§ 1-03 Eligibility and General Conditions.
RCNY § 1-03
(a)Applicants for loans and any prior lienors must covenant in writing, that so long as any part of such loan remains unpaid, or any tax exemption-tax abatement granted as a result of the installations, alterations, improvements or rehabilitation remains in effect, or for a period of at least ten years from the occupancy date, whichever is the later, the following conditions will govern: (1) Apartments in such multiple dwelling shall be available solely for persons or families of low income as herein defined and as set forth below in subdivision (c) and in 28 RCNY § 1-12 (Management Supervisory Requirements).
(2)Apartments shall be available strictly in the order of priority set forth in 28 RCNY § 1-12(d).
(3)No charge or rental for apartments in such multiple dwelling shall be made or charged in excess of the maximum rentals prescribed by the Department of Housing Preservation and Development in accordance with the New York City Rent and Rehabilitation Law and the regulations promulgated thereunder.
(4)At all times during the life of the mortgage, the owner shall keep and maintain the rehabilitated building and all fixtures and articles of personal property now or hereafter used in the building in good condition, order and repair. Failure on the part of the owner to comply with this provision or make repairs when requested by the Agency shall result in the Agency, at its option, employing workmen to make such repairs at the owner's expense or declaring the unpaid principal balance of the mortgage, with interest, immediately due and payable.
(5)Any persons owning, operating or managing such multiple dwelling, during or after rehabilitation, shall comply with the laws under which a loan is made and the Rules and Regulations now or hereafter adopted by the Agency, including Equal Opportunity Regulations.
(6)Any persons owning, operating or managing such multiple dwelling shall permit the authorized officers, employees, agents or inspectors of the Agency to enter in or upon the mortgaged premises and inspect same at all reasonable hours.
(7)The Agency, its officers, employees, agents or inspectors shall have full power to investigate and order the owner of said multiple dwelling or his agents to furnish such reports and information as it may require concerning the planning and construction of the installation, rehabilitation or improvement and the management of said multiple dwelling and shall also have full power to audit the books and records of such owner with respect to such matters. Owners of buildings rehabilitated under this program must submit reports as specified in 28 RCNY § 1-12 (Management Supervisory Requirements).
(8)The foregoing covenants shall run with the land.
(9)The applicant shall comply with applicable laws and regulations of the Department of Buildings, particularly § 26-235 of the Administrative Code referring to the sealing of vacant buildings, and make the buildings safe. It must be clearly understood that the filing of an application does not relieve the applicant of any liability for violation of such rules.
(b)Any individual, partnership, organization or corporation may qualify for a loan if the holder of a fee title to the property, or of an option or contract to purchase with a conveyance of title to be made prior to, simultaneous with, the execution of the loan documents.
(c)Loan applicants must be prepared to certify when the loan is granted that at least eighty percent of the tenants occupying the building on such date are persons or families of low income whose probable aggregate annual income will not exceed six times the rental (or seven times, where there are three or more dependents) (including the value or cost to them of heat, light, water and cooking fuel), based on the rents projected to be charged upon completion of the rehabilitation.
