§ 3-16 Managing Agents Agreements.
RCNY § 3-16
(a)Managing agents agreement required. All housing companies are required to enter into written agreements for management services which must be approved in writing by HPD. This subdivision (a) applies to all agents, corporate or individual. Managing agent agreements are subject to the provisions of subdivision (e) of 28 RCNY § 3-13 regarding debarment.
(b)Criteria for selection of managing agent.
(1)The prospective agent, corporate or individual, must be a real estate broker in good standing duly licensed by the State of New York. Site managers employed by the prospective agent must be certified, by an organization acceptable to HPD, within twelve (12) months after assignment to an HPD-supervised housing development. The certification requirement cannot be waived by transferring the site manager to an alternate HPD-supervised site prior to the end of the twelve month period. If a housing company elects to undertake self-management of its housing development, it must seek written approval from HPD. The person being employed to perform the role of manager must be approved in writing by HPD. If the manager is an employee of the housing company, he or she is not obligated to have a real estate broker's license. However, the employee-manager must be certified, by an organization acceptable to HPD, within twelve (12) months after his or her initial employment date.
(2)The agent must provide a fidelity bond in an amount and form and with a surety approved by HPD.
(3)The agent shall provide evidence of experience and capability commensurate with the responsibility it seeks to undertake.
(4)The agent may be required to submit a management plan proposing a program conducive to proper maintenance and economic viability of the project, and to harmonious relations among tenant / cooperators, management and the community. The plan shall include, but shall not be limited to, policy regarding deployment of personnel, tenant / cooperator-management relations, tenant / cooperator selection, rent/carrying charge collection procedures, agency reporting procedures, fiscal accountability, physical plant maintenance, equal opportunity measures and security measures. The plan shall take into account the characteristics of the development, its neighborhood and type of tenancy (e.g., senior citizen or handicapped). The plan and its implementation will be considered in determining the agent's employment, renewal and compensation, and will be subject to HPD review and written approval.
(5)The agent must maintain an office or place of business in the metropolitan area at no cost to the housing company where it will keep all books, records, bills and other documents pertaining to the housing company. These records will be available for inspection and review by the owner, HPD or other interested parties as permitted by statute or rules of HPD.
(c)Term of managing agent's agreement.
(6)HPD may review the performance of a managing agent at any time and may solicit comments from owners, tenants, and others relating to the performance of the managing agent.
(7)Notwithstanding anything to the contrary contained in this section, HPD is authorized to require the replacement of any employee of the managing agent whose job duties are performed on the premises of the rental or mutual housing company development and who has violated the Private Housing Finance Law and/or applicable rules and directives governing such housing developments.
(d)Managing agent's fee.
(e)Duties and responsibilities of managing agent. The principals of the managing agent shall devote a reasonable percentage of their time in supervising management duties of their subordinate staff. Said management duties shall include, but shall not be limited to, the following: (1) investigate, hire, pay, supervise and discharge all personnel necessary to be employed in order to properly maintain and operate the development in accordance with an operating schedule, job standards and reasonable and necessary wage rates approved by the housing company. Such personnel shall be considered employees of the housing company and compensation for the services of such employees shall be considered an operating expense of the company, provided, however, that in each development the managing agent shall employ and shall compensate out of its fee one or more responsible individuals as approved by HPD and the housing company whose job it shall be to carry out the responsibilities of the managing agent at the premises; (2) prepare tax records, including withholding and social security records for the employees of the development, and shall administer required programs of workers' compensation and other employee liability insurance programs; (3) collect all monthly rents, carrying charges and all other charges due from tenant / cooperators both residential and commercial, and from other users or concessionaires; including, but not limited to, licensees, and take such action with respect thereto as the owner may authorize; (4) cause the buildings and grounds of the development, and all equipment appurtenant thereto to be maintained according to standards acceptable to the housing company and to HPD; (5) subject to the approval of the owner and in accordance with HPD rules, contract for water, electricity, gas, fuel oil, extermination and other necessary services; (6) in accordance with HPD’s directives for managing agents, submit tenant / cooperator applications to HPD for approval; maintain waiting lists in accordance with HPD rules and utilize such lists in the re-rental of vacated apartments or resale of shares in a mutual housing company; perform all services in connection with the processing of applications resulting from such reletting or resale; (7) diligently undertake the renting of any parking spaces, commercial and non-dwelling space in the project, arranging for the execution of such leases or permits as may be required; (8) undertake recertification of tenant / cooperator income as required by HPD or by federal regulations; (9) prepare and submit annual operating budgets, monthly operating reports, rent rolls, vacancy reports, rent arrears reports, surcharge tabulation sheets, equal opportunity reports, HUD excess income reports, where applicable, and any other documents required by the housing company or HPD; (10) maintain books and records relating to the development; (11) establish operating bank accounts and make deposits and withdrawals in such account as directed by the housing company; maintain a blocked reserve account as required by HPD and invest the funds of such account in accordance with HPD rules to attain the maximum return on investment; (12) advise the housing company and HPD of projected needs for repairs and replacements at least once each year; review physical inspection reports and effect compliance; (13) submit contracts and retainers for HPD approval in accordance with HPD rules; (14) process tax matters in a timely manner; (15) conduct an annual inspection of all apartments for the purpose of identifying unreported electrical or other equipment (air conditioners, freezers, washing machines and dryers), observing the physical condition of the apartments, and ascertaining compliance with the rules and regulations of the project, HPD and HUD, where applicable, and report its findings in writing to the Owner and HPD; (16) receive, record and respond to all service requests made by tenants in a timely manner; (17) carry out such other duties and responsibilities as may be stipulated by the housing company or HPD and as may be included in the management agreement; and (18) advise HPD of violations of these rules attempted or carried out on behalf of the housing company, its employees, any person or entity or employee of an entity doing or seeking to do business with the housing company or by members of the Board of Directors of the housing company.
(f)Allocation of management expenses. In order to establish a uniform allocation of management expenses between the managing agent and the housing company, the below listed charges are allocated as follows: Charge to Managing Agent Housing Company (1) Item of expense (i) Wages for managing agent's staff (A) On siteX (B) Central officeX (ii) Sight staff, where applicableCase by Case Basis (iii) Messenger service and out of pocket expenses for deliveriesX (iv) Travel expense from central office to site and backX (v) Travel expense to and from HPD for such things as meetingsX (vi) Overtime for emergencies or deadlinesX (vii) Legal and accounting fees of managing agentX (viii) Rent hearing participationX (ix) Cost of preparing all reports required by HPD, HUD, where applicable, or any other city, state, or federal agencyX (2) On site furnishings (i) Office furniture (desk, chair, carpet)X (ii) Office equipment, purchased or rented (computers, facsimile machine, mimeo, xerox, typewriters, adding machines)X (iii) Maintenance and repair of equipmentX (3) On site supplies and services (i) Housing company stationery, plain and copy paperX (ii) Pens, pencils, clips, carbon paper and other office suppliesX (iii) PostageX (iv) TelephoneX (A) On siteX (B) Central officeX (v) Printing of leases, notices and advisories to tenant / cooperators; and forms for Board elections X (vi) Photocopying and other reproduction costsX (vii) Fidelity Bond and other insurance covering management operationX (viii) Penalties or fines levied by Finance Department or other agenciesCase by Case Basic depending on fault (ix) Lock box serviceX (g) Leasing of commercial space, commissions. In the leasing of commercial space, payment of real estate brokerage commission shall be solely in accordance with the following rules: (1) No brokerage commissions shall be permitted for that part of a lease term in excess of 20 years.
