The additional requirements of this Section shall apply to rental affordable housing for the entire regulatory period, except that rental affordable housing restricted pursuant to an affordable housing regulatory agreement shall not be required to comply with this Section.

1. Tenant selection
   1. Upon rent-up and any subsequent vacancy for the entire regulatory period, affordable housing units shall only be leased to and occupied by households that satisfy the income bands applicable to such unit.
   2. A tenant may, with the prior approval of HPD, sublet an affordable housing unit for not more than a total of two years, including the term of the proposed sublease, out of the four-year period preceding the termination date of the proposed sublease. The aggregate payments made by any sublessee in any calendar month shall not exceed the monthly rent that could be charged to the sublessor in accordance with the restrictive declaration.
   3. A household may rent an affordable housing unit that is restricted to occupancy by households of higher income bands, provided that the household is able to utilize rent subsidies pursuant to a rental assistance program administered by any Federal, State, or local agency or instrumentality to afford the applicable monthly rent.
   4. Affordable housing units shall be marketed and leased in accordance with the guidelines.
2. Monthly rent
   1. Unless alternative provisions are established in the restrictive declaration or guidelines, the restrictive declaration shall provide that each affordable housing unit shall be registered with the Division of Housing and Community Renewal at the initial monthly rent established by HPD and shall thereafter remain subject to rent stabilization for the entire regulatory period and thereafter until vacancy.
      
      However, any affordable housing unit of preservation affordable housing that is both occupied by a grandfathered tenant and subject to the Emergency Housing Rent Control Law on the restrictive declaration date shall remain subject to the Emergency Housing Rent Control Law until the first vacancy following the restrictive declaration date and shall thereafter be subject to rent stabilization as provided herein.
      
      The restrictive declaration shall provide that upon each annual registration of an affordable housing unit with the Division of Housing and Community Renewal, the legal regulated rent for such affordable housing unit shall be registered with the Division of Housing and Community Renewal at an amount not exceeding the maximum monthly rent. However, the restrictive declaration shall provide that this requirement shall not apply to an affordable housing unit occupied by a grandfathered tenant until the first vacancy after the restrictive declaration date.
   2. Unless alternative provisions are established in the restrictive declaration or guidelines, the restrictive declaration shall provide that the monthly rent charged to the tenant of any affordable housing unit at initial occupancy and in each subsequent renewal lease shall not exceed the lesser of the maximum monthly rent or the legal regulated rent. However, the restrictive declaration shall provide that these requirements shall not apply to an affordable housing unit occupied by a grandfathered tenant, until the first vacancy after the restrictive declaration date.
      
      However, HPD may adopt guidelines to permit the monthly rent to exceed the maximum monthly rent, provided that the monthly rent, less rent subsidies pursuant to a rental assistance program administered by any Federal, State, or local agency or instrumentality, does not exceed the lesser of the maximum monthly rent or the legal regulated rent.
   3. Each year after rent-up, in the month specified in the restrictive declaration or the guidelines, the owner of the affordable housing units shall submit an affidavit to HPD attesting that each lease or sublease of an affordable housing unit or renewal thereof during the preceding year complied with the applicable monthly rent requirements at the time of execution of the lease or sublease or renewal thereof.
   4. For any affordable housing unit subject to rent stabilization, the applicable restrictive declaration shall provide that the lessor of an affordable housing unit shall not utilize any exemption or exclusion from any requirement of rent stabilization to which such lessor might otherwise be or become entitled with respect to such affordable housing unit, including, but not limited to, any exemption or exclusion from the rent limits, renewal lease requirements, registration requirements, or other provisions of rent stabilization, due to:
      1. the vacancy of a unit where the legal regulated rent exceeds a prescribed maximum amount;
      2. the fact that tenant income or the legal regulated rent exceeds prescribed maximum amounts;
      3. the nature of the tenant; or
      4. any other reason.
   5. Unless alternative provisions are established in the restrictive declaration or guidelines, the restrictive declaration and each lease of an affordable housing unit shall contractually require the lessor of each affordable housing unit to grant all tenants the same rights that they would be entitled to under rent stabilization without regard to whether such affordable housing unit is statutorily subject to rent stabilization. If any court declares that rent stabilization is statutorily inapplicable to an affordable housing unit, such contractual rights shall thereafter continue in effect for the remainder of the regulatory period.
   6. Unless alternative provisions are established in the restrictive declaration or guidelines, the restrictive declaration shall provide that each affordable housing unit that is occupied by a tenant at the end of the regulatory period shall thereafter remain subject to rent stabilization for not less than the period of time that such tenant continues to occupy such affordable housing unit, except that any occupied affordable housing unit that is subject to the Emergency Housing Rent Control Law at the end of the regulatory period shall remain subject to the Emergency Housing Rent Control Law until the first vacancy.
3. Income
   1. Each affordable housing unit shall be leased to and occupied by households of the applicable income band for the entire regulatory period, except as may be otherwise set forth in the guidelines with respect to internal transfers.
   2. The owner of the affordable housing units shall verify the household income of the proposed tenant prior to leasing any vacant affordable housing unit in order to ensure that it is a household that qualifies at the income band applicable to such unit, except as may be otherwise set forth in the guidelines with respect to internal transfers.
   3. Each year after rent-up, in the month specified in the restrictive declaration or the guidelines, the owner of the affordable housing units shall submit an affidavit to HPD attesting that each household that commenced occupancy of a vacant affordable housing unit during the preceding year, and each household that subleased an affordable housing unit during the preceding year, complied with the applicable income eligibility requirements at the time of initial occupancy.
4. #Affordable housing application
   1. An affordable housing application shall include the building plans, state the number, bedroom mix and income band applicable to the affordable housing units to be developed, converted, or preserved, and include such additional information as HPD# deems necessary to ensure the satisfaction of the requirements of Section 27-10, inclusive.
   2. A copy of any affordable housing application shall be delivered, concurrently with its submission to HPD, to the affected Community Board.
5. Special requirements for rental preservation affordable housing
   
   The additional requirements of this paragraph, (e), shall apply to rental preservation affordable housing:
   1. all of the dwelling units, rooming units and supportive housing units in the UAP site, other than any super’s unit, shall be affordable housing units that are leased to and occupied by households within the applicable income band for the entire regulatory period;
   2. on the restrictive declaration date, the average of the legal regulated rents for all affordable housing units in the UAP site that are occupied by grandfathered tenants shall not exceed 30 percent of 60 percent of the income index divided by 12;
   3. on the restrictive declaration date, HPD shall have determined that the condition of the UAP site is sufficient, or will be sufficient after required improvements specified in the affordable housing application and the restrictive declaration, to ensure that, with normal maintenance and normal scheduled replacement of capital elements, the affordable housing units will provide a decent, safe and sanitary living environment for the entire regulatory period;
   4. on the restrictive declaration date, HPD shall have determined either that no capital element is likely to require replacement within 30 years from the restrictive declaration date or that, with regard to any capital element that is likely to require replacement within 30 years from the restrictive declaration date, a sufficient reserve has been established to fully fund the replacement of such capital element;
   5. except with the prior approval of HPD, monthly rents charged for affordable housing units shall not be increased to reflect the costs of any repair, renovation, rehabilitation or improvement performed in connection with qualification as a UAP site, even though such increases may be permitted by other laws;
   6. proceeds from sales of offsite affordable floor area must be approved by HPD as set forth in the guidelines or restrictive declaration; and
   7. such affordable housing shall comply with such additional criteria as may be specified by HPD in the guidelines.