(a) It is hereby declared to be the purpose of this Subpart to formulate a systematic and objective budget and rent determination procedure; to assure that all parties affected by that procedure are afforded participation in the administrative process through access to information and opportunity to comment thereon; to encourage and promote openness in the administrative proceeding; to combine the housing company budget procedure with the rent determination process; to assure funding for sound maintenance of the condition and facilities of State-supervised projects; to fulfill statutory obligations involving a balancing process which protects the interests of the tenants and cooperators, the housing companies, the bondholders and the people of the State of New York; and to uphold the public policy as expressed in the New York State Constitution and the Private Housing Finance Law.

(b) Budget preparation and rent determinations shall take place in accordance with the schedule prescribed in section 1728-1.2 of this Subpart. The housing company is not, however, precluded from making application for a rental adjustment at any other time, nor is the division limited in its authority, pursuant to law, to direct the making of such application or to issue an order of the division adjusting rents consistent therewith. The procedures and time periods prescribed in section 1728-1.2 of this Subpart, except as otherwise prescribed by the division, shall, where applicable, govern such proceedings.

(c) Where necessary to carry out the policy of the Private Housing Finance Law and the policies of the Division of Housing and Community Renewal, the commissioner may modify any provision of this section or section 1728-1.2 of this Subpart.