Loading...
As used in this chapter, the following terms shall have the following meanings. Capitalized terms not specifically defined in this chapter shall have the meanings set forth in the Zoning Resolution.
Administering Agent Agreement. "Administering Agent Agreement" means an agreement between HPD and an Administering Agent concerning the rights, responsibilities and compensation of such Administering Agent.
Administering Agent Reserve Account. "Administering Agent Reserve Account" means an account that is separate from a Building's reserve accounts and is held as determined by HPD, and which shall be used, with HPD approval, to pay the Building's Administering Agent for services rendered in accordance with the Program.
Annual Household Income. "Annual Household Income" means the total income as specified by HUD in 24 C.F.R. § 5.609, including all net income from Assets with a cash value in excess of $5,000, to be received by the Household, from all sources for the twelve month period prior to the Income Qualification Date.
Application Deadline. "Application Deadline" means the date by which HPD must receive an application to purchase a Homeownership Affordable Housing Unit.
Appreciation Index At Resale. "Appreciation Index At Resale" means the quotient of the Appreciation Index on the Contract Date and the Appreciation Index on the previous Sale Date.
Asset. "Asset" means property real or personal, tangible or intangible, which may produce financial gain.
Assisted Affordable Unit. "Assisted Affordable Unit" has the meaning set forth for "Affordable Housing Unit" in Section 421-a(16)(a)(xv) of the Real Property Tax Law.
Capital Reserve Account. "Capital Reserve Account" means an account that is separate from a Building's capital reserve account(s) and held as determined by HPD and shall be used, with HPD approval, to pay for all or part of a Homeownership Affordable Housing Unit's proportionate share of such Building's capital expenses.
Commissioner. "Commissioner" means the Commissioner of HPD or his or her designee.
Common Expenses. "Common Expenses" means and include for a Condominium Association, all expenses of operation thereof and all sums designated common expenses in accordance with Article 9-B, Section 339-e of the Real Property Law and for a Cooperative Corporation all expenses of operation thereof and all sums designated common expenses pursuant to the provisions of the by-laws and proprietary lease for such Cooperative Corporation.
Community Board. "Community Board" means a local district advisory board created pursuant to Section 2800 of the New York City Charter that, in part, consults, assists and advises legislative bodies or borough presidents with respect to any matter relating to the welfare of the district and its residents.
Contract Date. "Contract Date" means the date a contract to purchase a Homeownership Affordable Housing Unit is executed.
Council Member. "Council Member" means an elected member of the New York City Council.
CPI. "CPI" means the Consumer Price Index for all urban consumers, as defined by the United States Bureau of Labor Statistics, for the twelve months ended on June 30th.
Department of Finance or DOF. "Department of Finance" or "DOF" means the Department of Finance of the City of New York or any successor agency or department thereto.
DHCR. "DHCR" means the Division of Housing and Community Renewal of the State of New York or any successor agency.
Family Member. "Family Member" has the meaning set forth by DHCR in 9 NYCRR § 2520.6.
First Time Homebuyer Preference. "First Time Homebuyer Preference" means a priority to purchase a Homeownership Affordable Housing Unit which is provided to an Eligible Buyer who is purchasing a Dwelling Unit for the first time.
Flip Tax. "Flip Tax" means 7% of net profits from the sale of a Homeownership Affordable Housing Unit.
HAP Contract. "HAP Contract" means any project-based Section 8 housing assistance payments contract, as may be amended or renewed, that covers all rental Affordable Housing Units in a Building.
HAP Contract Rents. "HAP Contract Rents" means the rent approved by HUD for a Dwelling Unit in an MIH Site with a HAP Contract.
HDC. "HDC" means the New York City Housing Development Corporation.
HHF. "HHF" means the Household Factor established by HPD, based on the family size adjustment percentages established by HUD.
Homeless Regulatory Agreement. "Homeless Regulatory Agreement" means an agreement with a federal, state or local governmental agency or instrumentality requiring a number or percentage of Dwelling Units to be rented to homeless households at initial occupancy and/or upon re-rental at vacancy.
HUD. "HUD" means the United States Department of Housing and Urban Development or any successor agency.
Income Marketing Band. "Income Marketing Band" means that, except as permitted in the Zoning Resolution, the Monthly Housing Costs of a particular Homeownership Affordable Housing Unit represents not less than 25% and not more than 35% of such Household's Annual Household Income.
Income Qualification Date. "Income Qualification Date" means the date upon which the Administering Agent verifies that a potential Homeowner's Annual Household Income complies with the Eligible Buyer requirements for a particular Homeownership Affordable Housing Unit.
Internal Transfer Preference. "Internal Transfer Preference" means a priority to purchase a Homeownership Affordable Housing Unit which is provided to an Eligible Buyer who (i) already owns a Homeownership Affordable Housing Unit in the same Building or in the development containing such Building, and (ii) agrees to sell his or her existing Homeownership Affordable Housing Unit on or before the date upon which he or she acquires the new Homeownership Affordable Housing Unit.
Minimum Quality Standards. "Minimum Quality Standards" means livability standards that are in compliance with 24 C.F.R. § 982.401 or any superseding regulations established by HUD.
Monthly Housing Costs. "Monthly Housing Costs" means, for a Household, the sum of Monthly Fees, monthly utility allowances, Mortgage Payments and monthly property taxes, if applicable.
Operating Reserve Account. "Operating Reserve Account" means an account that is separate from a Building's operating account(s) and is held as determined by HPD, and which shall be used, with HPD approval, to pay for all or part of a Homeownership Affordable Housing Unit's proportionate share of such Building's Common Expenses, in the form of Monthly Fees.
Partial Inclusionary Building. "Partial Inclusionary Building" means a Building that consists of both Affordable Housing and Dwelling Units that are not restricted, in accordance with the Program, to occupancy by Low Income Households, Moderate Income Households or Middle Income Households.
Prevailing Interest Rate. "Prevailing Interest Rate" means the single family mortgage rate for a thirty-year fixed rate loan established by the Federal Home Loan Mortgage Association and the Federal National Mortgage Association that is quoted, for Sale or Resale, in the month that the Homeownership Affordable Housing Unit is marketed for Sale or Resale.
Program. "Program" means the Zoning Resolution, Regulatory Agreement and this Chapter.
Public Funding. "Public Funding" has the meaning set forth in Section 23-90 of the Zoning Resolution, except that, in accordance with the authority granted therein with respect to these guidelines, for Regulatory Agreements executed on or after December 1, 2011, "Public Funding" shall not include an exemption of real property taxes pursuant to Article II of the Private Housing Finance Law.
Rent Guidelines Board. "Rent Guidelines Board" means the New York City Rent Guidelines Board established pursuant to Chapter 4 of Title 26 of the New York City Administrative Code.
Reserve Accounts. "Reserve Accounts" means, for Generating Sites containing at least one Homeownership Affordable Housing Unit, an Operating Reserve Account, a Capital Reserve Account and an Administering Agent Reserve Account.
Section 8 assistance. "Section 8 assistance" means a federal rental subsidy pursuant to the Section 8 project-based rental assistance program, or any successor programs, under the United States Housing Act of 1937, as amended.
Successor. "Successor" means a Family Member that inherits, by either intestate succession or testamentary disposition, a Homeownership Affordable Housing Unit.
Zoning Resolution. "Zoning Resolution" means the Zoning Resolution of the City of New York.
(Amended City Record 6/19/2017, eff. 7/19/2017; amended City Record 9/13/2017, eff. 10/13/2017; amended City Record 11/19/2021, eff. 12/19/2021)
(a) General Provisions For Rental and Homeownership Affordable Housing.
(1) By the close of financing for the Generating Site, the owner of the Affordable Housing shall enter into an agreement with an Administering Agent, for such Administering Agent to perform the duties as specified in the Program. At no time during the term of the Regulatory Agreement shall the Affordable Housing be without an Administering Agent.
(2) All affidavits from the Administering Agent shall be submitted to HPD by March 31st of the year in which such affidavits are due.
(3) Administering Agents shall retain records that form the basis of any affidavit submitted to HPD for the duration of the homeowner's ownership of an Affordable Housing Unit, plus six (6) years after such homeowner no longer owns such Affordable Housing Unit.
(b) Administering Agent Selection Process For Rental and Homeownership Affordable Housing. Administering Agents for Affordable Housing will be selected by the owner and must be approved by HPD based on criteria including, but not limited to:
(1) Sponsor Review (i.e., a background investigation of the principals of the Administering Agent);
(2) Determination that the Administering Agent is a not-for-profit;
(3) Implementation by the Administering Agent of satisfactory procedures for relocating renters, when applicable; and
(4) Determination that the Administering Agent is not an owner, affiliate of owner or managing agent of the Generating Site, unless HPD determines that the Generating Site is participating in a federal, state or local program that has procedures for performing paragraphs one through three of this subdivision or the owner and any such managing agent or affiliate are not-for-profit entities with adequate safeguards to ensure that such entities comply with the Program.
(c) Renting or Selling Homeownership Affordable Housing.
(1) Initial rental, re-rental and Sale of Affordable Housing must proceed in accordance with HPD's marketing guidelines.
(2) The following procedures shall apply to the Resale of Homeownership Affordable Housing:
(i) Homeowner Notice of Intent to Sell. A Homeowner, using an HPD-approved notice of intent to sell form, shall notify the applicable Administering Agent of the intent to sell his and/or her Homeownership Affordable Housing Unit.
(ii) Administering Agent Notification to HPD of Homeowner's Intent to Sell a Homeownership Affordable Housing Unit. Within fourteen (14) business days from receipt of an HPD-approved notice of intent to sell form from a Homeowner, the Administering Agent must, using an HPD-approved form, give HPD information concerning:
(A) the date upon which the Administering Agent received the Homeowner's notice of intent to sell form;
(B) the address of the Homeownership Affordable Housing Unit and the Community Board(s) in which such unit is located;
(C) the unit size of the Homeownership Affordable Housing Unit (including square footage and number of rooms);
(D) the unit type – cooperative or condominium – of the Homeownership Affordable Housing Unit;
(E) the last Sale Date and the price at which the Homeownership Affordable Housing Unit was sold on such date;
(F) the estimated Monthly Housing Costs for the Homeownership Affordable Housing Unit;
(G) the Maximum Resale Price of the Homeownership Affordable Housing Unit;
(H) the Down Payment required to purchase the Homeownership Affordable Housing Unit;
(I) the Income Marketing Band for the Homeownership Affordable Housing Unit; and
(J) the Flip Tax applicable to the Homeownership Affordable Housing Unit.
(iii) Marketing of the Homeownership Affordable Housing Unit.
(A) Listing the Homeownership Affordable Housing Unit. Within fourteen (14) business days from its receipt of the notice of intent to sell from a Homeowner, the Administering Agent must list the availability of such Homeownership Affordable Housing Unit for sale on the Administering Agent's website and send a copy of such listing to the Community Board(s) in which the Homeownership Affordable Housing Unit is located and to the Council Member(s) that represent(s) the council district(s) in which the Homeownership Affordable Housing Unit is located. Such listing must include:
(1) the address of the Homeownership Affordable Housing Unit and Community Board(s) in which such unit is located;
(2) the unit size of the Homeownership Affordable Housing Unit (including square footage and number of rooms);
(3) the unit type – cooperative or condominium – of the Homeownership Affordable Housing Unit;
(4) the last Sale Date and the price at which the Homeownership Affordable Housing Unit was sold on such date;
(5) the estimated Monthly Housing Costs for the Homeownership Affordable Housing Unit;
(6) the Maximum Resale Price of the Homeownership Affordable Housing Unit;
(7) the Down Payment required to purchase the Homeownership Affordable Housing Unit;
(8) the Income Marketing Band for the Homeownership Affordable Housing Unit;
(9) the Flip Tax applicable to the Homeownership Affordable Housing Unit;
(10) an HPD-approved application form for potential buyers, on which potential buyers are directed to return such application form with supporting documentation to HPD and potential buyers are informed that the Administering Agent is prohibited from charging an application fee; and
(11) the Application Deadline.
(iv) The Lottery Process. HPD will create a list of potential buyers randomly-ordered from the applications received on or before the Application Deadline and will forward such list to the Administering Agent. The Administering Agent will select Eligible Buyers, beginning with the first name on the potential buyer list. The first potential buyer who meets the requirements of the Program will be offered an opportunity to: (A) at least two weeks prior to the closing date for the Homeownership Affordable Housing Unit, inspect the Homeownership Affordable Housing Unit, and (B) purchase the Homeownership Affordable Housing Unit.
(v) Closings. Homeowners shall enter into a performance or enforcement mortgage agreement with HPD and shall agree to all Program restrictions concerning the ownership and Sale or Resale of the Homeownership Affordable Housing Unit.
(vi) Homeownership Education. The Administering Agent must either provide HPD approved classes for homebuyers concerning the responsibilities attending Homeownership or direct potential buyers to HPD-approved providers of such classes.
(a) The Maximum Resale Price for a Homeownership Affordable Housing Unit is the lesser of the Appreciated Price or Appreciation Cap.
(b) Except as otherwise provided in Section 23-962(f) of the Zoning Resolution, the Appreciated Price is calculated by multiplying the Resale price of a Homeownership Affordable Housing Unit on the previous Sale Date by the Appreciation Index At Resale.
(c) Only full calendar years from the previous Sale Date will be considered in calculating the Appreciated Price of a Homeownership Affordable Housing Unit. Notwithstanding the foregoing, if a Homeowner submits a notice of intent to sell form to the Administering Agent on a date that is no more than three (3) months prior to the anniversary of the previous Sale Date, a full calendar year may be utilized in calculating the Appreciation Index At Resale for such Affordable Housing Unit's Appreciated Price.
(Amended City Record 11/19/2021, eff. 12/19/2021)
To qualify as a first time homebuyer, no member of the qualifying Household shall have owned any interest in a home, including any interest in a Cooperative Corporation or a residential condominium unit, for the five (5) year period immediately prior to the Application Deadline.
Prior to qualification as an Eligible Buyer, each applicant for a Homeownership Affordable Housing Unit shall attend a first-time homebuyer course given by a provider that is approved by HPD, and must provide evidence of completion of such course to the Administering Agent. Approved providers of first-time homebuyer courses are listed on HPD's web site.
In addition to the preference categories stated in HPD's marketing guidelines, Homeownership Affordable Housing Units shall be marketed in accordance with the Internal Transfer Preference and the First Time Homebuyer Preference. The Internal Transfer Preference shall (i) take priority over the First Time Homebuyer Preference, and (ii) only be made available for the purpose of replacing an existing Homeowner's Homeownership Affordable Housing Unit, and not for the purpose of acquiring an additional Homeownership Affordable Housing Unit, whether for occupancy by the Eligible Buyer, his or her Household members, non-resident Family Members, or any other person.
Loading...