N.Y. Comp. Codes R. & Regs. tit. 9 § 2040.10

Current through Register Vol. 46, No. 53, December 31, 2024

Section 2040.10 - Notification of noncompliance

In addition to any other remedies which may be available, in accordance with the requirements of the code, the division shall notify project owners and the IRS of noncompliance with any of the above requirements or failure to submit any owner certification required by this plan as follows:

(a) The division shall provide prompt written notice to the owner of a low-income housing project if the division does not receive the certification described in section 2040.8 of this Part or does not receive, or is not permitted to inspect, the tenant income certifications, supporting documentation, and rent records described in section 2040.7 of this Part, or discovers upon inspection, review, or in some other manner, that the project is not in compliance with the provisions of the code.

(b) The division shall file a "Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition," (the "form"), and/or provide such other notification as required by the code, with the IRS no later than 45 days after the end of the correction period (as described in subdivision [c] of this section, including such extensions of time granted by the division for correction) and no earlier than the end of the correction period, whether or not the noncompliance or failure to certify is corrected; and shall explain on the form the nature of the noncompliance or failure to certify and indicate whether the owner has corrected the noncompliance or failure to certify. Any change in either the eligible basis or applicable fraction under section 2040.8(b)(2)(vii) and (viii) of this Part respectively, that results in a decrease in the qualified basis of the project under code section 42(c)(1) is noncompliance that must be reported to the IRS. If the division reports on the form that a building is entirely out of compliance and will not be in compliance at any time in the future, the division need not file the form in subsequent years to report that building's noncompliance. (The division shall file the form with the IRS to report a sale of a project and/or building for which the low-income housing credit is, or has been allowable at any time.) If the noncompliance or failure to certify is corrected within three years after the end of a correction period, the division shall file the form with the IRS reporting the correction of the noncompliance or failure to certify.

(c) The division shall provide the owner a correction period in which to cure a failure to certify or event(s) of noncompliance. The correction period shall not exceed 90 days from the date the division sends a notification of noncompliance. The division may extend the correction period for up to six months if, in its sole discretion, the division determines there is good cause for granting the extension.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 2040.10

Amended New York State Register May 26, 2021/Volume XLIII, Issue 21, eff. 5/26/2021