9 NYCRR 1750.10

Upon review of the physical condition survey submitted by the housing company pursuant to section 1750.3(a)(15) of this Part, the division shall determine if the survey is sufficient and properly addresses the needs of the property which must be resolved prior to the dissolution, and if the plans submitted by the housing company are sufficient to meet the needs of the housing project. The housing company shall specify its plans to correct any defective conditions and to replace any and all items and equipment which are obsolete or have reached the end of their useful life or are projected to end their useful life within the next five years, and the amounts to be expended therefor. Upon the approval by the division of the corrective work plan and costs thereof, appropriate funds shall be released upon dissolution from the operating and replacement reserve escrow accounts and deposited into a special escrow account under the exclusive jurisdiction of a fiduciary agent, to be used exclusively to effectuate the corrective work plan. Additionally, the division may order that work be performed and that monies be escrowed therefor. None of the corrective work performed pursuant hereto shall qualify for an increase in rent pursuant to section 2502.4 of the Emergency Tenant Protection Regulations or section 2522.4 of the Rent Stabilization Code.