Title 9 Part 153

For the purposes of these guidelines, the following terms shall have the meaning set forth opposite such terms, unless the context shall clearly indicate some other meaning.

The rent or carrying charges determined by the commissioner to be sufficient, together with moneys available to the company from the State, the Federal government or any other source, to provide for the payment of:

The sum of the current economic rent, plus an amount sufficient to amortize all mortgage repayment arrearages, including fees and charges, and all real property tax arrearages, including applicable interest, if any, and all water and sewer charge arrearages, including applicable interest, if any, of the company.

A limited profit housing company duly incorporated pursuant to the provisions of article 2 of the Private Housing Finance Law or a company incorporated pursuant to the Not-for-Profit Corporation Law and article 2 of the Private Housing Finance Law for the purpose of providing housing and auxiliary facilities for staff members, employees or students of a college, university, hospital or child care institution and their immediate families, or for aged or handicapped persons of low income, pursuant to article 2 of the Private Housing Finance Law.

The Commissioner of Housing and Community Renewal of the State of New York.

The director of the Division of the Budget of the State of New York.

All charges paid to a housing company by a person or family living in a project by reason of ownership of stock in such company. The word rental shall mean and be interchangeable with carrying charges.

The owners of a housing project may enter into an agreement modifying the terms of the mortgage on that project only if the imposition of total economic rent (rent levels which are high enough to generate revenues that are sufficient to pay all current costs of operating the project, plus accumulated arrearages) would require an increase in the project's rental rates or carrying charges of 20 percent or $10 per room per month, whichever is greater. (See section 60, Private Housing Finance Law.)

As part of a mortgage modification agreement, a housing company and HFA may agree to vary rental rates or carrying charges at a housing project below the level of economic rent for as much as 75 months, so long as rents reach the level of current economic rent at the end of that period. Current economic rent is defined in the amendment to be the rent or carrying charges sufficient to provide for the payment of all current costs of operating a housing project, including payments into reserve funds, real property taxes, water and sewer charges and mortgage payments (see section 60, Private Housing Finance Law). However, the amendment also requires that certain arrearages, which are not included in the calculation of current economic rent, must be cured, as described in the next subdivision.

The statute establishes different requirements for the payment of three distinct types of housing project arrearages. Debt service arrearages that accumulate before a mortgage modification begins are to be repaid by the date that the project's mortgage was originally scheduled to terminate. Debt service arrearages that occur during the period of the mortgage modification agreement must be paid within 10 years of the termination date of that agreement. Also, all real property tax and water and sewer charge arrearages must be paid, with interest, within 15 years of the effective date of the initial variation in rental rates or carrying charges. (See section 60, Private Housing Finance Law.)