Rules

Rules

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Proposed Rules

Requirements for Waste Containerization Systems
Hearing Date: May 28, 2020 

The proposed rule would require owners/managing agents of certain new residential multiple dwellings, including commercial buildings that are turned into residential buildings, to install a waste containerization system to manage waste generated at such building, unless the Department of Sanitation determines that collection service through this system is not feasible. The rule is jointly proposed by the Departments of Sanitation, Health and Mental Hygiene, and Housing Preservation and Development as an amendment to existing Tripartite General Orders.  The hearing date has been rescheduled to May 28,2020, and will take place via Webex.


Proposed Rules Regarding Chapter 51 of Title 28 of the Rules of the City of New York to revise certain requirements for buildings applying for tax benefits under New York State Real Property Tax Law Section 421-a(16)
Hearing Date: October 29, 2019

HPD’s proposed rule amendments would (1) modify the Application requirements for Homeownership Projects, (2) change the deadlines for filing a Notice of Intent to begin marketing Affordable Housing Units, (3) clarify the requirement that the Workbook must be attached to the Notice of Intent, (4) cap rents of Affordable Housing Units at the rents for comparably-sized Market Units, (5) authorize HPD to waive the Application filing fee for certain projects and (6) ensure that Buildings are not configured in a manner that impedes the statutory and regulatory requirements for the integration of Affordable Housing Units and their residents with the rest of the Building.


Final Rules

Adoption of Amendments to Rules Regarding Fees for Administration of Loan Programs
Effective Date: October 14, 2020

The adopted rule amends the Department of Housing Preservation and Development’s rules regarding fees for loan programs and other projects that receive municipal aid. In particular, the rules provide for waiver of the mortgage servicing fee which applies to requests for subordination, satisfaction or other modifications of debt from loans made by HPD to a grantee, borrower, or recipient.

HPD has determined that under the circumstances where the structure financed by the loan under one of HPD’s homeownership programs, or under a condominium project, or under a cooperative project that is not owned by a housing development fund corporation has been confirmed by HPD to contain a serious construction defect, the mortgage servicing fee authorized to be charged pursuant to these rules may be waived by HPD. In addition, the rule provides that if the owner of any such project has experienced loss of income as a result of the COVID-19 Pandemic and has submitted adequate documentation of such loss to HPD, the fee may be waived.


Adoption of Amendments to Rules Regarding Lead Poisoning Prevention and Control
Effective Date: October 8, 2020 

The adopted amendments to Chapter 11 of Title 28 of the Rules of the City of New York revise and clarify certain rules promulgated under the New York City Childhood Lead Poisoning Prevention Act of 2003 (Lead Law).

The Lead Law requires owners to retain records for 10 years of any notices required to be distributed and records of work performed under the law. Owners must transfer such records to a new owner, where applicable, and make the records available to HPD upon request.

The adopted rules add criteria, consistent with Local Law 31 of 2020, to clarify that owners must perform certain investigations within five years of the effective date of the law, and keep records regarding such investigations. The rules also make certain technical and plain language changes.


Adoption of Rules Regarding Installation of Internet Capable Temperature Recording Devices
Effective Date: September 25, 2020

The rules implement Local Law #18 of 2020 (Administrative Code section 27-2033.1) which requires the installation of internet capable temperature reporting devices (heat sensors) in certain multiple dwellings with a history of heat violations and complaints. The heat sensors will be installed in and monitor the temperature in individual apartments. Owners and tenants with internet connection will have access to the heat sensors’ data (tenants with no internet connection must receive data from the owner when requested).

Beginning on July 1, 2020, and every two years thereafter, the Department of Housing Preservation and Development (HPD) will select 50 class A multiple dwellings to participate in the heat sensor program. An owner whose building is selected will participate in the program for four years unless the building is discharged sooner as a result of not having been issued any heat violations in the immediately preceding heat season, or having demonstrated that permanent action has been taken to provide heat for the next heat season.

The rules set forth the criteria under the law for the selection of the buildings, which include the number of heat violations issued to the building and the number of heat complaints received from occupants of more than one dwelling unit in the building during the previous two heat seasons. The rules also exclude certain buildings that are already participating in other HPD programs that address heat violations and conditions in such buildings.

Owners of buildings selected for the program must notify all tenants regarding the requirement to install and maintain heat sensors. Tenants may refuse, in writing, to have a heat sensor placed in their apartment. Owners are required to keep records of such refusals, in addition to maintaining other records prescribed by the law and rules. Owners must submit temperature records to HPD periodically, and provide this data to tenants upon request.


Adoption of Updated Schedule of Contribution Amounts to the Mandatory Inclusionary Housing Affordable Housing Fund
Effective Date: July 1, 2020

HPD’s rule amendment updates the MIH Affordable Housing Fund contribution schedule for the coming fiscal year (July 1, 2020 through June 30, 2021). In addition to changes in the contribution amounts, the rule amendment moves Manhattan Community District 10 and Brooklyn Community District 8 from Fee Tier 3 to Fee Tier 2 and Brooklyn Community District 4 from Fee Tier 3 to Fee Tier 5, in order to reflect changes in the relative market characteristics of those Community Districts.


Adoption of Amendments of Rules Regarding New York State Real Property Tax Law Section 421-a Prevailing Wage Requirements
Effective Date: February 23, 2020

HPD’s rule amendments authorize the imposition of civil penalties for violations of the prevailing wage and minimum average hourly wage requirements. The civil penalty cannot be more than 25% of either (a) the prevailing wage underpayment, or (b) the differential between the wages set forth in the contractor’s certified payroll report and the actual wages paid. The civil penalty shall be assessed based upon such factors as size and good faith of applicant, contractor or subcontractor, as relevant, the gravity of the violation, the violation history and the failure to comply with bookkeeping and other non-wage requirements. The rule amendments also amend the definition of “Owner” in the rules and make some other technical corrections.


Adoption of Amendments to Rules Relating to Lead Paint Poisoning and Control
Effective Date: December 9,2019

The adopted amendments to Chapter 11 of Title 28 of the Rules of the City of New York revise and clarify certain rules promulgated under the New York City Childhood Lead Poisoning Prevention Act of 2003 (Lead Law). The adopted rules add criteria, consistent with Local Law 70 of 2019, to clarify that HPD will audit owners’ compliance with the Lead Law by requiring submission of the records required to be kept for a minimum of 200 buildings per fiscal year. The proposed rules also describe the documentation required to be kept and submitted upon audit demand.

In addition, the adopted rules:

Clarify definitions for “lead-contaminated dust,” “applicable age,” and “lead-based paint,” and add a definition for the term “resides,” consistent with the amendments effected by Local Laws 64 and 66 of 2019;

Clarify that exemptions from the lead-based paint presumption established under the Lead Law may be submitted for a determination whether a particular multiple dwelling or part thereof is lead safe (lead-based paint may have been removed and is also contained or encapsulated) or lead free (all lead-based paint has been removed so that there is no lead-based paint); Clarify who may submit a request for an exemption and under what circumstances exemptions will be revoked; and Make other revisions to clarify language.


Amendment to Speculation Watch List Rules
Effective Date: December 6, 2019

The rule amendments remove from consideration for the Speculation Watch List those multiple dwellings that were constructed within the last several years and in which a majority of dwelling units are rent regulated due to Real Property Tax Law Section 421-a(1)-(15) requirements


Rule Amendment Regarding the Mitchell-Lama Program
Effective Date: September 13, 2019

HPD’s  rule amendments clarify that any decision that HPD renders regarding the Affordability Exception to the prevailing wage requirements for building service workers in certain buildings receiving RPTL Section 421-a tax exemption benefits is not a final determination until HPD either (a)  issues an Order pursuant to 28 RCNY Chapter 50, or (b) issues an Applicant a letter indicating that such Applicant is ineligible for the real property tax exemption associated with such prevailing wage for building service workers requirement.  The rule amendments also make some technical corrections to Chapter 50.


Rule Amendment Regarding Affordability Exception to RPTL Section 421-a Building Service Workers Prevailing Wage Requirements
Effective Date: March 13, 2019

HPD’s  rule amendments clarify that any decision that HPD renders regarding the Affordability Exception to the prevailing wage requirements for building service workers in certain buildings receiving RPTL Section 421-a tax exemption benefits is not a final determination until HPD either (a)  issues an Order pursuant to 28 RCNY Chapter 50, or (b) issues an Applicant a letter indicating that such Applicant is ineligible for the real property tax exemption associated with such prevailing wage for building service workers requirement.  The rule amendments also make some technical corrections to Chapter 50.


Notice of Adoption of Rule Amendment Updating the Schedule of Contribution Amounts to the Mandatory Inclusionary Housing Affordable Housing Fund For FY 2020
Effective Date: July 1, 2019

HPD’s rule amendment updates the MIH Affordable Housing Fund contribution schedule for the coming fiscal year (July 1, 2019 through June 30, 2020).


Adopted Rules regarding Indoor Allergen Hazards
Effective Date: January 16, 2019

The adopted rules implement new legislation, Local Law 55 of 2018, enacted by the City Council regarding indoor allergen hazards.  The legislation establishes an owner’s responsibility to investigate for and remediate indoor allergen hazards like mold, cockroaches, mice, and rats in multiple dwellings.  The rules provide for work practices to be used by owners in performing the work to remediate these conditions.  The rules also provide a sample form for owners to use in providing notice to tenants as required under the law, and procedures for submitting certifications of correction of such violations and requesting postponements of the time period to correct such violations. The final rules also clarify and implement provisions of pending and enacted legislation relating to indoor allergen hazard remediation as well as comments received on the proposed rules. HPD’s authority for these rules is found in New York City Charter §1802 and New York City Administrative Code §§ 27-2090, 27-2017.7 and 27-2017.9.


Adopted Rules Relating to Providing Stove Knob Covers in Multiple Dwellings
Effective Date: December 15, 2018

Local Law No. 117 of 2018 amended the Housing Maintenance Code to require, with certain exceptions, that owners of multiple dwellings provide stove knob covers for gas-powered stoves to tenants of units where the owner knows or reasonably should know that a child under six years of age resides.  The owner is required to:

1) provide an annual notice to tenants regarding the owner’s obligation to provide the stove knob covers,
2) keep the following records:
a) tenant responses to the stove knob cover notice,
b) a list of units where the knob covers have been made available, and
c) documentation of the owner’s attempts to make the covers available.

The adopted rule implements the legislation by detailing recordkeeping requirements, and by providing a form of annual notice that may be used by owners to comply with the new law.


Notice of Adoption of Rules Governing the Speculation Watch List
Effective Date: October 19, 2018

A recently enacted law requires HPD to establish a “Speculation Watch List” that lists certain recently-sold rent regulated multiple dwellings at risk of tenant harassment. The adopted rule establishes the criteria for a multiple dwelling’s inclusion in or removal from such list. 


Adopted Rules Regarding a Pilot Program requiring Certifications of No Harassment for Certain Buildings
Effective Date: October 8, 2018 

The adopted rules implement and clarify new legislation, Local Law 1 for the year 2018, regarding certifications of no harassment.  The legislation provides for a pilot program which requires certain buildings with high levels of physical distress or ownership changes, as prescribed in these rules, in certain targeted areas of the City, to be placed on a building list.  Buildings that are the subject of a full vacate order, or that have been active participants in the alternative enforcement program for more than four months since February 1, 2016, as well as buildings where there has been a finding of harassment within the last five years by a court or by New York State Homes and Community Renewal, are also included on the list.
 
The owners of these buildings who apply to the Department of Buildings (DOB) for approval of construction documents or an initial or reinstated permit to perform certain covered categories of work, will be required to receive a certification of no harassment from the Department of Housing Preservation and Development (HPD) before a DOB approval can be issued.  The application for the certification of no harassment will trigger an investigation into whether there has been harassment of tenants at such building within the five-year period preceding the application.  If an owner is found to have harassed tenants, the owner will be precluded from receiving a building permit for the covered categories of work for five years, or, in the alternative, the owner may construct a certain percentage of low income housing units to address the harassment finding.

The rules provide for: (1) criteria for the building qualification index, to evaluate prospective buildings for indicators of distress; (2) additional categories of covered work and exemptions for such work; (3) categories of buildings that are exempt from the requirement to apply for a certification of no harassment; (4) administration of applications for certifications of no harassment; (5) specifications for cure agreements; and (6) fees for applications and administrative expenses. 


Rule Amendment Regarding Replacement Ratio  Requirements for Buildings Receiving Benefits Pursuant to RPTL Section 421-a(16)
Effective Date: September 12, 2018
 
HPD’s rule amendment exempt motels and tourist cabins from the replacement ratio requirements for RPTL Section 421-a(16) real property tax exemption benefits


Rule Amendment Updating the Schedule of Contribution Amounts to the Mandatory Inclusionary Housing Affordable Housing Fund
Effective Date: June 29, 2018

HPD’s rule amendment updates the MIH Affordable Housing Fund contribution schedule for the coming fiscal year (July 1, 2018 through June 30, 2019). In addition to changes in the contribution amounts, the rule amendment moves Queens Community District 6, which includes Forest Hills and Rego Park, from Fee Tier 3 to Fee Tier 4, in order to reflect changes in the relative market characteristics of that Community District.


Rule Amendments Regarding Inclusionary Housing Program Fees
Effective Date: July 20, 2018

HPD’s adopted rule provides for the fee amounts to be collected by HPD for Inclusionary Housing applications and certificates of qualifying affordable floor area. These fees are necessary to cover the costs of review and monitoring performed by HPD in implementing the voluntary and mandatory inclusionary housing programs.


Repeal of Rules Governing Relocation Finder’s Fees
Effective Date: July 13, 2018

HPD’s rule amendment repeals Section 18-03 of Title 28 of the Rules of the City of New York, which governed payments to persons or entities furnishing permanent accommodations to relocatees.


Adopted Amendments to the Fee for Certifications of No Harassment
Effective Date: June 25, 2018  

HPD is authorized to administer a program to review and investigate applications for Certifications of No Harassment, which are required to alter or demolish any single room occupancy building Citywide and all residential buildings in specially designated zones throughout the City, under Administrative Code sections 27-2093 and 28-207.1, and Zoning Resolution sections 96-110, 93-90, 98-70, and 23-013. The adopted rule increases the fee for such applications to align it with the agency cost in administering the program.


Rule Amendments Regarding 421-a Extended Affordability Program
Effective Date: May 3, 2018

HPD’s final rule amendments modify the definition of “Marketing Monitor” in the 421-a Extended Affordability Program Rules to eliminate the payment requirement and authorize the use of in-house as well as third-party marketing monitors. These amendments would also clarify HPD’s practices under this program concerning the marketing guidelines by which Affordable Housing Units must be leased and the verification of eligibility for tenancy of Affordable Housing Units, and clarify other language in the existing rules to more precisely reflect HPD practices.


Rule Amendment to Distribution Requirements for Buildings Receiving Benefits Pursuant to RPTL Section 421-a(1-15)
Effective Date: April 29, 2018
 
HPD’s rule amendment adds an additional ground for waiver of the distribution requirements for the former 421-a program based upon a story containing a single dwelling unit This same additional ground for waiver already is available in the Affordable New York Housing Program for new 421-a benefits and HPD wants to clarify that the waiver is available for eligible buildings receiving benefits under either program. 

Rule Amendment Regarding Prevailing Wages for Building Service Workers
Effective Date: March 8, 2018 

HPD’s Final  rule amendments  reflect the New York City Comptroller’s enforcement authority under RPTL Section 421-a (17) (the Extended Affordability Benefits Program).  


Repeal of Neighborhood Entrepreneur Program Rules
Effective Date: January 21, 2018

HPD’s rule amendment repeals Chapter 35 of Title 28 of the Rules of the City of New York, which governed the Neighborhood Entrepreneurs Program. 


Rule Amendments Regarding  Inclusionary  Housing Units and Real Property Tax Law Section 421-a(1)-(15) Benefits  in the Geographic Exclusion Area
Effective Date: December 29, 2017
 
HPD’s rule amendments to Chapter 6 of Title 28 of the Rules of the City of New York would prohibit affordable inclusionary housing units generating zoning bonuses for multiple dwellings on different zoning lots from qualifying a multiple dwelling in the Geographic Exclusion Area that commenced construction on or before December 31, 2015 for 421-a benefits. This restriction would not apply if the affordable inclusionary housing units are in a development involving several zoning lots reviewed and approved as a single unit pursuant to the Zoning Resolution. 


Rule Amendments Regarding Filing Procedures for J-51 Tax Benefits
Effective Date: November 23, 2017

HPD’s rule amendments eliminate the current restrictive filing periods for submitting J-51 applications to HPD, and allow applicants to file applications at any time of year. 


Rule Amendments Regarding Certification of Costs for J-51 Benefits
Effective Date: November 23, 2017

HPD’s rule amendments conform the proof of the applicant's actual expenditures required as part of the application for J-51 benefits to the relevant professional standards for Certified Public Accountants. The amendments allow Certified Public Accountants to provide HPD with satisfactory evidence of the J-51-related cost of construction while avoiding any conflict with professional standards by using terms consistent with the relevant professional standards for “attest engagements.”


Adopted Amendments to Relocation Services Rules
Effective Date: November 13, 2017

HPD provides relocation services to tenants whose buildings have been issued a vacate order. Amendments to Administrative Code § 26-301, made by Local Laws 14 and 16 of 2017 effective August 14, 2017, eliminated the agency’s requirement that affected tenants must apply for relocation services within 90 days after a vacate order is issued, and clarified that affected tenants may apply for relocation services at any time while a law, regulation or order is in place which requires occupants to vacate the building. The final rule also makes technical amendments.

Consistent with these local laws, the adopted rules:

  • require potential relocatees, after receiving notification of confirmed eligibility for relocation services, to notify HPD in writing within 30 days whether they accept relocation services,
  • provide that a relocatee will only be eligible once for such services
  • incorporate local law amendments regarding documentation that may be submitted to confirm occupancy of the vacated building, and
  •  provide information regarding how to appeal the agency’s decision if relocation services are denied.  

Rule Amendments Regarding  Affordable New York Housing Program RPTL 421-a(16) Tax Exemption Benefits
Effective Date: October 26, 2017

HPD’s  rule amendments implement the Affordable New York Housing Program adopted by the State Legislature in Chapter 20 of the Laws of 2015 and amended by Chapter 59 of the Laws of 2017.  The Affordable New York Housing Program provides a tax exemption similar to the prior Real Property Tax Law Section 421-a exemption, but for buildings that commence construction after December 31, 2015. 


Rule Amendments Regarding  RPTL 421-a Requirements for Prevailing Wages for Building Service Workers and Minimum Average Wage Requirements for Construction Workers
Effective Date: October 26, 2017 
 
HPD’s  rule amendments implement changes to the prevailing wage requirements for building service employees in buildings receiving tax benefits pursuant to RPTL Section 421-a enacted by Chapter 20 of the Laws of 2015 and Chapter 59 of the Laws of 2017.  They also incorporate the City Comptroller’s enforcement authority under 421-a(16)  for the minimum average wage requirements for construction workers in certain projects. 


Final Rule for Notices of Procedures for Suspected Gas Leaks and Other Rule Amendments to Chapter 12 of Title 28 of the Rules of the City of New York 
Effective Date: October 18, 2017

The adopted rule implements legislative amendments to Administrative Code §27-2005, through which owners are required to provide notice to tenants, on a form approved by HPD, of the procedures that should be followed when a gas leak is suspected. The rule makes clear to owners the information that should be provided on notices informing tenants of procedures to be followed in the event of a suspected gas leak and includes sample forms that may be used by owners for such purpose. Additionally, the rule clarifies what records must be kept by owners for smoke detecting devices and carbon monoxide alarms. The adopted rule also includes minor plain language revisions.  


Rule Amendments Regarding Inclusionary Housing and Real Property Tax Law Section 421-a Affordable Housing Units
Effective Date: October 13, 2017

HPD’s adopted rule amendments to Chapter 41 of Title 28 of the Rules of the City of New York (the "Inclusionary Housing Rules") would limit the zoning bonus generated by 421-a affordable units to usage on the same zoning lot as the building containing the 421-a affordable units or  buildings on a development site on which the affordable housing units are located where the development site includes two or more zoning lots that were reviewed and approved as a single unit pursuant to the New York City Zoning Resolution.  


Rule Amendments Governing the Schedule of Contribution Amounts to the Mandatory Inclusionary Housing Affordable Housing Fund
Effective Date: July 20, 2017

HPD’s rule amendments create the schedule of contribution amounts to the Affordable Housing Fund that is required by the 2016 amendments to the Zoning Resolution establishing the Mandatory Inclusionary Housing program. 


Rule Amendments Regarding  Application Deadlines for RPTL 421-a Final Certificates of Eligibility
Effective Date: July 19, 2017

HPD’s rule amendment gives HPD retroactive authority to exempt projects that already have a 421-a Preliminary Certificate of Eligibility and are receiving 421-a benefits from the application deadline for a 421-a Final Certificate of Eligibility. This relieves affected properties of the burden of a timely filing of such applications in order to comply with the requirements of the 421-a program.


Notice of Adoption of Rule Amendment Repealing the Rules Chapter Governing the SIP Occupied Sales Program
Effective Date: June 15, 2017 
 
HPD’s rule amendment repeals Chapter 29 of Title 28 of the Rules of the City of New York, which governed the concluded SIP Occupied Sales Program. 


Notice of Adoption of Revocation Rule Amendments
Effective Date: April 14, 2017

The Department of Housing Preservation and Development adopts amendments to rules relating to revocation of tax benefits. The rule amendment reflects what has traditionally been HPD’s practice by clarifying HPD’s ability to revoke tax benefits granted before all eligibility criteria are fulfilled when those criteria are not fulfilled in a timely manner.  The rule amendment also clarifies the wording of §39-05 to unambiguously reflect HPD’s policy of delivering notices by mail to both the fee owner and, where relevant, the mortgagee, in addition to the notices delivered by mail to the real property tax bill addressee and both the agent and the owner identified in the multiple dwelling registration. Finally, the proposed rule amendment adds “Noticed Property” as a defined term, in order to put §39-05 in plainer English and thus make it easier to read and understand.


Rule Amendments Regarding Rents for RPTL 421-a Affordable Units in Multiple Dwellings Subject to HAP Contracts
Effective Date: May 14, 2017

HPD’s rule amendment would, under very limited circumstances, allow new multiple dwellings that have a project-based Section 8 contract for subsidies from the United States Department of Housing and Urban Development (“HUD”) that would cover the difference between the tenant’s payment (30% of such tenant’s income) and HUD Contract Rents to register 120% of HUD Contract Rents as the State Division of Housing and Community Renewal (“SDHCR”) legal regulated rent, which would be above the current cap of 30% of the applicable AMI


Notice of Adoption of Repeal of Rules Relating to the Unauthorized Occupant Policy
Effective Date: April 13, 2017

The Department of Housing Preservation and Development repeals Chapter 19 of Title 28 of the Rules of the City of New York relating to the Unauthorized Occupant Policy for the Division of Property Management. 


Notice of Adoption of Redevelopment Company Rule Amendments
Effective Date: February 9, 2017

The adopted rules repeal chapter 4 of title 28 of the Rules of the City of New York (“Redevelopment Companies Rules") governing redevelopment companies formed pursuant to Article V of the Private Housing Finance Law. This rule was identified as part of a comprehensive rules review initiative undertaken by the NYC Mayor’s Office of Operations working with the City’s rulemaking agencies, the Law Department, and the Office of Management and Budget.


Notice of Adoption of Amendments to Rules Governing Successor Tenants in City-Owned Housing  

Effective Date: December 17, 2016  

The Department of Housing Preservation and Development adopts amendments to rules relating to applications for successor tenancy in City-owned buildings.  The amendments clarify the requirements for an application for successor tenancy by describing the documents that must be submitted with the application form.  A public hearing was held on October 27, 2016.


Notice of Adoption of RPTL Section 421-a Building Service Worker Rule Amendments
Effective Date: October 23, 2016

The adopted rules implement the enforcement mechanism enacted by Chapter 20 of the Laws of 2015 for prevailing wages for building service workers in covered 421-a buildings.  They (a) provide that the Comptroller’s annual Labor Law Section 230 Prevailing Wage Schedules set the applicable prevailing wage and supplement rates, (b) determine how the obligation to pay prevailing supplements may be discharged, (c) establish the wage and supplement rates for apprentices, (d) provide that after receiving from the Comptroller an executed stipulation of settlement or report and recommendation, HPD can issue an order that adopts, in whole or in part, or rejects, the report and recommendation, or that approves the stipulation of settlement, (e) provide that those found to have violated the requirements be directed to pay to the Comptroller wages and supplements found to be due for work performed no more than two years from the earlier of the complaint filing date or the investigation commencement date, plus interest at the applicable rate, and (f) direct HPD to revoke all 421-a benefits when an applicant fails to make such payment within 120 days, two orders determining a willful failure to pay prevailing wages have been issued within six years, or an order determines a willful failure to pay that involves falsification of payroll wages or the kickback of wages or supplements.


Notice of Adoption of Mitchell-Lama Rule Amendments
Effective Date: August 12, 2016

The adopted Mitchell-Lama rule amendments allow siblings to transfer applications as long as they both were included on the original application and at least 18 years of age at the time of such original application. They also clarify the definition of “probable aggregate annual income” to better reflect HPD’s current policy of excluding up to $20,000 of each secondary wage earner’s income.  The rule amendments fix an inadvertent omission of the requirements for succession for people added to stock certificates in Mitchell-Lama cooperative developments before the December 25, 2014 rule change prohibiting such additions.  Finally, the amendments recognize that, upon request and with HPD’s prior approval, spouses that meet certain requirements can be added as co-owners of shares and co-signatories of occupancy agreements without such succession determinations.


Notice of Adoption of Rules Relating to Elevator Violation Referrals
Effective Date:  June 27, 2016

Notice is hereby given that pursuant to authority vested in the City of New York Department of Housing Preservation and Development (HPD) by Chapter 61 of the New York City Charter and by Local Law 101 of 2015, HPD hereby adopts rules relating to referrals to HPD by the Department of Buildings of immediately hazardous elevator violations that an owner fails to correct.  A public hearing was held on April 15, 2016.  Local Law 101 of 2015 (LL 101) requires the Department of Buildings (DOB) to refer to the Department of Housing Preservation and Development (HPD) immediately hazardous elevator violations in multiple dwellings that are found after inspection to be uncorrected by the owner.  When DOB inspectors find an immediately hazardous condition in an elevator that requires the elevator to be taken out of service until the condition is corrected, they will refer the condition to HPD.  Upon such referral, HPD will make an assessment of what action may be necessary based on the inoperable condition of the elevator and other relevant factors.  The rules provide criteria to assist HPD in making its determination regarding such action.


Notice of Adoption of Rules Governing RPTL Section 421-a(17) Extended Affordability Benefits
Effective Date: June 10, 2016 

The adopted 421-a rule amendments implement the 421-a extended affordability program enacted by the State Legislature in Chapter 20 of the Laws of 2015.  This program, codified at RPTL Section 421-a(17), provides a 50% exemption from real property taxation for either ten or fifteen years to multiple dwellings that commenced construction prior to July 1, 2008 and were granted either 25 or 20 years of 421-a benefits prior to June 15, 2015 for making at least 20% of their dwelling units affordable to persons or families of low income.  To get the additional benefit, all residential tax lots in such multiple dwellings must operate as rentals and they also must maintain the affordability of the original affordable units as well as restricting an additional 5% of their dwelling units to be affordable to individuals or families whose household income is at or below 130% of AMI.


Notice of Adoption of Rules Governing RPTL Section 421-a Tax Exemption Benefits
Effective Date: May 27, 2016

Notice is hereby given that pursuant to the authority vested in the Commissioner of the Department of Housing Preservation and Development by §1802 of the New York City Charter and Section 421-a of the Real Property Tax Law, and in accordance with the requirements of §1043 of the New York City Charter, the Department of Housing Preservation and Development is adopting rule amendments implementing new requirements adopted by the State Legislature in Chapter 20 of the Laws of 2015.


Adopted Rules Governing the Alternative Enforcement Program
Effective Date: October 5, 2015

Under the Alternative Enforcement Program (AEP), the Department of Housing Preservation and Development (HPD) identifies the most distressed buildings in need of repair and systems replacement, and monitors the progress of owners towards correcting Housing Maintenance Code violations or corrects the violations itself.  Pursuant to section 27-2153 of the New York City Administrative Code, HPD is authorized to revise the criteria used to select buildings for participation in the program and does so in Chapter 36 of Title 28 of the Rules of the City of New York.  Local Law 64 of 2014 amended section 27-2153 by increasing the number of buildings that will participate in the AEP annually to 250, and authorizing HPD to set the criteria for participation by rule.

In 2016, the ninth year of the program, and for each succeeding year, the adopted rules specify the number of housing maintenance code violations issued and the amount of paid or unpaid emergency repair charges incurred during a look-back period that result in a property being considered for inclusion in the AEP.   The look-back period is the interval of time in the past during which violations were issued or charges accrued.

The adopted rules also add criteria for prioritizing buildings for participation, and for adding buildings when the initial criteria do not yield a total of 250 buildings.  The rules also define the term “rehabilitation” for the purpose of implementing the authority under the law to exclude buildings from the AEP that are the subject of a rehabilitation loan made by HPD or the New York City Housing Development Corporation.  The rules also exclude buildings that were formerly in the AEP and discharged in the past three years as a result of work performed by HPD.


Adoption of Amendments to Rules Regarding RPTL § 420-c
Effective Date: September 20, 2015

New York Real Property Tax Law (RPTL) § 420-c was originally enacted to provide tax exemption for non-profit sponsors which develop affordable housing with federal low income housing tax credits.  In 2004, RPTL § 420-c was amended by Chapter 522 of the Laws of 2004 to require that at least 50% of the controlling interest in an entity owning the property be held by a charitable or social welfare organization formed under 501(c)(3) or 501(c)(4) of the federal Internal Revenue Code.  The 2004 amendments eliminated the prior governmental loan requirement for RPTL § 420-c benefits and provided that the municipality must sign or approve a regulatory agreement requiring that the real property be used to provide low income housing for the entire term of the RPTL § 420-c tax exemption.  The 2004 amendments also authorized existing eligible projects to start receiving RPTL § 420-c tax benefits if they terminated any current tax benefits and executed new regulatory agreements. 

The rule amendments add the 2004 statutory amendments to the current rules since the amendments apply to all RPTL § 420-c applications approved by HPD on or after September 28, 2004, the effective date of the amendments. They also make some technical changes to the existing § 420-c regulatory provisions.


Adopted Rules Regarding Recurring Complaint-Based Inspections
Effective Date: August 20, 2015

Local Law 65 of 2014 (LL 65) authorizes the Department of Housing Preservation and Development (HPD) to impose a fee to conduct a third complaint-based inspection for a dwelling unit that HPD has inspected twice in the same twelve-month period. For this fee to apply, HPD must have issued a hazardous (class B) or immediately hazardous (class C) violation in the dwelling unit as a result of each such inspection in that period, and the owner must have failed to certify that all of those violations have been corrected.  Under the law, if the fee has not been paid, it becomes a tax lien against the property.

The law provides HPD with authority to exclude certain hazardous or immediately hazardous violations from the inspection fee, and to determine what documents HPD would require for an owner to object to the inspection fee. An owner must prove that he/she attempted to access the dwelling unit to make repairs but was unable to do so.  The owner’s objection would be made under the process provided by Administrative Code §27-2129 and related statutes, and HPD’s rules in 28 RCNY Chapter 17.  The adopted rules provide for a new Chapter 47 to specify which hazardous and immediately hazardous violations would not generate the complaint-based inspection fee, and amend 28 RCNY Chapter 17 to describe the documents required for an owner to protest the inspection fee on the basis of lack of access to a dwelling unit to make repairs. The adopted rule also amends Chapter 25, Subchapter H, §25-01 to clarify and update requirements regarding owner notification to tenants and the right of access to a dwelling unit at a reasonable time and in a reasonable manner to repair violations and conduct inspections for making improvements and other repairs.


Adopted Rule Regarding Relocation Services
Effective Date: July 20, 2015

The adopted rules repeal former §18-01 of Title 28 and provide for a new §18-01 regarding relocation services provided by the Department of Housing Preservation and Development. Tenants who live in dwelling units that are the subject of a vacate order by a City agency may be eligible to receive relocation services, such as temporary shelter, moving expenses, and storage services.

The adopted rules:
• Update and clarify eligibility for such services;
• Set forth the requirements for relocated persons to continue to be eligible for them; and
• Outline the circumstances under which such services may be terminated.


Adopted Rule Amending the Inclusionary Housing Guidelines
Effective Date: May 30, 2015

The adopted rule implements the Department of Housing Preservation and Development’s authority pursuant to Zoning Resolution §23-96 to waive certain provisions of the Zoning Resolution.  Specifically, Zoning Resolution §23-96(b), (c), and (d) authorize HPD to waive the requirements for height and horizontal distribution, the distribution requirements for bedroom mix, and the size requirements of affordable housing units, respectively, for substantial rehabilitation affordable housing on generating sites.  HPD will waive such requirements under one or more of the following circumstances: (1) there are tenants who are returning to such affordable housing units after rehabilitation is completed, (2) the building is the subject of an in rem tax lien foreclosure judgment for the City of New York, or (3) the building is owned by a housing development fund corporation or other entity designated by HPD.

HPD’s ability to waive these requirements under these circumstances will help to preserve existing unit configurations to allow occupants to return after rehabilitation is completed.  This is important because where buildings are fully or partially occupied the ability to waive these requirements will avoid any diminution in the number of units rehabilitated and ensure that occupants can return to their units.  In addition, the ability to waive these requirements can result in the creation of more affordable housing units under certain HPD programs.


Adoption of Rules Regarding Fees for Contract Compliance Monitoring
Effective Date: May 20, 2015

The adopted rule amends certain provisions of the Department of Housing Preservation and Development’s (HPD) rules governing fees for administration of loan programs and certain other municipality-aided projects. The rule provides for a fee to be collected by HPD for monitoring contracts for compliance with equal employment opportunity and prevailing wage and labor standards. EO 50 of 1980 (as amended by Executive Order 94 of 1986, Executive Order 108 of 1986, and Executive Order 159 of 2011) prohibits entities doing business with New York City from discriminating against any employee, applicant, or supplier. The Federal Davis Bacon Act (40 U.S.C. §3141 et seq.), State Labor Law §§220 and 230, Real Property Tax Law §421-a(8), and New York City Administrative Code §6-109 require payment of prevailing wages and compliance with labor standards by contractors. HPD monitors compliance with the above referenced orders and laws.

Adoption of Rules Governing Tax Exemption Under §421-a of the Real Property Tax Law of the State of New York
Effective Date: March 26, 2015

This final rule amendment to tax exemptions pursuant to RPTL Section 421-a reflects HPD’s original intention for the 35% standard so that it will only apply to projects that were affected by the 2006-8 changes in the Geographic Exclusion Area in relation to the affordability requirements or the exemption cap.  The final rule amendments also  incorporate the definition of “floor area” contained in the Zoning Resolution Section 12-10, which would govern the measured building expansion to determine if amended architectural and structural plans should result in a new commencement date.


Adoption of Rules Regarding  the Third Party Transfer Program
Effective Date: March 25, 2015


The adopted rule amends sections 8-06 and 8-07 of the Third Party Transfer program rules (Title 28 RCNY Chapter 8). Section 8-06 of the rules describes how HPD evaluates tenants’ progress toward ownership of a residential building that is subject to an in rem foreclosure judgment, when a Third Party sponsor has submitted a tenant ownership application on their behalf. Section 8-07 describes how HPD determines whether to approve a transfer of a building from a Third Party to tenants. The adopted amendments modify or clarify portions of section 8-06 and 8-07, and provide more flexibility in the timing of training for tenants and for determining the end of the interim evaluation period.


Adoption of Rules Regarding the Alternative Enforcement Program
Effective Date: November 26, 2014

Under the Alternative Enforcement Program (AEP), the Department of Housing Preservation and Development (HPD) identifies the most distressed buildings in need of repair and systems replacement, and monitors the progress of owners towards correcting Housing Maintenance Code violations or corrects the violations itself.  Pursuant to section 27-2153 of the New York City Administrative Code, HPD is authorized to revise the criteria used to select buildings for participation in the program and does so in Chapter 36 of Title 28 of the Rules of the City of New York.
 
The adopted rules amend those criteria to increase the look-back period from three years to five years for violations and paid or unpaid emergency repair charges.  The look-back period is the interval of time in the past during which violations or charges accrued for the purposes of identifying buildings for participation in the AEP.  The increase would apply beginning in the eighth year of the program.

Distress in a building can be acute or the result of a long period of neglect.  The current look-back period allows HPD to identify buildings experiencing acute or short term distress.  The adopted changes allow HPD to also include in the AEP buildings experiencing a slow but steady decline in conditions over time. The changes will also increase the cost effectiveness of the AEP by addressing conditions before they become acute and more expensive to correct.  


Adoption of Amendments to Rules relating to Successor Tenants in City-owned Buildings and the Tenant Interim Lease Program 
Effective Date: November 15, 2014

The adopted rule amends HPD’s rules regarding successor tenants in City-owned buildings as well as the rules regarding the TIL Program.  The amendments delete references to agency divisions that no longer exist and clarify that HPD’s successor tenant rules apply to buildings that are in the TIL Program, in addition to the other City-owned buildings under HPD’s jurisdiction.


Final Adopted Rules Regarding a Housing Information Guide for Tenants and Owners 
Effective Date: January 19, 2015

This final rule implements New York City Administrative Code section 26-1103, which was recently enacted by Local Law 45 of 2014.  Section 26-1103 requires owners of multiple dwellings to post a notice in a conspicuous place within view of the area in the multiple dwelling to which mail is delivered regarding the availability of a housing information guide for tenants and owners.  The law authorizes the Department of Housing Preservation and Development to determine the form of the required notice.


Adoption of Rules Regarding Temporary Posting of Emergency Information
Effective Date: May 3, 2014

The adopted rule implements section 27-2051.1 of the New York City Administrative Code, which requires owners of residential dwellings to post a temporary notice with emergency information in the common area of the building prior to the arrival of a weather emergency, a natural disaster, or after being informed about a utility outage that is expected to last for more than 24 hours. The sign must be removed after the weather emergency, natural disaster, or utility outage has ended. The law requires that the Department of Housing Preservation and Development publish a template that may be used by residential buildings for this purpose. The adopted rule provides such a template.