16. Limited-profit housing companies; partnership relations. Notwithstanding any provisions in this article to the contrary, but subject to such regulations as may be prescribed by the commissioner or the supervising agency, as the case may be:
1. (a) Any company may be a partner (general or limited) in a partnership (general or limited) formed for the purpose of providing such company with capital. Any company incorporated pursuant to the provisions of this article may, with the consent of the commissioner or the supervising agency as the case may be, become a partner (general or limited) in a partnership (general or limited) upon the consent of the company to the refinancing of its original mortgage loan by a mortgage loan insured by the Federal government; such a partnership shall have the same powers and duties as provided by this article as a partnership formed for the purpose of providing a company with capital.
(b) Any partner (general or limited) of any partnership (general or limited) in which a company is a partner (general or limited) may be the owner or holder of any shares, bonds, income debentures, notes or other securities of such company.
(c) Any company which is a partner (general or limited) in any such partnership (general or limited) may exercise all the rights and powers and shall be subject to all the duties and obligations of a company in accordance with this article.
2. The capital structure of a company which is a partner (general or limited) in a partnership (general or limited) formed pursuant to paragraph (a) of subdivision one of section sixteen may include withdrawals from the capital of such a partnership (general or limited).
The provisions of this article relating to shares and income debentures shall be deemed to include withdrawals from the capital of a partnership (general or limited) of which a company is a partner (general or limited).
3. For the purposes of this section, the term partner shall be deemed to include a member of a limited liability company, and the term partnership shall be deemed to include a limited liability company, provided there is disclosure of the identity of the managing member, including the identity of the natural person who is responsible for the housing development. Notwithstanding any provision of this section to the contrary, any change in general partner of a partnership or managing member of a limited liability company shall be subject to the prior, written approval of the commissioner or supervising agency.
Last modified: February 3, 2019