(a) If the division determines at any time that a housing company, its officers, directors, employees, agents, managing agent or project management of a self managed company have failed to comply with its agreements, these regulations, or division directives or if they are failing to or threatening not to do that which is required by law or regulation, the division may:

1. (1) deny any annual percentage increment of the compensation of the managing agent;
2. (2) reduce the compensation of the managing agent already in effect;
3. (3) cause the discharge of the managing agent or employee of the housing company or managing agent;
4. (4) cause the immediate suspension of any contract or purchase entered into by the housing company or its managing agent;
5. (5) in the case of a self-managed housing company, revoke division approval of its self-management;
6. (6) in the case of a managing agent, terminate the managing agent's agreement immediately or at the end of the current contract term;
7. (7) take any such non-compliance into account in evaluating participation in other division-supported projects or activities;
8. (8) direct the housing company or managing agent to deposit a portion of the fee, compensation or salary associated with project management as it is or becomes due in a restricted account to be withdrawn only upon approval by the division;
9. (9) with respect to violation relating to tenant selection and eligibility, take over control of all internal and external waiting lists and have sole responsibility for the selection and approval of admissions and transfers;
10. (10) direct that a consultant chosen by the division be retained by the housing company to perform any of the functions otherwise required to be performed by a managing agent or by employees or contractors in a self-managed housing company. During the period that such function is performed by the consultant the project management fee shall be reduced accordingly;
11. (11) direct that a full-time or part-time site manager be employed to effectively carry out prescribed project management functions. For a housing company employing a managing agent, such site manager shall be reimbursed by the housing company for up to 50 percent of either the manager's entire salary and fringe benefits or, in the event of a part-time site manager, a prorated portion of the salary and fringe benefits;
12. (12) may assume sole responsibility for any of the functions otherwise required to be performed by a managing agent or by employees or contractors in a self-managed housing company. During such period of division control, the housing company shall compensate the division for all associated costs and any project management shall be accordingly reduced;
13. (13) with respect to warehousing as described in section 1727-1.5 of this Title, directors, managing agents, or housing company employees may be held liable to the housing company for any rent losses incurred; and;
14. (14) subject the individuals or entity to such orders, directives, penalties, or remedies as are otherwise provided or allowed by law;
15. (15) remove any or all members of the Board of Directors and replace them;
16. (16) where a housing company has received an additional real property tax exemption from a municipality which is conditioned upon compliance with the applicable provisions of the PHFL and the applicable rules, regulations or other requirements of the division or U.S. Department of Housing and Urban Development or the term of any regulatory agreement or contract with which such housing company fails to comply, advise the city or municipality of such non-compliance and that such additional real property tax exemption should be terminated;
17. (17) require a housing company to seek a certificate from the division that the division has no objection to the housing company commencing an eviction proceeding in a specific case or on any or all grounds specified in section 1727-5.3 of this Title.

(c) At any stage of such a proceeding the division may:

1. (1) make investigations of the facts, conduct inspections, hold conferences, and require the filing of reports, evidence, affidavits, or other material relevant to the proceeding;
2. (2) forward to, or make available for inspection, by either an interested party, a witness or the subject of such remedy, any relevant evidence, and afford an opportunity to file a response thereto;
3. (3) for good cause shown, accept for filing any papers;
4. (4) require any person to appear or produce documents or both, pursuant to division directive or subpoena issued by the division;
5. (5) consolidate two or more such proceedings which have at least one ground in common;
6. (6) forward to the subject of such remedy a notice of action proposed to be taken;
7. (7) grant or order a hearing.

(d) The division, on such terms and conditions as it shall determine, may:

1. (1) approve, grant, direct or deny such remedy in whole or in part;
2. (2) issue an order requiring such provisional or conditional remedy or further opportunity to cure such violation as the division deems appropriate.

(e) Where DHCR directs the implementation of paragraph (a)(17) of this section:

1. (1) The housing company shall serve a copy of the petition upon the tenant affected in such manner as the division directs, prior to the filing of such petition with the commissioner, which shall also contain proof of such directed service.
2. (2) The petition served upon the tenant will include a notice that tenant has no less than 20 days from the date of service pursuant to paragraph (1) of this subdivision within which to serve the Commissioner of Housing and Community Renewal and the housing company with a verified statement setting forth any objections he may have to the granting of the requested approval.