N.Y. Comp. Codes R. & Regs. tit. 9, § 1727-4.3 – Write-offs of uncollectible accounts.

(a) Reasonable efforts should be made by the housing company to locate the tenant, discover the tenant's available assets and collect the indebtedness, before recommending a vacated tenant's accounts receivable as a collection loss write-off.
(b) Where collection efforts on the part of the housing company have not been successful, the housing company may turn over uncollected accounts to a collection agency may be obtained on request. The agreement between the company and the collection agency.
(c) Where efforts prove to be unsuccessful and account appears to be uncollectible, write-off should be handled as follows:
1. (1) An individual tenant's accounts receivable up to $5,000 may be written off at discretion of housing company.
2. (2) An individual tenant's accounts receivable in excess of $5,000 may be written off only after approval by the division. Requests for such approval must be supported by the following:
  1. (i) detailed description of collection efforts made by the housing company;
  2. (ii) summary of credit report covering each case giving pertinent facts upon which a decision as to uncollectibility can be based; and
  3. (iii) recommendations of housing company counsel.
3. (4) Except for cases of fraud and misrepresentation, housing company counsel may be permitted to settle accounts of vacated tenants regardless of the amount involved when such settlement is of an urgent nature and approved by the board of directors. The division must be advised of such settlements in cases where indebtedness exceeds $5,000. No write-offs can be made without division approval where rent was payable by a former director of the housing company or any other individual who had or has a position or relationship identified in the identity of interest provisions of this Chapter.