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(a) Disposition rent increase.
(1) Prior to disposition, HPD will prepare a statement of the projected cost of maintaining and operating the Building in the first year following Disposition, which statement will reflect,
(i) actual expenditures, adjusted for inflation on an individual or compounded yearly basis, for the maintenance and operation of the Building prior to Disposition (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),
(ii) real estate taxes,
(iii) water and sewer charges,
(iv) contingency reserves,
(v) reserves for vacancies and uncollectible debts, and
(vi) 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 first year following disposition, as reflected in such statement, and shall implement a Disposition Rent Increase based upon such calculation.
(3) HPD will issue a disposition rent roll to the Tenant Association and will notify the Tenants of such Disposition 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 Disposition Rent Increase until the effective date of the Disposition 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 Disposition Rent Increase, and
(iii) HPD will consider any timely comments received from Tenants.
(b) Disposition. HPD will not convey a Building to an HDFC unless:
(1) the Tenant Association has, in the judgment of HPD, satisfactorily managed the Building during the term of the Tenant Interim Lease; and
(2) Tenants of at least eighty percent (80%) of the Occupied Units have signed subscription agreements to purchase the shares in the HDFC attributable to their dwelling units; and
(3) HPD has notified the Tenants of the Disposition Rent Increase; and
(4) if required by HPD, the HDFC has executed a regulatory agreement which may contain, without limitation, restrictions on renting, subletting, and sales of units, and requirements for transfer fees, primary residency, and establishment of reserve accounts to be serviced by HPD for a fee equal to 0.25% of the average monthly balance in the reserve account over the previous 12 month period.
(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, assist Tenants in completing rental assistance applications, and forward all necessary documentation to the appropriate authority for final review and processing.
(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 with the authority responsible for determining a Tenant's eligibility for rental assistance, 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 Tenant Association and/or HDFC of all applicants for rental assistance and shall forward to the Tenant Association and/or HDFC 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 Tenant, the Tenant Association and/or HDFC, 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 determination of the rental assistance application;
(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 amount which s(he) would pay on a monthly basis if the rental assistance application is approved, or the rent charged prior to implementation of the rent increase, whichever is greater.
(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 Tenant Association and/or HDFC; 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.
HPD may remove a Building from the program and terminate the Tenant Interim Lease with respect to such Building if HPD determines that:
(a) there is a default under the Tenant Interim Lease; or
(b) the management of the Building has failed to comply with generally accepted standards of management; or
(c) the Tenant Association has an inadequate record in regard to rent collections; or
(d) the Tenant Association has an inadequate record in regard to timely payment of bills; or
(e) the Tenant Association has failed to comply with HPD reporting requirements as set forth in the Tenant Interim Lease; or
(f) the Tenant Association has failed to comply with HPD directives; or
(g) HPD determines that the Building no longer meets the eligibility requirements of the program.
(h) for any other reason, it is no longer in the best interests of the City to keep the Building in the program.
(a) HPD discretion. All determinations to be made by HPD in accordance with these Rules will be in the sole discretion of HPD.
(b) Statutory authority not limited. Nothing in these Rules will be deemed to limit HPD's authority to act pursuant to applicable laws.
(c) Method of notification. Unless otherwise provided herein, notices to Tenants will be in English and Spanish, and will either be posted in a common area of the Building and affixed to or placed under each dwelling unit door of the Building, or mailed to every occupied dwelling unit in the Building, as determined by HPD.
(d) Technical violations. Provided that there has been a good faith effort to comply with these Rules, technical violations of these Rules will not invalidate any action taken pursuant to these Rules, nor will such technical violations give rise to any rights, claims, or causes of action. HPD, upon good cause shown, may alter the timing or sequence of the actions described in these Rules, provided all affected parties are given reasonable notice.