§ 3-13 Sanctions.
RCNY § 3-13
(a)Written notice and opportunity to appear. In the event of a violation by a housing company which could result in removal of any or all of a Board of Directors pursuant to § 32(6) of the Private Housing Finance Law, the Board of Directors shall be provided with written notice and affected directors shall be given an opportunity to appear and be heard before HPD with respect to any alleged violations.
(b)Representation by counsel. The respective parties may be represented by counsel before HPD.
(c)Appointment of replacement board of directors. Pursuant to § 32(6) of the Private Housing Finance Law, HPD may replace any or all members of a Board of Directors by appointing persons who HPD in its sole discretion deems advisable, including officers or employees of HPD, as new directors to serve in the places of those removed. Directors so appointed need not be shareholders or meet other qualifications which may be prescribed by the housing company's Certificate of Incorporation or by-laws.
(d)Term of appointment. Directors appointed under this section shall serve only for a period coexistent with the duration of the violation, or until HPD is assured against commitment of violations of a similar nature, and shall serve in such capacity without compensation.
(d-1)Any member of a Board of Directors that has been removed in accordance with subdivision 6 of section 32 of the Private Housing Finance Law and the provisions of this section shall be prohibited from running as a candidate for the Board of Directors for any mutual housing company development for three years from the date of such removal.
(e)Debarment. Any person or entity may be debarred for a period not to exceed ten years from contracting with or managing any housing companies supervised by HPD upon a finding by a hearing officer designated by the Commissioner that there has been a material violation of these rules or the provisions of Article II of the Private Housing Finance Law by such person or entity or their agent or agents or upon a finding by a hearing officer designated by the Commissioner that they have engaged in activity which would constitute a violation of the Penal Law. Any person or entity so debarred may appeal in writing to the Commissioner within ninety days of written notification of the debarment.
(f)Control of admissions and transfers. Upon a finding that any housing company is in violation of these rules with respect to admissions and transfers, HPD may take over control of all internal and external waiting lists and have sole responsibility for the selection and approval of admissions and transfers.
(g)Compulsory training. HPD may at its discretion require managing agent employees and members of the board of directors to attend housing education courses at the respective expense of the managing agent and the housing company. (Amended City Record 6/20/2023, eff. 7/20/2023)
