§ 34-05 Disposition.
RCNY § 34-05
(a)Disposition rent increase.
(1)Prior to disposition, HPD will prepare a statement of the projected cost of maintaining and operating the Building in the first year following Disposition, which statement will reflect, (i) actual expenditures, adjusted for inflation on an individual or compounded yearly basis, for the maintenance and operation of the Building prior to Disposition (including, but not limited to, the cost of fuel, common space utilities, repair and maintenance, supplies, insurance, custodial services, and fees for management and professional services), (ii) real estate taxes, (iii) water and sewer charges, (iv) contingency reserves, (v) reserves for vacancies and uncollectible debts, and (vi) any other costs anticipated to be associated with the maintenance and operation of the Building.
(2)HPD will calculate the rent levels necessary to cover the projected cost of maintaining and operating the Building in the first year following disposition, as reflected in such statement, and shall implement a Disposition Rent Increase based upon such calculation.
(3)HPD will issue a disposition rent roll to the Tenant Association and will notify the Tenants of such Disposition Rent Increase at least thirty (30) days prior to the effective date of the new rent.
(4)From the date that Tenants receive notice of the Disposition Rent Increase until the effective date of the Disposition Rent Increase, (i) HPD will make such statement of maintenance and operating expenses available for public inspection, (ii) any Tenant may comment in writing to HPD regarding the Disposition Rent Increase, and (iii) HPD will consider any timely comments received from Tenants.
(b)Disposition. HPD will not convey a Building to an HDFC unless: (1) the Tenant Association has, in the judgment of HPD, satisfactorily managed the Building during the term of the Tenant Interim Lease; and (2) Tenants of at least eighty percent (80%) of the Occupied Units have signed subscription agreements to purchase the shares in the HDFC attributable to their dwelling units; and (3) HPD has notified the Tenants of the Disposition Rent Increase; and (4) if required by HPD, the HDFC has executed a regulatory agreement which may contain, without limitation, restrictions on renting, subletting, and sales of units, and requirements for transfer fees, primary residency, and establishment of reserve accounts to be serviced by HPD for a fee equal to 0.25% of the average monthly balance in the reserve account over the previous 12 month period.
