§ 1-02 Definitions.
RCNY § 1-02
As used in this chapter, the following terms shall mean: Agency. The term "Agency" shall mean the Department of Housing Preservation and Development of the City of New York or the office or department charged with the administration of the program. Cost of acquisition. The term "cost of acquisition" shall mean the sum of (1) cash payments made to acquire the property to be rehabilitated or improved and (2) the net cost of satisfying the bona fide mortgages, liens (including real estate taxes due and owing to the City of New York) and other encumbrances on the property. The cost of acquisition shall in no event exceed the appraised value of the property prior to rehabilitation. Development cost. The term "development cost" shall comprehend those items included under such heading in 28 RCNY § 1-05 (Allowable Rehabilitation and Improvement Cost). Maximum mortgage amount. The term "maximum mortgage amount" shall mean the lesser of the following: (1) An amount which, together with all prior liens permitted under 28 RCNY § 1-08(c), shall not exceed 90 percent of the value of the property after completion of rehabilitation; (2) Where the property is owned free and clear and was acquired more than one year before submission of the loan application, development cost; (3) Where the property was acquired more than one year before submission of the loan application and is encumbered, an amount necessary to satisfy such encumbrances (not to exceed the appraised value of the property prior to rehabilitation) plus development cost, provided that the loan shall not exceed two times the development cost; (4) Where the property is to be acquired or was acquired less than one year before submission of the loan application, the cost of acquisition plus development cost. Persons or families of low income. The term "persons or families of low income" shall mean and include, pursuant to § 401 subdivision 3 of Article VIII of the Private Housing Finance Law, owner-occupants, persons and families in occupancy immediately prior to the date the loan is granted, and persons or families whose probable aggregate annual income during the period of occupancy does not exceed six times the rental (including the value or cost to them of heat, light, water and cooking fuel) of the apartment occupied by such persons or families except in the case of persons or families with three or more dependents, where such ratio shall not exceed seven to one, as this definition may be further expanded or limited by 28 RCNY § 1-12 (Management Supervisory Requirements). Value of the property after completion of rehabilitation. The term "value of the property after completion of rehabilitation" shall mean appraised value prior to rehabilitation plus development cost, provided that the estimated revenues, including any subsidies, will be sufficient to support the estimated debt service and operating expenses.
