New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter XI - Miscellaneous Provisions › Part 2658 - Limits On Administrative Expenses And Executive Compensation › Section 2658.8 - Penalties

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Notice of
				  preliminary determination of non-compliance. Whenever it is determined that a
				  covered provider may not be in compliance with the requirements of section
				  2658.4 or 2658.5 of this Part and has not
				  obtained a waiver, the provider shall be notified in writing of the basis for
				  that determination. Such notice shall provide the covered provider with an
				  opportunity and a procedure to submit additional or clarifying information
				  within 30 calendar days of the provider's receipt of such notice to demonstrate
				  compliance with this Part. Failure to submit additional or clarifying
				  information within the required time period shall result in the determination
				  of non-compliance becoming final.
(b) Corrective action period. If the
				  determination of non-compliance becomes final as set forth in subdivision (a)
				  of this section or if the office or its designee determines, after reviewing
				  and considering any information submitted by the covered provider, that such
				  provider is not in compliance with the requirements of section 2658.4 or
				  2658.5 of this Part, the provider
				  shall receive notice of such determination and a notice to cure. Such notice
				  shall allow the covered provider a period of not less than six months to
				  correct the violation(s) identified (the "corrective action period") prior to
				  additional enforcement action or penalties being imposed, and shall require
				  that the covered provider submit within 30 calendar days a corrective action
				  plan (CAP) for approval by the office or its designee.
(c) Corrective action plan. Within 30
				  calendar days of receipt of the covered provider's CAP, the office or its
				  designee shall either approve such CAP or request clarification or alterations.
				  The covered provider shall make such alterations to the CAP as may be
				  reasonably required by the office or its designee. Once the CAP has been
				  approved and the covered provider notified, and unless otherwise provided in
				  the approved CAP, the covered provider shall have six months to complete the
				  CAP and comply with this Part.
(d)
				  Failure to cure. At the conclusion of the period for implementation of an
				  approved CAP, the office or its designee may request information from the
				  covered provider to determine whether the CAP has been fully and properly
				  completed. If it has been so completed, the matter shall be considered closed
				  and no further action on the part of the office or the provider shall be
				  required. If the office or its designee determines that the CAP has not been
				  fully and properly implemented within the designated corrective action period,
				  the office or its designee shall provide written notice to the provider and may
				  take one or more of the following actions, taking into account the seriousness
				  of the violations, the nature of the provider's services, and the provider's
				  efforts to correct the violations, if any:
(1) At its sole discretion, modify the CAP
				  and/or extend the time for the provider to complete implementation.
(2) Issue a final determination of
				  non-compliance, together with a notice of the sanctions which the office seeks
				  to impose. Such sanctions may include:
(i)
				  redirection of State funds or State-authorized payments to be used to provide
				  program services, where possible and consistent with Federal and State
				  laws;
(ii) suspension,
				  modification, limitation, or revocation of the provider's license(s) to operate
				  program(s) for the delivery of program services;
(iii) suspension, modification or termination
				  of contracts or other agreements with the covered provider; and
(iv) any other lawful actions or penalties
				  deemed appropriate by the office or its designee.