New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter VI - Neighborhood Park Land Acquisition Program › Subchapter B - Low-income Housing Tax Credit Program › Part 2040 - Low-income Housing Tax Credit Program › Section 2040.10 - Notification of noncompliance

Current through Register Vol. 46, No. 28, July 10, 2024
In addition to any other remedies which may be available,
						in accordance with the requirements of the code, the division shall notify
						project owners and the IRS of noncompliance with any of the above requirements
						or failure to submit any owner certification required by this plan as
						follows:
(a) The division shall
					 provide prompt written notice to the owner of a low-income housing project if
					 the division does not receive the certification described in section
					 2040.8 of this Part or does not
					 receive, or is not permitted to inspect, the tenant income certifications,
					 supporting documentation, and rent records described in section
					 2040.7 of this Part, or discovers
					 upon inspection, review, or in some other manner, that the project is not in
					 compliance with the provisions of the code.
(b) The division shall file a "Low-Income
					 Housing Credit Agencies Report of Noncompliance or Building Disposition," (the
					 "form"), and/or provide such other notification as required by the code, with
					 the IRS no later than 45 days after the end of the correction period (as
					 described in subdivision [c] of this section, including such extensions of time
					 granted by the division for correction) and no earlier than the end of the
					 correction period, whether or not the noncompliance or failure to certify is
					 corrected; and shall explain on the form the nature of the noncompliance or
					 failure to certify and indicate whether the owner has corrected the
					 noncompliance or failure to certify. Any change in either the eligible basis or
					 applicable fraction under section
					 2040.8(b)(2)(vii) and
					 (viii) of this Part respectively, that
					 results in a decrease in the qualified basis of the project under code section
					 42(c)(1) is noncompliance that must be reported to the IRS. If the division
					 reports on the form that a building is entirely out of compliance and will not
					 be in compliance at any time in the future, the division need not file the form
					 in subsequent years to report that building's noncompliance. (The division
					 shall file the form with the IRS to report a sale of a project and/or building
					 for which the low-income housing credit is, or has been allowable at any time.)
					 If the noncompliance or failure to certify is corrected within three years
					 after the end of a correction period, the division shall file the form with the
					 IRS reporting the correction of the noncompliance or failure to
					 certify.
(c) The division shall
					 provide the owner a correction period in which to cure a failure to certify or
					 event(s) of noncompliance. The correction period shall not exceed 90 days from
					 the date the division sends a notification of noncompliance. The division may
					 extend the correction period for up to six months if, in its sole discretion,
					 the division determines there is good cause for granting the
					 extension.