9 NYCRR Part 1901 - Executive Department

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Source version current through Sep 15, 2021

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9 NYCRR 1901.1 - Applicant eligibility

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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)Other than individuals or municipalities, an applicant must have been in existence as a bona fide organization for at least one full year prior to the date of application and have as one of its primary purposes the improvement of housing for persons of low income, including but not limited to activities which are designed to construct, maintain, preserve, repair, renovate, upgrade, improve, modernize, rehabilitate or otherwise prolong the useful life, and to manage and coordinate the construction and rehabilitation of residential property. In cases of partnerships, the existence of a partner who has controlling interest in the partnership or its parent may be used to determine the partnership's term of existence, if that partner or its parent would otherwise qualify as an eligible applicant. In cases of a wholly owned subsidiary which would otherwise be eligible, the term of its parent may be used to determine the subsidiary's term of existence, if that parent itself would qualify as an eligible applicant. Private developers are not required to have as a primary purpose the improvement of housing for persons of low income.

(b)An eligible recipient must have been a person of low income in the year prior to application to reside in the project.

(c)In the case of a shared housing project, each person or family whose occupancy is to be based on a separate lease or title of ownership shall be considered a separate applicant.

9 NYCRR 1901.2 - Conflict 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

(a)The following are restricted from holding voting board membership, serving as officers of the applicant and/or staff management positions, except where otherwise required by statute:

(1)State legislators and members of their staffs who hold policymaking positions;

(2)commissioners and chairpersons of State departments and their deputies and assistants (including members or directors of public authorities, public benefit corporations, boards, commissions and councils);

(3)staff of the Division of Housing and Community Renewal;

(4)statewide elected officials, including the Governor, Lieutenant Governor, Attorney General and Comptroller, and members of their staffs who hold policymaking positions;

(5)chief executive officials and members of the legislative bodies of counties having a population of 275,000 or more, within which the project is located, or cities, towns and villages having a population of 20,000 or more, within the county in which the project is located, except where board membership for such persons is mandated by other relevant Federal or State statutes; and

(6)political party chairpersons, party organization leaders and members of their executive committees in the State, counties having a population of 275,000 or more, within which the project is located, or cities, towns and villages having a population of 20,000 or more, within the county in which the project is located.

(b)The following shall not receive any compensation whatsoever from a recipient organization, directly or indirectly, for services or goods rendered to such organization unless the goods or services are provided pursuant to an award or contract let, unless otherwise required, after a good faith effort to obtain competitive prices is made, the results of which were reported in writing prior to the award of the contract and were approved by the Housing Trust Fund Corporation, which approval shall be based on comparison to arm's length transactions and the needs of the project:

(1)State legislators and members of their staffs who hold policymaking positions;

(3)staff of the Division of Housing and Community Renewal;

(4)statewide elected officials, including the Governor, Lieutenant Governor, Attorney General and Comptroller, and members of their staffs who hold policymaking positions;

(5)chief executive officials and members of the legislative bodies of counties, cities, towns and villages in which county the project is located;

(6)political party chairpersons, party organization leaders and members of their executive committees in the State, counties, cities, towns and villages in which county the project is located;

(7)voting board members and officers, except for salary payments of officers which shall require the approval of the corporation, which approval shall be granted if the duties assigned to the officer correspond to duties normally assigned to an executive director;

(8)staff members of the recipient organization, except for salary payments;

(9)the immediate families of persons in paragraphs (1)-(8) of this subdivision; and

(10)any firm, association, corporation or partnership in which any individual listed in subdivision (a) or (b) of this section holds an interest of 10 percent or more.

(c)These provisions apply to all persons and entities whether or not their involvement with, or compensation from, a recipient organization is related to the project funded pursuant to this program.

9 NYCRR 1901.3 - Property eligibility

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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)A residential property is eligible if at the time of the application it is vacant or underoccupied.

(b)A nonresidential property is eligible if it is completely vacant at the time of application.

(c)A site is eligible if residential construction is feasible at the time of application.

9 NYCRR 1901.4 - Area eligibility

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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)An eligible area may have an existing designation or must meet the criteria which establishes an area as an eligible area under the act and these regulations.

(b)An eligible area is one that is blighted, deteriorated, or deteriorating, or has a blighting influence on the surrounding area, or is in danger of becoming a slum or a blighted area because of the existence of substandard, unsanitary, deteriorating or deteriorated conditions, an aged housing stock, or vacant nonresidential property, or other factors indicating an inability or unwillingness of the private sector, unaided, to cause the rehabilitation or conversion which is sought for under the act.

(c)Designated eligible area, for the purposes of these regulations, are areas which are designated pursuant to any Federal, State or local law, rules or regulations as blighted, deteriorated or deteriorating or as having a blighting influence on the surrounding area or as being in danger of becoming a slum or blighted area. The designations that will meet the criteria set forth in this section, include but are not limited to the following:

(1)areas which are designated under articles 15 and 16 of the General Municipal Law (the Urban Renewal Law and the Urban Development Action Area Act);

(2)areas which are designated by the Secretary of Housing and Urban Development of the United States as areas where concentrated housing, physical development and public service activities are being or will be carried out in a coordinated manner, pursuant to a locally developed strategy for neighborhood improvement, conservation and preservation;

(3)census tracts in which at least 70 percent of the families have an income which is 80 percent or less of the statewide median family income;

(4)areas of chronic economic distress as designated by the State and as approved by the Secretary of the Treasury and the Secretary of Housing and Urban Development of the United States;

(5)neighborhoods in which neighborhood preservation activities are being carried out pursuant to article 16 of the Private Housing Finance Law (Neighborhood Preservation Companies);

(6)rural preservation and revitalization regions subject to the provisions of articles 17, 17-A and 17-B of the Private Housing Finance Law (Housing and Community Preservation in Rural Areas, Rural Rental Assistance Program for Rural Areas and Rural Area Revitalization Projects);

(7)neighborhood where median income does not exceed 80 percent of the median income of the Metropolitan Statistical Area (MSA) in which the neighborhood is located, or that does not exceed 80 percent of the median income in the county, if such county is not part of a MSA. (For purposes of this paragraph, neighborhood means an area that surrounds a project and tends to determine along with the condition and quality of the project, selling prices and/or rent levels of housing units); and

(8)economic opportunity zones.

(d)In addition, if a municipality in which the area is located designates, by the chief executive officer or the appropriate legislative body, that the area is blighted, deteriorated or deteriorating, or has a blighting influence on the surrounding area, or is in danger of becoming a slum or a blighted area because of the existence of substandard, unsanitary, deteriorating or deteriorated conditions, an aged housing stock, or vacant nonresidential property, or other factors indicating an inability or unwillingness of the private sector, without governmental assistance, to cause the rehabilitation or conversion to be contracted for under the act, such area is, for the purposes of these regulations, an eligible area.

(e)An area is eligible for new construction if it otherwise satisfies the criteria of this section and it is also, at the time of application, located in an area in which rehabilitation opportunities are limited or where new construction would prove to be more effective as determined by the corporation.

9 NYCRR 1901.5 - Eligible construction, rehabilitation and conversion costs

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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)The eligible costs of a Housing Trust Fund project shall be the actual and necessary cost of construction, rehabilitation or conversion, including but not limited to:

(1)construction and rehabilitation costs such as labor, materials, construction manager or contractor's fees and charges, site preparation and demolition;

(2)architectural, engineering or related professional services required in the preparation of construction or rehabilitation plans and drawings or write-ups, or in the inspection of construction of the project, whether performed by the applicant or outside consultants;

(3)costs of obtaining the construction or rehabilitation financing for a project, such as public or private lender origination fees, credit reports, fees for title searches, fees for recording and filing of legal documents, building permits, attorneys' fees, private appraisal fees and fees for an independent construction or rehabilitation cost estimates;

(4)fees charged by a public or private lender associated with the disbursement of funds;

(5)necessary and reasonable costs of temporarily relocating tenants who are displaced by the rehabilitation activities;

(6)the cost of acquisition of property, including fees for the title search, title insurance, fees for recording and filing of legal documents, attorney's fees, or private appraisal fees; however, said costs shall not exceed 25 percent of the payment, grant or loan;

(7)carrying costs during the period of construction, rehabilitation or conversion, such as interim financing, insurance, taxes, sewer, water rents or user charges;

(8)working capital fund to be used for startup expenses, including but not limited to liability insurance, fidelity bond premiums, utility hook-up deposits, maintenance equipment, movable furnishings and equipment and other initial project related expenses as determined by the corporation;

(9)replacement reserve to be used for capital improvements and repairs;

(10)fees charged by local program administrators for project-related technical services rendered on behalf of the project recipient; and

(11)annual independent audit of project funds.

(b)Payments, grants or loans hereunder received for the construction, rehabilitation or conversion of a project may be used for acquisition, but the amount used for this purpose shall be limited to 25 percent of such payments, grants or loans.

(c)Payments, grants or loans hereunder may not be used by the project recipient, local program administrator, or subrecipient for general administrative costs.

(d)Payments, grants or loans hereunder may not be used by the project recipient, local program administrator, or subrecipient for the cost of construction, conversion or rehabilitation of residential units which will subsequently be occupied by persons other than persons of low income.

(e)Payments, grants or loans hereunder may not be used by the project recipient, local program administrator, or subrecipient for the cost of construction, conversion or rehabilitation of units or space which is occupied or will subsequently be occupied for other than residential purposes.

(f)None of the assistance awarded hereunder shall be used for common elements which exclusively benefit the nonresidential space. Eligible costs shall include only that portion of the costs of construction, rehabilitation or conversion of shared common elements attributable to the residential purposes of the project.

(g)Eligible costs shall be limited to those necessary to the efficient construction, rehabilitation or conversion of the project, with reasonable provisions for cost containment. All units assisted hereunder within a project shall be similarly constructed, rehabilitated or converted without unreasonable or excessive improvements to any individual unit.

9 NYCRR 1901.6 - Eligibility of underoccupied residential property -special requirements

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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)All units in a building containing an underoccupied residential property project, but which are not a part of said project, shall meet the requirements of the State Uniform Fire Prevention and Building Code and local building codes which have determined to be more stringent.

(b)An underoccupied residential property project may substitute an apartment in the building of the project which is not a part of the project provided that the apartment is comparable.

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