N.Y. Comp. Codes R. & Regs. tit. 9 § 2040.7

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

Section 2040.7 - Monitoring and administration

(a)Applicability.

The following monitoring and administration sections apply to all buildings for which the low-income housing credit determined under the code is, or has been, allowable at any time.

(b)LIHTC monitoring officer.

All DHCR administrative functions related to the operation of qualified low-income buildings shall be the responsibility of the monitoring officer who, unless otherwise designated by the commissioner, shall be the Assistant Commissioner for Housing Operations or their designee. The monitoring officer will be responsible for enforcing all regulatory agreements and reporting noncompliance to the IRS. All correspondence and/or legal notices should be addressed to the attention of the LIHTC monitoring officer.

(c)Administrative fees.

The division may establish reasonable and necessary fees to effectively administer the program including, but not limited to, an annual monitoring fee, as set forth in the project regulatory agreement.

(d)Required staff training.

(1) The agency mandates applicants to require management staff administering any project which may receive an allocation of LIHTC to complete a certification program from a nationally recognized entity on low-income housing credit compliance before the project is placed in service.

(2) All project management plans must include a requirement that appropriate staff administering any project containing low income units shall receive sufficient training prior to or at the commencement of employment, and refresher training in LIHTC compliance as necessary, not less than every five years.

(e)Recordkeeping.

The owner of a low-income housing project shall keep records for each qualified low-income building in the project and make these records available to the division upon request for monitoring. These records shall contain the following information for each year of the monitoring period:

(1) the total number of residential rental units in each building, including the number of bedrooms and size in square feet of each residential rental unit;

(2) the percentage and location of residential rental units that are low-income units in each building;

(3) the rent charged for each residential rental unit, including any utility allowances;

(4) the number of occupants in each low-income unit, if the rent is determined by the number of occupants in each unit pursuant to code section 42(g)(2) (as in effect before the amendments made by the Revenue Reconciliation Act of 1989);

(5) the low-income unit vacancies in the building and information that shows when, and to whom, the next available units were rented;

(6) all income certifications, including recertifications, submitted by each past and present tenant of low-income units;

(7) documentation to support the income certification and recertification made by each tenant of a low income unit (for example, verifications of income from third parties such as employers or unemployment compensation), in accordance with the requirements of the code;

(8) the eligible basis and qualified basis of the building at the end of the first year of the credit period (using the information contained on the IRS form 8609 which was filed with the IRS for the first credit period year for each building);

(9) a description listing the character and use of the nonresidential portion of each building included in the building's eligible basis under code section 42(d) (e.g., tenant facilities that are available on a comparable basis to all tenants and for which no separate fee is charged for use of the facilities, or facilities reasonably required by the project);

(10) fiscal documentation to include annual budgets, all financial records pertaining to the project including, but not limited to bank statements, and all records related to the operation and maintenance of the project;

(11) documentation to support the maintenance practices of management;

(12) all tenant waiting lists, leases, inquiries, complaints and related records;

(13) utility allowance; and

(14) any original local health, safety, or building code violation reports or notices issued by a State or local government unit which pertain to the project.

(f)Record retention.

The owner of a low-income housing project shall retain the above records for each building in the project for at least six years after the due date (with extensions) for filing the Federal income tax return for that year. The records for the first year of the credit period, however, must be retained for at least six years beyond the due date (with extensions) for filing the Federal income tax return for the last year of the compliance period of the building.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 2040.7

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