative Code or § 421-g of the Real Property Tax Law, and affordable units created by new construction must receive a Certificate of Eligibility for the benefits of the Act, unless such units obtain tax exemption pursuant to § 420-a or 420-b of the Real Property Tax Law, § 696 of the General Municipal Law, or § 577 of the Private Housing Finance Law.
(4) Affordable units created pursuant to 28 RCNY § 6-08(b)(2) through (b)(5) of these rules may not be used, or have been used, to satisfy a requirement to create low or moderate income housing imposed by a federal, state, or local agency or instrumentality or pursuant to a court or administrative order or decree (unless such requirement is imposed solely as a condition to receiving bond financing or federal low income housing tax credits for the property containing the affordable units).
(5) Notwithstanding anything to the contrary contained in this subdivision, affordable units created to satisfy the requirements of the inclusionary housing program established pursuant to the New York City Zoning Resolution may be used to qualify a multiple dwelling in the geographic exclusion area for the benefits of the Act provided that (i) at least twenty percent (20%) of the units contained in the multiple dwelling applying for such benefits are affordable to persons of low and moderate income as defined by this chapter, and (ii) such affordable units only generate floor area compensation for a compensated development on either (a) the same zoning lot as such affordable units, or (b) within a development site on which such affordable units are located where such development site involves several zoning lots that were reviewed and approved as a single unit pursuant to the New York City Zoning Resolution. For purposes of this paragraph (5), “floor area compensation” and “compensated development” shall have the meanings set forth in Section 23-911 of the New York City Zoning Resolution.
(1) In the case of a project which qualifies for tax benefits pursuant to 28 RCNY § 6-08(b)(1), any lien or mortgage encumbering one or more low and moderate income units in such project shall expressly provide that it is subject and subordinate to the Written Agreement imposing the restrictions required by this 28 RCNY § 6-08, commencing upon issuance of a Final Certificate of Eligibility for such tax benefits.
(2) Projects undertaken pursuant to either 28 RCNY § 6-08(b)(4)(i), (b)(4)(ii), or (b)(4)(iii) may be encumbered with a lien or mortgage, provided the amount of debt placed on the project permits rents for such units to comply with the provisions of 28 RCNY § 6-08(i) and such lien or mortgage expressly provides that it is subject and subordinate to the Written Agreement.
§ 6-09 New Eligibility Requirements.
(a) Definitions. For purposes of this 28 RCNY § 6-09, the following terms shall have the following meanings:
Affordability requirement. “Affordability requirement” shall mean that not less than twenty percent of the onsite units in such multiple dwelling are GEA 60% AMI units or GEA SGA units.
Applicable deadline. “Applicable Deadline” shall mean, unless otherwise exempted pursuant to the Act, (a) with respect to a multiple dwelling within the Geographic Exclusion Area, June 30, 2008, (b) with respect to the limitations on benefits imposed pursuant to paragraph five of subdivision b of this section, December 27, 2007, (c) with respect to the limitations on benefits imposed pursuant to paragraph six of subdivision b of this section, June 30, 2008, except for multiple dwellings that purchase negotiable certificates generated by a Written Agreement with the Department entered into prior to December 28, 2006, and (d) with respect to the limitations on benefits imposed pursuant to paragraph six of subdivision b of this section, for multiple dwellings that purchase negotiable certificates generated by a Written Agreement with the Department entered into prior to December 28, 2006, June 30, 2009.
Building segment. “Building segment” shall have the meaning set forth in Section 12-10 of the Zoning Resolution.
Commence. “Commence” shall mean:
(a) (1) the later to occur of (i) the date upon which a new metal or concrete structure to be incorporated into the multiple dwelling that shall perform a load bearing function for such multiple dwelling is installed; or (ii) the date upon which a building or alteration permit for the multiple dwelling (based upon architectural and structural plans approved by the Department of Buildings) was issued by such department; or
(2) if a project includes new residential construction and the concurrent conversion, alteration or improvement of a pre-existing building or structure, the later to occur of (i) the date upon which the actual construction of the conversion, alteration or improvement of the pre-existing building or structure begins; or (ii) the date upon which an alteration permit for the multiple dwelling (based upon architectural and structural plans approved by the Department of Buildings) on which the actual construction of the conversion, alteration or improvement takes place, was issued by such department;
(b) provided, however, that
(1) with respect to subparagraph (1) of paragraph (a), if piles or caissons are required, “commence” shall mean the later to occur of (i) the date upon which at least one fully driven pile or caisson is installed; or (ii) the date upon which a building or alteration permit for the multiple dwelling (based upon architectural and structural plans approved by the Department of Buildings) was issued by such department; and
(2) with respect to both subparagraphs (1) and (2) of paragraph (a):
(i) such installation of a new metal or concrete structure or such beginning of the actual construction of the conversion, alteration or improvement of the pre-existing building or structure, respectively, and such issuance of a building or alteration permit, must both have occurred in order for the multiple dwelling to meet this definition of “commence” and
(ii) for multibuilding projects, each multiple dwelling in such multibuilding project shall be deemed to “commence” (A) with respect to subparagraph (1) of paragraph (a), on the later to occur of (1) the date upon which a new metal or concrete structure to be incorporated into the first multiple dwelling in such multibuilding project that shall perform a load bearing function for such multiple dwelling is installed; or (2) the date upon which a building or alteration permit for the first multiple dwelling in such multibuilding project (based upon architectural and structural plans approved by the Department of Buildings) was issued by such department, provided that all of the multiple dwellings in such multibuilding project have been issued by the Department of Buildings a building or alteration permit (based upon architectural and structural plans approved by such department) on or before the applicable deadline, and the periods of construction and final real property tax exemption benefits granted pursuant to the Act shall commence simultaneously for all of the multiple dwellings in such multibuilding project; and (B) with respect to subparagraph (2) of paragraph (a), on the later to occur of (1) the date upon which the actual construction of the conversion, alteration or improvement of the first pre-existing building or structure in such multibuilding project begins; or (2) the date upon which an alteration permit for the first multiple dwelling in such multibuilding project (based upon architectural and structural plans approved by the Department of Buildings) on which the actual construction of the conversion, alteration or improvement takes place, was issued by such department, provided that all of the multiple dwellings in such multibuilding project have been issued by the Department of Buildings a building or alteration permit (based upon architectural and structural plans approved by such department) on or before the applicable deadline, and the periods of construction and final real property tax exemption benefits granted pursuant to the Act shall commence simultaneously for all of the multiple dwellings in such multibuilding project; and
(iii) for any multiple dwelling that was not located in the GEA on or before the Applicable Deadline, but is located in the GEA after the Applicable Deadline, or for any multiple dwelling that would not have been subject to the exemption cap pursuant to the provisions of subdivision 9 of the Act on or before the Applicable Deadline, but would be subject to such exemption cap after the Applicable Deadline, if the architectural and structural plans approved by the Department of Buildings in conjunction with the issuance of the first such building or alteration permit for such multiple dwelling are thereafter amended to provide for more than a thirty-five percent (35%) increase (the “35% standard”) in the floor area, as defined pursuant to the Zoning Resolution, of such multiple dwelling, the construction of such multiple dwelling shall be deemed to have commenced on the date upon which such amended plans are approved by such department, provided, however, that, the amendments to this clause (iii) that were adopted on [;insert effective date of CAPA rule]; shall only apply to multiple dwellings whose applications for a Preliminary Certificate of Eligibility are approved by the Department on or after May 1, 2014; and
(iv) the construction of any such multiple dwelling also must be completed without undue delay. For purposes of this definition of “commence,”:
(1) for any application for a Preliminary Certificate of Eligibility that is filed no later than June 24, 2012, or that is filed with respect to a project that was the subject of mortgage foreclosure proceedings or other lien enforcement litigation by a lender on or before June 24, 2012: (A) if a project consists of one multiple dwelling and such multiple dwelling is completed within seventy-two (72) months from the later to occur of (1) the date of the installation of a new metal or concrete structure or of the beginning of the actual construction of the conversion, alteration or improvement of the pre-existing building or structure, respectively, (2) the date upon which a building or alteration permit for the multiple dwelling (based upon architectural and structural plans approved by the Department of Buildings) was issued by such department, or (3) December 28, 2007, such multiple dwelling shall be deemed to have been completed without undue delay, and (B) if a project meets the requirements of clause (ii) of this paragraph (2), if all of the multiple dwellings in such multibuilding project are completed within seventy-two (72) months from the later to occur of (1) the date of the installation of a new metal or concrete structure for the first multiple dwelling in such multibuilding project or of the beginning of the actual construction of the conversion, alteration or improvement of the first pre-existing building or structure in such multibuilding project, respectively, (2) the date upon which a building or alteration permit for the first multiple dwelling (based upon architectural and structural plans approved by the Department of Buildings) was issued by such department, or (3) December 28, 2007, all of the multiple dwellings in such multibuilding project shall be deemed to have been completed without undue delay. Where construction is not completed within such seventy-two (72) month period and an architect or professional engineer has certified that such construction was completed without undue delay, the Department will not merely rely on such certification. In order to determine whether such construction was, in fact, completed without undue delay, the Department will consider the following factors: (i) the extraordinary size and/or complexity of the construction project; (ii) strikes or other unavoidable labor stoppages of substantial duration and severity; (iii) industry-wide shortages of construction materials of substantial duration and severity; (iv) substantial damage to completed construction work caused by fire or other casualty, and (v) mortgage foreclosure proceedings or other lien enforcement litigation by a lender with regard to such project. In each case, the Department will consider such factors and determine whether construction could reasonably have been completed in a materially shorter period of time.
(2) for any application for a Preliminary Certificate of Eligibility that is filed after June 24, 2012, and that is not filed with respect to a project that was the subject of mortgage foreclosure proceedings or other lien enforcement litigation by a lender on or before June 24, 2012: (A) if a project consists of one multiple dwelling and such multiple dwelling is completed within thirty-six (36) months from the later to occur of (1) the date of the installation of a new metal or concrete structure or of the beginning of the actual construction of the conversion, alteration or improvement of the pre-existing building or structure, respectively, (2) the date upon which a building or alteration permit for the multiple dwelling (based upon architectural and structural plans approved by the Department of Buildings) was issued by such department, or (3) December 28, 2007, such multiple dwelling shall be deemed to have been completed without undue delay, and (B) if a project meets the requirements of clause (ii) of this paragraph (2), if all of the multiple dwellings in such multibuilding project are completed within thirty-six (36) months from the later to occur of (1) the date of the installation of a new metal or concrete structure for the first multiple dwelling in such multibuilding project or of the beginning of the actual construction of the conversion, alteration or improvement of the first pre-existing building or structure in such multibuilding project, respectively, (2) the date upon which a building or alteration permit for the first multiple dwelling (based upon architectural and structural plans approved by the Department of Buildings) was issued by such department, or (3) December 28, 2007, all of the multiple dwellings in such multibuilding project shall be deemed to have been completed without undue delay.
(3) Notwithstanding anything to the contrary contained herein, if a multiple dwelling meets the affordability requirement or is located outside of the GEA, such multiple dwelling shall be deemed to have been completed without undue delay.
(c) Where it is determined in accordance with this definition of “commence” that a multiple dwelling commenced construction on or after December 28, 2007 with respect to paragraph five of subdivision (b) of this section or July 1, 2008 with respect to paragraphs one, three or six of subdivision (b) of this section, respectively, this definition of “commence” shall supersede the definition of “commencement of construction” contained in 28 RCNY § 6-01.
Commercial space. “Commercial space” shall mean any space within a building that is devoted to commercial, community facility or other non-residential use.
Common area. “Common area” shall mean any space within a building to which the residents of two or more dwelling units have access without paying a usage fee and that is not located in a dwelling unit, in a commercial space or in a service area.
Common charges or carrying charges. “Common charges or carrying charges” shall mean the estimated amounts contained in the offering plan accepted by the office of the Attorney General of the State of New York for filing.
Contract Rents. “Contract Rents” shall mean the rent approved by the United States Department of Housing and Urban Development for dwelling units in a project with a HAP Contract.
Geographic exclusion area or GEA. “Geographic exclusion area” or “GEA” shall mean the boundaries for any geographic exclusion areas set forth in § 421-a of the Real Property Tax Law and § 11-245 of the Administrative Code that are effective on or after July 1, 2008.
GEA 60% limit. “GEA 60% limit” shall mean (A) for a multiple dwelling owned and operated as a rental, (1) incomes at the time of initial occupancy that do not exceed sixty percent of the area median incomes adjusted for family size, and (2) rents at the time of initial occupancy that do not exceed thirty percent of sixty percent of the area median incomes adjusted for family size, minus the amount of any applicable utility allowance, and (B) for a multiple dwelling owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, (1) incomes at the time of initial occupancy that do not exceed sixty percent of the area median incomes adjusted for family size, and (2) sales prices at the time of initial sales that result in mortgage payments, including both principal and interest calculated at the prevailing rate and assuming that the mortgage constitutes 90% of the purchase price, and common charges or carrying charges, respectively, that collectively do not exceed thirty percent of sixty percent of the area median incomes adjusted for family size.
GEA SGA limit. “GEA SGA limit” shall mean (A) for a multiple dwelling owned and operated as a rental, (1) incomes at the time of initial occupancy that do not exceed one hundred twenty percent of the area median incomes adjusted for family size and, where such a multiple dwelling contains more than twenty-five units, incomes at the time of initial occupancy that do not exceed an average of ninety percent of the area median incomes adjusted for family size, and (2) rents at the time of initial occupancy that do not exceed thirty percent of one hundred twenty percent of the area median incomes adjusted for family size, minus the amount of any applicable utility allowance, and, where such a multiple dwelling contains more than twenty-five units, rents at the time of initial occupancy that do not exceed an average of thirty percent of ninety percent of the area median incomes adjusted for family size, minus the amount of any applicable utility allowance, or (B) for a multiple dwelling owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, (1) incomes at the time of initial occupancy that do not exceed one hundred twenty-five percent of the area median incomes adjusted for family size, and (2) sales prices at the time of initial sales that result in mortgage payments, including both principal and interest calculated at the prevailing rate and assuming that the mortgage constitutes 90% of the purchase price, and common charges or carrying charges, respectively, that collectively do not exceed thirty percent of one hundred twenty-five percent of the area median incomes adjusted for family size.
GEA 60% AMI unit. “GEA 60% AMI unit” shall mean (A) if a multiple dwelling is owned and operated as a rental, a unit that, upon its initial rental and upon all subsequent rentals of the unit after a vacancy, complies with the GEA 60% limit, or (B) if a multiple dwelling is owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, a unit that, upon the initial sale of such unit, complies with the GEA 60% limit.
GEA SGA unit. “GEA SGA unit” shall mean (A) if a multiple dwelling is owned and operated as a rental, a unit that, upon its initial rental and upon all subsequent rentals of the unit after a vacancy, complies with the GEA SGA limit, or (B) if a multiple dwelling is owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, a unit that, upon the initial sale of such unit, complies with the GEA SGA limit.
HAP Contract. “HAP Contract” shall mean any project-based Section 8 housing assistance payments contract, governed by Subpart E of part 983 of Chapter IX of Subtitle B of Title 24 of the Code of Federal Regulations, covering units in the multiple dwelling, as may be amended or renewed.
Multibuilding project. “Multibuilding project” shall mean a project that consists of more than one multiple dwelling where the multiple dwellings are located inside the GEA, do not meet the affordability requirement, are contiguous and are under common ownership. For purposes of this definition of “multibuilding project”, multiple dwellings shall be deemed to be (a) “contiguous” if such multiple dwellings are on tax lots that (1) are adjacent for at least ten linear feet, or, (2) but for the intervention of streets or street intersections, would be adjacent for at least ten linear feet and front the same street or intersection, and (b) “under common ownership” if at the date of commencement of construction, each of the multiple dwellings in such multibuilding project is owned and/or controlled directly or indirectly by the same individual or entity.
Onsite. “Onsite” shall mean situated within a building or buildings on the same zoning lot, or, if only a portion of such zoning lot is being granted benefits pursuant to the Act, situated within a building or buildings on such portion of such zoning lot; provided, however, that (1) each of the buildings on such zoning lot or portion thereof is part of the same application for benefits pursuant to the Act, (2) the periods of construction and final real property tax exemption benefits granted pursuant to the Act for all of the buildings on such zoning lot or portion thereof being granted benefits pursuant to the Act shall commence simultaneously, and (3) no final real property tax exemption benefits shall be granted pursuant to the Act for any of the buildings on such zoning lot or any portion thereof being granted benefits pursuant to the Act until receipt of a certificate of occupancy or a temporary certificate of occupancy for the residential portions of the building or buildings on such zoning lot containing the GEA 60% AMI units and/or the GEA SGA units.
Party in interest. “Party in interest” shall mean any person or entity holding an ownership, ground lease, mortgage, or other security interest, or holding any other interest which may be converted to such interest, in the real property containing the multiple dwelling receiving the benefits pursuant to the Act.
Prevailing rate. “Prevailing rate” shall mean the single family mortgage rate for a thirty-year fixed rate loan established by the Federal Home Loan Mortgage Association and the Federal National Mortgage Association that is either (1) for purposes of the application for a Preliminary Certificate of Eligibility, quoted for the month in which the construction of such multiple dwelling commences, or (2) for purposes of the application for a Final Certificate of Eligibility, quoted for the month in which the first certificate of occupancy or temporary certificate of occupancy for the first unit in such multiple dwelling that is owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, is issued.
Section 8. “Section 8” shall mean a federal rental subsidy pursuant to the Section 8 project-based rental assistance program, or any successor programs under the United States Housing Act of 1937, as amended.
Service area. “Service area” shall mean any space within a building that is utilized by the owner or manager of such building, and their respective employees, for purposes of building administration, and to which residential tenants do not normally have access.
Story. “Story” shall have the meaning set forth in Section 12-10 of the Zoning Resolution.
Utility allowance. “Utility allowance” shall mean an allowance set forth by the Department for the payment of utilities where the tenant of a GEA 60% AMI unit or a GEA SGA unit is required to pay all or a portion of the utility costs with respect to such unit in addition to any payments of rent.
(1) Unless otherwise exempted pursuant to the Act, a multiple dwelling within the geographic exclusion area that commences construction on or after July 1, 2008 and which would otherwise be eligible for the benefits of the Act, is only eligible if:
(i) not less than twenty percent of the onsite units in such multiple dwelling are GEA 60% AMI units marketed by the Department pursuant to a fair and open process in accordance with the Department’s marketing guidelines; or
(ii) the construction of such multiple dwelling is carried out with substantial governmental assistance provided pursuant to a program for the development of affordable housing and not less than twenty percent of the onsite units in such multiple dwelling are GEA SGA units; or
(iii) such multiple dwelling has purchased negotiable certificates in order to entitle it to the benefits of the Act for a specified number of units in the geographic exclusion area; provided, however, that such negotiable certificates were generated by a Written Agreement with the Department entered into prior to December 28, 2007 pursuant to 28 RCNY § 6-08(b)(4).
(2) For thirty-five years from the completion of construction, all GEA 60% AMI units and GEA SGA units in multiple dwellings must (i) if they are owned and operated as rentals, remain rent stabilized and allow tenants holding a lease and in occupancy at the expiration of such thirty-five year period to remain as rent stabilized tenants for the duration of their occupancy, (ii) comply with the affordability requirement, and (iii) upon the renewal of leases or at any time during the term of the lease, be rented to existing tenants for the lesser of (A) the rents permitted under the Rent Stabilization Law of 1969 and the Emergency Tenant Protection Act of 1974 and all regulations promulgated in connection thereto (collectively, “Rent Stabilization Laws”), or (B) 30% of the applicable income limit for such GEA 60% AMI unit or GEA SGA unit, respectively, minus the amount of any applicable utility allowance, provided, however, that no increase authorized pursuant to 28 RCNY § 6-04(b) and no exemption or exclusion from any requirement of the Rent Stabilization Laws, including, but not limited to, any exemption or exclusion from the rent limits, renewal lease requirements, registration requirements, or other provisions of the Rent Stabilization Laws due to (a) the vacancy of a unit where the rent exceeds a prescribed maximum amount, (b) the fact that tenant income and/or unit rent exceed prescribed maximum amounts, (c) the nature of the tenant, or (d) any other factor, may be applied to any such GEA 60% AMI unit or GEA SGA unit during such thirty-five year period. Furthermore, the lease for each such unit owned and operated as a rental and for the renewal thereof must contain a notice in at least twelve (12) point type stating the approximate date on which such thirty-five year period is expected to expire and informing such tenant that after such thirty-five year period, (i) the unit will no longer have to comply with the affordability requirement and (ii) if the tenant is holding a lease and in occupancy at the expiration of such thirty-five year period, such tenant shall have the right to remain as a rent stabilized tenant for the duration of such tenant’s occupancy. The rent stabilization and lease rider requirements contained in 28 RCNY § 6-02(g) shall continue to apply to the multiple dwellings owned and operated as a rental containing such GEA 60% AMI units or GEA SGA units to the extent that they do not conflict with this paragraph.
(2-a) (i) Notwithstanding anything to the contrary contained in this section, rents for GEA 60% AMI units or GEA SGA units in multiple dwellings that are subject to a HAP Contract may exceed 30% of the applicable income limit for such GEA 60% AMI units or GEA SGA units, at initial occupancy and upon renewal of leases, if
(A) such rents do not exceed one hundred twenty percent of the Contract Rents for such units,
(B) such rents, less any rent subsidies pursuant to Section 8 of the United States Housing Act of 1937, do not exceed the lesser of (1) the GEA 60% limit or the GEA SGA limit, as applicable, or (2) the tenant’s maximum payment allowed under the HAP Contract, and
(C) at least twenty percent (20%) of the GEA 60% AMI units or GEA SGA units, as applicable, in such multiple dwellings that are first rented to tenants on or after the effective date of this rule amendment either for initial occupancy or for re-rental upon a vacancy, are rented through referrals from the City of homeless households who meet the applicable income requirements and other eligibility criteria permitted by the marketing guidelines of the Department.
(ii) Each year, upon annual registration of its rental dwelling units with the New York State Department of Housing and Community Renewal, the owner of a multiple dwelling subject to subparagraph (i) of this paragraph must file with the Department an affidavit in a form approved by the Department attesting that each lease of a GEA 60% AMI unit or GEA SGA unit, or renewal thereof, during the preceding year complied with the applicable rent requirements under subparagraph (i) of this paragraph at the time of execution of the lease, or renewal thereof, and providing other information regarding the leases for such units as the Department shall require in such affidavit.
(iii) Subparagraph (i) of this paragraph shall only apply during the term of such multiple dwelling’s HAP Contract.
(3) Unless otherwise exempted pursuant to the Act, the owner of a multiple dwelling that is located within the geographic exclusion area and that commences construction on or after July 1, 2008:
(i) when filing an application for a Preliminary Certificate of Eligibility pursuant to 28 RCNY § 6-05(b), must submit (A) written certification that it meets the affordability requirement, or (B) if such multiple dwelling is qualifying for benefits pursuant to subparagraph (iii) of paragraph (2) of this subdivision, and subject to the provisions contained in 28 RCNY § 6-08(m)(1), submit either (a) a copy of a Written Agreement with the Department for the construction or substantial rehabilitation of housing units affordable to persons of low and moderate income on another site that meet the requirements of 28 RCNY § 6-08, or (b) the negotiable certificates issued pursuant to 28 RCNY § 6-08, evidencing the bearer’s entitlement to the benefits of the Act for the units for which the owner is seeking tax benefits.
(ii) when filing an application for a Preliminary Certificate of Eligibility pursuant to 28 RCNY § 6-05(b) for a multiple dwelling that contains GEA 60% AMI units or GEA SGA units, submit evidence satisfactory to the Office that a restrictive declaration in a form satisfactory to the Office (A) has been executed by all parties in interest, (B) has been recorded against the real property containing the multiple dwelling receiving benefits pursuant to the Act, and (C) provides that the GEA 60% AMI units or the GEA SGA units in such building must for thirty-five years from the completion of construction (1) comply with the affordability requirement, (2) if such multiple dwelling is owned and operated as a rental, remain rent stabilized and allow tenants holding a lease and in occupancy at the expiration of such thirty-five year period to remain as rent stabilized tenants for the duration of their occupancy, and (3) if applicable, comply with the provisions of paragraph 2-a of this subdivision.
(iii) when filing an application for a Final Certificate of Eligibility pursuant to 28 RCNY § 6-05(d) for a multiple dwelling that contains GEA 60% AMI units or GEA SGA units, submit an affidavit from the owner containing such information as the Department may require to certify that such units will be marketed pursuant to a fair and open process in accordance with the marketing guidelines of the Department or of another federal, state or local agency or instrumentality, and that (A) if the units will be marketed in accordance with the marketing guidelines of another federal, state or local agency or instrumentality, the owner has informed such agency or instrumentality of the requirement that residents of the community board where the multiple dwelling for which benefits are being granted pursuant to the Act is located shall, upon initial occupancy, have priority for the purchase or rental of 50% of the GEA 60% AMI units or 50% of the GEA SGA units, respectively, unless the community priority requirement is preempted by federal requirements, and (B) either (1) residents of the community board where the multiple dwelling for which benefits are being granted pursuant to the Act is located shall, upon initial occupancy, have priority for the purchase or rental of 50% of the GEA 60% AMI units or 50% of the GEA SGA units, respectively, or (2) such multiple dwelling does not have to comply with such community priority requirement because the community priority requirement is preempted by federal requirements that such owner has specified in such affidavit.
(iv) in addition to the record keeping requirements contained in 28 RCNY § 6-07, must retain all books, records and documents relating to the GEA 60% AMI units or GEA SGA units, including an annual schedule of rents for each such rental unit for thirty-five years from the completion of construction of such multiple dwelling, and a schedule of the initial sales prices for each such home ownership unit for six years from the completion of construction of such multiple dwelling, and make them available for inspection by the Department.
(4) For all multiple dwellings that commence construction on or after June 15, 2015, and on or before December 31, 2015, as determined pursuant to the definition of “commence” contained in §§ 421-a (2)(a)(iv)(A) and 421-a(2)(c)(ii) of the Real Property Tax Law, and that receive their first temporary or permanent certificate of occupancy covering all residential areas on or before December 31, 2019:
(i) If a story contains one or more GEA 60% AMI units or GEA SGA units, not less than thirty percent of the dwelling units on such story shall be units that are neither GEA 60% AMI units nor GEA SGA units, provided, however, that the Department may waive such requirement where either (A) the GEA 60% AMI units and GEA SGA units comprise more than fifty percent of the units in a multiple dwelling, or (B) there is only one dwelling unit on a story in a multiple dwelling;
(ii) Every building segment in a multiple dwelling must contain one or more GEA 60% AMI units or GEA SGA units; and
(iii) All common areas in a multiple dwelling shall be open and accessible to the residents of all of the dwelling units in such multiple dwelling, including the residents of GEA 60% AMI units and GEA SGA units.
(5) Unless otherwise exempted pursuant to the Act, any multiple dwelling that commences construction on or after December 28, 2007 and which would otherwise be eligible for the benefits of the Act, is only eligible if:
(i) such multiple dwelling contains at least four dwelling units as set forth in the certificate of occupancy, unless the construction of such multiple dwelling is carried out with substantial governmental assistance provided pursuant to a program for the development of affordable housing; and
(ii) if such new multiple dwelling is situated in (a) a Neighborhood Preservation Program Area as determined by the Department as of June 1, 1985, or (b) a Neighborhood Preservation Area as determined by the New York City Planning Commission as of June 1, 1985, or (c) an area that was eligible for mortgage insurance provided by the Rehabilitation Mortgage Insurance Corporation (REMIC) as of May 1, 1992, or (d) an area receiving funding for a neighborhood preservation project pursuant to the Neighborhood Reinvestment Corporation Act (42 U.S.C. §§ 8101 et seq.) as of June 1, 1985, such new multiple dwelling shall no longer be eligible for the benefits available pursuant to § 421-a(2)(a)(iii) of the Act unless either (a) the construction is carried out with substantial governmental assistance provided pursuant to a program for the development of affordable housing, or (b) the Department has imposed a requirement or has certified that at least twenty percent of the onsite units in such multiple dwelling are affordable to and occupied by or affordable to and available for occupancy by individuals or families whose incomes at the time of initial occupancy do not exceed eighty percent of the area median incomes adjusted for family size, provided, however, that of such units, no more than a number equal to five percent of the number of units which commenced construction in buildings receiving tax benefits pursuant to the Act in the previous calendar year shall be affordable to and occupied by or affordable to and available for occupancy by individuals or families whose incomes at the time of initial occupancy are between sixty percent and eighty percent of the area median incomes adjusted for family size.
(6) Unless otherwise exempted pursuant to the Act, any multiple dwelling that commences construction on or after July 1, 2008 and which would otherwise be eligible for benefits pursuant to the Act, shall be subject to the provisions of subdivision 9 of the Act imposing an exemption cap on such multiple dwelling.
(7) Eligible multiple dwellings that meet the requirements of paragraphs (1) or (5) (ii) of this subdivision (b) may receive a ten, fifteen, twenty or twenty-five year tax exemption, as described herein. In order to qualify for such benefits, the multiple dwelling must meet the eligibility requirements described below for each level of exemption.
(i) Only the ten year exemption is available to multiple dwellings located in Manhattan on tax lots now existing or hereafter created south of or adjacent to either side of 110th street if such multiple dwelling meets the requirements of subparagraph (iii) of paragraph (1) of this subdivision (b).
(ii) Only the fifteen year exemption is available to multiple dwellings located in the boroughs of the Bronx, Brooklyn, Queens, Staten Island and in Manhattan north of 110th Street if such multiple dwelling meets the requirements of subparagraph (iii) of paragraph (1) of this subdivision (b).
(iii) The twenty year exemption is available in the borough of Manhattan for buildings on tax lots now existing or hereafter created south of or adjacent to either side of one hundred tenth street only if such multiple dwelling meets the requirements of subparagraph (i) or (ii) of paragraph (1) of this subdivision (b) or the requirements of subparagraph (ii) of paragraph (5) of this subdivision (b).
(iv) The twenty-five year exemption is available to multiple dwellings located in the boroughs of the Bronx, Brooklyn, Queens, Staten Island or Manhattan north of 110th Street only if such multiple dwelling meets the requirements of subparagraph (i) or (ii) of paragraph (1) of this subdivision (b) or the requirements of subparagraph (ii) of paragraph (5) of this subdivision (b).
§ 6-10 Applicability of Certain Provisions.
Except as otherwise specifically provided therein, the amendments to this chapter six that became effective on June 19, 2008, shall only apply to multiple dwellings that commence construction on or after July 1, 2008. For purposes of determining when any such multiple dwelling has commenced construction, the definition of “commence” in such amendments shall apply and, where it is determined that such multiple dwelling commenced construction on or after July 1, 2008, the definition of “commence” in such amendments shall supersede the definition of “commencement of construction” contained in 28 RCNY § 6-01.
APPENDIX A ANNUAL SCHEDULE OF REASONABLE COSTS
§ 7-01 Definitions.
The following terms shall have the following meaning:
Act. “Act” means § 421-b of the Real Property Tax Law as amended.
Commencement of new construction. “Commencement of new construction” means the date upon which the foundation is started in good faith as certified in an affidavit by a licensed architect or professional engineer after the issuance of a new building permit by the Department of Buildings based upon plans approved by the Department of Buildings.
Commencement of reconstruction. “Commencement of reconstruction” means the date upon which work begins in good faith after the filing of a building notice with the Department of Buildings or the issuance of an alteration permit where required.
Commissioner. “Commissioner” means the Commissioner of the Department of Housing Preservation and Development of the City of New York or the chief executive officer of a successor thereto authorized to administer this chapter, or such representative of said Department as shall have been duly designated by the Commissioner to act on his behalf.
Completion of new construction. “Completion of new construction” means the date a Certificate of Occupancy is issued by the Department of Buildings for lawful residential use.
Completion of reconstruction. “Completion of reconstruction” means the date all work necessary to complete reconstruction is completed. Such completion may be confirmed by:
(1) Issuance or reissuance of a Certificate of Occupancy; or
(2) Issuance of a Letter of Completion by the Department of Buildings; or
(3) Issuance of a Certificate of Completion or Compliance or other evidence of completion by a City agency other than the Department of Buildings; or
(4) If none of the above is required by law, an affidavit by a registered architect, licensed professional engineer or attorney certifying to the date of completion or an affidavit by the applicant if the cost of work is less than five thousand ($5,000) dollars.
Department. “Department” means the Department of Housing Preservation and Development of the City of New York.
Office. “Office” means the Office of Development of the Department of Housing Preservation and Development of the City of New York or any successor thereto authorized to administer this chapter.
Prior assessed valuation. “Prior assessed valuation” means the total assessed value of a tax lot (land and improvements) during the tax year immediately preceding the tax year of Commencement of New Construction or Commencement of Reconstruction.
Private dwelling. “Private dwelling” means a building or structure, including the land upon which it is situated, which is designed and occupied exclusively for residence purposes by not more than two families living independently of each other with separate cooking facilities.
Reconstruction. “Reconstruction” means reconstruction, alteration or improvement of a Private Dwelling if the actual cost thereof is not less than forty (40%) percent of Prior Assessed Valuation.
§ 7-02 General Applicability.
(a) Eligible projects. As used herein, eligible projects means private dwellings which are newly constructed or reconstructed provided such construction or reconstruction commences after July 1, 1978 but before July 1, 1980 and is completed no later than April 1, 1982.
§ 7-03 Amount and Duration of Tax Exemption.
(a) Taxes on prior assessed valuation not subject to exemption. Taxes on prior assessed valuation are not eligible for exemption under the Act. The prior assessed valuation is subject to taxes at the tax rate in effect from time-to-time.
(1) Eligible projects which have received a Preliminary Certificate of Eligibility shall be exempt from taxes (other than assessments for local improvements) upon any increase in assessed valuation over the prior assessed valuation for the period specified in paragraph (2) of this 28 RCNY § 7-03(b).
(2) The period of exemption shall commence upon the first day of the tax year immediately following the taxable status date (January 25th) after the commencement of construction or reconstruction and shall extend for two years after commencement of construction or reconstruction, unless construction or reconstruction is completed in less than two years in which case the period of exemption will terminate on the first day of the first tax year following completion of construction or reconstruction.
| Year | Percentage of Exemption |
|---|---|
| First | 100% |
| Second | 100% |
| Third | 75% |
| Fourth | 62.5% |
| Fifth | 50% |
| Sixth | 37.5% |
| Seventh | 25% |
| Eighth | 12.5% |
~
§ 7-04 Revocation of Tax Exemption. [Repealed]
(a) General requirements. All applicants must file an application for a Final Certificate of Eligibility. An application for a Preliminary Certificate of Eligibility must also be filed if tax exemption during new construction or reconstruction is requested. Applicants who do not file an application for a Preliminary Certificate of Eligibility shall be required to furnish the information required in an application for a Preliminary Certificate of Eligibility and pay the Preliminary Certificate of Eligibility filing fee at the time they submit their application for a Final Certificate of Eligibility. All applications must be filed with the Director of Tax Incentive Programs, 100 Gold Street, New York, N.Y. 10038 between March 16 and January 31. The Office will not accept applications between February 1 and March 15.
(1) A non-refundable filing fee in the amount of one hundred twenty-five ($125) dollars for each newly constructed private dwelling.
(2) Applicant’s affidavit in the form required by the Department which shall certify that plans have been submitted to and approved by the Department of Buildings.
(3) Proof to the satisfaction of the Office of the Eligible Project’s Prior Assessed Valuation.
(4) An affidavit by a licensed architect or professional engineer as to the date of commencement of new construction.
(1) A non-refundable filing fee in the amount of ten ($10) dollars for each reconstructed private dwelling.
(2) Applicant’s certification as to the date of commencement of reconstruction and that the cost of reconstruction will be not less than forty (40%) percent of the prior assessed valuation.
(3) Applicant’s certification of the cost or estimated cost of reconstruction and prior assessed valuation.
(1) A copy of the building permit.
(2) A copy of the Certificate of Occupancy.
(1) Confirmation of completion of reconstruction.
(2) Proof to the satisfaction of the Office that the actual cost of reconstruction is not less than forty (40%) percent of the prior assessed valuation which shall include but not be limited to: copies of paid bills, cancelled checks and work contracts.
(3) Copy of building permit or alteration permit where required.
§ 8-01 Scope; Definitions.
Administrative Code §§ 11-301 et seq. and Administrative Code §§ 11-401 et seq. establish a procedure for sale of tax liens and a procedure for the Commissioner of Finance to deliver a deed conveying a tax delinquent property to a qualified Third Party after final judgment is rendered in an in rem foreclosure action. These rules clarify the circumstances under which certain property may be removed from tax lien sales and how Third Parties may be qualified and selected to acquire property from the Commissioner of Finance pursuant to a judgment rendered in an in rem foreclosure action.
Affiliate. “Affiliate” shall mean (a) any Person that has, directly or indirectly, a five percent (5%) or greater ownership interest in a Third Party, or any Person in which a Third Party, any partner or shareholder of a Third Party, or any partner or shareholder of any Person that is a partner or shareholder of a Third Party, has a five percent (5%) or greater ownership interest, and (b) any individual who is a member of the immediate family (whether by birth or marriage) of an individual who is an Affiliate, which includes for purposes of this definition a spouse, a domestic partner as defined in City Charter § 1150(13), a brother or sister of the whole or half blood (including an individual related by or through legal adoption) of such individual or his/her spouse or domestic partner, a lineal descendant or ancestor (including an individual related by or through legal adoption) of any of the foregoing, or a trust for the benefit of any of the foregoing. Ownership of or by a Third Party referred to in this definition includes beneficial ownership effected by ownership of intermediate entities.
Distressed Property. “Distressed Property” shall mean any parcel of class one or class two real property that is subject to a tax lien or liens with a lien or liens to value ratio, as determined by the Commissioner of Finance, equal to or greater than fifteen percent and that meets one of the following two criteria:
HPD. “HPD” shall mean the Department of Housing Preservation and Development.
Neighborhood Preservation Consultant. “Neighborhood Preservation Consultant” shall mean an organization under contract with HPD to undertake activities in connection with the Third Party Transfer Process within a particular area.
Person. “Person” shall mean any natural person, business entity, trust or estate, or any federal, state, county or municipal government or any bureau, department or agency thereof; and any fiduciary acting in such capacity on behalf of any of the foregoing.
Regulatory Agreement. “Regulatory Agreement” shall mean an agreement between HPD and a Third Party selected for conveyance of property pursuant to the Third Party Transfer Process that restricts or conditions the use of such property.
Rules. “Rules” shall mean these Rules.
Tenants. “Tenants” shall mean legal residential Tenants of a property that is subject to the Third Party Transfer Process. Squatters and other unlawful occupants are not Tenants.
Third Party. “Third Party” shall mean an entity or individual that may be deemed qualified and selected by the Commissioner of HPD as eligible to acquire a property pursuant to the Third Party Transfer Process.
Third Party Transfer Process. “Third Party Transfer Process” shall mean the process under which certain properties are transferred to Third Parties pursuant to Administrative Code §§ 11-401 et seq. and these Rules.
§ 8-02 Procedures for Distressed Property.
(a) The Commissioner of Finance shall, not less than sixty days preceding the date of the sale of a tax lien or tax liens, submit to the Commissioner of HPD a description by block and lot, or by such other identification as the Commissioner of Finance may deem appropriate, of any parcel of class one or class two real property on which there is a tax lien that may be sold by the City. The Commissioner of HPD shall determine, and advise the Commissioner of Finance, not less than ten days preceding the date of the sale of a tax lien or tax liens, whether any such parcel is a Distressed Property as defined in 28 RCNY § 8-01. Any tax lien on a parcel so determined to be a Distressed Property shall not be included in such sale. In connection with a subsequent sale of a tax lien or tax liens, the Commissioner of Finance may, not less than sixty days preceding the date of the sale, resubmit to the Commissioner of HPD a description by block and lot, or by such other identification as the Commissioner of Finance may deem appropriate, of any parcel of class one or class two real property that was previously determined to be a Distressed Property pursuant to these Rules and on which there is a tax lien that may be included in such sale. The Commissioner of HPD shall determine, and advise the Commissioner of Finance, not less than ten days preceding the date of the sale, whether such parcel remains a Distressed Property. If the Commissioner of HPD determines that the parcel is not a Distressed Property, then the tax lien on the parcel may be included in such sale.
§ 8-03 Qualification and Selection of a Third Party.
(a) In an in rem foreclosure action, the court shall make a final judgment authorizing the award of possession of any parcel of class one or class two real property described in the list of delinquent taxes not redeemed or withdrawn from the in rem foreclosure action as provided in Chapter 4 of Title 11 of the Administrative Code and as to which no answer is interposed as provided in such chapter, and authorizing the Commissioner of Finance to prepare, execute and cause to be recorded a deed conveying full and complete title to such property either to the City or to a Third Party deemed qualified and selected by the Commissioner of HPD.
(1) Record of Housing Maintenance Code violations, including, but not limited to class B and class C violations, legal proceedings to enforce the Housing Maintenance Code including, but not limited to, litigation by HPD’s Housing Litigation Bureau, or Emergency Repair Program charges with respect to any real property owned or managed by a Third Party or such Third Party’s spouse or domestic partner, as defined in City Charter § 1150(13), or by any Affiliate of such Third Party or of such Third Party’s spouse or domestic partner;
(2) Arrears on taxes, water and sewer charges, or other governmental charges or tax, mortgage, or lien foreclosure or enforcement proceedings with respect to any real property owned by a Third Party or such Third Party’s spouse or domestic partner, as defined in City Charter § 1150(13), or by any Affiliate of such Third Party or of such Third Party’s spouse or domestic partner;
(3) Arrears or defaults on other governmental obligations;
(4) Default or poor performance on a government contract;
(5) Re-designation or termination of negotiations after selection for a government project or contract;
(6) Non-responsibility determination by a government agency;
(7) Conviction or pending charges of fraud, bribery, grand larceny, any other felony, arson, or tenant harassment;
(8) Any other similar facts which demonstrate to HPD that a Third Party is not qualified for selection.
(1) by a request for qualifications process;
(2) by a request for proposals process;
(3) from a pre-qualified list;
(4) by a request for offer process; or
(5) by a direct selection of an entity judged by HPD to be qualified.
(1) residential management experience;
(2) financial capacity;
(3) rehabilitation experience;
(4) ability to work with government and community organizations;
(5) neighborhood ties;
(6) ability to finance or obtain financing for the required rehabilitation;
(7) whether the Third party is a not for profit organization or neighborhood-based-for-profit individual or organization;
(8) intent and ability to improve, manage and maintain the property to be transferred; (9) whether an application has been submitted under sponsorship of a Third Party on behalf of the Tenants for eventual ownership by the Tenants of a property that is subject to an in rem judgment of foreclosure.
(i) Such an application must be submitted to HPD in such form as HPD shall approve, on or before the date that is specified by HPD in the written notice to Tenants made pursuant to subdivision (c) of 28 RCNY § 8-04;
(ii) Such application must be sponsored by a Third Party and accompanied by a letter from such Third Party indicating that the Third Party is applying for transfer of the foreclosed property, is prepared to acquire, manage and rehabilitate the foreclosed property, and is sponsoring the Tenants in their effort to eventually own such property; and
(iii) Such application shall only be considered where: (A) the foreclosed property contains at least 10 residential units, (B) such property is at least 50 percent occupied; (C) the application is signed by 80% of the Tenant households of such property; and (D) such property was not owned by a cooperative corporation formed by a Housing Development Fund Corporation when the foreclosure proceeding commenced;
(10) any other factors that HPD deems relevant to such selection.
§ 8-04 Third Party Transfer Process.
(a) After the four-month period following the entry of a final in rem judgment with respect to a parcel of real property, but prior to expiration of the time set forth in Administrative Code §§ 11-401 et seq. for the conveyance of title to such real property to a Third Party following such judgment, HPD may:
(1) request the Commissioner of Finance to execute a deed to a Third Party selected by HPD; or
(2) take such other action as may be permitted by Administrative Code §§ 11-401 et seq. as HPD deems appropriate.
§ 8-05 Operation After Third Party Transfer Process.
(a) Regulatory Agreement. HPD may require that the Third Party selected for conveyance of property pursuant to the Third Party Transfer Process execute a Regulatory Agreement with HPD as a condition for such conveyance which shall be recorded and shall run with the land for the period set forth therein.
§ 8-06 Interim Evaluation Period.
(a) A property that has been transferred to a Third Party for which a Third Party has sponsored a Tenant application pursuant to 28 RCNY § 8-03(e)(9) shall be subject to an interim evaluation period during which progress toward eventual ownership by Tenants will be monitored by HPD.
(i) whether Tenants have cooperated with the Third Party in renewing leases or establishing new leases where none exists;
(ii) whether at least 80% of the Tenants are actively paying rent;
(iii) whether Tenants have cooperated with relocation plans, where applicable;
(iv) whether Tenants have attended training programs offered by the Third Party; and
(v) any additional factors that HPD considers appropriate in evaluating the Tenants’ progress toward ownership, provided that HPD notifies the Tenants of any such additional factors.
§ 8-07 Transfer from Third Party to Tenant Ownership.
(a) Unless a determination has otherwise already been made, HPD shall make a determination whether or not to approve the transfer from a Third Party to Tenant ownership upon completion of the interim evaluation period. HPD will consider the following criteria when making such determination:
(1) That an application was submitted to HPD pursuant to and in accordance with 28 RCNY § 8-03(e)(9);
(2) The time period that has elapsed since transfer of the property to the Third Party;
(3) Whether the property has been rehabilitated and permanent loan conversion has taken place;
(4) The number of Tenants who have signed a petition affirming that there is a functioning Tenant organization, that they wish to own the property, and that they understand the extent of the responsibilities of ownership of the property;
(5) The amount of time that a Tenant organization has been in existence at the property;
(6) The number of members of the Tenant organization who have participated in any training offered by HPD, including, but not limited to, courses in building management, maintenance, and managing building finances;
(7) The number of Tenants who have attended a presentation by HPD regarding ownership of the property;
(8) The level of Tenant interest in ownership as indicated through subscriptions to buy units;
(9) The record of payment of all existing loans, status of rent payments, and adequacy of management of the property;
(10) HPD’s evaluation of the progress made toward Tenant ownership during the interim evaluation period as set forth in 28 RCNY § 8-06; and
(11) Any other criteria that HPD deems relevant to the request, including, but not limited to, any information provided to it by the Third Party.
§ 8-08 Miscellaneous Provisions.
(a) HPD Discretion. All determinations to be made by HPD in accordance with these Rules shall be in the sole discretion of HPD.
§ 9-01 General Provisions.
The purpose of the Dismissal Request Program is to provide owners of multiple dwellings, private dwellings, and co-operative and condominium units, in New York City with a mechanism for obtaining re-inspections of their properties for the purpose of removing corrected housing code violations from the records of the Department.
§ 9-02 Eligible Applicants.
(a) The Department will accept Dismissal Requests from owners, managing agents, or the authorized representatives of such owners or managing agents for re-inspections of properties in each of the five boroughs of the City of New York.
(1) Owners and managing agents of multiple dwellings must be registered with the Department in accordance with the provisions of §§ 27-2097 through 27-2099 of the Housing Maintenance Code in order to submit a Dismissal Request.
(2) Owners of co-operative and condominium units and private dwellings must submit proof of ownership satisfactory to the Department in order to submit a Dismissal Request.
(3) Authorized representatives of owners or managing agents who are registered in accordance with the provisions of §§ 27-2097 through 27-2099 of the Housing Maintenance Code must submit proof of such authorization satisfactory to the Department in order to submit a Dismissal Request.
§ 9-03 Fee.
Each Dismissal Request must be accompanied by a certified check or money order, made payable to the New York City Commissioner of Finance, for a scheduled amount based on the dwelling classification and number of open violations at the time the Dismissal Request form is submitted to the Borough Code Enforcement Office, as follows:
| Dwelling Classification | Fee |
|---|---|
| Private Dwelling | $250 |
| Multiple Dwelling with 1 - 300 open violations | $300 |
| Multiple Dwelling with 301 - 500 open violations | $400 |
| Multiple Dwelling with 501 or more open violations | $500 |
~
§ 9-04 Re-inspection.
(a) The Department shall use its best efforts to re-inspect the premises within 45 business days of the date of receipt of the Dismissal Request and shall place in the mail to the applicant a copy of the inspection report indicating the results of such re-inspection within 45 business days of the date of receipt of the Dismissal Request in the Code Enforcement Borough Office, provided, however, that during the period of October 1st through May 31st, the Department shall use its best efforts to re-inspect the premises and place in the mail to the applicant a copy of the inspection report indicating results of re-inspection within 90 business days of the date of receipt of the Dismissal Request in the Code Enforcement Borough Office.
§ 9-05 Submission of Dismissal Requests.
(a) A Dismissal Request must be submitted on a form that can be obtained at any Code Enforcement Borough Office, either in person or by mail request, or on the Department's website at hpd/nyc.gov.
§ 9-06 Exceptions to the Dismissal Request Procedure.
(a) The application for a Dismissal Request by an owner, managing agent, or the authorized representative of such owner or managing agent who is otherwise eligible to apply for a Dismissal Request pursuant to the foregoing provisions of these rules may be rejected by the Department where the building that is the subject of the application is a building for which:
(1) there is pending Department-related litigation; or
(2) there is an uncollected judgment arising from Department-related litigation; or
(3) there is an unpaid emergency repair charge for repairs performed by or on behalf of the Department.
§ 10-01 Definitions.
Whenever used in this chapter:
Administrative Code. “Administrative Code” shall mean the New York City Administrative Code.
Access authorizer. “Access authorizer” shall mean the person who authorizes HPD to enter the property, which person shall be an individual natural person who either (i) has legal possession of all common areas of the property, or (ii) is authorized to sign on behalf of and bind the persons or entities who have legal possession of all common areas of the property.
Affidavit of no future harassment. “Affidavit of no future harassment” shall mean an affidavit affirming that no future harassment will occur at the property during the period for which a certification or waiver remains in effect.
Applicant. “Applicant” shall mean the person who executes an application, which person shall be an individual natural person who is either (i) an owner, or (ii) a principal or officer of an owner who is authorized to sign on behalf of and bind such owner.
Application. “Application” shall mean an application for a certification, waiver, or exemption submitted to HPD, unless the context clearly indicates reference to an application for a permit submitted to DOB.
Building loan contract. “Building loan contract” shall have the meaning set forth in § 22 of the Lien Law.
Certification. “Certification” shall mean a certification of no harassment.
Commencement of substantial work. “Commencement of substantial work” shall mean (i) if the alterations and/or demolition work for which a certification or waiver was granted is financed by a recorded building loan contract, the date upon which a lender has advanced funds in an amount that is not less than 50% of the total amount of such building loan contract and actual construction work has commenced at the property using such funds, or (ii) if the alterations and/or demolition work for which a certification or waiver was granted is not financed by a building loan contract, the actual performance and payment of not less than 50% of the total cost of such alteration and/or demolition work.
Commissioner. “Commissioner” shall mean the Commissioner of HPD or his or her designee.
DHCR. “DHCR” shall mean the Division of Housing and Community Renewal of the State of New York.
DOB. “DOB” shall mean the Department of Buildings of the City of New York.
Dwelling unit. “Dwelling unit” shall mean a dwelling unit or rooming unit, as such terms are defined in Administrative Code § 27-2004.
Exemption. “Exemption” shall mean a determination by HPD that a certification pursuant to the terms of the Administrative Code or the Zoning Resolution is not required.
Fee. “Fee” shall mean a sum in the amount of one hundred and sixty dollars ($160.00) per existing dwelling unit, which amount is a fee to offset all or part of the administrative cost to HPD of processing the application.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City of New York.
Inquiry period. “Inquiry period” shall mean (i) with respect to an application submitted pursuant to any provision of the Zoning Resolution, the period of time therein defined as the inquiry period, and (ii) with respect to an application submitted pursuant to Administrative Code §§ 28-107.1 et seq. and Administrative Code § 27-2093, a period commencing three years prior to submission of the application and ending on the date that HPD issues a final determination on the application.
Luxury hotel. “Luxury hotel” shall mean a single room occupancy multiple dwelling in which the rent on May 5, 1983, exclusive of governmentally assisted rental payments, charged for 75% or more of the total number of occupied individual dwelling units was more than 55 dollars per day for each unit rented on a daily basis, or more than 250 dollars per week for each unit rented on a weekly basis or more than 850 dollars per month for each unit rented on a monthly basis. For computation purposes, the rental value of units which were vacant on May 5, 1983 shall be deemed to be the rent charged for comparable occupied units in the property on such date.
Owner. “Owner” shall mean (i) the holder of title to the property, (ii) a contract vendee of title to the property, (iii) the lessee pursuant to a net lease of the entire property with an unexpired term of not less than ten years from the date of submission of the application, (iv) a receiver who is authorized by court order to apply to HPD for a certification and to DOB for building permits, or (v) an administrator appointed pursuant to article 7A of the Real Property Actions and Proceedings Law who is authorized by court order to aply to HPD for a certification and to DOB for building permits.
Property. “Property” shall mean the real property that is the subject of an application.
Residential kitchen. “Residential kitchen” shall mean (i) a kitchen that is located within a dwelling unit, or (ii) a kitchen serving residential occupants that is not located within a dwelling unit.
Residential bathroom. “Residential bathroom” shall mean (i) a bathroom that is located within a dwelling unit, or (ii) a bathroom serving residential occupants that is not located within a dwelling unit.
Waiver. “Waiver” shall mean a waiver of the requirement for a certification pursuant to the terms of the Administrative Code.
Zoning Resolution. “Zoning Resolution” shall mean the New York City Zoning Resolution, as amended.
§ 10-02 Scope of Rule.
(a) The requirements of this chapter apply to certifications, exemptions, and waivers pursuant to Administrative Code §§ 28-107.1 et seq., Administrative Code § 27-2093, Zoning Resolution § 96-110, Zoning Resolution § 93-90, Zoning Resolution § 98-70, Zoning Resolution § 23-013, and any subsequently enacted provision of the Administrative Code or Zoning Resolution which authorizes HPD to make determinations concerning certifications, exemptions, or waivers.
(i) increase or decrease the number of dwelling units;
(ii) alter the layout, configuration or location of any portion of a dwelling unit;
(iii) increase or decrease the number of residential kitchens or residential bathrooms; (iv) alter the layout, configuration or location of any portion of a residential kitchen or residential bathroom;
(v) demolish or change the use or occupancy of any dwelling unit and/or any portion of the building serving the dwelling units.
(2) Where the application and the accompanying plans submitted to DOB do not provide for any such changes, a certification shall not be required pursuant to Administrative Code § 28-107.3(4), but may be required pursuant to other provisions of Administrative Code §§ 28-107.1 et seq. or pursuant to the Zoning Resolution.
§ 10-03 Application.
(a) An application shall contain such information, in such form, as HPD shall require.
§ 10-04 Investigation.
(a) Except as otherwise provided in these rules, HPD shall conduct an investigation of each application for a certification.
§ 10-05 Initial Determination.
(a) Upon the completion of the investigation of an application for a certification, HPD shall either (i) reject such application as provided in 28 RCNY § 10-03, (ii) determine that there is not reasonable cause to believe that harassment occurred during the inquiry period at the property, (iii) determine that there is reasonable cause to believe that harassment occurred during the inquiry period at the property, or (iv) determine that DHCR or a court having jurisdiction has found that there has been harassment, unlawful eviction, or arson at the property during the inquiry period.
§ 10-06 Hearing.
(a) When HPD has determined in accordance with 28 RCNY § 10-05(d) that there is reasonable cause to believe that harassment occurred at the property during the inquiry period, HPD shall schedule a hearing before the Office of Administrative Trials and Hearings at which the applicant will have an opportunity to challenge such determination.
§ 10-07 Final Determination.
(a) When HPD has determined in accordance with 28 RCNY § 10-05(d) that there is reasonable cause to believe that harassment occurred at the property during the inquiry period and a hearing has been held before the Office of Administrative Trials and Hearings in accordance with 28 RCNY § 10-06, the Commissioner shall review the report and recommendation of the hearing officer and make a final determination to grant or deny the application.
§ 10-08 Certification.
(a) A certification shall be effective for three years from the date upon which such certification is signed by the Commissioner, which period shall be stated in such certification. Such certification shall apply to any plan approval, any alteration or demolition permit application, or any renewal of a permit issued for such plan approval, alteration or demolition permit application that is submitted to DOB during such period.
§ 10-09 Waiver or Exemption.
(a) Notwithstanding any provision of these rules to the contrary, if an application is for a waiver or exemption, (i) HPD may, but shall not be required to, waive the fee, and (ii) if HPD does not waive the fee, but subsequently grants such waiver or exemption, HPD may, but shall not be required to, return such check or money order to the applicant.
§ 10-10 Suspension and Rescission.
(a) HPD may rescind a certification, waiver, or exemption at any time if HPD determines that the application for such certification, waiver, or exemption contained a material misstatement of fact.
(1) If HPD determines that there is reasonable cause to believe that harassment has occurred after the date that HPD issued a certification or a waiver, HPD shall deliver a notice of suspension to the applicant and to the owner and will refer the matter for hearing at the Office of Administrative Trials and Hearings.
(2) HPD shall serve a notice of hearing by regular mail upon the applicant and any other individual or entity as determined by HPD. Such notice shall state the date, time, and location of hearing and shall inform the applicant that he or she may be represented by counsel and may present witnesses and other evidence.
(3) Upon conclusion of such hearing, the hearing officer shall make a recommendation to the Commissioner whether or not the certification should be rescinded.
(4) The Commissioner shall make a final determination whether to rescind such certification, and shall provide the applicant with written notice of such determination.
§ 10-11 Miscellaneous.
(a) Any determination by HPD pursuant to this Chapter shall be in the sole discretion of HPD.
§ 11-01 Definitions.
Whenever used in this chapter:
(i) “Lead-contaminated dust” shall mean dust containing lead at a mass per area concentration of 10 or more micrograms per square foot on a floor, 50 or more micrograms per square foot on window sills, and 100 or more micrograms per square foot on window wells, or such more stringent standards as may be adopted by the department of health and mental hygiene, the board of health, or as otherwise provided by local law.
(ii) Notwithstanding paragraph (i) of this subdivision, on and after June 1, 2021, “lead-contaminated dust” shall mean dust containing lead at a mass per area concentration of 5 or more micrograms per square foot on a floor, 40 or more micrograms per square foot on window sills, and 100 or more micrograms per square foot on window wells, or such more stringent standards as may be adopted by the board of health, provided that, if the federal environmental protection agency or a successor agency, or the federal department of housing and urban development or a successor agency, adopts lower definitions of lead-contaminated dust, the board of health shall define in the health code such lower levels as required by local law.
(aa) Replacement. “Replacement” shall mean a strategy or method of abatement that entails the removal of building components that have surfaces coated with lead-based paint and the installation of new components free of lead-based paint.
(bb) Resides. “Resides” shall mean to routinely spend 10 or more hours per week in a dwelling unit, provided however, that this subdivision shall not take effect until January 1, 2020.
(dd) Stabilization. “Stabilization” shall mean repairing any physical defect in the substrate of a painted surface that is causing paint deterioration, and removing loose paint and other material from the surface to be treated, and includes compliance with all applicable safe work practices.
(ee) Substrate. “Substrate” shall mean the material directly beneath the painted surface out of which the components are constructed, including wood, drywall, plaster, concrete, brick or metal.
(ff) Turnover. “Turnover” shall mean the occupancy of a dwelling unit subsequent to the termination of a tenancy and the vacatur by a prior tenant of such dwelling unit. Such term shall not mean temporary relocation of an occupant for purposes of performing work pursuant to article 14 of the housing maintenance code.
(gg) Underlying defect. “Underlying defect” shall mean a physical condition in a dwelling or dwelling unit that is causing or has caused paint to peel or a painted surface to deteriorate or fail, such as a structural or plumbing failure that allows water to intrude into a dwelling or dwelling unit.
(hh) Wet sanding or wet scraping. “Wet sanding” or “wet scraping” shall mean a process of removing loose paint in which the painted surface to be sanded or scraped is kept wet to minimize the dispersal of paint chips and airborne dust.
(jj) Work. “Work” shall mean any activity performed in accordance with article 14 of the housing maintenance code that disturbs paint.
(kk) Work area. “Work area” shall mean that part of a building where paint is being disturbed.
§ 11-02 Owner’s Responsibility to Remediate.
An owner shall remediate all lead-based paint hazards and underlying defects in a dwelling unit where a child of applicable age resides in accordance with the applicable work practices set forth in 28 RCNY § 11-06.
§ 11-03 Notice Inquiring About the Residency of a Child of Applicable Age.
(a) Notice upon signing of a lease, including a renewal lease, if any, or upon any agreement to lease or at the commencement of occupancy if there is no lease.
(1) The owner of a multiple dwelling erected prior to January first, nineteen hundred sixty or of a multiple dwelling erected on or after January first, nineteen hundred sixty and before January first, nineteen hundred seventy-eight, where an owner has actual knowledge of the presence of lead-based paint, shall provide to an occupant of a dwelling unit at the signing of a lease, including a renewal lease, if any, or upon any agreement to lease, or at the commencement of occupancy if there is no lease, a notice in English and Spanish inquiring whether a child of applicable age resides or will reside therein. If there is a lease, such notice will be attached as a rider to the lease. In addition, such owner shall deliver to the occupant at the time the occupant signs a lease, if any, or upon any agreement to lease, or, at the commencement of occupancy if there is no lease, the pamphlet developed by the department of health and mental hygiene pursuant to § 17-179(b) of the administrative code of the city of New York. Such notice shall be printed on a single form, the content of which shall be as specified in Appendix A hereto, and shall be printed in not less than ten point type, and shall bear the title “Prevention of Lead-based Paint Hazards – Inquiry Regarding Child”. Such notice shall be in duplicate, one copy of which will be for the occupant’s records, and one copy of which will be returned to the owner. Such notice shall be kept for a period of ten years from the date of receipt by the owner or transferred to a subsequent owner and maintained by such subsequent owner during such time period, and made available to the department upon request. The notice provided at the signing of a lease, or upon any agreement to lease, or at the commencement of occupancy if there is no lease, shall also contain a statement, signed by such owner, stating that he or she has complied with the provisions concerning apartments at turnover pursuant to § 27-2056.8 of Article 14 of the housing maintenance code and 28 RCNY § 11-05, and that he or she has delivered such pamphlet developed by the department of health and mental hygiene to the occupant.
(2) No occupant in a dwelling unit in such multiple dwelling shall refuse or unreasonably fail to provide accurate and truthful information regarding the residency of a child of applicable age therein, nor shall an occupant refuse access to the owner at a reasonable time and upon reasonable prior notice to any part of the dwelling unit for the purpose of investigation and repair of lead-based paint hazards.
(3) Where an occupant has responded to the notice provided by the owner pursuant to paragraph (1) of this subdivision by indicating that no child of applicable age resides therein or has failed to respond to such notice, if a child of applicable age subsequently comes to reside in such dwelling unit at any time during the immediately following year prior to the delivery of the annual notice by the owner pursuant to subdivision (b) of this section, the occupant shall have the duty to inform the owner in writing that such child has come to reside therein.
(1) Each year an owner of a multiple dwelling erected prior to January first, nineteen hundred sixty shall cause to be delivered to each residential unit a notice in English and Spanish inquiring as to whether a child of applicable age resides therein and advising the occupant of his or her duty to report the presence of such child in writing.
(2) Such notice shall be delivered as provided in § 27-2056.4(e) of article 14 of the housing maintenance code, no earlier than January first and no later than January sixteenth, provided, however, that if such notice is enclosed with the January rent bill, such notice may be delivered no sooner than December fifteenth and no later than January sixteenth.
(3) Such notice shall be printed on a single form, the content of which shall be as specified in Appendix B hereto, and shall be printed in not less than ten point type, and shall bear the title “Prevention of Lead-based Paint Hazards – Inquiry Regarding Child”. Such notice may be combined with the annual window guard notice required by 24 RCNY Chapter 12 in a form approved by the department of health and mental hygiene. Such notice shall be in duplicate, one copy of which will be for the occupant’s records, and one copy of which will be returned to the owner. Such notice shall be kept for a period of ten years from the date of receipt by the owner or transferred to a subsequent owner and maintained by such subsequent owner during such time period, and made available to the department upon request.
(4) Upon receipt of such notice, the occupant shall have the duty to deliver a written response to the owner indicating whether a child of applicable age resides in the dwelling unit, by February fifteenth of the year in which the notice is sent. Where an occupant has responded to the notice provided by the owner pursuant to paragraph one of this subdivision by indicating that no child of applicable age resides therein, or has failed to respond to such notice, if a child of applicable age subsequently comes to reside in such dwelling unit at any time prior to delivery of the next annual notice, the occupant shall have the duty to inform the owner in writing that such child has come to reside therein.
(5) If, subsequent to the delivery of such annual notice, the owner does not receive a written response by February fifteenth, and does not otherwise have actual knowledge as to whether a child of applicable age resides therein, then the owner shall at reasonable times and upon reasonable notice inspect the occupant’s dwelling unit to ascertain whether a child of applicable age resides therein. Where, between February sixteenth and March first of that year the owner has made reasonable attempt to gain access to the dwelling unit and was unable to gain access, the owner shall notify the department of health and mental hygiene of that circumstance in writing.
§ 11-04 Investigation for Lead-Based Paint Hazards.
(a) In any dwelling unit in a multiple dwelling erected prior to January first, nineteen hundred sixty where a child of applicable age resides, and in any dwelling unit in a multiple dwelling erected on or after January first, nineteen hundred sixty and before January first, nineteen hundred seventy-eight, where a child of applicable age resides and the owner has actual knowledge of the presence of lead-based paint, and in common areas of such multiple dwellings, the owner shall cause a visual inspection to be made for peeling paint, chewable surfaces, deteriorated subsurfaces, friction surfaces and impact surfaces. A visual inspection for lead-based paint hazards shall include every surface in every room in the dwelling unit, including the interiors of closets and cabinets. Such inspection shall be undertaken at least once a year and more often if necessary, such as when, in the exercise of reasonable care, an owner knows or should have known of a condition that is reasonably foreseeable to cause a lead-based paint hazard, or an occupant makes a complaint concerning a condition that is likely to cause a lead-based paint hazard or requests an inspection, or the department issues a notice of violation or orders the correction of a violation that is likely to cause a lead-based paint hazard.
§ 11-05 Turnover of Dwelling Units.
(a) Upon turnover of any dwelling unit in a multiple dwelling erected prior to January first, nineteen hundred and sixty, or of a dwelling unit in a private dwelling erected prior to January first, nineteen hundred and sixty where each dwelling unit is to be occupied by persons other than the owner or the owner's family, the owner shall within such dwelling unit have the responsibility to:
(1) remediate all lead-based paint hazards and any underlying defects, when such underlying defects exist;
(2) make all bare floors, window sills, and window wells in the dwelling unit smooth and cleanable;
(3) provide for the removal or permanent covering of all lead-based paint on all friction surfaces on all doors and door frames; and
(4) provide for the removal or permanent covering of all lead-based paint on all friction surfaces on all windows, or provide for the installation of replacement window channels or slides on all lead-based painted friction surfaces on all windows.
§ 11-06 Safe Work Practices.
(a) Filing procedures. Not less than ten days prior to commencement of work that will disturb lead-based paint pursuant to § 27-2056.11(a)(2)(ii) of article 14 of the housing maintenance code, an owner shall file with the department of health and mental hygiene a notice of the commencement of the work. Such notice shall be signed by the owner or by a representative of the firm performing the work. Where work is required to be commenced in a lesser period of time than that specified herein for the filing of a notice of commencement of work, then such filing shall be made as soon as practicable but prior to the commencement of work. Such notice shall be in a form satisfactory to or prescribed by the department of health and mental hygiene and shall set forth at a minimum the following information:
(1) The name, address and telephone number of the owner of the premises in which the lead-based paint work is to be performed;
(2) The address of the building and the specific location of the lead-based paint work within the building;
(3) The name, address and telephone number of the firm who will be responsible for performing the work;
(4) The date and time of commencement of the work, working or shift hours, and the expected date of completion;
(5) A complete description and identification of the surfaces and structures, and surface areas, subject to the work; and
(6) Any changes in the information contained in the notice required by this section shall be filed with the department of health and mental hygiene prior to commencement of work, or if work has already commenced, within 24 hours of any such change.
(1) Abatement. All work conducted as part of an abatement as defined in this chapter shall be performed by firms and personnel certified to perform lead-based paint activities in accordance with regulations issued by the United States environmental protection agency at subpart L of 40 C.F.R. Part 745 for the abatement of lead hazards, or successor rule.
(2) Work ordered by the department to correct a lead-based paint hazard violation in accordance with § 27-2056.11(a)(1) of article 14 of the housing maintenance code, or work performed pursuant to § 27-2056.11(a)(2)(ii) of article 14 of the housing maintenance code, shall be performed in accordance with the following requirements:
(i) Firm requirements. Firms conducting such work shall be certified to perform lead abatement by the United States environmental protection agency in accordance with subpart L of 40 C.F.R. Part 745 for the abatement of lead hazards, or successor rule.
(ii) Worker requirements. Workers conducting such work shall be trained, at a minimum, in accordance with the regulations issued by the United States department of housing and urban development at 24 C.F.R. § 35.1330(a)(4), or successor rule, or under an equivalent program approved by the department or the department of health and mental hygiene.
(iii) Clearance dust testing. No person shall perform a lead-contaminated dust clearance test pursuant to this section unless such person is a third party, who is independent of the owner and any individual or firm that performs such work. All personnel performing lead-contaminated dust clearance testing after completion of such work shall be trained, at a minimum, in accordance with regulations issued by the United States department of housing and urban development at 24 C.F.R. § 35.1340(b)(1), or successor rule, or under an equivalent program approved by the department or the department of health and mental hygiene.
(3) Work performed in accordance with § 27-2056.11(a)(2)(i) of article 14 of the housing maintenance code, shall be performed in accordance with the following requirements:
(i) Worker requirements. Workers conducting such work shall be trained under regulations issued by the United States department of housing and urban development at 24 C.F.R. § 35.1330(a)(4), or successor rule, or under an equivalent program approved by the department or the department of health and mental hygiene.
(ii) Clearance dust testing. No person shall perform a lead-contaminated dust clearance test pursuant to this section unless such person is a third party, who is independent of the owner and any individual or firm that performs such work. Personnel performing lead-contaminated dust clearance testing after completion of such work shall be trained in accordance with regulations issued by the department of housing and urban development at 24 C.F.R. § 35.1340(b)(1), or successor rule, or under an equivalent program approved by the department or the department of health and mental hygiene.
(4) Work performed in a dwelling unit upon turnover in accordance with § 27-2056.8 of article 14 of the housing maintenance code. No person shall perform a lead-contaminated dust clearance test pursuant to this paragraph unless such person is a third party, who is independent of the owner and any individual or firm that performs the work upon turnover. Personnel performing lead-contaminated dust clearance testing after completion of such work shall be trained in accordance with regulations issued by the department of housing and urban development at 24 C.F.R. § 35.1340(b)(1), or successor rule, or under an equivalent program approved by the department or the department of health and mental hygiene.
(1) The name, address, and telephone number of the person or entity who performed the work; the start date and completion date for the work;
(2) A copy of all licenses and training certificates, required pursuant to subdivision (b) of this section, for the firms and personnel who performed work and lead-contaminated dust clearance testing;
(3) The location of the work performed in each room including a description of such work and invoices for payment for such work;
(4) Results of lead-contaminated dust clearance tests analyzed by an independent laboratory certified by the state of New York;
(5) Checklists completed pursuant to (g)(1)(ix)(F)(f) when occupants are allowed temporary access to a work area; and
(6) Such records shall be maintained by such owner for a period of ten years from the date of completion of such work or transferred to a subsequent owner and maintained by such subsequent owner during such time period, and made available to the department upon request.
(1) Minimizing dust dispersion. Work that disturbs lead-based paint as defined in this chapter shall be carried out in such a manner as to minimize the penetration or dispersal of lead contaminants or lead-contaminated materials from the work area to other areas of the dwelling unit and building or adjacent outdoor areas.
(2) An area designated as a clean changing area shall be segregated from the work area by a physical barrier to prevent the penetration or dispersal of lead contaminants or lead-contaminated materials from the work area to other areas of the dwelling unit and building and to prevent occupant exposure to materials containing lead.
(3) Repair of lead-based paint hazard violations may be performed by wet sanding, wet scraping, removal, enclosure, encapsulation, replacement or abatement except where otherwise specified in article 14 of the housing maintenance code or these rules.
(1) Open flame burning or torching.
(2) Machine sanding or grinding without HEPA local exhaust control.
(3) Abrasive blasting or sandblasting without HEPA local exhaust control.
(4) Heat guns operating above 1,100 degrees Fahrenheit or charring the paint.
(5) Dry sanding or dry scraping.
(6) Paint stripping in a poorly ventilated space using a volatile stripper that is a hazardous substance in accordance with regulations of the United States consumer product safety commission at 16 C.F.R. § 1500.3, and/or a hazardous chemical in accordance with the United States occupational safety and health administration regulations at 29 C.F.R. §§ 1910.1200 or 1926.59, as applicable to the work.
(1) All tools and materials used when disturbing paint shall be used in accordance with the manufacturer’s instructions.
(2) Wet sanding, wet scraping, removal, enclosure, encapsulation, replacement, abatement and other maintenance and repair activities shall be performed using standard construction and treatment methods, and in accordance with manufacturer’s instructions, where applicable.
(3) All surfaces where paint has been disturbed shall be sealed and finished with appropriate materials. Underlying surface substrates shall be dry and protected from future moisture before applying a new protective coating or paint, and all paints and coatings shall be applied in accordance with the manufacturer’s recommendations.
(1) Work ordered by the Department to correct a lead-based paint hazard violation in accordance with § 27-2056.11(a)(1) of article 14 of the housing maintenance code, or work performed pursuant to § 27-2056.11(a)(2)(ii) of article 14 of the housing maintenance code.
(i) Postings. The following information shall be conspicuously posted no later than twenty-four hours prior to beginning work and shall remain in place until the work area has been cleared for re-occupancy:
(A) Notice of commencement of work information submitted to the department of health and mental hygiene pursuant to § 27-2056.11(a)(2)(ii) of article 14 of the housing maintenance code. Such information shall be posted at the entrance to the dwelling and at the entrance to the dwelling unit.
(B) A warning sign of at least 8 1/2” by 11” with letters at least one inch high, reading as follows: WARNING: LEAD WORK AREA – POISON – NO SMOKING OR EATING. Such information shall be posted adjacent to the work area.
(ii) Pre-cleaning and protecting moveable items. All floors, moveable furniture, draperies, carpets, or other objects in the work area shall be HEPA-vacuumed or washed; all moveable items shall then be moved out of the work area or otherwise covered with two layers of six-mil disposable polyethylene sheeting before work begins. Such sheeting shall be taped together with waterproof tape, and taped to the floors or bottom of the walls or baseboards, so as to form a continuous barrier to the penetration of dust.
(iii) Sealing vents. Forced-air systems within the room where work that disturbs lead-based paint is occurring shall be turned off and covered with two layers of six-mil polyethylene sheeting and waterproof tape to prevent lead contamination and lead dispersal to other areas.
(iv) Affixing doorway entrance flap. After all moveable objects have been removed, the work area shall be sealed off from non-work areas by taping with waterproof tape, two layers of disposable, six-mil polyethylene sheeting over every entrance or doorway to the work area, as follows: To deter the dispersal of lead dust one sheet shall be taped along all sides of the doorway and a slit shall be cut down the middle of the sheeting, leaving intact at least six inches of sheeting on the top and six inches of sheeting on the bottom of the doorway. A second sheet of polyethylene large enough to cover the doorway, shall be attached to the top of the doorway in the room or area where work is being conducted and shall act as a flap opening into the work area.
(v) Covering floors. The floor of the work area shall be covered with at least two sheets of disposable six-mil polyethylene sheeting. Such sheeting shall be taped together with waterproof tape, and taped to the bottom of the walls or baseboard, so as to form a continuous barrier to the penetration of dust to the floor. The furniture and non-moveable furnishings, such as counters, cabinets, and radiators in the work area shall be removed or covered with such taped sheeting.
(vi) Sealing openings. All openings, including windows, except those required to be open for ventilation, not sealed off or covered in accordance with subdivision (g)(1)(iii) of the section, shall be sealed with two layers of six-mil polyethylene sheeting and waterproof tape to prevent the penetration or dispersal of lead contaminants or lead-contaminated material.
(vii) Instructing occupants. Occupants shall be instructed by the owner and contractor to avoid entering the work area until final clearance levels have been achieved.
(viii) Hazardous materials. All paints, thinners, solvents, chemical strippers or other flammable materials shall be delivered to the building and maintained during the course of the work in their original containers bearing the manufacturer’s labels, and all material safety data sheets, as may be required by law, shall be on-site and shall be made available upon request to the occupants of the dwelling unit.
(ix) Clean-up and lead-contaminated dust clearance testing procedures.
(A) Daily clean-up. At the completion of work each day, the work area shall be thoroughly wet-mopped or HEPA-vacuumed. No polyethylene sheeting, drop cloths, or other materials that are potentially hazardous to young children or infants shall be accessible outside the work area. In addition, any work area and other adjoining area exposed to lead or lead-contaminated materials shall be cleaned as follows: (a) Large debris. Large demolition-type debris (e.g., door, windows, trim) shall be wrapped in six-mil polyethylene, sealed with waterproof tape, and moved to the area designated for trash storage on the property to be properly disposed of in a lawful manner. (b) Small debris. Small debris shall be HEPA-vacuumed or wet swept and collected. Before wet sweeping occurs, the affected surfaces shall be sprayed with a fine mist of water to keep surface dust from becoming airborne. Dry sweeping is prohibited. The swept debris and all disposable clothing and equipment shall be placed in double four-mil or single six-mil plastic bags which shall be sealed and stored with other contaminated debris in the work area and shall be properly disposed of in a lawful manner. (c) Clean-up adjacent to the work area. On a daily basis, as well as during final clean-up, the area adjacent and exterior to the work area shall be examined visually to ensure that no lead debris has escaped containment. Any such debris shall be wet swept and HEPA-vacuumed, collected and disposed of as described above. (d) Supply storage. Upon finishing work for the day, all rags, cloths and other supplies used in conjunction with chemical strippers or other flammable materials, or materials contaminated with lead dust or paint shall be stored at the end of each work day in sealed containers or removed from the premises, in a lawful manner.
(B) Final clean-up. Final cleaning shall be performed as follows, in the following sequence: (a) The final cleaning process shall start no sooner than one (1) hour after lead-based paint disturbance activities have been completed, but before repainting, if necessary. (b) First, all polyethylene sheeting shall be sprayed with water mist and swept prior to removal. Polyethylene sheeting shall be removed by starting with upper-level polyethylene, such as that on windows, cabinets and counters, folding the corners, ends to the middle, and placing in double four-mil or single six-mil plastic bags. Plastic bags shall be sealed and properly disposed of in a lawful manner. (c) Second, all surfaces in the work area shall be HEPA-vacuumed. Vacuuming shall begin with ceilings and proceed down the walls to the floors and include furniture and carpets. (d) Third, all surfaces in the work area shall be washed with a detergent solution. Washing shall begin with the ceiling and proceed down the walls to the floor. Wash water shall be properly disposed of in a lawful manner. (e) Fourth, all surfaces exposed to lead dust generated by the lead-based paint disturbance process shall be HEPA-vacuumed again. Vacuuming shall begin with ceilings and proceed down the walls to the floors and include furniture and carpets. (f) Fifth, all surfaces shall be inspected to ensure that all surfaces have been cleaned and all visible dust and debris have been removed. If all visible dust and debris have not been removed, affected surfaces shall be re-cleaned.
(C) Final inspection. After final clean-up, and re-painting if necessary, has been completed, a final inspection shall be made by a third party retained by the owner who is independent of the owner and the contractor. The final clearance evaluation shall include a visual inspection and lead-contaminated dust clearance testing. Three wipe samples shall be collected and tested from each room or area where work has been conducted; one wipe sample contaminated dust clearance samples shall be collected and tested from the floor in rooms or areas immediately adjacent to the work area.
(D) Clearance for re-occupancy.
(a) Lead-contaminated dust levels in excess of the following constitute contamination and require repetition of the clean-up and testing process in all areas where such levels are found. Areas where every lead-contaminated dust sample result is below the following levels may be cleared for re-occupancy:
| Floors: | 10 micrograms of lead per square foot. |
|---|---|
| Window Sills: | 50 micrograms of lead per square foot. |
| Window Wells: | 100 micrograms of lead per square foot. |
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(b) Only upon receipt of laboratory test results showing that the above dust lead levels are not exceeded in the dwelling may the work area be cleared for permanent re-occupancy. However, temporary access to work areas may be allowed, provided that clean-up is completed and dust test samples have been collected in compliance with this section. The owner shall provide all lead-contaminated dust clearance test results to the occupants of the dwelling or dwelling unit.
(c) On and after June 1, 2021, lead contaminated dust levels in excess of the following constitute contamination and require repetition of the clean-up and testing process in all areas where such levels are found, unless the board of health adopts more stringent standards in accordance with local law:
| Floors: | 5 micrograms of lead per square foot. |
|---|---|
| Window Sills: | 40 micrograms of lead per square foot. |
| Window Wells: | 100 micrograms of lead per square foot. |
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(E) Relocation. An owner shall request that an occupant temporarily relocate from a unit pending completion of work where it appears that work cannot be performed safely with occupants in residence. Such owner shall offer a suitable, decent, safe and similarly accessible dwelling unit that does not have lead-based paint hazards to such occupants for temporary relocation. Unreasonable refusal by such occupants to relocate pursuant to such offer shall constitute a refusal of access under housing maintenance code §§ 27-2009 and 27-2056.4(b), and, where applicable, 9 NYCRR § 2524.3(e). Relocation shall not be required provided that work can be done safely with occupants in residence, and provided further that at the end of each day of work, the work area is properly cleaned as specified in subdivision (g)(1)(ix)(A) of this section; occupants have safe access to areas adequate for sleeping; occupants have bathroom and kitchen facilities available to them; occupants have safe access to entry/egress pathways; and the work does not create other safety hazards (e.g., exposed electrical wiring or holes in the floor).
(F) Temporary access to the work area when occupants not relocated. When occupants are not relocated, temporary access may be allowed to areas in which work is in progress after work has ceased for the day, provided that at the end of each work day:
(a) Any work area to be accessed is properly cleaned as specified in the daily clean-up requirements of subdivision (g)(1)(ix)(B)(b) through (d) and (f);
(b) There are no safety hazards (including, but not limited to, exposed electric wiring or holes in the floor) or covered vents;
(c) Floor coverings containing leaded dust and debris and hazardous materials are removed;
(d) Floors in the work area are re-covered with a non-skid floor covering securely taped to the floor;
(e) Work areas are prepared in accordance with the requirements above when work recommences; and
(f) At the end of each workday, and before access is permitted, a checklist indicating compliance with these conditions is completed and signed by the person responsible for overseeing the work. No person shall make a false, untrue or misleading statement or forge the signature of another person on any document or record required to be prepared pursuant to these rules.
(g) Temporary access in accordance with these provisions may be allowed for no longer than five days. If work has not resumed within five days, temporary access may continue only if the person responsible for overseeing the work has repeated the actions required by clauses (a) through (f) of this subparagraph (F).
Nothing herein shall extend the time for compliance with any violation issued pursuant to article 14 of the housing maintenance code.
(2) Work performed in accordance with § 27-2056.11(a)(2)(i) of article 14 of the housing maintenance code that disturbs lead-based paint.
(i) Postings. A warning sign shall be posted in accordance with subdivision (g)(1)(i)(B) of this section and caution tape shall be placed across the entrance to the work area.
(ii) Pre-cleaning and protecting moveable items. All floors, moveable furniture, draperies, carpets, or other objects in the work area shall be HEPA-vacuumed or washed; all moveable items shall then be moved out of the work area or otherwise covered with polyethylene plastic or equivalent sheeting. All plastic or equivalent sheeting used during the performance of the work shall be of sufficient thickness and durability to prevent tearing during the performance of the work. Such sheeting shall be of sufficient length and width to prevent dust and other debris generated by the work from spreading to areas unprotected by such sheeting. Such sheeting must be adequately secured to prevent movement of the sheeting during the performance of the work.
(iii) Covering floors. The floor of the work area shall be covered with polyethylene plastic or equivalent sheeting. All plastic or equivalent sheeting used during the performance of the work shall be of sufficient thickness and durability to prevent tearing during the performance of the work. Such sheeting shall be of sufficient length and width to prevent dust and other debris generated by the work from spreading to areas unprotected by such sheeting. Such sheeting must be adequately secured to prevent movement of the sheeting during the performance of the work. Multiple layers of polyethylene sheeting shall be used as needed to prevent dust from contaminating the floor.
(iv) Sealing openings. Where applicable, forced air systems in the work area shall be turned off and any openings in the work area shall be sealed with polyethylene or equivalent sheeting to prevent the penetration or dispersal of lead contaminants or lead-contaminated material.
(v) Instructing occupants. Occupants shall be instructed by the owner and contractor to avoid entering the work area until final clean up has been completed.
(vi) Hazardous materials. All paints, thinners, solvents, chemical strippers or other flammable materials shall be delivered to the building and maintained during the course of the work in their original containers bearing the manufacturer’s labels, and all material safety data sheets, as may be required by law, shall be on-site and shall be made available upon request to the occupants of the dwelling unit.
(vii) Clean-up and lead-contaminated dust clearance testing shall be conducted in accordance with subdivision (g)(1)(ix) of this section.
(viii) Relocation and temporary access to work areas when occupants are not relocated, where provided, shall be performed in accordance with (g)(1)(ix)(E) and (F) of this section.
(3) Work performed in a dwelling unit on turnover in accordance § 27-2056.8 of article 14 of the housing maintenance code.
(i) Preparation. The procedures described in subdivision (g)(2)(i)-(iv) of this section shall be followed.
(ii) Clean-up. At the completion of work, the work area shall be thoroughly wet-mopped or HEPA-vacuumed and a visual examination shall be conducted in the work area and the area adjacent and exterior to the work area. Any noted lead-contaminated dust or debris shall be wet-mopped or HPEA-vacuumed. All rags, cloths and other supplies used in conjunction with chemical strippers or other flammable materials, or materials contaminated with lead dust or paint shall be stored at the end of each work day in sealed containers or removed from the premises, in a lawful manner.
(iii) Lead-contaminated dust clearance testing. Lead-contaminated dust clearance testing shall be conducted in accordance with subdivision (g)(1)(ix)(C)-(D) of this section.
§ 11-07 Presumption.
(a) In any multiple dwelling erected prior to January first, nineteen hundred sixty, it shall be presumed that the paint or other similar surface-coating material in any dwelling unit where a child of applicable age resides or in the common areas of such multiple dwelling is lead-based paint.
(i) a sworn written statement, supported by lead-based paint testing or sampling results, including a description of the testing methodology and manufacturer and model of instrument used to perform such testing or sampling;
(ii) a sworn written statement by the person who performed the testing if performed by an employee or agent of the owner which shall include a copy of the certificate of training as a certified lead-based paint inspector or risk assessor as provided in subdivision (d) of this section;
(iii) a copy of the inspection report provided by the person who performed the testing or sampling which shall include a description of the surfaces in each room where such testing or sampling was performed; and
(iv) a copy of the results of such testing and/or such laboratory tests of paint chip samples performed by an independent laboratory certified by the state of New York where such testing has been performed.
(2) Such written statement and all supporting documentation shall be submitted to the department not later than six (6) days before the date set for correction in the notice of violation in accordance with paragraph (1) of this subdivision, and may only be submitted to rebut the presumption where the department has not performed an XRF test prior to issuing such violation. Receipt by the department of a complete application in accordance with this subdivision including such written statement and such supporting documentation shall toll the time period to correct the violation. Receipt of an incomplete application shall not toll the time period for correction of the violation.
(3) The department shall notify the registered owner, registered officer or director of a corporate owner or registered managing agent of such multiple dwelling of its determination in writing, and, if the department determines that such presumption has not been rebutted, such notice shall set a date for correction of the violation.
§ 11-08 Exemption from Presumption – Lead Free and Lead Safe.
(a) A registered owner or registered officer or director of a corporate owner, a registered managing agent of a multiple dwelling erected prior to January first, nineteen hundred sixty, an authorized representative of a governmental agency as approved by the department, or, where title to such multiple dwelling is held by a cooperative housing corporation or the units in such multiple dwelling are owned as condominium units, a representative of the corporation or the condominium board of managers may apply to the department, in writing, for a lead free or a lead safe exemption of the application of the presumption established under article 14 of the housing maintenance code and 28 RCNY § 11-07 with respect to such multiple dwelling or any part thereof, provided further, that where title to such multiple dwelling is held by a cooperative housing corporation or the units in such multiple dwelling are owned as condominium units, the shareholder of record on the proprietary lease or the owner of record of such condominium unit, as is applicable, may apply to the department for such exemption for his or her individual unit where such presumption is or may become applicable.
(2) Lead Safe Exemption. A lead safe exemption will be granted where the owner or such other person specified in subdivision (a) of this section submits a written determination made by a lead-based paint inspector or risk assessor certified pursuant to subparts L and Q of 40 C.F.R. part 745 or successor provisions, and in accordance with 40 C.F.R. § 745.227(b), or Chapter 7 of the department of housing and urban development’s Guidelines for Evaluation and Control of Lead-Based Paint Hazards in Housing (2012), that lead-based paint on each surface and component (i) in each dwelling unit from which lead-based paint was not fully removed or replaced, or (ii) in each dwelling unit in a property if the exemption is based upon the appropriate sampling combination of components and surfaces in each unit, or (iii) in a common area of a multiple dwelling, has been contained so that each surface tested is negative for such lead-based paint or has been encapsulated. For purposes of this section, the term “contained” shall mean that every surface containing lead-based paint has been temporarily covered, enclosed and sealed with sheetrock or similar durable construction material to eliminate gaps which may allow access to or dispersion of dust or other matter from the underlying surface.
(3) For purposes of an application for an exemption pursuant to paragraphs (1) or (2) of this subdivision, where surfaces or components within the dwelling unit can be demonstrated by the owner, to the satisfaction of the department, to have a common construction and painting history, the lead-based paint inspector or risk assessor performing such testing may test a sample of the surfaces and components having such common construction and painting history within the dwelling unit or common area to make such determination, in accordance with 40 C.F.R. § 745.227(b), or Chapter 7 of the department of housing and urban development’s Guidelines for Evaluation and Control of Lead-Based Paint Hazards in Housing (2012) Lead Based Paint Inspection, V. Inspections in Multi-family Housing, Table 7-3, Number of Units to be tested in Multi-family Building or Developments. In the absence of such documentation by the owner, or visual inspection by the certified individual, the certified individual must test each dwelling unit in order to provide the required certification. In addition, a list of any building components that would reasonably be expected to contain paint that have not been tested, and the reason that such building component has not been tested, must be included in the exemption application submission, along with a sketch or sketches of the rooms tested that is consistent with the XRF report of testing locations.
(2) (i) The department may revoke a lead safe exemption granted pursuant to this section where the department determines, after inspection, that a surface in any dwelling unit for which lead-based paint was contained or to which an encapsulant was applied is no longer intact or sealed.
(ii) The department may revoke a lead safe or lead free exemption upon failure by an owner to provide records related to encapsulation or containment monitoring as requested by the Department.
(3) The department shall revoke a lead safe or lead free exemption upon the:
(i) issuance of a denial of a rebuttal of a lead-based paint violation based upon the presumption of lead paint for such dwelling unit filed pursuant to subdivision a of § 27-2056.5 where the department finds that lead-based paint was present on a surface that was subject to such exemption,
(ii) issuance of a lead-based paint violation based upon testing by the department for such dwelling unit,
(iii) issuance of an order to abate lead-based paint hazards or unsafe lead-based paint by the department of health and mental hygiene,
(iv) issuance of a denial of an objection to such a commissioner’s order to abate filed pursuant to 24 RCNY Health Code § 173.13, or
(v) issuance of a determination that the exemption was based upon fraud, mistake, or misrepresentation.
(4) For exemptions that were approved prior to the effective date of the rule promulgated by the department pursuant to paragraph (b) of subdivision (7) of § 27-2056.2 of the administrative code, a lead free or lead safe exemption shall be deemed revoked upon the turnover of a dwelling unit on or after such effective date and subject to subdivision (f) of this section.
(5) The department shall provide written notification to the owner upon making a determination to revoke a lead safe or lead free exemption, and such multiple dwelling or part thereof, or dwelling unit shall be subject to all applicable provisions of article 14 of the housing maintenance code.
(6) Absent fraud, mistake or misrepresentation in the initial application, an owner may reapply for the lead safe exemption by showing that the surface for which the lead-based paint was no longer contained or encapsulated has been repaired and resealed, and that the surfaces found to test positive for the presence of lead based paint subsequent to revocation of the lead safe exemption no longer test positive for such paint, where applicable, or have been properly encapsulated or contained. Alternatively, such owner may submit an application for a lead free exemption. The application must include testing to show that the surfaces found to test positive for the presence of lead-based paint subsequent to revocation of the lead free exemption no longer test positive for lead-based paint.
(2) An owner may also apply for a lead free or lead safe exemption for the first time on or after the effective date of the rule promulgated by the department pursuant to paragraph (b) of subdivision (7) of § 27-2056.2 of the administrative code as provided in this section, and the testing required pursuant to this section shall be performed using the definition of lead-based paint in effect on and after such date.
§ 11-09 Certification of Correction of Lead-Based Paint Hazard Violation.
(a) A registered owner or registered officer or director of a corporate owner or registered managing agent shall submit a certification of correction of a lead-based paint hazard violation issued pursuant to § 27-2056.6 of article 14 of the housing maintenance code and these rules within five (5) days of the date set for correction in the notice of violation. Such certification shall be made in writing, under oath by the registered owner, a registered officer or director of a corporate owner or by the registered managing agent and shall include the following:
(1) the date that the violation was corrected, and a statement that the violation was corrected in compliance with article 14 of the housing maintenance code and 28 RCNY § 11-06;
(2) the results of laboratory tests performed by an independent laboratory certified by the state of New York for lead-contaminated dust clearance tests performed pursuant to § 27-2056.11(b) and (d) of the housing maintenance code and 28 RCNY § 11-06(g)(1)(ix)(C) and (D);
(3) a copy of the certificate of training required pursuant to 28 RCNY § 11-06(b)(2)(iii) qualifying the person who performed the lead-contaminated dust clearance testing; and
(4) a sworn statement by the person or firm who performed the work necessary to correct the violation that such work was performed in accordance with the applicable provisions of § 27-2056.11 of article 14 of the housing maintenance code and the applicable provisions of 28 RCNY § 11-06; and
(5) a copy of the certification by the United States environmental protection agency of the firm that performed the work as required pursuant to 28 RCNY § 11-06(b)(2)(i).
§ 11-10 Postponements.
(a) An owner may apply to the department in writing for postponement of the time to correct a lead-based paint hazard violation issued pursuant to § 27-2056.6 of article 14 of the housing maintenance code within the five days preceding the date set for correction of such violation pursuant to § 27-2115(l)(1).
(2) The department may grant a postponement of the time to correct a lead-based paint hazard violation in excess of the twenty-eight days provided for in paragraph (1) of this subdivision, where the department determines that the work to be done to remediate the violation includes one or more substantial capital improvements to be made in conjunction with such work, and that such improvements will significantly reduce the presence of lead-based paint in such multiple dwelling or dwelling unit, provided that the paint which is the subject of the violation is stabilized. An owner who applies for such longer postponement shall submit an application within the time period specified in subdivision (a) of this section, and shall include with such application such documentation as the department may require to make its determination, which may include, but is not limited to, written contracts for work, building permits, plans filed with the department of buildings; invoices for materials purchased; and evidence that work has commenced and substantial progress has been made.
§ 11-11 Audit and Inspection by the Department.
(a) Upon the issuance of a commissioner's order to abate by the commissioner of the department of health and mental hygiene pursuant to 24 RCNY Health Code § 173.13, the department shall require that an owner submit to it all records required to be kept by such owner pursuant to article 14 of the housing maintenance code and these rules. If such order to abate has been issued, such records shall be submitted to the department within 45 days of written demand for such records by the department. In all other cases, the time period for submission shall be stated in writing to the owner, and shall be in the discretion of the department, but shall be no less than 45 days.
§ 11-12 Additional Audits.
(a) Upon the issuance by the department of a demand for records to determine compliance with the requirements of article 14 of the housing maintenance code, the department may require that an owner submit to it records required to be kept by such owner pursuant to article 14 of the housing maintenance code and these rules. The department may perform such audits at any time, and, in addition, shall perform such audits for a minimum of 200 buildings each fiscal year. Such records must be submitted to the department within 45 days of written demand for such records by the department, or within such other time period not less than 45 days as shall be stated in writing to the owner, in the discretion of the department.
(i) buildings with peeling lead based paint violations issued as a result of a positive XRF test;
(ii) buildings with violations that have been issued for other indicators of deteriorated subsurfaces including, but not limited to, mold and leaks;
(iii) buildings selected from a random sample of buildings based on data on the prevalence of elevated blood lead levels in certain geographic areas identified by the department of health and mental hygiene; and
(iv) buildings selected from a random sample of buildings that are subject to the presumption in § 27-2056.5 of article 14 of the housing maintenance code.
The buildings selected may be subject to further selection criteria including building size, date of issuance of violations, percentage of units with housing maintenance code violations, and location.
(1) Proof of delivery to the occupant of each dwelling unit of the annual notice required to be provided by 28 RCNY § 11-03(b), including:
(i) An affidavit of Delivery/Email/Mail from an owner’s delivery, mailing or email service company or the owner (if sent directly by the owner) providing the following information: Complete service’s or owner’s name, address, contact information, and date of the affidavit; name of the service’s or owner’s representative who performed the delivery/mailing/emailing on behalf of the owner of the annual notice required to be provided by 28 RCNY § 11-03(b); and a sample copy of such annual notice in English and Spanish that was delivered/mailed/ emailed to occupants of the owner’s building;
(ii) A complete list of recipient dwelling units with the building address, each dwelling unit number and the date of delivery to each dwelling unit or the date of the email/mail notice sent to each dwelling unit; and
(iii) Whenever applicable, a complete list of any dwelling units in the building for which there is a lead exemption obtained from the department for the dwelling unit that is in effect during the audit period; and a complete list of owner/shareholder-occupied cooperative or condominium dwelling units during the audit period, where the owner was not required to provide such annual notice to such owner/ shareholder. Any such lists must be signed by the owner.
(2) Annual notice response received from the occupant of each dwelling unit, including:
(i) A list of the dwelling units that received the annual notice required to be provided by 28 RCNY § 11-03(b), with an indication of whether each dwelling unit responded and, if so, the substance of such response, including whether a child under six resides in such dwelling unit, based on either the occupant’s verbal or written response or the owner’s inspection/knowledge;
(ii) Copies of the completed and returned annual notices, where received. Such annual notice must have the building address, dwelling unit number, and occupant’s name, signature and date, where received; and
(iii) For those dwelling units that did not respond to such annual notice, the date when access was attempted to confirm whether a child under six resides in such therein or an indication that the owner had knowledge of a dwelling unit in which a child under six resides; and proof of providing written notice by certified or registered mail or by first class mail with proof of mailing of the need to access the unit; and a copy of the notice sent by the owner to the department of health and mental hygiene regarding failure to access any particular dwelling unit.
(3) Annual investigation reports conducted pursuant to responses by occupants to annual notices required to be provided by 28 RCNY § 11-03(b), including:
(i) An affidavit stating that access was gained to conduct the visual inspection of the dwelling unit, that the inspection was conducted, the person who conducted such inspection, the date of inspection, and the dwelling unit number; and
(ii) For dwelling units that were inspected, the owner must provide copies of the inspection report including a statement of whether there was or was not peeling paint on all visually inspected components or similar documentation. The owner may use a sample form made available by the department for documentation of owner investigations, or a substantially similar form containing the same information to provide a report of surface-by-surface, individual paint-containing building component investigation, including walls, chewable surfaces, deteriorated subsurfaces, friction sufaces and impact surfaces in every room, including interiors of closets and cabinets; and
(iii) If access was not gained to a dwelling unit, an affidavit stating the dates that an attempt was made to gain access, including the date the owner provided written notice of the need for access by certified or registered mail or by first class mail with proof of mailing. For such units, the owner must also provide copies of the written notice to the occupant informing the occupant of the need to access the unit or similar documentation and a record regarding access attempts and the reasons for failure of access as set forth in subdivision (b) of 28 RCNY § 11-04.
(1) An affidavit AF-5;
(2) An affidavit made by an EPA-certified abatement firm’s authorized agent or individual who performed the work to correct the leadbased paint hazard violation(s) stating that the work was performed in accordance with § 27-2056.11 of article 14 of the housing maintenance code and 28 RCNY § 11-06; the start and completion date of the work; and the address and contact information (phone or fax) for the EPA-certified abatement firm that completed the work;
(3) A copy of the EPA certification for the EPA-certified abatement firm that performed the work to correct the lead-based paint hazard violation(s);
(4) A copy of the State-certified laboratory analysis of all surface dust samples taken which indicates the method of preparation and analysis of the samples;
(5) An affidavit from the individual who took the surface dust sample, verifying the date the sample was taken and indicating the address and dwelling unit where the sample was taken; and
(6) A copy of the Certificate of Training of the individual who took surface dust samples that is valid for the period when the dust samples were taken.
(1) Records for all non-violation work that disturbed lead-based paint or paint of unknown lead content on a surface greater than two square feet per room, in a dwelling unit where a child under six years of age resides, or in the common areas of the building, including documentation of the work practices used. Such records shall include:
(i) All documentation required under 28 RCNY § 11-06(c);
(ii) A copy of all licenses and training certificates, required for the firms and personnel who performed the work;
(iii) An affidavit made by an EPA-certified abatement or EPA-certified renovation firm’s authorized agent or individual who performed the work stating that the work was performed in accordance with § 27-2056.11 of article 14 of the housing maintenance code and 28 RCNY § 11-06, including the start and completion date of the work, and the address and contact information (phone or fax) for such firm;
(iv) A copy of the certification for such firm;
(v) The location of the work performed in each room, including a description of such work or invoices for payment for such work;
(vi) A copy of the State-certified laboratory analysis of all surface dust samples taken which indicates the method of preparation and analysis of the samples;
(vii) An affidavit from the individual who took the surface dust samples, verifying the date the sample was taken and indicating the address/dwelling unit where the sample was taken;
(viii) A copy of the Certificate of Training of the individual who took surface dust samples that is valid for the period when the dust samples were taken; and
(ix) Checklists completed when and/if occupants were allowed temporary access to a work area.
(2) In addition to the documents required to be submitted by paragraph (1) of this subdivision, if the work that was performed disturbed greater than 100 square feet of lead based paint or paint of unknown lead content in a room in a dwelling unit where a child under age six resides, or involved the removal of two or more windows with lead based paint or paint of unknown lead content in such unit, the department may require the submission of the following additional documentation: A copy of the owner’s notice of commencement of work that was filed with the department of health and mental hygiene. Such notice shall be signed by the owner or by a representative of the firm performing the work. Such notice shall include: the name, address and telephone number of the owner of the premises in which the lead-based paint work is to be performed; the address of the building and the specific location of the lead-based paint work within the building; the name, address and telephone number of the EPA-certified abatement firm that will be responsible for performing the work; the date and time of commencement of the work, working or shift hours, and the expected date of completion; a complete description and identification of the surfaces and structures, and surface areas, subject to the work; and any changes in the information contained in such notice filed with the department of health and mental hygiene prior to commencement of work, or if work has already commenced, within 24 hours of any such change.
(1) An affidavit listing any dwelling units that have turned over in the audit period; and
(2) (A) Where no work was necessary to comply with the requirements for turnover of any dwelling unit: An affidavit stating that the dwelling unit: (i) has a lead free exemption from HPD; (ii) has no painted friction surfaces and the floor, window sills and window wells are smooth and cleanable such that no turnover work or clearance activity was required; or (iii) was XRF tested by a EPA-certified risk assessor and no painted surfaces tested positive for lead-based paint, with a copy of the results of the XRF test and an affidavit from the risk assessor; or
(B) Where work was necessary to comply with the requirements for turnover of the dwelling unit:
(i) The name, address, and telephone number of the EPA-certified abatement or EPA-certified renovation firm that performed the work;
(ii) A copy of all licenses and training certificates required for the firms and personnel who performed work;
(iii) A sworn statement made by the EPA-certified abatement firm’s or EPA-certified renovation firm’s authorized agent or individual who performed the work on behalf of such firm stating that the work was performed in accordance with § 27-2056.11(a)(3) of article 14 of the housing maintenance code and 28 RCNY § 11-06, and the start and completion date of the work;
(iv) A copy of the certification for such firm ;
(v) The location of the work performed in each room, including a description of such work and components or parts of the dwelling unit that were replaced, or the invoices for payment for such work;
(vi) A copy of the State-certified laboratory analysis of all surface dust samples taken which indicates the method of preparation and analysis of the samples;
(vii) An affidavit from the individual who took the surface dust sample, verifying the date that the sample was taken and stating the address and dwelling unit where the sample was taken; and
(viii) A copy of the Certificate of Training of the individual who took surface dust samples that is valid for the period when the dust samples were taken.
§ 11-13 Dwelling Units in Cooperative Housing Corporations and Condominiums.
Where the department has issued a violation pursuant to article 14 of the housing maintenance code for a dwelling unit in a multiple dwelling where (i) title to such multiple dwelling is held by a cooperative housing corporation or such dwelling unit is owned as a condominium unit, and (ii) such dwelling unit is occupied by the shareholder of record on the proprietary lease for such dwelling unit or the owner of record of such condominium unit, as is applicable, or the shareholder’s or record owner’s family, the cooperative housing corporation or the condominium board of managers may apply to the department to have such violation reissued. Such application shall include a sworn affidavit from a representative of the cooperative housing corporation or condominium board of managers attesting to the status of such multiple dwelling as either a cooperative or condominium, and a sworn affidavit from the shareholder of record on the proprietary lease of the unit or the owner of record of the condominium unit for which the violation was issued, attesting to his or her occupancy of the unit.
APPENDIX A: LEASE/COMMENCEMENT OF OCCUPANCY NOTICE FOR PREVENTION OF LEAD BASED PAINT HAZARDS – INQUIRY REGARDING CHILD
You are required by law to inform the owner if a child under six years of age resides or will reside in the dwelling unit (apartment) for which you are signing this lease/commencing occupancy. Beginning on January 1, 2020, the term “resides” means that a child under six routinely spends 10 or more hours per week in the dwelling unit. If such a child resides or will reside in the unit, the owner of the building is required to perform an annual visual inspection of the unit to determine the presence of lead-based paint hazards. IT IS IMPORTANT THAT YOU RETURN THIS FORM TO THE OWNER OR MANAGING AGENT OF YOUR BUILDING TO PROTECT THE HEALTH OF YOUR CHILD. If you do not respond to this notice, the owner is required to attempt to inspect your apartment to determine if a child under six years of age resides there.
If a child under six years of age does not reside in the unit now, but does come to reside in it at any time during the year, you must inform the owner in writing immediately. If a child under six years of age resides in the unit, you should also inform the owner immediately at the address below if you notice any peeling paint or deteriorated subsurfaces in the unit during the year.
Whether or not a child under age six will reside in the apartment, the owner of the building is also required to fix all lead-based paint hazards and underlying defects that may cause paint to peel, make floors, window sills and window wells smooth and cleanable, remove or cover all lead-based paint on friction surfaces of doors and door frames, and remove or cover all lead-based paint on friction surfaces of windows or install window channels or slides. This work should be performed before you move into the apartment, and the owner must properly clean the apartment after the work is completed.
Please complete this form and return one copy to the owner or his or her agent or representative when you sign the lease/commence occupancy of the unit. Keep one copy of this form for your records. You should also receive a copy of a pamphlet developed by the New York City Department of Health explaining about lead based paint hazards when you sign your lease/commence occupancy.
CHECK ONE: ____ A child under six years of age resides in the unit
____ A child under seven years of age does not reside in the unit
________________________________(Occupant signature)
Print occupant’s name, address and apartment number:________________________________________
(NOT APPLICABLE TO RENEWAL LEASE) Certification by owner: I certify that I have complied with the provisions of § 27-2056.8 of Article 14 of the Housing Maintenance Code and the rules promulgated thereunder relating to duties to be performed in vacant units, and that I have provided a copy of the New York City Department of Health and Mental Hygiene pamphlet concerning lead-based paint hazards to the occupant.
________________________________(Owner signature)
RETURN THIS FORM TO:
Owner representative name: _________________________________
Address: _________________________________________________
OCCUPANT: KEEP ONE COPY FOR YOUR RECORDS
OWNER COPY/OCCUPANT COPY
APENDICE A: CONTRATO/COMIENZO DE OCUPACION Y MEDIDAS DE PRECAUCION CON LOS PELIGROS DE PLOMO EN LA PINTURA – ENCUESTA RESPECTO AL NIÑO
Usted esta requerido por ley informarle al dueño si un niño menor de seis años de edad está viviendo o vivirá con usted en la unidad de vivienda (apartamento) para la cual usted va a firmar un contrato de ocupación. A partir del 1 de enero de 2020, el término “residir” significa que un niño menor de seis años pasa 10 horas o más por semana en la unidad de vivienda. Si tal niño empieza a residir en la unidad, el dueño del edificio esta requerido hacer una inspeción visual anualmente de la unidad para determinar la presencia peligrosa de plomo en la pintura. POR ESO ES IMPORTANTE QUE USTED LE DEVEUELVA ESTE AVISO AL DUEÑO O AGENTE AUTORIZADO DEL EDIFICIO PARA PROTEGER LA SALUD DE SU NIÑO. Si usted no informa al dueño, el dueño esta requerido inspeccionar su apartamento para descubrir si un niño menor de seis años de edad está viviendo en el apartamento.
Si un niño de seis años de edad no vive en la unidad ahora, pero viene a vivir en cualquier tiempo durante el año, usted debe de informarle al dueño por escrito inmediatamente a la dirección proveída abajo. Usted también debe de informarle al dueño por escrito si un niño menor de seis años de edad vive en la unidad y si usted observa que durante el año la pintura se deteriora o está por pelarse sobre la superficie de la unidad.
Más allá de que un niño menor de seis años resida o no en el apartamento, el dueño del edificio también debe reparar todos los peligros de pintura a base de plomo y todos los defectos subyacentes que puedan causar que la pintura se descascare, debe hacer que los pisos, los alféizares y huecos de las ventanas sean lisos y de fácil limpieza, debe quitar o cubrir toda la pintura a base de plomo en las superficies de puertas y marcos de puertas en las que haya fricción, y debe quitar o cubrir toda la pintura a base de plomo en las superficies de ventanas en las que haya fricción o instalar perfiles para ventanas o ventanas deslizantes. Este trabajo debe hacerse antes de mudarse al apartamento, y el dueño debe limpiar correctamente el apartamento una vez que se haya completado el trabajo.
Por favor de llenar este formulario y devolver una copia al dueño del edificio o al agente o representante cuando usted firme el contrato o empiece a ocupar la unidad. Mantenga una copia de este formulario para sus archivos. Al firmar su contrato de ocupación usted recibirá un panfleto hecho por el Departamento de Salud y Salud Mental de la Ciudad de Nueva York, explicando el peligro de plomo en pintura.
MARQUE UNO: ____ Vive un niño menor de seis años de edad en la unidad.
____ No vive un niño menor de seis años de edad en la unidad.
________________________________(Firma del inquilino)
Nombre del inquilino, Dirección, Apartamento:________________________________________
(Esto no es aplicable para un renovamiento del contrato de alquiler.) Certificación de dueño: Yo certifico que he cumplido con la provisión de § 27-2056.8 del Artículo 14 del código y reglas de Vivienda y Mantenimiento (Housing Maintenance Code) relacionado con mis obligaciones sobre las unidades vacante, y yo le he dado al ocupante una copia del panfleto del Departamento de Salud y Salud Mental de la Ciudad de Nueva York sobre el peligro de plomo en pintura.
________________________________((Firma del dueño)
DEVUELVA ESTE FORMULARIO A:
Nombre del representate del propietario: ________________________
Dirección: _________________________________________________
INQUILINO: MANTENGA UNA COPIA PARA LOS ARCHIVOS
COPIA DEL DUEÑO/COPIA DEL INQUILINO
APPENDIX B: ANNUAL NOTICE FOR PREVENTION OF LEAD BASED PAINT HAZARDS – INQUIRY REGARDING CHILD
You are required by law to inform the owner if a child under six years of age resides or will reside in your dwelling unit (apartment). Beginning on January 1, 2020, the term “resides” means that a child under six routinely spends 10 or more hours per week in the dwelling unit. If such a child resides or will reside in the unit, the owner of the building is required to perform an annual visual inspection of the unit to determine the presence of lead-based paint hazards. IT IS IMPORTANT THAT YOU RETURN THIS FORM TO THE OWNER OR MANAGING AGENT OF YOUR BUILDING TO PROTECT THE HEALTH OF YOUR CHILD. If you do not respond to this notice, the owner is required to attempt to inspect your apartment to determine if a child under six years of age resides there.
If a child under six years of age does not reside in the unit now, but does come to reside in it at any time during the year, you must inform the owner in writing immediately. If a child under six years of age resides in the unit you should also inform the owner immediately if you notice any peeling paint or deteriorated surfaces in the unit during the year. You may request that the owner provide you with a copy of any records required to be kept as a result of a visual inspection of your unit.
Please complete this form and return one copy to the owner or his or her agent or representative by March 1st. Keep one copy of this form for your records.
CHECK ONE: ____ A child under six years of age resides in the unit
____ A child under seven years of age does not reside in the unit
________________________________(Occupant signature)
Print occupant’s name, address and apartment number:________________________________________
RETURN THIS FORM TO:
Owner representative name: _________________________________
Address: _________________________________________________
OCCUPANT: KEEP ONE COPY FOR YOUR RECORDS
OWNER COPY/OCCUPANT COPY
APENDICE B: AVISO AÑUAL PARA MEDIDAS DE PRECAUCION CON LOS PELIGROS DE PLOMO EN LA PINTURA – ENCUESTA RESPECTO AL NIÑO
Usted esta requerido por ley informarle al dueño si un niño menor de seis años de edad está viviendo o vivirá con usted en su unidad de vivienda (apartamento). A partir del 1 de enero de 2020, el término “residir” significa que un niño menor de seis años pasa 10 horas o más por semana en la unidad de vivienda. Si tal niño empieza a residir en la unidad, el dueño del edificio esta requerido hacer una inspeción visual anualmente de la unidad para determinar la presencia peligrosa de plomo en la pintura. POR ESO ES IMPORTANTE QUE USTED LE DEVEUELVA ESTE AVISO AL DUEÑO O AGENTE AUTORIZADO DEL EDIFICIO PARA PROTEGER LA SALUD DE SU NIÑO. Si usted no informa al dueño, el dueño esta requerido inspeccionar su apartamento para descubrir si un niño menor de seis años de edad está viviendo en el apartamento.
Si un niño menor de seis años de edad no vive en la unidad ahora, pero viene a vivir en cualquier tiempo durante el año, usted debe de informarle al dueño por escrito inmediatamente. Usted también debe de informarle al dueño por escrito si el niño menor de seis años de edad vive en la unidad y si usted observa que durante el año la pintura se deteriora o está por pelarse sobre la superficie de la unidad, usted tiene que informarle al dueño inmediatamente. Usted puede solicitar que el dueño le dé una copia de los archivos de la inspección visual hecha en su unidad.
Por favor de llenar este formulario y devolver una copia al dueño del edificio o al agente o representante antes de Marzo 1. Mantenga una copia de este formulario para su información.
MARQUE UNO: ____ Vive un niño menor de seis años de edad en la unidad.
____ No vive un niño menor de seis años de edad en la unidad.
________________________________(Firma del inquilino)
Nombre del inquilino, Dirección, Apartamento: ________________________
DEVUELVA ESTE FORMULARIO A:
Nombre del representate del propietario: ________________________
Dirección: _________________________________________________
INQUILINO: MANTENGA UNA COPIA PARA SU INFORMACION
COPIA DEL DUEÑO/COPIA DEL INQUILINO
§ 12-01 Owner Responsibilities for Smoke Detecting Devices for Class A Multiple Dwellings.
Pursuant to § 27-2045 of the Administrative Code of the City of New York, the owner of a Class A multiple dwelling which is required to be equipped with smoke detecting devices pursuant to section 907.2 of the New York City building code or sections 27-978, 27-979, 27-980 and 27-981 of the 1968 building code shall:
(1) shall have letters not less than three-sixteenths of an inch in height;
(2) the lettering of the notice shall be of bold type and shall be properly spaced to provide good legibility and the background shall be of contrasting colors;
(3) the notice shall be durable and shall be substantially secured to the common area where posted;
(4) the notice shall be of metal, plastic, or decal;
(5) lighting shall be sufficient to make the notice easily legible.
(1) date notice posted pursuant to 28 RCNY § 12-01(b);
(2) date of installation of each smoke detecting device and other records showing that the device installed meets the requirements of Article 312 of Chapter 3 of Title 28 of the administrative code of the City of New York, including the manufacturer’s suggested useful life of each device;
(3) whether the smoke detecting device receives its primary power from the building wiring or whether it is a battery-operated device;
(4) apartment number and location within apartment where device installed;
(5) records showing that maintenance work performed on each device has met the requirements of Article 312 of Chapter 3 of Title 28 of the administrative code of the City of New York;
(6) date tenant requested replacement/repair.
(7) These records must be made available to the Commissioner of the Department of Housing Preservation and Development upon request.
§ 12-02 Occupant Responsibilities for Smoke Detecting Devices for Class A Multiple Dwellings.
Pursuant to § 27-2045(b) of the Administrative Code of the City of New York it shall be the sole duty of the occupant of each unit in a Class A multiple dwelling in which a smoke detecting device has been provided and installed by the owner pursuant to section 907.2 of the New York city building code or sections 27-978, 27-979, 27-980 and 27-981 of the 1968 building code to:
§ 12-03 Owner Responsibilities for Smoke Detecting Devices for Class B Multiple Dwellings.
Pursuant to § 27-2046 of the Administrative Code of the City of New York the owner of a Class B multiple dwelling which is required to be equipped with smoke detecting devices pursuant to section 907.2 of the New York city building code or sections 27-978, 27-979, 27-980, and 27-981 of the 1968 building code shall:
(1) date of installation of each smoke detecting device and other records showing that the device installed meets the requirements of Article 312 of Chapter 3 of Title 28 of the administrative code of the City of New York, including the manufacturer’s suggested useful life of each device;
(2) whether the smoke detecting device receives its primary power from the building wiring or whether it is a battery operated device or in the alternative whether it is a line operated zoned smoke detecting system with central annunciation and central tie-in for all public corridors and public spaces;
(3) room number and location within room where each smoke detecting device is installed;
(4) records showing that maintenance performed on each device has met the requirements of Article 312 of Chapter 3 of Title 28 of the administrative code of the City of New York.
These records must be made available to the Commissioner of the Department of Housing Preservation and Development upon request.
§ 12-04 Form for Records or Smoke Detecting Devices.
A sample notice as required by 28 RCNY § 12-01(b) follows:
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§ 12-05 Definitions.
For the purposes of this chapter
§ 12-06 Owner Responsibilities for CO Alarms for Class A Multiple Dwellings.
Pursuant to § 27-2046.1 of the administrative code of the city of New York, the owner of a Class A multiple dwelling that is required to be equipped with carbon monoxide detecting devices pursuant to section 908.7 of the New York city building code or sections 27-981.1, 27-981.2 and 27-981.3 of the 1968 building code, and as prescribed by the Department of Buildings (“DOB”) pursuant to 1 RCNY Chapter 28 shall comply with the following requirements:
(1) the owner is required by law to install one or more approved and operational CO alarm in each dwelling unit in the building within 15 feet of the primary entrance to each room lawfully used for sleeping purposes and to periodically replace such devices as necessary in accordance with Article 12 of Chapter 3 of Title 28 of the administrative code;
(2) each occupant is responsible for the maintenance and repair of such alarms and for replacing any or all such alarms that are stolen, removed, missing, or rendered inoperable during the occupancy of such dwelling unit; and
(3) the occupant of a dwelling unit in which a CO alarm is newly installed or in which a CO alarm is installed by the owner as a result of such occupant’s failure to maintain such alarm or where such alarm has been lost or damaged by such occupant, or where such alarm is replaced upon the expiration of its useful life pursuant to Article 12 of Chapter 3 of Title 28 of the New York City administrative code, shall reimburse the owner in the amount of $25.00 per device for the cost of such work, or a maximum of $50.00 per device where a combined smoke and carbon monoxide detecting device is installed, and such occupant shall have one year from the date of installation to make such reimbursement.
(4) A sample of an approved notice that may be used for CO alarms is made part of these regulations in 28 RCNY § 12-10 and may also be found on HPD’s website at www.nyc.gov/HPD.
(5) For the notice otherwise required by this provision, an owner may in lieu of such notice, instead choose to post a single notice that incorporates and complies with this provision as well as the provisions of 28 RCNY § 12-01(b) and (c) and 28 RCNY § 12-11(b). A sample of an approved single notice, the language of which may be used for compliance with this subdivision, is made part of these regulations in 28 RCNY § 12-12.1 and may also be found on HPD’s website at www.nyc.gov/HPD.
(6) The notice required by this subdivision shall conform with the following requirements:
(i) the notice shall have letters not less than three-sixteenths of an inch in height;
(ii) the lettering of the notice shall be of bold type and shall be properly spaced to provide good legibility and the background shall be of contrasting colors;
(iii) the notice shall be durable and shall be substantially secured to the common area where posted;
(iv) the notice shall be of metal, plastic, or decal;
(v) lighting shall be sufficient to make the notice easily legible; and
(1) date notice posted pursuant to 28 RCNY § 12-06(b);
(2) date of installation of each CO alarm and the expiration date of the manufacturer’s suggested useful life of each such alarm;
(3) whether each CO alarm receives its primary power from the building wiring with secondary battery back-up, is a battery-operated alarm, or is a plug-in type CO alarm with a back-up battery;
(4) apartment number and location within apartment where each alarm was installed;
(5) maintenance work performed on each alarm; and
(7) date occupant requested replacement/repair. These records must be made available to the Commissioner of the Department of Housing Preservation and Development, DOB, the Fire Department, or the Department of Health and Mental Hygiene (“DOHMH”) upon request.
§ 12-07 Owner Responsibilities for CO Alarms for Private Dwellings.
Pursuant to § 27-2046.1 of the administrative code of the city of New York, the owner of a private dwelling that is required to be equipped with CO alarms pursuant to section 908.7 of the New York city building code or sections 27-981.1, 27-981.2 and 27-981.3 of the 1968 building code and as prescribed by DOB pursuant to chapter 28 of title 1 of the rules of the city of New York shall comply with the following requirements:
(1) the owner is required by law to install an approved and operational CO alarm in each dwelling or dwelling unit in the building, within 15 feet of the primary entrance to each room lawfully used for sleeping and to periodically replace such devices as necessary in accordance with article 12 of chapter 3 of title 28 of the administrative code;
(2) each occupant is responsible for the maintenance and repair of such alarms and for replacing any or all such alarms that are stolen, removed, missing, or rendered inoperable during the occupancy of such dwelling or dwelling unit; and
(3) the occupant of a dwelling or dwelling unit in which a CO alarm is newly installed, or in which a CO alarm is installed by the owner as a result of such occupant’s failure to maintain such alarm, or where such alarm has been lost or damaged by such occupant or where such alarm is replaced upon the expiration of its useful life pursuant to article 12 of chapter 3 of title 28 of the New York city administrative code, shall reimburse the owner in the amount of $25.00 per alarm for the cost of such work, and the occupant shall have one year from the date of installation to make such reimbursement;
(1) date of installation of each CO alarm and the expiration date of the manufacturer’s suggested useful life of each such alarm;
(2) whether each CO alarm receives its primary power from the building wiring with secondary battery backup, is a battery-operated device, or is a plug-in type CO alarm with a back-up battery;
(3) location within dwelling or dwelling unit where each alarm is installed;
(4) maintenance work performed on each alarm; and
(5) date occupant requested replacement/repair. These records must be made available to the Commissioner of the Department of Housing Preservation and Development, DOB, the Fire Department, or DOHMH upon request.
§ 12-08 Occupant Responsibilities for CO Alarms for Class A Multiple Dwellings and Private Dwellings.
(a) Pursuant to § 27-2046.1 of the administrative code of the city of New York, it shall be the sole duty of the occupant of each unit in a Class A multiple dwelling and the occupant of a dwelling or dwelling unit in a private dwelling in which a CO alarm has been provided and installed by the owner to:
(1) keep and maintain such CO alarm in good repair; and
(2) replace any alarm that is either stolen, removed, missing, or rendered inoperable during the occupancy of such dwelling or dwelling unit.
§ 12-09 Owner Responsibilities for CO Alarms for Class B Multiple Dwellings.
Pursuant to § 27-2046.2 of the administrative code of the city of New York, the owner of a Class B multiple dwelling that is required to be equipped with one or more CO alarms pursuant to section 908.7 of the New York city building code or sections 27-981.1, 27-981.2 and 27-981.3 of the 1968 building code and as prescribed by DOB pursuant to 1 RCNY Chapter 28 shall:
(1) date of installation of each CO alarm or system and the expiration date of the manufacturer’s suggested useful life of each such alarm;
(2) whether the CO alarm receives its primary power from the building wiring with secondary battery backup, is a battery-operated alarm, is a plug-in type CO alarm with a back-up battery, or in the alternative whether it is a line operated zoned CO detecting system with central annunciation and central office tie-in for all public corridors and public spaces;
(3) room number and location within room where each CO alarm was installed;
(4) maintenance work performed on each alarm. These records must be made available to the Commissioner of the Department of Housing Preservation and Development, DOB, the Fire Department, or DOHMH upon request.
§ 12-10 Form for Notices for CO Alarms.
A sample form for providing notice to occupants pursuant to 28 RCNY § 12-06 follows:
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§ 12-11 Owner Responsibilities for Notices of Suspected Gas Leak Procedures.
The owner of a tenant-occupied dwelling shall take all of the following actions:
(1) the notice shall have letters not less than three-sixteenths of an inch in height;
(2) the lettering of the notice shall be of bold type and shall be properly spaced to provide good legibility and the background shall be of contrasting colors;
(3) the notice shall be durable and shall be substantially secured to the common area where posted;
(4) the notice shall be of metal, plastic, or decal; and
(5) lighting shall be sufficient to make the notice easily legible.
(1) When the gas service provider for the dwelling is Con Edison, the notices required by subdivisions (a) and (b) of this section shall instruct tenants to call Con Edison at 1-800-752-6633, after first leaving the building and calling 911, unless 1-800-752-6633 is no longer the number used to report suspected gas leaks to Con Edison, in which case the current emergency phone number used by Con Edison shall be used instead.
(2) When the gas service provider for the dwelling is National Grid, the notices required by subdivisions (a) and (b) of this section shall instruct tenants to call National Grid at 1-718-643-4050, after first leaving the building and calling 911, unless 1-718-643-4050 is no longer the current number used to report suspected gas leaks in New York City to National Grid, in which case the current emergency phone number used by National Grid for New York City shall be used instead.
§ 12-12 Form for Notices for Suspected Gas Leak Procedures.
A sample notice, as required by subdivisions (a) and (b) of 28 RCNY § 12-11 follows. The language used in the sample notice below may be used by an owner for both of the notices required by such subdivisions (a) and (b).
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§ 12-12.1 Combined Form for Notice for Smoke Detecting Devices, Notice for Carbon Monoxide Alarms, and Notice for Suspected Gas Leak Procedures.
If an owner chooses to post a single notice that incorporates and complies with the notice requirements of 28 RCNY § 12-01(b) and (c), 28 RCNY § 12-06(b), and 28 RCNY § 12-11(b), the sample notice below may be used in lieu of the notices otherwise required by 28 RCNY § 12-01(b) and (c), 28 RCNY § 12-06(b), and 28 RCNY § 12-11(b) and shall be posted in a common area of the building, readily visible:
Notices for Suspected Gas Leaks, Smoke Detecting Devices, and Carbon Monoxide Alarms
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§ 13-01 Purpose and Scope.
It is the purpose of this chapter to set forth an administrative procedure to allow new owners of multiple dwellings and other appropriate units in the City of New York the opportunity to correct violations while being assured that legal actions will not be brought against such new owners and that civil penalties accruing to the Department of Housing Preservation and Development will be stayed during the correction period. Pursuant to the procedure set forth herein, a new owner may seek to limit his or her liability while attempting to achieve correction of violations. The regulations created herein institute uniform procedures for an application for such a stay of legal actions, the basis upon which a determination of such application shall be made, the condition upon which a stay may be granted, the revocation of a stay, and the effect of compliance and non-compliance by a new owner with the conditions of a stay.
§ 13-02 Definitions.
In these regulations, the following terms shall have the meanings specified:
Department. “Department” shall mean the Department of Housing Preservation and Development or any successor to that Department.
New owner. “New owner” shall mean a person, entity, firm or corporation or agent or principal thereof who has achieved the status of the owner of the freehold or lesser estate therein, receiver, administrator, managing agent, mortgagee in possession, assignee of rents, executor, trustee, or lessee of the subject building who shall demonstrate that such change in ownership was not for the purpose of establishing eligibility for a stay under these regulations, and that:
(1) such status was attained not more than sixty (60) days prior to the making of its application herein; or,
(2) such status was attained not more than six (6) months prior to the effective date of these regulations if the application is made within sixty (60) days of such effective date.
Subject building. “Subject building” shall mean the dwelling in which the violations set forth in the notice of violation are to be found.
§ 13-03 Application and Prerequisites.
(a) An application for a stay shall be made during regular business hours to the Department's Agreements and Compliance Unit, 150 William Street, 6th Floor, New York, N.Y. 10038.
(1) the applicant is a new owner as defined in 28 RCNY § 13-02 “New owner”; and
(2) a registration statement has been filed with the Department’s Office of Code Enforcement by the new owner, or proof that registration is not required for or allowed to be filed by the applicant.
§ 13-04 Determination of Stay.
Upon application by a new owner, the Department shall make a determination as to whether a stay shall be granted. The Department may take into consideration in determining whether to grant a stay, and the new owner may submit in attempting to establish his or her entitlement to a stay, the following information:
(1) whether the new owner has complied with prior orders of the Department;
(2) whether the new owner has complied with prior orders of other City departments concerning building conditions;
(3) whether the new owner has any outstanding debts to the City for emergency repairs or has incurred such debts within five (5) years prior to the date of the applications; and
(4) what the new owner is doing to correct other violations for which he or she is not seeking a stay.
§ 13-05 Length of Stay.
The length of a stay shall be set by the Department and shall be for a period or periods of time that will provide the new owner with a reasonable time to achieve correction of each violation which is the subject of the application for a stay. In any case, the length of such stay or stays shall be no less than the time allowed by classification pursuant to § 27-2115(a) of the Housing Maintenance Code, said time running from the date of the new owner’s application for a stay. In determining the appropriate length of time for a stay, the Department may consider:
§ 13-06 Written Agreement and Condition of Stay.
(a) In the event the Department determines that a stay could appropriately be granted to the new owner, the Department shall require the new owner to execute an agreement prepared by the Department which shall set forth an exact schedule of removal of all violations for which the new owner is seeking a stay and in which the new owner acknowledges his or her responsibility to correct each violation by those dates. Such agreement may also:
(1) require the new owner to take a particular course of action to correct specified violations;
(2) require a new owner to deposit the rental income of the subject building into an escrow account from which expenditures for scheduled repairs are made; and
(3) may contain other conditions, as the Department finds appropriate, including repayment of Emergency Repair Program expenditures.
§ 13-07 Extension of Stay.
In the event a new owner shall apply for an extension of a stay previously granted, the Department may grant such stay if the new owner:
(1) the inability to correct in a timely manner was caused by circumstances substantially beyond the control of the new owner, or that the impediments were not reasonably foreseeable at the time the new owner applied for and was granted the original stay;
(2) no course of action, other than the one undertaken by the new owner could have achieved correction within the time set forth in the original stay agreement; and,
(3) the new owner has devised a reasonable course of action which he or she intends to pursue if an extension of the stay is granted by the Department, which course of action would remove or circumvent any impediments to correction within the time allowed for an extension of the stay;
(1) any information described in 28 RCNY §§ 13-05 or 13-07(b);
(2) documentation of the actions taken to achieve correction, including receipted bills and/or cancelled checks for any work performed or materials supplied;
(3) a statement by the new owner as to the impediments to correction which presently exist; or,
(4) such additional information of any nature as the Department may request to assist it in making a determination as to whether and how long an extension in the stay should be granted; and
§ 13-08 Revocation of Stay and Effect Thereof.
(a) The Department shall have the power to revoke a stay or an extension of a stay by notice to the new owner given by certified mail, return receipt requested, in the event of:
(1) discovery of misrepresentation or fraud in an application for a stay or an extension of a stay; or,
(2) failure by a new owner to adhere to the terms of any part or all of either an agreement for a stay described in 28 RCNY § 13-06 or an agreement for an extension of a stay described in 28 RCNY § 13-07.
(1) the new owner shall be liable for full civil penalties as provided by law; and,
(2) such revocation shall not affect a new owner’s responsibility to remove violations at the subject building, and, where an agreement executed under 28 RCNY §§ 13-06 or 13-07 has been entered as an order of the New York City Civil Court, the schedule of removal of violations contained therein.
§ 13-09 Effect of Compliance.
If the new owner properly and substantially corrects the violations for which a stay is granted, the Department may, in its discretion, recommend to the Office of the Comptroller waiver of any potential causes of action for civil penalties which have accrued pursuant to the Housing Maintenance Code for the violations which have been corrected pursuant to the stay agreement. If the Office of the Comptroller approves such waiver, a written statement of such waiver, signed and dated by the person making such waiver and indicating the Comptroller’s approval, shall be made part of the records of the Department. Any such waiver shall be binding and irrevocable.
§ 13-10 Severability.
In the event that any section or portion of this chapter shall be held invalid or unenforceable for any reason, it shall not in any way invalidate, affect or impair the remaining sections of this chapter.
§ 14-01 General Provisions.
(a) All notices required by this chapter shall be in English and Spanish.
DAMP. “DAMP” shall mean to the Division of Alternative Management Programs, or any successor division, of the Department of Housing Preservation and Development.
DAMP Lessee. “DAMP Lessee” shall mean a person or entity with whom HPD has entered into a lease for the management of a building under any DAMP Program.
DAMP Programs. “DAMP Programs” shall mean the programs administered by DAMP.
DAMP Program Director. “DAMP Program Director” shall mean the individual at HPD responsible for the operation of an individual DAMP Program or his or her designee.
Room. “Room” shall mean the basic living space of a dwelling unit (i.e. living room, kitchen, dining room, and bedroom). Each bathroom shall be considered as one-half of a room. In studio apartments or apartments in which the kitchen (or kitchenette) and living area occupy the same space, that space shall be considered as two Rooms.
Tenant. “Tenant” shall mean a residential tenant of record occupying a dwelling unit pursuant to a lease with the City or with a net lessee which has entered into a net lease with the City for the building in which such dwelling unit is located. Other residential occupants, such as squatters and licensees, are not Tenants. Non-residential tenants or occupants, such as those who occupy space for retail, commercial, manufacturing, or community facility purposes, are not Tenants.
§ 14-02 Initial Rent Setting.
(a) To facilitate a particular building's operation and as a condition of admission to a DAMP Program, the appropriate DAMP Program Director may establish a minimum per Room rent level for all dwelling units in such building.
§ 14-03 Interim Rent Increases.
(a) One or more interim rent increases may be necessary to raise rents to a level sufficient to cover the maintenance and operating expenses of a particular building during the period of City ownership and alternative management.
(1) the past actual expenditures for maintenance and operation of a particular building for the period it has participated in a DAMP Program for a period not to exceed the prior year, including, but not limited to: the cost of fuel for heat and hot water, expenditures for common space utilities, repair and maintenance, supplies, insurance, and custodial services; and fees for management and professional services.
(2) a projection of maintenance and operating expenses of the particular building for a period of one (1) year following the effective date of the rent increase, including, but not limited to: the cost of fuel for heat and hot water; expenditures for common space utilities, repair and maintenance, supplies, insurance and custodial services; and fees for management and professional services to be rendered.
(3) a calculation of the rent required on a per room per month rate and per dwelling unit per month rate.
§ 14-04 Disposition Rent Increases.
(a) Disposition rent increases are necessary to raise rents to a level sufficient to cover the maintenance and operating expenses in a particular building during the first year of private ownership.
(1) the past actual expenditures for maintenance and operation of a particular building, including, but not limited to: the cost of fuel for heat and hot water, payments for common space utilities, repair and maintenance, supplies, insurance and custodial services; fees for management and professional services; and a capital and/or operating reserve, if any.
(2) a proposed budget for the maintenance and operation of the particular building setting forth the projected operating expenses during the first year of private ownership, including, but not limited to: the cost of fuel for heat and hot water, expenditures for common space utilities, repair and maintenance, cleaning supplies, insurance, custodial services, fees for management and professional services, a reserve for vacancies and uncollectible debts, a capital and/or operating reserve, if any, real estate taxes, water and sewer charges and debt service.
(3) a calculation of the rent required on a per Room per month and per dwelling unit per month rate.
§ 14-05 Notice of Interim and Disposition Rent Increases.
(a) All Tenants who are subject to the proposed increase will be sent a notice in writing of the proposed rent increase by regular mail, with a duplicate copy delivered to the Tenant's apartment not less than sixty (60) days before the anticipated effective date of the rent increase. The date of notice shall be deemed to be either five (5) days from the date of postmark, or the actual date of delivery to the Tenant's apartment, whichever is earlier. Each affected Tenant will have thirty (30) days from the date of the notice to submit by mail to DAMP or by hand-delivery to the place designated by DAMP in the notice written comments on the proposed rent increase. The date of submission shall be deemed to be five (5) days after the date of postmark or the actual date of the hand-delivery receipt, whichever is earlier. During the comment period, the financial data pertinent to the proposed rent increase shall be available for inspection upon request.
§ 14-06 Alternative Rent Setting.
Notwithstanding anything to the contrary contained in this chapter, and subject to the notice and other procedural requirements of this chapter, DAMP may set rents for a particular building based on a per square foot per apartment standard instead of a per Room per apartment standard. In addition, if a project consists of more than one building in a common ownership entity, rents may be set based on economic estimates of the maintenance and operating expenses of the multi-building project instead of on economic estimates relating to the maintenance and operating expenses of an individual building.
§ 15-01 Definitions.
Central heating plant. The term “central heating plant” as used in this chapter shall include all portions of a central heating or hot water system that are located within the public parts of a building.
Qualified persons.
§ 15-02 Form of Report.
The report shall be filed on forms to be prescribed by the department.
§ 15-03 Preliminary Certifications.
(a) The report shall be submitted with a certification by the person preparing the report that such person is qualified pursuant to this chapter.
§ 15-04 Certification by the Owner.
Such report shall be submitted with a certification by the owner that the person preparing the report is qualified under the terms of this chapter.
§ 15-05 Certification by the Department.
Upon the filing of a certified report of an inspection of a central heating plant, an employee of the department shall inspect such report and, if the report has been prepared by a qualified person under the terms of this chapter and the required certifications have been submitted, he or she shall prepare and file among the department’s records a certificate stating that the report was prepared by a qualified person, unless the department determines that the person preparing the report is not in fact a qualified person under the terms of these regulations.
§ 15-06 Administrative Procedures.
(a) Unless a postponement is granted in the manner provided below such certified report is required to be filed on or before October 15th of each year.
§ 16-01 Inspection Access.
The owner of every multiple dwelling shall have the area, where the building’s heating system is located, readily accessible to members of the department to make inspections pursuant to the Housing Maintenance Code. In the event such area is kept under lock, a key shall be kept on the premises at all times with such person as the owner shall designate; however, if there is a person residing on the premises who performs janitorial services, such person shall hold the key. The owner shall post two notices naming such designated person and his location.
§ 16-02 Notices.
The notices in 28 RCNY § 16-01 above:
§ 17-01 Scope.
This chapter describes the process for making objections to municipal charges that are enforced as tax liens against properties pursuant to §§ 27-2144, 27-2153(q), 27-2091, 27-2115(f)(8), 27-2115(k), 28-215.1.1 and 28-216.11 of the Administrative Code and any other municipal charges that may be made tax liens subject to the process described in Article 8 of Subchapter 5 of the Housing Maintenance Code.
§ 17-02 Definitions.
(a) In this chapter, the following terms have the following meanings:
(1) “Administrative Code” means the New York City Administrative Code.
(2) “Billing Application Detail” means a record kept by the Department of Finance that contains the date of a statement of account.
(3) “Commissioner” means the Commissioner of the Department of Housing Preservation and Development or a person designated by him or her to exercise his or her powers set forth in this chapter.
(4) “Department” means the Department of Housing Preservation and Development.
(5) “Housing Maintenance Code” means chapter two of title 27 of the Administrative Code.
(6) “Owner” has the same meaning as described in Multiple Dwelling Law § 4(44) and Administrative Code § 27-2004(45)(a).
(7) “Statement of Account” means a bill for taxes, charges and assessments that the Department of Finance sends to owners of real property.
(8) “Tax Lien” means a lien arising pursuant to the provisions of Chapter 3 of Title 11 of the Administrative Code as a result of the nonpayment of any charges that are made a lien subject to the provisions of such chapter including any interest and penalties.
§ 17-03 Objection Procedure.
(a) The Department may file a lien for its expenses and fees incurred pursuant to Administrative Code §§ 27-2144, 27-2153(q), 27-2091, 27-2115(f)(8), 27-2115(k), 28-215.1.1 and 28-216.11.
(1) an owner, or
(2) a mortgagee or lienor, whose mortgage or lien would have priority over the Department’s lien if not for the provisions of § 27-2144, who receives a statement of account pursuant to Administrative Code § 27-2129 with a charge incurred pursuant to Administrative Code §§ 27-2125, 27-2153, 27-2091, 27-2115(f)(8), 27-2115(k), 28-215.1.1 or 28-216.11 may notify the Department in writing of his or her objection to such charge.
(1) specify the charge objected to and the nature of such objection, and
(2) include any documentation supporting the objection.
Any charge without specific objections from an owner shall be considered undisputed.
(i) Copies of at least four written notices delivered to the occupant of the subject dwelling unit (two attempts at access after each complaint-based inspection) requesting access at reasonable dates and times in accordance with 28 RCNY § 25-101, to make repairs. However, if the owner is requesting access to repair a class C violation, copies of such written notices will not be required unless such class C violation is for the existence of a lead-based paint hazard; and
(ii) A sworn affidavit signed by the owner, that such owner or his or her representative was not able, after four attempts (two attempts at access after each complaint-based inspection), to gain access to the dwelling unit for the purpose of making repairs. Such affidavit shall include the date of each such attempt at access and shall describe the efforts made by the owner or his or her representative to obtain access to the dwelling unit, and such other information as the Department may require. When an owner requests access to repair a class C violation that is not for lead-based paint, the affidavit shall include details of the actions taken by the owner or his or her representative to notify the occupant of the subject dwelling unit, including, but not limited to, making telephone calls, sending emails, and knocking on the occupant’s door at a reasonable time when he or she would be expected to be present. Such affidavit shall include the date and time of such actions.
(1) the lawfulness of the repair or other work done or,
(2) the propriety and accuracy of the expense for which a lien is claimed.
§ 18-01 Services to Individuals Temporarily Displaced by Vacate Orders.
(a) Definitions. The following terms used in this section have the meanings stated below.
“Administrative Code” means the New York City Administrative Code.
“Case Manager” means an employee or agent of HPD assigned to coordinate and direct the provision of Relocation Services to a particular Relocatee.
“Claimant” means a person claiming eligibility for Relocation Services.
“Family” means those individuals who permanently resided in the Former Apartment with a Relocatee at the time the Vacate Order was issued.
“Former Apartment” means the dwelling unit in which the Relocatee and his or her Family formerly resided that is the subject of a Vacate Order.
“HCR” means the State of New York Homes and Community Renewal.
“Housing Maintenance Code” means Chapter 2 of Title 27 of the Administrative Code.
“HPD” means the City of New York Department of Housing Preservation and Development.
“NYCHA” means the New York City Housing Authority.
“Prepared for Occupancy” means, with respect to any dwelling unit, one that is free of all immediately hazardous violations of record pursuant to the Housing Maintenance Code, supplied with all appropriate fixtures and appliances, reasonably cleaned, and available for occupancy.
“Relocatee” means an individual, or a head of household and his or her Family, whose Former Apartment is the subject of a Vacate Order and who is eligible for Relocation Services under any provision of these Rules. “Relocatee” shall not include an owner of the property that is the subject of the Vacate Order or his or her Family.
“Relocation Services” means all relocation services offered or provided to a Relocatee by HPD, including Shelter Services.
“Rule” or “Rules” means 28 RCNY § 18-01.
“Shelter Services” means temporary shelter relocation services offered or provided to a Relocatee by HPD.
“Site Occupancy Record” means a written file concerning a Relocatee, maintained by a Case Manager, containing all documents and information concerning the Relocatee.
“Standard Apartment” means a dwelling unit approved by HPD that:
(i) Has adequate floor area for the Relocatee and his or her Family pursuant to the Housing Maintenance Code;
(ii) Has no immediately hazardous violations of record in the dwelling unit;
(iii) Has no violations of record in the dwelling unit for vermin, mice, or other pest infestations, unless a letter from a licensed exterminator certifies that the building is under contract to be serviced monthly;
(iv) Does not have any rooms or facilities which can be reached only through a public area, unless the dwelling unit is approved for single room occupancy use or is a room in a dwelling unit;
(v) Has heat and hot water;
(vi) Contains a private kitchen or kitchenette for the exclusive use of the Relocatee and his or her Family, unless the dwelling unit is approved for single room occupancy use or is a room in a dwelling unit;
(vii) Contains private and fully enclosed toilet and bathing facilities for the exclusive use of the Relocatee and his or her Family, unless the dwelling unit is approved for single room occupancy use or is a room in a dwelling unit; and
(viii) Has a window or adequate light and ventilation in each room pursuant to the Housing Maintenance Code.
“Uninhabitable” means, with respect to any dwelling unit, one that is unfit for human habitation, due to substantial structural or other damage that has not been remedied.
“Vacate Order” means one of the following orders of a local governmental agency requiring occupants of a building or dwelling unit to discontinue occupancy:
(i) Vacate Order issued by the Department of Health and Mental Hygiene, pursuant to Administrative Code § 17-159 or other provision of law;
(ii) A Vacate Order issued by the Department of Buildings pursuant to Administrative Code §§ 28-207.4 et seq. or other provision of law;
(iii) A Vacate Order or other order issued by the Fire Department, pursuant to Administrative Code § 15-227 or other provision of law; and
(iv) A Vacate Order or other order issued by HPD, pursuant to Housing Maintenance Code § 27-2139 or other provision of law.
“Vacate Date” means the date of issuance of a Vacate Order. If more than one Vacate Order affects a building or dwelling unit, “Vacate Date” means the date of issuance of the first Vacate Order affecting such building or dwelling unit.
(1) To request Relocation Services, a Claimant for Relocation Services must provide:
(i) Proof of identity, such as a driver’s license, passport, government identification card, or other photo identification, and, for children, a birth certificate, letter from school with address, or proof of legal guardianship; and
(ii) Documentation that he or she resided in the Former Apartment. Documentation of residency may include:
(A) a lease, sublease or license agreement verifying that the Claimant resided at the Former Apartment; or
(B) any two of the following:
(a) a valid government-issued identification listing the Former Apartment as the Claimant’s address;
(b) a valid record from any government agency listing the Former Apartment as the Claimant’s address;
(c) a valid record relating to medical treatment, such as a prescription, that lists the Former Apartment as the Claimant’s address;
(d) a notarized written statement from the owner of the Former Apartment verifying that such Claimant resides at the Former Apartment, provided, however, that a statement by the owner stating that such Claimant does not reside at such Former Apartment shall not be used, by itself, to prevent such claimant from receiving Relocation Services without further documentation provided by such owner;
(e) a valid, current utility bill addressed to the Claimant at the Former Apartment;
(f) a written, notarized statement from a third party, non-governmental service provider, on the provider’s letterhead, verifying that the provider’s services were provided to the Claimant and that the Claimant resides at the Former Apartment; and
(g) any other forms of verification that the department may deem appropriate, including, but not limited to, official payroll documentation, bank statement, or credit card statement.
(2) Upon receiving notice of a Vacate Order and verifying eligibility of a Relocatee, HPD will issue a notice of eligibility and offer Relocation Services to a Relocatee as provided in these rules. If HPD finds a Claimant to be ineligible, it will issue a notice of ineligibility. An offer of Relocation Services shall be made only once to any Relocatee while the Vacate Order is in effect.
(i) A Relocatee must accept or decline an offer of Relocation Services, as applicable, in whole or in part, in writing where a notice of eligibility has been issued by HPD.
(ii) If a Relocatee does not accept an offer of Relocation Services in writing, such offer (or the part not accepted) will be permanently withdrawn.
(3) If a Relocatee accepts an offer of Shelter Services, HPD may order a Relocatee to move from one temporary shelter to another if, in the judgment of HPD, this facilitates the work of HPD or reduces the costs of temporary shelter.
(4) A Relocatee who declines an offer of Shelter Services may be eligible for other Relocation Services as provided in these Rules. However, a Relocatee who has declined an offer of Shelter Services will not be eligible for any further Shelter Services, despite eligibility for other Relocation Services.
(5) HPD will provide a Relocatee with a copy of these Rules in English and Spanish and such other language as it deems necessary. HPD will notify such Relocatee of the name, office address and telephone number of the Case Manager assigned to the Relocatee. A copy of these Rules in English and Spanish and such other language as HPD deems necessary will also be made available in the offices of Case Managers.
(6) HPD will assist a Relocatee in completing and submitting an application for housing or a NYCHA housing application on behalf of the Relocatee. A Relocatee who fails or refuses to complete such application(s) will be ineligible for any further Relocation Services and subject to termination.
(7) HPD will pay the cost of Shelter Services in such amount as HPD deems adequate for Relocatees residing in temporary shelters.
(8) HPD will refer a Relocatee to one Standard Apartment. A Relocatee may request that such Standard Apartment be located in a particular borough, if available, provided, however, that a Relocatee may not refuse a Standard Apartment on the basis that it is not located in the preferred borough.
(9) HPD may withdraw its referral of a Standard Apartment and the Relocatee may withdraw his or her acceptance if the Standard Apartment is not Prepared for Occupancy within 30 days after the date that the Relocatee informed HPD of his or her acceptance.
(10) If HPD notifies the Relocatee that the Former Apartment has been repaired, the Relocatee’s unjustified failure or refusal to return to the Former Apartment constitutes grounds for termination of Relocation Services.
(1) Moving Expenses. HPD will reimburse a Relocatee whose possessions are moved from the Former Apartment to a storage facility, a Standard Apartment, or lawful dwelling unit for his or her moving expenses in an amount determined by HPD. HPD will not reimburse a Relocatee if he or she is entitled to payment of moving expenses from another governmental agency or other source.
(2) Storage Expenses. HPD will reimburse a Relocatee whose possessions are moved from the Former Apartment to a storage facility for his or her storage expenses in an amount determined by HPD. HPD will not reimburse a Relocatee if he or she is entitled to payment of storage expenses from another governmental agency or other source. If a Relocatee’s Relocation Services have been terminated or have expired, HPD will not reimburse storage expenses beginning 60 days after HPD has provided a termination or expiration notice to the Relocatee.
(3) Relocation Allowance Payment for Replacing Personal Property. HPD will provide a Relocatee with a relocation allowance payment for personal property as provided in Table A of this subdivision, or in such other amount as may be determined by HPD, if the Relocatee satisfies all of the following criteria:
(i) An entity designated by HPD or the Fire Department certifies that the Relocatee has lost all or most of his or her personal property as a result of a fire or other disaster that resulted in the Vacate Order;
(ii) The Relocatee is not under investigation or the subject of pending charges, and has not been convicted of or pled guilty to any charges, in relation to a fire of suspicious origin or any other unlawful act that caused or contributed to the Vacate Order;
(iii) The Relocatee is moving into a Standard Apartment or other lawful dwelling unit; and
(iv) The Relocatee’s Relocation Services have not been terminated pursuant to these Rules.
Table a – Relocation Allowance Payment for Personal Property
| Number of bedrooms | Allowance Payment |
|---|---|
| 1 | $150.00 |
| 2 | $200.00 |
| 3 | $250.00 |
| 4 | $300.00 |
| 5 | $350.00 |
| 6 or more | $400.00 |
| Single room occupancy unit | $100.00 |
~
(1) The Relocatee must actively seek out a lawful dwelling unit and accurately report his or her progress to his or her Case Manager weekly or at such intervals as HPD requires. A Relocatee must keep HPD informed of his or her current address, telephone number and other contact information.
(2) In the case of a Relocatee, prior to moving from a temporary shelter to a lawful dwelling unit found by his or her own efforts, or to signing a lease for such lawful dwelling unit, the Relocatee must notify his or her Case Manager in writing. This notice must include the address of the Relocatee’s Former Apartment, the address of the lawful dwelling unit, and the names of the Relocatee and his or her Family.
(3) A Relocatee who believes that a dwelling unit referred to him or her by HPD is not a Standard Apartment will deliver a notice to his or her Case Manager specifically stating in writing the facts upon which such conclusion is based within one week after the referral of such dwelling unit.
(4) After having accepted a Standard Apartment referred by HPD and having been notified that it is Prepared for Occupancy, the Relocatee must deliver a notice to his or her Case Manager, within three business days after such notification, stating any facts which in his or her opinion would constitute grounds for a determination that the accommodations have not been Prepared for Occupancy.
(5) The Relocatee must complete an application with NYCHA for housing and provide any information requested by HPD or by NYCHA relating to relocation efforts or the Relocatee’s eligibility for Relocation Services.
(6) The Relocatee must advise his or her Case Manager and HPD in writing whenever he or she finds a lawful dwelling unit through his or her own efforts and the date of expected occupancy.
(7) The Relocatee must respond to and comply with all notices of appointments with his or her Case Manager and HPD and with prospective landlords or agents, including, but not limited to, appointments to view potential Standard Apartments.
(8) If the Former Apartment is subject to rent control or rent stabilization, the Relocatee must apply to HCR to establish reduced rent for the Former Apartment. If HCR establishes the reduced rent for the Former Apartment at $1.00 per month or another nominal amount, the Relocatee must pay such rent, without interruption, to establish and maintain any such right to reoccupy the Former Apartment when repairs have been completed.
(9) If the Relocatee enters into an agreement with the owner of the Former Apartment terminating or diminishing his or her legal rights to occupancy of the Former Apartment, such action will result in termination of Relocation Services.
(1) Before a Relocatee voluntarily moves out of a temporary shelter provided by HPD, he or she must deliver a written notice, which includes the moving date, to his or her Case Manager. Except as otherwise provided in this subdivision, upon such notification, HPD will terminate Relocation Services on the moving date.
(2) If a Relocatee is or will be absent from any temporary shelter provided by HPD for four or more consecutive days but intends to return, he or she must notify HPD in writing in advance as to the cause of such absence, the date upon which he or she can return, and include any supporting documentation, which is subject to approval by HPD.
(3) Except where a Relocatee has notified HPD in compliance with paragraph (2) of this subdivision and HPD has approved the absence from the temporary shelter, HPD may terminate Relocation Services as provided in these Rules upon HPD’s determination that a Relocatee is not residing at his or her temporary shelter.
(1) After notice and hearing as provided in subdivisions (h) through (l) of these Rules, Relocation Services will be terminated upon a Relocatee’s unjustified refusal of one Standard Apartment that is Prepared for Occupancy and referred to him or her by HPD.
(1) The Relocatee unjustifiably fails or refuses to move into the Former Apartment after having been notified by HPD or the owner that such dwelling unit or room has been repaired and is no longer Uninhabitable, as required by paragraph 10 of subdivision (b);
(2) The Relocatee fails or refuses to fill out an application with NYCHA for housing or any other housing application required by HPD, or fails or refuses to provide information required by HPD or NYCHA relating to relocation efforts or the Relocatee’s eligibility for Relocation Services, as required by paragraph 6 of subdivision (b) or makes material misstatements or conceals material facts from HPD, NYCHA, or any other entity in any housing application that the Relocatee has submitted;
(3) The Relocatee fails or refuses to comply with the obligation to actively seek out a lawful dwelling unit and to accurately report his or her progress to the Case Manager on a weekly basis or at such intervals as HPD requires, or fails to keep HPD informed of his or her current address, telephone number and other contact information, as required under these Rules, as required by paragraph 1 of subdivision (d);
(4) The Relocatee or any member of his or her Family residing in a temporary shelter provided by HPD engages in conduct which threatens the health, safety or property of a Family member, other residents, guests or visitors in the shelter; City personnel, agents or employees; the owner of the shelter, his or her agents or employees; or any other person;
(5) The Relocatee makes material misstatements or conceals material facts from HPD, NYCHA, or any other entity concerning his or her initial or continued eligibility for Relocation Services;
(6) The Relocatee fails to respond to or comply with a notice for an appointment with employees of HPD, a Case Manager, or with prospective landlords or agents, including, but not limited to, an appointment to view a potential Standard Apartment;
(7) The Relocatee is ineligible for Relocation Services:
(i) because he or she did not in fact dwell in the Former Apartment or, the Relocatee is subject to a final order of eviction at the time that he or she would otherwise have been eligible for Relocation Services;
(ii) because the Relocatee has failed, where required, to file the application to HCR required by paragraph 8 of subdivision (d) of these Rules or has failed to remain current on his or her obligation to pay a reduced rent of $1.00 per month or another nominal amount for the Former Apartment as established by HCR;
(iii) because the Relocatee has signed or otherwise entered into an agreement with the owner of the Former Apartment terminating or diminishing his or her legal rights to occupancy of the Former Apartment, as provided by in paragraph 9 of subdivision (d);
(iv) because the Former Apartment is no longer Uninhabitable and the Relocatee has unjustifiably failed or refused to return to the Former Apartment; or
(v) because he or she is otherwise ineligible for Relocation Services; or
(8) The Relocatee behaves in a manner which substantially interferes with the orderly operation of the temporary shelter provided by HPD, including, but not limited to, repeated violations of any rules or regulations of such shelter.
(1) Prior to the termination of Relocation Services, HPD will give the Relocatee notice of the intended termination and an opportunity to be heard, according to the procedures stated in these Rules.
(2) HPD will deliver a notice of intention to terminate Relocation Services to a Relocatee in the manner provided in subdivision (n) of these Rules no fewer than seven days prior to the scheduled date of the hearing, provided, however that if the notice of intention to terminate to a Relocatee is based upon an allegation that the Relocatee behaved in a manner described in paragraph 8 of subdivision (g), or engaged in conduct described in paragraph 4 of subdivision (g), then the notice will be delivered no fewer than three days prior to the scheduled date of hearing. The notice will be in Spanish and English and such other language as the Department deems necessary. The notice will state:
(i) the date upon which HPD intends to terminate Relocation Services;
(ii) the factual and legal basis upon which HPD intends to terminate such Relocation Services;
(iii) the time, date and place of the hearing;
(iv) that for good cause, the Relocatee may request a change in the hearing date indicated in HPD’s notice of intended termination;
(v) that appearance at the hearing will stay any intended termination of Relocation Services until at least seven days after a hearing officer’s decision; and
(vi) that, if the Relocatee requests a hearing, he or she has the right to be represented by an attorney or other representative, to have a translator present, to testify, to produce witnesses to testify, to offer documentary evidence, to cross-examine opposing witnesses, and to examine the Site Occupancy Record, upon request, at a reasonable time prior to the hearing.
(3) If the Relocatee is unable to attend the hearing at the time, date and place indicated in the notice of intended termination, he or she must deliver notice of such unavailability to HPD in writing at least three days before the proposed hearing date.
(1) The termination hearing will be conducted by an impartial hearing officer designated by HPD. The hearing officer will have the power to administer oaths and have no prior personal knowledge of the facts concerning the proposed termination of Relocation Services.
(2) The hearing will be informal. All relevant and material evidence will be admissible and the legal rules of evidence will not apply. The Site Occupancy Record will be part of the evidence at any hearing whether or not the Case Manager is or can be present. The hearing will be confined to the factual and legal issues raised in the notice of intended termination of Relocation Services.
(3) The Relocatee will have a right to be represented by counsel or other representative, to testify, to produce witnesses to testify, to offer documentary evidence, to cross-examine opposing witnesses and to examine the Site Occupancy Record.
(4) For good cause, the hearing may be adjourned by the hearing officer on his or her own motion or at the request of the Relocatee or HPD.
(5) HPD will provide translation services for Relocatees who request such services prior to the date of the termination hearing.
(1) After a hearing has concluded, the hearing officer will render a decision which includes:
(i) written findings of fact;
(ii) the legal basis for any decision to terminate or to deny termination of Relocation Services; and
(iii) if the termination is granted, the date of termination of Relocation Services.
(2) A copy of the decision will be provided to the Relocatee. If the termination is granted, a copy of the decision will be provided no fewer than seven days prior to the date of termination set by the hearing officer. In the case of termination for threatening conduct by the Relocatee or a member his or her Family as described in paragraph 4 of subdivision (g) of these Rules, such decision will be provided at least 24 hours before the termination date. Notwithstanding any other provision of these Rules, the hearing officer will not set a date for termination of Relocation Services that is later than 14 days after the date of his or her decision.
(3) Delivery of the copy of a decision rendered pursuant to this section will be made in the manner for giving notice provided in subdivision (n) of these Rules.
(4) A decision rendered pursuant to this subdivision will be final absent a timely appeal as described in subdivision (l) of these Rules, and will apply to the Relocatee and his or her Family, if any.
(1) Failure to appear at the termination hearing on the date described in HPD’s notice of intended termination of Relocation Services, or on any adjourned date, will result in termination of Relocation Services, unless the Relocatee makes a written application to the hearing officer. Such written application must be filed no later than four days before the scheduled date of termination of Relocation Services. In the application, the Relocatee must provide facts establishing that either:
(i) the Relocatee was not properly served with a notice of intended termination of Relocation Services and opportunity for a hearing; or
(ii) the default was excusable and that Relocatee has a meritorious defense to the intended termination.
(2) The termination date may be delayed if such written application is made by the Relocatee prior to the scheduled date of termination of Relocation Services.
(3) The written application submitted to the hearing officer by the Relocatee pursuant to this section may be granted if the Relocatee provides facts establishing either of the grounds described in paragraph (1) of this subdivision. In such circumstance, in accordance with the provisions of subdivision (h) of these Rules, HPD will deliver to the Relocatee a new notice of intention to terminate Relocation Services and opportunity for a hearing. However, the hearing date will be scheduled on the third business day after delivery of such notice.
(1) An appeal from a decision of a hearing officer may be made in writing to the person designated by the Commissioner of HPD, if it is received within five days after the date of delivery of the hearing officer’s decision. The record before the Commissioner’s designee will consist of the record of the proceedings, the Site Occupancy Record, the hearing officer’s decision and any written arguments which the appellant may wish to submit.
(2) Termination of Relocation Services will be stayed pending a determination of the appeal. A copy of the decision on appeal will be delivered in the manner for giving notice provided in subdivision (n) of these Rules. Termination will not be ordered during the sevenday period immediately following the delivery of the decision on appeal. However, in the case of termination for threatening conduct of the Relocatee or his or her Family as described in paragraph 4 of subdivision (g) of these Rules, termination may occur within 24 hours after delivery of notice of an adverse decision on appeal.
*Editor’s note: There were two subsections designated as (2) in this subsection (m); renumbered at the discretion of the editor.
(1) HPD will provide a written determination approving or denying a Claimant’s eligibility for applicable Relocation Services.
(2) A Claimant must advise HPD in writing of his or her acceptance of applicable Relocation Services after receiving the notice of eligibility for such Services. If such Claimant fails to provide such notice, such offer will be permanently withdrawn. A claimant may not administratively appeal a withdrawal of an offer of Relocation Services based upon failure to notify HPD of acceptance.
(3) An appeal by a Claimant from a decision by HPD to deny Relocation Services based upon ineligibility for a reason other than failure to notify HPD of acceptance, may be made in writing to the person designated by the Commissioner of HPD, if it is received within ten days of the date of the denial letter. The record before the Commissioner’s designee will consist of the basis for the department’s determination and any written arguments which the appellant may wish to submit.
(4) The appeal officer will provide a timely written determination approving or denying the Claimant’s appeal. No Relocation Services will be provided pending such determination.
(i) Any written notice by HPD required to be provided under these Rules will be delivered by one of the following methods:
(1) personally served on a Relocatee;
(2) mailed to the Relocatee at his or her place of residence in a temporary shelter or other residence as provided by such Relocatee, or, in the case of a written determination of eligibility for Relocation Services to a Claimant at the address provided by such Claimant;
(3) left with a person of suitable age and discretion at Relocatee’s place of residence in a temporary shelter or other residence as provided by such Relocatee; or
(4) placed under the door of Relocatee’s place of residence in a temporary shelter and a copy left with the desk clerk or other responsible representative of the proprietor or lessee of the temporary shelter.
(ii) Unless these Rules specifically require otherwise, where a Relocatee is required to provide any notice under these rules, he or she must provide a copy to his or her Case Manager and HPD in writing.
§ 18-02 Relocation Assistance to Persons Displaced from City-Owned Dwelling Units by Certain Vacate Orders.
(a) Application. Notwithstanding the provisions of 28 RCNY § 18-01, this 28 RCNY § 18-02 shall apply to persons residing in City-owned buildings which are subject to a Vacate Order which, by its terms, shall take effect thirty (30) or more days after the date of issuance.
Administrative Code. “Administrative Code” refers to the New York City Charter and Administrative Code.
Agency or Department. “Agency or Department” refers to the Division of Relocation Operations, Department of Housing Preservation and Development (HPD), 75 Maiden Lane, New York, New York 10038.
Prepared for occupancy. “Prepared for occupancy” refers to apartments that are prepared for occupancy when freed of all violations classified as immediately hazardous by the Office of Rent and Housing Maintenance pursuant to Article 2 of Subchapter 5 of Chapter 2 of Title 27 of the Administrative Code, supplied with all appropriate fixtures and appliances, painted, exterminated, if necessary, and reasonably cleansed and available for occupancy.
Relocatee. “Relocatee” refers to an individual or a head of household and his or her family, deprived of a permanent residence rented by the person, household or family in the City of New York as a direct result of the enforcement of a Vacate Order (as defined in these regulations) and eligible for relocation services or benefits under these regulations and any other applicable law. “Family” and “household” shall include those persons who permanently resided with a head of household at the time the Vacate Order was issued.
Relocatee accepts an apartment. “Relocatee accepts an apartment” refers to relocatee has established to the Department that the relocatee has leased an apartment in a privately-owned building; or relocatee has paid the first month rent for an apartment in a City-owned building.
Relocation manager. “Relocation manager” refers to an employee of the Department assigned to coordinate and direct the furnishing of relocation services to a particular relocatee.
Site occupancy record. “Site occupancy record” refers to a written file concerning each relocatee maintained by the relocation manager, recording all pertinent agency actions concerning the relocatee.
Standard apartment. “Standard apartment” refers to an apartment satisfying the following criteria:
(i) There may not be more than three (3) immediately hazardous violations as classified by the Office of Rent and Housing Maintenance pursuant to Article 2 of Subchapter 5 of Chapter 2 of Title 27 of the Housing Maintenance Code, in the building which directly and adversely affect the use of the apartment;
(ii) The number of rooms and the floor area of rooms must be adequate for all resident family or household members and meet the requirements of the Administrative Code;
(iii) There shall be no infestation, by vermin, mice or other pests, or a letter shall be submitted from a licensed exterminator certifying that the building is under contract to be serviced monthly;
(iv) It must be self-contained and may not have any rooms or facilities which can be reached only by going through a public area;
(v) The building must have central heat and hot water;
(vi) There must be a private kitchen or kitchenette within the apartment for the exclusive use of the tenant;
(vii) There must be private and fully enclosed toilet and bathing facilities within the apartment for the exclusive use of the tenant; and
(viii) Each room must have a window or adequate light and ventilation.
Suitable Accommodation. “Suitable accommodation” refers to accommodations adequate in size to meet the needs of relocatee and his/her family as defined by § 27-2075 of the Administrative Code.
Vacate Order. “Vacate Order” refers to any order of a governmental agency requiring occupants of a structure to depart therefrom, which order, by its terms, shall take effect thirty (30) or more days after its issuance, pursuant to the following:
(i) Health Department vacate orders issued pursuant to § 17-159 of the Administrative Code (relating to orders for housing defects likely to cause disease) or other provision of law;
(ii) Buildings department vacate orders issued pursuant to §§ 26-101 et seq. of the Administrative Code or other provision of law.
(iii) Fire department vacate orders issued pursuant to § 15-227 of the Administrative Code or other provision of law
(iv) Code enforcement vacate order issued pursuant to § 27-2139 of the Administrative Code by the Division of Code Enforcement or other divisions of HPD.
(1) Upon receiving notice of a Vacate Order which is applicable to a City-owned building, the Department shall promptly offer relocation assistance to residential tenants of the building and shall furnish them with a copy of this section in English and Spanish and notify them of the name, office address and telephone number of the Relocation Manager assigned to them. Copies of this section in English and Spanish shall be posted in the office of the Relocation Manager.
(2) The Department shall refer relocatee to at least three (3) Standard Apartments or apartments which may be repaired to be Standard Apartments, which may be located in other City-owned buildings. Such apartments shall, if available, be located in the borough of the relocatee’s choice. If the relocatee prefers relocating into a rooming unit, the relocatee shall be referred to rooming units if any are available.
(3) The Department may, in its discretion, provide temporary shelter as provided in subdivision (n) of this section subject to such conditions as the Department may impose.
(1) The relocatee has the duty of inspecting a dwelling unit to which the relocatee has been referred by the Department within three (3) working days. If the relocatee believes that the accommodations are unsuitable or otherwise unacceptable, the relocatee must give the Department a written description of the specific defects claimed within four (4) working days after the referral.
(2) The relocatee has a duty to advise the Department whenever permanent accommodations are found and to keep the Department advised regarding the date of expected occupancy.
(3) The relocatee is entitled to withdraw his or her acceptance of an apartment if the apartment is not prepared for occupancy within thirty (30) days after initial acceptance. In such an instance, the relocatee shall notify the Department in writing, if possible, or orally, within three (3) working days of the withdrawal of acceptance of an apartment.
(1) Eligible persons. A relocatee shall be entitled to a moving expense allowance if the relocatee satisfies the following criteria:
(i) The relocatee is not entitled to payment of moving expenses from another City agency;
(ii) The relocatee must be moving to an accommodation to which the relocatee was referred or which has been approved by the Relocation Manager;
(iii) The relocatee must not be under investigation by the Fire Department in relation to a fire of suspicious origin; and
(iv) The Department has not determined the relocatee to be ineligible pursuant to subdivision (g) of this section of these regulations.
(2) Moving expense allowance. An eligible relocatee shall receive the following assistance:
(i) The Department may move the relocatee’s belongings at the Department’s expense, or
(ii) If the relocatee notifies the Department prior to the date of the move that the relocatee wishes to arrange for moving independently, the Department may grant financial assistance in accordance with a schedule of moving allowances prepared by the agency, which shall provide for an allowance based on the number of rooms vacated as follows:
| Number of rooms vacated | Amount |
|---|---|
| 1 - 1 1/2 | $75.00 |
| 2 - 2 1/2 | $110.00 |
| 3 - 3 1/2 | $150.00 |
| 4 - 4 1/2 | $190.00 |
| 5 - 5 1/2 | $225.00 |
| 6 - 6 1/2 | $250.00 |
| 7 - 7 1/2 | $275.00 |
| 8 - 8 1/2 | $300.00 |
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Such financial assistance shall be:
(A) By credit against future rent if the relocatee is moving into a City-owned building, or
(B) By reimbursement to the relocatee if the relocatee is moving into a building which is not City-owned, provided that prior to such reimbursement relocatee shall submit a paid bill within ten (10) working days following the move.
(1) Eligible persons. A relocatee shall be awarded a relocation incentive payment, calculated as set forth below, if the relocatee satisfies the following criteria.
(i) The relocatee must either (A) accept an apartment to which the relocatee has been referred by the Relocation Manager within 10 days of having been referred to three Standard Apartments by the Relocation Manager and move into that apartment within 10 days of the date on which that apartment is prepared for occupancy; or (B) move within 30 days from the initial verbal or written contact of the relocatee by the Relocation Manager after issuance of the Vacate Order; whichever is later;
(ii) The relocatee must move to an accommodation to which the relocatee has been referred by or which has been approved by the Relocation Manager;
(iii) The relocatee must not be under investigation by the Fire Department in relation to a fire of suspicious origin;
(iv) The Department has not determined the relocatee to be ineligible pursuant to subdivision (g) of these regulations.
(2) Incentive allowance. An eligible relocatee shall receive a relocation incentive payment in accordance with the Maximum Monthly Shelter Allowance schedule established under Human Resources Administration Regulations, Chapter II, § 352.3(2)-1 as set forth below:
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| 1 | $152.00 |
|---|---|
| 2 | $183.00 |
| 3 | $194.00 |
| 4 | $218.00 |
| 5 | $226.00 |
| 6 | $249.00 |
| 7 | $303.00 |
| 8 or more | $317.00 |
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The above schedule shall be revised without further amendment to these regulations, whenever HRA amends its Maximum Monthly Shelter Allowance Shelter.
(1) A relocatee unjustifiably refuses to accept three (3) standard apartments or, if the relocatee is to be relocated to a rooming unit, three (3) rooming units which are suitable accommodations, to which the relocatee has been referred by the Department.
(2) The relocatee has made material misstatements or concealed material facts from the Department concerning the relocatee’s initial or continued eligibility for relocation services;
(3) Suitable and habitable permanent accommodations are available to the relocatee at the time of notice of determination;
(4) The relocatee has failed to respond to a notice for appointment with employees of the Department, as required;
(5) The relocatee did not in fact dwell in the vacated premises;
(6) The relocatee, if in temporary shelter, has had temporary shelter benefits terminated under subdivisions (f)(3) or (5), (g) or (h) of 28 RCNY § 18-01;
(7) The relocatee or a member of the family or household has engaged in conduct which threatens the health, safety or property of the residents, guests or visitors of residents of the building to be vacated or the staff of the Department;
(8) The relocatee was subject to legal action by the Department which is resolved in the Department’s favor;
(9) The relocatee has refused, without good cause, a request by the Department to provide pertinent information relevant to the agency’s relocation efforts, or the relocatee’s eligibility for benefits or services; or
(10) The relocatee is otherwise ineligible.
(1) Protest of determination ineligibility. If it is determined by the agency that the relocatee is ineligible for benefits, the relocatee may, within thirty (30) days of receiving written notification of ineligibility, file with the Assistant Commissioner of the Division of Relocation Services a written protest and request that the determination be reviewed. The relocatee’s protest shall set forth the basis for the protest and the reasons claimed as the grounds on which such determination should be reversed. The protest shall be reviewed by the Assistant Commissioner unless the relocatee indicates that he or she desires a hearing or the Assistant Commissioner, in his or her discretion, directs that a hearing be held. Upon receipt of a request for a hearing or if a determination is made that a hearing would be appropriate, the Department shall establish the time, date and place for the hearing and provide notice of the hearing to the relocatee. The provisions of subdivisions (i) to (m) of this section of the regulations shall apply to the notice of hearing and the hearing procedures.
(2) Other claims for review of an agency action. In situations other than a determination of ineligibility, if a relocatee believes he or she has been or will be harmed by any action of the Department which the relocatee believes is in violation of any law or regulations, the relocatee may make application for relief to the Assistant Commissioner of the Division of Relocation Operations. The relocatee shall file a written request setting forth the action and the manner in which he or she believes he or she will be harmed. The Assistant Commissioner, in his or her discretion, may issue a determination on the request or direct that a hearing be held on the application. If a hearing is to be held, the provisions of subdivisions (i) to (m) of this section shall apply to the notice of hearing and hearing procedures.
(1) A hearing held pursuant to subdivision (h) of this section shall be conducted by an impartial hearing officer appointed by the Department in accordance with the Manual for Hearing Officers in Administrative Adjudication. The hearing officer may be an employee of the agency. The hearing officer shall have the power to administer oaths and shall have no prior personal knowledge of the particular facts concerning the denial of benefits or the claim to be reviewed.
(2) The Department shall establish the date, time and place of any hearing and shall provide notice of the date, time and place of the hearing to the relocatee in the manner provided in subdivision (m) of this section at least three (3) days prior to the hearing date.
(3) A hearing shall be informal. All relevant and material evidence shall be admissible. Any site occupancy record shall be part of the evidence at any hearing whether or not the Relocation Manager is or can be present. A hearing shall be confined to the factual and legal issues raised in the determination for which review has been sought by the relocatee.
(4) A relocatee shall have a right to be represented by counsel or other representative, to testify, to produce witnesses to testify, to offer documentary evidence to cross-examine opposing witnesses and to examine the site occupancy record.
(5) For good cause, a hearing may be adjourned by the hearing officer on the hearing officer’s own motion or at the request of a relocatee or the Department.
(6) A hearing officer shall make a written summary of the proceedings including a statement of the relocatee’s oral and written position and shall annex any documentary evidence offered at the hearing in support thereof. The relocatee shall be shown this summary and given the opportunity to object. In the case of a Spanish-speaking relocatee, the summary shall be read to the relocatee in Spanish. In the event any objection is not resolved at the hearing, that objection shall be made part of the summary. The relocatee shall promptly be provided with a copy of the completed summary. The hearing officer may, in the hearing officer’s discretion, combine this summary with any findings of fact.
(7) The Department will provide adequate translation services for a Spanish-speaking relocatee.
(1) The hearing officer shall render a decision which shall include written findings of fact and shall state the legal basis for any decision. The decision shall be final absent a timely appeal as described in subdivision (l) below.
(2) A copy of the decision shall be mailed or delivered to the relocatee within seven (7) business days after the hearing. Delivery shall be made in the manner for giving notice provided in subdivision (m) of this section.
(3) The hearing officer may take into consideration relevant circumstances, including, in appropriate cases:
(i) The relocatee’s cooperation with the Department;
(ii) That the accommodation previously accepted by the relocatee and not withdrawn by the Department is not prepared for occupancy;
(iii) That physical incapacity or illness of the relocatee or member of the family or household prevented the relocatee from complying with the relocatee’s obligations under subdivision (d) hereof; and
(iv) The hardship which will result to the relocatee or the family or household.
(1) That the relocatee was not properly served with a notice of hearing; or
(2) That the default was excusable and that relocatee has a meritorious defense to action taken by the agency.
(1) Personally served on the relocatee;
(2) Left with a person of suitable age and discretion at the relocatee’s place of residence and mailed to the relocatee; or
(3) Affixed to the door of the relocatee’s place of residence and mailed to the relocatee.
(1) The Department, in its discretion, may provide temporary shelter prior to or after the effective date of the vacate order. The Department may limit the granting of such benefits to situations in which the relocatee has selected a permanent accommodation and the dwelling is not yet ready for occupancy.
(2) The Department, if it provides temporary shelter, shall pay the actual cost of temporary shelter up to $12 per day for one adult and $7 per day for each additional person residing with the relocatee in the room or, if suitable substitute shelter is unavailable for these amounts, the Department may pay such additional sums as are necessary to obtain suitable shelter for the relocatee.
(3) If a relocatee is provided temporary shelter, the relocatee shall be provided with a copy of 28 RCNY § 18-01, in English and in Spanish, upon moving into temporary shelter and only the provisions of that section relating to termination of temporary shelter benefits and the obligations of a relocatee in temporary shelter shall apply to the relocatee.
§ 18-03 Finder’s Fees. [Repealed]
(Repealed City Record 6/13/2018, eff. 7/13/2018)
§ 18-04 Relocation of Tenants from Public Improvements and Quasi-public Sites and City Assisted Urban Renewal Sites.
(a) Purpose. The purpose of this section is to implement for the City of New York the rules and regulations affecting relocation practices and benefit payments for those eligible site occupants who are displaced from public improvement and quasi-public sites or from urban renewal sites which are not federally assisted.
Business concern. “Business concern” refers to a corporation, partnership, individual proprietor or other private entity, including a nonprofit organization, engaged in some type of business, professional or institutional activity necessitating fixtures, equipment, stock in trade, or other tangible property for the carrying on of the business, professional or institution.
City assisted urban renewal site. “City assisted urban renewal site” refers to undertakings and activities of the City of New York in a designated area, under an urban renewal plan as authorized under the provisions of Article 15 of the General Municipal Law, and which is not assisted by the Federal Government.
Displaced person. “Displaced person” refers to any family, individual, or partnership, corporation or association who is displaced or moves from real property, or who moves his personal property from such real property, in or after the date of the acquisition of the real property for the site or project.
Dwelling. “Dwelling” refers to the purpose of determining payments to residential tenants or persons in occupancy under regulations governing all benefit payments other than moving expenses, the term “dwelling” shall mean the primary place of permanent abode of a person and does not include seasonable or part time dwelling units such as beach houses or vacation bungalows.
Family. “Family” refers to two or more individuals who by blood, marriage, adoption or mutual consent live together as a family unit. For example, two roommates would not be a family, but a couple, who live together as a family, even if not formally married, would be entitled to benefits as if they were married. A certificate of registration as domestic partners in the City of New York shall be evidence of a family relationship for the purposes of this section.
Finder’s fee apartment. “Finder’s fee apartment” refers to a standard dwelling unit which is provided to the Department of Housing Preservation and Development by any owner, agent or broker for a fee, and into which a relocatee has been moved by the Department.
Furnished room. “Furnished room” is a room rented furnished, usually by the week, which does not have a toilet and bath for the exclusive use of the tenant. Unit must be in conformance with local code standards for boarding houses, or other dwellings for congregate living.
Individual. “Individual” refers to a person who is not a member of a family.
Institutionalized. “Institutionalized” refers to a term to mean the placement of a residential tenant to any hospital, nursing him, or other institution on an indefinite basis.
Property. “Property” refers to tangible personal property, excluding fixtures, equipment and other property which under State or local law are considered real property, but including such items of real property as the site occupant may lawfully remove.
Public housing. “Public housing” refers to housing operated, maintained or leased by the New York City Housing Authority.
Public improvement site. “Public improvement site” refers to an area which the City of New York has condemned for a public use; such public uses may be schools, libraries, hospitals, parks, playgrounds, road widening, police stations, fire houses, etc.
Standard Unit. “Standard unit” refers to one which is decent, safe and sanitary and must:
(i) have a window or adequate light and ventilation in every room.
(ii) have central heat and central hot water system.
(iii) have a kitchen or kitchenette for the exclusive use of the tenant.
(iv) have a fully enclosed bathroom containing toilet and bath for the exclusive use of the tenant.
(v) have no hazardous violations as recorded by the Department of Buildings against the premises.
(vi) be inspected and approved as standard by the Department of Housing Preservation and Development.
(vii) rental should not exceed 25 percent of the relocatee’s gross income or within the financial means of the displaced person.
(viii) not be generally less desirable than the acquired dwelling with respect to public utilities, public and commercial facilities, and be reasonably accessible to the displaced persons present or potential place of employment.
(ix) not be overcrowded.
(1) The real property in which the person resides or does business must have been acquired by the City of New York; and the person must have moved as a result of its acquisition.
(2) The person must be an occupant of the real property on the date title vested in the City of New York.
(3) Displacement is made necessary by the acquisition of such real property by the City of New York.
(1) In case of any disputed questions of eligibility or determinations of the amount of a relocation payment, which is not disposed by agreement, the displaced person may request and will receive a review by the Commissioner or his designee, which designee shall not be one who has participated in the original decision.
(2) Upon such review, the displaced person may submit any and all additional material in writing for consideration in the matter.
(3) Such review as provided in paragraph (1) above, must be requested in writing within 30 days of the date of the original determination by the Department. The request shall be sent to Commissioner of the Department of Housing Preservation and Development, 100 Gold Street, New York, N.Y. 10038.
(4) The decision of the Commissioner shall be made in writing to the displaced person making such appeal, which decision shall be final.
(1) The actual reasonable expenses in moving himself, his family, business, or other personal property;
(2) The actual direct loss of tangible personal property incurred as a result of moving or discontinuing a business but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property, as determined by the head of the Department of Housing Preservation and Development, or his designee;
(3) The actual reasonable expense of searching for a substitute business site. The amount of this payment is limited to $500. Payment for expenses related to the finding of replacement housing is not authorized.
(1) Allowable expenses.
(i) Packing and crating of personalty.
(ii) Advertising for packing, crating and transportation as the head of the Department of Housing Preservation and Development or his designee may require.
(iii) Storage of personal property for a period not to exceed 6 months when the head of the Department of Housing Preservation and Development, or his designee, determines that storage is necessary.
(iv) Insurance premiums covering loss and damage of personal property while in storage or transit.
(v) Removal, dismantling and reassembly of machinery, equipment, appliances and other items, not acquired as real property, including reconnection of utilities which do not constitute an improvement to the replacement site, and which were not acquired by the City of New York.
(vi) Such other reasonable expenses as determined by the head of the Department of Housing Preservation and Development, including expenditure incurred by and in behalf of the City incidental to the move.
(2) Limitations.
(i) When the displaced person accomplishes the move himself, the amount of payment shall not exceed the estimated cost of moving commercially established by the Department of Housing Preservation and Development unless the Department of Housing Preservation and Development determines that documentation submitted by the displaced person justifies a larger amount.
(ii) When an item of personal property used in connection with any business is not moved but sold and promptly replaced with a comparable item, reimbursement shall not exceed the replacement cost minus the proceeds received from the sale, or the cost of moving, whichever is less.
(iii) When personal property used in connection with any business to be moved is of law value and high bulk, and the cost of moving would be disproportionate in relation to the value, in the judgment of the head of the Department of Housing Preservation and Development or his designee, the allowable reimbursement for the expense of moving the personal property shall not exceed the difference between the amount which would have been received for such item on liquidation and the cost of replacing the same with a comparable item available on the market.
(iv) The owner of an outdoor advertising display who does not receive either a fixture award or a fee award, and who does not conduct a business on the site, shall be entitled only to moving expenses. However, the amount of the moving expense to be paid shall be limited to the less of
(A) The value of the sign or
(B) The actual moving cost.
(v) In the event any tenant who moves chooses to take actual moving expense allowances, the following notice to the Department of Housing Preservation and Development is required:
(A) Residential tenants must provide not less than 5 days written notice with moving estimate before the move takes place of tenant’s intention.
(B) Commercial tenants must provide notice of intention to move not less than 30 days nor more than 90 days prior to the commencement of the move, and must submit 3 independent bona-fide estimate or bids at least 15 days prior to the commencement of the move.
(1) Cost of moving structures, improvements or other real property in which the displaced person reserved ownership.
(2) Interest on loans to cover moving expenses.
(3) Loss of good will.
(4) Loss of profits.
(5) Loss of trained employees.
(6) Personal injury.
(7) Cost of preparing the application for moving and related expenses.
(8) Modification of personal property to adapt it to the replacement site, except when required by law.
(9) Additional expenses incurred because of living in a new location.
(10) Such other items as the head of the Department of Housing Preservation and Development determined should be excluded.
(1) When the personal property other than stock kept for sale is abandoned, the displaced person is entitled to payment for the difference between the in-place value and the amount which he receives from the sale of the item, or the cost of moving, whichever is less.
(2) When the displaced person does not move personal property and claims direct loss, he shall be required to make bonafide effort to sell it.
(3) When personal property is sold and the business reestablished, the displaced person is entitled to payment as provided in 28 RCNY § 18-04(f)(2)(ii).
(i) Expenses in searching for replacement business site.
(1) Subject to the limitation herein, the following items are allowed:
(i) Travel costs.
(ii) Reasonable cost for meals and lodging.
(iii) Time spent in searching at the rate of the displaced person’s salary or earnings, but not to exceed $10 per hour.
(iv) Broker or realtor fee to locate a replacement business with the advance approval of the head of the Department of Housing Preservation and Development or his designee.
(2) Limitation on such expenses. The total amount which a displaced person may be paid for searching expense shall not exceed $500.
(1) Residential tenants.
(i) Any displaced person eligible for moving expense payments who is displaced from a dwelling may, in lieu of actual moving expense, elect to accept a fixed moving expense allowance not to exceed $300 according to the following schedule:
(A) For persons who own furniture:
| No. of Rooms | Amount / No. of Rooms | Amount |
|---|---|---|
| 1 - 1 1/2 | $120 / 5 - 5 1/2 | $300.00 |
| 2 - 2 1/2 | $170 / 6 - 6 1/2 | $300.00 |
| 3 - 3 1/2 | $215 / 7 - 7 1/2 | $300.00 |
| 4 - 4 1/2 | $260 / 8 - more | $300.00 |
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(B) For persons who do not own furniture:
$25, for the first room and $15 additional for each additional room.
(ii) Every displaced residential tenant who chooses a fixed payment moving expense in lieu of actual moving expense shall also be entitled to a Dislocation Allowance of $200. This Dislocation Allowance is not subject to any set off by the Department of Housing Preservation and Development.
(iii) In the event any residential tenant is required by the Department of Housing Preservation and Development to move to another unit within the same site, whether through emergency or furtherance of clearance, such tenant can at his option elect to receive actual money expenses or the fixed “in lieu of payment. No Dislocation Allowance can be paid for an on-site move.
(2) Business fixed payment. Any displaced person otherwise eligible for moving expense payment who is displaced from his place of business may elect to choose one of three types of fixed payments in lieu of actual moving and related expenses:
(i) Six times the monthly rental. This choice may be elected by any commercial tenant. The maximum payment if $4,000, the minimum is 400, and such choice replaces actual moving expenses and related expense. It is not necessary to submit moving estimates.
(ii) “In lieu of” payment. This choice may be selected by a commercial tenant who satisfies the head of the Department of Housing Preservation and Development, or his designee, that:
(A) The business cannot be relocated without a substantial loss of its existing patronage. Loss of existing patronage to a business must include the following factors: the type of business conducted by the displaced concern; the nature of the clientele of the displaced concern; and the relative importance of the present and proposed location to the displaced business; and
(B) The business is not a part of a commercial enterprise having at least one other establishment not being acquired by the City of New York, which is in the same or similar business; and
(C) The business contributes materially to the income of the displaced owner. This standard eliminates those part-time family occupations such as newspaper routes, part-time typing, etc. unless they contribute substantially to the displaced person’s income.
This “in lieu of” payment shall be in the amount equal to the average annual earnings of the business, except that such payment shall not be less than $2,500 nor more than $10,000.
Any “in lieu of” payment to an eligible non-profit making organization shall be limited to $2,500 unless it is in fact operating a profit making business.
The definition of “contributes materially to the income of the displaced owner” shall mean:
(a) That the business had average annual gross receipts of at least $2,000, or
(b) That the business had average annual net earnings of at least $1,000 or
(c) That the business contributed at least 33 1/3 percent of the average total annual income of the owner or owners.
The average annual receipts, earning or income is determined by one half the sum during the 2 taxable years immediately preceding the taxable year in which the business moves, or during such other period as the head of the Department of Housing Preservation and Development may determine.
In the event this choice is taken by the tenant no moving estimates or bids are necessary to be submitted by tenant. This choice replaces actual moving expenses and related expense.
(iii) A negotiated payment. This choice may be selected by commercial tenants only upon prearrangement and consent of the head of the Department of Housing Preservation and Development, or his designee. This choice replaces actual moving expenses and related expenses. The negotiated amount is the specific amount approved for payment(s) by the Department of Housing Preservation and Development prior to any actual move and requires the submission by the tenant of at least three acceptable estimates or bids for moving, the physical inspection by the Department of Housing Preservation and Development, the written offer by the tenant to accept a stipulated amount, and the written approval, prior to the move, from the Department of Housing Preservation and Development. The stipulated amount must be considerably below the lowest estimated cost of the move. If this choice is taken, no detailed bills need be submitted by the tenant.
(1) The addition to payments otherwise authorized pursuant to subdivisions (e), (f), (j) and (t) of this section, the head of the Department of Housing Preservation and Development or his designee, shall make an additional payment not in excess of $15,000, to any displaced person who is displaced from a dwelling actually owned and occupied by such displaced person for not less than 180 days prior to the acquisition of the property. Such additional payment shall include the following elements:
(i) The amount, if any, which when added to the amount of condemnation award or purchase price (if by negotiation) of the dwelling acquired by the City of New York, equals the reasonable cost of a comparable replacement dwelling which is decent, safe and sanitary dwelling adequate to accommodate such displaced person, reasonably accessible to public services and places of employment and available on the private market.
(ii) The amount, if any, which will compensate such displaced person for any increased interest costs which such person is required to pay for financing the acquisition of any such comparable replacement dwelling. Such amount shall be paid only if the dwelling acquired by the City of New York was encumbered by a bonafide mortgage which was a valid lien on such dwelling for not less than 180 days prior to the acquisition of dwelling. Such amount shall be equal to the excess in the aggregate interest and other debt service costs of the amount of the principal of the mortgage on the replacement dwelling which is equal to the unpaid balance of the mortgage on the acquired dwelling, over the remainder term of the mortgage on the acquired dwelling, reduced to discounted present value. The discount rate shall be the prevailing interest rate paid on saving deposits by commercial banks in the general area in which the replacement dwelling is located.
(iii) Reasonable expenses incurred by such displaced person for evidence of title, recording fees and other closing costs incidents to the purchase of the replacement dwelling, but not including prepared expenses. Attorneys fees shall be not more than one percent of the purchase price, with a minimum of $200.
(2) The additional payment of replacement housing for homeowners shall be made only to such displaced person who purchases and occupies a replacement dwelling which is a decent, safe and sanitary dwelling, not later than the end of the one year period beginning on the date on which he receives from the City of New York payment for the acquired dwelling, or on the date on which he moves from the acquired dwelling whichever is the later date.
(3) Whenever a displaced person is eligible for a payment but has not yet purchased a replacement dwelling, the head of the Department of Housing Preservation and Development shall at the request of the displaced person, provide a written statement to any interested person, financial institution or lending agency as to such person’s eligibility for a payment and the requirements that must be satisfied before such payment can be made.
(1) A displaced owner. Occupant is eligible for a replacement housing payment if he meets the eligibility requirements enumerated under subdivision (k) of this section.
(2) A displaced owner-occupant of a dwelling who is determined to be ineligible for a homeowners replacement housing payment may be eligible for a replacement housing payment for tenants and others as more fully set forth in subdivision (n) of this section.
(1) Differential payment for replacement housing.
(i) Displaced owner. Occupants shall have the right to elect to use either a schedule method or comparative method in determining the amount to be paid.
(A) The schedule method: The schedule of average prices of comparable sales housing in the locality, is as follows:
| No. Bedrooms | Average Sales Price |
|---|---|
| 1 | $40,600 |
| 2 | $40,600 |
| 3 | $56,700 |
| 4 | $71,400 |
| 5 or more | $71,400 |
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(B) The Comparative Method: The cost of comparable unit is determined on a case by case basis through the use of the sales price (together with any adjustments necessary to reflect the market sales experience) of one or more dwelling determined to be the most representative of the acquired dwelling and conforming to the definition of “comparable replacement housing”. The comparable dwellings may be selected by the Relocation Agency, or by the displaced person with the approval of the Relocation Agency.
(ii) Limitations.
(A) If the displaced person, of his own volition, purchases and occupies a decent, safe and sanitary dwelling at a price less than the acquisition price of the acquired building, no differential payment shall be made.
(B) If the displaced person, of his own volition, purchases and occupies, a decent, safe and sanitary dwelling at a price less than the average sale price, as above, of a comparative replacement dwelling, the differential payment will be reduced to that amount required to pay the difference between the acquisition price of the acquired dwelling and the actual purchase price of the replacement dwelling.
(C) If the dwelling unit occupied by the claimant was part of a structure owned by the claimant which also included space used for non-residential or multi-residential purposes, the amount of the differential payment shall be determined by using as the acquisition payment of the dwelling unit only that part of the total payment which relates to the value of the claimant’s residential use portion of the structure.
(D) When an eligible claimant, who has received all or a portion of a rental assistance payment (because he elected to rent), subsequently files a claim for replacement housing payment for homeowners, the total amount of the rental assistance payment he has received must be deducted from the amount of the payment to which he may be entitled.
(2) Interest payment. The interest payment shall be based on present value of the reasonable cost of the interest differential, including points paid by the purchaser on the amount refinanced not to exceed the amount of the unpaid debt for its remaining term at the time of acquisition of the real property.
(3) Incidental expenses.
(i) The incidental expense payment is the amount necessary to compensate the homeowner for costs incident to the purchase of the replacement dwelling such as:
(A) Legal, closing and related costs including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings of plats, and charges incident to recordation. Attorney fees are limited to one percent of the purchase price but not less than $200.
(B) Lenders, Federal Housing Administration, or Veterans Administration appraisal fees.
(C) Federal Housing Administration application fee.
(D) Certification of structural soundness when required by lender, Federal Housing Administration or Veterans Administration.
(E) Credit report.
(F) Title policies or abstracts of title.
(G) Escrow Agent’s Fee (mortgage fee).
(H) State revenue stamps, or sale or transfer taxes.
(ii) No fee, cost, charge or expenses is reimbursable which is determined to be a part of the finance charge under Title I of the Federal Truth in Lending Act and Regulation “Z” issued pursuant thereto.
(1) A displaced tenant or owner-occupant of less than 180 days before condemnation date, is eligible for a replacement housing payment if he actually occupied the dwelling for not less than 90 days immediately prior to the acquisition of the property, and meets the other eligibility requirements.
(2) In addition to amounts otherwise authorized, the Relocation Agency shall make a payment to or for any displaced person from any dwelling not eligible to receive a payment under subdivision (k) of this section which dwelling was actually and lawfully occupied by such displaced person for not less than 90 days prior to the acquisition of such dwelling. Tenant or other occupant of the property shall be notified of the actual date of title vesting in the City.
(3) Payment under subdivision (n) shall be either:
(i) The amount necessary to enable such displaced person to lease or rent for a period not to exceed 4 years, a decent, safe, and sanitary dwelling of standards adequate to accommodate such person in areas not generally less desirable in regard to public and commercial facilities, and reasonably accessible to his place of employment, but not to exceed $4,000, or
(ii) The amount necessary to enable such person to make a down payment and including incidental expenses described in subdivision (m)(3) of this section (incidental expense), on the purchase of a decent, safe, and sanitary dwelling of standards adequate to accommodate such person in areas not generally less desirable in regard to public and commercial facilities, but not exceeding $4,000 except that, if such amounts exceed $2,000 such person must equally match any such amount in excess of $2,000 in making the down payment.
(A) The displaced person is required to apply all of the portion of the total down payment which was not needed to meet the cost of incidental expenses, toward the purchase of the dwelling.
(B) The down payment for the replacement housing shall be limited to that amount which would normally be required for a conventional loan, unless otherwise approved by the head of the Relocation Agency, or his designee.
(4) An owner-occupant otherwise eligible for payment of a Homeowners Replacement Housing Payment but who rents instead of purchases a replacement dwelling is eligible for replacement housing payment for tenants.
(5) The additional payment of Replacement Housing Payment for Tenants and Certain Others shall be made only to such displaced person who moves into a unit which is decent, safe and sanitary, and a standard dwelling, not later than six months from the date he moves from the site dwelling or six months from the effective date of these regulations, whichever is later.
(6) If individuals, not a family, are joint occupants of a single family unit acquired for a project, each eligible claimant shall be paid a prorated share of the total payment applicable to single individual. The total payment made to all such claimants shall not exceed the total applicable to a single individual.
(1) Displaced tenants who rent shall have the right to elect to use either a Schedule Method or a Comparative Method to determine the payment due them.
(2) Schedule: The Schedule of Average Rents in the City of New York is as follows:
| No. of Bedrooms | Average Contract Monthly Rental | Average Utilities | Average Gross Monthly Rentals | Average Gross Annual Rentals | |
|---|---|---|---|---|---|
| Gas | Elec | ||||
| 0 | 214 | 5 | 17 | $236 | $2,832 |
| 1 | 240 | 5 | 21 | $266 | $3,192 |
| 2 | 283 | 7 | 25 | $315 | $3,780 |
| 3 | 328 | 8 | 28 | $364 | $4,368 |
| 4 | 372 | 9 | 31 | $412 | $4,944 |
| 5 or more | 372 | 9 | 31 | $412 | $4,944 |
~
Replacement housing payment under the schedule method is computed by determining the amount necessary to rent a suitable replacement dwelling unit for 4 years (the average monthly cost from the schedule) or the new actual rent paid, whichever is lower, and subtracting from such amount 48 times the average month’s rent paid by the displaced tenant in the last 3 months prior to condemnation if such rent is reasonable, or if not reasonable, 48 times the monthly economic rent for the dwelling unit as established by the Relocation Agency. For purpose of these regulations, economic rent is defined as the amount of rent the displaced tenant would have had to pay for a similar dwelling unit in areas not generally less desirable than the dwelling unit to be acquired.
(3) Comparative method. The cost of a comparable unit may be determined on a case-by-case basis by using the average month’s rent for one or more dwellings determined to be the most representative of the acquired dwelling conforming to the definition of “comparable replacement housing.” The comparable dwellings may be selected by the Relocation Agency, or by the displaced person with the approval of the Relocation Agency. The payment is to be computed by determining the amount necessary to rent for 4 years a suitable replacement dwelling or the new actual rent paid, whichever is lower, and substracting from the amount so determined the lesser of 48 times the average month’s rent paid by the displaced tenant in the last 3 months prior to initiation of condemnation, or if not reasonable, 48 times the monthly economic rent for the dwelling unit established by the Relocation Agency.
(4) Exceptions.
(i) The head of the Department of Housing Preservation and Development may establish the average month’s rent by using more than 3 months, if he deems it advisable.
(ii) Notwithstanding any of the provisions herein, payments for persons displaced on or after the effective date of this regulation shall not exceed 48 times the difference between the base monthly rental and the lesser of (A) the comparable monthly rental (whether Comparative or Schedule) for a replacement dwelling or (B) the actual monthly rental for the replacement dwelling into which the displaced person is relocated. The $4,000 limitation shall as apply.
(5) Disbursement of rental replacement housing payment. All rental replacement housing payments in excess of $500 will be made in 4 equal installments on an annual basis. Before making each installment payment, the Relocation Agency must verify that the tenant is in decent, safe and sanitary housing.
(1) The down payment shall be the amount necessary to make a down payment on a suitable replacement dwelling. Determination on the amount “necessary” for such down payment shall be based on down payment that would be required for a conventional loan.
(2) Incidental expenses of closing the transaction are those as described in subdivision (m)(3) of this section.
(3) The full amount of the down payment must be applied to the purchase price and such down payment and incidental costs shown on the closing statement.
(1) A displaced owner-occupant not eligible under subdivision (k) of this section, replacement housing payment for homeowner, because he elects not to purchase a replacement dwelling, but wishes to rent, may receive a rental replacement housing payment not to exceed $4,000. The payment shall be computed in the same manner as indicated in subdivision (o) of this section except that the present rental rate for the original dwelling shall be the economic rent as determined by market data.
(2) A displaced owner-occupant who does not qualify for a replacement housing payment under subdivision (k) herein, because of the 180 day occupancy requirement and elects to rent, is eligible for rental replacement housing not to exceed $4,000. The payment will be computed in the same manner as indicated herein, except that the present rental rate for the original dwelling shall be the economic rent as determined by market data.
(3) A displaced owner-occupant who does not qualify for a replacement housing payment under subdivision (k) herein because of the 180 day occupancy requirement and elects to purchase a replacement dwelling, is eligible for a replacement housing downpayment and closing cost not to exceed $4,000. The payment will be computed in the same manner as shown herein.
| No. of Rooms | Tenant Found Apts. | Public Housing and Finders Fee Apts. |
|---|---|---|
| 1 to 3 | $300 | $150 |
| 4 | $400 | $200 |
| 5 | $500 | $250 |
| 6 | $600 | $300 |
| 7 | $700 | $350 |
| 8 or more | $800 | $400 |
~
The above bonus or relocation allowance payments are subject to the following limitations and criteria:
(1) Payments are calculated on the basis of the number of rooms required by the tenant based on family composition, and into which the tenant moves.
(2) Two or more families occupying one apartment and being relocated shall each be entitled to the benefits contained herein upon their permanently relocating off-site to separate standard accommodations.
(3) Payments under subdivision (r) herein are not payable and available to displaced persons unless the person moves after title to the property occupied vests in the City of New York.
(4) The actual amount of the bonus or relocation allowance payment provided in this subdivision (r) to be paid to displaced persons shall be reduced by any amounts paid or credited to that displaced person for a Dislocation Allowance (subdivision (j), a Replacement Housing Payment for Homeowners of this section, and/or a Replacement Housing Payment for Tenants and Certain Others (subdivision (n) of this section).
(5) Bonus payment is limited to $100 where the tenant is institutionalized.
(6) For the purpose of this section, Public Housing is defined as all housing is provided in the “Definitions” herein and to all types of equivalent housing including, Rent Supplement and Capital Grant Assistance.
| No. of Rooms | Payment |
|---|---|
| 1 to 3 | $150 |
| 4 | $300 |
| 5 | $400 |
| 6 | $500 |
| 7 | $600 |
| 8 or more | $700 |
~
Finders fee for furnished room in a rooming house – $50 per room.
(1) General. The Department of Housing Preservation and Development as soon as practical after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire real property, whichever is earlier, shall reimburse the owner to the extent the head of the Relocation Agency deems fair and reasonable for expenses such owner necessarily incurred, if not paid through some other source for:
(i) Recording fees, transfer taxes, and similar expenses incidental to conveying such real property to the City of New York; and
(ii) Penalty costs for prepayment of any preexisting recorded mortgage entered into in good faith encumbering such real property; and
(iii) The pro rata portion of real property taxes paid which are allocable to a period subsequent to the date of vesting of title in the City of New York, or the effective date of possession of such real property by the City of New York, whichever is earlier.
(2) Documentation in support of a claim. If real property is acquired by condemnation, a claim for payment under paragraph 1 of this subdivision shall be submitted to the Relocation Agency and supported by such documentation as may be required by the head of the Relocation Agency. If the real property is acquired by purchase, payment shall be made at settlement of the acquisition and accounted for in the settlement statement, on the basis of such documentation as may be required by the Relocation Agency.
(3) Time for filing settlement cost claims. Each such claim shall be submitted to the relocation agency within a period of 6 months after either the acquisition of the property or the effective date of these rules and regulations, whichever is later.
(1) The head of the Relocation Agency shall provide relocation assistance for displaced persons and shall offer services which should include:
(i) Determine the need, if any, of displaced persons for relocation assistance.
(ii) Provide current and continuing information on the availability, prices and rentals of comparable decent, safe and sanitary sales and rental housing, and of comparable commercial properties and locations for displaced businesses.
(iii) Assist a person displaced from his business in obtaining and becoming established in a suitable replacement location.
(iv) Supply information concerning Federal, State and City housing program disaster loan programs and other Federal, State or City programs offering assistance to displaced persons.
(v) Provide other advisory services to displaced persons in order to minimize hardships to such persons in adjusting to relocation.
(vi) The Commissioner of the Department of Housing Preservation and Development shall coordinate all relocation activities with project work, and other planned or proposed governmental actions in the community or nearby areas which may affect the carrying out of relocation assistance programs.
(2) If the Commissioner of the Department of Housing Preservation and Development determine that any person occupying property immediately adjacent to the real property acquired is caused substantial economic injury because of the acquisition, he may offer such person relocation advisory services under such program.
(3) The head of the Relocation Agency shall make every effort to pay promptly any displaced person who makes application for payments authorized by these regulations after a move, or in hardship cases, advance payments may be authorized.
§ 19-01 Applicability. [Repealed]
*§ 19-02 Evaluation Generally. [Repealed]* ::
§ 19-03 Interview. [Repealed]
*§ 19-04 Evaluation of Occupants--Procedures. [Repealed]* ::
§ 19-05 Referral to the Bureau of Vacant Apartment Repair and Rental. [Repealed]
*§ 19-06 Termination of UOP Policy. [Repealed]* ::
§ 19-07 Post Termination Provision. [Repealed]
§ 20-01 Criteria for Appointment.
(a) Any person proposed for appointment as an administrator pursuant to Article 7-A of the Real Property Actions and Proceedings Law shall, prior to appointment:
(1) be a graduate of the 7-A Training Program administered by the Department of Housing Preservation and Development and submit to a review by the Inspector General of the Department in relation to matters which are within the jurisdiction of such Inspector General, or
(2) if such person is not a graduate of such Program, possess experience which, in the discretion of the Department, warrants appointment as an administrator and such person submits to a review by the Inspector General of the Department in relation to matters which are within the jurisdiction of such Inspector General, or
(3) if such person is not a graduate of such Program and if such person does not possess experience which warrants appointment as an administrator, consents in good faith as a condition for such appointment to enroll in and graduate from such Program and such person submits to a review by the Inspector General of the Department in relation to matters which are within the jurisdiction of such Inspector General.
§ 20-02 Applicability.
These rules apply to any building for which (i) an administrator is appointed pursuant to Article 7-A of the Real Property Actions and Proceedings Law (“RPAPL”) on or after August 19, 2003, or (ii) an administrator was appointed pursuant to Article 7-A of the RPAPL prior to August 19, 2003 and has not been discharged as of August 19, 2003.
§ 20-03 Regulatory Agreement.
(a) When a building covered by these rules is transferred to a new owner at any time following appointment of such administrator, § 778(10) of the RPAPL authorizes the Department of Housing Preservation and Development ("Department") to enter into a regulatory agreement ("Regulatory Agreement") with the new owner.
§ 20-04 Miscellaneous Provisions.
(a) All determinations to be made by the Department in accordance with these rules shall be in the sole discretion of the Department.
Subchapter A: Reserved
Subchapter B: Rights of Tenants and Termination of Tenancies
§ 21-21 Definitions.
City. “City” shall mean the City of New York.
City-approved lease. “City-approved lease” shall mean a form of lease, approved by an authorized official of HPD, and containing such other approvals of City officials as are, from time-to-time, required.
City-owned building. “City-owned building” shall mean any building owned by the City and assigned to HPD for management.
DAMP. “DAMP” shall mean the Division of Alternative Management Programs.
DAMP Lessee. “DAMP Lessee” shall mean a person or entity with whom HPD has entered a lease for the management of buildings under any DAMP program.
DSS. “DSS” shall mean the Department of Social Services of the Human Resources Administration of the City.
Guest. “Guest” shall mean any person entering the building with the consent of the Tenant.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City.
Lease term. “Lease term” shall mean one month.
Occupant. “Occupant” shall mean any person other than a Tenant occupying an apartment.
Occupied building. “Occupied building” shall mean a City-owned building, occupied by Tenants.
Rules. “Rules” shall mean these rules.
Tenant. “Tenant” shall mean an authorized residential tenant of record occupying a dwelling unit in a City-owned building pursuant to a lease with the City or with a DAMP Lessee. Other residential occupants such as squatters and licensees are not Tenants. Nonresidential tenants or occupants, such as those who occupy space for retail, commercial, manufacturing, or community facility purposes, are not Tenants.
§ 21-22 General.
(a) Scope. HPD is responsible for managing, rehabilitating, and disposing of buildings owned by the City. HPD's goals include improving living conditions for Tenants in City-owned buildings and returning the City's housing stock to private tax-paying ownership, while maintaining it as affordable housing.
§ 21-23 Rights of Tenants.
(a) Tenancy. All Tenants of a building in DAMP shall be month-to-month Tenants.
(1) The Tenant, other Occupant or Guest is violating a substantial obligation of the Tenant’s tenancy.
(2) The Tenant, Occupant or Guest is committing or permitting a nuisance in such housing accommodation or the building containing such housing accommodation.
(3) Occupancy of the housing accommodation by the Tenant is illegal because of the requirements of law, or such occupancy is in violation of contracts with governmental agencies.
(4) The Tenant, Occupant or Guest is using or permitting such housing accommodation to be used for an illegal purpose.
(5) The Tenant has unreasonably refused the DAMP Lessee or HPD access to the housing accommodation for the purpose of making necessary inspections, repairs or improvements required by law or authorized or required by HPD.
(6) The Tenant has refused, after at least twenty days written notice, to move to a substantially similar housing accommodation at the same rent provided:
(i) that the DAMP Lessee has a plan approved by DAMP to reconstruct, renovate or improve the housing accommodation currently occupied by the Tenant or the building in which it is located; and
(ii) that the move is reasonably necessary to permit such reconstruction, renovation or improvement; and
(iii) that the DAMP Lessee offers the Tenant in writing the right of reoccupancy of a reconstructed, renovated, or improved housing accommodation at the same rent or at a rent set pursuant to applicable rules for the respective DAMP Program or other rent restructuring authority.
(7) The housing accommodation is not occupied by the Tenant, not including subtenants or occupants, as his or her primary residence, unless the subtenant or assignee has been approved pursuant to 28 RCNY § 21-24(i).
(8) The building is to be placed in a program of rehabilitation or reconstruction which requires the vacating of the entire building.
(9) The building is to be sealed or demolished.
(10) The Tenant has refused to reoccupy a housing accommodation that has been renovated, reconstructed or improved, and continues to occupy a housing accommodation which was offered for the purposes of relocation pursuant to paragraph (6) above.
(11) For any other reason permitted by law.
§ 21-24 Conditions of Residential Tenancy.
(a) Conditions of Residential Tenancy. All Tenants of a building in DAMP shall be subject to the terms of the Conditions of Tenancy contained in these Rules and contained in any City-approved leases they have been issued. Where a City-approved lease has been issued, the terms of such lease shall govern, to the extent that they differ from these Rules. Where no City-approved lease has been issued, the terms of this section shall govern.
(1) The DAMP Lessee shall lease an apartment to a Tenant for the lease term. The Tenant shall pay the rent for each month in advance on the first day of that month during the term of such rental at the DAMP Lessee’s office or at such other place or address as the DAMP Lessee shall designate.
(2) HPD shall have the right to implement rent restructuring plans pursuant to the applicable rules for the respective DAMP Program. If the Tenant refuses to pay the increased rent, the DAMP Lessee shall have the right to terminate the tenancy.
(1) The DAMP Lessee and its agents may (but shall not be obligated to) enter the Tenant’s apartment at any time in case of an emergency, and at any reasonable hour to: repair, inspect, exterminate, improve or perform other work, including rehabilitation to the apartment or building determined to be necessary by the DAMP Lessee. The DAMP Lessee may take into the Tenant’s apartment all materials and equipment required for such purposes.
(2) The Tenant shall furnish unhindered access to the DAMP Lessee and its agents to all areas of the Tenant’s apartment and building for the purpose of making tests or repairs. If there should be any loss of usable space, the Tenant may request, in writing, a proportionate rent reduction for such loss, provided, however, that such reduction shall only be for the period until the area involved has been restored to the Tenant.
§ 22-01 Definitions.
Building. “Building” shall mean any residential building (including the land in the tax lot) which is owned by the City, managed by HPD and which, prior to entering City ownership, was either developed or rehabilitated through a City loan program.
City. “City” shall mean the City of New York.
Commissioner. “Commissioner” shall mean the Commissioner of HPD or his or her designee.
Disposition. “Disposition” shall mean the sale of a Building to a Permanent Owner.
Disposition Rent. “Disposition Rent” shall mean the rent established by HPD for a Building prior to its return to private ownership.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City of New York.
Laws. “Laws” shall mean any and all applicable laws, ordinances, orders, rules and/or regulations.
Permanent Owner. “Permanent Owner” shall mean the person or entity which shall own a Building after Disposition.
Rules. “Rules” shall mean this subchapter.
Tenants. “Tenants” shall mean authorized residential tenants of record. Occupants such as squatters and licensees are not Tenants.
§ 22-02 General.
(a) Coverage. These Rules govern the procedures for restructuring rents in Buildings, providing notices to Tenants and the Disposition of Buildings to Permanent Owners.
§ 22-03 Selection of Permanent Owners.
HPD may select a Permanent Owner for a Building by any appropriate method, including, but not a limited to sealed bid sale or auction, a request for qualifications process, a request for proposals process, a request for offers or, in the discretion of HPD, by a direct designation of an entity judged by HPD to be a suitable Permanent Owner. HPD, in selecting a Permanent Owner, may consider any relevant factors, including, but not limited to, the prospective Permanent Owner’s prior record in other City housing programs as a property owner or manager or the Permanent Owner’s status as an organization formed by the Tenants in the Building.
§ 22-04 Rent Setting.
(a) Establishment of disposition rent. HPD may establish a Disposition Rent for each dwelling unit in a Building based upon the estimated cost of (i) operating the Building in private ownership, and (ii) the repayment of City investment in the Building, including, but not limited to, any City investments during City ownership and any City loan prior to City ownership. The Disposition Rent per dwelling unit shall reflect the expenses for the Building for the first year following disposition. Such expenses may include, but shall not be limited to: allowances for vacancies, debt service coverage, debt service, fuel, common space utilities, repair and maintenance, cleaning supplies, insurance, custodial services, management fees, professional services, operating reserve, capital replacement reserve, real estate taxes, return on equity, anticipated capital repairs and water and sewer charges. The expenses shall be projected by HPD based on its experience and knowledge of the operation of similar buildings.
§ 22-05 Disposition to Permanent Owner.
(a) Notice of disposition. HPD shall send a notice of Disposition to Tenants of a Building advising them of the contemplated sale to the Permanent Owner at least thirty (30) days prior to Disposition. The notice shall provide the Tenants with the name, address, telephone number and contact person for the Permanent Owner.
§ 22-06 Miscellaneous Provisions.
(a) HPD discretion. All determinations to be made by HPD in accordance with these Rules shall be in the sole discretion of HPD.
§ 24-01 Definitions.
City owned building. City owned building. “City owned building” shall mean any building owned by the City of New York and assigned to HPD for management, including a building participating in the Tenant Interim Lease Program.
DHHD. [Repealed.]
Disabled Person. “Disabled person” shall mean a person who has an impairment which results from anatomical, physiological or psychological conditions, other than addiction to alcohol, gambling, or any controlled substance, which are demonstrable by medically acceptable clinical and laboratory diagnostic techinques, and which are expected to be permanent and which substantially limit one or more of such person’s life activities.
DPM. [Repealed.]
Family Member. “Family member” shall mean:
(A) longevity of the relationship;
(B) sharing of or relying upon each other for payment of household or family expenses, and/or other common necessities of life;
(C) intermingling of finances as evidenced by, among other things, joint ownership of bank accounts, personal and real property, credit cards, loan obligations, sharing a household budget for purposes of receiving government benefits, etc.;
(D) engaging in family-type activities by jointly attending family functions, holidays and celebrations, social and recreational activities, ect.;
(E) formalizing of legal obligations, intentions, and responsibilities to each other by such means as executing wills naming each other as executor and/or beneficiary, granting each other a power of attorney and/or conferring upon each other authority to make health care decisions each for the other, entering into a personal relationship contract, making a domestic partnership declaration, or serving as a representative payee for purposes of public benefits, ect.;
(F) holding themselves out as family members to other family members, friends, members of the community or religious institutions, or society in general, through their words or actions;
(G) regularly performing family functions, such as caring for each other or each other’s extended family members, and/or relying upon each other for daily family services;
(H) engaging in other patterns of behavior or other action which evidences the intention of creating a long-term, emotionally-committed relationship.
HPD. “HPD” shall mean the New York City Department of Housing Preservation and Development or any successor agency.
Occupant. “Occupant” shall mean a person occupying an apartment, other than a tenant.
Occupied building. “Occupied building” shall mean a City owned building, occupied by tenants.
Senior Citizen. “Senior Citizen” shall mean a person who is sixty-two years of age or older.
Tenant. “Tenant” shall mean an HPD authorized residential tenant of record. Occupants such as squatters and licensees are not tenants of record.
Unacceptable activity. “Unacceptable activity” shall include, but not be limited to, drug trafficking, prostitution, unlawful possession of a firearm, organized gambling, attacking or threatening other residents of a building or employees, contractors or agents of HPD, damaging or defacing any portion of a building, generating excessive traffic of people or materials in and out of a building, generating loud noise which is disturbing to other residents or engaging in any activity which constitutes a nuisance, or creates a hazard to other tenants of the building.
§ 24-02 Statement of Purpose.
These regulations are intended to set forth the standards that will be used by HPD to determine who will be eligible to apply to succeed to the tenancy of a tenant when an apartment is permanently vacated by that tenant.
§ 24-03 Coverage.
These rules apply to residential apartments in City owned buildings under the jurisdiction of HPD.
§ 24-04 Eligible Persons.
Unless otherwise prohibited by occupancy restrictions based upon income limitations pursuant to federal, state or local law, regulations or other requirements of governmental agencies, if a tenant has permanently vacated an apartment, any family member, who has resided with the tenant in the apartment as a primary residence for a period of no less than two (2) years, or where such family member is a “senior citizen”, or a “disabled person”, for a period of no less than one (1) year, immediately prior to the permanent vacating of the apartment by the tenant, or from the inception of the tenancy or commencement of the relationship, if for less than such periods, may apply to HPD to become the legal tenant of such apartment.
§ 24-05 Ineligible Persons.
Persons otherwise eligible to apply for tenancy under 28 RCNY § 24-04 above shall not be offered tenancy if:
§ 24-06 Calculation of Minimum Period of Residency.
The minimum periods of required residency set forth in this subdivision shall not be deemed to be interrupted by any period during which the “family member” temporarily relocates because he or she:
§ 24-07 Application for Successor Tenancy.
(a) An occupant seeking to become a tenant must show that he or she is eligible to apply for tenancy pursuant to 28 RCNY § 24-04. Such application must be made on a form prescribed by HPD within 30 days after the permanent vacating of the apartment by the permanent tenant.
1. Proof of family relationship to tenant of record, such as (i) marriage certificate, (ii) domestic partnership certificate; or (iii) other proof of emotional and financial commitment, and interdependence as described in paragraph (2) of the definition of “family member” in 28 RCNY § 24-01, and an affidavit swearing to family relationship;
2. If occupant/applicant is claiming co-occupancy, proof of continual, permanent residence during such time period, including one or more of the following: (i) tax returns, (ii) employment records, (iii) government agency documents verifying home address; (iv) Board of Elections records; (v) driver’s license issued by the Department of Motor Vehicles, identification card or automobile registration; (vi) insurance policies that indicate a home address; (vii) utility bills; (viii) credit card or banking statements; (ix) medical bills and statements; (x) school records; (xi) military service records; (xii) marriage and/or birth certificates; or (xiii) other government-issued photo identification card such as a New York city identification card;
3. If occupant/applicant is claiming co-occupancy for one year and senior citizen status, a birth certificate or other proof of age, in addition to the documents required in paragraph 2 of this section;
4. If occupant/applicant is claiming co-occupancy for one year and a disability, proof of disability from a government agency or medical documentation completed by a medical professional, in addition to the documents required in paragraph 2 of this section;
5. If occupant/applicant has been temporarily relocated, a copy of the relocation agreement;
6. If occupant/applicant has been temporarily relocated, proof of prior address;
7. If the apartment is a relocation apartment, documents proving acceptable temporary relocation during the required residency period pursuant to 28 RCNY § 24-06;
8. Documents proving the non-residency of the tenant of record, which may include: (i) death certificate; (ii) divorce or separation agreement and proof of residency at new address for tenant of record (e.g., utility bills); (iii) proof of residency at new address for tenant of record who has voluntarily vacated; (iv) letter certifying permanent occupancy of tenant of record in institutional facility; or (v) other relevant documentation of circumstances leading to non-residency of tenant of record; and
9. Any other documentation required or requested by HPD for the purpose of determining eligibility of the applicant for successor tenancy.
§ 24-08 Application.
HPD shall review the application of an occupant who seeks to become a successor tenant and shall advise the applicant of the acceptance or rejection of such application. If the application is rejected for failure to show that the occupant is an eligible person, HPD shall give a brief description of the reason for such rejection. If the occupant’s application is rejected for unacceptable activity, the rejection shall so state.
§ 24-09 Appeal.
If an application is rejected, the applicant may appeal such determination within 14 days to the Assistant Commissioner of the Division having jurisdiction of the applicant’s building. Such appeal shall be in writing. The Assistant Commissioner shall review the determination and any additional information submitted by the applicant and shall issue the final agency decision with regard to the applicant’s application.
Subchapter A: Installation and Maintenance of Gas-fueled Water and Space Heaters In All Portions of Dwellings Used or Occupied For Living Purposes
§ 25-01 Scope.
These rules shall govern the installation and maintenance of gas-fueled space and water heaters in the residence portions of multiple dwellings in the City of New York, including but not limited to the installation of such devices in multiple dwellings which are installed in lieu of centrally supplied heat and hot water under the provisions of sections 27-2028, 27-2031, 27-2032, and 27-2034 of the Administrative Code, and in one and two family residences not heated by a central heating system.
§ 25-06 Applications and Plans.
(a) Before commencing the installation of a gas-fueled space or water heater in a dwelling a plumbing repair slip or building notice, as specified below must be filed in the borough office of the Department of Buildings where the installation is to be made, giving the address of the dwelling and all pertinent information required on the forms.
§ 25-07 Examination and Approval of Applications.
(a) Plumbing repair slips, when filed, shall be processed in the usual manner and forwarded to the inspectors of plumbing.
§ 25-08 Commencement of Work.
(a) It shall be unlawful to commence any construction for which a building notice has been filed until a permit for the proposed work has been issued by the borough superintendent, and it shall be unlawful to commence the installation of piping of any gas appliance until a registered plumber has filed a signed statement with the borough superintendent containing the address of said plumber and stating the he is duly authorized to proceed with the work.
§ 25-09 Inspection of Gas-Fueled Space and Water Heaters.
(a) Where a plumbing repair slip has been filed it shall be the responsibility of the inspectors of plumbing to see that gas-fueled space and water heaters are installed in dwellings, apartments and rooms where such heaters are permitted to be installed in lieu of central heat or supply of hot water. They shall see to it that the appliances are of types approved by the Department of Health and the American Gas Association, and are installed in compliance with these rules. Inspectors shall require the filing of a building notice where an appliance is to be placed in sleeping room where vent pipes are to be installed, or other work done.
§ 25-10 Issuing Approvals.
(a) A gas-fueled space or water heater installed after December 18, 1957, and a gas-fueled space heater installed prior to that date, in the residence portion of a multiple dwelling and installed after October 1, 1964, in one and two family dwellings, shall be approved by the Department of Buildings only if it is of a type approved by the Department of Health and the American Gas Association, and if it has been installed in compliance with these rules. A gas-fueled water heater installed in a multiple dwelling prior to December 18, 1957, and in a one or two family dwelling prior to October 1, 1964 shall be approved by this department only after it has been made to comply with all the requirements of these rules. The certification of approval of type of appliance by the Department of Health of such water heaters shall be attached to the plumbing repair slip or building notice.
§ 25-16 Substitution for Central Heating or Hot Water Supply.
Gas-fueled space or water heaters may be used in lieu of centrally supplied heat or hot water only in an apartment in a dwelling which complies with all the following requirements:
§ 25-21 Required Approvals of Appliances.
Gas-fueled space and water heaters, installed after December 18, 1957, in apartments in multiple dwellings, in lieu of centrally supplied heat or hot water where such centrally supplied heat or hot water supply is required by the Multiple Dwelling Code, and in one and two family dwellings installed after October 1, 1964 shall be types approved by the Department of Health and the American Gas Association.
§ 25-22 Prohibited Types of Water Heaters.
On and after December 18, 1957, it shall be unlawful to install in any apartment in any multiple dwelling, and after October 1, 1964 in a one or two family dwelling a gas-fueled water heater, so designed and arranged that it heats water in pipe coils placed at a distance from the hot water storage tank.
§ 25-23 Number and Capacity of Gas-Fueled Heaters.
(a) Where gas fueled heaters are permitted to be installed in lieu of the required centrally supplied heat, each "living room", as such term is defined in subdivision 18 of § 4 of the Multiple Dwelling Law, shall be heated by a heater placed in such room or in an adjoining room which connects with it except that a room whose exterior walls are exposed only on a fully enclosed inner court may be heated by a heater located one room removed from such room. For this purpose, an inner court shall be considered fully enclosed even though some of the enclosure walls are located on an adjoining lot. The aggregate input capacity of the heater or heaters installed in any apartment shall not be less than the number of living room times ten thousand (10,000) British thermal units per hour.
§ 25-24 Capacity of Water Heaters.
Gas-fueled water heaters shall be automatic storage types having a capacity of not less than twenty gallons and shall, in any event, be adequate to provide a supply of hot water as defined in § 27-2031 and § 27-2034 of the Housing Maintenance Code, and 24 RCNY Health Code § 131.042.
§ 25-25 Shut-Off Devices.
Each gas-fueled space or water heater installed in an apartment in a dwelling shall be equipped with an effective device which will automatically shut off the gas supply to such heater in the event that its pilot light or other constantly burning flame is extinguished, or in the event of an interruption of the gas supply to such heater. Such automatic gas shut-off device shall be of a type which, after it has shut off the supply of gas to a heater, will not permit such heater to be relighted unless such shut-off device is first reset manually.
§ 25-26 Gas Piping.
(a) The sizes of gas piping shall be such as to give an adequate volumetric flow of gas to all appliances. The minimum diameter of gas piping shall be three-quarters of an inch (3/4") except that a branch supplying only one appliance may be one-half inch (1/2") diameter.
§ 25-27 Appliances in Sleeping Rooms.
(a) Gas-fueled water heaters shall not be installed in a room occupied for sleeping purposes, in bathrooms, or in any occupied room normally kept closed.
(1) Obtains combustion air directly from the outside of the building or through a duct leading to the outside.
(2) It vents directly to space outside of the building other than an inner court, or is connected through a flue or outlet pipe with an outside chimney which conforms with the requirements of sub-article three of article twelve of the Building Code. A flue in an existing brick chimney may be used if it is in good condition and tests show that it will provide adequate draft.
§ 25-28 Clearances from Combustible Materials.
(a) Space heaters and water heaters approved by the American Gas Association Laboratories, shall have clearance from combustible materials in accordance with the terms of their approval.
§ 25-29 Venting of Gas Appliances.
(a) Definitions. A flue, vent or outlet pipe is a conduit or passageway, vertical or nearly so, for conveying flue gases to the outer air. A vent connector is a pipe connecting an appliance with the flue, vent, outlet pipe or chimney.
§ 25-30 Gas-Fueled Space Heaters Installed Prior to December 18, 1957.
(a) Gas-fueled space heaters installed prior to December 18, 1957, if of a type not approved by the Department of Health and the American Gas Association, shall be replaced by centrally supplied heat or by gas heaters approved by the said authorities on or before November 1, 1958, in any tenement and converted dwelling which contains ten or more apartments, and on or before November 1, 1959, in other tenements and converted dwellings.
§ 25-31 Gas-Fueled Water Heaters Installed Prior to December 18, 1957.
(a) On or before November 1, 1958, in any tenement and converted dwelling which contains ten or more apartments, and on or before November 1, 1959, in other tenements and converted dwellings, any gas-fueled water heater installed prior to December 18, 1957, if of a type not approved by the Department of Health, shall be replaced by a supply of hot water or by a water heater approved by said department.
§ 25-32 Maintenance of Space and Water Heaters.
(a) The owner of the tenement or converted dwelling and of the one and two family dwelling in which gas-fueled space and water heaters have been installed by him shall maintain each such appliance in a condition of good repair and in good operating condition.
§ 25-33 Existing Appliances in Ineligible Locations.
Where a gas-fueled space heater or water heater has heretofore been installed in a dwelling not complying with all the requirements of 28 RCNY § 25-16, nothing in these rules shall be construed to relieve the owner of his responsibility to provide for such dwelling centrally supplied heat and a supply of hot water.
§ 25-34 Instruction to Tenants.
The owner or the authorized agent of the owner shall instruct the tenant of each apartment wherein a space or water heater is located as to the proper method of using and operating such appliance.
§ 25-35 Variations.
Where there is a practical difficulty in carrying out the strict letter of the provisions of these rules, the borough superintendent may vary such provisions for a specific installation, provided the necessary safety is secured and the variance is not in conflict with the Administrative Code.
Subchapter B: [Reserved]
Subchapter C: Conduct and Maintenance of Lodging Houses
§ 25-51 Conduct and Maintenance of Lodging Houses.
(a) Lodging house, defined. As used in these rules, the term lodging house shall mean any house or building or portion thereof, in which persons are harbored, or received, or lodged, for hire for a single night, or for less than a week at one time, or any party of which is let for any person to sleep in, for any term less than a week. The term lodging house shall not be deemed to include a Class A multiple dwelling used or let for single room occupancy.
(1) Information to be given in application. Each application for a permit shall file with the Department of Housing Preservation and Development in duplicate, a written application, dated, signed by himself, and correctly setting forth:
(i) The full name and address of the proprietor of the lodging house and of the owner of the premises.
(ii) The location of the lodging house.
(iii) The portions of the building intended to be used as a lodging house.
(2) Certificate from the Fire Department. The applicant shall procure from the Fire Department of the City of New York a certificate to the effect that the premises for which a permit is desired complies with all laws, rules and regulations enforceable by the Fire Department.
(1) Every permittee shall conduct, maintain and operate such lodging house in accordance with the terms of his permit and the rules and regulations of the Department of Housing Preservation and Development.
(2) Permit to be displayed. The permit of the Department of Housing Preservation and Development issued for such lodging house shall be continuously and conspicuously displayed in the office or hall of such lodging house.
(3) Numbers of lodgers permitted.
(i) No keeper of a lodging house shall receive lodgers therein without displaying continuously and conspicuously in each room a card issued for such room by the Department of Housing Preservation and Development setting forth the maximum number of lodgers permitted to be accommodated in such room, and also a copy of these rules and regulations.
(ii) No keeper of a lodging house shall accommodate in any sleeping room thereof a number of lodgers greater than the number set forth on the card issued for such room by the Department of Housing Preservation and Development; nor shall he accommodate any lodgers in any room in which a card, duly issued therefor, is not displayed as above described.
(4) Ventilation.
(i) In every lodging house each room shall be adequately ventilated as required by law and to the satisfaction of the Department of Housing Preservation and Development.
(ii) In every sleeping room there shall be provided not less than 400 cubic feet of air space per bed.
(iii) Neither side of any bed shall at any time be nearer than two feet to the side of any other bed.
(iv) All beds shall be so arranged that the air shall circulate freely under each of them.
(v) In the ease of all lodging houses for which permits are for the first time applied for after the year 1919, no beds or bunks shall be placed one above another.
(5) Airing, etc.
(i) Except when extreme severity of the weather prevents, all windows of sleeping rooms, waterclosets, washrooms and bathrooms shall be kept open not less than one foot at the bottom and one foot at the top at least four hours daily.
(ii) Beds occupied at night shall be vacated by 10 A.M. or 12 M., and the bedding thereof shall be turned over and exposed to the air from 10 A.M. to 2 P.M. or from 12 M. to 4 P.M. daily, as prescribed by the permits issued for each lodging house.
(iii) For the accommodations of lodgers working by night, special beds or rooms shall be set apart for their use during the day, but the bedding of such beds must be turned over and exposed to the air in a room with outside windows, open as above prescribed, for at least four consecutive hours daily.
(iv) Only servants at work or lodgers accommodated as per-subparagraph (iii) of this subdivision, shall be allowed in sleeping rooms during the four-hour period for airing, as specified in the permit issued for such lodging house, in any lodging house in which accommodations are provided for male lodgers, no female servants shall be employed; likewise, where accommodations are provided for female lodgers, no male servants shall be employed.
(6) Beds and bedding.
(i) In every lodging house there shall be provided for each lodger a separate bed with bedspread, bedding and bedclothes satisfactory to the Department of Housing Preservation and Development.
(ii) All portions of the building, including all furniture, bed clothing, matresses and pillows shall always be kept clean and free from vermin.
(iii) Sheets and pillow cases shall be kept in a condition clean and satisfactory to the Department of Housing Preservation and Development.
(iv) In the case of all lodging houses for which permits are for the first time applied for after the year 1910, the frames of all beds shall be of metal.
(7) Waterclosets.
(i) In every lodging house there shall be provided waterclosets in the ratio of at least one watercloset to every fifteen beds or fraction thereof.
(ii) In every lodging house for which a permit shall be first applied for after February 1st, 1911, there shall be provided at least one watercloset on each floor, and watercloset shall be provided on every floor in the ratio of at least one to every fifteen beds or fraction thereof on such floors.
(iii) Every watercloset shall be properly ventilated by an unobstructed opening to the outer air.
(iv) No gas or offensive odors shall be allowed to escape from any water closet, sewer or outlet into any sleeping room or part thereof. Each watercloset shall be provided with a self-closing door, which shall be cut away at the bottom so as to provide adequate ventilation.
(v) In no lodging house shall any person be allowed to sleep in a room in which there is a watercloset.
(vi) In every lodging house for which a permit shall be first applied for after February 1st, 1911, there shall be provided at least one washroom on each floor.
(vii) In every lodging house there shall be provided washrooms with running water, set wash basins or other individual washing appliances satisfactory in character to the Department of Housing Preservation and Development. Such individual appliances shall be provided in proportion to the number of beds in the lodging house as follows: One such appliance for every ten beds or fraction thereof.
(8) Baths.
(i) In every lodging house shower baths shall be provided in the ration of at least one shower bath to every fifty beds or fraction thereof, or tub baths shall be provided in the ration of at least one tub bath to every twenty-five beds or fraction thereof.
(ii) All such baths shall be provided with hot and cold running water, and shall be at all times accessible for the use of lodgers free of charge.
(9) Water and towels. An adequate supply of water and clean individual towels shall be provided. The use of common towel is prohibited.
(10) Floors and walls of waterclosets, etc. In every lodging house the floors of all waterclosets, washrooms and bathrooms, and the walls thereof to a height of at least four feet above the floor shall be constructed of such durable, waterproof material as may be approved by the Department of Housing Preservation and Development.
(11) Cleanliness and repair.
(i) Every lodging house and every part thereof shall be at all times kept clean and free from dirt, filth garbage and rubbish in or on the premises belonging to or connected with the same.
(ii) All waterclosets, washbasins, baths, windows, fixtures, fitting and painted surfaces shall be at all times kept thoroughly clean and in good repair.
(iii) The floors, walls and ceilings of all rooms, passages, and stairways must be at all times kept clean and in good repair.
(iv) If painted with oil, all walls and ceilings shall be thoroughly washed with soap and water at least twice yearly, and at such other times as the Department of Housing Preservation and Development may direct.
(12) Spitting and cuspidors.
(i) In each hall, room, cubicle, watercloset, washroom and bathroom of every lodging house there shall be provided a sufficient number of cuspidors or spittoons.
(ii) In every such room, etc., there shall be continuously and conspicuously a sing: “SPITTING FORBIDDEN EXCEPT IN PROPER RECEPTACLES.”
(iii) All such cuspidors or spittoons shall be of durable waterproof material and shall be thoroughly cleaned at least once daily, and shall be at all times maintained in a condition satisfactory to the Department of Housing Preservation and Development.
(13) Method of sweeping regulated. Sweeping of any portions of such lodging houses shall be so performed as to avoid the raising of dust in the process. Dry sweeping prohibited.
(14) Illness. It shall be the duty of the keeper, agent, or owner of every lodging house to immediately report to the Department of Health the occurence of any illness in such house.
(15) No Women or Children lodged. In no lodging house in which men are lodged shall any women or girl be lodged or any boy under the age of sixteen years, unless accompanied by his father or legal male guardian.
Subchapter D: Signs At Incinerator Service Openings
§ 25-61 Signs at Incinerator Service Openings.
(a) Signs on doors leading to the service openings shall be not less than eight inches wide and not less than 3 inches high, and shall have letters not less than one-quarter inch in height.
Subchapter E: Signs Showing the Maximum Lawful Occupancy For Sleeping Purposes of Apartments, Suites of Rooms and Single-room Units Constituting ‘accommodations For Transients’
§ 25-71 Signs Showing the Maximum Lawful Occupancy for Sleeping Purposes of Apartments, Suites of Rooms and Single-Room Units Constituting “Accommodations For Transients.”
(a) (1) Except as otherwise provided in paragraph (5) of this subdivision (a), the owner of every multiple dwelling containing any accommodations for transients (see definition of accommodations for transients' in subd(b) hereof), except structures containing not less than 200 rooms and classified by the department as hotels (whether a class A or class B multiple dwelling), shall install and maintain signs therein in accordance with the applicable requirements set forth in paragraph two, three, four and five of this subdivision.
(2) There shall be displayed in each apartment, suite of rooms and single-room unit constituting such accommodations for transients, a sign which shall show both the currently applicable total maximum lawful occupancy, for sleeping purposes, of such apartment, suite or unit, and the currently applicable maximum lawful occupancy, for sleeping purposes, of each living room constituting a part of each such apartment or suite.
(3) In addition, in each room in any such apartment or suite, there shall be displayed a sign showing the maximum lawful occupancy, for sleeping purposes, of such room.
(4) Such signs shall be displayed in each such apartment, suite of rooms, single-room unit and living room, in conformity with the applicable requirement of paragraphs two, three and four of this subdivision.
(5) Such signs need not be displayed in any apartment, suite of rooms, single-room unit or dormitory in a hotel (whether a class A or class B multiple dwelling), which apartment, suite, unit or dormitory consists of a room or rooms used for class B occupancy (see definitions of `room used for class B occupancy’) lawfully, during any time while such apartment, suite, unit or dormitory is occupied for sleeping purposes by any person or persons, none of whom has occupied same for such purposes for a continuous period exceeding eighty-five days.
(1) Any apartment, suite of rooms or single-room unit, consisting in whole or in part of any room or rooms used for class B occupancy, or any portion of any such apartment or suite, or
(2) any dormitory, or
(3) any apartment or portion thereof used for single room occupancy.
Department of Housing Preservation and Development City of New York Premises: ________________________________________ (address of building) Room No. ________________________________________ on ________________________________________ story. Not more than ONE (1) ADULT permitted to sleep in this room. § 27-2075, Administrative Code.
The following information shall appear on signs required in rooms in which not more than two (2) adults are permitted to sleep:
Department of Housing Preservation and Development City of New York Premises: ________________________________________ (address of building) Room No. ________________________________________ on ________________________________________ story. Not more than TWO (2) ADULTS permitted to sleep in this room. § 27-2075 of the Administrative Code. In both of the above instances the address of the premises and the location of the room must be shown, in addition to the number of persons permitted to sleep in such room.
Department of Housing Preservation and Development City of New York Premises: ________________________________________ (address of building) Apartment
(or suite) No. ______________ on ______________ story. Not more than a TOTAL OF ______________ ADULTS permitted to sleep in this apartment (or suite). § 27-2075, Administrative Code.
The permitted lawful occupancy for sleeping purposes of each room in this apartment is as follows: Room No. ______________ not more than ______________ ADULTS Room No. ______________ not more than ______________ ADULTS
(Provide separate line for each room in apartment or suite.)
The above sign must show the address of the premises, the location of the apartment or suite of rooms, the total maximum lawful occupancy for sleeping purposes of the entire apartment or suite, and the permitted lawful occupancy for sleeping purposes of each individual room in said apartment or suite. The maximum lawful occupancy for sleeping purposes of each room shall be shown on a separate line, with a proper designation by room number in order to identify each room.
Subchapter F: Signs Identifying Owner, Managing Agent and Superintendent of Multiple Dwellings
§ 25-81 Signs Identifying Owner, Managing Agent and Superintendent; Plans on Premises.
(a) (1) Identification signs for the purpose of identifying the owners and managing agents of multiple dwellings by the display of the serial number, shall comply with the applicable provisions of these rules.
(2) Identification signs for the purpose of identifying the superintendents, janitors or housekeepers of multiple dwellings, wherein such employees are required by the provisions of § 83, Multiple Dwelling Law, shall comply with the applicable provisions of these rules.
Department of Housing Preservation and Development City of New York Serial Number Street Address of Building
(2) The following information shall appear on the sign, prescribed in paragraph (2) of subdivision (a) of this section, in four lines of lettering as indicated and in the order indicated:
Title (Superintendent, Janitor or Housekeeper) Name of Superintendent, Janitor or Housekeeper Address of Superintendent, Janitor or housekeeper (including apartment number, if any)
(2) The street address of the building consisting of the house number and the street shall be placed on each sign by the owner or his representative.
(3) The lettering shall be gothic type. The numbers composing the serial number shall be not less than one-half inch in height. The letters forming “Department of Housing Preservation and Development” and the street address shall not be less than one-fourth inch in height. All other letters shall be not less than three-sixteenth of an inch in height. Letters shall be of such width and whatever as will provide the greatest legibility.
(1) Signs that are defaced, damaged or removed, shall be promptly repaired or replaced. Signs shall be maintained in such manner as to be easily read at all times.
Subchapter G: Requirement That Owners of Multiple Dwellings File A ‘24-hour’ Telephone Number With the Department of Housing Preservation and Development
§ 25-91 Rules for Enforcement of Subdivision (4) of § 27-2098 of the Administrative Code of the City of New York.
(a) The words "may be reached at all hours and time" within the meaning of subdivision (4) of § 27-2098 of the Administrative Code shall be construed to mean a telephone number at or through which in the normal course of events a person might reasonably be expected to be reached at all times and this shall be deemed to include:
(1) the telephone number of the residence of such person; or
(2) the telephone number of an agent fully authorized to act on behalf of the owner; or
(3) the telephone number of a person, firm or corporation, including an answering service, which has in its possession at all times a telephone number at which the person or agent can be reached at all times. A corporation may comply with this subdivision by any of the means as hereinabove set forth.
Subchapter H: Owner’s Right to Access to Dwelling Units or Rooms in Multiple Dwellings and Requirements for Notification
§ 25-101 Owner’s Right of Access and Requirements for Notification.
(a) (1) Owner to give notice. Where an owner or his or her representative seeks access to a dwelling unit, suite of rooms or to a room, under the provisions of § 27-2008 in order to make an inspection for the purpose of determining whether such places are in compliance with the provisions of the multiple dwelling law or the administrative code, such owner or representative shall notify the tenants not less than twenty-four hours in advance of such time of inspection.
(2) Where an owner or his or her representative seeks access to make improvements required by law or to make repairs to a dwelling unit, suite of rooms or to a room, such owner or representative shall give written notice to the tenant not less than one week in advance of the time when the improvements or repairs are to be started, except where otherwise provided in paragraph (3) of this subdivision.
(3) Where an owner or his or her representative seeks access to make repairs (i) that are urgently needed to a dwelling unit, suite of rooms or a room, as in the case where a class C violation of the Housing Maintenance Code has been issued, except where such class C violation is for the existence of a lead-based paint hazard, or (ii) in the case of an emergency where repairs are immediately necessary to prevent damage to property or to prevent injury to persons, such as repairs of leaking gas piping or appliances, leaking water piping, stopped-up or defective drains, leaking roofs, or broken and dangerous ceiling conditions, such owner or representative shall not be required to provide written advance notice, but shall be required to notify the tenant or tenants by such actions as telephone, email, or by knocking on the occupant’s door at a reasonable time when he or she would be expected to be present.
(4) Where an owner or his or her representative must make a repair in a public area or other area of a dwelling that may result in an interruption of essential services such as utilities (heat, hot water, cold water, gas, electricity, or elevator) that is expected to continue for more than two hours, the owner or his or her representative shall provide written notice to the tenants by posting a notice in a prominent place within the public part of the building and on each floor of such building at least twenty-four hours prior to such interruption. However, if such interruption is not expected to continue for more than two hours or is due to emergency repairs that were not anticipated and must begin immediately, advance notice is not required, provided that notice shall be posted as soon as possible if such work continues for two or more hours. Such notice shall identify the service to be interrupted, the type of work to be performed, the expected start and end dates of the service interruption, and shall be updated as necessary. Such notice shall be provided in English, Spanish, and such other language as the owner deems necessary to adequately provide notice to the tenants. Such notice shall remain posted until the interruption of essential services interruption ends. A sample notification form is provided in these rules.
Sample Notification Form for Interruption of Essential Services
NOTICE OF INTERRUPTION OF SERVICES
Please be advised that due to repair work in the building located at _________________, there will be an interruption in the following building services:
o heat o hot water o cold water o gas o electricity o elevator
The interruption in service is expected to begin on ______________ and to end on ______________.
The repair work is for the purpose of
AVISO DE INTERUPCION DE SERVICIOS
Por favor tenga en cuenta que debido a reparaciones en el edificio localizado en _________________, habrá una interrupción en los siguientes servicios del edifico:
o Calefacción o Agua Caliente o Agua Fria o Gas o Electricidad o Elevador
La interrupción en servicio se espera comenzar en ______________ y terminar en ______________.
El trabajo de reparación es para el propósito de
Subchapter I: Boiler Room Enclosure
§ 25-111 Boiler Room Enclosure for Multiple Dwellings with Central Heat.
(a) A separate enclosure shall not be required when the central heating plant is located in a cellar that is used for no other purpose, provided that
(1) The building is occupied entirely for residential purposes.
(2) The first tier is of fireproof construction with no opening to the upper stories.
Subchapter J: Signs Indicating Floors In Multiple Dwellings
§ 25-121 Signs Indicating Floors in Multiple Dwellings Pursuant to § 27-2047 Administrative Code.
(a) Signs may be posted or painted and may consist of numerals or letters only.
Subchapter K: House Numbers
§ 25-131 House Numbers.
(a) On each building erected or altered after the effective date of these rules there shall be affixed in a conspicuous location at or near the main entrance of a building, the house number of the building.
Subchapter L: Measuring Floor Area of Public Halls, Stairs, Fire-stairs and Fire-towers In Multiple Dwellings To Determine Lighting Requirements
§ 25-141 Measuring Floor Area of Public Halls, Stairs, Fire-Stairs and Fire-Towers in Multiple Dwellings to Determine Lighting Requirements.
(a) To compute the square feet of floor area of public halls in multiple dwellings having an unenclosed stair, the floor area of the public hall and the horizontal area of the stair opening shall be added. At the lowest story, where there is an ascending flight of stairs but no descending flight of stairs, only the area of the actual flight of stairs shall be added to the floor area of such lowest story.
Subchapter M: Entrance Doors, Locks and Intercommunication Systems
§ 25-151 Entrance Doors, Locks and Intercommunication Systems.
(a) Bulkhead doors and scuttles shall have no key locks and shall not be locked by a key at any time. The only permissible and acceptable means of securing a bulkhead door or scuttle is by means of a movable bolt or hook on the inside.
(1) Devices which have been previously installed and which are in good condition and performing in an adequate manner may, in the discretion of the department, be accepted.
Subchapter N: Installation of Security Items In Multiple Dwellings
§ 25-161 Installation of Peepholes.
(a) These new peepholes, or door interviewers, must bear a label showing the approval of the Department of Buildings or the previous approval of the Board of Standards and Appeals.
§ 25-162 Installation of Two 50 Watt Lights at Front Entrance Way.
(a) All electrical work shall be done in accordance with the requirements and approval of the Department of Buildings.
§ 25-163 Installation of Viewing Mirrors in Self-Service Elevators.
(a) Mirrors shall be made of polished metal.
§ 25-164 Installation of Lights in Rear Yards, Side Yards, Front Yards and Courts.
(a) All electrical work shall be done in accordance with requirements and approval of the Department of Buildings.
Subchapter O: Fire-retarding of Entrance Halls, Stair Halls and Public Halls In Old Law Tenements and Converted Dwellings
§ 25-171 Fire-Retarding of Entrance Halls, Stair Halls and Public Halls in Old Law Tenements and Converted Dwellings.
(a) Intent. The fire-retarding rules herewith set forth are approved by the Department of Buildings for old law tenements and converted dwellings where their entrance halls, stair halls and public halls are required, by § 189, subdivisions 1 and 4, § 238, subdivision 4, and § 218, subdivisions 5 and 6, Multiple Dwelling Law, and § 27-2044, Housing Maintenance Code, to be fire-retarded in a manner approved by the Department of Buildings.
(1) All entrance halls, stair halls and public halls, including service halls and stairs, shall be fire-retarded to the extent required by the Multiple Dwelling Law and the Multiple Dwelling Code and the Housing Maintenance Code.
(2) It is the intent that all wood structural members of partitions, ceilings and stair soffits shall be completely protected with fire-retarding materials where they may be exposed to fire in entrance, stair and public halls. To this extent these rules and regulations cover only general conditions and are not designed to cover specific or special cases. Where such may occur the owner is required to consult the Department of Buildings and receive instructions before work is started.
(3) Where existing dumbwaiter shafts are located in, or open on public halls which are required to be fire-retarded, such dumbwaiter shafts, when not constructed of fireproof or fire-retarding materials, shall be fire-retarded on the inner side, from the lowest story to the roof inclusive, in accordance with the requirements of paragraph (1) of subdivision (b) of this section or paragraph (2) of subdivision (b) of this section, except in cellar where such shafts shall be enclosed with fireproof materials. All doors opening from such dumbwaiter shafts shall be self-closing, and doors and assemblies when of wood or other non-fireproof construction shall be lined on both sides with No. 26 U.S. gauge metal, except in cellar where doors and assemblies shall have a fire-resistive of at least one (1) hour.
(4) It is not intended that these rules and regulations in themselves require plans to be filed. However, should any work involve structural changes, then plans are required to be filed in the Department of Buildings and such changes shall be subject to all other Rules and Regulations applicable thereto.
(5) Work shall not commence until satisfactory evidence has been submitted to the Department of Buildings that compensation insurance has been obtained in accordance with the provisions of the Workmen’s Compensation Law. It is the intent of 238, subdivision 4, Multiple Dwelling Law, that every entrance hall, public hall and stair hall in every old law tenement four stories or more in height shall be fire-retarded. Every old law tenement three stories and a basement, or three stories, basement and cellar in height shall be deemed to be four stories in height when the main entrance from the grade is to the basement, and every entrance hall, public hall and stair hall in such building shall be fire-retarded. In old law tenements where the entrance halls, public halls and stair halls are required to be fire-retarded, existing wood stairs shall be fire-retarded in conformity with the requirements of these rules and regulations, whether or not such halls had been fire-retarded in accordance with plans filed with and approved by the former Tenement House Department or Department of Buildings, prior to the enactment of subdivision 4 of § 238 of the Multiple Dwelling Law.
(1) Metal lath and cement of gypsum mortar. Completely remove all existing materials to face of studs or other structural members on hall side of partitions and recover with metal lath and two coats of cement of gypsum mortar. If cement mortar is used it shall be three-quarters inch (3/4”) thick, if gypsum mortar is used it shall be one inch (1”) thick. The second coat of mortar shall not be applied until the first coat has thoroughly set and in no case shall the second coat be applied on the same day that the first coat of mortar is applied. In lieu of the above method, completely remove all combustible materials from plaster face of partitions on hall side and repair existing plaster. After inspection, cover existing plaster with herringbone or similar approved type metal lath with rigid rib reinforcement to provide good bond between new and existing plaster. Cover lath with two coats (scratch and brown) of cement of gypsum mortar as above. The first coat of cement mortar (scratch) shall be composed of one (1) part of Portland cement to one and one-half (1 1/2) parts of sand, with an additional volume of hydrated lime not greater than ten (10) percent of the volume of Portland cement. The second coat (brown) shall be composed of one (1) part of Portland cement to three parts (3) of sand, with an additional volume of hydrated lime not greater than ten (10) percent of the volume of Portland cement. The first coat (scratch) of gypsum mortar shall be composed of one (1) part of gypsum to one (1) part of sand. The second coat (brown) of gypsum mortar shall be composed of one (1) part of gypsum to one and one-half (1 1/2) parts of sand.
(2) Plaster boards and gypsum mortar or stamped metal. Completely remove all existing materials to face of studs or other structural members on hall side of partitions and recover with plaster boards or perforated rock lath three-eights inch (3/8”) thick, covered with two coats of gypsum mortar (scratch and brown) so that the aggregate thickness shall be at least one inch (1”), or in lieu thereof, recover same with plaster boards one-half inch (1/2”) thick, covered with No. 26 U.S. gauge stamped metal. In lieu of the above method, completely remove all combustible material from plaster face of partitions on hall side and repair existing plaster. After inspection, plaster boards or perforated rock lath may be applied directly over the existing plaster face of partitions on hall side. Cover plaster boards or perforated rock lath with two coats of gypsum mortar as above, or plaster boards may be covered with No. 26 U.S. gauge stamped metal.
(3) Mineral wool. Fill solidly between partition uprights, from underside of flooring to ceiling with mineral wool blown in place by the pneumatic method, packed solidly to fill all spaces and voids.
(4) Brick, gypsum, etc. Fill solidly between partition uprights from underside of flooring to ceiling with brick, gypsum, or other acceptable material packed solidly to fill all spaces and voids. Where brick, gypsum, or other masonry material is intended to be used, application must be filed before installation with the Department of Buildings for approval of strength of existing members intended to support the proposed masonry fire-retarding.
(5) Other methods. No other method may be used unless same is acceptable to the Department of Buildings.
(6) Removal of windows in public hall partitions. When windows in walls or partitions are removed, both sides of the openings shall be sealed with fire-retarding materials, except that wood lath and plaster may be used on the room side of the opening when the existing surface of the room is constructed of wood lath and plaster.
(7) Electric meters. Where direct current (DC) electric meters of public utility companies are present or installed on partitions of public halls the fire-retarding shall continue unbroken behind the meters or the meters shall be mounted on a heavy slate back or non-magnetic fireproof equivalent, such as transite, asbestos board, etc., against which fire-retarding finished up tightly.
(8) Partitions in class B converted dwellings. Where fire-retarding is required in any class B converted dwelling referred to in paragraph (7) of subdivision (a) of this section, both sides of all enclosure partitions of entrance halls, stair halls and public halls throughout such building shall be fire-retarded in accordance with the provisions of paragraph (3) or (4) of subdivision (b) of this section.
(9) Partitions in altered old law tenements. In any old law tenement where the occupancy is increased on any story, the enclosing partitions of any entrance hall, stair hall or public hall on the story where the occupancy has been increased, shall be fire-retarded on both sides. Such requirements shall apply only to the walls of the entrance hall, stair hall or public hall adjoining the altered apartment. The enclosing partitions of such halls other than those adjoining the altered apartment, and the partitions on any story where the occupancy has not been increased, shall be fire-retarded on the hall side. The method of fire-retarding shall be as set forth in paragraph (1) or (2) of subdivision (b) of this section, or said partitions shall be fire-retarded in accordance with the provisions of paragraph (3) or (4) of subdivision (b) of this section.
(10) Newly constructed partitions. In any entrance hall, stair hall or public hall where any partition or part thereof is newly constructed, and where the plaster has been removed from any partition or part thereof, such partition shall be fire-retarded on both sides.
(1) Where any entrance hall, public hall or stair hall, or any other portion thereof, in any part of any old law tenement or converted dwelling is required to be fire-retarded that portion of any ceiling directly underneath any such entrance hall, public hall or stair hall shall be fire-retarded. Where such ceiling is located in any store, apartment or other space it shall also be fire-retarded as required for partitions by paragraph (1) or (2) of subdivision (b) of this section. Where the above method is impractical due to the existing ceiling construction in any such store, apartment or other space, the Department of Buildings may permit the fire-retarding of such ceilings to be applied from above by removing the floor of any such entrance hall, public hall or stair hall and installing between the floor beams, and directly against the ceiling below, a layer of heavy building paper over which there shall be placed a basket made of reinforced ribbed expanded metal lath weighing at least 3.4 pounds per square yard. Such basket shall be lined with Portland cement or gypsum mortar not less than one inch (1”) in thickness. The building paper, metal lath and cement or gypsum mortar shall be carried at least halfway up on the sides of the beams. However, this method will not be accepted for the fire-retarding of any such ceiling located in a space used for a hazardous purpose or business, nor will it be accepted for the fire-retarding of any such ceiling located in the cellar or for the fire-retarding of any ceiling located in any store, apartment or other space when such ceiling is constructed of wood or of wood and metal applied directly to the beams. In such cases the ceilings shall be fire-retarded according to the requirements of paragraph (1) or (2) of subdivision (b) of this section.
(1) In old law tenements where the number of apartments is not being increased, existing wood doors opening into public halls, entrance halls or stair halls may remain provided such doors are made to be self-closing (“butterfly” spring hinges are not acceptable) and, provided further, all glazed transoms and panels in every such door are glazed with wire glass. All such transoms shall be made stationary.
(2) Where, in any old law tenement, the number of apartments is being increased on one or more stories, door openings into public halls, entrance halls or stair halls on each story or stories shall be equipped with self-closing protective assemblies having a fire-resistive rating of at least one hour. In such old law tenements existing wood doors opening into public halls, entrance halls or stair halls may remain on any story where there is no increase in the number of apartments, provided such doors and every transom and panel in same are made to conform to the requirements set forth in paragraph (1) of subdivision (h) of this section.
(3) All doors shall be properly fitted to their assemblies and there shall be no unnecessary spaces between doors and door bucks or saddles.
(1) Metal lath. Metal lath shall weigh at least 30 pounds per square yard, except lath used over existing plaster which lath shall weigh at least 3.4 pounds per square yard and be reinforced with rigid ribs not less than three eights inch (3/8”) deep, spaced not more than eight (8”) on center running full length of sheets. Where ribs exceed 4.8 inches on center, same shall have at least one intermediate one eight inch (1/8”) inverted rib running the full length of sheets. Metal lath fastened to stubs shall be attached at least at six inch (6”) intervals with 4-penny nails or one inch (1”) roofing nails or No. 14 steel wire gauge wire staples, and to wood joists by at least 6-penny nails, one and one-quarter inch (1 1/4”) roofing nails, or one inch (1”) No. 14 steel wire gauge wire staples. When metal lath is applied over existing plastered surfaces, same shall be fastened with nails or staples of the same gauge and such nails or staples have anchorage of at least one-half inch (1/2”)in studs and three-quarters inch (3/4”) in joists. Laps between the studs or joists shall be securely tied or laced. Stiffened metal lath on wood studs, or joists, shall be nailed or stapled at least at eight inch (8”) intervals, and the laps between studs similarly tied or laced. Metal lath shall be galvanized or painted.
(2) Plaster boards or perforated rock lath. Plaster boards or perforated rock lath shall be of type and manufacture acceptable to the Department of Buildings. Each board shall bear the name of manufacturer and brand stamped thereon for inspection after erection. Plaster boards or perforated rock lath nailed directly to wood studding or joists shall be fastened with one and one-eighth inches (1 1/8”) wire nails of at least No. 13 steel wire gauge, with flat three-eighth inch (3/8”) heads. When such boards are applied over existing plastered surfaces, same shall be fastened with nails of the same gauge and such nails shall have anchorage of at least one-half inch (1/2”) in studs and three-quarters inch (3/4”) in joists. The maximum space between nails shall be four inches (4”). The joints shall be broken at every other board. The wetting of such boards before plastering is forbidden.
(3) Stamped metal. Stamped metal shall be No. 26 U.S. gauge (equivalent thickness .018 inches or 3/160 inches) with one inch (1”) lapped seams. Size of sheets shall be not more than twenty-four inches by ninety-six inches (24” x 96”), having a selvage consisting of a half-round bead sufficient to create a one inch (1”) overlap at both seams. Nailing shall be secured direct to studs or joists with 6-penny smooth box nails (two inches (2”) or No. 12 1/2” gauge) with nails on end seams spaced not more than three inches (3”)apart. Nailing to plaster is forbidden and in all cases nails shall have anchorage of at least one-half inch (1/2”) in studs and three-quarters inch (3/4”) in joists. All beads at seam shall be chisel sealed, making a tight joint. All sheets shall be marked “26 U.S. Gauge” for identification and inspection after erection.
(4) Mineral wool. Mineral wool shall be of a type and manufacture acceptable to the Department of Buildings. Holes shall be cut approximately three inches (3”) in diameter through the wood lath and plaster near the ceiling, in the panels between each two adjacent studs. As an alternative, holes may be cut approximately three inches by six inches (3” x 6”) on every second stud. Check each stud panel with a weight and line to find out whether there is any obstruction. If any cross-bridging or other obstruction is encountered additional holes shall be cut until access has been gained to all open spaces within the stud panel in all specified partitions. Mineral wool shall then be blown into all spaces by the pneumatic method with air pressure sufficient to pack the insulation to a density acceptable to the Department of Buildings. Mineral wool for this work shall be in bags or containers marked with the manufacturer’s name and label specifying its type.
(5) Other materials. No other material may be used unless same is acceptable to the Department of Buildings.
§ 25-172 Fire-Retarding of Cellar Ceilings in Old Law Tenements and Converted Dwellings.
(a) Intent. The fire-retarding rules herewith set forth are approved by the Department of Buildings for the existing multiple dwellings where the ceilings of the cellar or other lowest story is required, by § 185 and § 240, subdivision 3, Multiple Dwelling Law, and by § 27-2044, Housing Maintenance Code, to be fire-retarded in a manner approved by the Department of Buildings.
(1) It is the intent of the law to provide a continuous fire-retarded covering over the entire ceiling of the cellar, or other lowest story, so as to prevent fire communicating with upper stories of a multiple dwelling. Where there is a space less than four feet six inches (4’-6”) in height from the ground or floor level to the underside of the first tier of beams, such space shall be considered as an “air space” and not as a cellar. However, when such space opens to a cellar where fire-retarding of the ceiling is required, then such space shall be separated from the cellar with a partition constructed of incombustible material in which there is provided a self-closing door and assembly having a fire-resistive rating of at least one hour. Where the ceiling of the cellar or other lowest story is required to be fire-retarded, all openings in such ceilings for stairways not located directly under a main stair, also openings in ceiling such as pipe shafts, vent shafts, unenclosed dumbwaiter shafts, disused flues, etc., shall be properly closed. (Private stairs within duplex apartments extending into cellar or basement are not required to be enclosed.) New partitions erected to enclose existing stair referred to in the preceding paragraph shall be of incombustible materials. Existing partitions enclosing any such stair will be acceptable where same are of incombustible materials or where same are fire-retarded on both sides in accordance with the methods set forth in or 28 RCNY § 25-171(b)(1) or (2) and with materials conforming with the requirement of 28 RCNY § 25-171(i). Door openings in such enclosure partitions shall be equipped with self-closing protective assemblies having fire-resistive ratings of at least one hour. When existing shafts, including dumbwaiter shafts, extend below the ceiling a distance less than one-half (1/2) the height of the cellar, such shafts shall be considered as being part of the cellar ceiling and the enclosures of said shafts shall be fire-retarded in the same manner as required for cellar ceilings. All existing shafts, including dumbwaiter shafts, which extend below the ceiling a distance more than one-half (1/2) the height of the cellar shall be enclosed with incombustible materials. All shafts referred to in this paragraph shall have adequate cleanout at base consisting of fire-proof self-closing door and assembly having a fire-resistive rating of at least one hour. Where new partitions or enclosures are erected in a cellar they shall be constructed of incombustible materials.
(2) Wood girders, columns, posts, etc. The fire-retarding material of ceiling of cellar or other lowest story shall be carried down and around all non-fireproof ceiling projections, such as wood girders, etc., which are less than six inches (6” x 6”) in diameter. The fire-retarding material also shall be turned down at least three inches (3”) on all non-fire-retarding columns, posts, etc., which are less than six inches (6”) in diameter.
(3) Non-fire-retarded cellar partitions. When non-fire-retarded partitions in cellar, or other lowest story, extend to the ceiling, the fire-retarding material of the ceiling shall be turned down at least three inches (3”) on said partitions, or the partitions shall be cut off at top to permit the fire-retarding of the ceiling to be continuous. Where, in any old law tenement three (3) stories and basement in height, there is also a cellar under the basement story, the ceiling of such cellar shall be fire-retarded; and also, in any such old law tenement, where the main entrance from the grade is to the first story that portion of the basement ceiling which is directly under the first story entrance hall, public hall and stair hall shall be fire-retarded. In every old law tenement three (3) stories and basement in height with no cellar under the basement, where the main entrance from the grade is to the basement story, the ceiling of the basement story shall be fire-retarded throughout. In any such old law tenement where the main entrance from the grade is to the first story no such fire-retarding will be required.
(4) Heating appliances. The portion of the ceiling over any furnace, boiler or hot water heater shall be fire-retarded in accordance with the methods set forth in 28 RCNY § 25-171(b)(1) or (2) and such fire-retarding shall extend for a distance of at least four feet (4’-0”) beyond the sides and rear, and eight feet (8’-0”) in front of such furnace or boiler.
(5) It is not intended that these rules and regulations in themselves require plans to be filed. However, should any work involve structural changes, then plans are required to be filed in the Department of Buildings and such changes shall be subject to all other rules and regulations applicable thereto.
(6) Work shall not commence until satisfactory evidence has been submitted to the Department of Buildings that compensation insurance has been obtained in accordance with the provisions of the Workmen’s Compensation Law.
No. 26 U.S. gauge stamped metal over existing plastered ceiling, when erected without damage to the plaster. Furring strips are not required, but if used, they shall be metal covered on both sides and on face surface. Stamped metal shall not be applied until after existing plastered ceiling has been inspected and approved by an inspector of the Department of Buildings.
§ 25-173 Fire-Retarding of Cooking Spaces in all Multiple Dwellings.
(a) Intent. The rules herewith set forth are approved by the Department of Buildings for the protection of cooking spaces under §§ 33 and 176 of the Multiple Dwelling Law. As set forth in § 33 of the Multiple Dwelling Law, nothing in these rules shall be construed as permitting fire-retarding partitions in fireproof multiple dwellings.
No. 26 U.S. gauge stamped metal over existing plaster when erected without damage to the plaster. Furring strips are not required, but if used, they shall be metal covered on both sides and on face surface. Stamped metal shall not be applied until after existing plaster has been inspected and approved by an inspector of the Department of Buildings. Materials used shall be in accordance with the provisions of 28 RCNY § 25-171(i)(1), (2) or (3). No other methods or materials may be used unless same are acceptable to the Department of Buildings.
§ 25-174 Fire-Escapes, Fire-Stairs and Fire-Towers.
(a) Intent. These rules have been approved by the Department of Buildings to supplement the provisions of § 53 of the Multiple Dwelling Law in relation to fire-escapes, fire-stairs, etc. Where fire-escapes serve as a means of exit from other than multiple dwellings, such fire-escapes shall comply with the laws governing such occupancy. The voluntary erection of fire-escapes on private residence buildings or business and residence buildings shall be in conformity with these rules and regulations unless otherwise directed by the Borough Superintendent of the Department of Buildings. It is the intent of these rules to cover only general conditions and they are not designed to cover specific or special cases. When such may occur the owner is required to consult the Department of Buildings and receive instructions before starting of work.
(1) Fire-escapes on multiple dwellings requiring new certificate of occupancy. Except as provided in paragraph (2) of subdivision (g) of this section re lodging houses, double-rung ladder type fire-escapes will not be accepted when a new certificate of occupancy is required.
(2) Alterations for increased occupancy. Where an alteration is made increasing occupancy on any story and a fire-escape is required such fire-escape shall conform to the provisions of § 53 of the Multiple Dwelling Law and to the applicable provisions of these rules.
(1) Caution. No fire-escapes shall be removed from any apartment without due precaution against leaving occupants without fire-escape protection as required by subdivision 9 of § 53 of the Multiple Dwelling Law.
(2) Entrance story, etc. – second means of egress. Where the distance to safe landing, from the window sill of any apartment on any story, including the entrance story, is more than twelve feet (12’-0”), a balcony and sliding drop-ladder or other approved second means of egress shall be provided for such apartment. Safe egress to street or other safe place shall be provided from the termination of such means of egress.
(3) Application blanks and plans. Before the erection of new fire-escapes or alteration of existing fire-escapes upon any multiple dwelling, application must be filed with and approved by the Department of Buildings.
(4) Projections beyond the building line. Every part of fire-escapes or balconies erected on the fronts of multiple dwellings shall be at least ten feet (10’) above the sidewalk when such fire-escapes or balconies project beyond the building line.
(1) New party-wall balconies. The erection of new party-wall balconies shall be subject to the discretion and jurisdiction of the Department of Buildings, provided, however, that there shall be no doors or openings in the wall between the buildings served by such balconies other than windows in fireproof airshafts. New party-wall balconies will not be permitted on adjoining frame multiple dwellings.
(2) Existing party-wall balconies. Party-wall balconies existing on any multiple dwelling shall afford safe egress, be kept in good order and repair, be constructed so as to be structurally strong and shall be maintained in conformity with all other applicable laws, rules and regulations. Such fire-escapes are acceptable on occupied multiple dwellings.
(1) Any existing party-wall fire-escape (stairways) connection with and used in common by a multiple dwelling and a non-multiple dwelling is acceptable when such fire-escape is maintained in good order and repair and affords safe egress.
(1) Double-rung ladders will not be permitted on new fire-escapes.
(2) Any fire-escape existing prior to the enactment of the Multiple Dwelling Law on any multiple dwelling that does not require a certificate of occupancy resulting from an alteration, if structurally sound and in good condition and provided with existing ladders inclined at an angle not exceeding eighty (80) degrees and equipped with double-rung steps and which affords safe egress, shall be deemed to be a legal fire-escape. When a certificate of occupancy is requested or required in connection with a lodging house which is equipped with a double-rung ladder fire-escape and such fire-escape is in good repair and adequate, except as to type, and only minor violations exist the correction of which will make the premises conform to all other law requirements, the existing double-rung ladder fire-escape may be accepted.
(3) Except as provided in paragraph (2) of subdivision (g) of this section re lodging houses, double-rung ladders are not acceptable when a new certificate of occupancy is to be issued.
(1) Egress from apartments used for “single room occupancy.” No room in any apartment shall be so occupied for “single room occupancy” unless each room therein shall have free and unobstructed access to each required means of egress from the dwelling without passing through any sleeping room, bathroom or water-closet compartment. In apartments used for “single room occupancy” there shall be access to a second means of egress within the apartment without passing through any public stair or public hall. On and after July 1, 1957, every tenement used or occupied for single room occupancy in whole or part under the provisions of § 248, Multiple Dwelling Law, and which does not have at least two means of egress accessible to each apartment and extending from the ground story to the roof, shall be provided with at least two means of egress, or, in lieu of such egress, every stair hall or public hall, and every hall or passage within an apartment, shall be equipped on each story with one or more automatic sprinkler heads approved by the department. Elevator shafts in such tenements shall be completely enclosed with fireproof or other incombustible material and the doors to such shafts shall be fireproof or shall be covered on all sides with incombustible material. In apartments used for “single room occupancy” where access to a required means of egress is provided through a room such access to such room shall be through a clear opening at least thirty inches (30”) wide extending from floor to ceiling and such opening shall not be equipped with any door frame, or with any device by means of which the opening may be closed, concealed or obstructed.
(1) Steel casement sash. Steel casement sash opening outward onto any fire-escape balcony three feet six inches (3’-6”) in width will be permitted, provided such sash is equipped with approved extension hinges so that, when opened, the sash will be flat against the wall, and further provided that there will be no adjusters on the sash as part of its equipment. Passageway of fourteen inches (14”) clear width is required to be maintained between the sash or hinges and any portion of the fire-escape when the sash lies flat against the wall. When casement sash is set at right angle to the fire-escape stairway a clear radial width of twenty inches (20”) must be provided.
(2) Wire screens and storm windows. Wire screens are permitted on a door or window giving access to a fire-escape. Such screens may be of the rolling type, casement or of a type that slides vertically or horizontally in sections, providing that there shall be a clear unobstructed space two feet (2’) in width and two feet six inches (2’-6”) in height when the screens are opened and further provided that no such screen shall be subdivided with muntins or other dividing or separating bars into spaces less than two feet (2’) in width by two feet six inches (2’-6”) in height. Storm sash and storm doors are permitted on openings giving access to fire-escapes provided they are arranged so as to be easily and readily opened from the inside and do not obstruct or interfere with safe egress.
(1) Hereafter erected extension roofs. Where the roof of an extension hereafter erected is to be used as a means of egress from a fire-escape, or where a fire-escape balcony is located directly above said roof, such roof shall be of fireproof constuction.
(2) Existing extension roofs. Except in converted dwellings where sprinklers may be installed, in every multiple dwelling where a fire-escape balcony is situated over and not more than eight feet (8’) above a non-fireproof roof, or where a non-fireproof roof of an extension is to be used as egress from fire-escapes, the entire ceiling of said extension must be fire-retarded with metal lath and cement or gypsum mortar in the manner prescribed in 28 RCNY § 25-171(b)(1) and (i)(1), or with one-half inch (1/2”) approved plaster boards lined with No. 26 U.S. gauge stamped metal. In buildings requiring the issuance of a certificate of occupancy as a result of being altered structurally, the only approved method shall be with cement of gypsum mortar and metal lath weighing not less than three (3.0) pounds per square yard which shall be applied directly to the beams or other structural members. Where the roof of an existing extension is used as fire egress, a balcony shall be provided at the level of the roof and, if the distance between the said balcony and a safe landing is more than sixteen feet (16’-0”), a landing platform must be provided not more than ten feet (10’-0”) from said safe landing and this landing platform and the balcony on the roof level must be connected by a regulation stairway. From the landing platform a drop-ladder in guides must be provided so as to reach the safe landing. A balcony and drop-ladder in guides as per paragraph (11) of subdivision (r) of this section shall be provided for every two fire-escape stacks or fraction thereof using an extension roof for landing and fire egress.
(3) Skylights on extensions. Any existing skylights in said roof must be constructed of incombustible material whenever deemed necessary. Where skylights exist or are hereafter constructed on the roof of an extension used as a means of egress from a fire-escape, they must not interfere with egress in any way and if in the line of said egress, they must be provided with a substantial guard-rail not less than three feet six inches (3’-6”) high.
(1) Fire-escapes in court (side yard). Except as provided in paragraph (6) of subdivision (bb) of this section where an apartment has a street frontage and extends also to a yard, fire-escapes may be permitted to be placed in a court (side yard) if the court (side yard) is not less than seven feet (7’-0”) wide. In any multiple dwelling where exterior structural conditions are such as to prevent the erection of a fire-escape on the street or yard, new fire-escapes may be permitted to be erected in a lot-line court (side yard) providing the lot-line court (side yard) extends from street to rear yard and is not less than three feet (3’-0”) in width for its full length. Fire-escapes erected in such court may be three feet (3’-0”) wide when the width of such court does not permit balconies three feet four inches (3’-4”) in width. The width of stairways and passageways and other arrangement details affected by the permitted reduction in the width of balconies will be determined and furnished to contractor by the Department upon request.
(2) Where an existing apartment in a tenement erected prior to April 12, 1901, is located entirely on a court and has no rooms opening on the street or yard, fire-escapes hereafter provided for such apartments may be located in courts under the same conditions as prescribed for existing fire-escapes in subdivision (d) of this section.
(1) Definition of “Type A” and “Type B” fire-escapes.
Type A. “Type A” shall mean fire-escape is one which has a supporting bracket at each end of the balcony or platform.
Type B. “Type B” fire-escape is one which has brackets not more than four feet (4’) apart supporting the balcony or platform.
(2) Cantilever brackets will not be accepted for new fire-escapes on existing buildings.
(3) Details of other types of structural supports for fire-escapes must be submitted to and approved by the Department before being used in the construction of fire-escapes.
(4) “Type A” fire-escapes are not permitted on frame buildings, walls or hollow masonry constructions, on walls of solid masonry less than eight inch (8”) in thickness nor on hollow walls of solid masonry unless complete construction details are submitted to and approved by the Department before the construction of fire-escapes.
(1) Passageway. Seventeen inches (17”) in width is required between the strings of stairs and the wall, or between the strings of stairs and railings, clear of all projections to a height of six feet six inches (6’-6”). Fourteen inches (14”) clear width is required between the hatchway railing and the window sill. Seventeen inches (17”) in width is required between the gooseneck ladder and the hatchway on the upper balcony.
(2) Openings. The openings for stairways in all balconies shall be not less than twenty-one inches (21”) wide, and of such length as to provide at least six feet six inches (6’-6”) clear headroom on all stairways at every tread, and shall have no covers of any kind. A round, iron guard rail, three-quarters inch (3/4”) in diameter shall be provided around all hatchways on all new balconies, and also, when necessary, around hatchways on existing balconies. Such guard rails shall be at least two feet six inches (2’-6”) high and shall be properly braced at intervals of three feet (3’). The brace from guard rail to the front top rail shall be so arranged to allow six feet six inches (6’-6”) of headroom on the stairway. Openings are not permitted in the floor of the lowest balcony of any new fire-escapes. Egress must be from a gateway in the front or end rail.
(3) Top rails. New top rails must be one and three-quarters inches by one-half inch (1 3/4” x 1/2”) wrought iron or steel. Angle iron top rails will not be accepted. Separate bolt ends must be one and one-half inches by one-half inch (1 1/2” x 1/2”) at connection with top rails and secured to the same by two three-eighths inch (3/8”) bolts well upset. No welded connections, other than shop welding, for top rails, will be permitted. Top rails must go through the wall. When the wall is of brick, stone or concrete they must be anchored on the inner face thereof by means of nuts and four-inch by four-inch by three-eighths inch (4” x 4 x 3/8”) washers. Where a masonry wall is eight inches (8”) in thickness the washers shall be continuous and shall extend vertically from four inches (4”) below the bracket anchorage to four inches (4”) above the top rail. Bolt ends must be at least three-quarters inch (3/4”) in diameter. Top rails must be anchored in the wall at least nine inches (9”) from the window or door opening. On recess fire-escapes the top rails need not go through the wall, but must be hot leaded six inches (6”) in brick or stone and at least twelve inches (12”) from the outside face of the wall. The front and return top rail, unless in one (1) piece, must be secured at the angle in the following manner: (1) with lap joint, by one-half inch (1/2”) rivet and a strap of same dimension as the top rail, with one (1) three-eighths inch (3/8”) rivet or bolt in each end of the strap; (2) with butt joint, by a triangular plate four inches by six inches by three-eighths inch (4” x 6” x 3/8”) secured to each member of the top rail by two (2) three-eighths inch (3/8”) bolts or rivets. Where front rails are not rigid they must be braced with outside braces. Said braces must be wrought iron not less than one and three-quarters inches by one-half inch (1 3/4” x 1/2”) placed on edge. The braces must be properly spaced and secured to the extended brackets and top rails by three-eighths inch (3/8”) rivets or bolts. Where brackets are extended to receive outside braces the extended portion must never be less than two inches by one-half inch (2” x 1/2”) and secured to the bracket by two (2) three-eighths inch (3/8”) rivets or bolts. Bow braces and overhead braces will not be accepted.
(4) Bottom rails. Bottom rails must be one and one-half inches by three-eighths inch (1 1/2” x 3/8”) wrought iron and front rail of same must be secured to brackets three-eighths- inch (3/8”) rivets or bolts. Return bottom rails must be leaded or cemented in the wall when the latter is of brick, or may be secured to the brackets when this is practicable. The bottom front and return rails must be connected at angles by at least one (1) three-eighths inch (3/8”) rivet or bolt well burred.
(5) Standards. Standards must be not less than one-half inch (1/2”) round or square set vertically, riveted to the top and bottom rails, not more than six inches (6”) apart on centers. Special designs must be submitted for any variation, and approved before work is begun.
(6) Floor slats. Floor slats must be of wrought iron one and one-half inches (1 1/2”) in width and three-eighths inch (3/8”) thick and placed not more than one and one-quarter inches (1 1/4”) apart. In new balconies floor slats shall not project more than six inches (6”), and in old balconies not more than eighteen inches (18”), beyond the end bracket and shall not be supported by the bottom rail. All floors must be well secured to the brackets by three-eighths inch (3/8”) “U” or clamp bolts. Floor slats may be spliced with a four-inch (4”) splice plate three-eighths inch (3/8”) thick, secured by three-eighths inch (3/8”) countersunk or roundhead bolts or rivets on each side of the joint. The ends of the floor slats must not project over stairs so as to overhang the top tread more than one-half inch (1/2”). The ends of such floor slats shall not be cut or burned off so as to be jagged or uneven. The floor slats shall be in true alignment.
(7) Battens. Battens must be one and one-half inches by three-eighths inch (1 1/2” x 3/8”) not more than three feet (3’) apart, riveted to the slats by five-sixteenth inch (5/16”) rivets and so spaced as to secure rigidity. No welded connections, other than shop welding, for top rails will be permitted. Top rail must go through the wall. When the wall is of brick, stone or concrete they must be anchored on the inner face thereof by means of nuts and four-inch by four-inch by three-eighths inch (4” x 4”x 3/8”) washers. Where a masonry wall is eight inches (8”) in thickness the washers shall be continuous and shall extend vertically from four inches (4”) below the bracket anchorage to four inches (4”) above the top rail. Bolt ends must be at least three-quarters inch (3/4”) in diameter. Top rails must be anchored to the wall at least nine inches (9”) from the window or door opening. On recess fire-escapes the top rails need not go through the wall, but must be hot leaded six inches (6”) in brick or stone and at least twelve inches (12”) from the outside face of the wall. The front and return top rail, unless in one (1) piece, must be secured at the angle in the following manner: (1) with lap joint, by one-half inch (1/2”) rivet and a strap of same dimension as the top rail, with one (1) three-eighths inch (3/8”) rivet or bolt in each end of the strap; (2) with butt joint, by a triangular plate four inches by six inches by three-eighths inch (4” x 6” x 3/8”) secured to each member of the top rail by two (2) three-eighths inch (3/8”) rivets or bolts. Top rails may be spliced with iron of the same dimensions as the rails with two (2) three-eighths inch (3/8”) rivets or bolts on each side of the splice, or may be overlapped not less than eight inches (8”) and secured by two (2) three-eighths inch (3/8”) bolts or rivets. Where front rails are not rigid they must be braced with outside braces. Said braces must be wrought iron not less than one and three-quarters inches by one-half inch (1 3/4” x 1/2”) placed on edge. The braces must be properly spaced and secured to the extended brackets and top rails by three-eighths inch (3/8”) rivets or bolts. Where brackets are extended to receive outside braces the extended portion must never be less than two inches by one-half inch (2” x 1/2”) and secured to the bracket by two (2) three-eighths inch (3/8”) rivets or bolts. Bow braces and overhead braces will not be accepted.
(8) Landings. Landings at the head and foot of stairs shall be at least forty inches by twenty inches (40” x 20”), except on the balcony on the top story where the gooseneck ladder is located such landing shall be not less than forty inches by thirty inches (40” x 30”). On the lowest balcony where the opening to drop-ladder is in the return rail at front of the lowest tread the landing must be at least forty inches by thirty-six inches (40” x 36”).
(9) Egress from lowest balcony. The gateway in the rail must be of sufficient width to permit the proper installation of the drop-ladder and guide-rods. Where the opening to the drop-ladder is in the return rail and at front of the lowest step, the landing at the foot of the stairs must be at least three feet by three feet, four inches (3’ x 3’- 4”). Top rails must be well braced at the gateway.
(10) Distance from lowest balcony to ground. The distance from the lowest balcony to the ground or safe landing shall be not more than sixteen feet (16’-0”), except that in existing multiple dwellings where due to structural conditions, such as plate glass store fronts, etc., it is not possible to erect such lowest balcony within sixteen feet (16’-0”) of the ground, the Department of Buildings may permit such balcony to be erected at a height of not more than eighteen feet (18’-0”) above the ground.
(11) Termination of fire-escapes on extension roofs. Where fire-escape stairs or ladders rest upon a fireproof roof, no balcony need be provided at the foot of such stairs or ladders. Where fire-escapes terminate on the roof of an existing extension, a guide-rod drop-ladder shall be provided at the level of the roof of such extension. Where the distance from such roof to a safe landing is more than sixteen feet (16’-0”), an intermediate balcony not more than ten feet (10’-0”) above a safe landing shall be provided, and such intermediate balcony shall equipped with a guide-rod and drop-ladder and connected by means of a regulation stairway and balcony at the level of the extension roof. Balconies, where required, must be anchored and constructed in a manner satisfactory to the Department of Buildings. The roof of every extension used for egress, or upon which fire-escapes terminate, shall be fireproof or fire-retarded according to the provisions of subdivision (m) of this section of these rules and regulations.
(1) “Type A”. All horizontal members of brackets and all cross beams shall be not less than four-inch (4”) channels weighing not less than seven and one-quarter (7.25) pounds to the linear foot. The end bracket members shall enter the wall at a point not less than nine inches (9”) from a door or window and shall be anchored on the inside face of the wall with an eight inch by eight inch by three-eighths inch (8” x 8” x 3/8”) washer and one-inch (1”) bolt and nut. Where the wall is eight inches (8”) in thickness the washer shall be continuous and shall extend across all brackets and cross beams. The bolt end shall be wrought iron not less than two inches by one-half inch (2” x 1/2”) which shall be drawn out to form the necessary bolt end without welded connections. The bolt end shall be secured to the bracket with two (2) one-half inch (1/2”) rivets. On eight-inch (8”) walls the bolt end shall not be less than nine inches (9”) long. On twelve-inch (12”) walls the bolt end shall not be less than eleven inches (11”) long. On sixteen-inch (16”) walls the bolt end shall not be less than fifteen inches (15”) long. When the wall is eight inches (8”) in thickness the bracket member shall enter the wall not less than seven inches (7”). When the wall is twelve inches (12”) in thickness the bracket member shall enter the wall not less than eleven inches (11”). When the wall is sixteen inches (16”) in thickness the bracket member shall enter the wall not less than fifteen inches (15”). The intermediate cross beams shall enter the wall not less than eight inches (8”) except where they enter the wall under a window. In such case the cross beam shall enter the wall not less than four inches (4”). The member forming the hatchway opening shall be a four-inch (4”) channel iron weighing not less than seven and one-quarter (7.25) pounds per foot. It shall be secured to the intermediate cross beam with a three-inch by three-inch by one-quarter inch (3” x 3” x 1/4”) lug and two (2) one-half inch (1/2”) rivets or bolts. The front bottom member of the fire-escape shall be of the following size and weights:
| Length of Balcony | Weight of Channels | Size of Channels |
|---|---|---|
| Up to 11 feet | 9.0 pounds per foot | 5 inches |
| Up to 13 feet | 10.5 pounds per foot | 6 inches |
| Up to 15 feet | 12.25 pounds per foot | 7 inches |
| Up to 17 feet | 13.75 pounds per foot | 8 inches |
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The bracket braces shall be angle iron not less than two and one-half inches by two and one-half inches by one-quarter inch (2 1/2” x 2 1/2”x 1/4”). The braces shall drop not less than twenty-four inches (24”) from the top of the bracket and shall extend out to a point not less than three-quarters (3/4) of the length of the bracket. Each member of the brace shall be secured to the bracket with two (2) one-half inch (1/2”) rivets. The drop member of the brace shall be secured to the extended member with two (2) one-half inch (1/2”) rivets. The heel of the brace shall be cut out one-half inch (1/2”) to allow for the drainage of water. Where, owing to cornices, water-tables and porticos, it is impossible to use the standard brackets, inverted brackets may be used. When inverted brackets are used they shall be constructed with an upright wall member and a diagonal member. The wall member shall be an angle iron not less than three inches by four inches by three-eighths inch (3” x 4”x 3/8”) and the diagonal member shall be an angle iron not less than three inches by three inches by three-eighths inch (3” x 3”x 3/8”). Each member shall be secured to the bracket with two (2) one-half inch (1/2”) rivets. The wall members shall be secured to the wall with two (2) one-inch (1”) bolts which shall pass through the wall and be anchored on the inside face of the wall with a washer four inches by three-eighths inch (4” x 3/8”) which shall extend across the two (2) bolts. A one-inch (1”) nut shall secure the washer to the bolt. The bolts shall be placed sixteen inches (16”) apart on centers. The four-inch (4”) member of the wall brace shall bear against the wall and shall extend from the bracket to and above the top return rail of the balcony. The top return rail of the balcony shall be secured to the wall member of the brace with two (2) one-inch (1”) rivets or nuts and bolts. When inverted braced are used the bracket member shall enter the wall not less than four inches (4”). All other portions of “Type A” fire-escapes, except roof balconies, shall be constructed and erected as specified for the construction and erection of “Type B” fire-escapes.
(2) “Type B”. The horizontal members of brackets shall consist of a one-piece wrought iron bar two inches by one-half inch (2” x 1/2”) set so that the two inch (2”) dimension is vertical. Brackets shall be not more than four feet (4’-0”) apart. Welded brackets will not be accepted. Angle iron brackets will not be accepted. The top member of the bracket must be drawn out to form the necessary bolt end without welded connection. Brackets shall be placed not less than eight inches (8”) nor more than sixteen inches (16”) below the window sill, except by special permission from this Department. The top member of the bracket must go through the wall, and when the wall is of brick, must be anchored as specified for brackets in new buildings. Brackets on buildings in course of erection must be built into the wall. They must be carried through the wall and turned down three inches (3”), or the top member must be drawn out so as to form a bolt end one inch (1”) in diameter and provided with nuts and with washers four inches by six inches (4” x 6”) and three-eighths-inch (3/8”) in thickness, or where brackets on existing buildings or buildings in the course of erection pass through the walls under window or door openings, such brackets shall be anchored on the inside face of the wall with a four-inch by three-eighths inch (4” x 3/8”) plate extending across the opening and bearing nine inches (9”) on the inner face of each pier. In such case as additional one-half inch (1/2”) bolt passing through wall and anchored to plate with one-half inch (1/2”) nut shall be provided. If wall is recessed said bar must be shaped so as to bear on inner face of recessed wall and the ends of said bar to bear nine inches (9”) on inner face of each pier. In addition a four-inch (4”) steel channel stiffener must be provided to extend across the entire recessed portion. Blocking the recessed portion will not be permitted. Where walls are eight inches (8”) in thickness the four-inch by three-eighths-inch (4” x 3/8”) plate must extend across and take in all brackets. Special designs must be submitted for fire-escape framing other than standard and for masonry openings not included in above schedule. Horizontal members of brackets must be braced with one-inch (1”) square braces and shall rest on a shoulder. The braces shall be secured to the horizontal member with a rivet one-half inch (1/2”) in diameter, at a point two-thirds (2/3) of the length of the horizontal member from the wall. The heel of the brace must be secured to the top member by a rivet of the same size. The brace when entering the wall must be hot leaded in brick or stone three inches (3”) and have a proper bearing on the face of the wall for at least eight inches (8”). If wedges are used to obtain full bearing against the wall, they must be of iron and well secured to the brace and must fill in solidly the space between brace and wall. Anchorage in or bracing in terra cotta is not permitted. Braces must drop at least one-third (1/3) of the length of the long brackets and must drop not less than eight inches (8”) for short brackets. Where a bracket is to receive additional weight on account of suspension rod for lower balconies, said bracket must be reinforced by an additional one-inch (1”) square bracing running from the end of the bracket parallel to the regulation brace. Where it is impossible to brace the brackets in the manner described above, angle iron and tie rod supports must be used.
(3) Anchorages for mullion windows, both “Type A” and “Type B”.
| Masonry Span | Brackets | Anchorage Member |
|---|---|---|
| 5’-0” | 3’-6”Long | 6”Channel 10.5 pounds or 6”x 4”x 9/16”Angle |
| 6’-0” | 3’-6”Long | 7”Channel 9.8 pounds or 6”x 4”x 11/16”Angle |
| 7’-0” | 3’-6”Long | 8”Channel 11.5 pounds or 7”Channel 12.25 Angle |
| 8’-0” | 3’-6”Long | 8”Channel 11.5 pounds |
| 9’-0” | 3’-6”Long | 8”Channel 13.75 pounds |
| 5’-0” | 4’-0”Long | 8”Channel 11.5 pounds or 6”x 4”x 3/4”Angle |
| 6’-0” | 4’-0”Long | 8”Channel 11.5 pounds |
| 7’-0” | 4’-0”Long | 8”Channel 13.75 pounds |
| 8’-0” | 4’-0”Long | 8”Channel 16.25 pounds |
| 9’-0” | 4’-0”Long | 8”Channel 21.25 pounds |
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Notes:
1 – Working stresses taken at 16,000 pounds per square inch.
2 – Load taken at 100 pounds per sq. ft. and includes live and dead loads.
3 – Loads on anchorage members due to bracket reaction placed for maximum bending moment produced in member.
4 – Bearing plates of suitable size must be provided for brackets taking ladder load and for anchorage members.
6” x 4” x 9/16” angle weighs 18.1 pounds per lin. ft.
6” x 4” x 11/16” angle weighs 21.8 pounds per lin. ft.
6” x 4” x 3/4” angle weighs 23.6 pounds per lin. ft.
Angle irons to support balconies where regulation braces cannot be used shall not be less than four inches by four inches by three-eighths inch (4” x 4” x 3/8”). Tie rods shall not be less than one inch (1”) in diameter and shall be anchored through the wall in the same manner as brackets. The angle iron support in such cases shall be set so that the tie rods will pull toward the heaviest part of the webs. When it becomes necessary to shift a bracket from one location to another in order to carry the stairs, a new regulation two inch by one-half inch (2” x 1/2”) bracket shall be installed. No welded brackets, corroded brackets or brackets set flat with cast iron under-bracing will be accepted. Such brackets shall be replaced, wherever found, by a two-inch by one-half inch (2” x 1/2”) bar bracket with cast iron under-bracing is found, said bracket may be permitted to remain if proper one inch (1”) square under-bracing is provided.
(1) Treads. Treads of such construction as may be approved by the Department from time to time will be permitted. Flat iron bars forming treads must be one and one-half inches by three-eighths inch (1 1/2” x 3/8”) and spaced not more than three-quarters of an inch (3/4”) apart. Bars forming treads must be secured to supporting angle irons by three-eighths-inch (3/8”) rivets and these angle irons must be fastened to the strings by two (2) three-eighths-inch (3/8”) rivets or bolts, well burred. Galvanized angle irons one and one-half inches by one and one-half inches by one-quarter inch (1 1/2” x 1 1/2” x 1/4”) will be accepted but if not galvanized, said angle irons shall be one and one-half inches by one and one-half inches by three-eighths inch (1 1/2” x 1/2” x 3/8”). In all cases the vertical legs of the angle irons must be set tightly against the strings so that there will be no intervening spaces. All treads must be set level and must not overhang so as to interfere with foot room on the tread below.
(2) Patented treads. Patented treads approved by the Department of Buildings or previously approved by Board of Standards and Appeals for new installations will be accepted by the Department of Buildings as legal for use in buildings under its jurisdiction. Five samples of approved treads to be furnished to the Department of Buildings (once delivered to each Borough) as a permanent record.
(3) Strings. Where the strings of the stairs are adjacent to the front rails the strings must be securely fastened to the top rails. Strings must be braced by round bars three-quarters-inch (3/4”) in thickness, properly hot-leaded or secured by four inches by three-eighths inch (4” x 3/8”) expansion bolts in brick or stone wall at a height of not less than six feet six inches (6’-6”) in the clear above the floor of the balcony. Strings of stairways shall be four inches by three-eighths inch (4” x 3/8”) wrought iron and shall rest on a bracket at the bottom and be bolted to a bracket at the top. Welded strings, other than shop welded, will not be accepted.
(4) Hand rails. Hand rails must be of wrought iron, three-quarters-inch (3/4”) round or one and one-half inches by three-eighths inch (1 1/2” x 3/8”) bar, well braced with intermediate braces not more than five feet (5’-0”) apart, and of the same size and material as the handrail, and secured to the strings with two (2) three-eighths inch (3/8”) rivets at each end and at each brace; or handrails may be secured to the bottom rail of the upper balcony and top rail of the lower balcony by two (2) three-eighths inch (3/8”) rivets at each end. On all fire-escapes hereafter erected double handrails must be provided for all stairways.
(1) Guides. All drop-ladders shall have guides provided with stops so that the ladders cannot be raised above the same. The drop-ladder must be suspended from a point directly over the opening in the rail of the balcony and arranged to slide in the guides so as to drop in position for use. All drop-ladders shall be provided with a shoe at the bottom. The guides shall be constructed of one and one-half inches by one and one-half inches by one-quarter inch (1 1/2” x 1 1/2” x 1/4”) angle iron, and shall be not less than twenty-one inches (21”) apart.
(2) Strings. Strings of drop-ladders must be one and one-half inches by three-eighths inch (1 1/2” x 3/8”) bar. No welded drop-ladders will be accepted unless shop welded.
(3) Rungs. The rungs must be five-eighths inch (5/8”) in thickness, not over twelve inches (12”) apart and must be riveted to the strings.
(1) On multiple dwellings with peak roofs having a pitch of more than twenty (20) degrees.
(2) Where fire-escapes are located on the fronts or in street courts of multiple dwellings facing upon the street. Where a multiple dwelling does not face upon the street, such as a multiple dwelling located at the rear of a lot upon which there is another building, every fire-escape on such multiple dwelling shall be provided with a stair or gooseneck ladder as required above, except where the roof of such building has a pitch of more than twenty (20) degrees as stated in exception A above. Except as provided in paragraph (1) and (2) above, every fire-escape on every hereafter erected or converted multiple dwelling, and every new fire-escape hereafter provided on every existing multiple dwelling, shall be provided with a regulation stairway from the top balcony to the roof when such buildings exceed four (4) stories in height. In such multiple dwellings exceeding four (4) stories in height when due to special structural conditions which would not permit the erection of a stair from the top balcony to the roof or where the height from the top balcony to the roof may be such as to make the installation of a stair impractical, the Department of Buildings may accept a gooseneck ladder in lieu of a regulation stairway. The top balcony of a fire-escape on every multiple dwelling not exceeding four (4) stories in height may be equipped with a gooseneck ladder.
(i) Construction and location of gooseneck ladders. The gooseneck ladder shall be fifteen inches (15”) wide and shall be so located that it will not obstruct egress from the apartment or apartments on the top floor. The effective opening between the side of any window and the string of gooseneck ladder shall be not less than twenty-four inches (24”). The gooseneck ladder must be fourteen inches (14”) from the front rail on existing balconies and twenty-one inches (21”) on balconies hereafter erected.
(ii) Strings. The gooseneck ladder must be constructed with one piece strings of two inch by one-half inch (2” x 1/2”) wrought iron. Strings must be directly secured to the brackets or secured to a two inch by one-half inch (2” x 1/2”) bar bearing on two (2) brackets and well secured to strings and brackets by three-eighths inch (3/8”) bolts or rivets. Strings must spread at the parapet wall or roof to give a passageway of eighteen inches (18”). Strings must be tied through the wall by braces going through the parapet immediately above the roof, or, in the absence of the parapet wall, the said braces must go through the wall immediately below the ceiling of the top floor and be secured by three-quarters-inch (3/4”) bolts and four inches by four inches by three-eighths-inch (4” x 4” x 3/8”) washers. The gooseneck ladder strings must extend thirty inches (30”) above the roof level. Where there is a parapet, a gateway at the roof level shall be provided. The strings of the gooseneck ladder must be secured to and braced at the roof.
(iii) Rungs. Rungs shall be of wrought iron five-eighths inch (5/8”) thick, spaced not more than twelve inches (12”) apart and shall be riveted through the strings. The top rung of all gooseneck ladders shall be level with the roof.
(1) Brackets. Horizontal members of brackets must be one and three-quarters inches by one-half inch (1 3/4” x 1/2”) wrought iron set on edge; one inch (1”) bolt end through a four inches by three-eighths inch (4” x 3/8”) iron plate, long enough to take in all brackets, secured to and bearing directly on the inside of the studs. Spaces between the studs behind such plates shall be filled in solidly with timber secured to the studs. The heel of bracket braces must rest against one and three-quarter inches by one and three-quarter inches by one-quarter inch (1 3/4” x 1 3/4” x 1/4”) angle iron extended across and well secured to studs.
(2) Top rails. Top rails shall be anchored by three-quarters inch (3/4”) bolt ends, through a four inch by three-eighths inch (4” x 3/8”) wrought iron plate spanning at least two (2) studs. Space behind plate and between studs shall be blocked solidly.
(3) Bottom rails. Bottom rails shall be secured to the siding in a substantial manner with two (2) one and one-quarter inch (1 1/4”) No. 14 wood screws, or may be secured to the brackets where practicable.
(4) Stairways. Stair braces shall be secured to the wall of the building by two (2) No. 14 wood screws.
(aa) Fire-towers. Fire-towers shall be constructed according to approved plans and applications filed with the Department of Buildings.
(bb) Egress: hotels and certain other class A and class B dwellings which are subject to the provisions of § 67, Multiple Dwelling Law.
(1) Exceptions. Any such multiple dwelling, altered or erected after April fifth, nineteen hundred forty-four, and which is required to conform to the provisions of articles one, two, three, four, five, eight, nine and eleven of Multiple Dwelling Law, shall not be required to conform to the provisions of paragraphs (1), (2), (3) and (4) of subdivision (bb) of this section.
(i) Except in fireproof class A multiple dwellings erected under plans filed after January first, nineteen hundred twenty-five, and which were completed before December thirty-one, nineteen hundred thirty-three, and except as otherwise provided in paragraph (4) of subdivision (bb) of this section, in every such dwelling three (3) or more stories in height there shall be from each story at least two (2) independent means of unobstructed egress located remote from each other and accessible to each room, apartment or suite.
(2) First means of egress. The first means of egress shall be an enclosed stair extending directly to a street, or to a yard, court or passageway affording continuous, safe and unobstructed access to a street, or by an enclosed stair leading to the entrance story, which story shall have direct access to a street. That area of the dwelling immediately above the street level and commonly known as the main floor, where the occupants are registered and the usual business of the dwelling is conducted, shall be considered a part of the entrance story; and a required stair terminating at such main floor or its mezzanine shall be deemed to terminate at the entrance story. An elevator or unenclosed escalator shall never be accepted as a required means of egress.
(3) Second means of egress. The second means of egress shall be by an additional enclosed stair conforming to the provisions of paragraph (2) of subdivision (bb) of this section, a fire-stair, a fire-tower or an outside fire-escape. In a non-fireproof dwelling when it is necessary to pass through a stair enclosure which may or may not be a required means of egress to reach a required means of egress, such stair enclosure and that part of the public hall or corridor leading thereto from a room, apartment or suite, shall be protected by one (1) or more sprinkler heads; in a fireproof dwelling only that part of the hall or corridor leading to such stair enclosure need be so protected.
(4) Required second means of egress – impractical. Where it is impractical in such existing dwellings to provide a second means of egress, the department may order additional alteration to the first means of egress and shafts, stairs and other vertical openings as the department may deem necessary to safeguard the occupants of the dwelling, may require the public hall providing access to the first means of egress to be equipped on each story with one (1) or more automatic sprinkler heads, and, in non-fireproof dwellings may also require automatic sprinkler heads in the stair which serves as the only means of egress.
(5) Public halls and corridors providing access to fire-escapes. Public halls and corridors providing access to fire-escapes, existing and new, are acceptable when a direct and uninterrupted line to travel to the fire-escape is provided. Public halls and corridors providing access to fire-escapes shall be fire-retarded or shall be equipped with automatic sprinkler heads. The fire-retarding and sprinkler installation shall be in conformity with the rules and regulations of this Department and as required by subdivision 3 of § 67 of the Multiple Dwelling Law. All openings which provide direct access to an existing fire-escape from a public hall or corridor shall be equipped with fireproof doors and assemblies with the doors self-closing or fireproof windows glazed with clear wire glass. Access to new fire-escapes from such halls or corridors shall be by means of fireproof doors and assemblies with doors self-closing. Doors providing access to fire-escapes from public halls or corridors may be glazed with clear wire glass.
(6) Fire-escapes – existing and new. Existing fire-escapes which are structurally strong and in good repair, having connecting stairways set at an angle or not more than sixty-five (65) degrees, may be accepted as a secondary means of egress. Except as otherwise required herein, new and existing fire-escapes shall be provided with a safe landing and the termination shall lead directly to a street or to a passageway which provides access to a street. When it is impractical to provide a termination for fire-escapes as specified in these rules, the Department may accept a termination from such fire-escapes which leads to safety.
(7) Supplementary means of egress. A stair, fire-stair, fire-tower, or fire-escape which is supplementary to the egress requirements of paragraphs (2), (3) and (4) of subdivision (bb) of this section, need not lead to the entrance story or to a street, or to a yard or a court which leads to a street, provided the means of egress therefrom is approved by the department. Fire-escapes which are supplementary to the required second means of egress, including fire-escapes of the inclined ladder and vertical ladder types, may remain on the dwelling if maintained in good order and repair, are structurally strong and safe and are provided with safe landing and the termination thereof leads to safety in a manner satisfactory to this Department.
(8) Signs – supplementary means of egress. Supplementary stairs, fire-stairs, fire-towers or fire-escapes which do not lead to the entrance story or to a street, or to a yard or court leading to a street, shall be clearly marked “NOT AN EXIT” in black letters at least four inches (4”) high on a yellow background and at the termination of each such stair, fire-stair, fire-tower or fire-escape, there shall be a directional sign indicating the nearest means of egress leading to a street. All signs shall be constructed, located and illuminated in a manner satisfactory to the department.
(9) Signs – general provisions. Every means of egress shall be indicated by a sign reading “EXIT” in red letters at least eight inches (8”) high on a white background, or vice versa, illuminated at all times during the day and night by a red light of at least twenty-five (25) watts or equivalent illumination. Such light shall be maintained in a keyless socket. On all stories where doors, openings or passageways giving access to any means of egress are not visible from all portions of such stories, directional signs shall be maintained in conspicuous locations, indicating in red on a white background, or vice versa, the direction of travel to the nearest means of egress. At least one sign shall be visible from the doorway of each room or suite of rooms. Existing signs and illumination may be accepted if, in the opinion of the department, such existing signs and illumination serve the intent and purpose of this subdivision.
(10) Stairs, fire-stairs and fire-towers. Stairs, fire-stairs and fire-towers hereafter provided shall be constructed according to plans and applications approved by the Department of Buildings.
(1) Arrangement. There shall be at least two (2) means of unobstructed egress from each lodging-house story, which shall be remote from each other. The first means of egress shall be to a street either directly or by an enclosed stair having unobstructed direct access thereto. If the story is above the entrance story, the second means of egress shall be by an outside fire-escape constructed in accordance with the provisions of section fifty-three, Multiple Dwelling Law, or by an additional enclosed stair. Such second means of egress shall be accessible without passing through the first means of egress.
(2) Doors and windows. All doors opening upon entrance halls, stair halls, other public halls or stairs, or elevator, dumbwaiter or other shafts, and the door assemblies, shall be fireproof with the doors made self-closing by a device approved by the department, and such doors shall not be held open by any device whatever. All openings on the course of a fire-escape shall be provided with such doors and assemblies or with fireproof windows and assemblies, with the windows self-closing and glazed with wire glass, such doors or windows and their assemblies to be acceptable to the department.
(3) Aisles. There shall be unobstructed aisles providing access to all required means of egress in all dormitories. Main aisles, approved as such by the department to provide adequate approaches to the required means of egress, shall be three feet (3’-0”) or more in width, except that no aisles need be more than two feet six inches (2’-6”) wide if it it is intersected at intervals of not more than fifty feet (50’-0”) by cross-over aisles at least three feet (3’-0”) wide leading to other aisles or to an approved means of egress.
(4) Signs. Every required means of egress from the lodging-house part of the dwelling shall be indicated by a sign reading “EXIT” in red letters at least eight inches (8”) high on a white background illuminated at all times during the day and night by a light of at least twenty-five (25) watts or equivalent illumination. Such light shall be maintained in a keyless socket. On all lodging-house stories where doors, openings, passageways or aisles are not visible from all portions of such stories, and in other parts of the dwelling which may be used in entering or leaving the lodging-house part and in which a similar need exists, signs with easily readable letters at least eight inches (8”) in height, and continuously and sufficiently illuminated by artificial light at all times when the natural light is not sufficient to make them easily readable, shall be maintained in conspicuous locations, indicating the direction of travel to the nearest means of egress. At least one (1) such sign shall be easily visible from the doorway of each cubicle.
(5) Roof egress. Access from the public hall at the top story to the roof shall be provided by means of a bulkhead or a scuttle acceptable to the department. Every such scuttle and the stair or ladder leading thereto shall be located within the stair enclosure.
(6) Persons accommodated. The number of persons accommodated on any story in a lodging-house shall not be greater than the sum of the following components:
(i) Twenty-two (22) persons for each full multiple of twenty-two inches (22”) in the smallest clear width of each means of egress approved by the department, other than a fire-escape.
(ii) Twenty persons (20) for each lawful fire-escape accessible from such story if it is above the entrance story.
(7) In view of the fact that § 66, subdivision 3 (formerly § 13, subdivision m), Multiple Dwelling Law, required lodging-houses to be sprinklered throughout, including public halls, the Department will accept existing double-rung ladder type fire-escapes on the condition that such fire-escapes are maintained in a good state of repair.
(dd) Ladders leading to roof scuttles. Ladders to roof scuttles as required under the provisions of§§ 187 and 233 of the Multiple Dwelling Law, shall be of incombustible material, not less than fifteen inches (15”) wide, with strings not less than one and one-half inches by three-eighths inch (1 1/2” x 3/8”), with five-eighths inch (5/8”) rungs not more than twelve inches (12”) apart. Strings of such ladders shall be secured at top and bottom and ladder must be so arranged as to permit sufficient toe hold.
Subchapter Q: List of All Violations Classified As Rent Impairing
§ 25-191 List of All Violations Classified as Rent Impairing.
The Department of Housing Preservation and Development has promulgated the following as a complete list of violations, currently classified as rent impairing under Multiple Dwelling Law, § 302-a. The list contains a brief description of the conditions constituting the violations, the section of the Multiple Dwelling Law or Housing Maintenance Code violated and the order number now assigned thereto by the Department of Rent and Housing Maintenance.
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| 51 | Discontinue the storage of combustible materials | § 12, M.D. Law |
|---|---|---|
| 69 | Discontinue use unless and until an approved application is filed and a certificate of occupancy is obtained | § 61, M.D. Law |
| 72 | Discontinue the manufacturing business | § 61, M.D. Law |
| 80 | Provide legal second means of egress and file application for approval before work | § 231, M.D. Law |
| 81 | Provide a sprinkler system or a legal second means of egress and file application for approval before doing this work | § 187, M.D. Law |
| 81B | Provide sprinkler heads in all class B rooms and file application for approval before doing this work | § 194, M.D. Law |
| 135 | Close the unnecessary opening in fire escape | §§ 53, 187, 231, M.D. Law |
| 142 | Brace and support balcony with suitable tie rods or suspension rods | §§ 53, 187, 231, M.D. Law |
| 176 | Provide means of egress from yard to street by a fireproof passageway for which application must be filed for approval, or by an unlocked door or gate in fence to the adjoining premises with consent of adjacent owner | §§ 53, 187, 231, M.D. Law |
| 181 | Provide a fireproof passageway from fire escapes at rear to street and file application for approval before doing this work | § 53, 187, 231, M.D. Law |
| 188 | Properly fire retard in accordance with the rules and regulations of this department the cellar ceiling | § 185, 240, M.D. Law |
| 209 | Remove door from closet leading to scuttle opening in roof | § 233, M.D. Law |
| 213 | Seal with fire retarding material or provide with fireproof self-closing door and assembly the opening leading from store to public hall | § 61, M.D. Law |
| 214 | Remove sash in partition between rooms and public hall and seal opening with material similar to adjacent wall | § 189(5), M.D. Law |
| 222 | Provide under completed permit, a proper enclosure with fireproof self-closing doors and assemblies at the top and the bottom of the cellar stairs | § 242, M.D. Law |
| 494 | Requires the filing of plans and compliance with § 67 of the Multiple Dwelling Law for heretofore erected existing multiple dwellings | § 4, 8, 25, 67, M.D. Law |
| 503 | Make safe by properly repairing the structural defect | § 27-2005 |
| 507 | Repair the roof so that it will not leak | § 27-2005 |
| 511 | Repair and operate the gas appliance so as to prevent carbon monoxide | § 27-2005 |
| 512 | Fire escape defective. Replace with new the broken, defective and/or missing | § 27-2005 |
| 513 | Fire escape defective. Adjust the drop-ladder so that it will slide easily in the guide rods | § 27-2005 |
| 514 | Fire escape defective. Properly secure | § 27-2005 |
| 516 | Fire escape defective. Reset the braces of the brackets so that they will bear against the wall | § 27-2005 |
| 517 | Fire escape defective. Remove and replace with new the broken and defective bracket and leave all anchorages uncovered for inspection | § 27-2005 |
| 518 | Fire escape defective. Replace with 2 x 1/2 inch iron or bar at foot of gooseneck ladder | § 27-2005 |
| 519 | Fire escape defective. Remove or make safe the additional fire escape | § 27-2005 |
| 520 | Fire escape defective. Remove the additional dangerous, inadequate fire escape | § 27-2005 |
| 523 | Fire escape defective. Restore egress by locking device and arrange to open readily the gate in fence at lot line | §§ 27-2005, 27-2007 |
| 524 | Fire egress defective. Remove the obstruction in fireproof passageway | §§ 27-2005, 27-2007 |
| 526 | Remove the illegal fastening at roof, bulkhead door, scuttle cover, etc. | §§ 27-2005, 27-2007 |
| 538 | Remove all encumbrances | §§ 27-2005, 27-2007 |
| 551 | Cleanse and disinfect to the satisfaction of this department after removing the sewage, etc. | §§ 27-2010, 27-2011, 27-2012 |
| 567 | Abate the nuisance consisting of rodents | § 27-2018 |
| 576 | Provide adequate supply of cold water for the fixtures | § 27-2024 |
| 577 | Provide adequate supply of hot water for the fixtures | § 27-2024 |
| 578 | Repair the leaky and/or defective water supply pipe | § 27-2026 |
| 580 | Provide adequate tight cover made of metal or wood covered with metal for tank supply tank on roof | § 27-2024 |
| 581 | Empty and thoroughly cleanse the interior sides and bottom of water supply tank on roof | § 27-2024 |
| 586 | Provide a separate house sewer and house drain properly connected to plumbing system of the building and to main sewer and file an application for approval before doing this work | § 27-2026 |
| 587 | Remove cesspool and all sewage saturated earth, disinfect site and fill with fresh earth. Connect plumbing system of building to main sewer by installing house sewer and drain. File application for approval before doing this work | § 27-2026 |
| 590 | Requires a separate water closet for each family within old-law tenement buildings | § 27-2066 |
| 592 | Replace with new the defective flush pipe of water closet | § 27-2026 |
| 593 | Repair the flushing apparatus and maintain same so as to flush effectively the water closet | § 27-2026 |
| 594 | Repair leaky water closet flush pipe connection | § 27-2026 |
| 595 | Remove all obstructions from water closet | § 27-2026 |
| 596 | Replace the broken or defective plumbing facility | § 27-2026 |
| 599 | Repair by closing so as to be gas-tight all openings | § 27-2026 |
| 600 | Provide a proper screw cap for the clean-out of trap | § 27-2026 |
| 646 | Properly close and seal opening as described below | § 27-2026 |
| 647 | Properly close and seat the hub opening after removing the disused broken or defective | § 27-2026 |
| 648 | Properly ream out, tap and plug, with screw plugs, the holes | § 27-2026 |
| 649 | Remove all obstructions and repair all defects | § 27-2026 |
| 665 | Install central heating system or, if lawfully feasible, individual space heaters, and file an application for approval before doing work | § 27-2028 |
| 666 | Provide an adequate supply of heat for the apartment | § 27-2029 |
| 668 | Repair and operate the heating appliance so as to prevent coal gas | § 27-2030 |
| 669 | Install central hot water system or, if feasible individual hot water heaters and file an application for approval before doing work | § 27-2031 |
| 670 | Provide hot water at all hot water fixtures | § 27-2031 |
| 675 | Requires discontinuance of illegal space or hot water heater or obtain approval for use | §§ 27-2032, 27-2034 |
| 677 | Discontinue the use of the gas fired refrigerator | § 27-2035 |
| 680 | Provide adequate lighting for the laundry | §§ 27-2037, 27-2039 |
| 682 | Provide adequate lighting for public halls and stairs, etc. | § 27-2038 |
| 695 | Remove unlawful sash in partition separating apartment from public hall and seal opening with fire retarded material | § 27-2044 |
| 696 | Properly fire-retarded in accordance with the rules and regulations of this department, the cellar ceiling | § 27-2044 |
| 710 | File with the borough chief inspector of this department a sprinkler test report for the current year | § 27-2050 |
| 714 | Seal in open position the O.S.Y. valve of the sprinkler system in accordance with the rules and regulations of this department | § 27-2050 |
| 716 | Provide a manager who shall be responsible for the conduct, operation and maintenance of premises and who shall live on premises or be regularly present therein | § 27-2051 |
| 721 | Provide dwelling with a janitor or responsible person or janitorial service | § 27-2053 |
| 741 | Discontinue unlawful cooking space or file plans and application with this department to legalize same, if lawfully feasible | § 27-2070 |
| 742 | Provide an adequate supply of gas to the fixtures | § 27-2070 |
| 753 | Requires the discontinuance of unlawful use for single room occupancy | §§ 27-2077, 27-2078 |
| 768 | Requires a certificate of occupancy be obtained before a vacant or vacated building can be reoccupied for living purposes | § 27-2089 |
| 772 | File with this department a registration and occupancy statement of building | § 27-2098 |
| 773 | File with this department a telephone number at which the owner or a responsible person can be reached at all hours in the event of an emergency | § 27-2098 |
| 774 | File with the department a written designation for change in managing agent of building | § 27-2101 |
| 775 | File with the department registration statement for change of ownership of building | § 27-2099 |
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Subchapter R: Collection, Retention and Disposal of Garbage, Rubbish and Refuse In Multiple Dwellings
§ 25-201 Collection, Retention and Disposal of Garbage, Rubbish and Refuse in Multiple Dwellings.
(a) The owner, lessee or person in charge of every multiple dwelling shall keep upon the premises sufficient, proper and separate metal receptacles for the deposit of garbage, rubbish and other waste materials of such capacity and construction as provided for in these rules.
(1) Where dumbwaiter service is provided all garbage, rubbish, refuse and other waste matter in the building shall be collected at least once daily and deposited in separate metal receptacles. These receptacles shall be provided with tight fitting covers and shall be located in the cellar, basement or other lowest story except when placed outside the building for regular collection by the Department of Sanitation. Such receptacles shall always be kept covered with tight fitting covers. They shall be regularly disinfected and kept in a clean sanitary condition.
(1) Between the hours of 7 a.m. and 9 a.m. or between 6 p.m. and 8 p.m. at least two metal receptacles of such capacities as are provided for in these rules shall be placed within the building so as to be accessible to every occupant therein. Such receptacles shall not be placed so as to obstruct egress or create a nuisance. The owner shall notify all tenants concerning location of receptacles and hours of collection.
(i) Occupants of the respective floors shall deposit all garbage, rubbish and refuse only in the receptacles referred to in the foregoing rule, and during the hours indicated therein. Throwing garbage or other waste matter out of windows or depositing same in any place other than in receptacles provided for in these rules is forbidden.
(ii) The receptacles referred to in paragraph (1) of subdivision (b) of this section shall be promptly removed from their locations upon the expiration of the period indicated and taken to the cellar, basement or other lowest story and there disposed of in accordance with paragraph (1) of subdivision (a) of this section.
(iii) All receptacles referred to in paragraph (1) of subdivision (b) of this section shall be provided with tight fitting covers and shall be maintained in a sanitary condition as provided in paragraph (1) of subdivision (a) of this section. Capacity of receptacles shall be based upon an allowance of at least one receptacle of a two cubic foot content for every five living rooms.
(iv) Newspapers, periodicals, magazines, paper bags, or similar waste paper shall first be tightly wrapped in small bundles and then placed for collection at the location and during the hours indicated in paragraph (1) of subdivision (b) of this section. Throwing loose paper into public halls, shafts, courts or yards is prohibited.
Subchapter S: Construction and Maintenance of Refuse Chutes and Refuse Rooms
§ 25-211 Construction and Maintenance of Refuse Chutes and Refuse Rooms.
(a) Refuse chute enclosures. Refuse chutes used for conveyance of garbage and rubbish from upper floors of a building to a cellar or other location shall be constructed with an enclosure of brick masonry at least eight inches in thickness or of reinforced concrete at least six inches in thickness, except as otherwise provided in this section.
Subchapter T: Obstruction of Fire Exits In Multiple Dwellings
§ 25-221 Obstruction of Exits Used as Means of Egress in Case of Fire in Various Multiple Dwellings.
(a) In every multiple dwelling, public halls, stairs, corridors and passageways and every part thereof used as means of egress shall be kept free and clear of encumbrances at all times in order that free, safe and unobstructed egress to the outside of the building may be maintained during all hours of the day and night.
Subchapter U: Surfaces of Walls and Ceilings In Multiple Dwellings
§ 25-231 Surfaces of Walls and Ceilings in Multiple Dwellings.
This department will require that any part of a wall or ceiling required to be replastered or repainted by §§ 78 and 80 of the Multiple Dwelling Law shall be so painted that the entire wall or ceiling is of a uniform color. Dark colors which tend to diminish the natural light within a dwelling shall not be accepted as meeting the requirements of § 80, subdivision 4, of the Multiple Dwelling Law.
Subchapter V: Posting of Certificate of Inspection Visits In Multiple Dwellings
§ 25-241 Posting of Certificate of Inspection Visits in Multiple Dwellings.
(a) In multiple dwellings consisting of more than six families or whenever a certificate of inspection visits is posted, a certificate frame shall be provided inside the building in a conspicuous place within view of the place at which mail is delivered to the building and in a place readily accessible for signature by Office of Code Enforcement inspectors.
Subchapter W: Sealing and Protection of Vacant and Unguarded Buildings
§ 25-251 Sealing and Protection of Vacant and Unguarded Buildings.
(a) Where buildings are vacant, unguarded, open to unauthorized entry and are required to be sealed by the provisions of an unsafe building order, they shall be sealed and protected in the following manner:
(1) Buildings with exterior walls constructed of brick or other masonry.
(i) All exterior openings including door openings, in the cellar, in the story at street level, in the second story above street level, on the course of a fire escape, or which are less than 12 feet measured horizontally from an opening in an adjoining building, shall be sealed with concrete block. One door opening, readily visible from the street, may, at the discretion of the owner, be sealed with a door. The door shall be of solid wood covered with 26 gauge metal or constructed of 1-inch by 6-inch tongue and groove boards with cross and diagonal battens of 1-inch boards and covered on the outside with 26 U.S. gauge galvanized steel with edging turned over and nailed with flat heads galvanized nails. The door shall be hung in such a manner that no screws are exposed on the outside of the door on either the hinges or the hasps. Hinges shall not have removable hinge pins. Two hasps and locks shall be provided, located so as to divide the height of the door in equal sections.
(ii) Concrete block shall conform to the provisions of Reference Standard RS-10 of the Administrative Code.
(iii) All door and window frames shall be removed before concrete blocks are installed. Brickwork which new concrete blocks will abut, shall be cleaned and thoroughly wetted before blocks are installed.
(iv) Doors and windows, not exceeding 6 feet in width, shall be sealed with concrete block at least 4 inches in thickness. Openings exceeding 6 feet in width shall be sealed with concrete blocks at least 8 inches in thickness.
(v) Concrete blocks shall be laid in masonry cement mortar with a mix of not more than three parts of sand for each part of masonry cement by volume. Joints in masonry shall be broken. Masonry cement shall conform to the provisions of Reference Standard RS-10. Joints on the exterior faces shall be struck and shall be provided with a smooth finish.
(vi) Openings in masonry walls, which are not required to be enclosed with concrete block in accordance with subparagraph (i) of paragraph (1) of this subdivision, shall be sealed with boards covered by sheet metal in the manner specified in paragraph (4) of this subdivision.
(2) Buildings with exterior walls constructed of material other than masonry.
(i) All exterior openings in walls of buildings which do not have walls constructed of masonry, shall be sealed with boards covered by sheet metal in the manner specified in paragraph (a)(4) of this subdivision.
(3) Openings in roofs shall be sealed as follows:
(i) Roof bulkheads, skylights, ventilating equipment and similar structures shall be completely removed. Openings remaining after removal of structures shall be sealed with 1-inch tongue and groove boards, not less than 6 inches in nominal width, laid on 3-inch by 6-inch joists, not more than 16 inches on center. Joists shall be secured to the roof timbers framed about the openings in a sound and secure manner. Boards shall be covered with roofing to provide a watertight durable cover.
(4) Sealing of openings by boards covered with sheet metal, where permitted under subparagraph (vi) of paragraph (l) in masonry walls and under subparagraph (i) of paragraph (4) in walls of material other than masonry, shall be done in the following manner:
(i) Boards shall be 1-inch by 6-inch cut to a length to fit the height and width of the wall opening, with a cross and diagonal battens of l-inch boards, on the inside, or shall be exterior grade plywood, at least 5/8 inches in thickness, cut to fit the wall opening on the inner side of the window frame.
(ii) Outside or exposed surfaces of the boards or plywood shall be covered with No. 26 U.S. gauge galvanized steel, with edging turned over and nailed with flat head galvanized nails.
(iii) Boards shall be nailed to the sides, top and bottom of the window frame with 16-penny, 3 1/2-inch nails, where the window frame is in good, firm condition. Where the window frame is loose or defective, the boards shall be securely fastened to the brick wall.
(5) Utilities and service lines. All gas, electric, water, steam and other service lines to the building except sewer lines shall be disconnected and certifications to that effect by the respective utility companies or city agencies having jurisdiction shall be filed with the department.
(6) Prior to the completion of required sealing of exterior openings as detailed pursuant to paragraphs (1), (2), (3) and (4), above, all combustible debris, rubbish, abandoned furniture or materials capable of supporting combustion shall be removed from the premises.
§ 26-01 Definitions.
Appeals Committee. “Appeals Committee” shall mean the Commercial Rent Appeals Committee established pursuant to these rules.
City-owned building. “City-owned building” shall mean any building owned by the City of New York and assigned to HPD for management.
Committee. “Committee” shall mean the Commercial Rent Committee established pursuant to these rules.
Cost of Operation. “Cost of Operation” shall mean the amount, as determined by HPD, from time to time, that represents HPD’s cost of maintenance of such units and making them available for commercial use.
DPM. “DPM” shall mean the Division of Property Management of the Office of Property Management of the Department of Housing Preservation and Development.
DRO. “DRO” shall mean the Division of Relocation Operations of the Office of Property Management of the Department of Housing Preservation and Development.
Fair Market Rent (FMR). “Fair Market Rent” (“FMR”) shall mean the rent that would be paid for the commercial unit, in a bona fide arms length transaction, at the highest and best use of the commercial unit, but in no event shall fair market rent be less than the cost of operation or the current rent.
Governmental Tenant. “Governmental Tenant” shall mean a tenant who is a Community Board, Municipal Hospital Advisory Board, Mayoral governmental agency, city professional employee association, or any board, commission, or advisory body established by the City Charter, or Executive Order of the Mayor.
Qualified Not-For-Profit Organization. “Qualified Not-For-Profit Organization” shall mean an organization:
Rules. “Rules” shall mean these rules.
Sale of the Business Occupying a Commercial Unit. “Sale of the Business Occupying a Commercial Unit” shall occur when a substantial portion of the assets, shares of stocks, partnership interest or other significant indicia of ownership or control passes from the existing tenant, or any principal of the existing tenant, to any other person or entity.
Tenant. “Tenant” shall mean authorized commercial tenant of record. Occupants such as squatters and licensees are not tenants of record.
§ 26-02 General.
The Department of Housing Preservation and Development of the City of New York (HPD) is responsible for managing, rehabilitating, and disposing of buildings owned by the City of New York that were acquired through tax foreclosure and other means. HPD recognizes that it has not increased rents to commercial tenants on a regular basis and the result is that some businesses pay less to HPD than the cost of similar space leased by competing businesses, thus providing such commercial tenants an unfair competitive benefit.
§ 26-03 Policy.
It is the policy and intention of HPD that commercial units within city-owned buildings be rented at fair market rents, and that commercial units rented to qualified not-for-profit organizations be rented at 50 percent of fair market rent. However, it is also HPD’s policy to minimize the impact of rent restructuring on current tenants, by phasing in rent increases as set forth in these rules.
§ 26-04 Coverage.
These Rules govern the procedures for the periodic review and resetting of rents in leased commercial units under the jurisdiction of the Division of Property Management and the Division of Relocation Operations.
§ 26-05 Commercial Rent Restructuring Committee.
There shall be a Commercial Rent Restructuring Committee consisting of two persons designated by the Assistant Commissioner of Property Management, and one person designated by the Assistant Commissioner of Relocation Operations.
§ 26-06 Periodic Review.
The commercial rent for every leased commercial unit under the jurisdiction of DPM and DRO shall be reviewed not more than once every year. Such review shall be conducted by the Commercial Rent Restructuring Committee.
§ 26-07 New Rent.
The Commercial Rent Restructuring Committee shall determine the fair market rent of each commercial tenant, other than governmental tenants or community gardens, as determined by HPD. Such fair market rent shall be the new rent for the commercial unit. The new rent for qualified not-for-profit organizations shall be 50 percent of the fair market rent. The rent for governmental tenants shall be the cost of operation of the unit.
§ 26-08 Phase-In of New Rents of For-Profit Tenants.
(a) Where the Commercial Rent Restructuring Committee determines that the difference between the new rent and the current rent of a commercial unit is an increase of more than 15 percent of the current rent, the Committee shall direct that the new rent be phased in over a period of not more than five (5) years. The current rent of such unit shall be increased each year until the rent shall equal the new rent, but each such increase shall be no more than 15 percent of the prior year's rent for each of the first four years. On the fourth anniversary of the Commercial Rent Restructuring Committee's implementation of the rent increase, the remainder of any difference between the rent then being charged and the new rent shall be the amount of the increase for the final year of the phase-in period.
(1) 25 percent of FMR or current rent plus 15 percent, whichever is more, for a commercial unit of 1,000 square feet or more; or
(2) $300 or FMR, whichever is less, for a commercial unit of less than 1,000 square feet.
§ 26-09 Phase-In of New Rents of Not-For-Profit Tenants.
(a) Where the Commercial Rent Restructuring Committee determines that the difference between the new rent and the current rent of a commercial unit whose tenant is a qualified not-for-profit organization is an increase of more than 10 percent of the current rent, the Committee shall direct that the new rent be phased in. The current rent of such unit shall be increased each year until the rent shall equal the new rent, but each such increase shall be no more than 10 percent of the prior year's rent for each of the first five years. On the fifth anniversary of the Commercial Rent Restructuring Committee's implementation of the rent increase, the rent shall increase by 15 percent each year until the rent charged shall equal the new rent.
§ 26-10 Reconsideration of Rent During Phase-In Period.
Where a tenant has received a rent increase eligible for a phase-in under 28 RCNY § 26-08, the Commercial Rent Restructuring Committee may not review such rent again until the phase-in provided for under 28 RCNY § 26-08 has been completed or five years have elapsed since the commencement of a phase-in.
§ 26-11 Termination of Phase-In.
If there is a sale of the business occupying a commercial unit, or a termination of the tenancy, any previously determined phase-in under 28 RCNY § 26-08 or 28 RCNY § 26-09 shall terminate immediately and the rent for the unit shall be the fair market rent as determined by HPD’s staff, or by auction.
§ 26-12 30-Day Notice.
The Commercial Rent Restructuring Committee shall notify the tenant of the new rent, and of the phase-in schedule, if any, at least 30 days prior to the effective date of such new rent.
§ 26-13 Appeal.
(a) There shall be a Commercial Rent Restructuring Appeals Committee which shall consist of the Assistant Commissioner of the Division of Property Management, the Assistant Commissioner of the Division of Relocation Operations and one person designated by HPD's General Counsel. An Assistant Commissioner may be represented on the Appeals Committee by an individual designated by such Assistant Commissioner who reports directly to such Assistant Commissioner, provided that such designee did not also serve as a designee in the Commercial Rent Restructuring Committee's decision to set the rent which is appealed from.
§ 26-14 Postponement of Effective Date.
The Appeals Committee shall consider objections promptly. If the Appeals Committee is not scheduled to convene within the next 30 days, the Assistant Commissioner of the Division which has jurisdiction over the commercial unit may postpone the effective date of the new rent until after the next scheduled Appeals Committee meeting.
§ 26-15 Final Determination.
The determination by the Appeals Committee of any objections by a tenant to a rent restructuring shall be final.
Subchapter A: Tripartite General Order No. 1: Approval of Specifications For Paper Bags Used For Containing Uncompacted Refuse and Incinerator Residue; Approval of Specifications For Plastic Bags Used For Containing Uncompacted Refuse; and Approval of Specifications For Containers Used For Containing Compacted Refuse
§ 27-01 Statement of Policy and Intent.
To improve the environment and to improve refuse containment and collection operations, the use of paper bags for containing uncompacted refuse and incinerator residue should be permitted; the use of plastic bags for containing uncompacted refuse should be permitted and the use of containers for containing compacted refuse should be permitted. Accordingly pursuant to Local Law 11 of the Laws of 1971 and to 24 RCNY Health Code § 13-1.11, the Department of Sanitation and the Department of Housing Preservation and Development, and the Department of Health hereby approve the specifications set forth in 28 RCNY § 27-02 below for paper bags for containing uncompacted refuse and incinerator residue; hereby approve the specifications set forth in 28 RCNY § 27-03 below for plastic bags for containing uncompacted refuse; and hereby approve the specifications set forth in 28 RCNY § 27-04 below for containers for containing compacted refuse.
§ 27-02 Specifications For Paper Bags Used For Containing Uncompacted Refuse and Incinerator Residue.
(a) Substance: Paper bags shall be fabricated from wet-strength* kraft paper, wholly extensible or wholly non-extensible or equivalent.
Table IMinimum Tensile Energy Absorption – Extensible
| Dry | Wet | |
|---|---|---|
| Cross Direction of Paper (Single-ply or Multi-ply) | 9.3 ft. lb./sq. ft. | 2.7 ft.lb./sq. ft. |
| Cross Direction Plus Machine Direction of Paper(Single-ply or Multi-ply) | 30.8 ft. lb./sq. ft. | Not specified |
~
Table IIMinimum Tensile Breaking Strengths – Non-Extensible
| Dry | Wet | |
|---|---|---|
| Cross Direction of Paper (Single-ply or Multi-ply) | 34.0 lbs./in. width | 9.0 lbs./in. width |
| Cross Direction Plus Machine Direction of Paper(Single-ply or Multi-ply) | 95.0 lbs./in. width | Not specified |
~
The method of testing for nominal and minimum basis weight shall be the Tappi Standard Method T-410 which shall be conducted in accordance with Section 4 of Federal Specification UU-S-48-E. Tensile breaking strength and tensile energy absorption tests shall be performed according to Tappi Standard Methods T-404, T-456, and T-494. Wet tensile breaking strength and tensile energy absorption are to be determined by using one inch width specimens that have been immersed in water for two hours at 73 degrees Fahrenheit 3.5 degrees Fahrenheit.
Cubic Foot Capacity = [T-0.4 (F+G)] [(F+G)] 5425
Where: T = Inside Tube Tube Length of Bag (in inches)
F = Inside Face Width of Bag (in inches)
G = Inside Gusset Width of Bag (in inches)
No restrictions are made on bag dimensions provided that they do not deviate from the prescribed dimensions by more than the following tolerances:
Width: ±3/16 inch
Bottom: ±3/16 inch
Length: ±1/4 inch
Each bag and all bag packaging shall have marked thereon the name and address of the principal place of business of the manufacturer or distributor of the same and a code identifying the date and location of bag manufacture.
Each bag and retail package of bags shall be prominently marked with the words, “NOT LAWFUL FOR COMPACTED WASTE IN NEW YORK CITY”, in block letters not less than 1/4 inch high.
§ 27-03 Specifications for Plastic Bags Used for Containing Uncompacted Refuse.
(a) Substance: The film from which plastic bags are constructed shall be manufactured from polyethylene or ethylene copolymer resin.
§ 27-04 Specifications for Containers Used for Containing Compacted Refuse.
(a) As used herein the term "container" shall mean any container used for the storage of compacted refuse, including, but not limited to any such bag, sack, box, bin, barrel, tub, or tube.
(1) Containers shall be capable of containing refuse with an output density range of from 450 pounds to 700 pounds per cubic yard (16.7 pounds to 25.9 pounds per cubic foot) unless specific approval of an alternate capability is made by the Department of Sanitation.
(2) Containers shall during filling in the course of evaluation not allow tears or punctures in excess of one (1) inch in more than ten (10) percent of observed samples, and shall during handling in the course of evaluation not allow tears or punctures in excess of one (1) inch in more that ten (10) percent of samples.
(3) Containers shall not allow their contents to spill from tears or punctures.
(4) Returnable containers shall be capable of easily discharging their contents by gravity.
(5) Containers shall be of unit construction when supplied to users and shall not require additional components to be considered ready for use, unless specific exception to this requirement is given by the Department of Sanitation pursuant to 28 RCNY § 27-04(b) above.
§ 27-05 Requirements for Employment of Bags and Containers Meeting Specifications Set Out in 28 RCNY §§ 27-02, 27-03 and 27-04.
(a) Bags and containers which meet the specifications approved under this order:
(1) shall not be filled so as to prevent the effective closure thereof:
(2) shall not weigh more than 100 pounds when filled:
(3) shall be in such condition as to hold their contents without leakage:
(4) shall be effectively closed:
(5) when stored in the building shall be kept in a metal receptacle or rat-proof and fire-proof room:
(6) when awaiting collection outside the building, shall be removed from any metal receptacle and shall be neatly stacked in front of such building.
§ 27-06 Amendment and Repeal.
This order may be amended or repealed only upon joint order of the Departments of Sanitation, Housing Preservation and Development and Health pursuant to Section 1043 of the City Charter of the City of New York.
Subchapter B: Tripartite General Order No. 2: Approval of Specifications For Waste Containerization Systems
§ 27-11 Purpose and Scope.
The Departments of Sanitation, Housing Preservation and Development and Health find that the use of systems for the disposal of waste that utilize large containers which are mechanically lifted and emptied into, loaded onto or attached to collection vehicles (hereinafter “waste containerization systems”) will tend to improve waste containment and increase the efficiency of waste collection operations, and accordingly approve as to specifications, pursuant to § 27-2021 of the Housing Maintenance [Administrative] Code, any waste containerization system that meets the specifications set forth below. Nothing contained in this order shall constitute an agreement by the Department of Sanitation to provide hoist compactor, hoist-fitted chassis, roll-on roll-off or any other specialized service to any person using containers covered by this order. Such service shall continue to be available only by contract with the Department of Sanitation and subject to such conditions as the Department of Sanitation may impose.
§ 27-12 Specifications for Waste Containerization Systems.
(a) The owner or other person in charge of the premise served by a waste containerization system (hereinafter the "premises") shall maintain in a safe, clean, odor-free and properly operating condition all containers and other equipment kept on such premises in connection with the operation of such system and shall keep the place of storage for the containers safe, clean and odor-free at all times. There shall be kept on the premises a hose and brush or a steam cleaner and all other necessary equipment to properly clean the containers, unless such containers are regularly cleaned at a location off the premises and such equipment is not required by any other law or regulation. Each container shall be cleaned on a concrete or other paved surface properly drained into the sewer or a septic system. Such surface and drainage system shall be maintained in a safe, clean, odor-free and properly operating condition.
(1) be made of continuously welded steel with all welds and edges ground smooth;
(2) be capable of holding 700 pounds of waste per cubic yard of capacity, when at rest and during loading and unloading, without permanent distortion;
(3) have adequate provision for reinforcement, stiffening and protection at points of high stress or wear;
(4) hold liquids without leaking and be equipped with a drain plug at the bottom on one end; and
(5) have heavy duty skids or rollers or other devices to keep the bottom of the container off the ground and reduce wear when it is moved.
(1) be attached by means of heavy duty hinges;
(2) be equipped with counterbalance springs whenever necessary to prevent destructive or dangerous overswinging;
(3) be reinforced to prevent bending and warping; and
(4) completely seal the containers to prevent rodents, insects and other pests from entering.
§ 27-13 Amendment or Repeal.
This order may be amended or repealed only upon joint order of the Department of Health, the Department of Housing Preservation and Development and the Department of Sanitation pursuant to § 1043 of the New York City Charter. § 51-66 effective August 29, 1973.
§ 28-01 General Provisions.
(a) Definitions.
Action. “Action” shall mean the Agency’s selection of a community group, approval of a project, or execution of an EDA.
Agency. “Agency” shall mean the city’s Department of Housing Preservation and Development and any successor agency, or its designee.
Agreements. “Agreements” shall mean escrow agreements, syndication agreements, NSA syndication agreements and any other agreements through which developers are obligated to provide syndication funds.
Applicant. “Applicant” shall mean any entity applying for designation as a community group.
CAPA. “CAPA” shall mean the City Administrative Procedure Act set forth in §§ 1041 et seq. of the city charter, as amended from time to time.
City. “City” shall mean city of New York.
Commissioner. “Commissioner” shall mean the commissioner of the agency or his or her designee.
Community Group. “Community Group” shall mean a locally-based not-for-profit corporation formed pursuant to the not-for-profit corporation law of the State of New York which has been selected by the agency to receive syndication funds to perform a project.
Comptroller. “Comptroller” shall mean the comptroller of the city.
Developer. “Developer” shall mean the business entity which received certain tax benefits as general partner of the business entity which developed a development.
Development. “Development” shall mean a housing development in New York City funded pursuant to § 8 of the United States Housing Act of 1937 (42 U.S.C. § 1437f) and rules promulgated pursuant thereto by the United States Department of Housing and Urban Development.
EDA. “EDA” shall mean an escrow disbursement agreement by which syndication funds are distributed to a community group in order to fund eligible improvements as approved by the agency.
Eligible Activities. “Eligible Activities” shall mean those improvements or services approved by the agency to be performed by community groups with syndication funds, as set forth more fully in the scope of work of the EDA for each such project.
Encumbered Funds. “Encumbered funds” shall mean syndication funds which have been appropriated or otherwise set aside to be used for a project pursuant to a currently valid and binding EDA.
EO Clearance. “EO clearance” shall mean that (i) the community group and, if required by the agency, its principals (and, where the agency deems such additional review to be appropriate, the contractors retained by such community group and all of their respective principals) have completed, executed, and submitted the required forms to and attended any required meetings with the agency’s office of equal opportunity, and (ii) the agency’s office of equal opportunity, after review of such information and any other available information, has made no finding of noncompliance with the applicable laws regarding equal opportunity, labor compensation, locally based enterprises, and other matters monitored by the agency’s office of equal opportunity.
Escrow Account. “Escrow account” shall mean one or more escrow accounts administered by the city to retain the syndication funds until distribution.
Escrow Agreement. “Escrow agreement” shall mean an instrument by which some developers were required to provide syndication funds.
Guidelines. “Guidelines” shall mean the § 8 syndication sharing program guidelines governing the program, which were approved by the city’s board of estimate on September 19, 1985 (Cal. No. 644) and thereafter annually renewed until 1990. These rules replace and supersede the guidelines, which expired by their own terms on December 31, 1990.
IG Clearance. “IG clearance” shall mean that (i) the community group and, if required by the agency, its principals (and, where the agency deems such additional review to be appropriate, the contractors retained by such community group and all of their respective principals) have completed, executed, and submitted the required forms to and attended any required meetings with the agency and/or the department of investigation’s office of the inspector general, and (ii)the agency and/or the department of investigation’s office of the inspector general, after review of such information and any other available information, has made no findings of derogatory information, which indicates that the city should not do business with the community group, or if applicable, its contractors.
Laws. “Laws” shall mean any applicable laws, ordinances, orders, rules, and regulations promulgated by any local, state, or federal authority having jurisdiction over the subject matter thereof, as amended from time to time.
NSA Syndication Agreement. “NSA syndication agreement” shall mean an instrument by which some developers were required to provide syndication funds.
Program. “Program” shall mean the tax syndication sharing program governed by these rules.
Project. “Project” shall mean the activities set forth in the scope of work of an EDA which are to be undertaken by a community group using syndication funds.
Public Hearing. “Public hearing” shall mean a meeting convened by the agency in accordance with 28 RCNY § 28-06(c) at which interested persons shall be afforded the opportunity to comment upon the community group(s), project(s), and EDA(s) which are the subject of one or more actions proposed by the agency. A public hearing shall be held only if the agency determines, based upon the written comments received by it in accordance with 28 RCNY § 28-06(b) that further consideration of the proposed action(s) is required.
RFP. “RFP” shall mean a request for proposals.
Rules. “Rules” shall mean these rules, which replace and supersede the guidelines.
Syndication Agreement. “Syndication agreement” shall mean an instrument by which some developers were required to provide syndication funds.
Syndication Funds. “Syndication funds” shall mean the funds which the agreements required developers to provide from either (i) shares of the proceeds of the sale or syndication of the developments, or (ii) any equivalent amounts (where developers elected to retain rather than sell or syndicate development equity).
Unencumbered Funds. “Unencumbered funds” shall mean syndication funds in an escrow account which have not been appropriated or otherwise set aside to be used for a project pursuant to a currently valid and binding EDA, including, but not limited to, funds which never were the subject of an EDA and funds which were the subject of an EDA which has been terminated.
(1) promoting the preservation and rehabilitation of existing residential housing,
(2) eliminating conditions in existing residential housing which are unsafe or detrimental to health,
(3) facilitating the creation and maintenance of open spaces, parks, playgrounds, and trees in neighborhoods,
(4) providing technical assistance and support to community groups in creating and implementing projects,
(5) furthering neighborhood preservation,
(6) administering and maximizing revenue upon the accounts containing syndication funds,
(7) minimizing city expenses, and
(8) otherwise furthering the best interest of the city.
(1) General. The agency may take actions and otherwise act for the purposes of an in accordance with the procedures described in these rules.
(2) Escrow account. The agency or the city may retain syndication funds in an escrow account pending disbursement. The provisions regarding the escrow account are contained in 28 RCNY § 28-02.
(3) Selection of community groups. The agency may from time to time select community groups to receive syndication funds through any competitive or non-competitive process authorized by these rules or applicable laws which the agency deems to be in the best interest of the city. The provisions regarding the selection of community groups are contained in 28 RCNY § 28-03.
(4) Conditional designation. The agency may conditionally designate applicants as community groups, and may subsequently terminate such conditional designations. The provisions regarding the conditional designation of community groups are contained in 28 RCNY § 28-04.
(5) Projects. The agency may negotiate with any conditionally designated community group concerning the terms of the EDA pursuant to which such community group will perform one or more projects. The provisions regarding such projects are contained in 28 RCNY § 28-05.
(6) Disbursement. The agency may disburse syndication funds pursuant to EDA’s, these rules, and applicable laws. The provisions regarding disbursement procedures are contained in 28 RCNY § 28-06.
(7) Project administration. The agency shall require community groups to utilize syndication funds in accordance with these rules, the agreements, the EDA’s and applicable laws. The provisions regarding project administration are contained in 28 RCNY § 28-07.
§ 28-02 Escrow Account.
(a) General. The city or the agency shall establish an interest-bearing escrow account into which syndication funds received from developers shall be deposited and held until such syndication funds are disbursed pursuant to these rules.
(1) The trust and agency account administered by the comptroller pursuant to the resolution adopted by the city’s board of estimate on September 19, 1985 (Cal. No. 644), as renewed and/or amended on February 6, 1986 (Cal. No. 33), April 30, 1987 (Cal. No. 55), February 25, 1988 (Cal. No. 325), March 9, 1989 (Cal. No. 35), and March 8, 1990 (Cal. No. 245), or
(2) Any other interest bearing escrow account established and administered pursuant to these rules and applicable laws.
§ 28-03 Selection of Community Groups.
(a) General. This 28 RCNY § 28-03 sets forth standards for the selection of community groups to receive syndication funds for projects. Such determinations shall be made by the agency, in accordance with the standards set forth herein, for the purposes of (i) ascertaining whether a community group meets the requirements of the program and has the ability to perform the project, and (ii) furthering the best interests of the city. The agency may select a community group to receive syndication funds by any method permitted by law which it determines will best meet the program's objectives, including, but not limited to, sole source, application, RFP, selection by a process mandated by an entity other than the agency, and selection by an entity other than the agency.
(1) Any community group which was the co-sponsor of a development; or
(2) Any community group with which it began to negotiate before the date upon which the guidelines ceased to be effective; or
(3) Any community group which was selected by a developer in accordance with an agreement prior to the agency’s use of EDA’s as if, and to the same extent as if, such community group had been selected by the agency pursuant to these rules.
(1) Distribution.
(i) Notice. At such time as the agency commences an application process for selection of one or more community groups, the agency shall place advertisements in The City Record and such other publications as the agency shall deem appropriate. The advertisement shall include, at a minimum, a short description of the program, the availability of syndication funds, any required or suggested project, the place where application forms can be obtained and the deadline for submission of applications.
(ii) Application forms. The agency or its designee shall prepare or cause to be prepared the forms upon which application are to be submitted, which forms may require such information as the agency deems to be necessary or desirable to effectuate the purposes of the program. Application forms shall be made available by the agency to all potential applicants.
(iii) Amendments. The agency may change any aspect of the information set forth in the advertisement at any time. The agency shall amend the advertisement accordingly and shall place such amended advertisement in The City Record, the publications in which the original advertisement appeared, and such other publications as the agency shall deem appropriate. If it is infeasible for the agency to publish the amended advertisement in the publications in which the original advertisement appeared, the agency shall endeavor to provide substantially the same type of notice as was provided with respect to the original advertisement. The agency may also mail copies of such amended advertisement to potential applicants who have done prior business with the agency or who have requested to be on a mailing list for such purpose. Notwithstanding the foregoing, an application process may be terminated by the agency at any time without adver- tisement.
(2) Submissions.
(i) Time period. The agency may impose a deadline for submission of applications, which shall be a reasonable period of time after the advertisement first appears. The agency may, in the alternative, impose no deadline, in which case the agency shall receive, review, and approve or reject applications on a rolling basis as and when such applications are received.
(ii) Completeness. The agency shall require applications to be submitted on the required forms and to be completed and executed in the manner set forth therein.
(3) Selection.
(i) Completeness. The application must include all required forms, and such forms must be fully and properly completed and executed, at the time of submission. The agency may reject an application if it determines that such requirements are not met.
(ii) Selection. The agency may review and judge applications and select community groups by any method and upon any criteria permitted by law or these rules.
(4) Limitations.
(i) No obligation. The publication of an advertisement and the provision and acceptance of application forms shall not represent any obligation or agreement whatsoever on the part of the city or the agency, which may only be incurred or entered into by an EDA approved by the law department and duly executed by both parties. The city and the agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any applicant at any time, including, but not limited to, the cost of preparing an application.
(ii) No warranty. The agency shall make no warranties, express or implied, with respect to any factual information contained in any advertisement.
(5) Rights retained by agency. Where it is deemed by the agency to be in the best interests of the city:
(i) The agency may terminate any application process in whole or in part at any time.
(ii) The agency may reject any and all applications.
(iii) The agency may at any time allow applicants to make modifications or additions to their applications.
(iv) The agency may negotiate with applicants and may negotiate with parties which have not submitted applications.
(v) The agency may negotiate on terms other than those set forth in the advertisement.
(1) Issuance. The agency may issue RFP’s at any time it deems appropriate and desirable.
(2) Distribution.
(i) Notice. At such time as the agency issues an RFP for selection of one or more community groups, the agency shall place advertisements in The City Record and such other publications as the agency shall deem appropriate. The advertisement shall include, at a minimum, a short description of the program, the availability of syndication funds, any required or suggested project, the place a copy of the RFP can be obtained and the deadline for submission of proposals.
(ii) Availability. A copy of the RFP shall be made available to all potential applicants prior to the submission deadline. The agency shall require all recipients of any RFP to furnish identification and shall cause a list of recipients to be maintained, which list shall in no event be furnished to any non-governmental party prior to the conclusion of the selection process.
(iii) Amendments. The agency may issue written amendments to the RFP at any time prior to the submission deadline. The agency shall provide copies of such amendments to all recipients of the RFP.
(3) Public Information.
(i) Conference. Prior to the submission deadline, the agency may, but shall not be required to, hold an open conference where agency staff answer questions about submission and program requirements. The time and place for such conference, if any, shall be indicated in the RFP solicitation.
(ii) Agency contacts. Agency staff shall be available during the submission period by telephone and/or in person to answer general questions about the RFP. The agency may require that contact with agency personnel by prospective applicants with respect to an RFP be limited to one or more person(s) designated in the RFP and/or that such contact be in writing.
(4) Submissions.
(i) Deadline. The deadline for submissions shall be a reasonable period of time after the advertisement first appears and shall be stated in the RFP.
(ii) Completeness. The agency shall require proposals to be submitted in the format and number prescribed in the RFP and to contain all information and forms required therein.
(5) Selection.
(i) Basic requirements. The agency may reject a proposal if it determines that either of the following basic requirements are not met:
(A) Completeness. The proposal must include all required forms, and such forms must be fully and properly completed and executed, at the time of submission.
(B) Compliance. The proposal must comply in all respects with all material terms of the RFP.
(ii) Threshold criteria. The agency may impose such additional threshold criteria in the RFP as it deems necessary or desirable. Provided that a proposal has passed all basic requirements, the agency shall consider such threshold criteria as are established in the RFP. Such threshold criteria may include, but shall not be limited to, those characteristics of applicants which have a bearing on their ability to successfully complete the project (e.g., organizational capacity, comparable experience, financial capacity, and current and projected workload), those characteristics of the applicant’s proposal which have a bearing on the performance of the project, and any other factors which the agency deems appropriate.
(iii) Competitive criteria. The agency may impose such additional competitive criteria in the RFP as it deems necessary or desirable. Provided that a proposal has passed all threshold criteria, the agency shall consider such competitive criteria as are established in the RFP. Such criteria may include, but shall not be limited to, those characteristics of applicants which have a bearing on their ability to successfully complete the project (e.g., organizational capacity, comparable experience, and current and expected workload), those characteristics of the applicant’s proposal which have a bearing on the performance of the project, and any other factors which the agency deems appropriate.
(6) Limitations.
(i) No obligation. An RFP shall not represent any obligation or agreement whatsoever on the part of the city or the agency, which may only be incurred or entered into by written EDA approved as to form by the city’s law department and duly executed by both parties. The city and the agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any applicant at any time, including, but not limited to, the cost of responding to the RFP.
(ii) No warranty. The agency shall make no warranties, express or implied, with respect to any factual information contained in any RFP.
(7) Rights retained by agency. Where it is deemed by the agency to be in the best interests of the city:
(i) The agency may withdraw any RFP in whole or in part prior to conditional designation of a community group.
(ii) The agency may reject any and all proposals submitted in response to an RFP.
(iii) The agency may at any time waive compliance with an RFP, change any of the terms and conditions of an RFP, or allow certain applicants to make modifications or additions to their respective proposals.
(iv) The agency may negotiate with one or more applicants who have submitted proposals pursuant to an RFP, and may negotiate with parties which have not responded to the RFP.
(v) The agency may negotiate and execute an EDA on terms other than those set forth in the RFP.
§ 28-04 Conditional Designation of Community Groups.
(a) Rejection letters. The agency shall notify all unsuccessful applicants in writing. Such letter shall state the reasons for the rejection of such applicant's proposal or other submission.
(1) Acceptance deadline. The letter may require the applicant to unconditionally accept the designation within a time period for acceptance established therein.
(2) Program requirements. The letter may set forth program requirements and conditions upon which the designation was made and may state that any non-conformance or change in any of such requirements may be deemed by the agency to constitute a default.
(3) Schedule. The letter may contain a schedule of activities which must be completed as pre-conditions for the actions to be taken in connection with the disbursement of syndication funds.
(1) Causes for termination. After conditional designation of a community group, the agency may terminate such conditional designation at any time if the agency determines that the city should not enter into an EDA with the community group for any reason, including, but not limited to, the following:
(i) Failure to comply with terms of designation. The community group has failed to comply with any term or condition of the conditional designation letter.
(ii) Failure to meet city requirements. The community group has either (A) failed to clear one or more of the required city reviews, including, but not limited to, IG clearance and EO clearance, or (B) failed to satisfy other requirements established by the agency or the city.
(iii) Lack of resources. The community group lacks the necessary expertise, administrative or other resources, or legal capacity to perform the project.
(iv) Lack of funding. Adequate funding for the entire project, whether from syndication funds, other city funds, or any other public or private source, is not available or is not provided in a timely manner.
(v) Best interests of city. The agency or the city has not approved the required actions for any reason determined by the agency or the city to be in the best interests of the city.
(2) Notice of termination. If the agency elects to terminate the conditional designation of a community group, the agency shall notify the community group of such termination in writing.
(3) Right to comment. The agency shall give any terminated community group an opportunity to comment on the reasons for such termination, either in writing or by a conference with a responsible official of the agency. The agency shall give due consideration to any comments made by such community group, but shall retain the sole discretion whether to revoke the termination, set specific conditions for a revocation of the termination, or retain the termination. If the agency decides to revoke or conditionally revoke the termination, the agency shall notify the community group of its decision in writing. Nothing in this 28 RCNY § 28-04(d)(3) or this 28 RCNY § 28-04 shall be deemed to restrict the power and authority of the agency to negotiate with other parties, to enter into EDA’s, or to take such other actions with respect to the syndication funds as the agency shall determine to be necessary or desirable, prior to receipt of comments from a terminated community group.
§ 28-05 Projects.
(a) EDA. The agency shall negotiate with each conditionally designated community group concerning the terms of the EDA pursuant to which such community group will perform one or more projects. Such negotiation shall continue until either the community group's conditional designation is terminated pursuant to these rules or an EDA is executed by the city and the community group. The city and the agency shall not disburse any syndication funds from the escrow account to the community group for any project until the city and the community group have executed an EDA in form approved by the law department and in form and substance acceptable to the agency. Each disbursement of syndication funds from the escrow account to a community group for a project shall be made in accordance with such EDA. The agency shall not be obligated to disburse any funds pursuant to an EDA beyond those syndication funds received from the developer of the applicable development.
(1) Project activities:
(i) Acquisition, rehabilitation (including all costs of maintenance and operation of occupied residential buildings during rehabilitation), and/or construction of housing accommodations and/or community facilities.
(ii) Rehabilitation or repair of city-owned occupied residential buildings.
(iii) Community improvements, including, but not limited to,
(A) demolition or resealing and securing of buildings in accordance with an area improvement plan or housing strategy,
(B) development and/or maintenance of permanent site improvement projects,
(C) facade and street improvements, and
(D) development, enhancement or maintenance of new or existing community facilities or open spaces.
(iv) Landlord/tenant activities, including, but not limited to,
(A) tenant organizing, education and counseling,
(B) negotiations and mediations of landlord-tenant disputes,
(C) landlord-tenant referral services.
(2) Related administrative costs. Not more than twenty percent (20%) of the syndication funds disbursed to a community group shall be used for administrative expenses incurred by the community group in connection with the project, including, but not limited to,
(i) salaries for staff who provide services which are particular to the project,
(ii) consultant fees,
(iii) office supplies,
(iv) rent,
(v) insurance,
(vi) other costs directly related to the performance of the project.
(3) Other approved use. The agency may approve any other use of syndication funds which is consistent with these rules, even though such use is not listed in 28 RCNY § 28-05(c)(1) or (c)(2).
§ 28-06 Disbursements.
(a) General. The agency may disburse syndication funds from the escrow account pursuant to these rules and applicable laws.
(1) Notice to public. At such time as the agency proposes to execute an EDA with a community group, the agency shall place an advertisement in The City Record and such other publication as the agency shall deem appropriate, which advertisement shall include, at a minimum:
(i) a description of the program,
(ii) a description of the proposed project,
(iii) the designated community group(s) or other proposed recipient of the syndication funds,
(iv) where and when the public may inspect the proposed EDA, and
(v) where and when members of the public may comment in writing on any action described in the advertisement and/or EDA.
(2) Notice to borough president. Prior to or simultaneously with publication of the advertisement required pursuant to 28 RCNY § 28-06(b)(1), the agency shall mail copies of the advertisement and proposed EDA to the following officials or their designees:
(i) the borough president in the borough in which the project is located,
(ii) the community board in the community district in which the project is located, and
(iii) such other public officials or agencies as the agency shall deem appropriate.
(3) Submission of written comments. The agency shall impose a deadline for submission of written comments, which shall be a reasonable time after the advertisement first appears, but in no event less than fourteen (14) calendar days.
(4) Review of written comments. After the deadline for submission of written comments, the agency shall review the written comments received by it and shall determine whether such comments raise substantive issues which require further consideration. If the agency concludes that further consideration is required, the agency shall convene a public hearing in accordance with 28 RCNY § 28-06(c). If the agency concludes that further consideration is not required, the agency shall either (i) approve the proposed EDA, (ii) approve the proposed EDA with modifications, or (iii) disapprove the proposed EDA. If the agency approves the proposed EDA, the agency may, but shall not be required to, proceed with the execution of the EDA. If the agency approves the proposed EDA with modifications, the agency may, but shall not be required to, proceed with the execution of the modified EDA, and no additional public comment procedure shall be required concerning such modifications. If the agency disapproves the proposed EDA, the agency shall thereafter either (i) resume negotiations with the community group on a new or modified EDA, or (ii) terminate the conditional designation of the community group.
(1) Notice to public. The agency shall place an advertisement in The City Record and such other publications as the agency shall deem appropriate, which advertisement shall include, at a minimum, (i) a description of the program, (ii) a description of the proposed project, (iii) the designated community group(s) or other proposed recipient of the syndication funds, (iv) where and when the public may inspect the proposed EDA, and (v) the date, time, and location at which members of the public may comment in person on any action described in the advertisement and/or EDA. The agency shall endeavor to mail copies of such advertisement to (i) the borough president in the borough in which the project is located, (ii) the community board in the community district in which the project is located, (iii) such other public officials or agencies as the agency shall deem appropriate, and (iv) if feasible, all parties who submitted written comments pursuant to 28 RCNY § 28-06(b).
(2) Conduct of public hearing. A representative of the agency shall commence the public hearing by describing the action proposed by the agency. The agency shall then afford all persons attending who desire to comment upon such action a reasonable opportunity to speak; provided, however, that the agency may establish and enforce a uniform time limit upon the comments of all speakers; provided further, however, that such time limit shall in no event be less than two (2) minutes per speaker. An audio tape or transcript shall be made of the proceedings and a record shall be made of persons in attendance at the hearing.
(3) Review of public comments. After the public hearing, the agency shall review the comments of the speakers and shall determine whether to (i) approve the proposed EDA, (ii) approve the proposed EDA with modifications, or (iii) disapprove the proposed EDA. If the agency approves the proposed EDA, the agency may, but shall not be required to, proceed with the execution of the EDA. If the agency approves the proposed EDA with modifications, the agency may, but shall not be required to, proceed with the execution of the modified EDA, and no additional public comment procedure shall be required concerning such modifications. If the agency disapproves the proposed EDA, the agency shall thereafter either (i) resume negotiations with the community group on a new or modified EDA, or (ii) terminate the conditional designation of the community group.
(1) New community group. The agency may select a new community group and make disbursements to it in accordance with these rules;
(2) Agency project. The agency may prepare a scope of work and EDA for a project and/or disburse unencumbered funds for the performance of such project to the agency rather than to a community group;
(3) Tax levy. The agency may apply unencumbered funds toward the cost of providing city services in the borough of the development which generated such syndication funds; and
(4) Best interests of the city. The agency may utilize unencumbered funds in any other manner deemed by the agency to be in the best interests of the city, including, but not limited to, disbursement of such unencumbered funds into the general fund of the city.
§ 28-07 Project Administration.
(a) Accounts established by community groups. The community group shall establish a separate checking or savings account and shall submit a banking resolution to the agency which shall provide that (1) the commissioner shall be authorized to stop all disbursements from each such account or seize all funds therein, in the event of any failure to comply with the applicable EDA or agreement, or for any other reason deemed necessary or desirable by the agency to protect the best interests of the city consistent with these rules and applicable laws, and (2) checks or drafts shall be signed by at least two officers or designated, authorized signatories of the community group before a check or draft may be negotiated or funds withdrawn. Any syndication funds received by a community group, whether from the escrow account pursuant to an EDA or directly from a developer pursuant to an agreement, or monies repaid to the community group from any project activities, shall be deposited into such account and shall be held and utilized strictly in accordance with these rules. No syndication funds shall be disbursed to the community group and no funds shall be disbursed by the community group from such account until and unless the agency shall approve such banking resolution in writing.
(1) Reports. At the end of the first six-month period after a community group receives its first disbursement, and every six months thereafter for as long as syndication funds remain in use by the community group, it shall provide the agency with a report and interim financial statement summarizing the use of the syndication funds received by it, together with copies of all bank statements and cancelled checks, and with a reconciliation of the checking and/or savings account.
(2) Audits. Starting with the end of the first full calendar year in which syndication funds were available to the community group for six months or longer, (i) the community group shall provide yearly audited financial statements to the agency, and (ii) all of the books and records of the community group shall be subject to review and audit by the agency or the comptroller. The community group shall maintain such books and records and shall make them available for audit for a period of six (6) years after the expiration of its EDA. Any agreements between a community group and its contractors shall contain substantially the same language as contained in this 28 RCNY § 28-07(b)(2). The community group shall require the certified public accountant retained by it to prepare its audited financial statement to (i) make its “work papers” available upon demand to the agency or the comptroller, and (ii) register with the comptroller upon demand by the city.
§ 28-08 Miscellaneous Provisions.
(a) Adverse findings. Notwithstanding any provision to the contrary in these rules or in any document concerning any selection process, any project, or the program, the agency may reject any applicant or terminate any conditional designation of a community group if the agency determines at any time that good and sufficient reasons exist why the city should not do business with such party or should not allow such party to act as community group for the particular project in question. Such reasons shall include, but shall not be limited to, evidence with respect to the applicant or any member of its development team or any contractor retained by such applicant or any of its principals of:
(1) Arson conviction or pending cases,
(2) Harassment conviction or pending cases,
(3) Arrears or default upon any debt, lease, contract, tax, lien, fee, charge, or obligation to the city,
(4) City mortgage or tax foreclosure proceedings or arrears,
(5) Unsuccessful record with comparable projects, including, but not limited to, poor workmanship, failure to complete a project expeditiously, building violations or litigation history against other properties, or unsuccessful record of managing residential real property,
(6) Inability, due to lack of organizational capacity, competing demands from other projects, or any other factor to perform all work required to successfully complete the project,
(7) Bankruptcy or insolvency,
(8) Violation of the conflict of interest provisions of the city charter or any other applicable laws, or
(9) Failure to obtain IG clearance and/or EO clearance.
§ 29-01 General Provisions. [Repealed]
*§ 29-02 Sponsor Selection. [Repealed]* ::
§ 29-03 Designation of Sponsors. [Repealed]
*§ 29-04 Schedule of Rent. [Repealed]* ::
§ 29-05 Tax Exemption, Grants and Loans. [Repealed]
*§ 29-06 Project Operation. [Repealed]* ::
§ 29-07 Tenant Notice. [Repealed]
*§ 29-08 Miscellaneous Provisions. [Repealed]* ::
§ 30-01 Definitions.
Administrative Code. “Administrative Code” shall mean the Administrative Code of the City.
Building. “Building” shall mean any multiple dwelling which is occupied by Tenants and (prior to Disposition) owned by the City, including any vacant land adjacent thereto, which is or may be the subject of a Project.
City. “City” shall mean the City of New York.
Commissioner. “Commissioner” shall mean the Commissioner of HPD or his or her designee.
DHCR. “DHCR” shall mean the State of New York Division of Housing and Community Renewal.
Disposition. “Disposition” shall mean the date of title transfer of a Building from the City to a Sponsor.
Final Selection. “Final Selection” shall mean a decision by HPD to select a Building for the Program.
FMR. “FMR” shall mean the fair market rent set by the § 8 program or any other successor program of the United States Department of Housing and Urban Development.
Housing Maintenance Code. “Housing Maintenance Code” shall mean Chapter 2 of Title 27 of the Administrative Code.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City, or its designee.
Intake Rent. “Intake Rent” shall mean the rent set by HPD which takes effect after Project Commencement.
Interim Payment Agreement. “Interim Payment Agreement” shall mean an agreement entered into between HPD, the Sponsor and a Tenant eligible for rental assistance to temporarily accept less than the full rent from the Tenant prior to the provision of rental assistance.
Laws. “Laws” shall mean any and all applicable laws, ordinances, orders, rules and regulations.
Lessee. “Lessee” shall mean the Sponsor during the period between Project Commencement and Disposition if HPD and Sponsor enter into a temporary lease of the Building.
Post-Rehabilitation Rent. “Post-Rehabilitation Rent” shall mean the rent set by HPD which takes effect after Substantial Completion.
Preliminary Selection. “Preliminary Selection” shall mean a preliminary determination by HPD to select a Building for the Program.
Program. “Program” shall mean the Neighborhood Redevelopment Program.
Project. “Project” shall mean a project in the Program.
Project Activity. “Project Activity” shall mean any activity performed or required to be performed by the Sponsor in connection with a Project.
Project Commencement. “Project Commencement” shall mean the date the Project has commenced, as set forth in the notice described in 28 RCNY § 30-04(e).
Qualified Not-For-Profit Corporation. “Qualified Not-For-Profit Corporation” shall mean a not-for-profit entity selected by HPD to participate in the Program.
Rehabilitation. “Rehabilitation” shall mean the installation, replacement, or repair of one or more Building systems or the correction of inadequate, unsafe, or insanitary conditions.
Rules. “Rules” shall mean the rules set forth in this chapter.
Sponsor. “Sponsor” shall mean the entity selected by HPD to lease, own and/or develop the Project, and any entity substantially controlled by such Sponsor.
Subsidy. “Subsidy” shall mean a loan or a grant made by HPD to a Sponsor for Project Activities.
Substantial Completion. “Substantial Completion” shall mean the date on which HPD certifies that (a) construction work comprising at least 95 percent of the approved Rehabilitation cost has been satisfactorily completed, and (b) all work required to remove Housing Maintenance Code violations which were of record before the Rehabilitation of the Building and were then classified as “B” and “C” has been completed.
Tenants. “Tenants” shall mean residential tenants of record occupying a dwelling unit in a Building. Other residential occupants, such as squatters and licensees, are not Tenants. Non-residential tenants or occupants, such as those who occupy space in a Building for retail, commercial, manufacturing, or community facility purposes, are not Tenants.
§ 30-02 General.
(a) Coverage. These Rules govern the procedures for: selecting Buildings for the Program, selecting Sponsors for the Program, providing Subsidies for Projects, Project operation, determination and establishment of rents, and providing notices to Tenants. Buildings in the Program shall be subject to these Rules.
§ 30-03 Selection of Sponsors.
HPD may select a Sponsor for a Project by any method which it determines will best further the purposes of the Program, including, without limitation, pursuant to a request for qualifications process, pursuant to a request for proposals process, selection from a pre-qualified list or, in the discretion of HPD, by a direct designation of an entity judged by HPD to be suitable for the task. HPD, in selecting a Sponsor, may consider any relevant factors, including, but not limited to:
(i) the Sponsor’s prior record in other City housing programs;
(ii) the Sponsor’s prior selection by the City as a developer in another program;
(iii) the Sponsor’s record as a property owner, developer, or manager;
(iv) the Sponsor’s relevant experience in and knowledge of the neighborhood where the Project is located, and
(v) any relevant written comments by Tenants. It is intended that the Sponsor will be a Qualified Not-For-Profit Corporation.
§ 30-04 Selection of Buildings, Tenant Notification.
(a) Eligible Buildings. HPD may select Buildings for the Program if:
(1) Rehabilitation of the Building is technically and financially feasible;
(2) The Building has not been accepted into another HPD disposition program.
(1) A statement that HPD is considering placing the Building in the Program;
(2) A description of the Program;
(3) A statement that an Intake Rent will be set;
(4) A statement that the Building may be eligible for other HPD programs and the name, address and phone number of an HPD employee who may provide information on how to apply for such other programs;
(5) The name of the Sponsor selected by HPD to develop the Project; and
(6) A statement that the Building will remain in the Program unless accepted into another HPD program.
§ 30-05 Subsidy.
(a) Eligible Costs. Subject to the limitations set forth in applicable Laws, a Subsidy may be made in such amounts as may be required for Project Activities.
§ 30-06 Rent Setting.
(a) Establishment of Intake Rents. HPD shall from time to time on a program-wide basis establish Intake Rents for all dwelling unit Buildings selected for the Program based upon a minimum rent level per zoning room based on operating costs in similar Buildings. The Intake Rent and the rationale therefore shall be kept on file by HPD and be available for public inspection. HPD shall provide notice of Intake Rent pursuant to 28 RCNY § 30-04(f).
(1) inform each Tenant of the contemplated Rehabilitation which will be performed in the Project;
(2) advise each Tenant of the expected rental increase to result from the Rehabilitation which will take effect after Substantial Completion (i.e., the Post-Rehabilitation Rent);
(3) provide information on rental assistance which may be available to the Tenant and the procedures to apply for such assistance in accordance with 28 RCNY § 30-09;
(4) apprise each Tenant of such Tenant’s right to submit written comments; and
(5) advise each Tenant that where relocation during Rehabilitation is necessary, HPD will use its best efforts to minimize inconvenience to affected Tenants.
§ 30-07 Project Operation Prior to Disposition if HPD Temporarily Leases the Building to the Sponsor.
(a) Lease. Prior to Disposition, HPD may temporarily lease the Building to a Lessee pursuant to the terms of a written lease.
(1) Complaints shall, in the first instance, be directed to Lessee.
(2) Tenants shall have the right to file written complaints with HPD staff if a Tenant deems Lessee’s response to be inadequate or unsatisfactory.
§ 30-08 Project Operation After Disposition.
(a) Regulatory Agreement. A Sponsor may be required to execute a regulatory agreement with HPD as a condition for the Project. The regulatory agreement shall be recorded and shall run with the land for the period set forth therein. The regulatory agreement shall require the Sponsor and all of Sponsor's successors and assigns to comply with Project requirements.
§ 30-09 Rental Assistance.
(a) HPD will assist eligible Tenants in applying for existing rental assistance programs during the period of the Building's participation in the Program. HPD will provide Tenants with applications for § 8 of the United States Housing Act of 1973, as amended, and senior citizen rent increase exemptions, advise Tenants which rental assistance program is most suitable for their individual needs and assist Tenants in completing rental assistance applications.
(1) the amount of the increased rent for the apartment;
(2) the amount of rent that the Tenant must pay pending the final eligibility determination of the rental assistance application (as such amount is determined in accordance with subdivision (d) of this section);
(3) a statement of the grounds for termination pursuant to subdivision (e) of this section; and
(4) notice to the Tenant that s(he) remains liable for the full amount of the rent retroactive to the effective date of the increase if, at any time, the rental assistance application is denied by HPD or the Interim Payment Agreement is terminated pursuant to paragraphs one, three or four of subdivision (e) of this section, provided, however, that if the Interim Payment Agreement is terminated pursuant to paragraph one of subdivision (e) of this section, the Tenant shall not be liable for the full amount of the rent increase retroactive to its effective date if s(he) notifies HPD within thirty (30) days of any change in household income which renders the Tenant ineligible for rental assistance.
(1) any change in the Tenant’s household income which renders the Tenant ineligible for rental assistance; or
(2) any change in the rent charged by the City; or
(3) failure by the Tenant to comply with any of the requirements necessary to process the application for rental assistance; or
(4) failure by the Tenant to pay, within thirty (30) days of the date due, the rent payable under the Interim Payment Agreement pursuant to subdivision (d) of this section, unless payment of such rent is being withheld for lack of services which the Tenant has given written notice of to the Sponsor; or
(5) receipt by Tenant of rental assistance pursuant to a rental assistance application filed in accordance with this section.
§ 30-10 Miscellaneous Provisions.
(a) HPD Discretion. All determinations to be made by HPD in accordance with these Rules shall be in the sole discretion of HPD.
§ 31-01 General Provisions.
(a) Scope. The provisions of 28 RCNY §§ 31-01 through 31-06 shall govern the grant of tax exemption pursuant to § 420-c of the Real Property Tax Law, including the procedure for filing an application for tax exemption and the issuance of Certificates of Eligibility by the Office, for all such applications approved by the Department before September 28, 2004. Except as otherwise provided for in the definitions of "Housing Accommodations" in 28 RCNY §§ 31-01 and 31-07, 28 RCNY §§ 31-07 through 31-12 shall govern the grant of tax exemption pursuant to § 420-c of the Real Property Tax Law, including the procedure for filing an application for tax exemption and the issuance of Certificates of Eligibility by the Office, for all such applications approved by the Department on or after September 28, 2004.
Aggregate Floor Area. “Aggregate Floor Area” shall mean the sum of the gross areas of the several floors of a building, measured from the exterior faces of exterior walls or from the center lines of walls separating two buildings.
Allocation Document. “Allocation Document” shall mean a document issued by the Housing Credit Agency with respect to Real Property indicating either (i) that such Real Property has received a determination of credit eligibility, (ii) that such Real Property has received a binding reservation for tax credits or (iii) that such Real Property has been allocated tax credits pursuant to § 42 of the Code.
Application Date. “Application Date” shall mean the date of submission to the Office of a completed application (including all required documentation), as determined by the office for benefits under 28 RCNY §§ 31-01 through 31-06.
Certificate of Eligibility. “Certificate of Eligibility” shall mean the certificate issued by the Office pursuant to 28 RCNY § 31-04(d).
City. “City” shall mean the City of New York.
Code. “Code” shall mean the United States Internal Revenue Code of 1986, as amended.
Commissioner. “Commissioner” shall mean the commissioner of the Department of Housing Preservation and Development or the commissioner of any successor agency or department thereto or her or his designee.
Controlling Interest. “Controlling Interest” shall mean: (i) in the case of a corporation, direct or indirect ownership of a majority of shares of each class of voting stock in such corporation, and (ii) in the case of a partnership, a majority ownership in each general partner in such partnership.
Department. “Department” shall mean the Department of Housing Preservation and Development of the City or any successor agency.
Department of Finance. “Department of Finance” shall mean the Department of Finance of the City or any successor agency or department thereto.
Eligible Property. “Eligible Property” shall mean Real Property containing Housing Accommodations and conforming to the criteria listed in 28 RCNY § 31-02(a). Real property not containing Housing Accommodations is not Eligible Property. If a portion of Real Property is not Eligible Property, tax exemption shall be apportioned in accordance with 28 RCNY § 31-03(b). Eligible Property shall be exempt if a Regulatory Agreement with the City or the State or the Housing Trust Fund Corporation is in effect and contemplates construction or rehabilitation of such property for use for housing for persons of low income by a date certain.
Housing Development Fund Company or HDFC. “Housing Development Fund Company or HDFC” shall mean a corporation organized pursuant to Article XI of the Private Housing Finance Law and incorporated pursuant to § 402 of the Not-For-Profit Corporation Law.
Housing Accommodations. “Housing Accommodations” shall mean Real Property used for (i) residential purposes including dwelling units, common sanitary and cooking and dining facilities, common recreation areas including outdoor recreation areas and public areas such as cellars, basements, public halls and stairs and roofs; (ii) ancillary residential purposes including management, administrative and social service offices and facilities used to provide social services (including Job Training) primarily for Persons or Families of Low Income residing in such Housing Accommodations; or (iii) for projects with an Initial Filing Date on or after July 1, 2004 and before the effective date of the rule adding 28 RCNY §§ 31-07 through 31-12, community facility uses that (A) provide services to individuals who reside in the area, (B) limit any fees charged for such community facility uses to fees that are affordable to individuals whose household incomes do not exceed sixty percent (60%) of the area median income adjusted for family size, and (C) are located on the same Real Property as the dwelling units that constitute such Housing Accommodations. Notwithstanding the foregoing, any portion of the combined floor area of such ancillary residential purposes and/or community facility uses which exceeds twenty-five percent (25%) of the Aggregate Floor Area of the Real Property shall not qualify as Housing Accommodations.
Housing Corporation. “Housing Corporation” shall mean a non-profit housing corporation as defined in Article XI of the Private Housing Finance Law which is not incorporated as an HDFC as defined in such Article XI.
Housing Credit Agency. “Housing Credit Agency” shall mean the New York State Division of Housing and Community Renewal or the City’s Department of Housing Preservation and Development or such other agency as shall be designated as a housing credit agency in the city by the State of New York under § 42 of the Code.
Housing Trust Fund Corporation. “Housing Trust Fund Corporation” shall mean the corporation established pursuant to § 45-a of the Private Housing Finance Law.
Initial Filing Date. “Initial Filing Date” shall mean the date an initial application is submitted to the Office.
Job Training. “Job Training” shall mean programs, services and commercial activities occurring within an Eligible Property in space occupied by a not-for-profit corporation. Such programs, services and commercial activities must be for the benefit primarily of Persons or Families of Low Income residing in the Housing Accommodations.
Loan “Loan” shall mean a loan for the acquisition and/or construction and/or rehabilitation and/or permanent financing of Housing Accommodations provided by the City, the State or the Housing Trust Fund Corporation.
Office. “Office” shall mean the Tax Incentive Programs Unit of the Department of Housing Preservation and Development or any successor thereto authorized to administer these rules.
Participant. “Participant” shall mean an owner of Real Property that is the subject of an Allocation Document.
Persons or Families of Low Income. “Persons or Families of Low Income” shall mean persons or families who are in low income groups and who cannot afford to pay enough to cause private enterprise in their municipality to build a sufficient supply of adequate, safe and sanitary dwellings as set forth in § 2 of the Private Housing Finance Law.
Qualified Owner. “Qualified Owner” shall mean an entity: (a) which is either (i) an HDFC, or (ii) a Housing Corporation, or (iii) is a wholly owned subsidiary of such a company or corporation, or (iv) a limited partnership in which the Controlling Interest is held by (A) an HDFC or Housing Corporation or (B) a wholly owned subsidiary of an HDFC or Housing Corporation, or (v) a corporation sponsored or formed by such an HDFC company or Housing Corporation and (b) in which no officer, director, shareholder, member, partner or employee shall receive any pecuniary profit, income or other distributions from the Eligible Property except (i) low income housing tax credits and non-cash tax benefits available pursuant to the Code and (ii) reasonable compensation for services rendered and (c) which is a participant in the federal low income housing tax credit program pursuant to § 42 of the Code and has not defaulted in its obligations thereunder. An example of a qualified owner is a limited partnership in which the Controlling Interest is held by: (a) an HDFC or Housing Corporation or (b) a wholly owned subsidiary of an HDFC or Housing Corporation. Housing Corporations are only eligible if in existence on the effective date of chapter 647 of the Laws of 1994 .
Real Property. “Real Property” shall mean the land, buildings and other improvements subject to taxation pursuant to § 102 of the Real Property Tax Law which are the subject of an application under 28 RCNY § 31-04.
Regulatory Agreement. “Regulatory Agreement” shall mean an agreement with the City, the State or the Housing Trust Fund Corporation (i) restricting the use of Real Property to Housing Accommodations for Persons or Families of Low Income and (ii) imposing the rental and occupancy restrictions established by § 42 of the Code on at least seventy percent (70%) of the dwelling units in such Real Property. Such agreement may be contained in the mortgage securing the Loan or may be a separate agreement recorded of record against the Real Property.
Rules. “Rules” shall mean 28 RCNY §§ 31-01 through 31-06.
State. “State” shall mean the State of New York.
§ 31-02 Eligibility Requirements.
(a) Eligible Property. Real Property may be eligible for an exemption from Real Property taxes as set forth in 28 RCNY § 31-05 if:
(1) It has been acquired and/or rehabilitated and/or constructed, and/or otherwise financed with a Loan; and
(2) It is bound by a Regulatory Agreement; (i) restricting the use of Real Property to Housing Accommodations for Persons or Families of Low Income and (ii) imposing the rental and occupancy restrictions established by § 42 of the Code on at least seventy percent (70%) of the dwelling units in such Real Property. Such agreement may be contained in the mortgage securing the Loan or may be a separate agreement recorded of record against the Real Property; and
(3) An Allocation Document has been issued for the Eligible Property; and
(4) It is owned, at the Application Date and for the duration of such exemption, by a Qualified Owner; and
(5) It constitutes Housing Accommodations for Persons or Families of Low Income as set forth in the Regulatory Agreement or Allocation Document.
(1) In order to receive retroactive tax exemption pursuant to 28 RCNY § 31-05(a)(2) hereof, the Initial Filing Date of an application for a Certificate of Eligibility must have been on or before October 24, 1993, unless application is made under Chapter 513 of the Laws of 1993 in which case application must be made ninety days after the effective date of said chapter .
(2) An application for a Certificate of Eligibility must contain all documentation required by 28 RCNY § 31-04(b) and be completed within twenty-four months of the Initial Filing Date with the Office or the application may be deemed withdrawn.
(3) If the Allocation Document submitted with the application for the Certificate of Eligibility was either a determination of credit eligibility or a binding reservation for tax credits, then a United States Treasury Form 8609, Part I of which is to be completed by a Housing Credit Agency, must be submitted for the Real Property to the Office within thirty-six months of the Initial Filing Date of the application.
§ 31-03 Ineligible Projects and Portions of Projects.
(a) Ineligible Projects. Tax exemption is not available and shall not be granted with respect to the Real Property if, at the time application is made for a Certificate of Eligibility, the owner of the Real Property is in default under the terms of the Loan and/or the Regulatory Agreement.
§ 31-04 Application Procedure and Documentation.
(a) Application forms and filing for certificate of eligibility. Prescribed forms and applications are available from the Office. All applications must be submitted to the Office on forms approved by the Office.
(1) Original and two copies of the fully completed application form;
(2) Copy of the deed for the Real Property;
(3) Copy of all mortgages and notes evidencing the Loan(s) for the Real Property;
(4) Copy of the Regulatory Agreement binding the Real Property;
(5) Copy of the Allocation Document for the Real Property;
(6) Copy of the filed Certificate(s) of Incorporation, stock certificates, filed Certificate(s) of Limited Partnership and partnership agreements, as applicable, evidencing that the applicant is a Qualified Owner.
(7) Schematic drawings of all proposed or completed buildings or improvements to the Real Property, including all floors thereof, which schematic drawings identify those portions of the Real Property which are not dwelling units and clearly specify (i) areas used for common residential or ancillary residential purposes which qualify as Housing Accommodations for Persons and Families of Low Income and (ii) all areas used for commercial and otherwise ineligible purposes which do not qualify as Housing Accommodations; indicate the square footage of each such space, all drawn to a scale acceptable to the Office which scale is clearly indicated on each drawing, provided, however, that the Office may waive schematics if there is no space not used for dwelling units or other residential purposes;
(8) A certification from the City, the State or the Housing Trust Fund Corporation indicating that the applicant is not in default under the terms of the Loan and the Regulatory Agreement with respect to the Real Property which is the subject of the application if requested by the Office; and
(9) A copy of the Temporary or Permanent Certificate of Occupancy, if issued.
(10) Any such additional documentation which the Office may require.
(11) An application may contain more than one building provided that each such building is part of a project, and is specified in the deed, mortgages and notes and the Regulatory Agreement(s) for such project; and provided further that there is a final Allocation Document for each such building.
(1) It is the applicant’s responsibility to complete the application within twenty-four months, or, where applicable, within thirty-six months of the Initial Filing Date as provided in 28 RCNY § 31-04(c). The Office shall issue a Certificate of Eligibility for all approved applications.
(2) Failure to produce documentation satisfactory to the Office or failure to comply with these Rules may result in the denial of a Certificate of Eligibility, and rejection of the application.
(3) Notwithstanding the issuance of a Certificate of Eligibility, the tax exemption may be revoked or revised pursuant to 28 RCNY Chapter 39.
§ 31-05 Tax Exemption: Effective Date, Duration and Amount.
(a) Effective date of exemption. Tax exemption under 28 RCNY §§ 31-01 through 31-06 shall commence on the latter of: (i) the date of acquisition of the eligible property by the qualified owner, (ii) the effective date of a regulatory agreement, or (iii) the date of issuance of an Allocation Document, except as follows:
(1) Where Eligible Property acquired after January 5 was exempt from Real Property taxation on the date of such transfer, the property shall remain exempt for the balance of the tax year in progress and for the next full tax year.
(2) Duration of exemption. The exemption shall expire upon the expiration or termination of the Regulatory Agreement or thirty years from commencement of exemption if the Regulatory Agreement exceeds thirty years. If the extended use period as defined in the Code is terminated in accordance with § 42 of the Code, the Regulatory Agreement shall be deemed terminated.
(3) Amount of tax exemption. With respect to the portions of Real Property which are not Eligible Property, the Department of Finance will apportion assessed value between exempt portions of Real Property and non-exempt portions thereof (both as determined by the Office) based upon each portion’s relative percentage of the entire parcel’s full market value.
§ 31-06 Fees and Declaratory Rulings.
(a) [Reserved.]
§ 31-07 Definitions.
For purposes of 28 RCNY §§ 31-07 through 31-12, the following terms shall have the following meanings:
Aggregate Floor Area. “Aggregate Floor Area” shall mean the sum of the gross areas of the several floors of a building, measured from the exterior faces of exterior walls or from the center lines of walls separating two buildings.
Allocation Document. “Allocation Document” shall mean a document issued by the Housing Credit Agency with respect to Real Property indicating either (i) that such Real Property has received a determination of credit eligibility, (ii) that such Real Property has received a binding reservation for tax credits or (iii) that such Real Property has been allocated tax credits pursuant to § 42 of the Code.
Application Date. “Application Date” shall mean the date of submission to the Office of a completed application (including all required documentation), as determined by the Office, for benefits under 28 RCNY §§ 31-07 through 31-12.
Certificate of Eligibility. “Certificate of Eligibility” shall mean the certificate issued by the Office pursuant to 28 RCNY § 31-10(d).
Charitable Organization. “Charitable Organization” shall mean (i) an entity formed for purposes that include providing Housing Accommodations for Persons and Families of Low Income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the Code, from the United States Internal Revenue Service, or any successor agency, or (ii) a corporation, partnership or limited liability company wholly owned and wholly controlled by an entity formed for purposes that include providing Housing Accommodations for Persons and Families of Low Income and that has received written recognition of exemption pursuant to section 501(c)(3) or section 501(c)(4) of the Code, from the United States Internal Revenue Service, or any successor agency.
City. “City” shall mean the City of New York.
Code. “Code” shall mean the United States Internal Revenue Code of 1986, as amended, or any successor statute.
Commissioner. “Commissioner” shall mean the commissioner of HPD or the commissioner of any successor agency or her or his designee.
Department of Finance. “Department of Finance” shall mean the Department of Finance of the City or any successor agency.
Eligible Entity. “Eligible Entity” shall mean a corporation, partnership or limited liability company at least fifty percent of the controlling interest of which is held by a Charitable Organization.
Eligible Owner. “Eligible Owner” shall mean one or more Eligible Entities that holds (i) legal and beneficial title to Eligible Real Property, or (ii) a legal and beneficial leasehold interest with a term of not less than thirty years in Eligible Real Property.
Eligible Real Property. “Eligible Real Property” shall mean Real Property that (i) provides Housing Accommodations for Persons and Families of Low Income, and (ii) participates in or has participated in the Tax Credit Program. If a portion of Real Property is not Eligible Real Property, tax exemption shall be apportioned in accordance with 28 RCNY § 31-09(b).
Housing Accommodations. “Housing Accommodations” shall mean Real Property used for (i) residential purposes including dwelling units, common sanitary and cooking and dining facilities, common recreation areas including outdoor recreation areas and public areas such as cellars, basements, public halls and stairs and roofs; or (ii) ancillary residential purposes including management, administrative and, for projects with an Initial Filing Date on or after the effective date of the rule adding this section, community facility uses that are authorized under use groups 3 and 4 of the Zoning Resolution. Notwithstanding the foregoing, any portion of the combined floor area of such ancillary residential purposes which exceeds twenty-five percent (25%) of the Aggregate Floor Area of the Real Property shall not qualify as Housing Accommodations.
Housing Credit Agency. “Housing Credit Agency” shall mean the State Division of Housing and Community Renewal or HPD or such other agency as shall be designated as a housing credit agency in the City by the State under § 42 of the Code.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City or any successor agency.
Initial Filing Date. The term “Initial Filing Date” shall mean the date an initial application is submitted to the Office.
Office. “Office” shall mean the Tax Incentive Programs Unit of HPD or any successor thereto authorized to administer these Rules.
Persons and Families of Low Income. “Persons and Families of Low Income” shall mean persons or families who are in low income groups and who cannot afford to pay enough to cause private enterprise in their municipality to build a sufficient supply of adequate, safe and sanitary dwellings as set forth in § 2 of the Private Housing Finance Law.
Real Property. “Real Property” shall mean the land, buildings and other improvements subject to taxation pursuant to § 102 of the Real Property Tax Law which are the subject of an application under 28 RCNY § 31-10.
Regulatory Agreement. “Regulatory Agreement” shall mean a regulatory agreement with or approved by the City that requires the provision of Housing Accommodations for Persons and Families of Low Income; requires units currently or formerly assisted under the Tax Credit Program be rented in accordance with the income requirements of the Tax Credit Program; imposes the income and occupancy restrictions established by the Tax Credit Program on at least seventy percent (70%) of the dwelling units in such Eligible Real Property; provides that any of the dwelling units in such Eligible Real Property that are not subject to the income and occupancy restrictions established by the Tax Credit Program must be rented, upon vacancy, to persons and families whose incomes do not exceed one hundred sixty-five percent (165%) of area median income; and is recorded against the Eligible Real Property and binds all parties in interest to the Eligible Real Property and their respective successors and assigns. A regulatory agreement may include such other terms and conditions as the City shall determine, including, but not limited to, provisions requiring payments in lieu of taxes.
Tax Credit Program. “Tax Credit Program” shall mean the federal low-income housing tax credit program established pursuant to § 42 of the Code.
Rules. “Rules” shall mean 28 RCNY §§ 31-07 through 31-12.
State. “State” shall mean the State of New York.
Zoning Resolution. “Zoning Resolution” shall mean the Zoning Resolution of the City, as amended.
(Added City Record 8/21/2015, eff. 9/19/2015)
§ 31-08 Eligibility Requirements.
(a) Eligibility. Real Property may be eligible for an exemption from real property taxes as set forth in
28 RCNY §31-11 if:
(1) It is bound by a Regulatory Agreement; and
(2) An Allocation Document has been issued for the Real Property; and
(3) It is owned, at the Application Date and for the duration of such exemption, by an Eligible Owner; and
(4) It constitutes Housing Accommodations for Persons and Families of Low Income as set forth in the Regulatory Agreement or Allocation Document; and
(5) It participates in or has participated in the Tax Credit Program.
(2) If the Allocation Document submitted with the application for the Certificate of Eligibility was either a determination of credit eligibility or a binding reservation for tax credits, then a United States Treasury Form 8609, Part I of which is to be completed by a Housing Credit Agency, must be submitted for the Real Property to the Office within thirty-six months of the Initial Filing Date of the application.
(Added City Record 8/21/2015, eff. 9/19/2015)
§ 31-09 Ineligible Portions of Projects.
Tax exemption is not available for portions of Real Property not used for Housing Accommodations for Persons and Families of Low Income, as determined by the Office.
(Added City Record 8/21/2015, eff. 9/19/2015)
§ 31-10 Application Procedure and Documentation.
(a) Application forms and filing for Certificate of Eligibility. Prescribed forms and applications are available from the Office. All applications must be submitted to the Office on forms approved by the Office.
(1) Original fully completed application form;
(2) Copy of the deed for the Real Property;
(3) Copy of any former and current Regulatory Agreements binding the Real Property to the Tax Credit Program income and other restrictions;
(4) Copy of the Allocation Document for the Real Property;
(5) Copy of the filed Certificate(s) of Incorporation, stock certificates, filed Certificate(s) of Limited Partnership and Limited Liability Companies, and partnership agreements, as applicable, evidencing that the applicant is an Eligible Owner;
(6) Schematic drawings of all proposed or completed buildings or improvements to the Real Property, including all floors thereof, that identify those portions of the Real Property which are not dwelling units and clearly specify (i) areas used for common residential or ancillary residential purposes which qualify as Housing Accommodations for Persons and Families of Low Income and (ii) all areas used for commercial and otherwise ineligible purposes which do not qualify as Housing Accommodations; indicate the square footage of each such space, all drawn to a scale acceptable to the Office which scale is clearly indicated on each drawing, provided, however, that the Office may waive schematics if there is no space not used for dwelling units or other residential purposes;
(7) A copy of the Temporary or Permanent Certificate of Occupancy, if issued;
(8) Written recognition of exemption for the applicable Charitable Organization pursuant to Section 501(c)(3) or Section 501(c)(4) of the Code, from the United States Internal Revenue Service, or any successor agency; and
(9) Any such additional documentation which the Office may require.
(1) The Office shall issue a Certificate of Eligibility for all approved applications.
(2) Failure to produce documentation satisfactory to the Office or failure to comply with these Rules may result in the denial of a Certificate of Eligibility, and rejection of the application.
(3) Notwithstanding the issuance of a Certificate of Eligibility, the tax exemption may be revoked or revised pursuant to 28 RCNY Chapter 39 of this title.
(Added City Record 8/21/2015, eff. 9/19/2015)
§ 31-11 Tax Exemption: Effective Date, Duration and Amount.
(a) Effective date of exemption. Tax exemption under 28 RCNY §§ 31-07 through 31-12
shall commence on the latter of: (i) the date of acquisition of the Eligible Real Property by the Eligible Owner or, (ii) the effective date of a Regulatory Agreement, or (iii) the date of issuance of an Allocation Document, except as follows:
(1) Where Eligible Real Property acquired after January 5 was exempt from Real Property taxation on the date of such transfer, the property shall remain exempt for the balance of the tax year in progress and for the next full tax year.
(2) Where dwelling units in the Real Property were formerly assisted under the Tax Credit Program and the Eligible Owner has agreed to continue to rent such units in accordance with the income and other requirements of the Tax Credit Program, the tax exemption under 28 RCNY §§ 3-07 through 3-12 shall commence on the latter of: (i) the date of acquisition of the Eligible Real Property by the Eligible Owner or, (ii) the effective date of a Regulatory Agreement in which such Eligible Owner has agreed to continue to subject the dwelling units in such Real Property to the restrictions of the Tax Credit Program.
(Added City Record 8/21/2015, eff. 9/19/2015)
§ 31-12 Fees and Declaratory Rulings.
(a) The Office shall charge a filing fee of one hundred dollars ($100) per Application. In addition, there shall be a charge of eighty dollars ($80) per Class A dwelling unit and sixty dollars ($60) per Class B dwelling unit, as applicable, due at the time of issuance of the Certificate of Eligibility. Such fees shall be non-refundable under any circumstances, including, but not limited to, the subsequent revocation or revision of a Certificate of Eligibility.
(Added City Record 8/21/2015, eff. 9/19/2015)
§ 32-01 Scope and Construction.
(a) Scope of Rules. This chapter governs the grant of tax abatement and exemption pursuant to § 421-g of the Real Property Tax Law of the State of New York, including the procedure for filing an application for tax abatement and exemption and the issuance of Certificates of Eligibility by the Office of Tax Incentives of the Department of Housing Preservation and Development. Upon issuance of the Certificate of Eligibility, the calculation and implementation of the tax abatement and exemption are under the jurisdiction of the Department of Finance.
§ 32-02 Definitions.
As used in this chapter, the following terms shall have the following meanings:
Act. “Act” shall mean § 421-g of the Real Property Tax Law.
Aggregate Floor Area. “Aggregate Floor Area” shall mean the sum of the gross areas of the several floors of a building, measured from the exterior faces of exterior walls or from the center lines of walls separating two buildings.
Applicant. “Applicant” shall mean any person obligated to pay real property taxes on the property for which exemption from or abatement of real property taxes under the Act is sought or in the case of exempt property, the record owner or lessee thereof.
Benefit Period. “Benefit Period” shall mean the period of time when a Recipient is eligible to receive benefits pursuant to the Act.
Certificate of Eligibility. “Certificate of Eligibility” shall mean the document issued by the Department certifying a tax lot as eligible for benefits pursuant to the Act.
Class A Multiple Dwelling. “Class A Multiple Dwelling” shall mean a Class A multiple dwelling as defined in § 4 of the Multiple Dwelling Law.
Commencement of Conversion. “Commencement of Conversion” shall mean the date of issuance by the Department of Buildings of a building permit for the conversion of a Non-Residential Building to an Eligible Multiple Dwelling, provided however that such permit is issued on or after July 1, 1995 and no later than June 30, 2007.
Commissioner. “Commissioner” shall mean the Commissioner of Housing Preservation and Development, or his or her designee, or the chief executive officer of any successor agency or department thereto authorized to administer these Rules.
Completion of Conversion. “Completion of Conversion” shall mean the date of issuance by the Department of Buildings of a Temporary or Permanent Certificate of Occupancy for the portion of the building for which an application for a Certificate of Eligibility is filed.
Department. “Department” shall mean the Department of Housing Preservation and Development of the City of New York or any successor agency or department thereto.
Department of Buildings. “Department of Buildings” shall mean the Department of Buildings of the City of New York or any successor agency or department thereto.
Department of Finance. “Department of Finance” shall mean the Department of Finance of the City of New York or any successor agency or department thereto.
Eligible Area. Subject to the Zoning Resolution, the “Eligible Area” in which tax benefits pursuant to the Act for Eligible Multiple Dwellings are available shall mean the area in the borough of Manhattan bounded by Murray Street on the north starting at the intersection of West Street and Murray Street; running easterly along the center line of Murray Street; connecting through City Hall Park with the center line of Frankfort Street and running easterly along the center lines of Frankfort and Dover Streets to the intersection of Dover Street and South Street; running southerly along the center line of South Street to Peter Minuit Plaza; connecting through Peter Minuit Plaza to the center line of State Street and running northwesterly along the center line of State Street to the intersection of State Street and Battery Place; running westerly along the center line of Battery Place to the intersection of Battery Place and West Street; and running northerly along the center line of West Street to the intersection of West Street and Murray Street. Any tax lot which is located partly inside the Eligible Area shall be deemed to be located entirely inside such area.
Eligible Multiple Dwelling. “Eligible Multiple Dwelling” shall mean a Class A multiple dwelling, except a Hotel, created from conversion of a Non-Residential Building, provided, however, that such multiple dwelling is located within the Eligible Area, and provided further, however, that the Aggregate Floor Area of Commercial, Community Facility and Accessory Use Space within such multiple dwelling does not exceed twenty-five per cent (25%) of the Aggregate Floor Area of such multiple dwelling.
Exempt Dwelling Unit. “Exempt Dwelling Unit” shall mean a dwelling unit exempt from rent regulation or deregulated pursuant to the Rent Regulation Reform Act of 1993, the Rent Regulation Reform Act of 1997, Local Law 4 of 1994, or by reason of the condominium or cooperative status of the dwelling unit.
Floor Area of Commercial, Community Facility and Accessory Use Space. “Floor Area of Commercial, Community Facility and Accessory Use Space” shall mean the gross horizontal areas of all space in a multiple dwelling or dwellings designated for commercial or community facility or accessory uses (as defined in § 12-10 of the Zoning Resolution). Home occupation space within dwelling units shall not be counted as accessory use space.
Hotel. “Hotel” shall mean (i) any Class B multiple dwelling, as such term is defined in the Multiple Dwelling Law, (ii) any structure or part thereof containing living or sleeping accommodations which is used or intended to be used for transient occupancy, (iii) any apartment hotel or transient hotel as defined in the Zoning Resolution, or (iv) any structure or part thereof which is used to provide short term rentals or owned or leased by an entity engaged in the business of providing short term rentals. For purposes of this definition, a lease, sublease, license or any other form of rental agreement for a period of less than six months shall be deemed to be a short term rental. Notwithstanding the foregoing, a structure or part thereof owned or leased by a not-for-profit corporation for the purpose of providing governmentally funded emergency housing shall not be considered a hotel for purposes of this chapter.
Landmark. “Landmark” shall mean a structure designated a landmark or a structure in a historic district designated by the Landmarks Preservation Commission of the City of New York or any successor commission, agency or department thereto.
Non-Residential Building. “Non-Residential Building” shall mean a structure or portion of a structure having at least one floor, a roof and at least three walls enclosing all or most of the space used in connection with the structure or portion of the structure, and which has a Certificate of Occupancy for commercial, manufacturing or other non-residential use for not less than ninety per cent (90%) of the aggregate floor area of such structure or portion of such structure, or other proof of such non-residential use as is acceptable to the Department.
Office. “Office” shall mean the Office of Tax Incentives of the Department or any successor thereto.
Person. “Person” shall mean an individual, corporation, limited liability company, partnership, association, agency, trust, estate, foreign or domestic government or subdivision thereof, or other entity.
Recipient. “Recipient” shall mean an applicant to whom a Certificate of Eligibility has been issued pursuant to the Act or the successor in interest of such applicant, provided that where a person who has entered into a lease or purchase agreement with the owner or lessee of exempt property has been a co-applicant, such person or the successor in interest of such person shall be deemed the Recipient.
Rules. “Rules” shall mean this chapter of the Rules of the City of New York.
Temporary Certificate of Occupancy. “Temporary Certificate of Occupancy” shall mean, for the purpose of establishing eligibility pursuant to the Act, a Temporary Certificate of Occupancy issued by the Department of Buildings for all of the dwelling units in an Eligible Multiple Dwelling for which benefits pursuant to the Act are sought.
Zoning Resolution. “Zoning Resolution” shall mean the Zoning Resolution of the City of New York.
§ 32-03 Application Procedure, Documentation, Filing Fees.
(a) Application Forms. All applications shall be submitted to the Department by the March 31 immediately following the first taxable status date following Completion of Conversion on such form or forms as shall be prescribed by the Department. All application forms may be obtained from the Department of Housing Preservation and Development, Office of Tax Incentives, 100 Gold Street, New York, NY 10038. Only applications complete in all detail shall be considered for a Certificate of Eligibility. All forms must be filled out fully and legibly by the applicant and shall be typewritten or inscribed in permanent ink. An application shall consist of the following:
(1) A copy of the pre-construction Certificate of Occupancy, or, if no such Certificate of Occupancy is available, a letter from the Department of Buildings establishing the pre-conversion use of the Non-Residential Building, or other proof that the Eligible Multiple Dwelling was a Non-Residential Building prior to conversion.
(2) A copy of the new Temporary or Permanent Certificate of Occupancy issued as a result of the conversion of a Non-Residential Building to an Eligible Multiple Dwelling. The new Temporary or Permanent Certificate of Occupancy must be issued by the Department of Buildings by the taxable status date in order for the Eligible Multiple Dwelling to receive tax benefits the following tax year.
(3) (i) If the Eligible Multiple Dwelling shall be owned as a cooperative or condominium: a copy of the prospectus or offering plan which has been accepted for filing by the Attorney General (if required by law), and all subsequent amendments which become effective prior to the time the Office issues a Certificate of Eligibility. If the prospectus or offering plan has not yet been approved by the Attorney General, a statement by the owner that if the prospective cooperative or condominium plan has not been declared effective for filing at a time fifteen months after the issuance of a Certificate of Eligibility, that such owner will register the rental units with the New York State Division of Housing and Community Renewal no later than fifteen calendar days after such fifteen month period or
(ii) If the Eligible Multiple Dwelling shall be owned as a rental building:
(A) evidence satisfactory to the Office that the owner of rental dwelling units has registered all dwelling units in the Eligible Multiple Dwelling other than Exempt Dwelling Units with the New York State Division of Housing Community and Renewal or
(B) if the Eligible Multiple Dwelling is not registered at the time of issuance of a Certificate of Eligibility, an affidavit, on a form approved by the Office, stating that the owner shall register all units other than Exempt Dwelling Units as they become occupied and shall submit proof of registration thereof.
(4) A copy of one set of plans covering the Eligible Multiple Dwelling approved by the Department of Buildings, as evidenced by a seal of the Department of Buildings thereon or an architect’s affidavit that such plans are so approved.
(5) A copy of the Department of Buildings “Plan Work Approval Application” (PW-1), with the “Schedule A – Occupancy/Use” (PW-1A), the “Work Permit Application” (PW-2), and the approved building permit or equivalent, as required by the Department of Buildings.
(6) A copy of the dated revised tax map approved by the Department of Finance if applicable. A complete application for a revised tax map for the Eligible Multiple Dwelling must be filed with the Department of Finance no later than December first of the year preceding the commencement of the Benefit Period.
(7) A computer printout from the Department of Finance and the Department of Environmental Protection (for water & sewer charges) listing outstanding charges on the Eligible Multiple Dwelling owed to the City. If outstanding charges on the Eligible Multiple Dwelling are owed to the City at time of application, the Applicant must provide proof of payment or evidence that the outstanding charges are being paid in timely installments pursuant to a written agreement with the Department of Finance or other appropriate agency.
(8) An affidavit, in the form approved by the Office, setting forth the following information:
(i) a statement that within seven years immediately preceding the date of application for a Certificate of Eligibility, neither the Applicant, nor any person owning a substantial interest in the property (as herein defined as ownership and control of an interest of ten per cent (10%) or more in property or any Person owning a property), nor any officer, director, or general partner of the applicant or such person was finally adjudicated by a court of competent jurisdiction to have violated § 235 of the Real Property Law or any section of Article 150 of the Penal Law or any similar arson law of another jurisdiction with respect to any building, or was an officer, director, or general partner of a Person at the time such Person was finally adjudicated to have violated such law; and
(ii) a statement setting forth any pending charges alleging violation of § 235 of the Real Property Law or any section of Article 150 of the Penal Law or any similar arson law of another jurisdiction with respect to any building by the applicant or any Person owning a substantial interest (as defined above) in the property, or any officer, director, or general partner of the Applicant or such Person, or any Person for whom the applicant or person owning a substantial interest in the property is an officer, director or general partner.
(9) A statement that the applicant agrees to comply with and be subject to the Rules promulgated by the Department of Finance and the Department to secure compliance with the Act and all applicable local, state, and federal laws.
(10) Such application shall also certify that all taxes, water charges and sewer rents currently due and owing on the property which is subject of the application have been paid or are currently being paid in timely installments pursuant to written agreement with the Department of Finance or other appropriate agency.
(1) In addition to any other qualifications for benefits pursuant to the Act, the Applicant must be:
(i) obligated to pay real property tax on the property for which benefits are sought, whether such obligation arises because of record ownership of such property or because the obligation to pay such tax has been assumed by contract; or
(ii) the record owner or lessee of property which is exempt from real property taxation who has entered into an agreement to sell or lease such property to another person. Such person shall be a co-applicant with such owner or lessee.
(2) A co-applicant with a public entity shall be eligible to receive benefits pursuant to the Act, provided that for such period as the property that is the subject of the Certificate of Eligibility is exempt from real property taxation because it is owned or controlled by a public entity no benefits shall be available to such Recipient pursuant to the Act. Such Recipient shall receive benefits pursuant to the Act when such property ceases to be eligible for exemption pursuant to other provisions of law, as follows: the Recipient shall, commencing with the date such tax exemption ceases, and continuing until the expiration of the Benefit Period pursuant to the Act, receive the benefits to which such Recipient is entitled in the corresponding tax year pursuant to the Act.
(3) The burden of proof shall be on the applicant to show by clear and convincing evidence that the requirements for granting benefits under the Act have been satisfied. The Department shall have the authority to require that statements in connection with the application shall be made under oath.
(1) Non-Residential Buildings of less than 100,000 square feet of Aggregate Floor Area
(i) In a non-residential building of less than 100,000 square feet of Aggregate Floor Area; Completion of Conversion to an Eligible Multiple Dwelling of at least seventy-five per cent (75%) of the Aggregate Floor Area of such Non-Residential Building, as evidenced by a Temporary or permanent Certificate of Occupancy, must take place within three years of Commencement of Construction.
(ii) Only the Aggregate Floor Area for which conversion is completed within such three year period shall be considered in calculating the exemption and abatement provided pursuant to the Act.
(2) Non-Residential Buildings of 100,000 square feet or more of Aggregate Floor Area
(i) In a Non-Residential Building of 100,000 square feet or more of Aggregate Floor Area, Completion of Conversion to an Eligible Multiple Dwelling of at least seventy-five per cent (75%) of the Aggregate Floor Area of such Non-Residential Building, as evidenced by a Temporary or permanent Certificate of Occupancy, must take place within five years of Commencement of Conversion, provided, however, that Completion of Conversion to an Eligible Multiple Dwelling of at least fifty per cent (50%) of the Aggregate Floor Area of such Non-Residential Building must take place within three years of Commencement of Conversion.
(ii) Proof of completion of partial conversion within three years shall be submitted with an application for a Certificate of Eligibility for full exemption and abatement benefits pursuant to the Act.
(iii) Only the Aggregate Floor Area for which conversion is completed within the five-year period specified in 28 RCNY § 32-03(c)(2)(i) or, in the case of partial exemption from or partial abatement of real property taxes, the three-year period specified in 28 RCNY § 32-04(b)(3), shall be considered in calculating the exemption and abatement provided pursuant to the Act, provided, however, that neither partial exemption from nor partial abatement of real property taxes shall be available for Commercial, Community Facility or Accessory Use Space.
(1) In a Non-Residential Building of less than 100,000 square feet of Aggregate Floor Area containing a separately assessed non-residential parcel, the Aggregate Floor Area of such separately assessed non-residential parcel shall not be considered in determining whether seventy-five per cent (75%) of the Aggregate Floor Area of such Non-Residential Building has been converted to an Eligible Multiple Dwelling.
(2) In a Non-Residential Building of 100,000 square feet or more of Aggregate Floor Area containing a separately assessed non-residential parcel, the Aggregate Floor Area of such separately assessed non-residential parcel shall not be considered in determining whether seventy-five per cent (75%) or, in the case of partial exemption from or partial abatement of real property taxes, fifty per cent (50%) of the Aggregate Floor Area of such Non-Residential building has been converted to an Eligible Multiple Dwelling.
(3) Commercial Reduction of Benefits:
(i) If the Aggregate Floor Area of Commercial, Community Facility and Accessory Use Space exceeds twelve per cent (12%) of the Aggregate Floor Area of any building (Eligible Multiple Dwelling) receiving benefits pursuant to the Act, the benefits provided pursuant to the Act shall be equal to the amount provided by 28 RCNY § 32-04(b)(1) and (b)(2), reduced by a percentage equal to the difference between the per centum of the Aggregate Floor Area that is Commercial, Community Facility and Accessory Use Space and twelve per cent (12%).
(ii) If the Aggregate Floor Area of such building (Eligible Multiple Dwelling) contains more than twenty-five per cent (25%) of Commercial, Community Facility and Accessory Use Space no benefits shall be available pursuant to the Act.
(iii) If a building contains a separately assessed non-residential parcel, the Aggregate Floor Area of such parcel shall not be considered in calculating the Aggregate Floor Area of Commercial, Community Facility and Accessory Use Space relevant to determining eligibility for and amount of benefits pursuant to the Act.
(1) Application Fee: A non-refundable application fee of one thousand five hundred dollars ($1,500) plus two hundred and fifty dollars ($250) per dwelling unit, not to exceed twenty five thousand dollars ($25,000) per application shall be paid at the time of application. For applications received prior to the effective date of these Rules, the application fee shall be paid at the time of issuance of a Certificate of Eligibility. No applications received after the effective date of these Rules will be accepted by the Department without the application fee. For Eligible Multiple Dwellings of 100,000 square feet or more of Aggregate Floor Area applying for partial benefits, each subsequent submission after the initial application shall be accompanied by a non-refundable fee of two thousand five hundred ($2,500) dollars. Such fee shall be non-refundable under any circumstances, including but not limited to the subsequent revocation or revision of a Certificate of Eligibility.
(2) A declaratory ruling with respect to an analysis of a specific fact pattern, document or organizational structure or an interpretation of the applicability of a specific provision of the Act or Rules to an actual or hypothetical site, project, fact pattern, document or organizational structure or any other issue related to eligibility may be given by the Office upon payment of a non-refundable fee of one thousand five hundred ($1,500) dollars payable at the time such declaratory ruling is requested in writing. In no event shall a prior ruling bind the Office as to the overall eligibility of a project for benefits pursuant to the Act.
(3) Payment of the fees required by paragraphs (1) and (2) of this subdivision shall be made by a certified or cashier’s check payable to the New York City Department of Finance.
(4) Paragraphs (1) and (3) of this subdivision shall take effect in accordance with subdivision e of § 1043 of the Charter and shall be retroactive to and deemed to have been in full force and effect on and after April 1, 1997.
§ 32-04 Effective Date, Duration of Exemption and Abatement, Implementation Procedure with the Department of Finance.
(a) Effective Date of Abatement and Exemption. Tax benefits issued pursuant to the Act shall begin the July 1 following the issuance of a Certificate of Eligibility by the Department, provided that:
(1) an application for tax benefits must be received by the Department by the close of business on the March 31 following the first taxable status date following Completion of Conversion. An application for partial tax exemption and abatement benefits for Non-Residential Buildings of 100,000 square feet or more of Aggregate Floor Area must be received by the close of business on the March 31 following the first taxable status date following the partial Completion of Conversion, and
(2) a Temporary Certificate of Occupancy or Certificate of Occupancy is issued by the Department of Buildings by the prior taxable status date, and
(3) for applications received after March 31, 1997, the applicant has submitted evidence that the Department of Finance has approved the final tax lots for those tax lots subject to the benefits pursuant to the Act by the prior taxable status date, if lot apportionment is required.
(1) Duration of Exemption.
(i) Eligible Multiple Dwellings not designated as a Landmark prior to Completion of Conversion: a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act shall be exempt from real property taxation for local purposes, other than assessments for local improvements, on the amount of the assessed value attributable exclusively to the physical improvement, for a period not to exceed twelve consecutive years beginning in the tax year immediately following the issuance of a Certificate of Eligibility, so long as such Eligible Multiple Dwelling is used or held out for use for dwelling purposes, except as otherwise provided herein. During the first eight years, the exemption shall equal the amount of the assessed value attributable exclusively to the physical improvement. During the ninth year, the exemption shall equal eighty per cent (80%) of such amount; during the tenth year, the exemption shall equal sixty per cent (60%) of such amount; during the eleventh year, the exemption shall equal forty per cent (40%) of such amount; and during the twelfth year, the exemption shall equal twenty per cent (20%) of such amount.
(ii) Eligible Multiple Dwellings designated as a Landmark before Completion of Conversion: a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act, and that is in a building that, in accordance with procedures set forth in local law, was designated as a Landmark before Completion of Conversion shall be exempt from real property taxation for local purposes, other than assessments for local improvements, on the amount of the assessed value attributable exclusively to the physical improvement, for a period not to exceed thirteen consecutive years beginning in the tax year immediately following the issuance of a Certificate of Eligibility, so long as such Eligible Multiple Dwelling is used or held out for use for dwelling purposes, except as otherwise provided herein. During the first nine years, the exemption shall equal the amount of the assessed value attributable exclusively to the physical improvement. During the tenth year, the exemption shall equal eighty per cent (80%) of such amount; during the eleventh year, the exemption shall equal sixty per cent (60%) of such amount; during the twelfth year, the exemption shall equal forty per cent (40%) of such amount; and during the thirteenth year, the exemption shall equal twenty per cent (20%) of such amount.
(2) Duration of Abatement.
(i) Eligible Multiple Dwellings not designated as a Landmark prior to Completion of Conversion: in addition to the benefits set forth in 28 RCNY § 32-04(b)(1)(i), a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act shall receive an abatement of real property taxes for a period not to exceed fourteen consecutive years beginning in the tax year immediately following the issuance of a Certificate of Eligibility, so long as such Eligible Multiple Dwelling is used or held out for use for dwelling purposes, except as otherwise provided herein. During the first year, the abatement shall be equal to the amount of the real property tax that would have been due but for such abatement, provided, however, that if the tax lot, during the first year of such abatement, was fully or partially exempt from real property taxes, other than pursuant to the exemption authorized by the Act, then the abatement shall equal the amount of real property tax that would have been due but for such full or partial exemption. During the second through tenth years, the abatement shall equal one hundred per cent (100%) of such amount; during the eleventh year, the abatement shall equal eighty per cent (80%) of such amount; during the twelfth year, the abatement shall equal sixty per cent (60%) of such amount; during the thirteenth year, the abatement shall equal forty per cent (40%) of such amount, and during the fourteenth year, the abatement shall equal twenty per cent (20%) of such amount.
(ii) Eligible Multiple Dwellings designated a Landmark prior to Completion of Conversion: in addition to the benefits set forth in 28 RCNY § 32-04(b)(1)(ii), a tax lot containing an Eligible Multiple Dwelling that is the subject of a Certificate of Eligibility issued pursuant to the Act and that is in a building that, in accordance with procedures set forth in local law, was designated as a Landmark before Completion of Conversion shall receive an abatement of real property taxes for a period not to exceed fifteen consecutive years beginning in the tax year immediately following the issuance of a Certificate of Eligibility, so long as such Eligible Multiple Dwelling is used or held out for use for dwelling purposes, except as otherwise provided herein. During the first year, the abatement shall be equal to the amount of the real property tax that would have been due but for such abatement, provided, however, that if the tax lot, during the first year of such abatement, was fully or partially exempt from real property taxes, other than pursuant to the exemption authorized by the Act, then the abatement shall equal the amount of the real property tax that would have been due but for such full or partial exemption. During the second through eleventh years, the abatement shall equal one hundred per cent (100%) of such amount; during the twelfth year, the abatement shall equal eighty per cent (80%) of such amount; during the thirteenth year, the abatement shall equal sixty per cent (60%) of such amount; during the fourteenth year, the abatement shall equal forty per cent (40%) of such amount, and during the fifteenth year, the abatement shall equal twenty per cent (20%) of such amount. The following table shall illustrate the computation of the exemption and abatement pursuant to this subsection:
| Tax Year Following Date of Issuance of Certificate of Eligibility | Landmarked Eligible Multiple Dwellings | Non-Landmarked Eligible Multiple Dwellings | ||
|---|---|---|---|---|
| Exemption | Abatement | Exemption | Abatement | |
| 1 | 100% | 100% | 100% | 100% |
| 2 | 100% | 100% | 100% | 100% |
| 3 | 100% | 100% | 100% | 100% |
| 4 | 100% | 100% | 100% | 100% |
| 5 | 100% | 100% | 100% | 100% |
| 6 | 100% | 100% | 100% | 100% |
| 7 | 100% | 100% | 100% | 100% |
| 8 | 100% | 100% | 100% | 100% |
| 9 | 100% | 100% | 80% | 100% |
| 10 | 80% | 100% | 60% | 100% |
| 11 | 60% | 100% | 40% | 80% |
| 12 | 40% | 80% | 20% | 60% |
| 13 | 20% | 60% | 0% | 40% |
| 14 | 0% | 40% | 0% | 20% |
| 15 | 0% | 20% | 0% | 0% |
~
(3) Partial Benefits for Buildings of 100,000 square feet or more
(i) In a Non-Residential Building of 100,000 square feet or more of Aggregate Floor Area in which Completion of Conversion to an Eligible Multiple Dwelling of at least fifty per cent (50%) of the Aggregate Floor Area of such Non-Residential Building has taken place within three years of Commencement of Conversion, and which is the subject of a Certificate of Eligibility for partial exemption and partial abatement issued pursuant to the Act, partial exemption and partial abatement of real property taxes shall be available, as follows:
(A) partial exemption benefits shall equal the amount of the assessed value attributable exclusively to the physical improvement resulting from the conversion of at least fifty per cent (50%) of the Aggregate Floor Area of the Non-Residential Building that has received a Temporary Certificate of Occupancy and
(B) partial abatement benefits shall be equal to the amount of the real property tax that would have been due during the first year of such partial abatement but for such partial abatement upon the amount of square feet of Aggregate Floor Area of the Non-Residential Building that has received a Temporary Certificate of Occupancy for conversion of at least fifty per cent (50%) of the Aggregate Floor Area of the Non-Residential Building, provided, however, that if the tax lot, during the first year of such partial abatement was fully or partially exempt from real property taxes, other than pursuant to the exemption authorized by the Act, then the partial abatement shall be equal to the amount of real property tax that would have been due upon such amount of square feet of Aggregate Floor Area of the Non-Residential Building but for such full or partial exemption. Nothing in this paragraph shall be deemed to require an Applicant to apply for partial exemption or abatement benefits pursuant to the Act, provided, however, that if an applicant applies for a Certificate of Eligibility for such benefits, he or she shall submit proof of completion of partial conversion with the application for such certificate.
(ii) The Benefit Period of the exemption and abatement benefits defined in 28 RCNY § 32-04(b) shall begin upon receipt of any partial exemption from or partial abatement of real property taxes for a Non-Residential Building of 100,000 square feet or more of Aggregate Floor Area.
(4) Benefit Reduction for Non-Residential Space. If the Aggregate Floor Area of Commercial, Community Facility and Accessory Use Space exceeds twelve per cent (12%) of the Aggregate Floor Area of any building receiving benefits pursuant to the Act, the abatement and exemption benefit shall be reduced according to the procedure set forth in 28 RCNY § 32-03(d)(3).
(5) Benefits granted under the Act may not be combined with benefits under any other section of the Real Property Tax Law or any local law or any Rule promulgated thereunder for the same tax lot.
§ 32-05 Rent Regulation.
(a) Applicability of Rent Regulation: Notwithstanding the provisions of the City Rent and Rehabilitation Law (§§ 26-401 et seq. of the Administrative Code), as amended; or the Rent Stabilization Law of 1969 (§§ 26-501 et seq. of the Administrative Code), as amended; or the Emergency Tenant Protection Act of 1974, as amended, the rents of each dwelling unit in an Eligible Multiple Dwelling, except Exempt Dwelling Units, shall be fully subject to control under such local laws and act for the entire period for which the Eligible Multiple Dwelling is receiving benefits pursuant to the Act. An Eligible Multiple Dwelling receiving benefits pursuant to the Act whose benefits are suspended, terminated or revoked by the Department shall be deemed to be receiving benefits for the length of time such benefits would have been received if such benefits had not been suspended, terminated or revoked, or for the period such local law is in effect, whichever is shorter.
§ 33-01 General Provisions.
(a) Definitions.
(1) “Agency Activity” shall mean the making of any Disposition, the provision of any Assistance, or the execution of any agreement regarding Disposition or Assistance by the Agency in connection with a Project.
(2) “Administrative Code” shall mean the Administrative Code of the City.
(3) “Agency” shall mean the City’s Department of Housing Preservation and Development and any successor agency.
(4) “Applicant” shall mean any potential Sponsor of a Project, without regard to the method used by the Agency to select the Sponsor for such Project, including, but not limited to, any person or entity which has submitted or might potentially submit a qualification statement, proposal, bid, application, or other submission.
(5) “Assistance” shall mean funds or other items of value provided by the Agency to a Sponsor in order to enable such Sponsor to perform Project Activities. Assistance may be made available to Sponsors in any form permitted by applicable Law which is determined by the Agency to be necessary or desirable, including, but not limited to, Loans and Subsidies.
(6) “Authorization Letter” shall mean a letter authorizing an Applicant or Selected Applicant to apply for funding to a potential public or private financing institution for the development of one or more Project(s) on one or more Site(s).
(7) “Binding Agreement” shall mean a legally binding written agreement between a Sponsor and the City which (i) requires such Sponsor to perform or be responsible for the performance of Project Activities in connection with a Project, (ii) has been approved by the Governing Body, if such approval is required by applicable Laws, (iii) has been approved as to form by the Law Department, and (iv) has been duly executed by all parties whose execution of such agreement is required to make such agreement legally enforceable; provided, however, that a net lease, lease, or license agreement between the City and an Applicant or Selected Applicant with regard to possession of or the right to enter all or part of a Site during the term of negotiations regarding a Project or prior to the Disposition of a Site shall not be deemed to be a Binding Agreement.
(8) “City” shall mean the City of New York.
(9) “City Housing Goals” shall mean the purposes set forth in 28 RCNY § 33-01(c).
(10) “Commissioner” shall mean the Commissioner of the Agency or his or her designee.
(11) “Disposition” shall mean the conveyance of fee title or any other real property interest in a Site from the City to a Sponsor. Such real property interests shall include, but shall not be limited to, ground leases, easements, future interests, and other conveyances of less than the entire fee title to a Site. Notwithstanding anything herein to the contrary, such real property interests shall not include any interests conveyed at mortgage foreclosure sales, utility easements, leases entered into by the Agency’s Office of Housing Management and Sales, transfers of Jurisdiction over a Site from one City agency to another, or licenses.
(12) “EO Clearance” shall mean that (i) an Applicant, Selected Applicant, or Sponsor and its principals (and, where the Agency deems such additional review to be appropriate, the contractors retained by such Applicant, Selected Applicant, or Sponsor and all of their respective principals) have completed, executed, and submitted the required forms to and attended any required meetings with the Agency’s Office of Equal Opportunity, and (ii) the Agency’s Office of Equal Opportunity, after review of such information and any other available information, has made no finding of noncompliance with the applicable Laws regarding equal opportunity, labor compensation, locally based enterprises, and other matters monitored by the Agency’s Office of Equal Opportunity.
(13) “Governing Body” shall mean the Mayor and/or the City Council, acting singly or in combination in accordance with the powers vested in them by the City Charter.
(14) “GML” shall mean the General Municipal Law of the State of New York.
(15) “Grant” shall mean a grant made by the City to a Sponsor for Project Activities pursuant to Article 16 of the GML.
(16) “IG Clearance” shall mean that (i) an Applicant, Selected Applicant, or Sponsor and its principals (and, where the Agency deems such additional review to be appropriate, the contractors retained by such Applicant, Selected Applicant, or Sponsor and all of their respective principals) have completed, executed, and submitted the required forms to and attended any required meetings with the Department of Investigation’s Office of the Inspector General and/or the Agency’s Sponsor Review Unit, as the case may be, and (ii) the Department of Investigation’s Office of the Inspector General and/or the Agency’s Sponsor Review Unit, as the case may be, after review of such information and any other available information, has made no finding of derogatory information which indicates that the City should not do business with such party.
(17) “Laws” shall mean any applicable laws, ordinances, orders, rules, and regulations promulgated by any local, state, or federal authority having jurisdiction over the subject matter thereof, as amended from time to time.
(18) “Law Department” shall mean the City’s Law Department and any successor agency, or its designee.
(19) “Loan” shall mean a loan made by the City to a Sponsor for Project Activities.
(20) “Negotiation Letter” shall mean a letter informing a Selected Applicant that the Agency will commence negotiations with such Selected Applicant regarding a Project.
(21) “PHFL” shall mean the Private Housing Finance Law of the State of New York.
(22) “Program” shall mean two or more Projects which (i) share the same funding source, Sponsor, grantee, or borrower, or otherwise provide for similar treatment of multiple Sites, and (ii) are deemed by the Agency to constitute a Program.
(23) “Project” shall mean a project which involves Disposition and/or Assistance by the City to a Sponsor pursuant to these Rules for Project Activities to be performed at any Site.
(24) “Project Activity” shall mean any activity performed, caused to be performed, or required to be performed by the Sponsor in connection with a Project, including, but not limited to, the acquisition, design, rehabilitation, construction, improvement, and/or marketing of a Site.
(25) “RFP” shall mean a Request for Proposals.
(26) “RFQ” shall mean a Request for Qualifications.
(27) “RPTL” shall mean the Real Property Tax Law of the State of New York.
(28) “Rules” shall mean these rules.
(29) “Selected Applicant” shall mean an Applicant selected or approved by the Agency to enter into negotiations with the Agency regarding a Project.
(30) “Site” shall mean the real property and improvements, if any, located in New York City which are the subject of a Project performed pursuant to these Rules.
(31) “Sponsor” shall mean an Applicant or Selected Applicant, or an entity formed by an Applicant or Selected Applicant and approved by the Agency, which has executed one or more Binding Agreement(s) with the Agency. Unless the Agency elects to limit the types of entities which may serve as Sponsor for a Project, a Sponsor may be an individual, corporation, partnership, joint venture, or any other entity permitted by Law.
(32) “Subsidy” shall mean any Assistance by the Agency which is intended to reduce the cost of a Project to its Sponsor. Subsidy may be made available to Sponsors in any form permitted by applicable Law which is determined by the Agency to be necessary or desirable, including, but not limited to, (i) Grants, (ii) real property sale prices which are nominal or are otherwise below the fair market value of such Sites, (iii) Loans at no interest or nominal interest or at interest rates below the prevailing private sector interest rates for similar loans, (iv) Loans which provide for payment or other terms which are more favorable than the prevailing private sector terms for similar loans, (v) Loans which provide that principal and/or interest may be written down or otherwise forgiven, (vi) Tax Benefits, (vii) contractual agreements to provide funding, (viii) waiver or forgiveness of City deposits, fees, charges, taxes, liens, or rights to receive payment, (ix) construction or funding by the City of infrastructure or other improvements which are customarily paid for by real estate developers, (x) rental subsidy assistance administered by the City under the Section 8 Housing Voucher or Certificate Program or any other rental subsidy programs, and (xi) any other Assistance permitted by Law.
(33) “Tax Benefit” shall mean a tax abatement, exemption, or waiver granted by the City to a Sponsor in connection with a Project. For the purposes of the preceding sentence, “tax” shall mean City real property taxes and assessments, City water and sewer charges, City and state taxes on the transfer of real property, recording taxes and fees, and any other tax or governmental imposition which a Sponsor may be required to pay in connection with a Project.
(1) General. The Agency may make Dispositions and provide Assistance to Sponsors for the purposes and in accordance with the procedures described in these Rules.
(2) Site Selection. The Agency may from time to time select Sites for Projects. The provisions regarding the selection of Sites are contained in 28 RCNY § 33-02.
(3) Sponsor Selection. The Agency may from time to time select Sponsors for Projects through any competitive or non-competitive process authorized by applicable Law which the Agency deems to be in the best interest of the City, including, but not limited to, direct negotiation, RFQ, RFP, competitive bidding, public bidding, auction, and selection by entities other than the Agency. For Projects involving privately owned Sites, notwithstanding any provision of these Rules to the contrary, the Sponsor and Site may be selected together by any such process and the Agency may consider the characteristics of the Site in addition to any other selection criteria. The provisions regarding the selection of Sponsors are contained in 28 RCNY § 33-03.
(4) Negotiations. The Agency may commence, conduct, and/or terminate negotiations with Applicants and/or Selected Applicants. During such negotiations, subject to approval of the Governing Body, where such approval is required by Law, the City may lease or net lease Sites to Applicants and/or Selected Applicants which have complied with all terms of the applicable selection process, applicable Laws, these Rules, and any and all agreements pertaining thereto. The provisions regarding negotiations with Applicants and Selected Applicants are contained in 28 RCNY § 33-04.
(5) Disposition. Subject to approval of the Governing Body, the City may convey Sites to Sponsors which have complied with all terms of the applicable selection process, applicable Laws, these Rules, and any and all agreements pertaining thereto. The provisions regarding Disposition of Sites are contained in 28 RCNY § 33-05.
(6) Assistance. The City may provide Assistance to Sponsors in order to facilitate Project Activities in such amounts and types as are determined by the Agency to be necessary or desirable. The provisions regarding Assistance are contained in 28 RCNY § 33-06.
(7) Project Operation. The Agency may require Sponsors to operate Sites in accordance with regulatory agreements entered into with the Agency. The provisions regarding Project operation are contained in 28 RCNY § 33-07.
§ 33-02 Site Selection.
(a) General. This Article sets forth procedures for the selection of Sites for Projects. Such determinations shall be made by the Agency, in accordance with the procedures set forth herein, for the purposes of ascertaining whether a Site meets the requirements of a Project and applicable Laws, achieving the City Housing Goals, and protecting and furthering the best interests of the City.
(1) The physical conditions or economic characteristics of the Site make it appropriate for the treatment afforded by the Project.
(2) The Site requires more private investment and/or less Assistance than would be provided under any other appropriate Project or Program, and the Project permits the treatment of the Site with such level of private investment or Assistance.
(3) The Site requires less private investment and/or more Assistance than would be provided under any other appropriate Project or Program, and the Project permits the treatment of the Site with such level of private investment or Assistance.
(4) The Site possesses unique features which make the treatment afforded by the Project necessary or desirable.
(5) The Project addresses a housing need which has not been and is not likely to be fully alleviated by the operations of the private housing market, and the Site is appropriate for inclusion in the Project.
(6) The Project would return the Site to private ownership and/or private management.
(7) The interest of one or more private parties in the Site creates special opportunities to develop the Site in unique and beneficial ways, including, but not limited to, ways which provide housing for persons with special needs, maximize City revenue, permit development with less Assistance than would be required if the Site were in another Project or Program, permit production of a greater number of units or a greater proportion of lower income units than would be produced if the Site were in another Project or Program, and/or permit development of more ancillary open space or other public facilities.
(8) The Site is not City-owned and the owner, or an authorized representative of the owner, has applied to the Agency, pursuant to any process authorized by these Rules, other rules of the Agency, or applicable Law, to have the Site included in a Project which would serve the City Housing Goals.
(9) The inclusion of the Site in the Project would serve any of the City Housing Goals.
§ 33-03 Sponsor Selection.
(a) General. This Article sets forth procedures for the selection of Sponsors for Projects. Such determinations shall be made by the Agency, in accordance with the procedures set forth herein, for the purposes of ascertaining whether a potential Sponsor meets the requirements of a Project and applicable Laws, achieving the City Housing Goals, and protecting the best interests of the City. The Agency may select a Sponsor for a Project by any method permitted by Law which it determines will best meet the Project's objectives and the City Housing Goals, including, but not limited to, direct negotiation, RFQ, RFP, competitive bidding, public bidding, auction, selection by entities other than the Agency, and application. For Projects involving privately owned Sites, notwithstanding any provision of these Rules to the contrary, the Sponsor and Site may be selected together by any such method and the Agency may consider the characteristics of the Site in addition to any other selection criteria.
(1) Issuance. The Agency may issue RFQs for Projects at any time it deems appropriate and desirable.
(2) Distribution.
(i) Notice. At such time as the Agency issues an RFQ for a Project, the Agency may place advertisements in The City Record and/or such other publications as the Agency shall deem appropriate. The Agency may also mail copies of such advertisement to potential Applicants, including, but not limited to, Applicants who have done prior business with the Agency or who have requested to be on a mailing list for such purpose. The advertisement shall include, at a minimum, a short description of the Project or Program, the place a copy of the RFQ can be obtained and the fee, if any, therefor, and the deadline for submission of qualification statements and the fee, if any, therefor.
(ii) Availability. A copy of the RFQ shall be made available to all potential Applicants prior to the submission deadline. The Agency shall require all recipients of any RFQ to identify themselves and shall cause a list of recipients to be maintained, which list shall in no event be furnished to any non-governmental party prior to the conclusion of the selection process. The Agency may charge a fee, in an amount to be determined by the Agency, for a copy of the RFQ.
(iii) Amendments. The Agency may issue amendments to the RFQ at any time prior to the submission deadline. The Agency shall provide copies of such amendments to all recipients of the RFQ.
(3) Public Information.
(i) Conference. Prior to the submission deadline, the Agency may, but shall not be required to, hold an open conference where Agency staff answer questions about submission and Project requirements. The time and place for such conference, if any, shall be indicated in the RFQ and/or any advertisement.
(ii) Agency Contacts. Agency staff shall be available during the submission period by telephone and/or in person to answer general questions about the RFQ. The Agency may require that contact with agency personnel by prospective Applicants with respect to an RFQ be limited to one or more person(s) designated in the RFQ and/or that such contact be in writing.
(4) Submissions.
(i) Time Period. The deadline for submissions shall be a reasonable period of time after the advertisement first appears and shall be stated in the RFQ.
(ii) Fee. The Agency may require an Applicant to pay such non-refundable fee as is determined by the Agency to be appropriate upon submission of a qualification statement.
(iii) Completeness. The Agency shall require qualification statements to be submitted in the format and number prescribed in the RFQ and to contain all information and forms required therein.
(5) Selection.
(i) Basic Requirements. The Agency may reject a qualification statement if the Agency determines that either of the following basic requirements are not met:
(A) Completeness. The qualification statement must include all required forms, and such forms must be fully and properly completed and executed, at the time of submission.
(B) Compliance. The qualification statement must comply in all respects with all material terms of the RFQ.
(ii) Threshold Criteria. The Agency may impose such additional threshold criteria in the RFQ as it deems necessary or desirable. Provided that a qualification statement has passed all basic requirements, the Agency shall consider such threshold criteria as are established in the RFQ. Such threshold criteria shall include, but shall not be limited to, those characteristics of Applicants which have a bearing on their ability to successfully complete the Project (e.g., organizational capacity, comparable experience, financial capacity, and current and projected workload).
(iii) Competitive Criteria. The Agency may impose such additional competitive criteria in the RFQ as it deems necessary or desirable. Provided that a qualification statement has passed all threshold criteria, the Agency shall consider such competitive criteria as are established in the RFQ. Such criteria shall include, but shall not be limited to, those characteristics of Applicants which have a bearing on their ability to successfully complete the Project (e.g., organizational capacity, comparable experience, financial capacity, and current and expected workload).
(6) Limitations.
(i) No Obligation. An RFQ shall not represent any obligation or agreement whatsoever on the part of the City or the Agency, which may only be incurred or entered into by written agreement approved by the Governing Body, if applicable, and the Law Department and duly executed by both parties. The City and the Agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any Applicant at any time, including, but not limited to, the cost of responding to the RFQ.
(ii) No Warranty. The Agency shall make no warranties, express or implied, with respect to any factual information contained in any RFQ.
(7) Rights Retained by Agency. Where it is deemed by the Agency to be in the best interests of the City:
(i) The Agency may withdraw any RFQ in whole or in part at any time.
(ii) The Agency may decline to enter into negotiations with any and all Applicants which submit qualification statements in response to an RFQ.
(iii) The Agency may at any time waive compliance with an RFQ, change any of the terms and conditions of an RFQ, allow certain Applicants to make modifications or additions to their respective qualification statements, require certain Applicants to submit additional information or documentation, or withdraw individual Sites from an RFQ.
(iv) The Agency may negotiate with one or more Applicants who have submitted qualification statements pursuant to an RFQ, and may negotiate with parties which have not responded to the RFQ.
(v) The Agency may negotiate and dispose of any Site on terms other than those set forth in the RFQ.
(1) Issuance. The Agency may issue RFPs for Projects at any time it deems appropriate and desirable.
(2) Distribution.
(i) Notice. At such time as the Agency issues an RFP for a Project, the Agency may place advertisements in the City Record and/or such other publications as the Agency shall deem appropriate. The Agency may also mail copies of such advertisement to potential Applicants, including, but not limited to, Applicants who have done prior business with the Agency or who have requested to be on a mailing list for such purpose. The advertisement shall include, at a minimum, a short description of the Project or Program, the place a copy of the RFP can be obtained and the fee, if any, therefor, and the deadline for submission of proposals and the fee, if any, therefor.
(ii) Availability. A copy of the RFP shall be made available to all potential Applicants prior to the submission deadline. The Agency shall require all recipients of any RFP to identify themselves and shall cause a list of recipients to be maintained, which list shall in no event be furnished to any non-governmental party prior to the conclusion of the selection process. The Agency may charge a fee, in an amount to be determined by the Agency, for a copy of the RFP.
(iii) Amendments. The Agency may issue amendments to the RFP at any time prior to the submission deadline. The Agency shall provide copies of such amendments to all recipients of the RFP.
(3) Public Information.
(i) Conference. Prior to the submission deadline, the Agency may, but shall not be required to, hold an open conference where Agency staff answer questions about submission and Project requirements. The time and place for such conference, if any, shall be indicated in the RFP and/or any advertisement.
(ii) Agency Contacts. Agency staff shall be available during the submission period by telephone and/or in person to answer general questions about the RFP. The Agency may require that contact with Agency personnel by prospective Applicants with respect to an RFP be limited to one or more person(s) designated in the RFP.
(4) Submissions.
(i) Time Period. The deadline for submissions shall be a reasonable period of time after the advertisement first appears and shall be stated in the RFP.
(ii) Fee. The Agency may require an Applicant to pay such non-refundable fee as is determined by the Agency to be appropriate upon submission of a proposal.
(iii) Completeness. The Agency shall require proposals to be submitted in the format and number prescribed in the RFP and to contain all information and forms required therein.
(5) Selection.
(i) Basic Requirements. The Agency may reject a proposal if it determines that either of the following basic requirements are not met:
(A) Completeness. The proposal must include all required forms, and such forms must be fully and properly completed and executed, at the time of submission.
(B) Compliance. The proposal must comply in all respects with all material terms of the RFP.
(ii) Threshold Criteria. The Agency may impose such additional threshold criteria in the RFP as it deems necessary or desirable. Provided that a proposal has passed all basic requirements, the Agency shall consider such threshold criteria as are established in the RFP. Such threshold criteria may include, but shall not be limited to, those characteristics of Applicants which have a bearing on their ability to successfully complete the Project (e.g., organizational capacity, comparable experience, financial capacity, and current and projected workload), those characteristics of the Applicant’s proposal which have a bearing on the performance of the Project (e.g., number and size of units produced, rental or sale prices, income levels or special needs of prospective residents, amount of Assistance required, amount of revenue to be received by the City, and design), and any other factors which the Agency deems appropriate.
(iii) Competitive Criteria. The Agency may impose such additional competitive criteria in the RFP as it deems necessary or desirable. Provided that a proposal has passed all threshold criteria, the Agency shall consider such competitive criteria as are established in the RFP. Such criteria may include, but shall not be limited to, those characteristics of Applicants which have a bearing on their ability to successfully complete the Project (e.g., organizational capacity, comparable experience, financial capacity, and current and expected workload), those characteristics of the Applicant’s proposal which have a bearing on the performance of the Project (e.g., number and size of units produced, rental or sale prices, income levels or special needs of prospective residents, amount of Assistance required, amount of revenue to be received by the City, and design), and any other factors which the Agency deems appropriate.
(6) Limitations.
(i) No Obligation. An RFP shall not represent any obligation or agreement whatsoever on the part of the City or the Agency, which may only be incurred or entered into by written agreement approved by the Governing Body, if applicable, and the Law Department and duly executed by both parties. The City and the Agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any Applicant at any time, including, but not limited to, the cost of responding to the RFP.
(ii) No Warranty. The Agency shall make no warranties, express or implied, with respect to any factual information contained in any RFP.
(7) Rights Retained by Agency. Where it is deemed by the Agency to be in the best interests of the City:
(i) The Agency may withdraw any RFP in whole or in part at any time.
(ii) The Agency may decline to enter into negotiations with any and all Applicants which submit proposals in response to an RFP.
(iii) The Agency may at any time waive compliance with an RFP, change any of the terms and conditions of an RFP, allow certain Applicants to make modifications or additions to their respective proposals, require certain Applicants to submit additional information or documentation, or withdraw individual Sites from an RFP.
(iv) The Agency may negotiate with one or more Applicants who have submitted proposals pursuant to an RFP, and may negotiate with parties which have not responded to the RFP.
(v) The Agency may negotiate and dispose of any Site on terms other than those set forth in the RFP.
(1) Solicitation. The Agency may issue written bid solicitations for Projects at any time it deems appropriate and desirable. The bid solicitation shall describe the Project and/or Program, the Site, the competitive factor(s) upon which the bidding is based, the minimum thresholds, if any, for eligibility to bid, the reasons why public bidding is not feasible or desirable, the method by which bids are being solicited and the justification therefor, and such other matters as the Agency deems to be relevant.
(2) Distribution.
(i) Notice. At such time as the Agency issues a bid solicitation for a Project, the Agency shall inform prospective bidders and solicit bids in such manner as the Agency shall deem appropriate.
(ii) Availability. The Agency shall cause a list of recipients of the bid solicitation to be maintained, which list shall in no event be furnished to any non-governmental party prior to the conclusion of the selection process. The Agency may charge a fee, in an amount to be determined by the Agency, for a copy of the bid solicitation.
(iii) Amendments. The Agency may issue amendments to the bid solicitation at any time prior to the submission deadline. The Agency shall provide copies of such amendments to all recipients of the bid solicitation as set forth on the list of recipients.
(3) Public Information.
(i) Conference. Prior to the submission deadline, the Agency may, but shall not be required to, hold an open conference where Agency staff answer questions about submission and Project requirements. The time and place for such conference, if any, shall be indicated in the bid solicitation.
(ii) Agency Contacts. Agency staff shall be available during the submission period by telephone and/or in person to answer general questions about the bid solicitation. The Agency may require that contact with agency personnel by prospective bidders with respect to a bid solicitation be limited to one or more person(s) designated in the bid solicitation and/or that such contact be in writing.
(4) Submissions.
(i) Time Period. The deadline for submissions shall be a reasonable period of time after the issuance of the bid solicitation and shall be stated in the bid solicitation.
(ii) Fee. The Agency may require a bidder to pay such non-refundable fee as is determined by the Agency to be appropriate upon submission of a bid.
(iii) Completeness. The Agency shall require bids to be submitted in the format and number prescribed in the bid solicitation and to contain all information and forms required therein.
(5) Selection.
(i) Basic Requirements. The Agency may reject a bid if it determines that either of the following basic requirements are not met:
(A) Responsiveness. The bid must include all required forms, such forms must be fully and properly completed and executed, and the bid must comply in all respects with all material terms of the bid solicitation.
(B) Responsibility. The Agency may impose such eligibility criteria for bidders in the bid solicitation as the Agency deems necessary or desirable to ensure that only responsible bidders are selected. Each bidder shall be required to comply with all of the eligibility criteria established in the bid solicitation. Such eligibility criteria may include, but shall not be limited to, those characteristics of bidders which have a bearing on their ability to successfully complete the Project (e.g., organizational capacity, comparable experience, financial capacity, and current and projected workload).
(ii) Competitive Criteria. The Agency may impose such competitive criteria for the comparative evaluation of bids in the bid solicitation as it deems necessary or desirable. Provided that a bidder has passed all basic requirements, the Agency shall evaluate such bids on the basis of such competitive criteria as are established in the bid solicitation. Such competitive criteria may include, but shall not be limited to, amount of revenue to be received by the City, amount or type of Assistance required, rental or sale prices, income levels of prospective residents, number and size of units produced, and any other factors which the Agency deems appropriate.
(6) Limitations.
(i) No Obligation. A bid solicitation shall not represent any obligation or agreement whatsoever on the part of the City or the Agency, which may only be incurred or entered into by written agreement approved by the Governing Body, if applicable, and the Law Department and duly executed by both parties. The City and the Agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any bidder at any time, including, but not limited to, the cost of responding to the bid solicitation.
(ii) No Warranty. The Agency shall make no warranties, express or implied, with respect to any factual information contained in any bid solicitation.
(7) Rights Retained by Agency. Where it is deemed by the Agency to be in the best interests of the City:
(i) The Agency may withdraw any bid solicitation in whole or in part at any time.
(ii) The Agency may decline to enter into negotiations with any and all bidders.
(iii) The Agency may at any time waive compliance with a bid solicitation, change any of the terms and conditions of a bid solicitation, allow certain bidders to make modifications or additions to their respective bids, or withdraw individual Sites from a bid solicitation.
(iv) The Agency may negotiate with one or more bidders and may negotiate with non-bidders.
(v) The Agency may negotiate and dispose of any Site on terms other than those set forth in the bid solicitation.
(1) Solicitation. The Agency may issue written bid solicitations for Projects at any time it deems appropriate and desirable. The bid solicitation shall describe the Project and/or Program, the Site, the competitive factor(s) upon which the bidding is based, the minimum thresholds, if any, for eligibility to bid, and such other matters as the Agency deems to be relevant.
(2) Distribution.
(i) Notice. At such time as the Agency issues a bid solicitation for a Project, the Agency shall place advertisements in The City Record and/or such other publications as the Agency shall deem appropriate. The advertisement shall include, at a minimum, a short description of the Project or Program, the place a copy of the bid solicitation can be obtained and the fee, if any, therefor, and the deadline for submission of bids and the fee, if any, therefor.
(ii) Availability. A copy of the bid solicitation shall be made available to all potential bidders prior to the submission deadline. The Agency shall require all recipients of any bid solicitation to furnish identification and shall cause a list of recipients to be maintained, which list shall in no event be furnished to any non-governmental party prior to the conclusion of the selection process. The Agency may charge a fee, in an amount to be determined by the Agency, for a copy of the bid solicitation.
(iii) Amendments. The Agency may issue amendments to the bid solicitation at any time prior to the submission deadline. The Agency shall provide copies of such amendments to all recipients of the bid solicitation.
(3) Public Information.
(i) Conference. Prior to the submission deadline, the Agency may, but shall not be required to, hold an open conference where Agency staff answer questions about submission and Project requirements. The time and place for such conference, if any, shall be indicated in the bid solicitation and/or any advertisement.
(ii) Agency Contacts. Agency staff shall be available during the submission period by telephone and/or in person to answer general questions about the bid solicitation. The Agency may require that contact with agency personnel by prospective bidders with respect to a bid solicitation be limited to one or more person(s) designated in the bid solicitation and/or that such contact be in writing.
(4) Submissions.
(i) Time Period. The deadline for submissions shall be a reasonable period of time after the advertisement first appears and shall be stated in the bid solicitation.
(ii) Fee. The Agency may require a bidder to pay such non-refundable fee as is determined by the Agency to be appropriate upon submission of a bid.
(iii) Completeness. The Agency shall require bids to be submitted in the format and number prescribed in the bid solicitation and to contain all information and forms required therein.
(5) Selection.
(i) Basic Requirements. The Agency may reject a bid if it determines that either of the following basic requirements are not met:
(A) Responsiveness. The bid must include all required forms, such forms must be fully and properly completed and executed, and the bid must comply in all respects with all material terms of the bid solicitation.
(B) Responsibility. The Agency may impose such eligibility criteria for bidders in the bid solicitation as the Agency deems necessary or desirable to ensure that only responsible bidders are selected. Each bidder shall be required to comply with all of the eligibility criteria established in the bid solicitation. Such eligibility criteria may include, but shall not be limited to, those characteristics of bidders which have a bearing on their ability to successfully complete the Project (e.g., organizational capacity, comparable experience, financial capacity, and current and projected workload).
(ii) Competitive Criteria. The Agency may impose such competitive criteria for the comparative evaluation of bids in the bid solicitation as it deems necessary and desirable. Provided that a bidder has passed all basic requirements, the Agency shall evaluate such bids on the basis of such competitive criteria as are established in the bid solicitation. Such competitive criteria may include, but shall not be limited to, amount of revenue to be received by the City, amount or type of Assistance required, rental or sale prices, income levels of prospective residents, number and size of units produced, and any other factors which the Agency deems appropriate.
(6) Limitations.
(i) No Obligation. A bid solicitation shall not represent any obligation or agreement whatsoever on the part of the City or the Agency, which may only be incurred or entered into by written agreement approved by the Governing Body, if applicable, and the Law Department and duly executed by both parties. The City and the Agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any bidder at any time, including, but not limited to, the cost of responding to the bid solicitation.
(ii) No Warranty. The Agency shall make no warranties, express or implied, with respect to any factual information contained in any bid solicitation.
(7) Rights Retained by Agency. Where it is deemed by the Agency to be in the best interests of the City:
(i) The Agency may withdraw any bid solicitation in whole or in part at any time.
(ii) The Agency may decline to enter into negotiations with any and all bidders.
(iii) The Agency may at any time waive compliance with a bid solicitation, change any of the terms and conditions of a bid solicitation, allow certain bidders to make modifications or additions to their respective bids, or withdraw individual Sites from a bid solicitation.
(iv) The Agency may negotiate with one or more bidders and may negotiate with non-bidders.
(v) The Agency may negotiate and dispose of any Site on terms other than those set forth in the bid solicitation.
(1) Information. The Agency may prepare an auction brochure containing written descriptions of the Project, the Site, the eligibility criteria for bidders, the terms and conditions of the auction, and such other matters as the Agency deems to be relevant.
(2) Distribution of Notice.
(i) Notice. At such time as the Agency elects to select a Sponsor via auction, the Agency shall place advertisements in The City Record and/or such other publications as the Agency shall deem appropriate. The advertisement shall include, at a minimum, a short description of the Project or Program, the place and time where the auction brochure may be obtained, the place and time where the auction will be held, and such other matters as the Agency deems to be relevant.
(ii) Availability. The Agency shall require all recipients of the auction brochure to identify themselves and shall cause a list of such recipients to be maintained, which list shall in no event be furnished to any non-governmental party prior to the conclusion of the selection process.
(iii) Amendments. The Agency may issue amendments to the auction brochure at any time prior to the auction. The Agency shall send copies of such amendments to all recipients of the auction brochure.
(3) Public Information.
(i) Conference. Prior to the auction, the Agency may, but shall not be required to, hold an open conference where Agency staff answer questions about the Project and the auction. The time and place for such conference, if any, shall be indicated in the public advertisement for the auction.
(ii) Agency Contacts. Agency staff shall be available prior to the auction by telephone and/or in person to answer general questions about the auction. The Agency may require that contact with agency personnel by prospective participants with respect to an auction be limited to one or more person(s) and/or that such contact be in writing.
(4) Fee. The Agency may require an auction participant to pay such non-refundable fee as is determined by the Agency to be appropriate upon admission to the auction.
(5) Eligibility Criteria. The Agency may impose such eligibility criteria for bidders in the auction as the Agency deems necessary or desirable to ensure that only responsible bidders are selected. Each bidder shall be required to comply with all of the eligibility criteria established in the terms and conditions of the auction. Such eligibility criteria may include, but shall not be limited to, those characteristics of bidders which have a bearing on their ability to successfully complete the Project (e.g., organizational capacity, comparable experience, financial capacity, and current and projected workload). The Agency may reject any bidder at an auction if the eligibility requirements are not met.
(6) Limitations.
(i) No Obligation. An auction shall not represent any obligation or agreement whatsoever on the part of the City or the Agency, which may only be incurred or entered into by written agreement approved by the Governing Body, if applicable, and the Law Department and duly executed by both parties. The City and the Agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any bidder at any time, including, but not limited to, the cost of attending the auction.
(ii) No Warranty. The Agency shall make no warranties, express or implied, with respect to any factual information contained in any written description of the auction.
(7) Rights Retained by Agency. Where it is deemed by the Agency to be in the best interests of the City:
(i) The Agency may cancel any auction at any time.
(ii) The Agency may decline to enter into negotiations with any and all bidders.
(iii) The Agency may at any time waive compliance with the eligibility requirements for the auction, change any of the terms and conditions of the auction, allow certain bidders to make modifications or additions to their respective bids, or withdraw individual Sites from an auction.
(iv) The Agency may negotiate with one or more bidders and may negotiate with non-bidders.
(v) The Agency may negotiate and dispose of any Site on terms other than those set forth in the written description of the auction.
(1) Distribution.
(i) Advertisement. At such time as the Agency commences an application process for a Project, the Agency or its designee may prepare or cause to be prepared an advertisement describing (i) such aspects of the Project and the selection process as the Agency deems to be relevant, and (ii) the place where application forms can be obtained. The Agency may place such advertisement in The City Record and/or such other publications as the Agency shall deem appropriate. The Agency may also mail copies of such advertisement to potential Applicants, including, but not limited to, Applicants who have done prior business with the Agency or who have requested to be on a mailing list for such purpose.
(ii) Application Forms. The Agency or its designee shall prepare or cause to be prepared the forms upon which applications are to be submitted, which forms may require such information as the Agency deems to be necessary or desirable to effectuate the purposes of the Project. Application forms shall be made available by the Agency or its designee to all potential Applicants. The Agency or its designee may charge a fee, in an amount to be determined by the Agency, for application forms.
(iii) Amendments. The Agency may change any aspect of the information set forth in the advertisement at any time. The Agency shall amend the advertisement accordingly and shall place such amended advertisement in The City Record, the publications in which the original advertisement appeared, and such other publications as the Agency shall deem appropriate. If it is infeasible for the Agency to publish the amended advertisement in the publications in which the original advertisement appeared, the Agency shall endeavor to provide substantially the same type of notice as was provided with respect to the original advertisement. The Agency may also mail copies of such amended advertisement to potential Applicants who have done prior business with the Agency or who have requested to be on a mailing list for such purpose. Notwithstanding the foregoing, an application process may be terminated by the Agency at any time without advertisement.
(2) Submissions.
(i) Time Period. The Agency may impose a deadline for submission of applications, which shall be a reasonable period of time after the advertisement first appears. The Agency may, in the alternative, impose no deadline, in which case the Agency shall receive, review, and approve or reject applications on a rolling basis as and when such applications are received.
(ii) Fee. The Agency or its designee may require an Applicant to pay such non-refundable fee as is determined by the Agency to be appropriate upon submission of an application or thereafter.
(iii) Completeness. The Agency shall require applications to be submitted on the required forms and to be completed and executed in the manner set forth therein.
(3) Selection.
(i) Completeness. The application must include all required forms, and such forms must be fully and properly completed and executed, at the time of submission. The Agency may reject an application if it determines that such requirements are not met.
(ii) Selection. The Agency may review and judge applications and select Sponsors by any method and upon any criteria permitted by Law or these Rules, including, but not limited to, the methods set forth in 28 RCNY § 33-03(b), (c)(5), (d)(5), (e)(5), (f)(5), (g), (h), and (i).
(4) Limitations.
(i) No Obligation. The publication of an advertisement and the provision and acceptance of application forms shall not represent any obligation or agreement whatsoever on the part of the City or the Agency, which may only be incurred or entered into by written agreement approved by the Governing Body, if applicable, and the Law Department and duly executed by both parties. The City and the Agency shall not be obligated to pay, nor shall they in fact pay, any costs or losses incurred by any Applicant at any time, including, but not limited to, the cost of preparing an application.
(ii) No Warranty. The Agency shall make no warranties, express or implied, with respect to any factual information contained in any advertisement.
(5) Rights Retained by Agency. Where it is deemed by the Agency to be in the best interests of the City:
(i) The Agency may terminate any application process in whole or in part at any time.
(ii) The Agency may decline to enter into negotiations with any and all Applicants which submit applications.
(iii) The Agency may at any time allow Applicants to make modifications or additions to their applications and/or require certain Applicants to submit additional information or documentation.
(iv) The Agency may negotiate with Applicants and may negotiate with parties which have not submitted applications.
(v) The Agency may negotiate and dispose of any Site on terms other than those set forth in the advertisement.
§ 33-04 Negotiations.
(a) Notification. Upon the completion of any selection process, the Agency shall notify each respondent Applicant of the Agency's determination with respect to such Applicant. Such notification may be in such form and delivered in such manner as the Agency deems to be appropriate. With respect to any Selected Applicant, the form of such notification may include, but shall not be limited to, a Negotiation Letter, Authorization Letter, or Loan commitment letter.
(1) Deadlines. The Agency may require the Selected Applicant to commence or complete negotiations and/or commence or complete other specified actions within a specified time period.
(2) Deposits. The Agency may require the Selected Applicant to pay deposits of such types, in such amounts, and at such times as the Agency deems appropriate. The Agency shall notify the Selected Applicant in writing of (i) the types and amounts of the deposits, if any, which the Selected Applicant is or shall be required to pay, (ii) the date upon which each such deposit shall become due, (iii) whether such deposits are refundable or non-refundable, and (iv) if such deposits are refundable, the conditions under which a refund will be issued.
(3) Project Requirements. The Agency may establish Program and Project requirements and conditions for the commencement and continuation of negotiations.
(4) Schedule. The Agency may establish a schedule of activities which must be completed as pre-conditions for the Agency Activities to be taken in connection with the Project.
§ 33-05 Site Disposition.
(a) Approvals. The Agency shall not make any Disposition until and unless the following approvals have been granted:
(1) Governing Body Approval. All Dispositions shall require prior approval by the Governing Body and shall be subject to any further terms and conditions imposed by the Governing Body as a condition for its approval.
(2) Law Department Approval. All legal documents relating the transfer of title or otherwise relating to the Project shall require prior approval by the Law Department.
(3) Agency Approval. Notwithstanding the prior approval of the Governing Body and the Law Department, all Dispositions shall require prior approval by the Agency, which approval may be withdrawn by the Agency, for any reason deemed by the Agency to be in the best interests of the City, at any time prior to Disposition. As a condition precedent to its approval of any Disposition, the Agency may require a potential Sponsor to have satisfied all terms and conditions determined by the Agency to be necessary or desirable, including, but not limited to, the terms and conditions set forth in any selection process, Authorization Letter, Negotiation Letter, or Loan commitment letter.
§ 33-06 Assistance.
(a) General. The Agency shall have the power and authority to provide, in connection with any Project, such Assistance, including, but not limited to, Loans and Subsidies, as are authorized to be provided by applicable Law.
(1) General Considerations. If the Agency Activities to be undertaken in connection with a Project include a Loan, then the Agency, in making determinations concerning Loan terms, shall act to protect the City’s interests as a prudent mortgage lender, provide for a reasonable return (where such return is intended in accordance with the Project and applicable Laws) to the Sponsor, and meet the standards of other lenders, if any.
(2) Eligible Costs. Subject to the limitations set forth in these Rules and applicable Laws, a Loan may be made in such amounts as may be required for all Project Activities.
(3) Commitment Letter. The Agency may state Loan terms in a commitment letter signed by the Commissioner. Such commitment letter, if any, may contain such terms as the Agency may deem necessary or desirable in order to effectuate the purposes of these Rules and to protect the City’s interests as a lender. The closing of the Loan shall be made subject to satisfaction of all the terms and conditions contained in such commitment. The commitment letter may require, among other things, that the Sponsor and its contractors and all of their respective principals obtain necessary City approvals and clearances as a condition precedent to the closing of the Loan.
(4) Financing. If a Project includes acquisition, purchase money, construction, or permanent financing to be provided by the City, the Loan for such purpose shall be evidenced by a note and may be secured by such security or collateral documents and by such collateral as the Agency may deem necessary or desirable in accordance with applicable Law. The Loan documents may contain such terms, consistent with these Rules, as the Agency may deem necessary or desirable in order to effectuate the purposes of these Rules and applicable Laws and to protect the City’s interests as lender. The Loan documents may provide that the indebtedness evidenced or secured thereby shall evaporate in any manner permitted by applicable Law.
§ 33-07 Project Operation.
(a) Regulatory Agreement. A Sponsor may be required to execute a Regulatory Agreement with the Agency as a condition for the Agency Activities taken by the Agency in connection with the Project. The Regulatory Agreement shall be recorded against the Site and shall run with the land for the period set forth therein. The Regulatory Agreement shall require the Sponsor and all of Sponsor's successors and assigns to comply with Project requirements.
§ 33-08 Miscellaneous Provisions.
(a) Termination. Notwithstanding any provision to the contrary in these Rules or in any document concerning any selection process, Project, or Program, the Agency may reject any Applicant or Selected Applicant and/or terminate any negotiations, selection process, Project, and/or Program at any time and for any reason, including, but not limited to, the reasons set forth in 28 RCNY § 33-08(a)(1), (a)(2), (a)(3), and (a)(4), or without cause.
(1) Adverse Findings. The Agency determines at any time that good and sufficient reasons exist why the City should not do business with an Applicant or Selected Applicant or should not allow such Applicant or Selected Applicant to act as Sponsor for a Project. Such reasons shall include, but shall not be limited to, evidence with respect to the Applicant or Selected Applicant or any member of its development team of (i) arson conviction or pending cases; (ii) harassment conviction or pending cases; (iii) arrears or default upon any debt, lease, contract, tax, lien, fee, charge, or obligation to the City; (iv) City mortgage or tax foreclosure proceedings or arrears; (v) unsuccessful record with comparable projects, including, but not limited to, poor workmanship, failure to complete a project expeditiously, substantial and significant building violations or litigation history against other properties, or unsuccessful record of managing residential real property; (vi) inability, due to lack of organizational capacity, competing demands from other projects, or any other factor, to perform all required Project Activities; (vii) bankruptcy or insolvency; (viii) violation of the conflict of interest provisions of the New York City Charter or any other applicable Laws; or (ix) failure to obtain IG Clearance, EO Clearance, or other necessary City clearances.
(2) Unable to Recommend Sale. The Agency is unable to recommend to the Governing Body that it grant the approvals required for a Project for any reason, including, but not limited to, a determination by the Agency that (i) the Applicant or Selected Applicant has failed to clear one or more of the required City reviews, (ii) there has been a transfer of ownership interests in the Applicant or Selected Applicant after commencement of negotiations without the approval of the Agency, (iii) adequate City funding for the Assistance to be included in the Project is not available, or (iv) funding to be provided by entities other than the City is not available or is not provided in a timely manner.
(3) Noncompliance. An Applicant or Selected Applicant has failed to comply with any term or condition established by the City or the Agency, including, but not limited to, any Program or Project requirement, deposit requirement, deadline, or schedule.
(4) Best Interests of City. The Agency or the City has not approved the Agency Activities required for a Project for any reason determined by the Agency or the City to be in the best interests of the City.
§ 34-01 Definitions.
Building. “Building” shall mean any City-owned multiple dwelling, other than a single room occupancy dwelling, which is occupied by Tenants.
City. “City” shall mean the City of New York.
Disposition. “Disposition” shall mean the sale of a Building to an HDFC.
Disposition Rent Increase. “Disposition Rent Increase” shall mean the last rent set by HPD prior to Disposition.
HDFC. “HDFC” shall mean a housing development fund company formed pursuant to Article XI of the Private Housing Finance Law in order to purchase a Building pursuant to these Rules.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City.
Intake Rent Increase. “Intake Rent Increase” shall mean the initial rent set by HPD upon Selection of a Building.
Interim Payment Agreement. “Interim Payment Agreement” shall mean an agreement entered into between HPD, the Tenant Association and/or HDFC, and a Tenant eligible for rental assistance to temporarily accept less than the full rent from the Tenant prior to the provision of rental assistance.
Interim Rent Increase. “Interim Rent Increase” shall mean any rent, other than an Intake Rent Increase or a Disposition Rent Increase, set by HPD from time to time after Selection and before Disposition of a Building.
Laws. “Laws” shall mean any and all applicable laws, orders, rules and regulations.
Occupied Units. “Occupied Units” shall mean any lawfully occupied dwelling units leased and occupied by a Tenant in a Building.
Program. “Program” shall mean the Tenant Interim Lease Program.
Rehabilitation. “Rehabilitation” shall mean the installation, replacement, or repair of one or more systems or the correction of inadequate, unsafe, or unsanitary conditions in a Building.
Selection. “Selection” shall mean notification to a Tenant Association, pursuant to 28 RCNY § 34-03(c), that HPD has approved a Building for the Program.
Rules. “Rules” shall mean the Rules set forth in this chapter.
Tenant. “Tenant” shall mean a residential tenant of record occupying a dwelling unit in a Building pursuant to a lease with the City or with a Tenant Association that has entered into a Tenant Interim Lease. Other residential occupants, such as squatters and licensees, are not Tenants. Non-residential tenants or occupants, such as those who occupy space in a Building for retail, commercial, manufacturing, or community facility purposes, are not Tenants.
Tenant Association. “Tenant Association” shall mean an unincorporated association with elected officers that has been formed by and continues to include as members the Tenants of at least sixty percent (60%) of the Occupied Units in a Building. If there is more than one such unincorporated association, “Tenant Association” shall mean the one from which HPD accepts an application for the Program and, if applicable, the one with which HPD executes a Tenant Interim Lease.
Tenant Interim Lease. “Tenant Interim Lease” shall mean the written month-to-month net lease of an entire Building executed by the City, as lessor, and by the Tenant Association, as lessee, following Selection of a Building.
§ 34-02 General.
(a) Coverage. These Rules will govern the procedures for: selecting Buildings for the Program, leasing Buildings to the Tenant Associations, determining and establishing rent, providing notice to Tenants and terminating buildings from the Program. Buildings in the Program will be subject to these Rules, 28 RCNY Chapter 21, and 28 RCNY Chapter 24. Notwithstanding any provision of 28 RCNY Chapter 14 to the contrary, Buildings in the Program will not be subject to 28 RCNY Chapter 14.
§ 34-03 Entering the Program.
(a) Eligible buildings. A Building may be eligible for selection for the Program if HPD makes all of the following discretionary determinations:
(1) the Building requires Rehabilitation such that it is not marketable to the private sector in its “as is” condition, and HPD funding is necessary to return the Building to the private sector; and
(2) the performance of Rehabilitation is technically feasible; and
(3) the cost of Rehabilitation is economically reasonable; and
(4) the cost of Rehabilitation is within available HPD resources; and
(5) the Building is a Class A multiple dwelling containing at least three dwelling units; and
(6) at least two of the dwelling units in the Building are Occupied Units; and
(7) the Building has not been designated by HPD for disposition through another program, except to the extent that rules promulgated by HPD for such other program explicitly authorize a withdrawal to participate in the Program; and
(8) the Building has not previously participated in the Program, unless such participation was terminated more than five years prior to the current application.
(1) the Tenant Association must submit an application on a form supplied by HPD signed by
(i) the Tenants of all of the Occupied Units in a Building containing up to five dwelling units, or
(ii) the Tenants of at least sixty percent (60%) of the Occupied Units in a Building containing six or more dwelling units; and
(2) the Tenants of at least fifty percent (50%) of the Occupied Units must pay one hundred percent (100%) of the billable rent for their respective dwelling units for the three months immediately prior to the filing of the application and continuously until HPD makes a determination of Selection; and
(3) officers and members of the Tenant Association must attend training classes as directed by HPD; and
(4) the Tenant Association must notify the Tenants of a meeting at which HPD will discuss the Program. Tenants of at least fifty percent (50%) of the Occupied Units must attend the meeting. If Tenants of less than fifty percent (50%) of the Occupied Units attend the meeting, the Tenant Association must notify the Tenants of a second meeting. If Tenants of less than fifty percent (50%) of the Occupied Units attend the second meeting, the Building will not be considered for the Program; and
(5) HPD must determine that the Building can be managed by the Tenant Asso- ciation.
(1) adopt by-laws and articles of association in a form specified by HPD; and
(2) elect officers; and
(3) set up a restricted bank account as required by HPD.
(1) HPD will from time to time establish intake rent levels, expressed as a minimum dollar amount per zoning room, for all dwelling units in Buildings entering the Program. Such intake rent levels will be based upon maintenance and operating expenses in similar buildings. Such intake rent levels and the rationale therefore will be kept on file by HPD and will be available for public inspection.
(2) HPD will issue an intake rent roll to the Tenant Association and will notify the Tenants of the Intake Rent Increase at least thirty (30) days prior to the effective date of the Intake Rent Increase.
§ 34-04 Program Activities.
(a) Lease. Upon acceptance of a Building into the Program, HPD will temporarily lease the Building to the Tenant Association pursuant to the terms of a Tenant Interim Lease. The Tenant Interim Lease shall require the Tenant Association to follow these Rules and all HPD directives. Furthermore, officers and members of the Tenant Association must attend training classes as directed by HPD during the term of the Tenant Interim Lease.
(i) procedures and criteria for the selection of new Tenants,
(ii) rents to be charged,
(iii) priority for persons that HPD has determined are in need of housing, and
(iv) the use of specified lists of eligible persons.
(i) procedures and criteria for the selection of new non-residential tenants, and
(ii) rents to be charged.
(1) HPD will prepare a statement of the projected cost of maintaining and operating the Building in the period following the Interim Rent Increase, which statement will reflect actual expenditures, adjusted for inflation on an individual or on a compounded yearly basis, for the maintenance and operation of the Building (including, but not limited to, the cost of fuel, common space utilities, repair and maintenance, supplies, insurance, custodial services, and fees for management and professional services) and any other costs anticipated to be associated with the maintenance and operation of the Building.
(2) HPD will calculate the rent levels necessary to cover the projected cost of maintaining and operating the Building in the period following the Interim Rent Increase, as reflected in such statement, and shall implement an Interim Rent Increase based upon such calculation.
(3) HPD will issue an interim rent roll to the Tenant Association and will notify the Tenants of such Interim Rent Increase at least thirty (30) days prior to the effective date of the new rent.
(4) From the date that Tenants receive notice of the Interim Rent Increase until the effective date of the Interim Rent Increase,
(i) HPD will make such statement of maintenance and operating expenses available for public inspection,
(ii) any Tenant may comment in writing to HPD regarding the Interim Rent Increase, and
(iii) HPD will consider any timely comments received from Tenants.
(i) Successor Tenants. An application for a family member to be approved as a successor tenant will be subject to the rules governing successor tenants set forth in Chapter 24 of Title 28 of the rules of the city of New York. The Tenant Association will be required to provide a statement either supporting or opposing the successor tenant application. This statement must include the Tenant Association’s reasons for support or opposition.
§ 34-05 Disposition.
(a) Disposition rent increase.
(1) Prior to disposition, HPD will prepare a statement of the projected cost of maintaining and operating the Building in the first year following Disposition, which statement will reflect,
(i) actual expenditures, adjusted for inflation on an individual or compounded yearly basis, for the maintenance and operation of the Building prior to Disposition (including, but not limited to, the cost of fuel, common space utilities, repair and maintenance, supplies, insurance, custodial services, and fees for management and professional services),
(ii) real estate taxes,
(iii) water and sewer charges,
(iv) contingency reserves,
(v) reserves for vacancies and uncollectible debts, and
(vi) any other costs anticipated to be associated with the maintenance and operation of the Building.
(2) HPD will calculate the rent levels necessary to cover the projected cost of maintaining and operating the Building in the first year following disposition, as reflected in such statement, and shall implement a Disposition Rent Increase based upon such calculation.
(3) HPD will issue a disposition rent roll to the Tenant Association and will notify the Tenants of such Disposition Rent Increase at least thirty (30) days prior to the effective date of the new rent.
(4) From the date that Tenants receive notice of the Disposition Rent Increase until the effective date of the Disposition Rent Increase,
(i) HPD will make such statement of maintenance and operating expenses available for public inspection,
(ii) any Tenant may comment in writing to HPD regarding the Disposition Rent Increase, and
(iii) HPD will consider any timely comments received from Tenants.
(1) the Tenant Association has, in the judgment of HPD, satisfactorily managed the Building during the term of the Tenant Interim Lease; and
(2) Tenants of at least eighty percent (80%) of the Occupied Units have signed subscription agreements to purchase the shares in the HDFC attributable to their dwelling units; and
(3) HPD has notified the Tenants of the Disposition Rent Increase; and
(4) if required by HPD, the HDFC has executed a regulatory agreement which may contain, without limitation, restrictions on renting, subletting, and sales of units, and requirements for transfer fees, primary residency, and establishment of reserve accounts to be serviced by HPD for a fee equal to 0.25% of the average monthly balance in the reserve account over the previous 12 month period.
§ 34-06 Rental Assistance.
(a) HPD will assist eligible Tenants in applying for existing rental assistance programs during the period of the Building's participation in the Program. HPD will provide Tenants with applications for § 8 of the United States Housing Act of 1973, as amended, and senior citizen rent increase exemptions, advise Tenants which rental assistance program is most suitable for their individual needs, assist Tenants in completing rental assistance applications, and forward all necessary documentation to the appropriate authority for final review and processing.
(1) the amount of the increased rent for the apartment;
(2) the amount of rent that the Tenant must pay pending the final determination of the rental assistance application;
(3) a statement of the grounds for termination pursuant to subdivision (e) of this section; and
(4) notice to the Tenant that s(he) remains liable for the full amount of the rent retroactive to the effective date of the increase if, at any time, the rental assistance application is denied by HPD or the Interim Payment Agreement is terminated pursuant to paragraphs one, three or four of subdivision (e) of this section, provided, however, that if the Interim Payment Agreement is terminated pursuant to paragraph one of subdivision (e) of this section, the Tenant shall not be liable for the full amount of the rent increase retroactive to its effective date if s(he) notifies HPD within thirty (30) days of any change in household income which renders the Tenant ineligible for rental assistance.
(1) any change in the Tenant’s household income which renders the Tenant ineligible for rental assistance; or
(2) any change in the rent charged by the City; or
(3) failure by the Tenant to comply with any of the requirements necessary to process the application for rental assistance; or
(4) failure by the Tenant to pay, within thirty (30) days of the date due, the rent payable under the Interim Payment Agreement pursuant to subdivision (d) of this section, unless payment of such rent is being withheld for lack of services which the Tenant has given written notice of to the Tenant Association and/or HDFC; or
(5) receipt by Tenant of rental assistance pursuant to a rental assistance application filed in accordance with this section.
§ 34-07 Removal from the Program.
HPD may remove a Building from the program and terminate the Tenant Interim Lease with respect to such Building if HPD determines that:
§ 34-08 Miscellaneous Provisions.
(a) HPD discretion. All determinations to be made by HPD in accordance with these Rules will be in the sole discretion of HPD.
§ 35-01 Definitions.
Administrative Code. “Administrative Code” shall mean the Administrative Code of the City.
Building. “Building” shall mean any multiple dwelling that is occupied by Tenants and (prior to sale to the NPC) owned by the City, including any vacant land adjacent thereto, which is or may be the subject of a Project.
City. “City” shall mean the City of New York.
Commissioner. “Commissioner” shall mean the Commissioner of HPD or his or her designee.
DHCR. “DHCR” shall mean the State of New York Division of Housing and Community Renewal.
Disposition. “Disposition” shall mean the date of title transfer of a Building from the NPC to a Sponsor.
Final Selection. “Final Selection” shall mean a decision by HPD to select a Building for the Program.
FMR. “FMR” shall mean the fair market rent set by the Section 8 program or any other successor program of the United States Department of Housing and Urban Development.
Housing Maintenance Code. “Housing Maintenance Code” shall mean Chapter 2 of Title 27 of the Administrative Code.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City, or its designee.
Intake Rent. “Intake Rent” shall mean the rent set by HPD that takes effect after Project Commencement.
Interim Payment Agreement. “Interim Payment Agreement” shall mean an agreement entered into between HPD, a Tenant eligible for rental assistance and the NPC or the Sponsor, as applicable, to temporarily accept less than the full rent from the Tenant prior to the provision of rental assistance.
Laws. “Laws” shall mean any and all applicable laws, ordinances, orders, rules and regulations.
NPC. “NPC” shall mean a not-for-profit corporation selected by HPD to participate in the Program and to which the City net leases and thereafter conveys title to a Building in the Program prior to Disposition.
Post-Rehabilitation Rent. “Post-Rehabilitation Rent” shall mean the rent set by HPD that takes effect after substantial completion.
Preliminary Selection. “Preliminary Selection” shall mean a preliminary determination by HPD to select a Building for the Program.
Program. “Program” shall mean the Neighborhood Entrepreneurs Program.
Project. “Project” shall mean a project in the Program.
Project Activity. “Project Activity” shall mean any activity performed or required to be performed by the Sponsor in connection with a Project.
Project Commencement. “Project Commencement” shall mean the date the Project has commenced, as set forth in the notice described in 28 RCNY § 35-04(f).
Rehabilitation. “Rehabilitation” shall mean the installation, replacement, or repair of one or more Building systems or the correction of inadequate, unsafe, or insanitary conditions.
Rules. “Rules” shall mean the rules set forth in this chapter.
SDMA. “SDMA” shall mean a site development and management agreement entered into by the NPC and the Sponsor that determines the Sponsor’s responsibilities regarding the day-to-day operation of the Building prior to Disposition.
Sponsor. “Sponsor” shall mean the entity selected to manage, own and/or develop the Project, and any entity substantially controlled by such Sponsor.
Subsidy. “Subsidy” shall mean a loan or a grant made by HPD to the NPC or to a Sponsor for Project Activities.
Substantial Completion. “Substantial Completion” shall mean the date on which HPD certifies that (a) construction work comprising at least 95 percent of the approved Rehabilitation cost has been satisfactorily completed, and (b) all work required to remove Housing Maintenance Code violations which were of record before the Rehabilitation of the Building and were then classified as “B” and “C” has been completed.
Tenants. “Tenants” shall mean residential tenants of record occupying a dwelling unit in a Building. Other residential occupants, such as squatters and licensees, are not Tenants. Non-residential tenants or occupants, such as those who occupy space in a Building for retail, commercial, manufacturing, or community facility purposes, are not Tenants.
§ 35-02 General.
(a) Coverage. These Rules govern the procedures for: selecting Buildings for the Program, net leasing and sale of Buildings to the NPC, selecting Sponsors for the Program, the SDMA between the NPC and the Sponsor. Disposition of Buildings to Sponsors, providing subsidies for projects, project operation, determining and establishing rents, and providing notices to Tenants. Buildings in the Program shall be subject to these Rules.
§ 35-03 Selection of Sponsors.
HPD may select a Sponsor for a Project by any method which HPD determines will best further the purposes of the Program, including, without limitation, pursuant to a request for qualifications process, pursuant to a request for proposals process, selection from a pre-qualified list or, in the discretion of HPD, by a direct designation of an entity judged by HPD to be suitable for the task. In selecting a Sponsor, any relevant factors may be considered, including, but not limited to:
(i) the Sponsor’s prior record in other City housing programs;
(ii) the Sponsor’s prior selection by the City as a developer in another program;
(iii) the Sponsor’s record as a property owner, developer or manager;
(iv) the Sponsor’s relevant experience in and knowledge of the neighborhood where the project is located, and
(v) any relevant written comments by Tenants.
§ 35-04 Selection of Buildings, Tenant Notification.
(a) Eligible Buildings. HPD may select Buildings for the Program if:
(1) Rehabilitation of the Building is technically and financially feasible;
(2) The Building has not been accepted into another HPD disposition program.
(1) A statement that HPD is considering placing the Building in the Program; (2) A description of the Program;
(3) A statement that an Intake Rent will be set;
(4) A statement that the Building may be eligible for other HPD programs and the name, address and phone number of an HPD employee who may provide information on how to apply for such other programs;
(5) The name of the Sponsor selected by HPD to develop the Project; and
(6) A statement that the Building will remain in the Program unless accepted into another HPD program.
§ 35-05 Subsidy.
(a) Eligible Costs. Subject to the limitations set forth in applicable Laws, a Subsidy may be made in such amounts as may be required for Project Activities.
§ 35-06 Rent Setting.
(a) Establishment of Intake Rents. HPD shall from time to time on a program-wide basis establish Intake Rents for all dwelling units in Buildings selected for the Program based upon a minimum rent level per zoning room based on operating costs in similar Buildings. The Intake Rent and the rationale therefore shall be kept on file by HPD and be available for public inspection. HPD shall provide notice of Intake Rent pursuant to 28 RCNY § 35-04(g).
(1) inform each Tenant of the contemplated Rehabilitation which will be performed in the Project;
(2) advise each Tenant of the expected rental increase to result from the Rehabilitation that will take effect after Substantial Completion (i.e., the Post-Rehabilitation Rent); (3) provide information on rental assistance which assistance that may be available to the Tenant and the procedures to apply for such assistance in accordance with 28 RCNY § 35-10;
(4) apprise each Tenant of such Tenant’s right to submit written comments; and
(5) advise each Tenant that where relocation during Rehabilitation is necessary, HPD will use its best efforts to minimize inconvenience to affected Tenants.
§ 35-07 Project Operation by Sponsor under the SDMA Prior to Disposition.
(a) SDMA. Prior to Disposition to the Sponsor, the NPC shall enter into a SDMA with the Sponsor.
(1) Complaints shall, in the first instance, be directed to Sponsor.
(2) Tenants shall have the right to file written complaints with HPD staff or the NPC if a Tenant deems Sponsor’s response to be inadequate or unsatisfactory.
§ 35-08 Disposition to Sponsor.
Under satisfactory completion of the Rehabilitation, title for the Building shall be sold and transferred to the Sponsor by the NPC.
§ 35-09 Project Operation After Disposition to Sponsor.
(a) Regulatory Agreement. A Sponsor may be required to execute a regulatory agreement with HPD as a condition for the Project. The regulatory agreement shall be recorded and shall run with the land for the period set forth therein. The regulatory agreement shall require the Sponsor and all of Sponsor's successors and assigns to comply with Project requirements.
§ 35-10 Rental Assistance.
(a) HPD will assist eligible Tenants in applying for existing rental assistance programs during the period of the Building's participation in the Program. HPD will provide Tenants with applications for § 8 of the United States Housing Act of 1973, as amended, and senior citizen rent increase exemptions, advise Tenants which rental assistance program is most suitable for their individual needs, and assist Tenants in completing rental assistance applications.
(1) the amount of the increased rent for the apartment;
(2) the amount of rent that the Tenant must pay pending the final eligibility determination of the rental assistance application (as such amount is determined in accordance with subdivision (d) of this section);
(3) a statement of the grounds for termination pursuant to subdivision (e) of this section; and
(4) notice to the Tenant that s(he) remains liable for the full amount of the rent retroactive to the effective date of the increase if, at any time, the rental assistance application is denied by HPD or the Interim Payment Agreement is terminated pursuant to paragraphs one, three or four of subdivision (e) of this section, provided, however, that if the Interim Payment Agreement is terminated pursuant to paragraph one of subdivision (e) of this section, the Tenant shall not be liable for the full amount of the rent increase retroactive to its effective date if s(he) notifies HPD within thirty (30) days of any change in household income which renders the Tenant ineligible for rental assistance.
(1) any change in the Tenant’s household income which renders the Tenant ineligible for rental assistance; or
(2) any change in the rent charged by the City; or
(3) failure by the Tenant to comply with any of the requirements necessary to process the application for rental assistance; or
(4) failure by the Tenant to pay, within thirty (30) days of the date due, the rent payable under the Interim Payment Agreement pursuant to subdivision (d) of this section, unless payment of such rent is being withheld for lack of services which the Tenant has given written notice of to the Sponsor; or
(5) receipt by Tenant of rental assistance pursuant to a rental assistance application filed in accordance with this section.
§ 35-11 Miscellaneous Provisions.
(a) HPD Discretion. All determinations to be made by HPD in accordance with these Rules shall be in the sole discretion of HPD.
§ 36-01 Definitions.
For purposes of this chapter:
§ 36-02 Request for Reinspection and Dismissal of Violations.
(a) (1) An owner or managing agent of a building that has been identified for participation in the Alternative Enforcement Program may submit an application for reinspection of such building for the purpose of dismissing corrected violations of the Housing Maintenance Code or Multiple Dwelling Law from the Department's records in order for the building to be discharged from such Program.
(2) Such application shall be submitted to the Department on the form approved by the Department for such purpose, and shall be accompanied by a certified check or money order, made payable to the New York City Commissioner of Finance in the amount specified in 28 RCNY § 36-03. Such application shall be submitted either in person or by mail to the Alternative Enforcement Program Office.
(3) Such application shall be submitted to the Department within four months of notification to the owner that such building has been identified for participation in the Alternative Enforcement Program, provided, however, that the Department may deny such application if it has altready implemented the provisions of subdivision k of § 27-2153 of the Housing Maintenance Code within such four-month period.
(4) Such application will not be processed by the Department unless such building is registered with the Department in accordance with the provisions of §§ 27-2097 through 27-2099 of the Housing Maintenance Code.
§ 36-03 Alternative Enforcement Program Fees.
(a) An owner of a building who has been notified of participation in the Alternative Enforcement Program shall be subject to fees for any inspection, reinspection or any other action undertaken by the Department during the time period that such building is in such Program. The schedule of fees is as follows:
(1) For each reinspection performed upon application by an owner for dismissal of violations within the first four months after notification of participation in the Alternative Enforcement Program: $1,000 per building.
(2) For a building-wide inspection, monitoring of repair work and reassessment of a building pursuant to subdivisions k and m of § 27-2153 of the Housing Maintenance Code: $500 per dwelling unit every six months, beginning on the date of the building-wide inspection, with a maximum total fee of $1,000 per dwelling unit during participation in the Alternative Enforcement Program.
(3) For each inspection based upon a complaint that results in issuance of a class B or class C violation: $200 per inspection.
(4) For each reinspection pursuant to a certification of correction of violation(s) submitted to the Department, where the Department finds that one or more violations have not been corrected: $100 per reinspection per building.
§ 36-04 Education Course.
An owner or managing agent or other designated representative of a building which is the subject of an order by the Department pursuant to subdivision k of § 27-2153 of the Housing Maintenance Code, may be required to complete a course of training relating to building operation and maintenance, approved by the Department, prior to discharge of the building from the Alternative Enforcement Program. The charge for participation in such course shall be $300 for each participant. Such charge shall be paid prior to commencement of participation in such course.
§ 36-05 Criteria for Identification of Buildings for Participation in the Alternative Enforcement Program.
(a) Beginning in the sixth year of the Alternative Enforcement Program, the Department will use the following criteria to identify distressed buildings for participation in the program:
(1) A multiple dwelling that contains at least three but not more than nineteen dwelling units must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the three-year period prior to such identification that equals in the aggregate five or more such violations for every dwelling unit in the multiple dwelling; and
(ii) Paid or unpaid Emergency Repair Charges of five thousand dollars ($5,000.00) or more, which were incurred within the three-year period prior to such identification.
(2) A multiple dwelling that contains twenty or more dwelling units must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the three-year period prior to such identification that equals in the aggregate three or more such violations for every dwelling unit in the multiple dwelling; and
(ii) Paid or unpaid Emergency Repair Charges of two thousand five hundred dollars ($2,500.00) or more, which were incurred within the three-year period prior to such identification.
(1) A multiple dwelling that contains at least three but not more than nineteen dwelling units must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the five-year period prior to such identification that equals in the aggregate five or more such violations for every dwelling unit in the multiple dwelling; and
(ii) Paid or unpaid Emergency Repair Charges of five thousand dollars ($5,000.00) or more, which were incurred within the five-year period prior to such identification.
(2) A multiple dwelling that contains twenty or more dwelling units must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the five-year period prior to such identification that equals in the aggregate three or more such violations for every dwelling unit in the multiple dwelling; and
(ii) Paid or unpaid Emergency Repair Charges of two thousand five hundred dollars ($2,500.00) or more, which were incurred within the five-year period prior to such identification.
(1) The Department will identify no more than twenty-five multiple dwellings that contain less than six units for participation in the program. Such multiple dwellings must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the five-year period prior to such identification that equals in the aggregate five or more such violations for every dwelling unit in the multiple dwelling; and
(ii) Paid or unpaid Emergency Repair Charges of five thousand dollars ($5,000.00) or more, which were incurred within the five-year period prior to such identification;
(2) A multiple dwelling that contains at least six but not more than fourteen dwelling units must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the five-year period prior to such identification that equals in the aggregate five or more such violations for every dwelling unit in the multiple dwelling; and
(ii) Paid or unpaid Emergency Repair Charges of five thousand dollars ($5,000.00) or more, which were incurred within the five-year period prior to such identification.
(3) A multiple dwelling that contains fifteen or more dwelling units must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the five-year period prior to such identification that equals in the aggregate three or more such violations for every dwelling unit in the multiple dwelling; and
(ii) Paid or unpaid Emergency Repair Charges of two thousand five hundred dollars ($2,500.00) or more, which were incurred within the five-year period prior to such identification.
(1) A multiple dwelling that contains six or more dwelling units must have:
(i) A ratio of open hazardous and immediately hazardous violations that were issued by the Department within the five-year period prior to such identification that equals in the aggregate four or more such violations for every dwelling unit in the multiple dwelling; and
(ii) For purposes of identifying additional buildings for participation in the Alternative Enforcement Program pursuant to this paragraph, those buildings having the highest number of open hazardous and immediately hazardous violations within the five-year period prior to such identification shall be selected first.
§ 36-06. [Exclusions: “Rehabilitation”; Previous Participation.]
(a) For the purpose of excluding a building from the Alternative Enforcement Program pursuant to administrative code § 27-2153(e)(2) on the basis that the building is the subject of a loan provided by or through the department or the New York City Housing Development Corporation for the purpose of rehabilitation, the term "rehabilitation" shall mean that the scope of work for the building under the loan includes a building-wide replacement of a major component of the building.
Editor’s note: the bracketed title of this section was added by the codifier for the convenience of the code user and is not an official part of this code.
§ 37-01 Fees Authorized.
HPD shall be authorized to charge and collect the fees set forth in this chapter.
§ 37-02 Definitions.
For purposes of this chapter:
(1) six or more tax lots consisting entirely of vacant land, for which the valuation can be made solely based upon available comparable sales data; or
(2) any improved residential property consisting of four or more class A units; or
(3) any improved property consisting of a combination of commercial and residential uses; or
(4) any property consisting of a combination of vacant and improved land; or
(5) any other complex development project consisting of a combination of uses.
(1) five or fewer tax lots consisting entirely of vacant land, for which the valuation can be made solely based upon available comparable sales data; or
(2) any improved residential property consisting of not more than three class A residential units for which the valuation can be made solely based upon available comparable sales data.
§ 37-03 Amount of Fee.
The amount of each fee authorized under this chapter shall be as follows:
§ 37-04 [;Fees Due and Payable.];
(a) All fees authorized pursuant to this chapter shall be due and payable as directed by HPD. The fees set forth in this chapter shall be in addition to any other fees authorized under any other law or rules.
(1) One- to Four-Family Programs. Loans or grants made to owners of one- to four-family buildings for rehabilitation and repairs.
(2) Super Storm Sandy Disaster Recovery Programs. Community Development Block Grant Disaster Recovery Fund loans or grants made to owners for construction, rehabilitation, repair, or improvement of buildings impacted by Super Storm Sandy.
(3) Lead Paint Primary Prevention Program. Loans or grants made to building owners to treat lead-based paint hazards.
(4) Article 7A Financial Assistance. Loans made to administrators appointed under Real Property Actions and Proceedings Law Article 7A for the repair or rehabilitation of a subject building.
(5) Neighborhood Entrepreneurs Program. Loans made to neighborhood-based private property managers to own and manage occupied and vacant City-owned buildings.
(6) Neighborhood Redevelopment Program. Loans made to community-based, not-for-profit organizations for rehabilitation and operation of rental housing.
§ 38-01 Definitions.
As used in this chapter, the following terms shall have the following meaning:
§ 38-02 [Actions, Transactions and Agreements for Providing Affordable Housing Which Constitute “Business Dealings with the City”.]
(a) Except as otherwise provided in the Act and 28 RCNY § 38-03, actions, transactions and agreements for providing affordable housing shall constitute "business dealings with the city" for purposes of the Act where any such action, transaction or agreement involves:
(1) the disposition of City-owned real property; or
(2) a loan or grant by HPD or HDC, except as otherwise provided in 28 RCNY § 38-03; or
(3) any Discretionary Tax Benefit; or
(4) any discretionary approval following a public hearing by either the City Council or the Office of the Mayor, including, but not limited to, any approval pursuant to ULURP, UDAAP, the Urban Renewal Law, the PHFL or the Zoning Resolution; or
(5) the allocation of federal low income housing tax credits by HPD pursuant to Internal Revenue Code § 42; or
(6) the execution of an agreement with HPD regarding the creation of inclusionary housing in accordance with any applicable provision of the Zoning Resolution.
(1) For an action, transaction or agreement that involves the disposition of City-owned real property, the period commencing on the date that the proposed sponsor submits or makes a proposal to HPD, HDC or EDC to acquire such property and ending as provided in paragraph b of subdivision 18 of § 3-702 of the Act.
(2) For an action, transaction or agreement that involves a loan or grant by HPD or HDC, the period commencing on the date that the proposed sponsor makes or submits an application or proposal to HPD or HDC for such loan or grant and ending one year after the date of construction completion or the final advance or disbursement of funds pursuant to such loan or grant.
(3) For an action, transaction or agreement that involves a Discretionary Tax Benefit, the period commencing with the submission of an application for such exemption or abatement and ending one year after the date of approval of such exemption or abatement by the City Council.
(4) For an action, transaction or agreement that requires any discretionary approval following a public hearing by either the City Council or the Office of the Mayor, including, but not limited to, any approval pursuant to ULURP, UDAAP, the Urban Renewal Law, the PHFL or the Zoning Resolution, but not including the approval of a Discretionary Tax Benefit by the City Council, the period commencing with negotiations and ending as provided in paragraph b of subdivision 18 of § 3-702 of the Act, where applicable, or 120 days after approval by the City Council or the Office of the Mayor.
(5) For an action, transaction or agreement that involves the allocation of federal low income housing tax credits by HPD, the period commencing with the submission of an application for such tax credits to HPD and ending one year after the date of issuance by HPD of the Low Income Housing Credit Allocation and Certification form to the applicant.
(6) For an action, transaction or agreement that involves the execution of an agreement with HPD regarding the creation of inclusionary housing in accordance with any applicable provision of the Zoning Resolution, the period commencing with the submission of an application to HPD for such agreement, and ending one year after the date of execution by HPD of a certificate of completion for the inclusionary housing dwelling units.
(7) For an action, transaction or agreement that involves more than one of the actions, transactions and agreements set forth in subparagraphs one through six of this subdivision, the period commencing on the earliest date provided in such subparagraphs and ending on the latest date provided in such subparagraphs.
(8) Notwithstanding anything to the contrary contained herein, for any proposed action or transaction that HPD determines will not be consummated or for any proposed agreement that HPD determines will not be executed, the end date shall be one year after the date upon which HPD notifies the Office of the Mayor of such determination.
Editor’s note: the bracketed title of this 28 RCNY § 38-02 was added by the codifier for the convenience of the code user and is not an official part of this code.
§ 38-03 [Actions, Transactions and Agreements for Providing Affordable Housing Which Do Not Constitute “Business Dealings with the City”.]
(a) Notwithstanding any other provision of these rules to the contrary, actions, transactions and agreements for providing affordable housing shall not constitute "business dealings with the city" as defined in subdivision 18 of § 3-702 of the Act where any such action, transaction or agreement:
(1) is entered into with a housing development fund company that is formed as a cooperative corporation pursuant to PHFL Article XI and the Business Corporation Law, including any discretionary tax benefit granted to such company; or
(2) is entered into with a limited profit housing company formed pursuant to PHFL Article II that is organized and operated as a mutual company; or
(3) involves solely a mortgage modification; or
(4) involves solely the subordination, satisfaction, or assignment of a mortgage; or
(5) relates to approval of a certificate of incorporation for a housing development fund company; or
(6) involves solely a license agreement or lease for use of City-owned property for nominal consideration or no consideration; or
(7) is entered into by an individual or family in connection with the purchase of a one- to four-unit home, a condominium dwelling unit, or the shares attributable to a cooperative dwelling unit under a housing program administered by HPD; or
(8) involves a loan pursuant to PHFL § 8-b; or
(9) involves a loan or grant the sole purpose of which is the remediation of lead-based paint hazards; or
(10) involves exemption or abatement of real property taxes pursuant to RPTL §§ 420-a, 420-c, 421-a, 421-b, 488-a, or 489; or
(11) involves a change in ownership of property that is the subject of an action, transaction or agreement for providing affordable housing and that constituted “business dealings with the city” pursuant to subdivision a of 28 RCNY § 38-02; or
(12) involves an approval or consent granted pursuant to the provisions of an agreement with HPD, EDC or HDC providing for such approval or consent; or
(13) involves the conveyance of property pursuant to New York City Administrative Code § 11-412.1; or
(14) involves provision of relocation services pursuant to Administrative Code § 26-301 or the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. §§ 4601 et seq.); or
(15) is entered into for the purpose of settlement of litigation to which the City of New York, HDC, or EDC is a party; or
(16) is entered into by an individual or entity as a grantee or borrower of Community Development Block Grant Disaster Recovery funds in connection with the rehabilitation, construction, repair, or improvement of housing; or
(17) is not listed in 28 RCNY § 38-02.
Editor’s note: the bracketed title of this 28 RCNY § 38-03 was added by the codifier for the convenience of the code user and is not an official part of this code.
§ 39-01 Definitions.
As used in this chapter, the following terms shall have the following meanings:
Administrative Code. “Administrative Code” shall mean the Administrative Code of the City of New York.
Application. “Application” shall mean, collectively, any application for Tax Benefits submitted to HPD and all documents submitted therewith.
Approval Date. “Approval Date” shall mean the date upon which HPD approves the Certificate of Eligibility as stated therein.
Assistant Commissioner. “Assistant Commissioner” shall mean an Assistant Commissioner of HPD who has jurisdiction over Tax Benefit programs or such other person as may be designated in writing by the Commissioner of HPD.
Cause. “Cause” shall mean any Violation, Misrepresentation, Omission, Failure, or Discrimination, without regard to the date upon which HPD discovers such Violation, Misrepresentation, Omission, Failure, or Discrimination.
Cause Date. “Cause Date” shall mean the first date upon which any Cause occurred, without regard to the date upon which such Cause was discovered by HPD.
Certificate of Eligibility. “Certificate of Eligibility” shall mean a written final determination by HPD, issued on the basis of an Application, that a Property is eligible for the Tax Benefit. A Certificate of Eligibility shall not include a declaratory ruling or any other preliminary or informal communication regarding an actual or prospective Application.
Comments. “Comments ” shall mean any written comments and/or information that the Taxpayer submits to HPD during the Comment Period regarding the alleged Cause for Revocation of a Tax Benefit.
Comment Period. “Comment Period” shall mean a period specified in the Initial Notice during which the Taxpayer may submit Comments to HPD.
Cure Agreement. “Cure Agreement” shall mean an agreement with a Taxpayer (i) requiring such Taxpayer to cure a Cause for Revocation, and (ii) providing that the Tax Benefit will remain in place if the Taxpayer and any successors or assigns comply with all of their respective obligations thereunder; provided, however, that such agreement may provide for the partial or temporary Revocation of a Tax Benefit in the event of a partial cure or a cure that does not rectify a period of non-compliance.
Determination Notice. “Determination Notice” shall mean a written notice from HPD to the Taxpayer delivered after the Hearing or, if there is no Hearing, after the Comment Period stating the determination of the Assistant Commissioner regarding whether a Tax Benefit will be Revoked or will remain in effect. Any Determination Notice stating that a Tax Benefit will be Revoked shall specify the Revocation Date.
DHCR. “DHCR” shall mean the Division of Housing and Community Renewal of the State of New York or any successor agency.
Discrimination. “Discrimination” shall mean the direct or indirect denial to any person of any housing accommodations in the Property receiving the Tax Benefit, or any of the privileges or services incident to occupancy of such housing accommodations, in violation of any local, state or federal law prohibiting discrimination on the basis of race, color, creed, national origin, gender, sexual orientation, disability, marital status, age, religion, alienage or citizenship status, or the use of, participation in, or eligibility for a governmentally funded housing assistance program, including, but not limited to, the section 8 housing voucher program and the section 8 housing certificate program, 42 U.S.C. §§ 1437 et seq., or the senior citizen rent increase exemption program, pursuant to either chapter seven or section five hundred nine of title twenty-six of the Administrative Code; provided however, that “Discrimination” shall not include any act for which the applicable Law does not permit the Revocation of the Tax Benefit. The term “disability” as used in this subdivision shall have the meaning set forth in § 8-102 of the Administrative Code.
DOF. “DOF” shall mean the Department of Finance of the City of New York or any successor agency.
Effective Date. “Effective Date” shall mean the date upon which a Tax Benefit commences pursuant to applicable Law.
Expiration Date. “Expiration Date” shall mean the date upon which a Tax Benefit would expire pursuant to applicable Law.
Factual Issue. “Factual Issue” shall mean one or more issues of fact which, if resolved in favor of the Taxpayer, would require the conclusion that Cause for Revocation does not exist.
Failure. “Failure” shall mean the failure to (i) keep, preserve or make available upon request by HPD any Records required to be kept and maintained pursuant to 28 RCNY § 39-06 or pursuant to any other provision of this title or any Law, (ii) appear before HPD at any time or place named in a summons, or (iii) give testimony under oath as may be relevant or material to HPD’s inquiry relating to a Tax Benefit.
Hearing. “Hearing” shall mean an administrative hearing regarding one or more Factual Issues to determine whether there is Cause to revoke a Tax Benefit, at which administrative hearing the Taxpayer may be represented by counsel and may present witnesses and other evidence.
Hearing Notice. “Hearing Notice” shall mean a written notice from HPD to the Taxpayer stating the date, time, and location of a Hearing, identifying one or more Factual Issues to be addressed at such Hearing, and informing the Taxpayer that he or she may be represented by counsel and may present witnesses and other evidence at such Hearing.
Hearing Officer. “Hearing Officer” shall mean a person designated by HPD.
HPD. “HPD” shall mean the Department of Housing Preservation and Development of the City of New York or any successor agency.
Initial Notice. “Initial Notice” shall mean a written notice from HPD to the Taxpayer stating the intention to Revoke a Tax Benefit for Cause and the proposed Revocation Date, identifying the Property and Tax Benefit affected, briefly describing the alleged Cause for Revocation of such Tax Benefit, stating the Comment Period, and providing an address for the submission of Comments during the Comment Period.
Law. “Law” shall mean, collectively, the Real Property Tax Law, any provision of the Administrative Code enacted pursuant thereto, and any rule of the City of New York promulgated pursuant thereto.
Misrepresentation. “Misrepresentation” shall mean the submission of an Application which contains incorrect, misleading or fraudulent information.
Noticed Property. “Noticed Property” shall mean a Property that is the subject of an Initial Notice, Pre-Hearing Notice, Hearing Notice, or Determination Notice.
Omission. “Omission” shall mean the submission of an Application which omits material information.
Pre-Hearing Notice. “Pre-Hearing Notice” shall mean a written notice from HPD to the Taxpayer stating (i) that the Taxpayer may request a Hearing prior to Revocation regarding one or more Factual Issues identified in such notice, (ii) the date by which such written request must be received by HPD, and (iii) an address for the submission of such written request.
Property. “Property” shall mean the real property receiving a Tax Benefit, including the land and all improvements thereon.
Records. “Records” shall mean all books, papers, records or other data which may be relevant or material to any Application or Tax Benefit, including an annual schedule of rents for each dwelling unit in the Property where so required by the Law governing any Tax Benefit.
Revocation or Revoke. “Revocation” or “Revoke” shall mean any partial or total suspension, reduction, termination or revocation of any Tax Benefit which takes effect as of a date which precedes the Expiration Date of such Tax Benefit, except where State law specifically authorizes the termination of one Tax Benefit upon the commencement of another Tax Benefit.
Revocation Date. “Revocation Date” shall mean the date as of which HPD proposes to Revoke, or does Revoke, a Tax Benefit. The Revocation Date may be upon such date as HPD may determine, but shall not precede the Cause Date unless the Property received a Tax Benefit before fulfilling all eligibility criteria for such Tax Benefit, in which case the Revocation Date may precede the Cause Date.
Tax Benefit. “Tax Benefit” shall mean any exemption from or abatement of real property taxation pursuant to Law with respect to which HPD makes determinations of eligibility.
Taxpayer. “Taxpayer” shall mean (i) the individual or entity located at the address to which DOF sends tax bills for the applicable Property, (ii) any current holder of fee title to such Property whose interest is clearly recorded in the office of the City Register in the applicable borough, and (iii) any current mortgagee of such Property whose mortgage interest in such Property is clearly recorded in the office of the City Register in the applicable borough.
Violation. “Violation” shall mean any non-compliance with applicable Law.
§ 39-02 Revocation of Tax Benefits for Cause.
(a) HPD may Revoke a Tax Benefit for Cause at any time through the procedure set forth in this section.
§ 39-03 Requirements of Law Survive Revocation.
The Revocation of a Tax Benefit pursuant to this chapter shall not exempt any housing accommodations in the applicable Property from continued compliance with the requirements of the Law pursuant to which such Tax Benefit was granted, including, but not limited to, any provision of such Law regarding rent control or rent stabilization. Such housing accommodations shall be operated in compliance with such requirements of such Law until the Expiration Date or for such longer period as may be specified by Law.
§ 39-04 Rent Stabilization.
At any Hearing, the information contained in DHCR’s database shall be definitive evidence of whether any housing accommodations have been registered with DHCR which may only be rebutted by the presentation of certified copies of other DHCR documentation.
§ 39-05 Notices.
HPD shall deliver all Initial Notices, Pre-Hearing Notices, Hearing Notices, and Determination Notices to the Taxpayer by mail to (i) the address to which DOF delivers real property tax bills for the Noticed Property, (ii) the last address indicated in documents recorded in the office of the City Register for any Taxpayer holding fee title to the Noticed Property, (iii) the last address indicated in documents recorded in the office of the City Register for any Taxpayer holding a mortgage on the Noticed Property, (iv) the address of any owner registered for the Noticed Property in accordance with Article two of subchapter four of Chapter two of Title twenty-seven of the Administrative Code, and (v) the address of any agent registered for the Noticed Property in accordance with Article two of subchapter four of Chapter two of Title twenty-seven of the Administrative Code. Any such notice shall be deemed to have been given upon the third day after such notice has been deposited in the United States mail.
§ 39-06 Record Keeping, Subpoenas and Oaths.
(a) For any Application granted on or after January 1, 2010, the Taxpayer shall keep and maintain all Records for six years after the later of the Approval Date or the Effective Date, and shall make such Records available for inspection by HPD upon written request therefor. For any Application granted before January 1, 2010, the Taxpayer shall keep and maintain all Records required by the Law pursuant to which the Tax Benefit was granted or by any other applicable law or rule.
§ 40-01 Definitions.
For purposes of this chapter:
§ 40-02 Electronic Certification Program.
(a) An Authorized Certifier may certify correction of violations of the Housing Maintenance Code to HPD electronically, pursuant to this chapter, after enrolling in the Electronic Certification program, provided, however, that Electronic Certification may not be used to certify correction of any violation of article 14 of subchapter two of the Housing Maintenance Code.
§ 41-01 Definitions.
As used in this chapter, the following terms shall have the following meanings. Capitalized terms not specifically defined in this chapter, shall have the meanings set forth in the Zoning Resolution.
Administering Agent Agreement. “Administering Agent Agreement” shall mean an agreement between HPD and an Administering Agent concerning the rights, responsibilities and compensation of such Administering Agent.
Administering Agent Reserve Account. “Administering Agent Reserve Account” shall mean an account that is separate from a Building’s reserve accounts and is held as determined by HPD, and which shall be used, with HPD approval, to pay the Building’s Administering Agent for services rendered in accordance with the Program.
Annual Household Income. “Annual Household Income” shall mean the total income as specified by HUD in 24 C.F.R. § 5.609, including all net income from Assets with a cash value in excess of $5,000, to be received by the Household, from all sources for the twelve month period prior to the Income Qualification Date.
Application Deadline. “Application Deadline” shall mean the date by which HPD must receive an application to purchase a Homeownership Affordable Housing Unit.
Appreciation Index At Resale. “Appreciation Index At Resale” shall mean the quotient of the Appreciation Index on the Contract Date and the Appreciation Index on the previous Sale Date.
Asset. “Asset” shall mean property real or personal, tangible or intangible, which may produce financial gain.
Assisted Affordable Unit. “Assisted Affordable Unit” shall have the meaning set forth for “Affordable Housing Unit” in Section 421-a(16)(a)(xv) of the Real Property Tax Law.
Capital Reserve Account. “Capital Reserve Account” shall mean an account that is separate from a Building’s capital reserve account(s) and held as determined by HPD and shall be used, with HPD approval, to pay for all or part of a Homeownership Affordable Housing Unit’s proportionate share of such Building’s capital expenses.
Commissioner. “Commissioner” shall mean the Commissioner of HPD or his or her designee.
Common Expenses. “Common Expenses” shall mean and include for a Condominium Association, all expenses of operation thereof and all sums designated common expenses in accordance with Article 9-B, Section 339-e of the Real Property Law and for a Cooperative Corporation all expenses of operation thereof and all sums designated common expenses pursuant to the provisions of the by-laws and proprietary lease for such Cooperative Corporation.
Community Board. “Community Board” shall mean a local district advisory board created pursuant to Section 2800 of the New York City Charter that, in part, consults, assists and advises legislative bodies or borough presidents with respect to any matter relating to the welfare of the district and its residents.
Contract Date. “Contract Date” shall mean the date a contract to purchase a Homeownership Affordable Housing Unit is executed.
Council Member. “Council Member” shall mean an elected member of the New York City Council.
CPI. “CPI” shall mean the Consumer Price Index for all urban consumers, as defined by the United States Bureau of Labor Statistics, for the twelve months ended on June 30th.
Department of Finance or DOF. “Department of Finance” or “DOF” shall mean the Department of Finance of the City of New York or any successor agency or department thereto.
DHCR. “DHCR” shall mean the Division of Housing and Community Renewal of the State of New York or any successor agency.
Family Member. “Family Member” shall have the meaning set forth by DHCR in 9 NYCRR § 2520.6.
First Time Homebuyer Preference. “First Time Homebuyer Preference” shall mean a priority to purchase a Homeownership Affordable Housing Unit which is provided to an Eligible Buyer who is purchasing a Dwelling Unit for the first time.
Flip Tax. “Flip Tax” shall mean 7% of net profits from the sale of a Homeownership Affordable Housing Unit.
HDC. “HDC” shall mean the New York City Housing Development Corporation.
HHF. “HHF” shall mean the Household Factor established by HPD, based on the family size adjustment percentages established by HUD.
HUD. “HUD” shall mean the United States Department of Housing and Urban Development or any successor agency.
Income Marketing Band. “Income Marketing Band” shall mean that, except as permitted in the Zoning Resolution, the Monthly Housing Costs of a particular Homeownership Affordable Housing Unit represents not less than 25% and not more than 35% of such Household’s Annual Household Income.
Income Qualification Date. “Income Qualification Date” shall mean the date upon which the Administering Agent verifies that a potential Homeowner’s Annual Household Income complies with the Eligible Buyer requirements for a particular Homeownership Affordable Housing Unit.
Internal Transfer Preference. “Internal Transfer Preference” shall mean a priority to purchase a Homeownership Affordable Housing Unit which is provided to an Eligible Buyer who (i) already owns a Homeownership Affordable Housing Unit in the same Building or in the development containing such Building, and (ii) agrees to sell his or her existing Homeownership Affordable Housing Unit on or before the date upon which he or she acquires the new Homeownership Affordable Housing Unit.
Minimum Quality Standards. “Minimum Quality Standards” shall mean livability standards that are in compliance with 24 C.F.R. § 982.401 or any superseding regulations established by HUD.
Monthly Housing Costs. “Monthly Housing Costs” shall mean, for a Household, the sum of Monthly Fees, monthly utility allowances, Mortgage Payments and monthly property taxes, if applicable.
Operating Reserve Account. “Operating Reserve Account” shall mean an account that is separate from a Building’s operating account(s) and is held as determined by HPD, and which shall be used, with HPD approval, to pay for all or part of a Homeownership Affordable Housing Unit’s proportionate share of such Building’s Common Expenses, in the form of Monthly Fees.
Partial Inclusionary Building. “Partial Inclusionary Building” shall mean a Building that consists of both Affordable Housing and Dwelling Units that are not restricted, in accordance with the Program, to occupancy by Low Income Households, Moderate Income Households or Middle Income Households.
Prevailing Interest Rate. “Prevailing Interest Rate” shall mean the single family mortgage rate for a thirty-year fixed rate loan established by the Federal Home Loan Mortgage Association and the Federal National Mortgage Association that is quoted, for Sale or Resale, in the month that the Homeownership Affordable Housing Unit is marketed for Sale or Resale.
Program. “Program” shall mean the Zoning Resolution, Regulatory Agreement and this Chapter.
Public Funding. “Public Funding” shall have the meaning set forth in Section 23-90 of the Zoning Resolution, except that, in accordance with the authority granted therein with respect to these guidelines, for Regulatory Agreements executed on or after December 1, 2011, “Public Funding” shall not include an exemption of real property taxes pursuant to Article II of the Private Housing Finance Law.
Rent Guidelines Board. “Rent Guidelines Board” shall mean the New York City Rent Guidelines Board established pursuant to Chapter 4 of Title 26 of the New York City Administrative Code.
Reserve Accounts. “Reserve Accounts” shall mean, for Generating Sites containing at least one Homeownership Affordable Housing Unit, an Operating Reserve Account, a Capital Reserve Account and an Administering Agent Reserve Account.
Successor. “Successor” shall mean a Family Member that inherits, by either intestate succession or testamentary disposition, a Homeownership Affordable Housing Unit.
Zoning Resolution. “Zoning Resolution” shall mean the Zoning Resolution of the City of New York.
§ 41-02 Administering Agents.
(a) General Provisions For Rental and Homeownership Affordable Housing.
(1) By the close of financing for the Generating Site, the owner of the Affordable Housing shall enter into an agreement with an Administering Agent, for such Administering Agent to perform the duties as specified in the Program. At no time during the term of the Regulatory Agreement shall the Affordable Housing be without an Administering Agent.
(2) All affidavits from the Administering Agent shall be submitted to HPD by March 31st of the year in which such affidavits are due.
(3) Administering Agents shall retain records that form the basis of any affidavit submitted to HPD for the duration of the homeowner’s ownership of an Affordable Housing Unit, plus six (6) years after such homeowner no longer owns such Affordable Housing Unit.
(1) Sponsor Review (i.e., a background investigation of the principals of the Administering Agent);
(2) Determination that the Administering Agent is a not-for-profit;
(3) Implementation by the Administering Agent of satisfactory procedures for relocating renters, when applicable; and
(4) Determination that the Administering Agent is not an owner, affiliate of owner or managing agent of the Generating Site, unless HPD determines that the Generating Site is participating in a federal, state or local program that has procedures for performing paragraphs one through three of this subdivision or the owner and any such managing agent or affiliate are not-for-profit entities with adequate safeguards to ensure that such entities comply with the Program.
(1) Initial rental, re-rental and Sale of Affordable Housing must proceed in accordance with HPD’s marketing guidelines.
(2) The following procedures shall apply to the Resale of Homeownership Affordable Housing:
(i) Homeowner Notice of Intent to Sell. A Homeowner, using an HPD-approved notice of intent to sell form, shall notify the applicable Administering Agent of the intent to sell his and/or her Homeownership Affordable Housing Unit.
(ii) Administering Agent Notification to HPD of Homeowner’s Intent to Sell a Homeownership Affordable Housing Unit. Within fourteen (14) business days from receipt of an HPD-approved notice of intent to sell form from a Homeowner, the Administering Agent must, using an HPD-approved form, give HPD information concerning:
(A) the date upon which the Administering Agent received the Homeowner’s notice of intent to sell form;
(B) the address of the Homeownership Affordable Housing Unit and the Community Board(s) in which such unit is located;
(C) the unit size of the Homeownership Affordable Housing Unit (including square footage and number of rooms);
(D) the unit type – cooperative or condominium – of the Homeownership Affordable Housing Unit;
(E) the last Sale Date and the price at which the Homeownership Affordable Housing Unit was sold on such date;
(F) the estimated Monthly Housing Costs for the Homeownership Affordable Housing Unit;
(G) the Maximum Resale Price of the Homeownership Affordable Housing Unit;
(H) the Down Payment required to purchase the Homeownership Affordable Housing Unit;
(I) the Income Marketing Band for the Homeownership Affordable Housing Unit; and
(J) the Flip Tax applicable to the Homeownership Affordable Housing Unit.
(iii) Marketing of the Homeownership Affordable Housing Unit.
(A) Listing the Homeownership Affordable Housing Unit. Within fourteen (14) business days from its receipt of the notice of intent to sell from a Homeowner, the Administering Agent must list the availability of such Homeownership Affordable Housing Unit for sale on the Administering Agent’s website and send a copy of such listing to the Community Board(s) in which the Homeownership Affordable Housing Unit is located and to the Council Member(s) that represent(s) the council district(s) in which the Homeownership Affordable Housing Unit is located. Such listing must include:
(1) the address of the Homeownership Affordable Housing Unit and Community Board(s) in which such unit is located;
(2) the unit size of the Homeownership Affordable Housing Unit (including square footage and number of rooms);
(3) the unit type – cooperative or condominium – of the Homeownership Affordable Housing Unit;
(4) the last Sale Date and the price at which the Homeownership Affordable Housing Unit was sold on such date;
(5) the estimated Monthly Housing Costs for the Homeownership Affordable Housing Unit;
(6) the Maximum Resale Price of the Homeownership Affordable Housing Unit;
(7) the Down Payment required to purchase the Homeownership Affordable Housing Unit;
(8) the Income Marketing Band for the Homeownership Affordable Housing Unit;
(9) the Flip Tax applicable to the Homeownership Affordable Housing Unit;
(10) an HPD-approved application form for potential buyers, on which potential buyers are directed to return such application form with supporting documentation to HPD and potential buyers are informed that the Administering Agent is prohibited from charging an application fee; and
(11) the Application Deadline.
(iv) The Lottery Process. HPD will create a list of potential buyers randomly-ordered from the applications received on or before the Application Deadline and will forward such list to the Administering Agent. The Administering Agent will select Eligible Buyers, beginning with the first name on the potential buyer list. The first potential buyer who meets the requirements of the Program will be offered an opportunity to: (A) at least two weeks prior to the closing date for the Homeownership Affordable Housing Unit, inspect the Homeownership Affordable Housing Unit, and (B) purchase the Homeownership Affordable Housing Unit.
(v) Closings. Homeowners shall enter into a performance or enforcement mortgage agreement with HPD and shall agree to all Program restrictions concerning the ownership and Sale or Resale of the Homeownership Affordable Housing Unit.
(vi) Homeownership Education. The Administering Agent must either provide HPD approved classes for homebuyers concerning the responsibilities attending Homeownership or direct potential buyers to HPD-approved providers of such classes.
§ 41-03 Calculating the Maximum Resale Price for Homeownership Affordable Housing Units.
(a) The Maximum Resale Price for a Homeownership Affordable Housing Unit is the lesser of the Appreciated Price or Appreciation Cap.
§ 41-04 First Time Homebuyer Requirement.
To qualify as a first time homebuyer, no member of the qualifying Household shall have owned any interest in a home, including any interest in a Cooperative Corporation or a residential condominium unit, for the five (5) year period immediately prior to the Application Deadline.
§ 41-05 First Time Homebuyer Education Requirement.
Prior to qualification as an Eligible Buyer, each applicant for a Homeownership Affordable Housing Unit shall attend a first-time homebuyer course given by a provider that is approved by HPD, and must provide evidence of completion of such course to the Administering Agent. Approved providers of first-time homebuyer courses are listed on HPD’s web site.
§ 41-06 Marketing Preferences.
In addition to the preference categories stated in HPD’s marketing guidelines, Homeownership Affordable Housing Units shall be marketed in accordance with the Internal Transfer Preference and the First Time Homebuyer Preference. The Internal Transfer Preference shall (i) take priority over the First Time Homebuyer Preference, and (ii) only be made available for the purpose of replacing an existing Homeowner’s Homeownership Affordable Housing Unit, and not for the purpose of acquiring an additional Homeownership Affordable Housing Unit, whether for occupancy by the Eligible Buyer, his or her Household members, non-resident Family Members, or any other person.
§ 41-07 Primary Residence Requirement.
(a) Owners of Homeownership Affordable Housing Units must occupy such Homeownership Affordable Housing Units as their primary residences, as determined by the Administering Agent, in accordance with DHCR's criteria for primary residence occupancy for rental units in Rent Stabilization.
§ 41-08 Subletting.
Notwithstanding the provisions of Section 23-962 of the Zoning Resolution, in a Generating Site that is a Partial Inclusionary Building, the Administering Agent may approve a Homeowner’s request to sublet only if such subletting meets the subletting requirements in effect for all units at such Generating Site.
§ 41-09 Title Changes.
A Homeowner may (i) transfer title to a Homeownership Affordable Housing Unit upon Resale, or (ii) with the prior written approval of the Administering Agent, modify title to a Homeownership Affordable Housing Unit in order to add or delete a person from title due to marriage, domestic partnership, divorce, death or succession, provided that such Homeowner does not receive anything of value in connection with such modification of title, or (iii) with the prior written approval of the Administering Agent, modify title to a Homeownership Affordable Housing Unit for any other purpose approved in writing by HPD, provided that such Homeowner does not receive anything of value in connection with such modification of title. Before approving any title modifications, the Administering Agent must receive a written notarized notification from the Homeowner of his or her intent to modify title, along with documentation supporting any such proposed modification and an affirmation that no consideration in connection with such proposed modification has been or will be received.
§ 41-10 Successors.
(a) A Successor who qualifies as an Eligible Buyer may own a Homeownership Affordable Housing Unit in accordance with the requirements of the Program.
§ 41-11 Refinancing.
(a) Homeowners may refinance existing Mortgages, subject to the following limitations:
(1) the value of the new loan must not exceed ninety percent (90%) of the Maximum Resale Price, calculated as of the date that a Homeowner notifies the Administering Agent of an intent to refinance;
(2) the new loan must be at a fixed interest rate;
(3) the new loan must be from an approved institutional lender; and
(4) the Administering Agent must approve such refinancing.
§ 41-12 Minimum Quality Standards.
(a) Each Homeowner shall be obligated to maintain each Homeownership Affordable Housing Unit in accordance with Minimum Quality Standards and, to the extent required by law, the New York City Building Code and the New York City Housing Maintenance Code. Prior to any Resale, HPD or its designee shall inspect the Homeownership Affordable Housing Unit and shall:
(1) offer the Homeowner an opportunity before the Sale Date, to remedy any condition that violates such Minimum Quality Standards, or
(2) require retention of a portion of the Resale proceeds equal to the repair cost estimates established by HPD for remedying such condition(s).
§ 41-13 Monthly Fees and Special Assessments.
(a) Prior to Initial Occupancy, HPD must approve the Monthly Fees charged to Homeowners. The total amount of increases in Monthly Fees charged to a Homeownership Affordable Housing Unit over a twelve month period, shall be the lesser of:
(1) the increase in Monthly Fees required to cover Common Expenses for such twelve month period; and
(2) a percentage increase in Monthly Fees equal to the percentage increase in rents approved by the Rent Guidelines Board for two (2) year rent stabilized leases, for such twelve month period.
§ 41-14 Reserve Accounts for Homeownership Generating Sites.
(a) General. Each Homeownership Generating Site must have Reserve Accounts. Reserve Accounts will be held as blocked reserves at HDC unless HPD permits such accounts to be held in accordance with requirements of another City, State, or Federal housing program.
(1) Operating Reserve Accounts for Homeownership Generating Sites must be funded by the date of issuance of the Completion Notice in an amount equal to at least six (6) months of projected operating costs for the Homeownership Affordable Housing Units.
(2) Capital Reserve Accounts for Homeownership Generating Sites must be funded by the date of issuance of the Completion Notice in the amount of two dollars and twenty-five cents ($2.25) per square foot of Homeownership Affordable Housing.
(3) Administering Agent Reserve Accounts for Homeownership Generating Sites must be funded by the date of the Completion Notice in the following manner:
(i) An initial payment by the developer of the Affordable Housing as specified in the Regulatory Agreement;
(ii) A surcharge, to be to be applied as part of the applicable Monthly Fees for Homeownership Affordable Housing Units; and
(iii) A Flip Tax imposed upon the seller of a Homeownership Affordable Housing Unit at Resale.
(1) Operating Reserve Accounts.
(i) In Partial Inclusionary Buildings, when permitted increases to Monthly Fees charged to Homeownership Affordable Housing Units do not cover their proportionate share of the Homeownership Generating Site’s operating costs, requests for drawdowns from the Operating Reserve Account may be made to HPD to cover the documented increases in the following costs if they are part of Common Expenses: fuel, electricity, water, sewer, Building staff salaries and taxes.
(ii) In Generating Sites that consist entirely of Affordable Housing, when permitted increases to Monthly Fees charged to Homeownership Affordable Housing Units do not cover their proportionate share of the Homeownership Generating Site’s Common Expenses, funds from the Operating Reserve Account may be used to cover operating deficits.
(2) Capital Reserve Accounts.
(i) In Partial Inclusionary Buildings, funds from the Capital Reserve Account may be used, with HPD approval, to pay for all or part of the Homeownership Affordable Housing Units’ proportionate share of the Generating Site’s Building-wide special assessments for the repair or replacement of Capital Elements.
(ii) In Generating Sites that consist entirely of Affordable Housing, funds from the Capital Reserve Account may be used, with HPD approval, to pay for all or part of the repairs or replacements of Capital Elements in the Generating Site.
(iii) In addition, HPD may approve the use of funds from the Capital Reserve Account to pay for repairs to Homeownership Affordable Housing Units.
(3) Administering Agent Reserve Accounts. HPD will use Administering Agent Reserve Accounts to pay Administering Agents for services rendered in accordance with the Program and the Administering Agent Agreement.
(1) Operating and Capital Reserve Accounts. With the authorization of the Condominium Association or the board of the Cooperative Corporation, the Administering Agent will submit to HPD a request for a drawdown, with supporting information. If HPD approves the request, HPD will submit the request to HDC for a drawdown from the appropriate Reserve Accounts.
(2) Administering Agent Reserve Account. In order to receive funds from the Administering Agent Reserve Account, a Homeownership Generating Site must submit payment requests to HPD, along with proof of Administering Agent services rendered. If the payment request is satisfactory to HPD, HPD will request a drawdown from the Administering Agent Reserve Account for payment to the Administering Agent.
§ 41-15 Measuring Affordable Floor Area.
(a) In order to determine the amount of Floor Area of an Affordable Housing Unit in a Generating Site, the square footage within the inside face of the walls enclosing such Affordable Housing Unit, (which is all floor surfaces within the Affordable Housing Unit, including closets, and the partitions that separate rooms that are within the same Affordable Housing Unit), shall be measured. Such measurement must exclude (i) the thickness of exterior walls, (ii) the thickness of partitions separating such Affordable Housing Unit from any other Dwelling Units, Rooming Units or other spaces, and (iii) the portions of such Affordable Housing Unit that do not qualify as Floor Area.
§ 41-16 Housing Standards.
(a) Except where the layout is altered, HPD may exempt Preservation Affordable Housing and Substantial Rehabilitation Affordable Housing from the requirement that such Affordable Housing be free of Housing Maintenance Code A and B non-hazardous violations.
(1) Beam Replacement (to the extent required by HPD)
(2) New Sub flooring
(3) New Partition Framing
(4) New Sheetrock walls and settings
(5) New windows
(6) New finish flooring, roofing and insulation
(7) New kitchen cabinets
(8) New baths with ceramic tile finishes
(9) New interior and exterior doors
(10) New finish carpentry
(11) New plumbing
(12) New heating systems
(13) New electrical systems
(14) New elevators or elevator modernization (where applicable)
(15) Masonry repairs (to the extent required by HPD)
(16) New fire escapes (to the extent required by HPD)
(1) there are tenants who are returning to such Affordable Housing Units after rehabilitation is completed,
(2) the Substantial Rehabilitation Affordable Housing is the subject of an in rem tax lien foreclosure judgment for the City of New York, or
(3) the Substantial Rehabilitation Affordable Housing is currently owned by a housing development fund corporation or other entity designated by HPD.
§ 41-17 Commencement Date for New Construction Homeownership Affordable Housing.
"Commencement Date" shall mean for a Generating Site that is New Construction Homeownership Affordable Housing, the date upon which (a) written contracts to purchase at least fifty percent (50%) of the Homeownership Affordable Housing Units in such Generating Site have been signed with separate Households of Eligible Buyers, and (b) a bona fide Eligible Buyer who is not purchasing a Homeownership Affordable Housing Unit as an accommodation to the Generating Site has closed on the purchase of such Homeownership Affordable Housing Unit.
§ 41-18 Rent-up Date for New Construction Rental Affordable Housing.
"Rent-up Date" shall mean when at least ten percent (10%) of the New Construction rental Affordable Housing Units have been leased to tenants in accordance with the Program.
§ 41-19 Grandfathered Tenants in Homeownership Affordable Housing.
A rental Building that qualifies for Preservation Homeownership Affordable Housing or Substantial Rehabilitation Homeownership Affordable Housing may convert to Homeownership Affordable Housing. Upon conversion to Homeownership Affordable Housing, tenants in legal occupancy in such a Building who do not wish to purchase a Homeownership Affordable Housing Unit will be treated the same as Grandfathered Tenants in rental Affordable Housing. Such Grandfathered Tenants will also retain the right to purchase their Dwelling Unit. When a Grandfathered Tenant chooses to vacate a Homeownership Affordable Housing Unit, such unit must be sold to an Eligible Buyer.
§ 41-20 Renters In New Construction Homeownership Affordable Housing.
New Construction Homeownership Affordable Housing Units that are not purchased by Eligible Buyers may be rented in accordance with the rental provisions of the Program on or after the date of issuance of a Completion Notice for New Construction Affordable Housing containing such unit. In addition, for Households that meet the requirements of Section 23-962(f)(1) of the Zoning Resolution, New Construction Homeownership Affordable Housing Units may be rented in accordance with the rental provisions of the Program on or after either (a) the date of issuance of a Completion Notice for New Construction Affordable Housing containing such unit, or (b) the date that such New Construction Homeownership Affordable Housing Unit is issued a temporary or permanent certificate of occupancy.
§ 41-21 Distribution of Affordable Housing Units.
Where there are insufficient rental and Homeownership New Construction Affordable Housing Units to distribute on not less than sixty-five (65%) of the Residential Stories, as specified Section 23-96(b)(1) of the Zoning Resolution, New Construction Affordable Housing Units shall be distributed on as many Residential Stories as possible.
§ 41-22 HPD Approval.
Wherever the Zoning Resolution states that HPD’s approval is required, such approval must be in writing and signed by the Commissioner.
§ 41-23 Affordable Housing Plans and MIH Applications.
(a) An Affordable Housing Plan or MIH Application must be submitted to HPD with a fee of one hundred dollars ($100.00).
§ 41-24 [Affordable Housing Fund Contribution.]
(a) General Provisions For the Payment of the Affordable Housing Fund Contribution.
(1) Prior to the issuance of a Permit Notice for an MIH Development that is eligible and elects to make a contribution to the Affordable Housing Fund, the following must occur:
(A) Approval of such MIH Development’s MIH Application by HPD.
(B) Recordation against the MIH Zoning Lot of a restrictive declaration setting forth the amount of the Affordable Housing Fund contribution and the amount of residential floor area to be constructed at the MIH Development. Such restrictive declaration must be approved in form and in substance by HPD.
(C) Payment to HPD of the full amount of the MIH Development’s contribution to the Affordable Housing Fund by a certified check or bank check payable to the New York City Housing Development Corporation.
(2) The Affordable Housing Fund contribution shall be held by HDC or such other depositary as HPD designates.
(1) Determining Contribution Per Square Foot. The amount of the Affordable Housing Fund contribution per square foot for each Fee Tier is determined by calculating the difference between the Market Price and the Affordable Price for each Fee Tier. However, HPD shall establish a minimum Affordable Housing Fund contribution amount per square foot based on the approximate maximum per square foot subsidy that HPD and HDC would contribute to newly constructed affordable housing under an affordable housing program serving predominantly low-income households.
(2) Calculating Market Price. Market Price is an approximation of the market price per square foot for a residential development, enlargement or conversion. A Market Price is calculated for each Fee Tier using DOF Data for that Fee Tier. The Market Price for a Fee Tier is equal to the fortieth percentile sales price per square foot for units that are in developments meeting the unit count and maximum square footage eligibility criteria for the Affordable Housing Fund option.
(3) Calculating Affordable Price. Affordable Price is an approximation of the price per square foot of affordable residential floor area. One Affordable Price serves all Fee Tiers. The Affordable Price is equal to the price calculated to be affordable to the mean of the maximum weighted averages of Income Bands associated with each of the options set forth in Zoning Resolution §§ 23-154(d)(3)(i)-(ii) divided by the median size of units in the DOF Data used to determine Market Prices.
(1) The Affordable Housing Fund contribution made by an MIH Development equals the mean amount of Affordable Floor Area such MIH Development would have otherwise been required to provide under Zoning Resolution §§ 23-154(d)(3)(i)-(ii) multiplied by the applicable amount of contribution per square foot in effect at the time the MIH Application is submitted to HPD for the community district in which the MIH Development is located. The Affordable Housing Fund contribution per square foot of Affordable Floor Area for each community district is as follows:
| Fee Tier | Community District | Amount of Affordable Housing Fund Contribution Per Square Foot |
|---|---|---|
| 1 | 101 102 103 104 105 106 107 108 | $1,100 |
| 2 | 301 302 306 402 | $750 |
| 3 | 109 110 111 303 304 307 308 401 | $575 |
| 4 | 112 208 309 310 311 312 313 314 315 403 404 405 406 407 408 409 411 | $320 |
| 5 | 201 202 203 204 205 206 207 209 210 211 212 305 316 317 318 410 412 413 414 501 502 503 | $270 |
~
(2) HPD will update the schedule of Affordable Housing Fund contributions no later than July 1st of each year.
§ 41-25 Limitations on Generation of Floor Area Compensation.
For New Construction Affordable Housing, Assisted Affordable Units shall not generate any Floor Area Compensation for any Compensated Development other than (a) a Compensated Development on the zoning lot on which such Assisted Affordable Units are located, or (b) a Compensated Development on a development site on which such Assisted Affordable Units are located where such development site includes two or more zoning lots that were reviewed and approved as a single unit pursuant to the Zoning Resolution.
§ 42-01 Definitions.
As used in this chapter, the following terms will have the meanings set forth below:
“Accelerated Default.” A Default based in whole or in part upon any conduct, activity, or condition occurring in or immediately adjacent to the Lot and caused by the Gardening Group or circumstances under its control that (i) is contrary to law, (ii) constitutes a public nuisance, or (iii) affects, or poses a threat to, the health or safety of the community in which the Lot and Garden are located.
“Alternate Garden Contact Person.” An individual registered with GreenThumb as the secondary representative of a Gardening Group.
“Alternate Site List.” Either (i) a list of available City-owned vacant land within one-half mile of the Lot upon which an existing Garden is located, including the address, block and lot, and approximate size of each parcel of land contained therein, (ii) where there is no such available City-owned vacant land within one half mile of such Lot, a list of available City-owned vacant land within the community district in which such Lot is located, including the address, block and lot, and approximate size of each parcel of land contained therein; or (iii) a statement that there is no available City-owned vacant land within either one-half mile of such Lot or within the community district in which such Lot is located.
“Alternate Site Notice.” A notice that transmits an Alternate Site List to a Garden Contact Person and Alternate Garden Contact Person and, if such Alternate Site List contains available City-owned vacant land, states that (i) the Garden Contact Person may select any site from such Alternate Site List and inform HPD and GreenThumb of such selection in writing within 45 days after the date of such notice, (ii) failure to inform HPD and GreenThumb of the selection of a site from the Alternate Site List within 45 days after the date of such notice will be deemed to be a rejection of the offer, (iii) rejection of the offer may result in a Transfer without relocation of the Garden, and (iv) if the Garden Contact Person accepts a site from the Alternate Site List, GreenThumb will offer an opportunity to register and license such new site. The Alternate Site List may be incorporated into the text of, and will in any event be deemed to be incorporated by reference in, the Alternate Site Notice.
“City.” The City of New York.
“Default.” A Gardening Group’s failure or refusal to (i) comply with GreenThumb Registration requirements, (ii) complete the Registration process, (iii) comply with the terms of its Registration, (iv) comply with GreenThumb License requirements, (v) enter into a License, or (vi) comply with its License.
“Default Notice.” A notice from DPR directing a Gardening Group to cure an Accelerated Default within 30 days after the date of such notice or a notice to cure a Default within 6 months after the date of such notice. Copies of such notices shall be sent to the council member for the council district in which the Garden is located and the community board of the community district in which the Garden is located.
“DPR.” The City’s Department of Parks and Recreation.
“Garden.” A community garden that is registered and licensed with GreenThumb and located on a Lot.
“Garden Contact Person.” An individual registered with GreenThumb as the primary representative of a Gardening Group.
“Garden Review Process.” The process set forth in 28 RCNY § 42-05 to be followed in connection with the Transfer of any Lot.
“Garden Review Statement.” A written statement, prepared by HPD in accordance with 28 RCNY § 42-05(b)(4), describing a Lot, the existing Garden on such Lot, and the proposed Transfer of such Lot.
“Gardening Group.” An organized group of individuals who maintain a Garden and are collectively represented by the Garden Contact Person. The Garden Contact Person shall by April 15 of each calendar year provide a list to GreenThumb of the names and contact information for all members of the Gardening Group.
“GreenThumb.” A division within DPR responsible for New York City’s urban gardening program.
“HPD.” The City’s Department of Housing Preservation and Development.
“License.” An agreement between HPD and a Licensee providing a license to operate a Garden on a Lot for a set term subject to requirements set forth therein, unless earlier terminated.
“Licensee.” A Gardening Group, acting through its Garden Contact Person, pursuant to a License.
“Lot.” A parcel of City-owned land under the jurisdiction of HPD that contains a Garden at any time on or after September 17, 2010.
“Other Agency.” A governmental agency or entity other than HPD.
“Retention Agreement.” A written agreement between the City, acting by and through HPD or an Other Agency, and a Gardening Group, acting by and through its Garden Contact Person, providing for (i) the retention of part or all of a Garden as a community garden and/or open space as part of a project to be developed, or (ii) the relocation of the Garden to an alternate site. Gardens that are retained or relocated pursuant to a Retention Agreement remain subject to the GreenThumb Registration and License requirements and this chapter.
“Registration.” Written acknowledgment by GreenThumb that a Gardening Group has complied with the criteria set forth by DPR to demonstrate eligibility for a License pursuant to 56 RCNY § 6-03.
“Transfer.” The conveyance of a Lot for the purpose of devoting such Lot to a use other than as a garden or open space.
“Uncured Default.” A Default that remains uncured six months after the date of a Default Notice or an Accelerated Default that remains uncured 30 days after the date of a Default Notice.
§ 42-02 Application.
This chapter establishes certain procedures with respect to the operation of Gardens registered and licensed on September 17, 2010, or first registered and licensed within the exercise of DPR’s and HPD’s discretion after September 17, 2010. This chapter also establishes certain procedures with respect to the Transfer of the Lots upon which such Gardens are located.
§ 42-03 Licenses.
(a) HPD will issue a License if the proposed Licensee and Garden meet the Registration criteria established by GreenThumb. HPD may renew such License if the Licensee complies with the terms and conditions set forth therein and continues to meet the Registration criteria established by GreenThumb. If the Licensee has not complied with the terms of or fails to renew the License, or fails to meet the Registration criteria established by GreenThumb, abandons the Garden, or if an Uncured Default has occurred, HPD may offer a License for the Garden to a new Gardening Group.
§ 42-04 Lots Used as Gardens or as Open Space; Gardens not Deemed Mapped Parkland.
Except as provided in 28 RCNY § 42-05, all Lots will be used as Gardens. Lots are not dedicated as, and will not be deemed to be dedicated as, parkland unless they have otherwise been mapped as parkland by the City.
§ 42-05 Garden Review Process.
(a) HPD will comply with the Garden Review Process before any Transfer.
(1) HPD will notify the Garden Contact Person and the Alternate Garden Contact Person of the proposed Transfer. Such notice may, but will not be required to, be included within the Alternate Site Notice.
(2) HPD will provide an Alternate Site Notice to the Garden Contact Person and Alternate Garden Contact Person.
a. The Garden Contact Person may select one site from the Alternate Site List for relocation of the Garden and inform HPD and GreenThumb of such selection in writing within 45 calendar days after the date of the Alternate Site Notice.
b. The offer contained in the Alternate Site Notice will be deemed rejected, and the Garden Contact Person will have no further right to select a site from the Alternate Site List for relocation of the Garden if (i) HPD and GreenThumb do not receive, within 45 calendar days after the date of the Alternate Site Notice, written notice from the Garden Contact Person that the Gardening Group has selected a site from the Alternate Site List for relocation of the Garden, or (ii) HPD or GreenThumb receives written notice from the Garden Contact Person at any time that the Gardening Group will not select a site from the Alternate Site List for relocation of the Garden.
c. If the Alternate Site List states that there is no available City-owned vacant land within one-half mile of the Lot upon which the existing Garden is located, or within the community district in which such Lot is located if there is no City-owned vacant land within one half mile of the Lot, the provisions of 28 RCNY § 42-05(b)(2)(a) and (b)(2)(b) will not apply.
(3) Any site on the Alternate Site List will be offered “as is,” and a Gardening Group will be responsible for performing all necessary work on such lot. DPR will, upon request and contingent upon staff availability and resources, assist the Gardening Group with its relocation and gardening efforts at the alternate site. The City will offer the Gardening Group an opportunity to register with GreenThumb for the alternate site, and once registered, obtain a License.
(4) Before any Transfer, HPD will prepare a Garden Review Statement that includes the following, to the extent that such information exists and/or is contained in HPD’s files:
a. a description of each affected Lot (including the address, block, and lot of such Lot) and the existing Garden located thereon;
b. the name, address, and telephone number of the Garden Contact Person and Alternate Garden Contact Person;
c. the date that GreenThumb licensed each affected Lot for the first time;
d. copies of the most recent Registration form submitted to GreenThumb by the Garden Contact Person; the two most recent site visit forms prepared by GreenThumb; and at least two photographs of the existing Garden;
e. the Alternate Site List and a statement of whether the Garden Contact Person has accepted or rejected any sites on such Alternate Site List; and
f. a description of any proposed Transfer of each affected Lot.
g. A description provided by the Gardening Group of any programs, activities and events in, and existing features of, the Garden. The above description, which shall be no more than four legal size pages in length, will be included in the Garden Review Statement if submitted to HPD before submission of any application for approval as set forth in 28 RCNY § 42-05(b)(6).
(5) HPD will send a Garden Review Statement to the Garden Contact Person, the Alternate Garden Contact Person, the council member for the council district in which the Garden is located and the community board of the community district in which the Garden is located by written notice not less than 45 calendar days before any Transfer. The sending of such notice will constitute notice of the proposed Transfer.
(6) HPD will include a Garden Review Statement in any application for approval of a Transfer pursuant to section 197-c of the City Charter, in any application to the City Council or the Mayor for approval of a Transfer pursuant to Article 15 of the General Municipal Law, Article 16 of the General Municipal Law, or Article XI of the Private Housing Finance Law, and in any application to a Borough Board for approval of a Transfer pursuant to section 384(b)(4) of the City Charter.
§ 42-06 Exemptions.
(a) The following Lots will not be subject to any of the requirements set forth in this chapter:
(1) Bronx: Block 2418; Lot 6; Block 2786; Lots 12, 13; Block 2867; Lot 128; Block 2979; Lot 1; Block 3540; Lots 1, 29, 40.
(2) Brooklyn: Block 1028; Lot 7; Block 1432; Lot 48; Block 1447; Lots 68 - 70; Block 1450; Lot 14; Block 1450; Lots 8, 11; Block 1476; Lot 34; Block 1484; Lots 6, 8; Block 1484; Lots 35, 41, 43; Block 1486; Lots 15, 16; Block 1663; Lot 82; Block 1664; Lot 40; Block 1755; Lots 54 - 57; Block 1792; Lots 22 - 25, 61; Block 3514; Lot 6; Block 3600; Lots 29, 31, 32, 34, 134; Block 3603; Lot 25; Block 3613; Lots 31 - 33; Block 3791; Lots 26, 28; Block 3841; Lot 32; Block 4000; Lot 3; Block 4009; Lot 47; Block 4015; Lots 22, 23; Block 4067; Lots 13, 14; Block 7050; Lot 74;
(3) Queens: Block 16088; Lot 15.
(4) Manhattan: Block 372; Lot 11; Block 372; Lot 49; Block 1645; Lots 3, 71; Block 1790; Lot 41; Block 1918; Lot 51.
§ 42-07 Miscellaneous.
(a) Any determination by HPD pursuant to this chapter will be made in HPD's sole discretion.
§ 43-01 [Mortgage Foreclosure Action; Notice.]
(a) Within fifteen days of service of pleadings commencing a mortgage foreclosure action against residential real property in the city of New York, or within thirty days after June 15, 2012 where such mortgage foreclosure action was commenced after February 13, 2010, and prior to June 15, 2012 and is still pending, the mortgagee must provide notice to the Department of Housing Preservation and Development (Department) by electronic submission, if possible, or by regular mail, in a form prescribed by the Department. The form is available on the Department's website, at its offices at 100 Gold Street, New York, or by dialing 311 and requesting the form.
(1) the name, mailing address, telephone number and e-mail address of the mortgagee plaintiff commencing the action;
(2) the name, mailing address, telephone number and, if known, the e-mail address of the beneficial holder of the note of indebtedness;
(3) the name, mailing address, telephone number and, if known, the e-mail address of the attorney representing the mortgagee plaintiff;
(4) the name, mailing address, telephone number and e-mail address of the principal or corporate officer of such mortgagee plaintiff, where applicable;
(5) the name, mailing address, telephone number and e-mail address of the servicer of the mortgage, where applicable;
(6) the name, mailing address, telephone number and e-mail address of any assignee of the mortgage after commencement of the foreclosure action, where applicable;
(7) the name, mailing address, telephone number and, if known, the e-mail address of the defendant(s) borrower(s) and the name(s) of any other defendant(s) in the foreclosure action, that are named in the pleadings;
(8) the street address and block and lot number of the residential real property that is the subject of the foreclosure action and the number of units;
(9) the date of commencement of the foreclosure action;
(10) the court in which the foreclosure action was commenced and the index number of the action;
(11) the amount of the principal balance owed under the mortgage being foreclosed, including interest and principal arrears, late fees and any other sums due and owing as of the date of filing of the complaint;
(12) the interest rate and maturity date of the mortgage being foreclosed, including the amount, if any, necessary to bring the loan current as of the date of filing of the complaint;
(13) a list, including amounts, of any other indebtedness on the residential real property that is the subject of the foreclosure action as set forth in the pleadings;
(14) the city register file number or reel and page number assigned to the recorded mortgage being foreclosed, if applicable;
(15) the name and, if known, the mailing address, phone number, 24-hour emergency contact phone number, and e-mail address of any receiver who is appointed by the court in the mortgage foreclosure proceeding, and his or her agent. Where such receiver is appointed after the filing of the initial notice with the Department pursuant to this section, the mortgagee must provide the information required by this paragraph within fifteen days of such appointment; and
(16) the name, mailing address, phone number, and, if known, e-mail address for any company retained by the mortgagee to maintain the residential real property that is the subject of the foreclosure action. Where such company is retained after the filing of the initial notice with the Department pursuant to this section, the mortgagee must provide the information required by this paragraph within fifteen days of retaining such company.
§ 43-02 [Discontinuing Mortgage Foreclosure Action; Notice.]
(a) Within fifteen days of discontinuance of a mortgage foreclosure action against residential real property in the city of New York for which notification of the mortgage foreclosure action was required pursuant to subdivision a of 28 RCNY § 43-01, the mortgagee must provide notice to the Department of such discontinuance by electronic submission, if possible, or by regular mail, in a form prescribed by the Department. The form is available on the Department's website, at its offices at 100 Gold Street, New York, or by dialing 311 and requesting the form.
(1) all of the information required under 28 RCNY § 43-01 if an initial notice of commencement of foreclosure was not provided to the Department; and
(2) the reason for the discontinuance of the action.
§ 43-03 [Judgment of Foreclosure; Notice.]
(a) Within fifteen days of entry of a judgment in a mortgage foreclosure action against residential real property in the city of New York for which notification of the mortgage foreclosure action was required pursuant to subdivision a of 28 RCNY § 43-01, the mortgagee must provide notice to the Department of such entry of judgment by electronic submission, if possible, or by regular mail, in a form prescribed by the Department. The form is available on the Department's website, at its offices at 100 Gold Street, New York, or by dialing 311 and requesting the form.
(1) all of the information required under 28 RCNY § 43-01 if an initial notice of commencement of foreclosure was not provided to the Department; and
(2) a statement that the judgment of foreclosure has been entered and the date of entry of the judgment.
§ 43-04 [Closing of Sale; Notice.]
(a) Within fifteen days of closing of a sale with the referee pursuant to a judgment of foreclosure of residential real property in the city of New York for which notification of the mortgage foreclosure action was required pursuant to subdivision a of 28 RCNY § 43-01, the mortgagee must provide notice to the Department of such closing of sale by electronic submission, if possible, or by regular mail, in a form prescribed by the Department. The form is available on the Department's website, at its offices at 100 Gold Street, New York, or by dialing 311 and requesting the form.
(1) all of the information required under 28 RCNY § 43-01 if an initial notice of commencement of foreclosure was not provided to the Department;
(2) the sale price of the property; and
(3) the name, mailing address, and telephone number of the purchaser of the property.
§ 43-05 [Definition.]
The term “mortgagee” as used in these rules has the meaning set forth in section 27-2109.1(a)(1) of the administrative code of the city of New York.
§ 44-01 Definitions.
As used in this chapter, the following terms have the following meaning:
§ 44-02 Criteria.
(a) The Department may identify buildings for issuance of orders to correct Underlying Conditions based upon the following criteria:
(1) A building with a Class B or Class C violation on record related to the existence of mold or water leaks that was issued by the Department within the prior year preceding issuance of the order that has not been properly certified as corrected by the owner, or that was corrected by the Department, and such building:
(i) Contains three to five dwelling units and at least 50% of such units have one such violation;
(ii) Contains six to nine dwelling units and at least 25% of such units have one such violation; or
(iii) Contains ten dwelling units or more and at least 15% of such units have one such violation.
(2) The Department will prioritize selection of buildings meeting the criteria in paragraph (1) of this subdivision first by those buildings with the highest total number of Class C violations relating to the existence of mold or water leaks, followed by those buildings with the highest total number of both Class C and Class B violations relating to the existence of mold or water leaks.
(1) A one- or two-family building;
(2) Subject to an order issued in the Alternative Enforcement Program pursuant to New York City Administrative Code § 27-2153;
(3) Subject to the appointment of an administrator under the 7A Program pursuant to Article 7A of the New York State Real Property Actions and Proceedings Law;
(4) Subject to a comprehensive enforcement action by the Department;
(5) Conveyed to a new owner after an in rem judgment of foreclosure in favor of New York City in the Third Party Transfer Program pursuant to New York City Administrative Code § 11-412.1 within the last five years; or
(6) The subject of a preservation loan made by HPD or HDC within the last two years.
§ 44-03 Compliance and Documentation.
(a) An owner must comply with an order issued by the Department within four months of the issuance of an order, or within an additional two months upon approval of such extension by the Department, and submit the documentation required by this section.
(1) An affidavit from a New York State licensed professional engineer or registered architect in a form approved by the Department identifying the Underlying Condition that is the source of the mold or water leak; and
(2) An affidavit from the owner of the building in a form approved by the Department stating that the Underlying Condition and related violations will be corrected, describing the work that will be performed to correct such Underlying Condition and violations, and stating that the work will be completed within the extended time period.
(1) If there are no Underlying Conditions:
(i) An owner must submit an affidavit from a New York State licensed professional engineer or registered architect in a form approved by the Department stating that there are no Underlying Conditions that are causing the mold and water leak violations; and
(ii) An owner must submit a completed dismissal request form pursuant to 28 RCNY Chapter 9.
(2) If Underlying Conditions and related violations have been repaired:
(i) An owner must submit an affidavit from a New York State licensed professional engineer or registered architect in a form approved by the Department identifying the Underlying Condition that was the source of the mold or water leak violations, stating that the Underlying Condition and related violations were properly repaired, and identifying who repaired the Underlying Condition and related violations; and
(ii) An owner must submit a completed dismissal request form pursuant to 28 RCNY Chapter 9.
(1) An administrator had been appointed for the building pursuant to Article 7A of the Real Property Actions and Proceedings Law and this fact became known to the Department after issuance of the Underlying Conditions order;
(2) A preservation loan was closed by HPD or HDC during the four- or six-month period for compliance with the Underlying Conditions order;
(3) HPD completed the repair work required under the Underlying Conditions order;
(4) HPD selected a building for participation in the Alternative Enforcement Program pursuant to New York City Administrative Code § 27-2153 during the four- or six-month period for compliance with the Underlying Conditions order; or
(5) The order was issued to a building that is otherwise excluded from such issuance pursuant to 28 RCNY § 44-02(b).
§ 45-01 Temporary Posting of Emergency Information.
(a) Prior to the expected arrival of a weather emergency, when a natural disaster event occurs, or after being informed about a utility outage in a building which is expected to last for more than twenty-four hours, the owner of a residential dwelling where at least one dwelling unit is not occupied by the owner, must post a sign in a common area of the building accessible to all occupants in at least 11 point type. Such sign should be updated by the owner as needed, and must be removed after the weather emergency, natural disaster, or utility outage has ended. Such sign should be substantially in the following form:
EMERGENCY NOTIFICATION: PLEASE READ ALL EMERGENCIES: Building Personnel Contacts Name:________________________________________ Email: ________________________________________ Phone: ________________________________________ Address: ____________________________________
In An Emergency 911: Emergencies Call 911 when you are in immediate danger, there is a fire on the premises, you witness a crime in progress, or if you have a serious injury or life-threatening medical condition.
Contacting the City 311: City Information Call 311 or visit www.nyc.gov when you need access to non-emergency services or information about City government programs. Do not call 311 for emergencies. If you have special needs and need assistance to evacuate, contact the City at 311. Persons with special needs may also find information on line at the Office of Emergency Management’s website: www.nyc.gov/oem.
To Report a Utility Outage Con Edison 24-hour hotline: 800-752-6633 LIPA 24-hour hotline: 800-490-0075 National Grid 24-hour hotline: 718-643-4050
BUILDING UTILITY OUTAGE
EMERGENCY EVACUATION EVENT
HIGH WIND EVENT
ADDITIONAL INFORMATION (Owners may add any additional information here)
§ 46-01 [Housing Information Guide for Tenants and Owners.]
Every owner of a multiple dwelling shall post the following notice in at least 11 point type in a conspicuous place within view of the area in the multiple dwelling to which mail is delivered.
HOUSING INFORMATION GUIDE FOR TENANTS AND OWNERS
A housing information guide, the “ABCs of Housing,” is available on the New York City Department of Housing Preservation and Development’s website at www.nyc.gov/hpd. This guide is also available in print by calling 311.
The guide contains information about the following topics:
• Eviction• Heat and hot water• Pest management• Tenant organizations• Rent-regulated leases• Rental assistance for elderly or disabled tenants• Housing discrimination• Repairs and maintenance• Tenant response to owner notifications• Access for owner inspections and repair• Free and low-cost legal services
GUIA DE INFORMACION DE VIVIENDA PARA INQUILINOS Y DUEÑOS
Un guia de informacion de vivienda los “ABC’s de Vivienda” esta disponible en la pagina web del Departamento de Preservacion de Viviendas y Desarrollo de la Ciudad de Nueva York en www.nyc.gov/hpd. Este guia imprimido también esta disponible llamando al 311.
El gua contiene informacion sobre los siguientes temas:
• Desalojo• Calefaccion y agua caliente• Manejo de plagas• Organizacion de inquilinos• Alquilar de arrendamientos regulados• Asistencia de alquiler para ancianos o inquilinos deshabilitados• Discriminacion de vivienda• Reparaciones y mantenimiento• Respuesta de Inquilinos a notificaciones del dueño• Acceso para inspecciones de dueños para reparaciones• Servicios legales gratis y a bajo costo
§ 47-01 [Recurring Violations and Complaint-Based Inspections.]
A complaint-based inspection shall not be subject to the complaint-based inspection fee and shall not be included in the total number of such inspections within a twelve-month period that qualifies a dwelling unit for the complaint-based inspection fee authorized by Administrative Code § 27-2115(f)(8) where such inspection results exclusively in the issuance of an immediately hazardous or hazardous violation for only one or more of the following conditions:
§ 47-02 [Objections.]
An owner may object, pursuant to Administrative Code § 27-2129, to the imposition of the complaint-based inspection fee authorized by Administrative Code § 27-2115(f)(8). An owner may object on the basis that he or she has attempted and failed to gain access to make repairs to the dwelling unit that is the subject of this fee. Such objection shall be made pursuant to article eight of subchapter five of chapter two of title 27 of the Administrative Code, and the rules promulgated thereunder in 28 RCNY Chapter 17.
§ 48-01 [Elevator Violation Referrals.]
Upon referral to the Department by the Department of Buildings of an immediately hazardous elevator violation in a multiple dwelling which has not been corrected by the owner at the time of such referral, the Department will attempt to evaluate such violation based upon information provided to it by the Department of Buildings and from any other source, to determine what action may be taken by the Department. Such determination may be based upon the following criteria:
§ 48-02 [Department Actions.]
The Department may take such actions as it determines are necessary to address the referred immediately hazardous elevator violation, including, but not limited to, ordering the owner to correct such referred violation, performing the work to correct such referred violation, and taking enforcement action against the owner of the multiple dwelling that is the subject of such referred violation.
§ 49-01 Definitions.
As used in this chapter, the following terms shall have the following meanings. Capitalized terms not specifically defined in this chapter shall have the meanings set forth in the Act.
Act. “Act” means subdivision seventeen of section four hundred-twenty-one-a of the real property tax law, as amended.
Area Median Income. “Area Median Income” means the area median income for the primary metropolitan statistical area as determined by the United States Department of Housing and Urban Development or its successors from time to time for a family of four, as adjusted for family size.
Department of Finance. “Department of Finance” means the Department of Finance of the City of New York or any successor agency or department thereto.
Final Certificate of Eligibility. “Final Certificate of Eligibility” means the document issued by the Agency in accordance with chapter six of this title that provides for Post-Construction Benefits.
HDC. “HDC” means the New York City Housing Development Corporation.
HFA. “HFA” means the New York State Housing Finance Agency.
Housing Connect. “Housing Connect’ means the New York City Housing Connect lottery system or any successor program administered by the Agency to market vacant affordable dwelling units.
Hotel. “Hotel” means (i) any Class B multiple dwelling, as such term is defined in the Multiple Dwelling Law, (ii) any structure or part thereof containing living or sleeping accommodations which is used or intended to be used for transient occupancy, (iii) any apartment hotel or transient hotel as defined in the Zoning Resolution, or (iv) any structure or part thereof which is used to provide short term rentals or owned or leased by an entity engaged in the business of providing short term rentals. For purposes of this definition, a lease, sublease, license or any other form of rental agreement for a period of less than one year shall be deemed to be a short term rental. Notwithstanding the foregoing. Market Units owned or leased by a not-for-profit corporation for the purpose of providing governmentally funded emergency housing shall not be considered a hotel for purposes of this chapter.
Legal Rent. “Legal Rent” means the maximum rent permitted under Rent Stabilization; provided, however, that no exemption or exclusion from any requirement of Rent Stabilization shall be applied to any Affordable Housing Unit during the Extended Affordability Period including, but not limited to, any exemption or exclusion from the rent limits, renewal lease requirements, registration requirements, or other provisions of Rent Stabilization due to the vacancy of an Affordable Housing Unit where the rent exceeds a prescribed maximum amount, the fact that tenant income and/or unit rent exceed prescribed maximum amounts, the nature of the tenant, or any other factor.
Market Units. “Market Units” means any dwelling units in an Extended Affordability Property other than Affordable Housing Units.
Marketing Monitor. “Marketing Monitor” means an organization approved by the Agency and retained by the applicant to monitor compliance with the requirements, established by the Act and this chapter, relating to the leasing, subleasing and occupancy of Affordable Housing Units, including, but not limited to, ensuring that each Affordable Housing Unit is leased at a rent not exceeding the Permitted Rent and is occupied by a household approved by the Agency whose income at the time of initial occupancy of such Affordable Housing Unit is not more than the maximum percentage of the Area Median Income specified for such Affordable Housing Unit pursuant to the Act. Such Marketing Monitor may be an in-house department of the applicant, a subsidiary or affiliate of the applicant, or a third-party marketing, leasing, managing, or monitoring administering agent.
Monitoring Contract. “Monitoring Contract” means a contract between the applicant and the Marketing Monitor in form and substance approved by the Agency. Such Monitoring Contract shall, at a minimum:
(i) require the fee owner to provide monthly rent rolls to the Marketing Monitor and to notify the Marketing Monitor no more than seven business days after an Affordable Housing Unit becomes vacant;
(ii) require the Marketing Monitor to ensure that any Affordable Housing Unit which becomes vacant during the Extended Afford ability Period (a) is not held off the market for a period that is longer than is reasonably necessary to perform needed repairs, (b) is promptly marketed pursuant to such requirements as are established by the Agency, (c) is rented to a household identified on the log established pursuant to Housing Connect, or where applicable, on an HFA or HDC waiting list, that meets the applicable income and occupancy requirements for such Affordable Housing Unit and that has been approved by the Agency prior to execution of a lease, (d) is not offered to or rented by a corporation, partnership or other entity, and (e) is offered for occupancy pursuant to a rent stabilized lease for a term of one or two years, at the option of the tenant; and
(iii) require the Marketing Monitor to submit quarterly rent rolls for all Affordable Housing Units in the Extended Affordability Property to the Agency.
Permitted Rent. “Permitted Rent” means a rent that does not exceed, for any lease or renewal thereof at any time during the Extended Affordability Period, the lesser of (i) thirty percent of the applicable Area Median Income minus the amount of any applicable Utility Allowance, provided, however, that solely for purposes of establishing the initial rent for each Affordable Housing One Hundred Thirty Percent Unit, the Area Median Income in effect as of the date of filing of a notice of intent to begin marketing with the Agency shall be utilized, or (ii) the Legal Rent.
Post-Construction Benefits. “Post-Construction Benefits” means benefits pursuant to Real Property Tax Law Section 421-a for the period after which a Twenty Year Benefit Property or Twenty-five Year Benefit Property was issued either a permanent certificate of occupancy for the entire building or a temporary certificate of occupancy for all of the residential areas contained therein.
Rent Stabilization. “Rent Stabilization’’ means, collectively, the rent stabilization law of nineteen hundred sixty-nine, the rent stabilization code, and the emergency tenant protection act of nineteen seventy-four, all as in effect on June 15, 2015 or as amended thereafter, together with any successor statutes or regulations addressing substantially the same subject matter.
Utility Allowance. “Utility Allowance” means an allowance established by the Agency for the payment of utilities wl1ere the tenant of an Affordable Housing Unit is required to pay all or a portion of the utility costs with respect to such unit in addition to any payments of rent.
§ 49-02 Application Procedure and Documentation.
(1) Evidence satisfactory to the Agency that the Restrictive Declaration in a form satisfactory to the Agency (A) has been executed by the fee owner and any ground lessee of the Extended Affordability Property, (B) has been recorded against the real property containing the Extended Affordability Property, (C) identifies each Affordable Housing Unit in the Extended Affordability Property, the number of bedrooms in such Affordable Housing Unit, whether such Affordable Housing Unit is an Affordable Housing Eighty Percent Unit or an Affordable Housing One Hundred Thirty Percent Unit, and provides that the rents to be charged to the tenants of each such Affordable Housing Unit shall be established pursuant to this chapter, (D) provides that the Affordable Housing Units in such Extended Affordability Property shall, for the Extended Affordability Period, be (i) rented to eligible tenants at or below the Permitted Rent, and (ii) subject to Rent Stabilization, allowing tenants holding a lease and in occupancy at the expiration of such Extended Affordability Period to continue to be protected by Rent Stabilization for the duration of their occupancy, and (E) provides that such Extended Affordability Property must comply with the Extended Affordability Requirement and all applicable provisions of Section 504 of the Rehabilitation Act during the Extended Affordability Period;
(2) Evidence satisfactory to the Agency that (A) from the commencement of Post-Construction Benefits up to and including the Commencement Date, each Affordable Housing Eighty Percent Unit was occupied by a household whose income at the time of initial occupancy of such Affordable Housing Eighty Percent Unit did not exceed one hundred percent (100%) of Area Median Income, and that all of the Affordable Housing Eighty Percent Units in such Twenty Year Benefit Property or Twenty-five Year Benefit Property, respectively, were collectively affordable and restricted to occupancy to households whose income at the time of initial occupancy, did not exceed an average of eighty percent (80%) of Area Median Income, and (B) that, prior to the Commencement Date, an additional five percent (5%) of the dwelling units in such Twenty Year Benefit Property or wenty-five Year Benefit Property, respectively, were designated as Affordable Housing One Hundred Thirty Percent Units and have each been occupied by a household that was identified on the log established pursuant to Housing Connect and whose income at the time of initial occupancy of such Affordable Housing One Hundred Thirty Percent Unit did not exceed one hundred thirty percent (130%) of Area Median Income;
(3) An executed Monitoring Contract; and
(4) A copy of the notice of intent to begin marketing the Affordable Housing Units through Housing Connect and satisfactory evidence that such notice of intent to begin marketing and the name of the proposed Marketing Monitor was filed with the Agency at least sixty days prior to the date upon which the first lease for an Affordable Housing One Hundred Thirty Percent Unit will be executed. Notwithstanding the foregoing, at the request of HDC or HFA, the Agency may allow the exhaustion of a waiting list for the Affordable Housing Eighty Percent Units maintained pursuant to a regulatory agreement with either HDC or HFA, respectively, prior to commencing the marketing procedures prescribed hereunder; provided, however, that no such waiting list shall be replenished or expanded on or after May 11, 2016.
§ 49-03 Rent and Income.
During the Extended Affordability Period:
§ 49-04 Hotel Prohibition.
No Twenty Year Benefit Property or Twenty-five Year Benefit Property that is operated as a hotel shall be eligible for Extended Affordability Benefits.
§ 50-01 Definitions.
As used in this chapter, the following terms shall have the following meanings. Capitalized terms that are not specifically defined in this chapter shall have the meanings set forth in the Act (with respect to properties receiving benefits, pursuant to such act), the New 421-a Act (with respect to properties receiving benefits, pursuant to such act), the Extended Affordability Act (with respect to properties receiving benefits, pursuant to such act), or the Minimum Average Hourly Wage Act, as relevant.
125% Limit. “125% Limit” shall mean, with respect to any unit, that the income of the household renting or purchasing such unit does not exceed one hundred twenty-five percent of the area median income, adjusted for family size, at the time that such household initially occupies such unit, and that either (a) for a multiple dwelling owned and operated as a rental, the rent at the time of initial rental and upon each subsequent rental following a vacancy does not exceed thirty percent of one hundred twenty-five percent of the area median income, adjusted for family size, minus the amount of any applicable Utility Allowance, or (b) for a multiple dwelling owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, the sales price at the time of initial sale results in mortgage payments (including both interest and principal calculated at the Mortgage Rate and assuming the mortgage constitutes 90% of the purchase price) and common charges or carrying charges, respectively, that, collectively, do not exceed thirty percent of one hundred twenty-five percent of the area median income, adjusted for family size.
125% Unit. “125% Unit” shall mean (a) if a multiple dwelling is owned and operated as a rental, a unit that complies with the 125% Limit upon initial rental and upon each subsequent rental following a vacancy, or (b) if the multiple dwelling is owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, a unit that complies with the 125% Limit upon the initial sale of such unit.
Act. “Act” shall mean subdivision 8 of Section 421-a of the Real Property Tax Law.
Agency. “Agency” shall mean the department of housing preservation and development.
Applicant. “Applicant” shall mean an applicant for Benefits and any successor to such applicant, including, but not limited to, any Owner, or any employer of Building Service Employees for such applicant, successor or Owner, including, but not limited to, a property management company or contractor.
Apprenticeship Program. “Apprenticeship Program” shall mean an apprenticeship program registered with the New York State Department of Labor in conformity with the provisions of Article 23 of the Labor Law.
Benefits. “Benefits” shall mean real property tax exemption benefits pursuant to Section 421-a of the Real Property Tax Law.
Benefits Ineligibility Letter. “Benefits Ineligibility Letter” shall mean the letter that the Agency issues to the Applicant indicating that such Applicant is ineligible for any real property tax exemption benefits, pursuant to the Act, the new 421-a Act, or the Extended Affordability Act, as applicable.
Comptroller. “Comptroller” shall mean the comptroller of the city of New York or his or her designee.
Comptroller Schedule. “Comptroller Schedule” shall mean the annual Labor Law Section 230 Prevailing Wage Schedules for Building Service Employees that are in effect at the time the relevant Building Service Employee performs the work and that are published at www.comptroller.nyc.gov/prevailingwage.
Construction Benefits. “Construction Benefits” shall mean Benefits for the period before issuance of either a permanent certificate of occupancy for the entire building or a temporary certificate of occupancy for all of the residential areas contained therein.
Extended Affordability Act. “Extended Affordability Act” shall mean paragraph (g) of Subdivision 17 of Section 421-a of the Real Property Tax Law.
Final Certificate of Eligibility. “Final Certificate of Eligibility” shall mean either (a) the document issued by the Agency in accordance with 28 RCNY Chapter 6 that provides for Post-Construction Benefits, (b) the document issued by the Agency in accordance with 28 RCNY Chapter 49 which provides the Extended Benefit; or (c) the document issued by the Agency in accordance with 28 RCNY Chapter 51 that provides for Affordable New York Housing Program Benefits.
Minimum Average Hourly Wage Act. “Minimum Average Hourly Wage Act” shall mean subdivision 16(c) of Section 421-a of the Real Property Tax Law.
Mortgage Rate. “Mortgage Rate” shall mean the single family mortgage rate for a thirty-year fixed rate loan established by the Federal Home Loan Mortgage Association and the Federal National Mortgage Association plus 150 basis points that is either (a) for purposes of the application for a Preliminary Certificate of Eligibility, quoted for the month in which the construction of such multiple dwelling commences, or (b) for purposes of the application for a Final Certificate of Eligibility, quoted for the month in which the first certificate of occupancy or temporary certificate of occupancy for the first unit in such multiple dwelling that is owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, is issued.
New 421-a Act. “New 421-a Act” shall mean paragraph (h) of subdivision 16 of Section 421-a of the Real Property Tax Law.
Order. “Order” shall mean an order issued by the Agency, pursuant to paragraph (d) of the Act, subparagraph (iv) of the New 421-a Act or subparagraph (iv) of the Extended Affordability Act, respectively, that either (a) adopts, in whole or in part, or rejects a Report and Recommendation, or (b) approves any Stipulation of Settlement between the Comptroller and the Applicant.
Owner. “Owner” shall mean the fee owner of the real property receiving Benefits and any ground lessee of such real property.
Preliminary Certificate of Eligibility. “Preliminary Certificate of Eligibility” shall mean the document issued by the Agency in accordance with 28 RCNY Chapter 6 that provides for Construction Benefits.
Post-Construction Benefits. “Post-Construction Benefits” shall mean Benefits for the period after issuance of either a permanent certificate of occupancy for the entire building or a temporary certificate of occupancy for all of the residential areas contained therein.
Prevailing Wage. “Prevailing Wage” shall mean the prevailing wage and supplement rates for the various classifications set forth in the Comptroller Schedule.
Prevailing Wage Requirement. “Prevailing Wage Requirement” shall mean the requirements under the Act, the New 421-a Act or the Extended Affordability Act, respectively, and this chapter that are applicable, with respect to the Act or the New 421-a Act, to any Multiple Dwelling whose construction began on or after December 28, 2007, and with respect to the Extended Affordability Act, to any Extended Affordability Property, except as otherwise provided in paragraph (e) of the Act, subparagraph (v) of the New 421-a Act, or subparagraph (v) of the Extended Affordability Act, as applicable, that all Building Service Employees receive the Prevailing Wage for the duration of the applicable Benefits period.
Report and Recommendation. “Report and Recommendation” shall mean a report and recommendation issued by the Comptroller or the Comptroller’s designee after a hearing is conducted regarding an alleged violation of the Prevailing Wage Requirement.
Stipulation of Settlement. “Stipulation of Settlement” shall mean a stipulation of settlement executed by the Comptroller and an Applicant regarding an alleged violation of the Prevailing Wage Requirement.
Utility Allowance. “Utility Allowance” shall mean an allowance set forth by the Agency for the payment of utilities where the tenant of a 125% Unit is required to pay all or a portion of the utility costs with respect to such unit in addition to any payments of rent.
§ 50-02 Prevailing Wage for Apprentices.
The Prevailing Wage for purposes of an apprentice in a classification may only be the prevailing apprentice wage and supplement rate set forth in the Comptroller Schedule if such apprentice has been individually registered in an Apprenticeship Program prior to his or her employment as an apprentice on the applicable work.
§ 50-03 Compliance with Requirement to Pay Supplements.
The obligation to pay prevailing supplements may be discharged by either the provision of (a) bona fide fringe benefits that cost no less than the prevailing supplement rate in the Comptroller Schedule, (b) a supplement to the hourly wage in an amount no less than such prevailing supplement rate, or (c) a combination of bona fide fringe benefits and wage supplements that, collectively, costs no less than the prevailing supplement rate. The provision of a dwelling unit free of charge to a Building Service Employee shall be considered a bona fide fringe benefit with a cost of no more than the value of prevailing rentals in the locality for comparable dwelling units. Notwithstanding the foregoing, the obligation to pay prevailing wages cannot be reduced or discharged through the provision of bona fide fringe benefits that cost more than the prevailing supplement rate in the Comptroller Schedule.
§ 50-04 Prevailing Wage Violations.
§ 50-05 Prevailing Wage Requirement Orders.
§ 50-06 Benefit Revocation.
The Agency shall commence benefit revocation proceedings pursuant to 28 RCNY Chapter 39 if: (a) an Applicant fails to make the payments to the Comptroller required by an Order within 120 calendar days of receiving the Order, in which the sole cause for such revocation shall be the failure to make such payments on or before the prescribed deadline, (b) two Orders determining a willful failure to pay the Prevailing Wage for the same multiple dwelling have been issued within a six-year period, or (c) an Order determines a willful failure to pay the Prevailing Wage that involves a falsification of payroll records or the kickback of wages or supplements.
§ 50-07 Agency Determination of Prevailing Wage Exemption.
(a) with respect to a multiple dwelling that is not receiving benefits, pursuant to subdivisions sixteen or seventeen of Real Property Tax Law § 421-a, at least fifty percent of the dwelling units in such Applicant’s building are 125% Units, including, but not limited to, (i) with respect to a multiple dwelling owned and operated as a rental, the initial rents for such 125% Units, the income certifications for the initial occupants of such 125% Units, and proof that the building is required to maintain such 125% Units during the entire period of Post-Construction Benefits, and, (ii) with respect to 125% Units in a multiple dwelling owned and operated as a condominium or cooperative development by individual condominium unit owners or shareholders, the initial unit sale prices and the income certifications for all of the initial purchasers of such 125% Units;
(b) with respect to an Eligible Multiple Dwelling that is receiving benefits, pursuant to subdivision sixteen of Real Property Tax Law § 421-a, all of the dwelling units in such Eligible Multiple Dwelling are Affordable Housing Units, and at least fifty percent of the Affordable Housing Units, upon initial rental and upon each subsequent rental after a vacancy during the Restriction Period or the Extended Restriction Period, are 125% Units, including, but not limited to, the initial rents for such Affordable Housing Units and 125% Units, the income certifications for the initial occupants of such Affordable Housing Units and 125% Units, and proof that the Eligible Multiple Dwelling is required to maintain such Affordable Housing Units and 125% Units during the entire Restriction Period or Extended Restriction Period, as applicable; or
(c) with respect to an Extended Affordability Property that is receiving benefits, pursuant to subdivision seventeen of Real Property Tax Law § 421-a, all of the dwelling units in such Extended Affordability Property are Affordable Housing Units, and at least fifty percent of the Affordable Housing Units, upon initial rental and upon each subsequent rental after a vacancy during the Extended Affordability Period, are 125% Units, including, but not limited to, the initial rents for such Affordable Housing Units and 125% Units, the income certifications for the initial occupants of such Affordable Housing Units and 125% Units, and proof that the Extended Affordability Property is required to maintain such Affordable Housing Units and 125% Units during the entire Extended Affordability Period.
§ 50-08 Contractor Certified Payroll Report.
§ 50-09 Failure to Submit Required Reports, Failure to Submit Accurate Reports or Failure to Pay Minimum Average Hourly Wages in Accordance with the Minimum Average Hourly Wage Act.
§ 51-01 Definitions.
As used in this chapter, the following terms shall have the following meanings. Capitalized terms not specifically defined in this chapter shall have the meanings set forth in the Act.
Act. “Act” means subdivision sixteen of section four hundred-twenty-one-a of the real property tax law, as amended.
Aggregate Floor Area of Eligible Multiple Dwellings in the Eligible Site. “Aggregate Floor Area of Eligible Multiple Dwellings in the Eligible Site” means the sum of the Floor Area in the Eligible Multiple Dwellings in the Eligible Site.
Aggregate Floor Area of Ineligible Space in Eligible Multiple Dwellings in the Eligible Site. “Aggregate Floor Area of Ineligible Space in Eligible Multiple Dwellings in the Eligible Site” means the sum of the Floor Area of Ineligible Space in the Eligible Multiple Dwellings in the Eligible Site.
Area Median Income. “Area Median Income” means the area median income for the primary metropolitan statistical area as determined by the United States Department of Housing and Urban Development or its successors from time to time for a family of four, as adjusted for family size.
Building Segment. “Building Segment” shall have the meaning set forth in Section 12-10 of the Zoning Resolution.
Building Size Requirement. “Building Size Requirement” means the requirement that a multiple dwelling have a minimum of six units and maximum of thirty-five units.
Commercial Space. “Commercial Space” means any space within an Eligible Multiple Dwelling that is devoted to commercial, community facility, or other non-residential use.
Common Area. “Common Area” means any space within an Eligible Multiple Dwelling to which the residents of two or more rental dwelling units have access without paying a usage fee and that is not located in a rental dwelling unit, in a Commercial Space or in a Service Area.
Contract Rents. “Contract Rents” means the rent approved by the United States Department of Housing and Urban Development for Affordable Housing Units in an Eligible Multiple Dwelling with a HAP Contract.
Department of Finance. “Department of Finance” means the Department of Finance of the City of New York or any successor agency or department thereto.
HAP Contract. “HAP Contract” means any project-based Section 8 housing assistance payments contract, governed by subpart E of part 983 of Chapter IX of Subtitle B of Title 24 of the Code of Federal Regulations, covering Affordable Housing Units in an Eligible Multiple Dwelling, as may be amended or renewed.
Hotel. “Hotel” means (i) any Class B multiple dwelling, as such term is defined in the Multiple Dwelling Law, (ii) any structure or part thereof containing living or sleeping accommodations which is used or intended to be used for transient occupancy, (iii) any apartment hotel or transient hotel as defined in the Zoning Resolution, or (iv) any structure or part thereof which is used to provide short term rentals or owned or leased by an entity engaged in the business of providing short term rentals. For purposes of this definition, a lease, sublease, license or any other form of rental agreement for a period of less than one year shall be deemed to be a short term rental. Notwithstanding the foregoing, Market Units owned or leased by a not-for-profit corporation for the purpose of providing governmentally funded emergency housing shall not be considered a hotel for purposes of this chapter.
Housing Connect. “Housing Connect” means the New York City Housing Connect lottery system or any successor program administered by the Agency to market vacant Affordable Housing Units.
Ineligible Space. “Ineligible Space” means commercial, community facility, and accessory use space, other than parking which is located not more than twenty-three feet above the curb level.
Legal Rent. “Legal Rent” means the maximum rent permitted under Rent Stabilization; provided, however, that no exemption or exclusion from any requirement of Rent Stabilization shall be applied to any Affordable Housing Unit during the Restriction Period or Extended Restriction Period, as applicable, including, but not limited to, any exemption or exclusion from the rent limits, renewal lease requirements, registration requirements, or other provisions of Rent Stabilization due to the vacancy of an Affordable Housing Unit where the rent exceeds a prescribed maximum amount, the fact that tenant income and/or unit rent exceed prescribed maximum amounts, the nature of the tenant, or any other factor.
Marketing Monitor. “Marketing Monitor” means an organization approved by the Agency and retained by the applicant for Affordable New York Housing Program Benefits to monitor compliance with the requirements, established by the Act and this chapter, relating to the leasing, subleasing, and occupancy of Affordable Housing Units, including, but not limited to, ensuring that each Affordable Housing Unit is leased at a rent not exceeding the Permitted Rent and is occupied by a household approved by the Agency whose income at the time of initial occupancy of such Affordable Housing Unit is not more than the maximum percentage of the Area Median Income specified for such Affordable Housing Unit pursuant to the Act. Such Marketing Monitor may be an in-house department of the applicant, a subsidiary or affiliate of the applicant, or a third-party marketing, leasing, managing, or monitoring administering agent.
Monitoring Contract. “Monitoring Contract” means a contract between the applicant and the Marketing Monitor that is approved in form and substance by the Agency and that:
(i) requires the fee owner to provide monthly rent rolls for all Affordable Housing Units to the Marketing Monitor and to notify the Marketing Monitor no more than seven business days after an Affordable Housing Unit becomes vacant;
(ii) requires the Marketing Monitor to ensure that any Affordable Housing Unit which becomes vacant during the Restriction Period or Extended Restriction Period, as applicable, (a) is not held off the market for a period that is longer than is reasonably necessary to perform needed repairs, (b) is promptly marketed pursuant to such requirements as are established by the Agency, (c) is rented to a household that meets the applicable income and occupancy requirements for such Affordable Housing Unit and that has been approved by the Agency prior to execution of a lease, (d) is not offered to or rented by a corporation, partnership or other entity, and (e) is offered for occupancy pursuant to a rent stabilized lease for a term of one or two years, at the option of the tenant; and
(iii) requires the Marketing Monitor to submit quarterly rent rolls for all Affordable Housing Units in the Eligible Multiple Dwelling to the Agency.
Motel or Tourist Cabin. “Motel or Tourist Cabin” shall have the meaning set forth in Section 12-10 of the Zoning Resolution.
Multiple Dwelling Law. “Multiple Dwelling Law” means the Multiple Dwelling Law of the State of New York.
Notice of Intent. “Notice of Intent” means a notice of intent to begin marketing the Affordable Housing Units through Housing Connect seven months prior to the Completion Date and that, in addition to any other documentation required in the Notice of Intent, includes as exhibits: (i) the affordability option elected pursuant to the Act, (ii) the unit mix proposed to satisfy subparagraph (ii) of paragraph (g) of the Act or, in accordance with such subparagraph, the claimed exemption from such unit mix requirements, and (iii) the unit distribution proposed to satisfy subparagraph (i) of paragraph (g) of the Act and 28 RCNY § 51-03.
Offering Plan. “Offering Plan” means a plan governing the offering and sale of condominium or cooperative units in a Homeownership Project that (i) complies with Article 23-A of the General Business Law (“Martin Act”), the Act and this chapter, and (ii) discloses the Building Size Requirement, Primary Residence Requirement and Post-Completion Assessment Cap Requirement.
Permitted Rent. “Permitted Rent” means a rent for any lease or lease renewal at any time during the Restriction Period or Extended Restriction Period, as applicable, that does not exceed the lesser of (i) the Legal Rent, or (ii) either (1) for Affordable Housing Units in an Eligible Multiple Dwelling that is not subject to a HAP Contract, thirty percent of the applicable percentage of Area Median Income, minus the amount of any applicable Utility Allowance, provided, however, that solely for purposes of establishing the initial rent for each Affordable Housing Unit, the Area Median Income in effect as of the earlier to occur of the (A) date of any regulatory agreement between the fee owner and a federal, state or local agency or instrumentality, or (B) date of filing of the Notice of Intent, shall be utilized, or (2) for Affordable Housing Units in an Eligible Multiple Dwelling that is subject to a HAP Contract and only during the term of such HAP Contract, 120% of the Contract Rents for such Affordable Housing Units, provided, however, that such rents, less any Section 8 rent subsidies, do not exceed the lesser of (A) thirty percent of the applicable percentage of Area Median Income minus the applicable Utility Allowance or (B) the tenant’s maximum payment under the HAP Contract.
Post-Completion Assessment Cap Requirement. “Post-Completion Assessment Cap Requirement” means the requirement that one hundred percent of the units in a Homeownership Project must have an average assessed value at or below $65,000 upon the first assessment following the Completion Date.
Primary Residence Requirement. “Primary Residence Requirement” means the requirement that the owner of a dwelling unit in a Homeownership Project must for no less than five years from acquisition of such unit occupy it in accordance with the criteria set forth for rental dwelling units in Section 2520.6(u) of the Rent Stabilization Code. Notwithstanding the foregoing, the minimum five year period of occupancy necessary to establish whether such unit is an owner’s primary residence shall not be deemed to be interrupted by any period during which such owner temporarily relocates because he or she: (i) is engaged in military duty; (ii) is enrolled as a full-time student; (iii) is not in residence at the apartment pursuant to a court order not involving any terms or provisions of the lease/occupancy agreement, and not involving any grounds specified in the Real Property Actions and Proceedings Law; (iv) is engaged in employment requiring temporary relocation from such unit; (v) is hospitalized temporarily for medical treatment; or (vi) has other reasonable grounds that shall be determined by the Agency.
Purchase Contract. “Purchase Contract” means a contract to purchase a dwelling unit in a Homeownership Project that contains the Building Size Requirement, the Primary Residence Requirement and the Post- Completion Assessment Cap Requirement.
Section 8. “Section 8” means a federal rent subsidy pursuant to the Section 8 project-based rental assistance program, or any successor programs under the United States Housing Act of 1937, as amended.
Service Area. “Service Area” means any space within an Eligible Multiple Dwelling that is utilized by the owner or manager of such Eligible Multiple Dwelling and their respective employees for purposes of building administration and to which residential tenants do not normally have access.
Story. “Story” shall have the meaning set forth in Section 12-10 of the Zoning Resolution.
Utility Allowance. “Utility Allowance” means an allowance established by the Agency for the payment of utilities where the tenant of an Affordable Housing Unit is required to pay all or a portion of the utility costs with respect to such unit in addition to any payments of rent.
Zoning Resolution. “Zoning Resolution” means the Zoning Resolution of the City of New York, as amended.
§ 51-02 Application Procedure and Documentation.
a-1. Where a Rental Project is composed of two or more Eligible Multiple Dwellings on the same zoning lot that are part of a single Application, an Application shall be filed no later than one year after the last Completion Date of such Eligible Multiple Dwellings; provided, however, that (1) an Application may be filed for the first Eligible Multiple Dwelling in such Application that meets all of the eligibility requirements for Affordable New York Housing Program Benefits after the Completion Date of such Eligible Multiple Dwelling and such Application may be amended after the Completion Date of each other Eligible Multiple Dwelling in such Rental Project, and (2) no Affordable New York Housing Program Benefits shall be granted to any Eligible Multiple Dwelling that is part of such Application unless all of the Eligible Multiple Dwellings in such Application that were previously granted such benefits remain in full compliance with all of the eligibility requirements for such benefits.
a-2. No Application shall be filed with respect to any Homeownership Project before (1) the first assessment following the Completion Date, and (2) there are executed Purchase Contracts for each unit in such Homeownership Project.
(1) Evidence satisfactory to the Agency that a restrictive declaration in a form satisfactory to the Agency:
(A) has been executed by the fee owner and any ground lessee of the Eligible Multiple Dwelling;
(B) has been recorded against the real property containing the Eligible Multiple Dwelling;
(C) with respect to a Rental Project, (i) identifies each Affordable Housing Unit in the Eligible Multiple Dwelling, the number of bedrooms in such Affordable Housing Unit, whether such Affordable Housing Unit is an Affordable Housing Forty Percent Unit, Affordable Housing Sixty Percent Unit, Affordable Housing Seventy Percent Unit, Affordable Housing One Hundred Twenty Percent Unit, or Affordable Housing One Hundred Thirty Percent Unit, and provides that the rents to be charged to the tenants of each such Affordable Housing Unit shall be established pursuant to this chapter, and (ii) provides that the Affordable Housing Units in such Eligible Multiple Dwelling shall for the Restriction Period or the Extended Restriction Period, as applicable, be (a) rented to eligible tenants at or below the Permitted Rent, and (b) subject to Rent Stabilization, allowing tenants holding a lease and in occupancy at the expiration of such Restriction Period or Extended Restriction Period, as applicable, to continue to be protected by Rent Stabilization for the duration of their occupancy;
(D) with respect to a Homeownership Project, provides the Building Size Requirement, the Post-Completion Assessment Cap Requirement and the Primary Residence Requirement; and
(E) provides that such Eligible Multiple Dwelling must comply with all of the requirements for Affordable New York Housing Program Benefits during the Restriction Period or the Extended Restriction Period, as applicable.
(2) Unless the Agency waives this requirement in accordance with 28 RCNY § 51-06(c), satisfactory evidence that the Notice of Intent to begin marketing the Affordable Housing Units was filed with the Agency no later than nine months prior to the Completion Date.
(3) Proof that prior to the Completion Date, the Agency determined that (i) an Eligible Site will meet the unit mix requirements for Affordable Housing Units established pursuant to subparagraph (ii) of paragraph (g) of the Act or, in accordance with such subparagraph, is exempt from such unit mix requirements, and (ii) an Eligible Multiple Dwelling will meet the distribution requirements for rental dwelling units established pursuant to subparagraph (i) of paragraph (g) of the Act and 28 RCNY § 51-03.
(4) An executed Monitoring Contract for a Rental Project.
(5) An affidavit from a registered architect or professional engineer licensed to practice and in good standing with the New York State Department of Education that, among other things, calculates the Aggregate Floor Area of the Eligible Multiple Dwellings in the Eligible Site and the Aggregate Floor Area of Ineligible Space in the Eligible Multiple Dwellings in the Eligible Site.
(6) With respect to a Homeownership Project, each executed Purchase Contract and the Offering Plan.
§ 51-03 Distribution Requirements.
§ 51-04 Rent and Income.
During the Restriction Period:
§ 51-05 Hotels, Motels and Tourist Cabins.
§ 51-06 Election Eligibility.
For purposes of paragraph (r) of the Act:
§ 52-01 Definitions.
As used in this chapter, the following terms shall have the following meanings. Capitalized terms not specifically defined in this chapter shall have the meanings set forth in the Act.
421-a Construction Period Benefits. “421-a Construction Period Benefits” means exemption from taxation for local purposes, other than assessments for local improvements, for the tax year or years immediately following taxable status dates occurring subsequent to the commencement and prior to the completion of construction, but not to exceed three such tax years, pursuant to subdivisions 1 through 15 of section 421-a of the Real Property Tax Law.
421-a Final Benefits. “421-a Final Benefits” means exemption from taxation for local purposes, other than assessments for local improvements, in tax years immediately following the taxable status date first occurring after the expiration of 421-a Construction Period Benefits, pursuant to subdivisions 1 through 15 of section 421-a of the Real Property Tax Law.
421-a New Building Tax Lot. “421-a New Building Tax Lot” means a tax lot (i) for which DOF records indicate that 421-a Construction Period Benefits were received no earlier than eight fiscal years before the final day of the most recently concluded Fiscal Quarter, or (ii) for which DOF records indicate that 421-a Final Benefits were received no earlier than five fiscal years before the final day of the most recently concluded Fiscal Quarter, or (iii) that has received any real property tax exemption benefits, pursuant to subdivisions 1 through 15 of section 421-a of the Real Property Tax Law for a new multiple dwelling thereon that received its first temporary or permanent certificate of occupancy no earlier than five years before the final day of the most recently concluded Fiscal Quarter.
Act. “Act” means Article 3 of Subchapter 4 of Chapter 2 of title 27 of the administrative code of the City of New York, as may be amended.
Affordable Housing. “Affordable Housing” means Dwelling Units for which occupancy or initial occupancy is required to be restricted based on the income of the occupant or prospective occupant thereof as a condition of (i) a loan, grant, tax exemption or conveyance of property from any state or local governmental agency or instrumentality pursuant to (A) the Private Housing Finance Law, other than Article 8-B of such law, or (B) the General Municipal Law, or (ii) a tax exemption pursuant to Section 420-c of the Real Property Tax Law. “Affordable Housing” shall not include Dwelling Units for which occupancy or initial occupancy is required to be restricted based on the income of the occupant or prospective occupant thereof as a condition of (i) a tax exemption pursuant to Section 421-a of the Real Property Tax Law, or (ii) generating a floor area bonus for the provision of affordable inclusionary housing or providing mandatory inclusionary housing pursuant to the Zoning Resolution.
Borough Capitalization Rate. “Borough Capitalization Rate” means the median Capitalization Rate of all Qualified Transactions in a given borough during the four most recent Fiscal Quarters, as calculated by HPD, at the time each Speculation Watch List update is completed.
DOF. “DOF” means the Department of Finance of the City of New York or any successor agency or department thereto.
Dwelling Unit. “Dwelling Unit” means a dwelling unit as defined in § 27-2004 of the Housing Maintenance Code.
Fiscal Quarter. “Fiscal Quarter” means any one of the following periods: (i) the period beginning on the first day of July and ending on the last day of September; or (ii) the period beginning on the first day of October and ending on the last day of December; or (iii) the period beginning on the first day of January and ending on the last day of March; or (iv) the period beginning on the first day of April and ending on the last day of June.
Fiscal Year. “Fiscal Year” means the fiscal year of the City of New York, which commences July 1 and ends June 30.
HDC. “HDC” means the New York City Housing Development Corporation.
HDFC. “HDFC” means a housing development fund company organized pursuant to Article 11 of the Private Housing Finance Law.
HPD. “HPD” means the Department of Housing Preservation and Development of the City of New York or any successor agency or department thereto.
Internal Revenue Code. “Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended.
List. “List” means the speculation watch list that is published during each Fiscal Quarter and includes all Multiple Dwellings that (i) were the subject of Qualified Transactions and (ii) HPD has determined to be at risk of tenant harassment in accordance with the criteria established in 28 RCNY § 52-02.
Listed Building. “Listed Building” means a Multiple Dwelling included on a List.
Local Supervision. “Supervision” means monitoring of the performance and regulatory compliance of Affordable Housing by HPD’s Division of Asset Management, HPD’s Division of Housing Supervision, or HDC Asset Management, or their successors.
Multiple Dwelling. “Multiple Dwelling” means a multiple dwelling, as defined in section 4 of the Multiple Dwelling Law:
(i) in which a majority of Dwelling Units are Rent Regulated;
(ii) that appears on the most recent DOF final assessment roll;
(iii) for which, during the Fiscal Year of the most recent DOF final assessment roll, DOF has recorded a notice of property value that lists numerical values greater than zero for both estimated gross income and estimated expenses;
(iv) for which the final assessment roll for the Fiscal Year immediately preceding the most recent notice of property value lists a tentative actual assessed value of greater than $40,000;
(v) that either (A) is exclusively residential with eleven or more Dwelling Units or (B) contains seven or more Dwelling Units and one or more commercial units;
(vi) that is not providing Affordable Housing subject to Local Supervision;
(vii) that is neither (A) fully exempt from real property taxation under any applicable law or (B) partially exempt from real property taxation pursuant to article 2, 4, 5, or 11 of the Private Housing Finance Law or Section 420-c of the Real Property Tax Law;
(viii) that is not receiving benefits pursuant to § 11-243 of the Administrative Code of the City of New York for any eligible work that was carried out with the substantial assistance of grants, loans or subsidies from any federal, state, or local governmental agency or instrumentality; and
(ix) that is not located on a 421-a New Building Tax Lot.
Qualified Transaction. “Qualified Transaction” means the sale of a Multiple Dwelling that:
(i) occurred during the most recently concluded Fiscal Quarter;
(ii) has a sale price greater than $10,000;
(iii) is entirely contained within a single tax lot;
(iv) did not involve any federal, state, or local agency or instrumentality as either the purchaser or the seller; and
(v) did not involve an HDFC as the purchaser.
Rent Regulated. “Rent Regulated” means subject to rent regulation under the Rent Stabilization Law of 1969, the Rent Stabilization Code, the Private Housing Finance Law, or the Emergency Tenant Protection Act of 1974, all as amended, together with any successor statutes or regulations addressing substantially the same subject matter.
Zoning Resolution. “Zoning Resolution” means the Zoning Resolution of the City of New York, as amended.
§ 52-02 Criteria for inclusion.
A Multiple Dwelling that is the subject of a Qualified Transaction and that has a Capitalization Rate less than the applicable Borough Capitalization Rate shall be added to the List. HPD will post a public e-mail address on its website through which HPD may be alerted as to any Multiple Dwelling that was either included on the List that allegedly did not meet the criteria for inclusion at the time of its inclusion or omitted from the List that allegedly did meet the criteria for inclusion.
§ 52-03 Criteria for removal.
A Listed Building shall be removed from the List if, subsequent to the Qualified Transaction:
§ 53-01 Definitions.
For the purposes of this chapter, the following terms shall have the following meanings:
Access Authorizer. The term “Access Authorizer” means the person who authorizes the Department or a person or entity designated by the Department to enter the Pilot Program Building for purposes of an investigation of an application for a Certification of No Harassment. The Access Authorizer shall be a natural person who either has legal possession of all common areas of the Pilot Program Building, or is authorized to sign on behalf of and bind the persons or entities who have legal possession of all common areas of the Pilot Program Building.
Applicant. The term “Applicant” means the person who executes an application for a Certification of No Harassment, and shall be a natural person who is either: (1) an Owner, or (2) a principal or officer of an Owner who is authorized to sign on behalf of and bind such Owner.
Building Qualification Index. The term “Building Qualification Index” means an index created by the Department in accordance with section 27-2093.1 of the Administrative Code to evaluate prospective Pilot Program Buildings for distress as set forth in 28 RCNY § 53-03.
Certification of No Harassment. The term “Certification of No Harassment” means a certification by the Department that no harassment of any lawful occupants of a Pilot Program Building occurred during the 60 month period prior to the filing of an application for such certification.
City-sponsored Neighborhood-wide Rezoning Area. The term “Citysponsored Neighborhood-wide Rezoning Area” means an area of the zoning map for which:
(1) amendments to the zoning regulations pertaining to such area were proposed by the City;
(2) the city planning commission approved or approved with modifications such amendments for a matter described in paragraph 3 of subdivision a of section 197-c of the charter;
(3) the city planning commission decision was approved or approved with modifications by the council pursuant to section 197-d of the charter and is not subject to further action pursuant to subdivision e or f of such section;
(4) the zoning map amendments increased the permitted residential floor area ratio within the rezoned area by at least 33 percent; and
(5) the amendments involved at least 10 blocks of real property in such area.
Commissioner. The term “Commissioner” means the Commissioner of the Department of Housing Preservation and Development.
Covered Categories of Work. The term “Covered Categories of Work” means the following types of construction or other work that require a building owner to obtain a Certification of No Harassment prior to approval of construction documents by the Department of Buildings:
(1) demolition of all or part of the Pilot Program Building;
(2) change of use or occupancy of all or part of a dwelling unit, any residential portion of the Pilot Program Building, or any part of such building serving such dwelling units;
(3) any alteration resulting in the addition or removal of kitchens or bathrooms, an increase or decrease in the number of dwelling units, or any change to the layout, configuration, or location of any portion of any dwelling unit;
(4) an application for a new or amended certificate of occupancy; and
(5) removal of a central heating system and replacement with an individually metered heating system, provided that this type of work shall be considered a Covered Category of Work for any plan approval or any application for a permit or renewal of a permit submitted to the Department of Buildings on and after September 1, 2019.
Department. The term “Department” means the Department of Housing Preservation and Development.
Exceptions to Covered Categories of Work. The term “Exceptions to Covered Categories of Work” means the following types of construction or other work that, notwithstanding the definition of Covered Categories of Work, do not require a building owner to obtain a Certification of No Harassment prior to approval of construction documents by the Department of Buildings:
(1) Work solely for the purpose of either:
(a) making the public areas of a Pilot Program Building accessible to persons with disabilities without altering the configuration of any dwelling unit or rooming unit, or
(b) making the interior or the entrance to a dwelling unit or a rooming unit accessible to persons with disabilities.
(2) Repairs, demolition, or any other work performed by a city agency or by a contractor pursuant to a contract with a city agency.
(3) Repairs, demolition, or any other work performed by an owner who has entered into a regulatory agreement for such building with the Department.
(4) Demolition of a building performed pursuant to a declaration of an immediate emergency or emergency demolition order issued by the Department of Buildings.
(5) Work performed in a building that has an administrator currently appointed pursuant to article seven-a of the real property actions and proceedings law.
(6) Work performed in a building that has been transferred to a third party transferee or that has been transferred by such third party transferee to a subsequent transferee approved by the Department pursuant to an in rem foreclosure judgment under the Third Party Transfer program, authorized under chapter 3 of title 11 of the Administrative Code and the rules set forth in 28 RCNY Chapter 8.
Fee. The term “Fee” means a sum in the amount of $160.00 per existing dwelling unit which amount is a fee to offset all or part of the administrative cost to the Department of processing the application for a Certification of No Harassment.
Harassment. The term “Harassment” has the meaning set forth in subdivision 48 of section 27-2004 of the Administrative Code, provided, however, that in investigating whether Harassment occurred pursuant to this Chapter, the Department shall apply the definition of Harassment in such section of the Administrative Code that existed during all relevant times of the Inquiry Period.
Inquiry Period. The term “Inquiry Period” means a period commencing 60 months prior to submission of the application for a Certification of No Harassment and ending on the date that the Department issues a final determination on such an application.
Low Income Housing. The term “Low Income Housing” means dwelling units that, upon initial rental and upon each subsequent rental following a vacancy, are affordable to and restricted to occupancy by individuals or families whose household income does not exceed an average of 50 percent of the area median income, adjusted for family size, at the time that such household initially occupies the dwelling unit, provided that with respect to Low Income Housing units provided pursuant to a cure agreement in accordance with subdivision (e) of section 27-2093.1 of the Administrative Code and these rules, one-third of such Low Income Housing units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 40 percent of the area median income, one-third of such units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 50 percent of the area median income, and one-third of such units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 60 percent of the area median income.
Luxury Hotel. The term “Luxury Hotel” shall have the meaning set forth in 28 RCNY § 10-01.
Owner. The term “Owner” means:
(1) the holder of title to the property,
(2) a contract vendee of title to the property,
(3) the lessee pursuant to a net lease of the entire property with an unexpired term of not less than ten years from the date of submission of the application, or
(4) a receiver who is authorized by court order to apply to the Department for a Certification of No Harassment and to the Department of Buildings for a building permit.
Pilot Program Building. The term “Pilot Program Building” means a multiple dwelling included on the Pilot Program List.
Pilot Program List. The term “Pilot Program List” means a list of multiple dwellings with six or more dwelling units meeting the criteria set by subdivision b of section 27-2093.1 of the Administrative Code and by the Department pursuant to these rules. Such multiple dwelling shall remain on the Pilot Program List for 60 months, or until expiration of the local law that authorizes these rules, whichever is later. Such list shall not include any multiple dwelling that:
(1) is subject to any other provision of law or rules, including the zoning resolution, that requires a Certification of No Harassment as a condition to obtaining approval of construction documents or an initial or reinstated permit in connection therewith from the Department of Buildings;
(2) is the subject of a Department-approved program related to the rehabilitation or preservation of a single room occupancy or the provision of affordable housing for persons of low or moderate income, other than a program consisting solely of real property tax abatement or tax exemption pursuant to the real property tax law, and is exempted from the provisions of section 27-2093.1 of the Administrative Code as an exempt program upon review and approval by the Commissioner. For purposes of such exemption, the term, “Affordable Housing” shall mean dwelling units for which occupancy or initial occupancy is required to be restricted based upon the income of the occupant or prospective occupant thereof as a condition of:
(i) a loan, grant, tax exemption (except as otherwise provided herein), regulatory agreement, or conveyance of property from any state or local governmental agency or instrumentality pursuant to the Private Housing Finance Law, other than article 8-B of such law, or the General Municipal Law, or
(ii) a tax exemption pursuant to section 420-c of the Real Property Tax Law. Affordable Housing shall not include dwelling units for which occupancy or initial occupancy is required to be restricted based on the income of the occupant or prospective occupant thereof as a condition of a tax exemption pursuant to section 421-a of the Real Property Tax Law;
(3) contains dwelling units that are required to be and actually are restricted based on income pursuant to an agreement under the mandatory inclusionary housing program or the voluntary inclusionary housing program, provided that the income-restricted units that are required by such agreement are occupied at the time of application for a Certification of No Harassment;
(4) is a Rent Regulated Institutional Residence, the occupancy of which is restricted to non-profit institutional use exempted from the requirements of section 27-2093.1 of the Administrative Code by the Department;
(5) is owned by the city or other governmental entity;
(6) is a clubhouse;
(7) is a college or school dormitory; or
(8) is a Luxury Hotel.
Rent Regulated Institutional Residence. The term “Rent Regulated Institutional Residence” means a multiple dwelling the occupancy of which is restricted to non-profit institutional use and was restricted to non-profit institutional use during the Inquiry Period, is rentregulated, and which has been exempted from the provisions of section 27-2093.1 of the Administrative Code by written determination of the Department.
§ 53-02 Pilot Program List.
(1) A Pilot Program List will be provided by the Department on its website, and the initial Pilot Program List will published in the City Record.
(a) Buildings with scores on the Building Qualification Index indicating significant distress as determined by the Department, and located within:
(i) Bronx community district 4,
(ii) Bronx community district 5,
(iii) Bronx community district 7,
(iv) Brooklyn community district 3,
(v) Brooklyn community district 4,
(vi) Brooklyn community district 5,
(vii) Brooklyn community district 16,
(viii) Manhattan community district 9,
(ix) Manhattan community district 11,
(x) Manhattan community district 12,
(xi) Queens community district 14, and
(xii) Any community district where any part of such district is subject to a City-sponsored Neighborhood-wide Rezoning after December 31, 2017. Such community district will be added to the Pilot Program List and included on the Pilot Program List on the Department’s website within 30 days after it is designated;
(b) Buildings where a full vacate order has been issued by the Department or by the Department of Buildings within the five-year period prior to July 24. 2018;
(c) Buildings where there has been active participation in the Department’s alternative enforcement program pursuant to an order issued by the Department for more than four months since February 1, 2016 and the Department has determined that an order will be issued. A building will be added to the Pilot Program List and included on the Pilot Program List on the Department’s website within 30 days after it is identified for issuance of an order by the Department; and
(d) Buildings where there has been a final determination by New York State Homes and Community Renewal or any court having jurisdiction that one or more acts of Harassment were committed at such building after September 27, 2013. A building will be added to the Pilot Program List and included on the Pilot Program List on the Department’s website within 30 days after it is identified as having been the subject of such determination, provided, however that where such final determination was made on default judgment, and such default is opened by the court having jurisdiction, such building will be removed from the Pilot Program List within 30 days of notification by the owner unless such building meets other criteria for inclusion on such list.
§ 53-03 Criteria for the Building Qualification Index.
The criteria used to evaluate prospective Pilot Program Buildings for distress shall include:
(a) Buildings with no ownership changes within a five-year period prior to July 24, 2018, and a combined score of 15 or more for criteria in subdivisions (1) and (2) of this section;
(b) Buildings with one ownership change within a five-year period prior to July 24, 2018 and a combined score of ten or more for criteria in subdivisions (1) and (2) of this section; and
(c) Buildings with two or more ownership changes within a five-year period prior to July 24, 2018, and a combined score of five or more for criteria in subdivisions (1) and (2) of this section.
§ 53-04 Application for Certifications of No Harassment
(1) An application for a Certification of No Harassment shall contain such information, in such form, as the Department shall require.
(a) by hand delivery on business days, during such hours and in such location as the Department shall determine,
(b) by mail,
(c) by private courier, or
(d) electronically, as provided by the Department.
(a) reject the application, or
(b) review the application without such information and draw a negative inference with respect to the missing information.
(a) taxes, water and sewer charges, emergency repair program charges, alternative enforcement program charges, or any other municipal charges remain unpaid with respect to the multiple dwelling;
(b) the Pilot Program Building is being used or has been altered either without proper permits from the Department of Buildings or in a way that conflicts with the certificate of occupancy for such building (or, where there is no certificate of occupancy, any record of the Department indicating the lawful configuration and use of the such building) and such unlawful alteration or use remains uncorrected;
(c) the application is incomplete or is missing information;
(d) the building is not validly registered with the Department; or
(e) the Department has previously denied an application pursuant to these rules.
(a) an initial determination that there is reasonable cause to believe that Harassment occurred during the Inquiry Period at the Pilot Program Building, or
(b) a final determination that Harassment occurred during the Inquiry Period at the Pilot Program Building.
§ 53-05 Investigation.
(1) The Department may designate a community group to conduct a survey of the occupants of a Pilot Program Building with respect to Harassment in such building and to report its findings to the Department. Based upon the findings of such community group or the Department's review of records and other data, the Department may determine that it is necessary to conduct a further investigation.
§ 53-06 Initial Determination.
(1) Upon the completion of the investigation of an application for a Certification of No Harassment, the Department shall:
(a) reject such application,
(b) determine that there is not reasonable cause to believe that Harassment occurred during the Inquiry Period at the Pilot Program Building,
(c) determine that there is reasonable cause to believe that Harassment occurred during the Inquiry Period at the Pilot Program Building, or
(d) determine that there has been a final determination by New York State Homes and Community Renewal or any court having jurisdiction, that one or more acts of Harassment, unlawful eviction or arson by or on behalf of the owner were committed at the Pilot Program Building during the Inquiry Period.
(a) send written notice of such determination to the Applicant, and
(b) grant the Certification of No Harassment.
§ 53-07 Hearing.
(1) When the Department has determined in accordance with these rules that there is reasonable cause to believe that Harassment occurred at the Pilot Program Building during the Inquiry Period, the Department shall schedule a hearing before the Office of Administrative Trials and Hearings. The Applicant shall have the opportunity to be heard at such hearing prior to the granting or denial of the Certification of No Harassment.
§ 53-08 Final Determination.
(1) When the Department has determined that there is reasonable cause to believe that Harassment occurred at the Pilot Program Building during the Inquiry Period and a hearing has been held before the Office of Administrative Trials and Hearings, the Commissioner shall review the report and recommendation of the hearing officer and make a final determination to grant or deny the application.
§ 53-09 Certification of No Harassment.
(1) A Certification of No Harassment shall be effective for 60 months from the date upon which such certification is signed by the Commissioner, which period shall be stated in such certification. Such Certification shall apply to any plan approval, and any application for a permit or renewal of a permit for any Covered Categories of Work that is submitted to the Department of Buildings during such period.
(a) all of the Owners of the Pilot Program Building, or
(b) principals or officers of all of the Owners of the Pilot Program Building who are authorized to sign on behalf of and bind such Owners.
§ 53-10 Waiver or Exemption.
(1) Notwithstanding any provision of these rules to the contrary, if an application is for a waiver or exemption, the Department will waive the Fee.
(a) all of the Owners of the Pilot Program Building, or
(b) principals or officers of all of the Owners of the Pilot Program Building who are authorized to sign on behalf of and bind such Owners.
§ 53-11 Suspension and Rescission.
(1) The Department may rescind a Certification of No Harassment or waiver at any time if it determines that the application for such Certification or waiver contained a material misstatement of fact.
§ 53-12 Cure Agreement.
(1) Where the Department has denied an application for a Certification of No Harassment for a Pilot Program Building, or, where an owner has, in lieu of seeking a Certification of No Harassment which is otherwise required, elected instead to seek a certification of compliance with the cure provisions described in subdivision e of section 27-2093.1 of the Administrative Code, such Owner may apply to the Department to cure the record of Harassment or satisfy the requirement for the Certification of No Harassment by entering into a cure agreement with the Department.
(a) The Owner shall construct floor area of Low Income Housing, either within the Pilot Program Building, in a new building on the same site as the Pilot Program Building, or in such same community district, of no less than the greater of: (i) 25 percent of the total residential floor area of such Pilot Program Building undergoing Covered Categories of Work in which harassment has occurred or for which the Owner has elected to seek a certification of compliance with the cure provisions of subdivision e of section 27-2093.1 of the Administrative Code, or (ii) 20 percent of the total floor area of any new or Pilot Program Building undergoing Covered Categories of Work on the lot containing the Pilot Program Building subject to the cure agreement;
(b) The Owner shall contract with an administering agent, which shall be an organization qualified by the Department to market and manage the Low Income Housing units and monitor compliance with the cure agreement;
(c) Lawful tenants of such Pilot Program Building during the Inquiry Period shall have priority in the allocation of such Low Income Housing units constructed by the Owner within the Pilot Program Building or in a new building at the same site as the Pilot Program Building if they otherwise qualify for such units;
(d) No construction of such required floor area of Low Income Housing units shall be used by the Owner to satisfy an eligibility requirement of any real property tax abatement or exemption program, or of a floor area ratio increase pursuant to section 23-90 and 23-154, inclusive, of the zoning resolution, for which the Owner otherwise may be eligible to apply, or to apply for a hardship waiver from any existing code or zoning resolution requirement, and such required floor area shall be in addition to and not in substitution for floor area of Low Income Housing that may be used by the owner to satisfy such an eligibility requirement;
(e) No city, state or federal subsidy shall be used for the construction of Low Income Housing units required pursuant to subdivision e of section 27-2093.1 of the Administrative Code. or these rules; and
(f) The initial rents charged by the Owner for the Low Income units shall not exceed an average of 50 percent of the area median income, adjusted for family size, at the time that such household initially occupies the dwelling unit, provided that with respect to Low Income Housing Units provided pursuant to a cure agreement in accordance with section 27-2093.1 of the Administrative Code, one-third of such Low Income Housing units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 40 percent of the area median income, one-third of such units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 50 percent of the area median income, and one-third of such units shall be affordable to and restricted to occupancy by individuals or families whose household income does not exceed 60 percent of the area median income.
(g) If the Owner violates any term, covenant, or provision of the cure agreement, or if any representation made by the Owner is determined by the Department to be false or misleading, then the Department may declare a default under the cure agreement, and take such enforcement action as specified in such agreement or under law.
§ 54-01 Definitions.
For purposes of this chapter:
Common area. The term “common area” means a portion of a multiple dwelling that is not within a dwelling unit and that is regularly used by occupants for access to and egress from any dwelling unit within such multiple dwelling, as well as commonly used areas such as a laundry room.
Department. The term “department” means the City of New York Department of Housing Preservation and Development.
Harborage. The term “harborage” means any condition which provides shelter or protection for pests.
Indoor allergen hazard. The term “indoor allergen hazard” means any indoor infestation of cockroaches, mice, or rats or conditions conducive to such infestation, or an indoor mold hazard.
Indoor mold hazard. The term “indoor mold hazard” means any condition of mold growth on an indoor surface, building structure or ventilation system, including mold that is within wall cavities, that is likely to cause harm to a person or that has been cited as a violation by the Department.
Integrated pest management. The term “integrated pest management” means ongoing prevention, monitoring and pest control activities to eliminate pests from any building, lot, or dwelling. This includes, but is not limited to, the elimination of harborages and conditions conducive to pests, the use of traps, and, when necessary, the use of pesticides.
Pest. The term “pest” means any unwanted member of the Class Insecta, including, but not limited to houseflies, lice, bees, cockroaches, moths, silverfish, beetles, bedbugs, ants, termites, hornets, mosquitoes and wasps, and members of the Phylum Arthropoda such as spiders, mites, ticks, centipedes and wood lice, or of the Order Rodentia, including but not limited to mice, Norway rats, and any other unwanted plant, animal or fungal life that is a pest because it is destructive, annoying or a nuisance.
Remediation or remediate. The term “remediation” or “remediate” means measures to eradicate pests in accordance with Administrative Code Section 27-2017.8 and these rules, and measures to eradicate indoor mold hazards in accordance with Administrative Code Section 27-2017.9 and these rules.
Underlying defect. The term “underlying defect” means a condition that causes an indoor mold hazard, such as a water leak or water infiltration from plumbing or defective masonry pointing or other moisture condition, or causes an infestation of pests, including holes or entryway paths for pests.
Visible mold. The term “visible mold” means mold that is readily identifiable by visual inspection, including mold that is behind furniture or other interior obstructions. Visible mold that is present on tile or grout does not constitute an indoor mold hazard violation under Administrative Code Section 27-2017.3.
§ 54-02 Owner Notification to Tenants.
All leases offered to tenants or prospective tenants in a multiple dwelling must contain a notice, prominently displayed within, which advises tenants of the obligations of the owner and tenant as set forth in Administrative Code Section 27-2017 et seq. and these rules regarding control of indoor allergen hazards. Such notice must not materially deviate from the form of the notice in Appendix A of these rules, and must be provided in English and in the covered languages set forth in Administrative Code Section 8-1002. In addition to such notice, the owner of such multiple dwelling must provide the tenant or prospective tenant of such dwelling unit with the pamphlet developed by the Department of Health and Mental Hygiene in accordance with Administrative Code Section 17-199.7.
§ 54-03 Postponements.
(a) An owner may apply to the Department in writing for postponement of the time to correct an immediately hazardous violation issued in accordance with Administrative Code Sections 27-2017.3a(4) or 27-2017.4b within the five days preceding the date set for correction of such violation. No postponement may be requested for a hazardous violation that has become an immediately hazardous violation under Administrative Code Section 27-2017.3a(4) or (5).
§ 54-04 Work Practices.
(a) An owner must use integrated pest management procedures as provided in Administrative Code Section 27-2017.8, to repair any violation issued in accordance with Section 27-2017.4b, and must also use such procedures, when appropriate, when addressing an infestation of pests upon inspection by such owner, or where otherwise directed by the Department. Such owner must:
1. inspect for, and physically remove pest nests, waste, and other debris by High-Efficiency Particulate Air (HEPA) vacuuming, washing surfaces, or otherwise collecting and discarding such debris;
2. eliminate points of entry and passage for pests by repairing and sealing any holes, gaps or cracks in walls, ceilings, floors, molding, base boards, around pipes and conduits, or around and within cabinets by using sealants, plaster, cement, wood, escutcheon plates, or other durable material. Attach door sweeps to any door leading to a hallway, basement, or outside the building to reduce gaps to no more than one-quarter inch; and
3. eliminate sources of water for pests by repairing drains, faucets, and other plumbing materials that accumulate water or leak. Remove and replace saturated materials such as interior walls and cabinets.
4. The use of pesticides must not substitute for pest management measures described in this section. Any pesticide applied must be applied by a pest professional licensed by New York State Department of Environmental Conservation (DEC).
1. investigate and correct any underlying defect, including moisture or leak conditions, that are causing or may cause mold violations;
2. remove or securely cover with plastic sheeting any furniture or other items in the work area that cannot be removed;
3. minimize the dispersion of dust and debris from the work area to other parts of the dwelling unit through methods such as: sealing ventilation ducts/grills and other openings in the work area with plastic sheeting; isolating the work area with plastic sheeting and covering egress pathways; cleaning or gently misting surfaces with a dilute soap or detergent solution prior to removal; the use of HEPA vacuum-shrouded tools or a vacuum equipped with a HEPA filter at the point of dust generation;
4. clean mold with soap or detergent and water;
5. remove and discard materials that cannot be cleaned properly;
6. properly remove and discard plastic sheeting, cleaning implements, and contaminated materials in sealed, heavy weight plastic bags;
7. clean any remaining visible dust from the work area using wet cleaning methods or HEPA vacuuming;
8. leave the work area dry and visibly free from mold, dust, and debris; and
9. perform assessments, remediation work, and provide notices and reports as required in compliance with Article 32 of the New York State Labor Law and Administrative Code Section 24-154, and any rules promulgated thereunder, where applicable.
§ 54-05 Certifications of Violations.
(a) 1. An owner’s certification of correction of a pest violation that was issued, pursuant to Administrative Code Section 27-2017.4a must, where directed by the Department, include an affidavit affirming that the work practices required in accordance with 28 RCNY § 54-05(a) were properly performed.
2. An owner’s certification of correction of a pest violation that was issued, pursuant to Administrative Code Section 27-2017.4b must include an affidavit affirming that the work practices required in accordance with 28 RCNY § 54-04(a) were properly performed.
The Department may also require additional documentation for certification of correction of a violation of Section 27-2017.4 deemed necessary to ensure that the violation has been properly corrected.
3. An owner’s certification of correction of an indoor mold hazard violation issued, pursuant to Administrative Code Section 27-2017.3 must include an affidavit affirming that the work practices required in accordance with 28 RCNY § 54-04(b) were properly performed. Where licensed workers are required to be used to correct an indoor mold hazard, pursuant to New York State Labor Law Article 32, or, pursuant to Administrative Code Section 24-154, such certification must include an affidavit by the remediator and by the assessor indicating that the work practices and notices required under those laws and rules, as set forth in 28 RCNY § 54-04(b) were complied with, and shall include proof that the remediator’s remediation plan and the assessor’s final report were submitted to the Department of Environmental Protection in accordance with Administrative Code Section 24-154. The Department may also require additional documentation for certification of correction of a violation of Section 27-2017.3 deemed necessary to ensure that the violation has been properly corrected.
APPENDIX A LEASE/COMMENCEMENT OF OCCUPANCY NOTICE FOR INDOOR ALLERGEN HAZARDS
I, _______________________________(owner or representative name in print), certify that I have complied with the requirements of the New York City Administrative Code Section 27-2017.5 by removing all visible mold and pest infestations and any underlying defects, and where applicable, cleaning and vacuuming any carpeting and furniture that I have provided to the tenant. I have performed the required work using the safe work practices provided in the law.
Signed:Print Name:Date:
APÉNDICE A AVISO DE ALQUILER/COMIENZO DE LA OCUPACIÓN SOBRE RIESGO DE ALÉRGENOS EN INTERIORES
Yo, _______________________________(nombre del propietario o del representante en letra de molde), certifico que he cumplido con los requisitos del Código administrativo de la Ciudad de Nueva York Sección 27-2017.5 eliminando todo el moho e infestaciones visibles y cualquier defecto subyacente si fuera aplicable, limpiando y aspirando cualquier moqueta y mobiliario que haya provisto al inquilino. He realizado los trabajos necesarios siguiendo las prácticas de trabajo seguro establecidas por la ley.
Firmado:Nombre en letra de molde:
§ 55-01 Records.
An owner must keep a record of the following documents for five years, and produce such documents upon request of the Department:
§ 55-02 Annual Notice.
On or prior to January 5, 2019, and every year thereafter, an owner of a unit in a multiple dwelling, other than a dwelling unit in a multiple dwelling owned as a condominium or cooperative and used as the primary residence of such owner, must provide an annual notice to each tenant of a unit with a gas-powered stove regarding the owner¡¦s obligation to provide stove knob covers pursuant to New York City Administrative Code Section 27-2046.4(a). Such notice may be combined with other annual notices required to be provided to tenants. Such notice must provide the following information:
ENGLISH VERSION: ANNUAL NOTICE REGARDING INSTALLATION OF STOVE KNOB COVERS
The owner of this building is required, by Administrative Code § 27-2046.4(a), to provide stove knob covers for each knob located on the front of each gas-powered stove to tenants in each dwelling unit in which a child under six years of age resides, unless there is no available stove knob cover that is compatible with the knobs on the stove. Tenants may refuse stove knob covers by marking the appropriate box on this form. Tenants may also request stove knob covers even if they do not have a child under age six residing with them, by marking the appropriate box on this form. The owner must make the stove knob covers available within 30 days of this notice. Please also note that an owner is only required to provide replacement stove knob covers twice within any one-year period. You may request or refuse stove knob covers by checking the appropriate box on the form below, and by returning it to the owner at the address provided. If you do not refuse stove knob covers in writing, the owner will attempt to make them available to you.
Please complete this form by checking the appropriate box, filling out the information requested, and signing. Please return the form to the owner at the address provided by (INSERT DATE):
(Tenant Signature) (DATE)
Print Name, Address, and Apartment Number:____________________________________________________________________________________________________________
Return this form to: (Owner address):____________________________________________________________________________________________________________
SPANISH VERSION: AVISO ANUAL RESPECTO A LA INSTALACION DE PROTECTORES PARA PERILLAS DE COCINA
Segun la § 27-2046.4(a) del Codigo Administrativo, el dueno de este edificio debe proporcionar a cada inquilino/a protectores para todas las perillas frontales de cada cocina a gas que haya en las unidades de vivienda donde residan ninos menores de seis anos, salvo que no haya protectores que sean compatibles con las perillas de la cocina. Si desean rechazar los protectores para perillas de cocina, los inquilinos deben tildar la opcion correspondiente en este formulario. Los inquilinos tambien pueden solicitar los protectores aunque no residan con ninos menores de seis anos, para lo cual deberan tildar la opcion correspondiente. El propietario tiene un plazo de 30 dias a partir de este aviso para poner los protectores para perillas de cocina a disposicion de los inquilinos. Cabe senalar que el propietario tiene la obligacion de reemplazar los protectores solo dos veces en el periodo de un ano. Para solicitar o rechazar los protectores, marque la casilla correspondiente mas adelante en este formulario y envieselo al propietario a la direccion proporcionada. Si usted no rechaza los protectores por escrito, el propietario tratara de ponerlos a su disposicion.
Para completar este formulario, marque la casilla correspondiente, escriba la informacion solicitada y firme. Envie el formulario al propietario, a la direccion proporcionada, antes del (INDICAR FECHA):
(Firma del inquilino) (FECHA)
Nombre en letra de imprenta, direccion y numero de apartamento:______________________________________________________________________________________________________________
Devolver este formulario a (direccion del propietario):______________________________________________________________________________________________________________
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