§ 1-12 Management Supervisory Requirements.
RCNY § 1-12
(a)Neither an owner, nor anyone acting in his behalf, shall make a charge or demand a fee of any kind for processing a tenant's application.
(b)The owner shall receive no more than one month's rent as security and one month's rent in advance at the time the tenant takes occupancy of premises rented after the loan is granted. Upon direction by the Agency, such security deposits when received by the owner shall be immediately submitted to the Agency to be held in escrow by the Agency for the benefit of the tenant. The Agency will deposit all such funds in a separate interest bearing account with a banking institution of the Agency's choice. The records of such account shall be available at all times to an owner or tenant for the purposes of audit, inspection or examination, and interest accruing from such account shall enure to the benefit of the tenant-depositor. The principal amount of such deposit together with interest thereon shall be returned to the tenant by the Agency upon the written request of the owner certifying that the tenant's occupancy has been terminated and that all the terms and conditions of such occupancy have been complied with.
(c)The apartments in a rehabilitation building are available to persons or families of low income as defined in 28 RCNY § 1-02 (Definitions).
(1)Probable aggregate annual income includes the annual income of the chief wage earner of the family, plus all other income of other members of the family in excess of $1,500 per annum for each such member. The income of a working minor who is a full-time student shall not be included in the computation of such annual income. Social Security or other pension plan payments received by females aged sixty-two years and over, or males sixty-five or over shall be excluded from computation of annual income up to a total maximum amount of $75 a month per individual.
(2)If at the time a loan is granted, the tenant's probable annual income exceeds, or later increases so as to exceed, the prescribed income limits by more than fifty percent, he can be removed, with the Agency's consent, from the building either the expiration of a two-(2) year period from the time the loan was granted.
(3)A tenant who moves into the building after the loan has been granted is subject to removal, with the Agency's consent, when his yearly income exceeds the income limits by more than fifty percent.
(4)If, after the expiration of a two-year period from the time the loan was granted, more than twenty percent of the tenants in the building are over-income, the Agency may require the owner to remove over-income tenants.
(5)When the owner of the building occupies one of the units, he will be liable for rent surcharges the same as any tenant.
(6)Any person or family in occupancy whose income exceeds the maximum prescribed shall pay a rent surcharge in accordance with the following schedule: (Percentage of Maximum Permitted Income) Up to 100 percentBasic rent only In excess of 100 to 105 percentBasic rent onlyIn excess of 105 to 110 percentBasic rent plus 5 percentIn excess of 110 to 115 percentBasic rent plus 10 percentIn excess of 115 to 120 percentBasic rent plus 15 percentIn excess of 120 to 125 percentBasic rent plus 20 percentIn excess of 125 to 130 percentBasic rent plus 25 percentIn excess of 130 to 135 percentBasic rent plus 30 percentIn excess of 135 to 140 percentBasic rent plus 35 percentIn excess of 140 to 145 percentBasic rent plus 40 percentIn excess of 145 to 150 percentBasic rent plus 45 percentIn excess of 150 percentBasic rent plus 50 percent The owner of the dwelling must, subject to the approval of the Agency, take the action necessary to assure compliance with these provisions. Rental surcharges collected by the owner are paid to the Agency by check made out to the order of the City of New York and are used to reimburse the City for any tax exemption or abatement granted to the owner. If such benefits have not been granted, or if a sum equal to the amount of tax exemption and abatement granted has already been paid to the City, the surcharge shall be paid to the City in reduction of the loan in accordance with § 403 Subdivision 4 of Article VIII of the Private Housing Finance Law.
(d)Tenants for initial occupancy of such rehabilitated buildings, and for the filing of vacancies as they occur, shall be selected by the Owner in the following order of priority: (1) Site occupants, that is, tenants occupying the building on the date of preliminary site submission or such later date approved by the Agency. "Building" in this paragraph shall include parcels subject to a consolidated loan. Where the Housing Authority has entered into a leasing program regarding the rehabilitated building, all tenants eligible for public housing must apply to the Housing Authority to recognize their priority.
(e)The Agency may direct that a certain number of apartments be held vacant until the building is at least 70 percent occupied by relocatees having priorities (1) through (3) of subdivision (d) above, but not beyond the date when debt service commences. Implementation of the priority system described above shall be accomplished as follows: (1) The owner shall submit to the Agency, prior to renting, a Tenant Selection Review Form prescribed by the Agency.
(f)At the discretion of the Agency, the owner may be required to enter into a regulatory agreement with regard to the management and operation of the building and the rents, profits, dividends or distribution of its property and as otherwise prescribed by the Agency.
(g)The owner shall maintain separate and accurate books and records of all managerial and financial data, including assets, liabilities, equity, income and expense, relative to the rehabilitated property or properties for which a separate loan has been made. Such books and records must be made available to the representatives of the Agency for audit, examination or review upon demand. Unless this requirement is modified or waived in the case of a loan under $4,200 per unit, financial reports as prescribed by the Agency relative to a rehabilitated property or properties for which such a separate loan has been made are required to be filed in duplicate, with the Agency for the six-month period ended December 31, and the twelve-month (annual) period ended each June 30. The reports are due within 90 days after the close of each respective period. The indicated filing requirements are to be met with respect to the initial operating periods although these may not be full six- or twelve- month periods. Such reports are to be based on audit examination, in accordance with generally accepted auditing standards, by an independent public accountant licensed in New York State. The annual report, for the fiscal year ended each June 30, is to be certified by such accountant relative to the financial statements and other data required to be contained therein. The foregoing reports are to include the following: (1) Accountant's certification.
(i)Balance Sheet, with such supporting schedules as required to be fully informative.
(ii)Statement of Operations, with detailed income and expense subclassifications. The annual statement shall also show separately the operating figures for the last six months of the fiscal year, January l-June 30.
(iii)Statement of Sources and Application of Funds (Change in net working capital). There shall also be filed such other financial reports or data as the Agency may require.
(h)The Agency reserves the right to make periodic inspection on each apartment in the rehabilitated building. Such inspections shall be for the purpose of inspecting the condition and maintenance of the building, the condition of utilities, fixture and equipment. Periodic visits may also be made to the building by representatives of the Agency for the purpose of conferring with tenants, advising on consumer practices, frauds and products, education regarding maintenance of dwellings and where necessary serving as a liaison or intermediary on landlord-tenant problems. Copies of reports of such inspections shall be made available to the owner with recommendations for corrective measures where necessary.
