New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter IV - State-assisted Housing Constructed By Private Enterprise › Subchapter C - Housing Company Management › Part 1733 - Partnership Relations And Transfers Of Interests In Rental Housing Companies › Section 1733.1 - Rights and duties of partnerships and housing companies

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Partnership agreements. Partnership
					 agreements and amendments thereto must be in compliance with the Private
					 Housing Finance Law and regulations, and are subject to the prior, written
					 approval of the commissioner.
(b)
					 Financial records and partnership distributions. A partnership shall furnish to
					 the commissioner such financial and other reports as the commissioner deems
					 necessary. All distributions by a partnership are subject to the prior, written
					 approval of the commissioner.
(c)
					 Partnership/housing company transactions. A housing company which is in a
					 partnership, or a partnership acting on behalf of a housing company, may not
					 enter into contracts with persons or entities in which the general partner or
					 any person or entity who is actively involved in the ownership or management of
					 the property has a direct or indirect interest, or which are controlled by such
					 general partner or other person or entity, without the prior, written approval
					 of the commissioner.
(d) Transfers
					 of interests in partnerships. Transfers of general partner or controlling
					 interests in the partnership, including but not limited to the substitution or
					 admission of a new general partner, are subject to the prior, written approval
					 of the commissioner.
(e) Transfers
					 of interests in housing companies. An interest in a housing company may not be
					 sold or otherwise transferred without the prior, written approval of the
					 commissioner.
(f) Standard of
					 review. In reviewing requests for approval of changes in ownership interests
					 under this section, in addition to determining compliance with all other
					 requirements for such sales or transfers, the commissioner shall determine that
					 the proposed purchaser or transferee is a qualified and responsible owner,
					 which shall mean that the proposed purchaser or transferee has the capacity to
					 maintain such property in good physical and financial condition, and in
					 compliance with program requirements. In making such determination, the
					 commissioner may consider the purchaser or transferee's past performance with
					 regard to the following factors:
(1)
					 successful experience in owning or managing comparable residential
					 properties;
(2) mortgage
					 defaults;
(3) suspensions,
					 debarments, terminations or substandard performance under a government
					 program;
(4) loss of any licenses
					 or permits;
(5) criminal
					 convictions;
(6) civil injunctions
					 or other court sanctions, including any judgments;
(7) defaults on loans or surety or
					 performance bonds;
(8) building
					 maintenance and code violations on other buildings;
(9) bankruptcies; and
(10) other factors which bear on the capacity
					 of the purchaser or transferee to maintain the project in good physical and
					 financial condition and otherwise comply with program requirements.