9 NYCRR Part 1728 - Executive Department

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9 NYCRR 1728-1.1 - General provisions

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NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)It is hereby declared to be the purpose of this Subpart to formulate a systematic and objective budget and rent determination procedure; to assure that all parties affected by that procedure are afforded participation in the administrative process through access to information and opportunity to comment thereon; to encourage and promote openness in the administrative proceeding; to combine the housing company budget procedure with the rent determination process; to assure funding for sound maintenance of the condition and facilities of State-supervised projects; to fulfill statutory obligations involving a balancing process which protects the interests of the tenants and cooperators, the housing companies, the bondholders and the people of the State of New York; and to uphold the public policy as expressed in the New York State Constitution and the Private Housing Finance Law.

(b)Budget preparation and rent determinations shall take place in accordance with the schedule prescribed in section 1728-1.2 of this Subpart. The housing company is not, however, precluded from making application for a rental adjustment at any other time, nor is the division limited in its authority, pursuant to law, to direct the making of such application or to issue an order of the division adjusting rents consistent therewith. The procedures and time periods prescribed in section 1728-1.2 of this Subpart, except as otherwise prescribed by the division, shall, where applicable, govern such proceedings.

(c)Where necessary to carry out the policy of the Private Housing Finance Law and the policies of the Division of Housing and Community Renewal, the commissioner may modify any provision of this section or section 1728-1.2 of this Subpart.

9 NYCRR 1728-1.2 - Procedure and time schedules

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Preparation and approval of biennial budget.

(1)The company shall submit a proposed budget for the two succeeding one-year periods, in a format prescribed by the division, at least 165 days prior to the commencement of the applicable two-year period. The division shall issue to the housing company a directive requiring such submission, together with necessary forms and instructions, at least 45 days prior to such deadline.

(2)If, based on the analysis of the proposed budget, the division finds that projected revenues for the two-year period will be sufficient to fund all housing company obligations, both current and arrears, without a rental adjustment, it shall grant approval to the housing company of the two one-year budgets. Such approved budget may be as submitted by the company, as modified by the division, or as prepared by the division, as the case may be.

(3)If the division finds that projected revenues for the applicable two-year period do not appear to be sufficient to fund all obligations without a rental adjustment, or if the company has applied for such an adjustment in connection with its budget submission, then:

(i)final approval of the budget shall take place upon conclusion of the rent determination procedure as set forth in subdivision (b) of this section; and

(ii)rental housing companies' tenants' associations, whose certification by the housing company has been approved by the division, will receive advance notification from the division of such pending procedure and be advised to implement the established procedure for retaining the services of an accountant.

(4)Were none of the factors listed in paragraphs (j)(1) through (8) of this section are present, the projections by a housing company, other than a mutual housing company, do not result in an increase in rent or carrying charges that exceed the percentage increase, as indicated by the change in the regional consumer price index for all urban consumers, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, under the sub-category of “Rent of primary resident,” as established the preceding October (“CPI-U, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, Rent of Primary Residence, Not Seasonally Adjusted, 12 month percentage change for the 12 months ending October”), the division shall limit its independent projections of the proposed budget to utilities and insurance and those other budget items which in the experience of the division with such housing company:

(i)are most susceptible to significant variations within the period covered by the proposed budget; and

(ii)would have a significant effect on any adjustment to rent or carrying charges.

(b)Rent determination procedure.

(1)Upon commencement of a rent determination proceeding, pursuant to paragraph (a)(4) of this section, or as otherwise specified in section 1728-1.1 of this Subpart, the division shall transmit to the housing company, for distribution to tenants or cooperators and any registered tenant association and posting in the project in such manner as it may prescribe, material relating to the proceeding. Such material shall include, among other items, the application prepared by the company, an explanation of the right of tenants or cooperators to participate therein, and an invitation for comments to be submitted to the division. Notwithstanding any provision of paragraphs (2)-(5) of this subdivision, section 87(b) of the Private Housing Finance Law shall govern with respect to limited dividend (article IV) housing companies.

(2)The division shall establish a period of at least 30 days during which tenants or cooperators, their representatives, and other interested parties, may comment upon the proposed budget and rent revision. This period shall commence upon distribution to residents and posting in the project of the material specified in paragraph (1) of this subdivision.

(3)In order to enable tenants or cooperators to more fully and effectively participate in the rent determination process, the division shall:

(i)authorize the employment of an accountant by a recognized tenants' association of a rental housing project in connection with such process, with the housing company authorized and directed to pay for such service in accordance with a maximum fee schedule approved by the division;

(ii)assure full access on the part of tenants or cooperators or their representatives to the financial records of the company; and

(iii)schedule a conference with appropriate personnel of the division, the housing company, the tenants or cooperators, their representatives, interested public officials, and other interested parties, for discussion and analysis of the proposed rental adjustment and comments received thereon. In the event any of the parties to such conference, other than the division personnel, should make a request in writing within 15 days of the scheduled conference, the housing company shall provide and pay for a qualified interpreter for deaf persons to attend and translate for such deaf persons.

(4)Subsequent to the 30-day comment period and prior to the conference, the division will review all comments received with respect to the propriety of the proposed budget, the need for and amount of rent adjustment, the scheduling of any rent adjustment over the two-year budget period, and any other relevant issues.

(5)A rent determination shall be made unless the division otherwise orders based upon budget projections which shall take into account, among other factors, building conditions and services, economic impact on residents and marketability analysis. The determination shall be embodied in an order of the division, which shall establish rents and the effective date(s) of adjustment for each year of the two-year period.

(6)An order of the division adjusting rents shall be transmitted by the division to the housing company for distribution to the tenants or cooperators by the housing company pursuant to paragraph (7) of this subdivision. Copies of the approved budgets, reflecting the rent determination, will be issued to the housing company and posted in the project within five days of the issuance of the order.

(7)An order adjusting rents shall be transmitted by the housing company to all tenants or cooperators, in such manner as may be prescribed by the division. Such transmittal shall take place, in the case of a rental project, at least 30 days prior to the effective date of the order, and, in the case of a mutual company, at least five days prior to its effective date.

9 NYCRR 1728-1.3 - Computation of budget items

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)General.

(1)Housing companies are required to prepare budgets in accordance with schedules and accounting categories, and in formats, as specified by the division. In addition, to provide for the uniform calculation of certain items in companies' budgets, the division establishes standards and formulas for their computation and/or projection.

(2)The computation of certain major items of income and obligations is fixed by other means. Calculation of required debt service and debt service arrears is based on the debt service schedule(s) established pursuant to the terms of the mortgage(s). Other expense items, such as real estate taxes and water and sewer charges, are based on established rates and projections available from the municipality or other appropriate governmental entity.

(3)There are three basic categories of housing company income: rental income, subsidy income, and other income.

(i)Rental income consists of:

(a)the scheduled rents for all residential apartments;

(b)the scheduled rents based upon leases for commercial space and professional apartments; and

(c)the scheduled rents based upon a lease of the net number of rented parking spaces.

(ii)Subsidy income consists of subsidy payments paid to or on behalf of the housing company by the Federal, State or local government.

(iii)Other income consists of:

(a)charges for tenants' or cooperators' use of air conditioners and appliances; and

(b)surcharge income, interest income and miscellaneous income, which are projected based upon the prior year's experience unless, upon assessment by the division of changed conditions, an adjustment to such rate or amount is found to be warranted.

(b)Maintenance and operating expenses.

Projections for each category of expense shall be made by applying adjustments for inflation to current expenditures, as revised pursuant to section 1728-1.2(a)(2) of this Subpart. The inflation adjustment factors, which shall be applied to each applicable individual category of expense, are derived from the United States Department of Labor Statistics New York-Northern New Jersey Consumer Price Index for all Urban Consumers, unless otherwise specified in this section or as determined by a supply or service contract, for the period of said contract.

(c)Fuel oil.

Projected costs of fuel oil will be calculated and revised monthly by the division based on an analysis of oil prices and/or oil price futures.

(d)Electricity, gas and steam.

Costs for these utilities shall be based on actual current expenses, adjusted by amounts to cover any rate adjustments which have been granted or are reasonably expected to be granted by the New York State Public Service Commission.

(e)Contingency reserve.

Payments into the contingency reserve shall be computed according to the following schedule:

Current balance as percentage of annual residential rent roll Annual addition to reserve

Less than 10 percent 3 percent of annual rents

10 percent up to 15 percent 2½ percent of annual rents

15 percent up to 20 percent 2 percent of annual rents

20 percent up to 25 percent 1 percent of annual rents

25 percent or more No additional payments

If a company has no vacancies for the last two years and currently has a waiting list for all size apartments, the above requirements will be reduced by one half of one percent in each category. Funding of the contingency reserve shall not be required if there are debt service arrears.

(f)Replacement reserve.

(1)Current. Funding of the replacement reserve shall be based upon the division's analysis of a study of the housing company which shall be conducted by a qualified technical consultant. The requirements for the study will include a detailed physical examination of the housing company and preparation of a schedule of anticipated replacement needs and their cost. Pending the division's analysis of the funding requirements for each housing company, housing companies will be required to fund replacement reserves at the greater of:

(i)the current required annual contribution; or

(ii)0.006 of the project's original construction cost.

(2)Arrears. For purposes of computing the annual funding requirement for arrears in the replacement reserve:

(i)the required balance shall be the total of the amounts required by the division to be deposited in the replacement reserve fund from the inception of the project, plus all interest earnings credited to the replacement reserve fund; less the sum of the total amount authorized by the division as allowable charges against the replacement reserve fund, and the amount determined as the projected cost of essential corrective work which has been identified and which is eligible for funding in accordance with existing replacement schedules and guidelines. The division will provide an encumbrance form detailing the nature and estimated cost of the work;

(ii)the current available balance shall be the amount in the replacement reserve fund of the company, less the cost of the corrective work as identified in subparagraph (i) of this paragraph;

(iii)the arrears shall be the difference between the amount computed in subparagraph (i) of this paragraph and the amount computed in subparagraph (ii) of this paragraph.

(3)The annual funding requirement for arrears in the replacement reserve shall be no less than the amount computed from the following schedule:

Arrears as percentage of required balance Repayment period

25 percent up to 50 percent 6 years

50 percent up to 75 percent 5 years

75 percent or more 4 years

(4)Notwithstanding the preceding provisions of this subdivision, the annual requirement for replacement reserve arrears shall not exceed the provision for the current replacement reserve requirement used in the operating budget projection, unless the division shall otherwise determine.

(g)Working capital.

(1)Working capital is defined as the sum of:

(i)operating cash (administration fund and managing agent's cash account); and

(ii)investments made from these funds; less the sum of current accounts payable (exclusive of debt service).

(2)A budget provision to fund a working capital deficiency or, alternatively, a provision to apply a working capital surplus to partially offset a projected budget deficit is permitted subject to the following restrictions:

(i)A working capital deficit greater than one half of one month's rent, computed pursuant to the above definition, is to be funded in the first year of the budget, dependent on the extent of the deficit, such that:

(a)where the deficit exceeds one month's rental income, the budget provision will be for the amount in excess of one month's rental income, but not less than one half of one month's rental income; or

(b)if the deficit exceeds one half of one month's rental income but does not exceed one month's rental income, the provision will be for the amount in excess of one half of one month's rental income.

(3)The amount of a working capital surplus which exceeds one month's rental income may be applied in reduction of a budget deficit to the extent that such amount applied may not exceed 25 percent of the deficit, or three percent of the annual rent roll, whichever is greater.

(h)Debt service arrears.

Debt service arrears shall be funded in the budget projections at the lesser of: the total debt service arrears or an amount equal to the current debt service requirement, unless otherwise provided in an agreement restructuring the mortgage loan and approved by the division.

(i)Air conditioner and appliance charges.

The division shall periodically establish guidelines for charges for the use of various classes of appliances based upon rate and consumption data.

(j)Return on equity.

(1)Current. Within reasonable limits an annual amount for return on equity shall be provided for in the budget at the rate stated in the share certificates and/or income debentures. In the case of partnerships, the rate shall be as set forth in the schedule of estimated annual expenses and income (schedule B) used at the time the initial rents for the housing development were set and included in the mortgage closing documents.

(2)Arrears. The amount of arrears provided for in the budget shall not exceed the amount calculated for the current annual provision.

9 NYCRR 1728-1.4 - Earlier source heading: [Repealed]

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NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-1.5 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-1.6 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.1 - Books and records

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Each housing company shall keep its books and records in accordance with a chart of accounts as prescribed by the division, except those projects whose mortgages are federally insured by the Federal Housing Administration. Where mortgages are so insured, the books and records shall be kept in accordance with those requirements.

(b)Each housing company shall retain an independent certified public accountant. However, no accountant shall be engaged without prior written approval of the division. The request for approval shall state the audit procedure to be followed, the period of the engagement (ordinarily not more than one year) and the fee to be charged.

9 NYCRR 1728-2.2 - Reports

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NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Each housing company shall file with the division, in a format prescribed by the division, an annual certified statement covering its fiscal year. Certified annual reports for all housing companies shall contain a review of, or statement on, internal controls. If directed by the division, quarterly unaudited financial statements shall be submitted for the other three quarters. Each such quarterly report shall be submitted over the signature of an authorized officer of the housing company, or the signature of the managing general partner if a partnership. Each annual financial statement shall be accompanied by a certificate of the housing company's independent certified public accountant and filed within 60 days after the close of its fiscal year.

(b)Each housing company shall file with the division such other reports as the division may require from time to time.

9 NYCRR 1728-2.3 - Escrow funds and reserve funds

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NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)A bank account shall be opened in a local commercial bank insured by the Federal Deposit Insurance Corporation entitled as follows: “Name of company Operating Escrow Fund.” A letter shall be obtained from the bank acknowledging its acceptance of the account, designating the exact name of the account and stating that deposits in the bank are insured by the Federal Deposit Insurance Corporation.

(b)Checks drawn on this account shall require the signature of one of several designated officers of the housing company and the counter signature of a duly authorized officer of the division. A certified copy of the housing company's resolution opening the bank account and a photocopy of the housing company's signature card filed with the bank, shall be submitted to the division.

(c)Into this account shall be deposited monthly “Escrow Funds” equal to one twelfth of the estimated annual charges for debt service, real estate taxes, water charges, sewer rents and insurance. The amount of the monthly deposit shall be determined by the division and shall be subject to periodic review.

(d)There shall be deposited monthly into the “Operating Escrow Fund Account” an amount to cover future painting and redecorating, contingencies, vacancies and collection losses and replacements. The amount of the monthly deposit shall be determined by the division and shall be subject to periodic review. The monies in this account shall be known as “Reserve Funds.”

(e)All escrow, reserve funds and administrative funds not currently required, shall be invested. Such investments shall have the prior written approval of the division.

(f)Interest earned on all reserve fund investments shall be credited to the replacement reserve. Interest earned on escrow deposits representing debt service shall be credited to the escrow debt service account for such disposition as the division may decide. Interest earned on escrow fund investments excluding debt service investments shall be credited to operating income and may be employed for general corporate purposes.

(g)Reserve funds shall be applied and disbursed for such purposes and in such manner as the division may from time to time approve or direct.

9 NYCRR 1728-2.4 - Operating funds

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

A bank account shall be opened in a local bank insured by the Federal Deposit Insurance Corporation entitled “Name of company Administration Fund.” Into this account shall be deposited all rent receipts and other miscellaneous operating income. From this account shall be disbursed all expenses for current operations.

9 NYCRR 1728-2.5 - Payment of dividends, income debenture interest or return on equity

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

No housing company shall pay any dividends on stock, interest on income debentures or return on equity without the prior written approval of the division. In no event shall approval be granted by the division for an amount greater than the total of two years on any of the following in any one fiscal year: dividends on stock; interest on income debentures; or return on equity.

9 NYCRR 1728-2.6 - Funds of the company

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Except as otherwise permitted by this Chapter, funds of the housing company shall not be used for any purpose other than the ordinary operation of the project, without the prior written approval of the division. Corporate funds shall not be loaned or invested without the written approval of the division; no loans or advances shall be made at any time to officers, stockholders or employees.

9 NYCRR 1728-2.7 - Salaries or fees to officers or directors

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

No housing company shall pay any salaries or fees to any officer or director, without the prior written approval of the division.

9 NYCRR 1728-2.8 - Distribution of rental surcharge income

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NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

All surcharges imposed after June 30, 1981 shall be applied to the expenses of operation and management.

9 NYCRR 1728-2.9 - Reserves, sinking fund, net earnings and surplus accounts

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NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Unless otherwise permitted by the division, each housing company shall set aside out of earnings a reserve for painting and decorating in amounts approved by the division.

(b)Each housing company shall set aside reserves for replacement in the amount to be approved by the division.

(c)All reserves established out of earnings shall be segregated from earned surplus on the balance sheet. The equivalent in cash shall also be segregated from operating funds on the balance sheet, and shall be maintained in separate bank accounts.

(d)All reserve and administrative funds, of whatever nature, not required currently, shall be invested in such securities as are approved by the division.

(e)No housing company shall enter into any agreement modifying or extending the terms of any mortgage on a project, or make any prepayments on account of any such mortgage, without first obtaining the written consent of the division.

(f)Before setting up a sinking fund for the retirement of income debentures and stock, the corporation must obtain the prior written consent of the division.

(g)Surplus shall be disposed of only in accordance with the provisions of article IV of the Private Housing Finance Law.

9 NYCRR 1728-2.10 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.11 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.20 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.21 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.22 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.23 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.24 - Earlier source heading: 1728-2.24 to 1728-2.25 [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.26 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-2.27 - Earlier source heading: [Repealed]

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Current section text is not available here.

9 NYCRR 1728-4.1 - General

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Purchases and contracts for materials and services will be limited to those items needed for project operation.

(b)All purchases and contracts will be awarded on the basis of competitive analysis and bidding to the fullest extent possible. Unless otherwise directed by the division, no less than three bidders must be solicited by the housing company. The housing company shall include minority- and women-owned businesses in the solicitation of bids for which they shall be given a full and fair opportunity to participate. The housing company shall make good faith efforts, in accordance with the regulations, to select such businesses in the award of contracts and subcontracts. Housing companies shall report annually on its utilization of minority- and women-owned businesses to DHCR.

(c)All purchases and contracts should be awarded to the lowest responsible bidder. Award to other than lowest responsible bidder must be supported and documented in files maintained by the housing company and shall be made available to the division on request. Where approval by the division is required for the purchase or contract, such documentation must be provided to the division at the time of submission for division approval of the purchase or contract.

9 NYCRR 1728-4.2 - Purchases and contracts of less than $100,000

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Prior approval by the division is not required for purchases or contracts of less than $100,000. Documentation of analysis and bidding for such purchases or contracts required by section 1728-4.1 of this Subpart shall be made available to the division on request.

(b)Any change in the scope, price, or time of completion shall be made by a change order detailing the change, indicating whether cost is affected and, if it is, the amount of increase or decrease. Documentation of change orders for such purchases or contracts shall be made available to the division on request. Division approval is required if such change order brings the total purchase or contract cost to $100,000 or more.

(c)Proof of progress payments supporting documentation evidencing the propriety of such payment, including sign offs by any design professional retained by the housing company, shall be made available to the division on request.

9 NYCRR 1728-4.3 - Purchases and contracts of $1000,000 or more

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Prior approval by the division is required for purchases or contracts of $100,000 or more in accordance with the following:

(1)Notification of intent to solicit bids, on a form supplied by the division, together with a detailed preliminary description of the items to be purchased or work to be contracted and estimated costs will be provided to the division for review and approval no less than 30 days before the projected date of such solicitation.

(2)The housing company's recommendation for award of contract will be forwarded to the division for review and approval prior to award, together with:

(i)a listing of all bidders solicited;

(ii)a tabulation of all bids received;

(iii)copies of all bids received; and

(iv)a certification by each bidder on a form prescribed by the division, which discloses whether any board member, general partner, officer or employee of the housing company, and/or principal or employee of the managing agent, has or have a direct or indirect interest in the bidder or in the compensation to be received by the bidder pursuant to the proposed contract, and the nature of that interest and a questionnaire regarding prior experience and performance. Failure to accurately and fully complete this certification and the questionnaire may result in such penalties as are provided by law, result in the rejection of the bid, or termination of any contract and may be taken into consideration by the division in evaluating any future bid by such bidders.

(b)Upon approval by the division, the housing company will award the purchase or contract, with two copies of the executed contract being forwarded to the division for its files.

(c)The housing company's counsel will indicate on contracts of $100,000 or more that counsel has reviewed the bids and contract documents. Such review shall include review for compliance with the requirements of this Subpart.

(d)Any change in the scope, price, or time of completion will be made by a change order detailing the change, indicating whether cost is affected and, if it is, the amount of increase or decrease. Division approval is required for any such change order.

(e)Proof of progress payments with supporting documentation evidencing the propriety of such payment, including sign offs by any design professional retained by the housing company, shall be made available to the division on request, provided, however, that:

(1)no more than 75 percent of the full contract may be paid without prior division approval; and

(2)the division must approve any final payment.

9 NYCRR 1728-4.4 - Occasional and continuing contracts and purchases

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Any purchases, commitments, and contracts for occasional and continuing requirements which, based on the projections for the period of the most recently approved budget would result in an average annual expenditure of $100,000 or more, must comply with section 1728-4.3 of this Subpart unless otherwise approved by the division.

9 NYCRR 1728-4.5 - Professional service contracts for architects, engineers, landscape architects, and environmental consultants

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

(a)Where the professional fee is anticipated to be $25,000 or more, the consultant must be solicited through a request for proposals. Such request for proposals shall be supported by documentation which describes the scope of services to be provided, the funding source, solicitation methodology, and listing of the professional firms that will be solicited. Any resulting contract is subject to prior approval by the division. Subsequent to award, any change in the scope or price of the professional fee is subject to approval by the division.

(b)Where the professional fee is not anticipated to exceed $25,000 a request for proposals is not required. Documentation describing the process of consultant selection shall be maintained on file by the housing company and shall be made available to the division upon request of the division. Subsequent to award, any change in price which will increase the professional fee to more than $25,000 subject to approval by the division.

9 NYCRR 1728-4.6 - Contract documents

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Notwithstanding the value of the purchase or contract, where any work involves the integrity of the building structure, building system, or site component, contract documents including plans or specifications for such work must be prepared by a licensed and currently registered engineer, architect, and landscape architect specializing in the field for such work. Such contract documents must be reviewed by the division prior to the execution of any purchase or contract by the housing company.

9 NYCRR 1728-4.7 - Identity of interest

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Notwithstanding any other provision of this Chapter, any contract, purchase, or commitment which involves an identity of interest under sections 1725-6.1 or 1725-1.4 of Title requires prior division approval of the contract and solicitation of bidders.

9 NYCRR 1728-4.8 - Commitments in need of further supervision

Later State Register activity may affect this section.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Where the division determines that a specific contract, purchase, or commitment, or category of purchase, contract, progress payment, or commitment requires additional supervision, the division may order that a housing company follow alternative procedures for review and approval than otherwise required by this Subpart.

9 NYCRR 1728-4.9 - Refinancing and preservation transactions

Later State Register activity may affect this section.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Where a housing company refinances pursuant to Part 1760 of this Title with a private lender that has its own procedures and safeguards to assure appropriate use of its funds with respect to any improvements it is funding, the division may upon written agreement with the lender modify the applicability of procedures pursuant to the Subpart in light of such supervision. Where a housing company participates in a preservation transaction pursuant to Part 1760 of this Title involving supervision of contracts, commitments, purchases, or other matters through another set of governmental procedures, the division may by written agreement modify the applicability of its procedures pursuant to the requirements of this Chapter in light of such supervision.

9 NYCRR 1728-4.10 - Grant contracts

Later State Register activity may affect this section.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Where a contract, purchase or commitment is funded in whole or in part by a grant administered by the division, notwithstanding any provision of this Chapter, it must be bid, approved and reviewed by the division in accordance with any requirements set forth in the grant documents.

9 NYCRR 1728-5.1 - Inventory control

Later State Register activity may affect this section.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Inventory records will be maintained for appliances, office and maintenance equipment, tools and similar project property of a nonexpendable nature having a unit cost of $500 or more.

9 NYCRR 1728-6.1 - Disposal of excess equipment and supplies

Later State Register activity may affect this section.

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Dates and status

NYCRR title agency: Executive Department
Section status: Section source receipt
Source version current through: Sep 15, 2021

Equipment and supplies which are no longer needed or useful to the housing company should be disposed of as quickly as possible.

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