N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1640-4.2
The standards applied to the determination of the eligibility, as development costs, of indeterminate expenditures are much narrower than those applied to expenditures made subsequent to the date of the contract for State aid. Such expenditures are not only limited to certain classes, but the maximum amount which may be charged to development cost, whether or not the expenditures are otherwise eligible, may also be limited. Generally speaking, within the maximum limitation set by the division, only indeterminate expenditures directly connected with the preparation and submission of the application for financial assistance, or with a housing survey to establish the need for and scope of a project will be admitted as development costs eligible to be reimbursed out of loan funds advanced or to be advanced by the State. Generally speaking, salaries of an executive director or staff, office rent, and most other expenses or costs incurred by a local agency prior to the beginning of the development period will not be admitted. Local agencies are therefore advised to consult with the division before incurring indeterminate expenditures in order to predetermine, as far as possible, their eligibility and to avoid the necessity of making adjustments at a later date.
N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1640-4.2