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(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Body and the Law Department, all Dispositions shall require prior approval by the Agency, which approval may be withdrawn by the Agency, for any reason deemed by the Agency to be in the best interests of the City, at any time prior to Disposition.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.
(b) Legal Documents. The Agency may require a Sponsor to execute such legal documents, including, but not limited to, a deed, land disposition agreement, and regulatory agreement, as the Agency deems necessary or desirable to transfer title to the Site, enforce the obligations of the Sponsor, effectuate the purposes of the Project, and otherwise protect the best interests of the City. Such documents may contain such terms and conditions, consistent with these Rules, as are required by the City on a city-wide basis or as the Agency determines are necessary or desirable to transfer fee title or any other real property interest in the Site, enforce the obligations of the Sponsor, effectuate the purposes of the Project, and otherwise protect the best interests of the City.
(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.
(b) Loans. The Agency shall have the power and authority to provide, in connection with any Project, such Loans 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.
(c) Subsidies. The Agency shall have the power and authority to provide, in connection with any Project, such Subsidies as are authorized to be provided by applicable Law.
(d) Federal Benefits. Notwithstanding any provision of these Rules to the contrary, any allocation of federal benefits, including, but not limited to, rental subsidies and low income housing tax credits, shall be made in accordance with the federal laws and regulations concerning such benefits. Nothing in these Rules shall be deemed to impose any additional requirements regarding such allocation. The Agency may utilize such administrative procedures, consistent with such laws and regulations, as it deems appropriate to effectuate the purposes of the federal benefits and the City Housing Goals.
(e) Tax Benefits. Notwithstanding any provision of these Rules to the contrary, any exemption from or abatement of real property taxes pursuant to the PHFL, GML, RPTL, or Administrative Code, including, but not limited to, exemptions or abatements pursuant to Articles 2, 5, and 11 of the PHFL, Article 16 of the GML, Sections 420-a, 420-b, 420-c, 421-a, 421-b, 422, 488-a, and 489 of the RPTL, and §§ 11-243 and 11-244 of the Administrative Code and any successors thereto, shall be made in accordance with the Laws concerning such benefits. Nothing in these Rules shall be deemed to impose any additional requirements regarding such allocation. The Agency may utilize such administrative procedures, consistent with such Laws, as it deems appropriate to effectuate the purposes of such Laws and the City Housing Goals.
(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.
(b) Marketing. The Agency may require a Sponsor to market vacant dwelling units in accordance with the requirements of a marketing plan prepared by the Agency. Such marketing plan may include such requirements with respect to the marketing as the Agency deems necessary and desirable, including, but not limited to, (i) requirements to ensure outreach to make eligible City residents aware of the availability for rental or sale of such dwelling units, and (ii) requirements to ensure that applications for the rental or sale of dwelling unit are opened and considered in a random order. A marketing plan may, but shall not be required to, contain provisions providing a preference to certain applicants where the Agency deems such preference to be appropriate. Factors for the granting of such preference may include, but shall not be limited to, special needs, residence in the community in which the Site is located, or referral by the Agency to the Sponsor for relocation.
(c) Use Restrictions. The Agency may impose restrictions upon the use of a Site and may require a Sponsor to agree to comply with such restrictions as a condition for receiving any Disposition or Assistance. Such use restrictions may be enforced by any means which the Agency 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. The Agency may require a Sponsor to provide security for its compliance with use restrictions in such types and amounts as are determined by the Agency to be necessary or desirable. Such types of security may include, but shall not be limited to, surety bonds, letters of credit, or cash.
(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 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.
(b) Agency Discretion. All determinations to be made by the Agency and/or the Commissioner in accordance with these Rules shall be in the sole discretion of the Agency and/or the Commissioner; provided, however, that the Agency and/or the Commissioner shall comply in all respects with applicable Laws.
(c) Statutory Authority Not Limited. Nothing in these Rules shall be deemed to prevent the Agency from exercising such greater or additional rights, remedies, privileges, powers, and authority as shall be provided by Law.
(d) Rights Not Conferred. These Rules are not intended to confer rights or benefits upon the general public or upon any individual or entity. Nothing in these Rules shall be deemed to confer any rights or benefits whatsoever upon any party which are in addition to any rights deriving from applicable Laws or written contracts with the Agency.
(e) No Legal Obligation. At any time prior to the execution of a Binding Agreement, the Agency may withdraw all or any portion of a Site from a Project, change the Agency Activities and Project Activities contemplated in connection with a Project, change the Sponsor selection process for a Project, terminate negotiations with an Applicant or Selected Applicant, commence negotiations with one or more other Applicant(s) or Selected Applicant(s), or take any other action deemed by the Agency to be necessary or appropriate. No selection process, or part thereof or actions in connection therewith, shall represent or result in 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 or Selected Applicant at any time, including, but not limited to, the cost of responding to a selection process. An Authorization Letter or Negotiation Letter, or any written or oral communication with respect to the selection of a potential Sponsor or the ensuing negotiations, is not a contract or agreement and shall not create any rights on the part of the Applicant or Selected Applicant, including, without limitation, rights of enforcement, equity or reimbursement. No such contract or agreement shall exist, and no such rights shall be created, until the City and the Sponsor enter into a Binding Agreement. Approval of a Project and any agreements in connection with such Project by the Governing Body, if applicable, and the Law Department shall not obligate the Agency to proceed with the Project or with the execution of such agreements.
(f) Technical Violations. Technical violations of these Rules shall not invalidate the selection of any Site, the selection of any Sponsor, or any other Agency Activity taken pursuant to these Rules, nor shall such technical violations give rise to any rights, claims, or causes of action in favor of members of the general public or potential sponsors.
(g) Compliance With Laws. All Agency Activities by the Agency pursuant to these Rules shall be made in accordance with applicable Laws. Each Site and Sponsor selected for any Project pursuant to these Rules shall meet the eligibility criteria of the Laws which authorize the Agency to undertake the Agency Activities necessary or incident to the performance of such Project.
(h) Fees. The Agency shall promulgate by rule the amount of any fee provided for in these Rules.
(i) Waivers. Where literal application of one or more of the provisions of these Rules would result in unnecessary hardship, would involve practical difficulties, or would constitute an unreasonable limitation beyond the intent and purpose of these Rules, the Commissioner may at any time waive in writing such provision or provisions of these Rules with respect to any Project. Such writing shall state the reasons for such waiver.
(j) Singular and Plural. With respect to any of the terms used in these Rules, the singular shall be deemed to include the plural and the plural shall be deemed to include the singular, unless the context requires otherwise.
(k) Effective Date. These Rules shall be deemed effective as of June 29, 1997.