N.Y. Comp. Codes R. & Regs. tit. 9 § 1901.5

Current through Register Vol. 46, No. 36, September 4, 2024

Section 1901.5 - Eligible construction, rehabilitation and conversion costs

(a) The eligible costs of a Housing Trust Fund project shall be the actual and necessary cost of construction, rehabilitation or conversion, including but not limited to:

(1) construction and rehabilitation costs such as labor, materials, construction manager or contractor's fees and charges, site preparation and demolition;

(2) architectural, engineering or related professional services required in the preparation of construction or rehabilitation plans and drawings or write-ups, or in the inspection of construction of the project, whether performed by the applicant or outside consultants;

(3) costs of obtaining the construction or rehabilitation financing for a project, such as public or private lender origination fees, credit reports, fees for title searches, fees for recording and filing of legal documents, building permits, attorneys' fees, private appraisal fees and fees for an independent construction or rehabilitation cost estimates;

(4) fees charged by a public or private lender associated with the disbursement of funds;

(5) necessary and reasonable costs of temporarily relocating tenants who are displaced by the rehabilitation activities;

(6) the cost of acquisition of property, including fees for the title search, title insurance, fees for recording and filing of legal documents, attorney's fees, or private appraisal fees; however, said costs shall not exceed 25 percent of the payment, grant or loan;

(7) carrying costs during the period of construction, rehabilitation or conversion, such as interim financing, insurance, taxes, sewer, water rents or user charges;

(8) working capital fund to be used for startup expenses, including but not limited to liability insurance, fidelity bond premiums, utility hook-up deposits, maintenance equipment, movable furnishings and equipment and other initial project related expenses as determined by the corporation;

(9) replacement reserve to be used for capital improvements and repairs;

(10) fees charged by local program administrators for project-related technical services rendered on behalf of the project recipient; and

(11) annual independent audit of project funds.

(b) Payments, grants or loans hereunder received for the construction, rehabilitation or conversion of a project may be used for acquisition, but the amount used for this purpose shall be limited to 25 percent of such payments, grants or loans.

(c) Payments, grants or loans hereunder may not be used by the project recipient, local program administrator, or subrecipient for general administrative costs.

(d) Payments, grants or loans hereunder may not be used by the project recipient, local program administrator, or subrecipient for the cost of construction, conversion or rehabilitation of residential units which will subsequently be occupied by persons other than persons of low income.

(e) Payments, grants or loans hereunder may not be used by the project recipient, local program administrator, or subrecipient for the cost of construction, conversion or rehabilitation of units or space which is occupied or will subsequently be occupied for other than residential purposes.

(f) None of the assistance awarded hereunder shall be used for common elements which exclusively benefit the nonresidential space. Eligible costs shall include only that portion of the costs of construction, rehabilitation or conversion of shared common elements attributable to the residential purposes of the project.

(g) Eligible costs shall be limited to those necessary to the efficient construction, rehabilitation or conversion of the project, with reasonable provisions for cost containment. All units assisted hereunder within a project shall be similarly constructed, rehabilitated or converted without unreasonable or excessive improvements to any individual unit.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1901.5