N.Y. Comp. Codes R. & Regs. tit. 9 § 2040.5
The division shall require the owners of projects which receive a credit allocation after 1989 to execute a regulatory agreement. The regulatory agreement must be recorded as a restrictive covenant which runs with the land and returned to the division after recording (prior to the issuance of the final credit allocation). The regulatory agreement shall be made available for public inspection at the rental office of the owner and referenced in all marketing materials and a copy, or a division approved summary thereof, attached to the lease of each low-income unit.
The regulatory agreement shall specify, for the low-income portion of the building(s) that: the agreement shall be binding on all successors of the owner; the owner agrees to be bound by any regulations duly promulgated by the division or the Federal government for projects receiving low-income housing credits; the owner shall disclose the restricted rent for a dwelling unit to the prospective tenant prior to the execution of a lease; the owner shall secure from the tenant such information as is reasonably necessary to annually verify income; the owner shall address any citations for building code violations made by a municipality within 90 days of receipt; the owner shall ensure that the applicable fraction, as defined in the code, for the building for each taxable year in the extended use period will not be less than the applicable fraction specified therein; the owner shall consent to enforcement in any State court of the extended use requirement by any income eligible person; the owner shall annually submit a certification to DHCR stating that the building(s) is (are) owned and operated in compliance with the provisions of the code and any regulations promulgated thereunder, and provide such other information as the division may deem necessary; and the owner shall not retaliate against any tenant who notifies the division of alleged violations of the regulatory agreement. The extended use agreement shall include an agreement to waive any right to request a qualified contract and provide that the extended use period will not be subject to early termination pursuant to the qualified contract provisions as defined in section 42(h)(6)(F) of the code. The extended use agreement shall contain a provision which states that the agreement shall not be terminated if ownership is transferred by foreclosure or by a deed-in-lieu of foreclosure as a result of any action to collect debt which is owed to any entity which at any time after the issuance of a final credit allocation had any ownership interest in the project.
This section only applies to projects in which the project owner has a regulatory agreement executed by the division which specifically grants the right to request a qualified contract. The owner may request only in writing, by certified mail to DHCR to the attention of the LIHTC monitoring officer, that DHCR produce a qualified contract from a buyer who will continue to operate the building(s) for low-income use. A request for a qualified contract shall be an irrevocable offer to sell during the applicable one-year period. If DHCR presents a qualified contract during the above one-year period, such qualified contract shall confer upon the buyer an exclusive right to purchase the project. For the purpose of determining the value of a qualified contract, "cash distributions from (or available for distribution from) the project" as set forth in the code shall include management incentive fees paid or due to anyone who at any time after the issuance of a final credit allocation had any ownership interest in the project. DHCR will specify the checklist of items required to be submitted as part of a request for a qualified contract. A nonrefundable fee, in an amount determined by DHCR, is due upon submission of a request for a qualified contract. The owner shall be required to pay for any services reasonably determined by DHCR to be necessary for the technical review of a request for a qualified contract by an accountant, appraiser or other relevant expert.
N.Y. Comp. Codes R. & Regs. Tit. 9 § 2040.5