N.Y. Comp. Codes R. & Regs. tit. 9 § 1728-1.2

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

Section 1728-1.2 - Procedure and time schedules

(a) Preparation and approval of biennial budget.

(1) The company shall submit a proposed budget for the two succeeding one-year periods, in a format prescribed by the division, at least 165 days prior to the commencement of the applicable two-year period. The division shall issue to the housing company a directive requiring such submission, together with necessary forms and instructions, at least 45 days prior to such deadline.

(2) If, based on the analysis of the proposed budget, the division finds that projected revenues for the two-year period will be sufficient to fund all housing company obligations, both current and arrears, without a rental adjustment, it shall grant approval to the housing company of the two one-year budgets. Such approved budget may be as submitted by the company, as modified by the division, or as prepared by the division, as the case may be.

(3) If the division finds that projected revenues for the applicable two-year period do not appear to be sufficient to fund all obligations without a rental adjustment, or if the company has applied for such an adjustment in connection with its budget submission, then:

(i) final approval of the budget shall take place upon conclusion of the rent determination procedure as set forth in subdivision (b) of this section; and

(ii) rental housing companies' tenants' associations, whose certification by the housing company has been approved by the division, will receive advance notification from the division of such pending procedure and be advised to implement the established procedure for retaining the services of an accountant.

(4) Were none of the factors listed in paragraphs (j)(1) through (8) of this section are present, the projections by a housing company, other than a mutual housing company, do not result in an increase in rent or carrying charges that exceed the percentage increase, as indicated by the change in the regional consumer price index for all urban consumers, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, under the sub-category of "Rent of primary resident," as established the preceding October ("CPI-U, New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, Rent of Primary Residence, Not Seasonally Adjusted, 12 month percentage change for the 12 months ending October"), the division shall limit its independent projections of the proposed budget to utilities and insurance and those other budget items which in the experience of the division with such housing company:

(i) are most susceptible to significant variations within the period covered by the proposed budget; and

(ii) would have a significant effect on any adjustment to rent or carrying charges.

(b) Rent determination procedure.

(1) Upon commencement of a rent determination proceeding, pursuant to paragraph (a)(4) of this section, or as otherwise specified in section 1728-1.1 of this Subpart, the division shall transmit to the housing company, for distribution to tenants or cooperators and any registered tenant association and posting in the project in such manner as it may prescribe, material relating to the proceeding. Such material shall include, among other items, the application prepared by the company, an explanation of the right of tenants or cooperators to participate therein, and an invitation for comments to be submitted to the division. Notwithstanding any provision of paragraphs (2)-(5) of this subdivision, section 87(b) of the Private Housing Finance Law shall govern with respect to limited dividend (article IV) housing companies.

(2) The division shall establish a period of at least 30 days during which tenants or cooperators, their representatives, and other interested parties, may comment upon the proposed budget and rent revision. This period shall commence upon distribution to residents and posting in the project of the material specified in paragraph (1) of this subdivision.

(3) In order to enable tenants or cooperators to more fully and effectively participate in the rent determination process, the division shall:

(i) authorize the employment of an accountant by a recognized tenants' association of a rental housing project in connection with such process, with the housing company authorized and directed to pay for such service in accordance with a maximum fee schedule approved by the division;

(ii) assure full access on the part of tenants or cooperators or their representatives to the financial records of the company; and

(iii) schedule a conference with appropriate personnel of the division, the housing company, the tenants or cooperators, their representatives, interested public officials, and other interested parties, for discussion and analysis of the proposed rental adjustment and comments received thereon. In the event any of the parties to such conference, other than the division personnel, should make a request in writing within 15 days of the scheduled conference, the housing company shall provide and pay for a qualified interpreter for deaf persons to attend and translate for such deaf persons.

(4) Subsequent to the 30-day comment period and prior to the conference, the division will review all comments received with respect to the propriety of the proposed budget, the need for and amount of rent adjustment, the scheduling of any rent adjustment over the two-year budget period, and any other relevant issues.

(5) A rent determination shall be made unless the division otherwise orders based upon budget projections which shall take into account, among other factors, building conditions and services, economic impact on residents and marketability analysis. The determination shall be embodied in an order of the division, which shall establish rents and the effective date(s) of adjustment for each year of the two-year period.

(6) An order of the division adjusting rents shall be transmitted by the division to the housing company for distribution to the tenants or cooperators by the housing company pursuant to paragraph (7) of this subdivision. Copies of the approved budgets, reflecting the rent determination, will be issued to the housing company and posted in the project within five days of the issuance of the order.

(7) An order adjusting rents shall be transmitted by the housing company to all tenants or cooperators, in such manner as may be prescribed by the division. Such transmittal shall take place, in the case of a rental project, at least 30 days prior to the effective date of the order, and, in the case of a mutual company, at least five days prior to its effective date.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1728-1.2