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(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.
(b) If HPD selects a Third Party to acquire a property, HPD may arrange a closing date and may deliver the deed to the Third Party provided that the proposed conveyance has not been disapproved pursuant to Administrative Code § 11-412.2.
(c) HPD will provide a written notice to Tenants of properties that are the subject of an in rem judgment of foreclosure and eligible for the Third Party Transfer Program. Such notice will advise tenants of the foreclosure action, briefly describe the Third Party Transfer Program, and advise Tenants of an opportunity to apply for eventual ownership of such property under the sponsorship of a Third Party. Such notice shall be provided prior to entry of such judgment for such property and will be posted in a common area of the property, provided, however, that in the case of a property that is subject to a supplemental judgment of foreclosure due to a default in an installment agreement or a property that is subject to a summary judgment of foreclosure due to dismissal of an owner answer, such notice shall be provided prior to entry of such judgment or as soon as practicable thereafter. In addition, HPD will make an effort to place such notice beneath the doors of individual units in such properties.
(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.
(b) Use Restrictions. Any conveyance of a property to a Third Party shall be for an existing use. HPD may impose additional restrictions upon the use of such property and may require a Third Party to agree to comply with such restrictions. Such use restrictions may be enforced by any means that HPD determines to be necessary or appropriate, including, but not limited to, provisions in any deed, land development agreement, regulatory agreement, note, mortgage, enforcement note, enforcement mortgage, security agreement, lien, restrictive declaration, or other legal document. HPD may require a Third Party to provide security for its compliance with use restrictions in such types and amounts as are determined by HPD to be necessary or desirable.
(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.
(b) No later than ninety days after transfer to a Third Party of a property for which a Third Party has sponsored a Tenant application pursuant to 28 RCNY § 8-03(e)(9), such Third Party, or his or her designee, shall inform the Tenants that the property has entered into an interim evaluation period, and shall provide information to the Tenants about the process toward eventual ownership by the Tenants. Such Third Party shall make training available to such Tenants after such transfer. The training may include courses in building management, maintenance, and managing building finances. HPD may also provide notice to the Tenants regarding commencement of the interim evaluation period.
(c) The interim evaluation period shall include certain milestones for achievement which shall form the basis for HPD to either permit the property to move forward toward eventual ownership by Tenants, or to remove the property from the process toward such ownership. HPD shall evaluate progress toward eventual ownership by Tenants using the following milestones:
(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.
(d) Such interim evaluation period shall commence upon transfer of the property to the Third Party and shall continue upon the transfer of the property to any subsequent Third Party. Such interim evaluation period shall end when any required rehabilitation of the property has been completed and permanent loan conversion has taken place, or at the conclusion of such shorter period as HPD shall determine with notice to the Tenants.
(e) HPD shall evaluate compliance with the milestones listed in subdivision (c) of this section at regular intervals, and shall inform Tenants and the Third Party of its findings. HPD may at any time remove a property from the process toward eventual ownership by Tenants based upon its evaluation. If HPD has not removed the property from such process, at the completion of the interim evaluation period it shall make a determination for such property pursuant to 28 RCNY § 8-07.
(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.
(a) HPD Discretion. All determinations to be made by HPD in accordance with these Rules shall be in the sole discretion of HPD.
(b) Statutory Authority Not Limited. Nothing in these Rules shall be deemed to limit HPD's authority pursuant to applicable laws.
(c) Technical Violations. Provided that there has been a reasonable good faith effort to comply with these Rules, technical violations of these Rules shall not invalidate any action taken pursuant to these Rules, nor shall such technical violation give rise to any rights, claims, or causes of action.