§ 3-08 Reserves.
RCNY § 3-08
(a)Reserves. Each housing company shall be required to maintain a capital repair and replacement reserve account.
(1)Deposits.
(i)Annually, each housing company must deposit into the capital repair and replacement reserve account three hundred dollars ($300) per dwelling unit in equal monthly installments.
(ii)If the capital repair and replacement reserve account balance does not equal or exceed the greater of one thousand dollars ($1,000) per dwelling unit or twenty-five percent (25%) of the housing company's rent roll, such housing company must deposit three percent (3%) of its rent roll on a monthly basis to the capital repair and replacement reserve account until its balance is raised to equal or exceed the greater of one thousand dollars ($1,000) per dwelling unit or twenty-five percent (25%) of the housing company's rent roll.
(2)Disbursements. No disbursements from the capital repair and replacement reserve account can be made without prior written authorization by HPD.
(b)Bank resolutions. The resolution filed with the bank shall contain, in addition to the clauses required by the bank, the following clauses: Further resolved, that withdrawals from such reserve account be accompanied by "Authorization for Expenditure of Funds" signed by a designated HPD official of, and that duplicate copies of monthly bank statements shall be forwarded to HPD's Division of Housing Supervision, upon HPD's request; that when an investment in securities is contemplated, withdrawal shall be made upon presentation of "Authorization for Expenditure of Funds;" that the bank shall make the investment, shall hold the securities in safekeeping and shall deposit to such account the proceeds realized on either liquidation or redemption. Further resolved, that this resolution shall remain in full force and effect unless and until revoked with HPD's written consent. A certified copy of the housing company's resolution opening the bank account and a photocopy of the housing company's signature card filed with the bank shall be submitted to HPD's Division of Housing Supervision.
(c)Investments. The capital repair and replacement reserve account shall be held in Federally insured interest-bearing bank accounts and/or interest bearing Federal obligations in a form approved in writing by HPD.
