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§ 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.
   (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.
§ 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.
   (b)   Use Restrictions. HPD may impose restrictions upon the use of a Building and may require Sponsor to agree to comply with such restrictions as a condition for Disposition or Subsidy. Such use restrictions may be enforced by any means which HPD determines to be necessary or appropriate, including, but not limited to, provisions in any deed, land disposition agreement, regulatory agreement, note, mortgage, security agreement, lien, restrictive declaration, or other legal document. HPD may require a Sponsor to provide security for its compliance with use restrictions in such types and amounts as are determined by HPD to be necessary or desirable. Such types of security may include, but shall not be limited to, surety bonds, letters of credit, or cash.
§ 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.
   (b)   Each Tenant who applies for rental assistance is solely responsible for supplying all required documentation and materials necessary to process an application: i.e., attending required interviews, providing the necessary income certification and complying with all procedures to process an application.
   (c)   HPD shall review all applications for rental assistance and make a preliminary determination of a Tenant's eligibility within sixty (60) days of receipt of a completed application. HPD shall promptly notify the Sponsor of all applicants for rental assistance and shall forward to the Sponsor copies of the applications, letters granting or denying rental assistance, Interim Payment Agreements entered into, and letters extending or terminating Interim Payment Agreements. Upon a finding of preliminary eligibility, HPD will provide the Tenant with an Interim Payment Agreement, which shall be signed by the Sponsor, the Tenant and HPD before it becomes effective. This Interim Payment Agreement shall include:
      (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.
   (d)   A Tenant who receives an Interim Payment Agreement will be required to pay the greater of (1) the amount set forth in the Interim Payment Agreement, which is the amount that s(he) would pay on a monthly basis if the rental assistance application is approved, or (2) the rent charged prior to implementation of the rent increase.
   (e)   The Interim Payment Agreement will terminate one year after the date of issuance or upon the earlier occurrence of any of the following:
      (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.
   (f)   HPD will permit any Tenant who has applied for rental assistance in accordance with subdivision (b) of this section and who has not been provided with an Interim Payment Agreement pursuant to subdivision (c) of this section, to pay a rent increase in stages of $10.00 per room per quarter.
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