Supervision by the Department.
28 RCNY § 2-07
in effect§ 2-07 Supervision by the Department.
(a) Power to inspect and investigate.
(1) Covenant on inspection and investigation. No loan shall be made unless the owner covenants in writing that so long as any part of the loan shall remain unpaid:
(i) All persons operating or managing the multiple dwelling will permit the duly authorized officers, employees, agents or inspectors of the Department to enter in or upon and inspect such multiple dwelling at all reasonable hours; and
(ii) The Department by its duly authorized representatives shall have full power to investigate into and order the owner of the multiple dwelling to furnish such reports and information as the Department may require concerning the rehabilitation or improvement and the management of the multiple dwelling, and shall have full power to audit the books of the owner with respect to such matters.
(2) Nature of inspection. In addition to any other inspections authorized by law, the Department may make periodic inspections of the building so long as any monies remain unpaid on the loan. Such inspections shall be for the purpose of inspecting the condition and maintenance of the building, including its utilities, fixtures and equipment. Copies of any inspection reports shall be made available to the owner with recommendations for corrective measures where necessary. Representatives of the Department may periodically visit the building for the purpose of conferring with tenants and, where necessary, serving as a liaison or intermediary on landlord-tenant problems.
(b) Annual statement of income and expenses.
(1) No loan shall be made unless the owner covenants in writing that so long as any part of the loan shall remain unpaid the owner shall submit to the Department annually, in such form as shall be approved by the Department, a statement of the income and expenses of such multiple dwelling. The statement of income shall include, but is not limited to, the monthly rent of each residential apartment and the rent controlled or rent stabilized status of each unit.
(2) The annual statement shall cover the twelve month period ending June 30th or such other period approved by the Department, and shall be submitted within ninety days after the close of such period. The Department, in its discretion, may require submission of statements of income and expenses on a more frequent basis.
(3) On five days' notice, the books and records of the owner relative to the premises shall be made available to representatives or agents of the Department for review, examination or audit.
(c) Failure to comply with regulations. Upon failure or refusal of an applicant, owner or mortgagor to comply with this chapter (and all applicable rules and regulations promulgated by the governmental authority providing funds for the rehabilitation or improvement), such applicant, owner or mortgagor in addition to the imposition of any civil or criminal penalties provided by law, may be disqualified by the Department from applying for or receiving a loan under this Program or other programs of the Department for up to three (3) years following the date of any such refusal or failure. These rules and regulations shall be enforceable by the governmental authority providing funds for the rehabilitation or improvement as well as by the City.
(d) Waiver. The Department may waive any of this chapter where the nature of the rehabilitation or improvement or other circumstances warrant such exception. Any waiver to be effective shall require the written approval of the Commissioner or his designee and shall include a specific statement of the reason(s) for such waiver.
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/0-0-0-53674Fetched: 10/24/2026