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(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.
A Homeowner may (i) transfer title to a Homeownership Affordable Housing Unit upon Resale, or (ii) with the prior written approval of the Administering Agent, modify title to a Homeownership Affordable Housing Unit in order to add or delete a person from title due to marriage, domestic partnership, divorce, death or succession, provided that such Homeowner does not receive anything of value in connection with such modification of title, or (iii) with the prior written approval of the Administering Agent, modify title to a Homeownership Affordable Housing Unit for any other purpose approved in writing by HPD, provided that such Homeowner does not receive anything of value in connection with such modification of title. Before approving any title modifications, the Administering Agent must receive a written notarized notification from the Homeowner of his or her intent to modify title, along with documentation supporting any such proposed modification and an affirmation that no consideration in connection with such proposed modification has been or will be received.
(a) A Successor who qualifies as an Eligible Buyer may own a Homeownership Affordable Housing Unit in accordance with the requirements of the Program.
(b) If a Successor either: (1) qualifies as an Eligible Buyer but does not want to own the Homeownership Affordable Housing Unit, or (2) does not qualify as an Eligible Buyer, the Homeownership Affordable Housing Unit must be sold to another Eligible Buyer and the net proceeds from such sale shall be given to such Successor.
(c) The Administering Agent shall determine whether a Successor is an Eligible Buyer.
(d) Within three (3) months of inheriting a Homeownership Affordable Housing Unit, the Successor who wants to qualify as an Eligible Buyer must provide the Administering Agent with a valid death certificate, a valid will, if any, and other such proof of succession and the Successor's Annual Household Income.
(e) If a Successor is not determined on a date on or before two years from a Homeowner's death, the Homeownership Affordable Housing Unit shall be sold to an Eligible Buyer and the proceeds deposited in the estate of the deceased Homeowner.
(f) A Successor need not have occupied the Homeownership Affordable Housing Unit with the Homeowner. Notwithstanding the foregoing, a person who had been occupying the Homeownership Affordable Housing Unit with the Homeowner and who claims to be a Successor may remain in occupancy in the Homeownership Affordable Housing Unit, so long as all obligations, including Monthly Fees, are current, for a period that ends on the earlier to occur of: (1) a date that is two years from the death of the Homeowner, or (2) the date upon which a Successor is determined.
(g) Once a Successor has qualified as an Eligible Buyer, the Successor shall, under the Administering Agent's supervision, assume the Homeowner's interest in and obligations towards the Homeownership Affordable Housing Unit under the terms of the legal documents pertaining to such unit that were executed at the previous Sale Date. All loan documents must also be amended, at the Successor's expense, to reflect any changes to the title documents for the Homeownership Affordable Housing Unit.
(a) Homeowners may refinance existing Mortgages, subject to the following limitations:
(1) the value of the new loan must not exceed ninety percent (90%) of the Maximum Resale Price, calculated as of the date that a Homeowner notifies the Administering Agent of an intent to refinance;
(2) the new loan must be at a fixed interest rate;
(3) the new loan must be from an approved institutional lender; and
(4) the Administering Agent must approve such refinancing.
(b) If a proposed new loan will increase the amount of Mortgage Payments, the Administering Agent shall require the Homeowner to show that the Monthly Housing Costs are affordable to such Homeowner in accordance with the Program.
(c) A Homeowner that seeks to refinance an existing Mortgage must first submit an HPD-approved notice of intent to refinance form to the Administering Agent for approval.
(d) Within seven (7) business days from receipt of a notice of intent to refinance form, the Administering Agent must notify the Homeowner of the Maximum Resale Price and the permissible Mortgage, which is ninety percent (90%) of the Maximum Resale Price, as calculated pursuant to paragraph one of subdivision a of this section.
(e) Before the Homeowner accepts any refinancing product, such Homeowner must obtain the Administering Agent's approval of the refinancing product. The Administering Agent will review the refinancing product after a Homeowner has submitted, to the Administering Agent, a request for approval of the refinancing product form, along with information concerning the term of the refinancing product, the applicable interest rate and the lender.
(f) Within five (5) business days of receipt of a request for approval of a refinancing product form, the Administering Agent must approve or disapprove the proposed refinancing product.
(g) Prior to execution, all loan documents for the refinancing of a Homeownership Affordable Housing Unit must be reviewed by the Administering Agent for compliance with the above requirements. The Administering Agent shall review and make a determination as to whether such loan documents comply with the requirements of this section within ten (10) business days of receipt of such loan documents, and the Administering Agent shall inform the Homeowner and HPD of such determination within fourteen (14) business days of receipt of the loan documents. All loans must be subordinated to all Program requirements.
(a) Each Homeowner shall be obligated to maintain each Homeownership Affordable Housing Unit in accordance with Minimum Quality Standards and, to the extent required by law, the New York City Building Code and the New York City Housing Maintenance Code. Prior to any Resale, HPD or its designee shall inspect the Homeownership Affordable Housing Unit and shall:
(1) offer the Homeowner an opportunity before the Sale Date, to remedy any condition that violates such Minimum Quality Standards, or
(2) require retention of a portion of the Resale proceeds equal to the repair cost estimates established by HPD for remedying such condition(s).
(b) The Administering Agent shall ensure that a Homeownership Affordable Housing Unit meets the Minimum Quality Standards prior to its occupancy by any new Homeowner.
(a) Prior to Initial Occupancy, HPD must approve the Monthly Fees charged to Homeowners. The total amount of increases in Monthly Fees charged to a Homeownership Affordable Housing Unit over a twelve month period, shall be the lesser of:
(1) the increase in Monthly Fees required to cover Common Expenses for such twelve month period; and
(2) a percentage increase in Monthly Fees equal to the percentage increase in rents approved by the Rent Guidelines Board for two (2) year rent stabilized leases, for such twelve month period.
(b) The combined cost of Monthly Fees and special assessments charged to a Homeownership Affordable Housing Unit in any given twelve month period shall not exceed thirty-five percent (35%) of the Homeowner's Annual Income.
(c) In Partial Inclusionary Buildings, increases in Monthly Fees and/or the levy of special assessments may be charged to Homeownership Affordable Housing Units only if increases in Monthly Fees and/or the levy of special assessments are simultaneously charged to all other Dwelling Units in the Building, for the same purposes as such Monthly Fees and special assessments are charged to such Homeownership Affordable Housing Units.
(a) General. Each Homeownership Generating Site must have Reserve Accounts. Reserve Accounts will be held as blocked reserves at HDC unless HPD permits such accounts to be held in accordance with requirements of another City, State, or Federal housing program.
(b) Funding Reserve Accounts.
(1) Operating Reserve Accounts for Homeownership Generating Sites must be funded by the date of issuance of the Completion Notice in an amount equal to at least six (6) months of projected operating costs for the Homeownership Affordable Housing Units.
(2) Capital Reserve Accounts for Homeownership Generating Sites must be funded by the date of issuance of the Completion Notice in the amount of two dollars and twenty-five cents ($2.25) per square foot of Homeownership Affordable Housing.
(3) Administering Agent Reserve Accounts for Homeownership Generating Sites must be funded by the date of the Completion Notice in the following manner:
(i) An initial payment by the developer of the Affordable Housing as specified in the Regulatory Agreement;
(ii) A surcharge, to be to be applied as part of the applicable Monthly Fees for Homeownership Affordable Housing Units; and
(iii) A Flip Tax imposed upon the seller of a Homeownership Affordable Housing Unit at Resale.
(c) Using Reserve Funds.
(1) Operating Reserve Accounts.
(i) In Partial Inclusionary Buildings, when permitted increases to Monthly Fees charged to Homeownership Affordable Housing Units do not cover their proportionate share of the Homeownership Generating Site's operating costs, requests for drawdowns from the Operating Reserve Account may be made to HPD to cover the documented increases in the following costs if they are part of Common Expenses: fuel, electricity, water, sewer, Building staff salaries and taxes.
(ii) In Generating Sites that consist entirely of Affordable Housing, when permitted increases to Monthly Fees charged to Homeownership Affordable Housing Units do not cover their proportionate share of the Homeownership Generating Site's Common Expenses, funds from the Operating Reserve Account may be used to cover operating deficits.
(2) Capital Reserve Accounts.
(i) In Partial Inclusionary Buildings, funds from the Capital Reserve Account may be used, with HPD approval, to pay for all or part of the Homeownership Affordable Housing Units' proportionate share of the Generating Site's Building-wide special assessments for the repair or replacement of Capital Elements.
(ii) In Generating Sites that consist entirely of Affordable Housing, funds from the Capital Reserve Account may be used, with HPD approval, to pay for all or part of the repairs or replacements of Capital Elements in the Generating Site.
(iii) In addition, HPD may approve the use of funds from the Capital Reserve Account to pay for repairs to Homeownership Affordable Housing Units.
(3) Administering Agent Reserve Accounts. HPD will use Administering Agent Reserve Accounts to pay Administering Agents for services rendered in accordance with the Program and the Administering Agent Agreement.
(d) Drawdown Process for Reserve Accounts.
(1) Operating and Capital Reserve Accounts. With the authorization of the Condominium Association or the board of the Cooperative Corporation, the Administering Agent will submit to HPD a request for a drawdown, with supporting information. If HPD approves the request, HPD will submit the request to HDC for a drawdown from the appropriate Reserve Accounts.
(2) Administering Agent Reserve Account. In order to receive funds from the Administering Agent Reserve Account, a Homeownership Generating Site must submit payment requests to HPD, along with proof of Administering Agent services rendered. If the payment request is satisfactory to HPD, HPD will request a drawdown from the Administering Agent Reserve Account for payment to the Administering Agent.
(a) In order to determine the amount of Floor Area of an Affordable Housing Unit in a Generating Site, the square footage within the inside face of the walls enclosing such Affordable Housing Unit, (which is all floor surfaces within the Affordable Housing Unit, including closets, and the partitions that separate rooms that are within the same Affordable Housing Unit), shall be measured. Such measurement must exclude (i) the thickness of exterior walls, (ii) the thickness of partitions separating such Affordable Housing Unit from any other Dwelling Units, Rooming Units or other spaces, and (iii) the portions of such Affordable Housing Unit that do not qualify as Floor Area.
(b) Floor Area of a Dwelling Unit or Rooming Unit in a Generating Site that is not an Affordable Housing Unit, other than any Superintendent's Unit, must be measured in the same manner.
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