New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1646 - Development Period Accounting › Subpart 1646-4 - Land Acquisition › Section 1646-4.1 - Acquisition by private purchase

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
						The procedure for acquiring land requires the prior written approval of the
						option or contract for the purchase of each parcel or for the purchase of each
						interest therein and of the consideration to be paid therefor. Such approval
						will ordinarily be endorsed by the division on the signature sheet of the
						option or contract prior to the execution thereof by the local
						agency.
(b) Commitments for the
						acquisition of land by private purchase will not be reflected in the accounts
						until the accounts payable voucher authorizing the drawing of a check is
						prepared. Such commitments will automatically be reflected in column 8,
						estimated future commitments, of form DH-213, the Analysis of
						Expenditures--Budget Control Statement. Accounts payable vouchers representing
						costs of land acquired by private purchase which are chargeable to account
						1440.1, Land Purchase Price, shall be supported by a closing statement prepared
						on the Real Estate Settlement Record, form DH-349, (see Exhibit 9 of Appendix
						S-11), the attorney's certificate of title and the letter of the division
						transmitting the approved option or contract. The approved option or contract
						shall be kept in a separate file. One accounts payable voucher may be prepared
						for the total purchase price of each parcel of land, or for several parcels
						under one option or contract and as many checks as may be required to liquidate
						the items constituting the distribution of the purchase price, as for owner's
						equities, mortgages, taxes, etc. may be drawn and appropriately recorded on the
						accounts payable voucher.
(c) In
						the event that the local agency acquires a mortgage on a parcel prior to
						acquiring the owner's equity, it is recommended that the consideration for the
						mortgage be charged, temporarily, to a mortgages receivable account, using one
						of the numbers in the 1120 group of accounts not otherwise assigned. The
						mortgages receivable account should be supported by a subsidiary ledger. Such
						mortgages are held alive until the mortgages are merged into the fee and the
						use of the mortgages receivable account and subsidiary ledger will more readily
						permit control over the billing of interest and amortization to the owners of
						the equities. When the owner's equity is subsequently acquired and the mortgage
						merged into the fee, the consideration for the mortgage, less any amortization
						received in the meanwhile, is transferred by journal voucher, to account
						1440.1, Land Purchase Price. Interest on such mortgage held alive shall be
						credited to account 1420.2, Interest Income.
(d) Under certain circumstances, all or part
						of a cost chargeable to account 1440.1, Land Purchase Price, may be deposited
						by the local agency in escrow. Such disbursements shall be charged to account
						1115, Special Deposits, pending the release of the money from escrow.