§ 8-06 Interim Evaluation Period.
RCNY § 8-06
(a)A property that has been transferred to a Third Party for which a Third Party has sponsored a Tenant application pursuant to 28 RCNY § 8-03(e)(9) shall be subject to an interim evaluation period during which progress toward eventual ownership by Tenants will be monitored by HPD.
(b)No later than ninety days after transfer to a Third Party of a property for which a Third Party has sponsored a Tenant application pursuant to 28 RCNY § 8-03(e)(9), such Third Party, or his or her designee, shall inform the Tenants that the property has entered into an interim evaluation period, and shall provide information to the Tenants about the process toward eventual ownership by the Tenants. Such Third Party shall make training available to such Tenants after such transfer. The training may include courses in building management, maintenance, and managing building finances. HPD may also provide notice to the Tenants regarding commencement of the interim evaluation period.
(c)The interim evaluation period shall include certain milestones for achievement which shall form the basis for HPD to either permit the property to move forward toward eventual ownership by Tenants, or to remove the property from the process toward such ownership. HPD shall evaluate progress toward eventual ownership by Tenants using the following milestones: (i) whether Tenants have cooperated with the Third Party in renewing leases or establishing new leases where none exists; (ii) whether at least 80% of the Tenants are actively paying rent; (iii) whether Tenants have cooperated with relocation plans, where applicable; (iv) whether Tenants have attended training programs offered by the Third Party; and (v) any additional factors that HPD considers appropriate in evaluating the Tenants' progress toward ownership, provided that HPD notifies the Tenants of any such additional factors.
(d)Such interim evaluation period shall commence upon transfer of the property to the Third Party and shall continue upon the transfer of the property to any subsequent Third Party. Such interim evaluation period shall end when any required rehabilitation of the property has been completed and permanent loan conversion has taken place, or at the conclusion of such shorter period as HPD shall determine with notice to the Tenants.
(e)HPD shall evaluate compliance with the milestones listed in subdivision (c) of this section at regular intervals, and shall inform Tenants and the Third Party of its findings. HPD may at any time remove a property from the process toward eventual ownership by Tenants based upon its evaluation. If HPD has not removed the property from such process, at the completion of the interim evaluation period it shall make a determination for such property pursuant to 28 RCNY § 8-07.
