N.Y. Comp. Codes R. & Regs. tit. 9 § 1644-2.4

Current through Register Vol. 46, No. 25, June 18, 2024

Section 1644-2.4 - Allocation of interest charges to related programs

(a) Related programs comprise offsite clearance, rehabilitation, and relocation of buildings. Interest charges on funds borrowed or earmarked for related programs are capitalized as a development cost and charged to the cost of those programs. Such programs may extend beyond the date of substantial completion, into the operating period of the project proper. Local agencies conducting such programs in connection with the development of the project proper will therefore find it necessary to charge interest, in the first instance, to account 1420.1, Interest Expense, and to account 4716, Interest on Indebtedness, whichever is applicable, and then by journal voucher, credit the expense accounts and charge the appropriate development cost accounts (1440.16, Offsite Clearance; 1440.17, Rehabilitation and 1440.18, Relocation of Buildings). For funds borrowed prior to the issuance of housing bonds by the State, the allocation of the interest charges is in the proportion of the amount requisitioned for the related program on the most recent approved certificate of purposes (form DH-216) to the total amount borrowed for all purposes.

(b) For funds borrowed subsequent to the issue of housing bonds, the interest on the funds representing the bond issue proceeds is allocated to the related program in the proportion of the amount borrowed for the related program on the bond sale budget to the total amount of the bond issue borrowed for all purposes. Should temporary loan notes be outstanding simultaneously with the bond issue, the interest on the temporary loan notes is allocated in the same manner as the interest on temporary loan notes issued prior to the issuance of housing bonds.

(c) The allocation of interest charges to the rehabilitation program and relocation of buildings program should continue to be made until the programs are liquidated and closed out. The allocation of interest should continue to be made to the offsite clearance program until the project proper is declared substantially completed or the offsite program is liquidated, whichever is earlier. Upon the date of substantial completion of the project proper, the allocation of interest to the offsite program shall cease and all interest on all borrowed funds shall be charged to operations. A transfer of funds from the development fund to the administration fund shall further be required for interest allocable to related programs and paid out of the administration fund.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1644-2.4