New York Private Housing Finance Law Article 2 - LIMITED-PROFIT HOUSING COMPANIES

• 10 - Short Title.
  This article shall be known and may be cited and referred to as the "limited-profit housing companies law."
• 11 - Policy and Purposes of Article.
  It is hereby declared that there exists in municipalities in this state a seriously inadequate supply of safe and sanitary dwelling or non-housekeeping accommodations for...
• 11-a - Additional Policy and Purposes of Article.
  1. It is hereby declared that the elimination of conditions causing a deterioration of the quality of urban life in municipalities of the State and...
• 12 - Definitions.
  As used in this article, the following terms shall mean and include: 1. "Areas." A section of a municipality in which there is to be...
• 13 - Limited-Profit Housing Companies; How Created.
  A company may be created by three or more persons, approved by the commissioner, by making, subscribing, acknowledging and filing with the secretary of state...
• 13-a - The Applicability of Not-For-Profit Corporation Law.
  1. The not-for-profit corporation law applies to every company heretofore or hereafter formed under this article and the not-for-profit corporation law, provided that: (a) If...
• 13-b - Verification of Papers Filed With Supervising Agency.
  Any document required to be filed with the supervising agency regarding rental units, either state or municipal, shall be duly verified under oath of the...
• 14 - Consent of Commissioner to Incorporation.
  Whenever any such certificate shall be presented to the secretary of state, he shall not file such certificate unless there shall accompany the same a...
• 15 - Participation by Certain Corporations and Individuals.
  1. (a) One or more banking organizations, foundations, labor unions, employers' associations, veterans' organizations, colleges, universities, educational institutions, child care institutions, hospitals, medical research institutes,...
• 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,...
• 17 - Powers.
  1. Subject to the limitations of this article, a company heretofore or hereafter organized under this chapter shall have the powers and be subject to...
• 18 - Designation of and Service of Process on Secretary of State and Registered Agent.
  The provisions of sections three hundred four, three hundred five and three hundred six of the business corporation law shall apply to companies heretofore or...
• 19 - Consideration for Issuance of Stock, Bonds or Income Debentures.
  No company shall issue stock, bonds, or income debentures except for money or property actually received for the use and lawful purposes of the company,...
• 20 - Mortgages, Mortgage Bonds and Notes.
  1. Any company, subject to the approval of the commissioner or of the supervising agency, as the case may be, may borrow funds and secure...
• 21 - Capital Structure.
  The capital structure of a company undertaking a project and the proportionate amount of the project cost to be represented by mortgages, bonds, notes, income...
• 22 - State Loans.
  1. The commissioner may enter into contracts for loans to a company. All such contracts shall be subject to approval by the state comptroller and...
• 22-a - Redevelopment Loans.
  Notwithstanding any provision of this article to the contrary, where a state-aided project undergoes a comprehensive redevelopment plan, the commissioner may approve a loan and...
• 22-b - Loans for State-Aided Limited-Profit Housing Companies.
  1. Notwithstanding any provision of this article to the contrary, the commissioner may for a period of one year from the effective date of this...
• 23 - Municipal Loans and Municipally Aided Projects.
  1. A municipality may make or contract to make loans to a company or to a public benefit corporation providing housing for staff members, employees...
• 23-a - Mortgage Modifications, Evidence of Pre-Existing Indebtedness.
  1. Notwithstanding the provision of any law, general or special, the supervising agency shall have the power to: (i) assign or pledge or contract to...
• 23-b - Participation in Loan or Investment.
  Notwithstanding any other provisions of this article or of any general, special or local law, where a municipality has made or contracted to make a...
• 23-c - Mortgage Modifications.
  1. For the purposes of this section, the following terms shall have the meanings set forth below: (a) "Existing mortgage" shall mean any mortgage held...
• 24 - Income Debentures.
  1. With the approval of the supervising agency or of the commissioner, as the case may be, the certificate of incorporation, or an amended certificate...
• 25 - Working Capital.
  The supervising agency or the commissioner, as the case may be, may permit stock or income debentures to be issued for working capital to be...
• 26 - Conditions and Security for Loans.
  1. No loan shall be made by the state, the New York state housing finance agency, a municipality or the New York city housing development...
• 26-a - Findings for Municipally-Aided Projects.
  No municipally-aided project aided solely by tax exemption shall be approved by the supervising agency unless the agency shall have made the findings set forth...
• 26-b - Special Provisions With Respect to State Urban Development Corporation Projects.
  1. No loan shall be made by the state, the New York state housing finance agency, or the state urban development corporation for the acquisition,...
• 26-c - Special Provisions With Respect to Battery Park City Projects.
  1. No loan shall be made by the state or the New York state housing finance agency for the acquisition, construction, reconstruction, rehabilitation or improvement...
• 27 - Limitations.
  No company shall: 1. Acquire any real property or interest therein unless it shall first have obtained from the commissioner or the supervising agency, as...
• 28 - Payments From Earnings.
  1. There shall be paid annually out of the earnings of the company, after providing for all taxes, assessments and expenses, a sum for interest...
• 29 - Acquisition of Property.
  (a) After a project, other than a state urban development corporation project, has been been approved by the commissioner or the supervising agency and the...
• 30 - Transfer of Real Property.
  1. Notwithstanding any requirement of law to the contrary, every executor, administrator, trustee, guardian or other person, holding trust funds or acting in a fiduciary...
• 31 - Rentals and Selection of Tenants.
  1. (a) A company may, with the approval of the commissioner or the supervising agency, as the case may be, fix maximum rentals per room...
• 31-a - Resale Price of Shares.
  Notwithstanding any other provision of this article and subject to any regulation not inconsistent with this section which may be promulgated by the commissioner or...
• 31-b - Assignment or Pledge of Tenant Cooperator's Shares.
  Notwithstanding any other provision of law, a tenant cooperator's shares in a mutual company may be assigned or pledged as collateral for the purpose of...
• 32 - Supervision and Regulation.
  The commissioner or the supervising agency as the case may be, may: 1. Examine a company and keep informed as to its general condition, its...
• 32-a - Additional Supervision and Regulation.
  The commissioner or the supervising agency, as the case may be, shall: 1. Promulgate regulations providing for recognition of duly constituted tenants' associations and cooperators'...
• 32-b - Annual Reports.
  The commissioner shall, on or before the first day of July in each year, submit a report to the legislature on the implementation of article...
• 33 - Tax Exemptions.
  1. (a) Upon the consent of the local legislative body of any municipality in which a project is or is to be located, the real...
• 34 - Foreclosure and Judgments.
  1. Any action or proceeding to foreclose a mortgage upon a company project, shall be in accordance with the applicable provisions of section ninety-four of...
• 35 - Voluntary Dissolution.
  1. A company aided by a loan made prior to May first, nineteen hundred fifty-nine, may voluntarily be dissolved, with the consent of the commissioner...
• 36 - Sale of Project Prior to Termination of Tax Exemption.
  1. Except as otherwise provided in this article and prior to the expiration of thirty-five years from the date of occupancy, a project, other than...
• 36-a - Additional Powers of Municipalities.
  In addition to any other powers granted to a municipality by law, and notwithstanding the provisions of any other law, a municipality acting by its...
• 37 - Separability Clause.
  1. Except as specifically provided in this article, nothing contained therein shall be deemed to limit or restrict any power or authority granted to banking...

Last modified: February 3, 2019