§ 41-14 Reserve Accounts for Homeownership Generating Sites.
RCNY § 41-14
(a)General. Each Homeownership Generating Site must have Reserve Accounts. Reserve Accounts will be held as blocked reserves at HDC unless HPD permits such accounts to be held in accordance with requirements of another City, State, or Federal housing program.
(b)Funding Reserve Accounts.
(1)Operating Reserve Accounts for Homeownership Generating Sites must be funded by the date of issuance of the Completion Notice in an amount equal to at least six (6) months of projected operating costs for the Homeownership Affordable Housing Units.
(2)Capital Reserve Accounts for Homeownership Generating Sites must be funded by the date of issuance of the Completion Notice in the amount of two dollars and twenty-five cents ($2.25) per square foot of Homeownership Affordable Housing.
(3)Administering Agent Reserve Accounts for Homeownership Generating Sites must be funded by the date of the Completion Notice in the following manner: (i) An initial payment by the developer of the Affordable Housing as specified in the Regulatory Agreement; (ii) A surcharge, to be to be applied as part of the applicable Monthly Fees for Homeownership Affordable Housing Units; and (iii) A Flip Tax imposed upon the seller of a Homeownership Affordable Housing Unit at Resale.
(c)Using Reserve Funds.
(i)In Partial Inclusionary Buildings, when permitted increases to Monthly Fees charged to Homeownership Affordable Housing Units do not cover their proportionate share of the Homeownership Generating Site's operating costs, requests for drawdowns from the Operating Reserve Account may be made to HPD to cover the documented increases in the following costs if they are part of Common Expenses: fuel, electricity, water, sewer, Building staff salaries and taxes.
(ii)In Generating Sites that consist entirely of Affordable Housing, when permitted increases to Monthly Fees charged to Homeownership Affordable Housing Units do not cover their proportionate share of the Homeownership Generating Site's Common Expenses, funds from the Operating Reserve Account may be used to cover operating deficits.
(iii)In addition, HPD may approve the use of funds from the Capital Reserve Account to pay for repairs to Homeownership Affordable Housing Units.
(d)Drawdown Process for Reserve Accounts.
