§ 1-05 Allowable Rehabilitation and Improvement Costs.
RCNY § 1-05
Loans may, at the discretion of the Agency, include the following items of cost incurred in the process of rehabilitation or improvement of multiple dwellings: (a) Development cost.
(1)Construction costs.
(2)Relocation stipends paid in accordance with applicable laws and regulations to tenants in occupancy of the building to be rehabilitated on the date of execution of the loan, or on such prior date as may be approved by the Agency, but not earlier than the date of filing the loan application.
(3)Architectural and legal fees and contractor's overhead and profit as set forth in the schedules herein, and reasonable fees for accounting and appraisals.
(4)The cost of a "Payment and Performance Bond" or an amount in lieu thereof, as provided in 28 RCNY § 1-09 (Fee Requirements).
(5)Real estate taxes, assessments, frontage and meter charges and sewer rents accruing during the period of construction, commencing on the date of execution of the loan, where income is inadequate during the period of construction to pay such costs.
(6)Monthly interest on the amounts advanced under the loan during the period of construction.
(7)A supervision fee as provided in 28 RCNY § 1-09.
(8)Fees due and payable to an approved title company for the title insurance policy, recording of loan documents and mortgage recording taxes.
(9)Net cost, if any, related to the rehabilitation or improvement including, but not limited to, maintaining the property pending rehabilitation or improvement, or where actions are taken in aid of the rehabilitation or improvement prior to the closing, such net costs commencing no earlier than the date of the loan application as may be approved by the Agency. Net cost represents the extent to which, due to the rehabilitation or improvement, operating expenses for repairs, janitorial services, real estate taxes, utilities and management contract and expenses related to the rehabilitation or improvement including cost of initial renting as such are approved by the Agency exceeds the rents collected from the property.
(10)Premiums for insurance during construction.
(11)An amount approved by the Agency for contingencies, to provide for approved change orders and other approved increases in development cost.
(b)Cost of acquisition.
(c)Cost of refinancing. Actual cost to applicant or to any one with whom applicant has an identity of interest, of satisfying or refinancing existing mortgages, liens, including real estate taxes due and owing to the City of New York and other encumbrances.
