Common use of Long Term Monitoring Clause in Contracts

Long Term Monitoring. The FHLBNY Member Financial Institution and the Sponsor shall each perform their respective long term monitoring obligations set forth in the Plan and AHP Requirements. The FHLBNY Member Financial Institution and the Sponsor shall each further perform such other reporting as may be required by the AHP Requirements, or as may otherwise be requested by the FHLBNY. A. Owner Occupied Projects i. Transfers of title for owner-occupied projects are monitored through the AHP Subordinate Mortgage where a household receives AHP subsidy for purchase, purchase in conjunction with rehabilitation or construction of an owner-occupied unit. B. Rental Projects i. The AHP Regulation requires the FHLBNY to monitor rental projects for a period of fifteen (15) years (“Project Retention Period”). The Sponsor must submit a formal certification to the FHLBNY on an annual basis, beginning on the second anniversary date of Project completion (i.e., issuance of the final certificate of occupancy), that a) the tenants’ rents and incomes are in compliance with the rent and income targeting commitments made in the AHP Application; and b) the Project continues to be operated as an affordable housing initiative. ii. The required documentation schedule for rental projects is as follows: Project Characteristics Status Report Frequency Annual Certifications LIHTC allocation None required No AHP subsidy ≤ $50,000 None required Yes Project-based rental assistance 6 years Yes AHP subsidy > $50,000 or ≤ $400,000 6 years Yes AHP subsidy > $400,000 ≤ $750,000 4 years Yes AHP subsidy > $750,000 2 years Yes iii. For rental projects that receive an allocation of Federal Low Income Housing Tax Credits (“LIHTC”) or (“tax credits”) as a funding source, the FHLBNY will rely on the compliance monitoring performed by the state-designated housing credit agency administering the tax credits of the income targeting and rent requirements applicable under the LIHTC Program. The FHLBNY will not obtain and review reports from the tax credit agency or otherwise monitor the Project’s long-term AHP compliance. iv. Rental Projects that do not have an LIHTC allocation are subject to the following requirements: 1. Requirements for Project Sponsors: Projects sponsors will be required to submit long-term monitoring reports in accordance with the above Long Term Monitoring Documentation Schedule and related supporting documentation. In the second year after Project completion and annually thereafter until the end of the Project’s Retention Period, the Project Sponsor must maintain documentation and certify to the FHLBNY: • that the Project continues to be owned and managed in compliance with the AHP Requirements; • that tenant rents and incomes are in compliance with the rent and income targeting commitments specified in the AHP Application; • that all real estate tax remittances are current; and • that any debt payments on the Project are current.