Disposition of Residential Property Developed or Rehabilitated by a City Loan

RCNY tit. 28, ch. 22

in effect

28 RCNY § 22-01 Definitions.

§ 22-01 Definitions. Building. "Building" shall mean any residential building (including the land in the tax lot) which is owned by the City, managed by HPD and which, prior to entering City ownership, was either developed or rehabilitated through a City loan program. City. "City" shall mean the City of New York. Commissioner. "Commissioner" shall mean the Commissioner of HPD or his or her designee. Disposition. "Disposition" shall mean the sale of a Building to a Permanent Owner. Disposition Rent. "Disposition Rent" shall mean the rent established by HPD for a Building prior to its return to private ownership. HPD. "HPD" shall mean the Department of Housing Preservation and Development of the City of New York. Laws. "Laws" shall mean any and all applicable laws, ordinances, orders, rules and/or regulations. Permanent Owner. "Permanent Owner" shall mean the person or entity which shall own a Building after Disposition. Rules. "Rules" shall mean this subchapter. Tenants. "Tenants" shall mean authorized residential tenants of record. Occupants such as squatters and licensees are not Tenants.

28 RCNY § 22-02 General.

§ 22-02 General. (a) Coverage. These Rules govern the procedures for restructuring rents in Buildings, providing notices to Tenants and the Disposition of Buildings to Permanent Owners. (b) Program description. HPD will select qualified Permanent Owners to acquire Buildings owned by the City.

28 RCNY § 22-03 Selection of Permanent Owners.

§ 22-03 Selection of Permanent Owners. HPD may select a Permanent Owner for a Building by any appropriate method, including, but not a limited to sealed bid sale or auction, a request for qualifications process, a request for proposals process, a request for offers or, in the discretion of HPD, by a direct designation of an entity judged by HPD to be a suitable Permanent Owner. HPD, in selecting a Permanent Owner, may consider any relevant factors, including, but not limited to, the prospective Permanent Owner's prior record in other City housing programs as a property owner or manager or the Permanent Owner's status as an organization formed by the Tenants in the Building.

28 RCNY § 22-04 Rent Setting.

§ 22-04 Rent Setting. (a) Establishment of disposition rent. HPD may establish a Disposition Rent for each dwelling unit in a Building based upon the estimated cost of (i) operating the Building in private ownership, and (ii) the repayment of City investment in the Building, including, but not limited to, any City investments during City ownership and any City loan prior to City ownership. The Disposition Rent per dwelling unit shall reflect the expenses for the Building for the first year following disposition. Such expenses may include, but shall not be limited to: allowances for vacancies, debt service coverage, debt service, fuel, common space utilities, repair and maintenance, cleaning supplies, insurance, custodial services, management fees, professional services, operating reserve, capital replacement reserve, real estate taxes, return on equity, anticipated capital repairs and water and sewer charges. The expenses shall be projected by HPD based on its experience and knowledge of the operation of similar buildings. (b) Notice of opportunity to comment. Prior to establishment of the Disposition Rent, HPD shall notify the Tenants of the proposed amount of the Disposition Rent and afford them a thirty (30) day opportunity to submit written comments to HPD. (c) Notice of disposition rent. Once a Disposition Rent has been established, HPD shall send a written notice of the amount of the Disposition Rent to all Tenants at least thirty (30) days before the effective date of the new Disposition Rent. The notice of Disposition Rent may be combined with any notice of Disposition.

28 RCNY § 22-05 Disposition to Permanent Owner.

§ 22-05 Disposition to Permanent Owner. (a) Notice of disposition. HPD shall send a notice of Disposition to Tenants of a Building advising them of the contemplated sale to the Permanent Owner at least thirty (30) days prior to Disposition. The notice shall provide the Tenants with the name, address, telephone number and contact person for the Permanent Owner. (b) Post-sale registration. Immediately following Disposition, the Permanent Owner shall register all units in a Building with the New York State Division of Housing and Community Renewal if required by applicable law.

28 RCNY § 22-06 Miscellaneous Provisions.

§ 22-06 Miscellaneous Provisions. (a) HPD discretion. All determinations to be made by HPD in accordance with these Rules shall be in the sole discretion of HPD. (b) Statutory authority not limited. Nothing in these Rules shall be deemed to limit HPD's authority pursuant to any applicable Laws. (c) Method of notification. Notification shall be in English and Spanish and shall be either posted in a common area of the Building and affixed to or placed under each apartment door of the Building, or mailed to every apartment in the Building, as determined by HPD. (d) Technical violation and other variances. Provided that there has been a good faith effort to comply with these Rules, technical violations of these Rules shall not invalidate any action taken pursuant to these Rules, nor shall such technical violations give rise to any rights, claims or courses of action. The Commissioner, upon good cause shown, may alter the timing or sequence of the actions described in these Rules, provided all affected parties are given reasonable notice.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-56821Fetched: 10/24/2026