21 CRR-NY 2163.2NY-CRR
21 CRR-NY 2163.2
21 CRR-NY 2163.2
2163.2 Minimum program requirements.
Grants can only be made to selected eligible applicants who have submitted an application which contains a plan that will enable the corporation to determine that:
(a) The proposed project or program will make home ownership or home improvement affordable to persons who cannot afford to purchase or improve homes by relying upon the ordinary, unaided operation of private enterprise.
(b) There are criteria, satisfactory to the corporation, which provide for maximum income limitations or a system of income targeting designed to ensure that persons who purchase or improve homes which benefit from financial assistance provided pursuant to the act, are persons who, through the ordinary, unaided operation of private enterprise, would be unable to purchase or improve homes.
(c) There are criteria, satisfactory to the corporation, to ensure to the maximum extent feasible, that rental units in two- to four-unit structures (other than the unit to be occupied by the homeowner) will be affordable to persons or families who otherwise could not afford to rent these new, rehabilitated or improved units if produced by the ordinary, unaided operation of private enterprise.
(d) The payments, grants and loans provided by grantees pursuant to the act will be supplemented by private or other public investment and the payments, grants and loans provided by the grantee are the least necessary to make home ownership or home improvement affordable to the income group to be served by the proposed project or program.
(e) In the event that the proposed project(s) or program activities are undertaken by other than not-for-profit corporations or municipalities, then the individuals, partnerships or corporations undertaking those activities will agree to limit their profit in accordance with a formula, satisfactory to the corporation, which has been established by the grantee.
(f) The proposed project or program will provide assistance in an area which is blighted, deteriorated or deteriorating, or has a blighting influence on the surrounding area, or is in danger of becoming a slum or a blighted area because of the existence of substandard, insanitary, deteriorating or deteriorated conditions, an aged housing stock or vacant nonresidential property, or other factors indicating an inability or unwillingness of the private sector unaided to cause the construction, rehabilitation or home improvement for which payments, grants and loans under this program are provided.
(g) Except as provided in subdivision (h) of this section in the case of home improvement, funds will be recaptured if the home buyer does not occupy the home as his/her principal place of residence for a minimum of 10 years or for the period specified under the terms and conditions of a formula established by the eligible applicant as approved by the corporation. At a minimum, the grantee will require home buyers to agree, in such form as the corporation may require (including, a mortgage and note secured by the home) that in the event the home buyer does not occupy his/her home for the minimum 10-year period, the home buyer will pay the corporation the following sum (unless the corporation approves a different formula proposed by the eligible applicant):
(1) if the home buyer occupies his/her home for less than five years, then the home buyer must pay the full amount of the assistance provided under the act attributable to the home buyer's home; or
(2) if the home buyer occupies his/her home for at least 5 years but less than 10 years, then the home buyer must pay that portion of the assistance provided under the act attributable to the home buyer's home reduced by 20 percent for each year that the home buyer occupied his/her home beyond 5 years and less than 10 years. For purposes of this paragraph, occupancy during six months or more in any year will be deemed to be a full year of occupancy, and therefore, the amount payable will be reduced accordingly for such year; and occupancy of four months to under six months in any year will be deemed to be occupancy for one half of a year, and therefore, one half of the amount payable per year will be payable for that year.
The amount to be repaid as provided in this subdivision may be reduced by the amount that the home buyer has previously paid to the corporation on the principal amount of any loan provided under the act attributable to the home buyer's home. In addition, if the resale price is less than the home buyer's original purchase price plus the cost of any capital improvements made by the home buyer, other than capital improvements for which assistance was provided in whole or in part under the act, or in the event of severe hardship such as death of the owner, financial or natural disaster, the grantee may propose a modification of the home buyer's agreement hereunder which will be subject to the corporation's approval.
(h) In the case of a home improvement project(s) or program, funds will be recaptured if the homeowner does not occupy the home as his/her principal place of residence for the minimum period required in accordance with the formula provided in this subdivision or for the period specified under the terms and conditions of a formula established by the eligible applicant as approved by the corporation. At a minimum, in all home improvement project(s) or programs (unless the corporation approves a different formula proposed by the eligible applicant), the grantee will require homeowners to agree, in such form as the corporation may require, that the homeowner will occupy his/her home for the periods required or pay the corporation a sum in accordance with the formula set forth below. The corporation may require that the form of such agreement may include a note and mortgage except that a note and mortgage shall not be required when the assistance provided to a home owner for home improvements is less than or equal to $2,000 (irrespective of the number of units in the structure) and the corporation approves different provisions for recapture of assistance by the grantee which are not unduly burdensome and are reasonably enforceable.
(1) if the total amount of assistance provided under the act attributable to the homeowner's home is less than or equal to $5,000 (irrespective of the number of units in the structure), then the homeowner will agree to occupy his/her home for a minimum period of two years from the date of completion of the improvement, as such date is determined by the grantee, or to repay the full amount of the assistance provided under the act;
(2) if the total amount of assistance provided under the act attributable to the homeowner's home is more than $5,000 but less than or equal to $10,000 (irrespective of the number of units in the structure), then the homeowner will agree to occupy his/her home for a minimum period of five years from the date of completion of the improvement, as such date is determined by the grantee, or to repay the full amount of the assistance provided under the act; and
(3) if the total amount of assistance provided under the act attributable to the homeowner's home is more than $10,000 (irrespective of the number of units in the structure), then the homeowner will agree to repay the assistance as follows:
(i) if the homeowner occupies his/her home for less than five years from the date of completion of the improvement, as such date is determined by the grantee, then the homeowner must pay the full amount of the assistance provided under the act attributable to the homeowner's home; or
(ii) if the homeowner occupies his/her home for at least 5 years but less than 10 years from the date of completion of the improvement, as such date is determined by the grantee, then the homeowner must pay that portion of the assistance provided under the act attributable to the homeowner's home reduced by 20 percent for each year that the homeowner occupied his/her home beyond five years and less than 10 years from the date of completion of the improvement, as such date is determined by the grantee. For purposes of this subdivision, occupancy during six months or more in any year will be deemed to be a full year of occupancy, and therefore, the amount payable will be reduced accordingly for such year; and occupancy of four months to under six months in any year will be deemed to be occupancy for one half of a year, and therefore, one half of the amount payable per year will be payable for that year.
The amount to be repaid as provided above may be reduced by the amount that the homeowner has previously paid to the corporation on the principal amount of any loan provided under the act attributable to thehomeowner's home. In addition, if the resale price is less than the homeowner's original purchase price plus the cost of any capital improvements made by the homeowner other than capital improvements for which assistance was provided in whole or in part under the act, or in the event of severe hardship such as death of the owner, financial or natural disaster, the grantee may propose a modification of the homeowner's agreement hereunder which will be subject to the corporation's approval.
(i) In the case of a rehabilitation or home improvement project(s) or program, more than 50 percent of the payments, grants and loans provided for each home will be used to perform work which prolongs the useful life of the home or shall be used to correct basic structural defects or to repair basic building systems which threaten, or if not corrected or repaired could threaten, the health and safety of the dwelling's residents.
21 CRR-NY 2163.2
Current through May 31, 2021
| End of Document |