§ 20-03 Regulatory Agreement.
RCNY § 20-03
(a)When a building covered by these rules is transferred to a new owner at any time following appointment of such administrator, § 778(10) of the RPAPL authorizes the Department of Housing Preservation and Development ("Department") to enter into a regulatory agreement ("Regulatory Agreement") with the new owner.
(b)A Regulatory Agreement shall require the new owner to provide adequate, safe and sanitary housing accommodations for persons of low income, as such term is defined in Subdivision 19 of § 2 of the Private Housing Finance Law, for a period of not less than thirty years and may require such additional provisions as the Department deems appropriate, including, but not limited to, income and occupancy restrictions and a plan for the continuing repair and maintenance of the property.
(c)A Regulatory Agreement shall include a certification by the new owner of the real property containing such building that (i) the prior owner has no direct or indirect interest in such real property, and (ii) the prior owner has no direct or indirect interest in such new owner.
(d)A Regulatory Agreement may provide that, upon transfer of such building to the new owner, any outstanding liens filed with and recorded by the City pursuant to § 778(1) of the RPAPL and § 309 of the Multiple Dwelling Law shall immediately be reduced to zero upon execution of such Regulatory Agreement.
