§ 62-07 Enforcement.
RCNY § 62-07
(a)Rehabilitation Program Benefits may be revoked retroactive to the commencement thereof, as provided in 28 RCNY Chapter 39.
(b)Rehabilitation Program Benefits also are subject to revocation or reduction for failure to substantiate claimed costs.
(1)All applications are subject to audit by HPD at any time after the issuance of a Certificate of Eligibility and Reasonable Cost.
(2)In addition to the bases for revocation of tax benefits provided in 28 RCNY Chapter 39, the Commissioner may reduce or revoke past or future Rehabilitation Program Benefits if he or she finds that the application for a Certificate of Eligibility and Reasonable Cost, including all affidavits submitted in connection with the application, contains a false statement or false information as to a material matter or omits a material matter relating to claimed costs. It is the responsibility of the recipient of the benefits, whether the original applicant or any subsequent owner, including any Eligible Homeownership Building, to document all claimed costs in a manner acceptable to HPD and in accordance with generally accepted auditing standards so that original checks or such other proof of payment as HPD shall require can be properly matched against the items on the Certified Reasonable Cost Schedule and so that the auditors may examine original documentation for the cost of all supplies and the cost of all subcontracts. If a recipient of Rehabilitation Program Benefits hereunder fails to substantiate claimed costs to the satisfaction of HPD, the CRC shall be reduced or revoked as applicable. If HPD determines on the basis of the total available evidence that the application contains a false statement or false information as to a material matter, or omits a material matter, relating to claimed costs, all benefits hereunder shall be revoked in accordance with subdivision p of the Act.
(3)All books, records and documents, which in accordance with generally accepted auditing standards, may be used to substantiate entries in the applicant’s books and records relating to claimed costs, must be kept at all times available for inspection by HPD and must be retained for a period of at least six years from the later of the date of the approval of the Certificate of Eligibility and Reasonable Cost as stated therein or the date upon which the tax benefits commence except that (A) where an audit has been initiated and a final determination has not been rendered, such records must be retained until such determination has been made and (B) where an applicant has entered into an installment arrangement with respect to payment for work comprising all or a part of the project, such records must be retained until the later of (I) three years from the date on which the applicant collects the Certificate of Eligibility and Reasonable Cost, and (II) one year following payment in full for the work comprising the project.
(4)If an institutional lender has become a successor in interest to the original owner of a building or structure receiving Rehabilitation Program Benefits, and, after diligent efforts to obtain original contracts, checks and other records normally reviewed by HPD to verify claimed costs, is unable to obtain part or all of such records, HPD shall permit the substitution, in whole or in part, of documentation certified by the institutional lender showing the amounts advanced by the institutional lender pursuant to the mortgage loan to finance such Eligible Construction along with such other documentation as HPD may require.
(5)The revocation of Rehabilitation Program Benefits for failure to substantiate claimed costs hereunder shall be conducted in accordance with the procedures established pursuant to 28 RCNY Chapter 39. Notwithstanding the foregoing, if, after HPD delivers an Initial Notice in accordance with28 RCNY Chapter 39, the Taxpayer fails to submit documentation to substantiate claimed costs during the Comment Period as defined in such Initial Notice, HPD shall deliver a Determination Notice to the Taxpayer in accordance with such chapter. (Added City Record 5/21/2025, eff. 6/20/2025)
