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.
(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.
(b) Program Description. Under the Program, Buildings are net leased to Tenant Associations and subsequently sold to HDFCs that will thereafter be solely responsible for the operation of such Buildings.
(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.
(b) Application procedure; selection requirements. If HPD has determined that a Building is eligible for the Program and its assignment to the Program is in the best interests of the City, a Tenant Association may apply for selection for the Program by complying with the following standards:
(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 Association.
(c) Notice of approval. If the application has been approved, HPD will notify the Tenant Association of such approval in a written notice by regular mail to the president of the Tenant Association. The notice of approval shall include any notice of an Intake Rent Increase, which shall be implemented thirty (30) days thereafter in accordance with subdivision (f) of this section, and HPD shall send a copy to the Tenants by regular mail. If the application has been rejected, HPD will notify the president of the Tenant Association of such rejection and the reason therefor by regular mail.
(d) Post-acceptance activities. Upon acceptance of the application and prior to execution of the Tenant Interim Lease, the Tenant Association must:
(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.
(e) Execution of the Tenant Interim Lease. After HPD determines that the Tenant Association has complied with all of the requirements set forth in 28 RCNY § 34-03(d), the Tenant Association must sign the Tenant Interim Lease and implement the Intake Rent Increase set by HPD.
(f) Intake Rent Increases.
(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.
(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.
(b) Residential vacancies. If any dwelling unit in the Building is or becomes vacant, the Tenant Association will not sign a lease for such vacant dwelling unit, or allow such vacant dwelling unit to become occupied, without the prior written approval of HPD.
(c) Tenant Association. The Tenant Association will comply with the terms of these Rules, the Tenant Interim Lease, and all HPD directives with regard to the leasing or occupancy of vacant dwelling units. Such HPD directives may include, without limitation,
(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.
(d) Non-residential vacancies. If any non-residential unit in the Building is or becomes vacant, the Tenant Association will not sign a lease for such vacant non-residential unit, or allow such vacant non-residential unit to become occupied, without the prior written approval of HPD. The Tenant Association will comply with the terms of these Rules, the Tenant Interim Lease, and all HPD directives with regard to the leasing or occupancy of vacant non-residential units. Such HPD directives may include, without limitation,
(i) procedures and criteria for the selection of new non-residential tenants, and
(ii) rents to be charged.
(e) Collection of arrears. At such time as a Tenant is two months or more in arrears on the payment of rent to the Tenant Association, the Tenant Association may commence a proceeding for such rent arrears and/or for possession of the dwelling unit.
(f) Legal proceedings. The Tenant Association may not commence legal proceedings against Tenants without the prior written approval of HPD, except as specified in 28 RCNY § 34-04(e) or in the Tenant Interim Lease. For non-residential tenants, legal proceedings may be commenced by the Tenant Association without prior written approval of HPD upon any default in the lease.
(g) Tenant complaints. The Tenant Association will respond in a timely manner to all Tenant complaints.
(h) Interim rent increases. During the term of the Tenant Interim Lease, one or more rent increases may be necessary to reflect the actual costs of operating a Building. HPD will from time to time establish an interim rent roll for a Building in the Program reflecting expenses of maintaining and operating the Building.
(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.
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