§ 2-02 Eligibility and General Conditions.
RCNY § 2-02
(a)Eligible buildings.
(1)Loans may be made to an owner of a multiple dwelling located within the City to enable or assist such owner to eliminate a substandard or insanitary condition or conditions in violation of the Multiple Dwelling Law or the Housing Maintenance Code of the City of New York or to provide for the replacement and rehabilitation of the heating, plumbing, electrical and related systems or other improvements as shall be reasonably necessary to prolong the useful life of such dwelling.
(2)No loan shall be made unless the average rent for dwelling units in the building is not in excess of the average rent prevailing in local projects of municipally-aided limited-profit housing companies aided under Article II of the Private Housing Finance Law of the State of New York, the occupancy of which commenced on or after May 18, 1970, except for loans made to rehabilitate single room occupancy housing, in which cases the average rent for such units in the building shall not exceed seventy-five (75%) percent of the Moderate Rehabilitation Fair Market Rent as defined in 28 RCNY § 2-01(b) "Occupancy by persons or families of low income", for 0-bedroom units.
(b)Allowable costs. At the discretion of the Dept., loan proceeds may be advanced to finance the following items of cost incurred in connection with the rehabilitation or improvement: (1) Construction costs and filing fees required by the Department of Buildings and other governmental agencies having jurisdiction.
(3)Recording and filing fees and mortgage taxes.
(4)Payment and Performance Bond(s).
(5)Fees or charges attributable to the examination and insurance of title.
(6)Real estate taxes, assessments, water and meter charges and sewer rents.
(7)Fire insurance premiums.
(c)Maximum amount. The loan amount shall not exceed an average of ten thousand ($10,000) dollars per dwelling unit or the actual cost of the rehabilitation or improvement, whichever is less.
(d)Term. The term of a loan shall not exceed twenty years, except that the term of a loan whose amount exceeds an average of five thousand ($5,000) dollars per dwelling unit shall not exceed thirty (30) years. In no event shall the term of any loan exceed the useful life of the rehabilitation or improvement.
(e)Interest rate. The interest rate shall be three (3%) percent per annum, except where otherwise determined by the Department.
(f)Protection of mortgage lien. Subsequent to the loan closing, the Department at its discretion may pay any liens and charges the priority of which are superior to its mortgage and may pay such other expenses as may be appropriate to protect its loan or to protect the lien of the mortgage relating thereto, provided that such expenditures shall not exceed one-half of the total amount of the loan.
