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(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.
(a) Owners of Homeownership Affordable Housing Units must occupy such Homeownership Affordable Housing Units as their primary residences, as determined by the Administering Agent, in accordance with DHCR's criteria for primary residence occupancy for rental units in Rent Stabilization.
(b) The Administering Agent will mail an owner occupancy letter to each Homeowner on an annual basis and such Homeowner shall annually certify under penalty of perjury the Homeowner's use of such Homeownership Affordable Housing Unit as his or her primary residence by signing and returning to the Administering Agent, within ten (10) business days from receipt, a notarized copy of such owner occupancy letter, with any supporting documentation.
(c) HPD may conduct audits of Homeownership Affordable Housing Units to ensure that all such units are being used as the primary residences of their respective Homeowners.
Notwithstanding the provisions of Section 23-962 of the Zoning Resolution, in a Generating Site that is a Partial Inclusionary Building, the Administering Agent may approve a Homeowner's request to sublet only if such subletting meets the subletting requirements in effect for all units at such Generating Site.
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