§ 3-07 Management and Operations.
RCNY § 3-07
(a)Special services. A housing company may furnish tenant / cooperators with special services not provided for in the lease or occupancy agreement such as bus, laundry, television antenna or other services upon such terms as HPD shall approve in writing. These services and all facilities used in connection therewith, shall be made available to all tenant / cooperators on equal terms. Discontinuance of special services at the request of a tenant / cooperator shall not entitle the tenant / cooperator to a reduction in rent or carrying charges unless HPD shall otherwise direct.
(b)Services, repairs, replacements and improvements.
(1)Each housing company shall maintain its structures, grounds, elevators, boilers and other equipment, either by contract or by qualified employees in such a manner as to preserve the property, to protect the health and safety of the residents and employees, and to provide economical operation of the development.
(1-a)Periodically, HPD will require each housing company to submit a physical condition report prepared by an independent qualified consultant acceptable to HPD. The report will determine the physical condition of the property and all appurtenant equipment. The report must specify all items and equipment that are in need of repair or replacement or which have exceeded their useful lives or are projected to need repair or replacement within five years. The report must also include a plan to address its findings, including an explanation of how any necessary work will be financed.
(2)Contracts for building services, repairs, replacements, redecorating or improvements and supplies shall be let on the basis of lowest cost compatible with quality of performance, material and workmanship. In addition, any contract for over $100,000 also must be let on the basis of no less than three competitive bids and shall be submitted for HPD written approval. The housing company's submission shall include the three bids plus a contract executed by the successful bidder as well as the other documents as set forth below. Notwithstanding the foregoing, HPD reserves the right to require any individual housing company to submit for approval any or all contracts over $5,000. In the case of a mutual housing company, the submission shall be accompanied by (i) a certified copy of Resolution of the housing company's Board of Directors acknowledged by the Secretary of the Corporation, approving the contract, bearing the housing company's corporate seal and (ii) the housing company's attorney's certification that the proposed contract is in compliance with the rules of HPD. In the case of a rental development, the president or managing general partner of the housing company or his or her duly authorized designee must sign the contract. The following language shall be included in all contracts for building services, repairs, replacements, redecorating and improvements: "Material, equipment and workmanship shall be subject to the inspection and approval of HPD or its duly authorized agent at the discretion of HPD during the progress of the work and before final payment is made on the contract." Every contract subject to HPD approval shall contain the following language: "This agreement is subject to written approval by HPD. No work shall commence until this agreement is approved by HPD." (2-a) Notwithstanding anything to the contrary in this subdivision (b): (i) the managing agent must promptly notify HPD if the housing company makes payments to and/or incurs charges from any vendor or service provider that in the aggregate equal or exceed $100,000 in any fiscal year. Such notification shall be in writing and must be made no more than seven days after such payments and/or incurred charges reach the $100,000 limit; and (ii) upon a housing company making payments to and/or incurring charges from any vendor or service provider that in the aggregate equal or exceed $100,000 in any fiscal year, no further charges may be incurred without the prior written approval of HPD.
(3)The housing company or its managing agent shall require that all firms performing work on the housing company's behalf, supply evidence in the form of a certificate of insurance for workers' compensation and commercial general liability, naming the housing company and HPD as additional insured parties. For contracts subject to HPD approval, such certificates must be submitted to HPD for its written approval before any such contract is executed by the housing company. The liability limits for workers' compensation shall be statutory, and the commercial general liability insurance shall be in standard comprehensive general liability form, naming the housing company and HPD as additional insureds, against all claims for bodily injury, death or property damage in an amount not less than $1,000,000 per occurrence, $2,000,000 annual aggregate for bodily injury and property damages.
(4)On all contracts over $100,000, the successful bidder shall, not later than the time of its delivery of the executed contract, deliver to the housing company and HPD an executed Performance Bond for 100 percent of the accepted bid as surety for the faithful performance of the contract and an executed Payment Bond for 100 percent of the accepted bid as surety for the payment of all persons performing labor or furnishing materials in connection therewith. Alternatively, the contractor may submit an unconditional, irrevocable letter of credit from a New York Clearing House bank equal to at least 10 percent (10%) of the dollar amount of the contract which shall provide that the full amount may be drawn down by the housing company upon delivery of a letter certifying default of the contractor. Request for waiver of a bond or letter of credit shall be submitted in writing to HPD by the housing company.
(5)The following language shall be included in all contracts that are subject to HPD approval for building services, repairs, replacements, redecorating and improvements: "Contractor shall not assign any monies due or to become due hereunder without the written consent of the Owner and HPD, nor shall Contractor subcontract or assign any of the work without prior written approval by the Owner and HPD of such subcontractor or assignee." In addition, such contracts shall contain the following language: "This agreement is subject to written approval by HPD." (6) In the case of emergencies, where immediate employment of a contractor is deemed necessary by the housing company to prevent damage to property or prevent injury to persons, submission to HPD of the data required by paragraph (2) above may be made after execution of a contract or performance of the work, provided that such submission is made promptly following the date on which such emergency arose. However, if the emergency occurs during working hours, notification of emergency should be made by telephone to HPD and verbal approval obtained prior to commencement of repairs.
(7)All contracts for building services or maintenance of buildings equipment on an annual or time basis that require HPD approval pursuant to paragraph two of this subdivision shall be submitted to HPD for written approval before execution by the housing company, and prior to expiration of the previous contract, if any. Where a contract that was not previously approved for automatic renewal is to be renewed for an increased amount, the renewal contract must be submitted for approval to HPD at least thirty (30) days prior to expiration of the existing contract. All such renewal contracts for building services or maintenance of buildings equipment shall provide that they are subject to termination without cause upon thirty (30) days written notice by the housing company or upon ten (10) days written notice by HPD, and immediately upon notification by the housing company or HPD that the contractor has materially breached his or her contract. After termination, no amounts shall be owed except for work actually completed.
(8)In the event that any director, officer, shareholder, employee or agent of any housing company shall be directly or indirectly connected with any person, firm or corporation which may submit any bid, or to whom any contract is proposed or awarded, pursuant to the provisions of paragraph (2) or (6) hereof, a statement setting forth the nature of such connection shall be included in the submission to HPD and shall be made a part of the minutes of the meeting wherein the contract was approved.
(c)Contracts and retainers.
(d)Cancellation by HPD. Any contract, agreement or retainer, entered into by the housing company or its managing agent in violation of the provisions of this section shall be subject to immediate cancellation by HPD.
(e)Employees, wages and living quarters.
(f)Certification of superintendents and boiler technicians. The housing company or managing agent shall require the building superintendent and one boiler room technician from each housing company to obtain a certificate of completion of a course offered by an accredited institution on the maintenance of a vacuum steam system, where applicable. Such accreditation must be furnished to the Division of Housing Supervision of HPD if requested by HPD.
(g)Examination of operations. The administration and operation of a development shall be subject to examination at the discretion of HPD. The housing company shall make all data, records, information and areas of the physical property available for such examination.
(ii)A log of repairs or improvements to plant, structures and grounds.
(iii)A log of service interruptions, such as heat, hot water, elevator and utilities.
(iv)log of contracts, including, but not limited to, name of contractor, fee and expiration date.
(v)A log of general supplies, tools and equipment.
(vi)An oil consumption log setting forth delivery date, gallonage and price per gallon; or a steam or gas consumption log, where applicable.
(vii)Electricity usage log (monthly kwh consumed).
(h)The Board of Directors and/or managing agent of each municipally-aided mutual company shall post on a website created for each mutual company the following documents: (1) redacted retainer agreements, (2) redacted contracts for building services, construction and repairs, (3) all board resolutions (including how each board member voted) and all minutes from board of directors’ meetings that have been redacted for confidential information, (4) any request by the mutual company to the supervising agency and any final resolution regarding such request, when the request relates to a change in rules, a change in its real estate taxation, a refinancing or financing being offered by the supervising agency, or any other agency or a proposed dissolution and reconstitution, (5) any deficiency letters issued by the Office of the Attorney General to the mutual company regarding an offering plan for dissolution and reconstitution of the mutual company, any deficiency letters issued by the Office of the Attorney General to the mutual company regarding a proxy statement or any other documents permitted by the Attorney General instead of such offering plan, and any of the mutual company’s resubmissions of such offering plan or proxy statement or any other documents permitted by the Attorney General instead of such offering plan in response to such deficiency letters issued by the Office of the Attorney General, and (6) any offer of financing from the supervising agency or any other agency to the mutual company. (Amended City Record 8/14/2019, eff. 9/13/2019; amended City Record 6/20/2023, eff. 7/20/2023)
