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 1646-3 - Requisitions Of Loan Funds › Section 1646-3.2 - Certificate of purposes

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
						General. The Certificate of Purposes (form DH-216) is a printed form supplied
						by the division and consists of three sheets. A specimen certificate of
						purposes is shown as Exhibit 3, 4 and 5 of Appendix S-11. The certificate of
						purposes supports the housing loan voucher and purports to show in accordance
						with the uniform classification of accounts, how the funds which are to be
						borrowed will be used by the local agency in the development of the project.
						The certificate of purposes, in addition, recapitulates how the funds
						previously borrowed were to be used, relates the breakdown of the anticipated
						uses of the previous and current borrowings to the most recent approved
						development cost budget (sheets 1 and 2) summarizes the development costs
						incurred and disbursed (sheet 2) and reconciles the latter to the development
						fund bank balances (sheet 3). Approval and payment of a requisition does not,
						however, constitute prior approval as to the disbursement of funds for the
						particular items set forth in the certificate of purposes, nor does it permit
						the disbursement of funds, in any manner except as provided by law and the
						contract for State aid.
(b)
						Instructions for the preparation of certificate of purposes. Detailed
						instructions for the preparation of the certificate of purposes will be found
						on sheet 3 of the certificate of purposes (Exhibit 5, Appendix S-11).
						Supplementary instructions follow:
(1)
						Account classification (column 1, sheets 1 and 2). Local agencies shall not
						include items and amounts on the untitled lines without first furnishing the
						division with a complete description of the nature of such items and receiving
						advice as to the approved classification.
(2) Requirements for the period of the
						requisition (column 3, sheets 1 and 2).
(i)
						The period of the requisition refers to the future period (in most cases, six
						months, but never in excess of one year) during which it is anticipated that
						the loan funds which are to be borrowed will be used. Where the loan funds are
						to be borrowed from sources other than the State, the period of the requisition
						must be the same as the term of the temporary loan note to be issued and the
						closing date of the period will be the date of maturity of the temporary loan
						note to be issued. Ordinarily, the term of a temporary loan note is six months.
						In some cases the term may be extended to one year with the prior approval of
						the division.
(ii) The amounts
						entered in column 3 should be to the nearest dollar, the cents being omitted,
						and the grand total of column 3 should be to the nearest $1,000.
(iii) A worksheet justifying the amounts to
						be entered in column 3 is shown as Exhibit 6 of Appendix S-11. The exhibit is
						not complete, but it indicates the recommended approach to preparing a
						certificate of purposes. The use of this worksheet will not only facilitate the
						preparation of the certificate of purposes but copies thereof filed with the
						certificate of purposes will also greatly facilitate the processing of the
						latter. The starting point for the preparation of the worksheet should be the
						Analysis of Expenditures--Budget Control Statement, form DH-213, of the most
						recent date. In preparing the specimen worksheet (Exhibit 6, Appendix S-11) in
						support of the specimen certificate of purposes (Exhibit 3, 4 and 5, Appendix
						S-11) the following facts, as reflected in the certificate of purposes, were
						assumed:
(a) Closing date of requisition
						previously filed. February 1, 1956. This date coincides with the maturity date
						of the current temporary loan note and it is presumed that funds will be
						required to refinance the maturing temporary loan notes and to meet the
						anticipated requirements of the period of the requisition being
						prepared.
(b) Period of this
						requisition. Six months ending August 1, 1956.
(c) Date of preparation of the requisition.
						December 10, 1955. This date, it should be noted, would permit the requisition
						papers to be filed with the division six weeks before February 1, 1956, the
						date the funds to meet the anticipated requirements for the period of the
						requisition will be borrowed.
(d)
						Date of most recent form DH-213. November 30, 1955. The costs incurred for the
						various classifications are taken from column 5 of form DH-213 (see Exhibits 24
						and 25 of Appendix S-11).
(iv) A study of the specimen worksheet
						(Exhibit 6, Appendix S-11) will show that column 3 will reflect anticipated
						requirements for the period of the requisition after they have been adjusted
						for over- and under-estimates of requirements in previous requisitions. See
						also subdivision (d) of this section.
(3) Total requirements (column 5, sheets 1
						and 2).
(i) As noted above, the date to be
						inserted at the head of this column refers to the closing date of the period
						during which, it is anticipated, that the funds to be borrowed will be used. If
						the funds are to be borrowed from sources other than the State, the closing
						date of the period will be the date of maturity of the temporary loan note to
						be issued.
(ii) If funds are to be
						borrowed from sources other than the State, the total requirements must include
						provision for interest on the temporary loan note(s) to be issued, at an
						assumed rate which should be not less than the current market rate. The
						provision for the interest on the temporary loan note(s) should be reflected in
						a footnote to the total requirements for account 1420.1, Interest Expense, as
						indicated on the specimen sheet 1 of the certificate of purposes (Exhibit 3 of
						Appendix S-11) and is included in the amount of the advance loan note to be
						issued to the State, but not in the amount of the temporary loan note(s). The
						provision for the interest therefore represents the difference between the
						amount of the advance loan note and the amount of the temporary loan note(s),
						as indicated at the foot of sheet 2 of the specimen certificate of purposes
						(Exhibit 4 of Appendix S-11). It is important that the total requirements and
						the provision for interest be expressed in even thousands of dollars so that
						the advance loan and temporary loan notes are likewise in even thousands of
						dollars.
(4) Summary
						(sheet 2). Columns 3, 4 and 5 of the summary on sheet 2 merely recapitulate the
						breakdown of the requirements on sheet 1 and need no further explanation. The
						source of the information for columns 6 and 7 of the summary is the Analysis of
						Expenditures--Budget Control Statement, form DH-213, of the most recent date,
						which date should be inserted in the headings of each column. The figures to be
						inserted in column 7, development costs incurred, are taken from column 5 of
						form DH-213. The individual items in column 7 are adjusted for development cost
						accruals and payables, as listed in schedule B of form DH-213, to yield the
						figures to be inserted in column 6, amounts disbursed for development costs.
						The total of column 6 should then be carried forward to column (e) of sheet 3
						of the certificate of purposes.
(5)
						Other disbursements (line [h], sheet 3). This item represents the net of
						disbursements of development funds not charged to development costs
						(investments, prepaid insurance, etc.) and of amounts, other than loan funds,
						deposited in the development fund but not credited to development costs
						(deposits on plans and specifications, etc.) The source of the information
						required for this item is schedule A of form DH-213. A study of Exhibit 7 of
						Appendix S-11, worksheet for 'other disbursements', certificate of purposes
						together with the specimen of form DH-213 (Exhibits 24 and 25 of Appendix S-11)
						will indicate the procedure to be followed.