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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.
(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.
(b) Program Description. Under the Program, titles to Buildings will be conveyed to Sponsors who will thereafter be responsible for the Rehabilitation of such Buildings. Sale of the Buildings will be pursuant to applicable Laws and each Disposition will require approval of the Mayor and the City Council, acting in their respective capacities pursuant to such Laws.
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.
(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.
(b) Notice of Preliminary Selection. After HPD has found a Building to be eligible pursuant to subdivision (a) of this section and has preliminarily selected the Building for the Program, HPD shall provide all Tenants of the Building with a document containing the following:
(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.
(c) Tenant Meeting. HPD shall hold a Tenant meeting prior to making a Final Selection, giving notice to Tenants at least two business days prior to such meeting.
(d) Notice of Final Selection. No sooner than thirty (30) days after the Preliminary Selection, HPD shall notify the Tenants of a Building of the Final Selection of the Building for the Program. No later than ninety (90) days after the notice of Final Selection, the Tenants of a Building selected for the Program may apply for any other HPD disposition program that accepts applications from Tenants.
(e) Notice of Project Commencement. No sooner than ninety (90) days after the notice of Final Selection, HPD shall notify the Tenants of a Building that the Project has commenced, unless the Tenants have applied for another HPD disposition program that accepts applications from Tenants within such time period. If the Tenants have applied for another HPD disposition program that accepts applications from Tenants within such time period and have been rejected from such program, then, immediately after the later of such rejection or ninety (90) days after the notice of Final Selection, HPD shall notify such Tenants that the Project has commenced.
(f) Notice of Intake Rent. Either at the time of the notice of Project Commencement or thereafter, HPD shall notify each Tenant of the Intake Rent and the date it becomes effective, which effective date shall be not less than thirty (30) days after the date of the notice of Intake Rent, and shall, in accordance with 28 RCNY § 30-09, provide information on rental assistance which may be available to Tenants and the procedures to apply for such assistance.
(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.
(b) Commitment Letter. HPD may state Subsidy terms in a commitment letter signed by the Commissioner. Such commitment letter, if any, may contain such terms as HPD may deem necessary or desirable in order to effectuate the purposes of these Rules and to protect the City's interests. The provision of the Subsidy shall be made subject to satisfaction of all the terms and conditions contained in such commitment letter.
(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).
(b) Pre-commitment meeting. After the notice of Project Commencement pursuant to 28 RCNY § 30-04(e), and prior to the issuance of a commitment letter containing the terms and conditions for a Subsidy, HPD shall send a notice informing the Tenants of the time and place of a meeting to discuss the Program at least two business days prior to such meeting. A representative of HPD shall attend such meeting.
(c) Projection of Post-Rehabilitation Rents. HPD shall determine a rent for each dwelling unit in the Building to take effect upon Substantial Completion. The Post-Rehabilitation Rent per occupied dwelling unit may be based upon the Tenants' income or may reflect the expenses for the Building as projected by HPD less the effective annual net commercial income, if any. If the Post-Rehabilitation Rent reflects the Building's expenses, HPD shall project the annual maintenance and operating expenses for the Building after Substantial Completion, including allowances for vacancies and debt service coverage. The expenses shall be projected by HPD based on its experience and knowledge of the operation of similar buildings. For those apartments which are vacant at the time of the sending of the notice of Substantial Completion pursuant to subdivision (h) of this section, HPD shall set Post-Rehabilitation Rents at no greater than one hundred and ten percent (110%) of the FMR for the area in which the Building is located.
(d) Pre-Disposition notice. Following the pre-commitment meeting held pursuant to subdivision (b) of this section, and not less than thirty (30) days prior to Disposition, HPD shall send a notice which shall
(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.
(e) Implementation of Intake Rent. Commencing no earlier than the date set forth in the notice of Intake Rent sent pursuant to 28 RCNY § 30-04(f), HPD shall charge the Intake Rent, except that rents for Tenants whose rents at such time are greater than the Intake Rent shall not be decreased.
(f) Registration of Rent. Not less than thirty (30) days after Disposition, Sponsor shall register with DHCR the rent charged to each Tenant in the Building at the time of Disposition. Leases shall contain a provision satisfactory to HPD requiring notice to the Tenant of the subsequent establishment of the Post-Rehabilitation Rent.
(g) Increase in Projected Post-Rehabilitation Rents. If the Post-Rehabilitation Rents established by HPD pursuant to subdivision (c) of this section reflect the Building's expenses, and HPD determines that its projection of maintenance and operating costs must be increased based on unforeseen changes in the circumstances and factors which formed the basis of the original projection, including, but not limited to, unexpected increases in fuel or utility costs, HPD shall notify Tenants of the amount of the expected rent increase over and above the Post-Rehabilitation Rent set forth in the pre-Disposition notice sent pursuant to subdivision (d) of this section.
(h) Notice of Substantial Completion. Following Substantial Completion, HPD shall send a notice to each Tenant that the Rehabilitation is substantially complete and that the Tenant's rent will be increased to the Post-Rehabilitation Rent in not less than sixty (60) days. Such notice shall state that the Tenant has an opportunity to comment regarding the quality of Rehabilitation. Such notice shall also include the amount of the Post-Rehabilitation Rent, its effective date, and 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. Prior to the establishment of Post-Rehabilitation Rents, HPD shall give due consideration to Tenant comments regarding the quality of the Rehabilitation.
(i) Implementation and Registration of Post-Rehabilitation Rents. Not less than sixty (60) days after the sending of the notice of Substantial Completion pursuant to subdivision (h) of this section, HPD shall complete and sign a rent order, and shall mail such order to the Tenant with a copy to the Sponsor. The rent set forth on each rent order shall be the Post-Rehabilitation Rent for such apartment as was determined in accordance with subdivision (c) of this section and as set forth in the pre-Disposition notice or as adjusted pursuant to subdivision (g) of this section. If an apartment is vacant at the time of establishment of rents, the rent order shall be mailed to the Sponsor. Immediately upon receipt of the rent order or a copy thereof, the Sponsor shall register the Post-Rehabilitation Rent for each Tenant in the Building with DHCR.
(j) Two year leases. The Sponsor must offer two year leases to all Tenants upon Substantial Completion.
(a) Lease. Prior to Disposition, HPD may temporarily lease the Building to a Lessee pursuant to the terms of a written lease.
(b) Tenant selection policy. Lessee shall rent vacant apartments only to low and/or moderate income Tenants as defined by HPD and in accordance with HPD guidelines. HPD may also, in the public interest, require that other persons, determined by HPD to be in need of housing, receive priority in the renting of apartments. HPD may require that rentals be pre-approved by HPD, that specified lists of eligible persons be used, or may direct any other Tenant selection method be used.
(c) Successor Tenants. Persons claiming to be successor Tenants, if any, prior to a unit entering rent stabilization, are subject to the rules set forth in 28 RCNY Chapter 24.
(d) Interim Payment Agreement. HPD may require the Lessee to enter into one or more Interim Payment Agreements in accordance with 28 RCNY § 30-09.
(e) Limitation on Collection of Arrears. At such time as a Tenant is one month or more in arrears on the payment of rent to Lessee, Lessee may commence a proceeding for such rent arrears and/or for possession of the apartment. Lessee may not sue for arrears which accrued more than three (3) months prior to the commencement of the lease for the Building.
(f) Vacancy Rents. Rents for vacant apartments shall be set by Lessee, subject to HPD approval.
(g) Commencement of Legal Proceedings. Lessee may commence legal proceedings, including eviction proceedings for failure to pay rent in accordance with 28 RCNY § 21-23(c), with the prior approval of HPD.
(h) Tenant Complaints.
(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.
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