2012 New York Consolidated Laws
PVH - Private Housing Finance
Article 4 - (70 - 97) LIMITED DIVIDEND HOUSING COMPANIES
82 - Limitations.

 
    § 82. Limitations. No housing company shall:
    1. Acquire any real property or interest therein unless it shall first
  have  obtained  approval  of  the  project  from the commissioner, and a
  certificate that such acquisition is necessary  or  convenient  for  the
  public  purpose  defined  in this article, and unless any deed, lease or
  other instrument by which such real  property  or  interest  therein  is
  acquired  contains  a  statement  that  the  conveyance  is to a housing
  company organized pursuant  to  article  four  of  the  private  housing
  finance law.
    2.  Sell, exchange, transfer or assign any real property except (a) to
  a municipality wherein a project is to be located, for  public  purposes
  only  and  upon such terms and conditions, with or without compensation,
  as the commissioner may approve, or with  the  written  consent  of  the
  commissioner  to  another housing company formed under this chapter, and
  (b) for a price not in excess of the cost of the said property less  any
  amounts  paid  in  amortization  of  the  mortgage  indebtedness and the
  retirement of capital, plus so much of the distribution  on  capital  of
  the said housing company as shall have been unpaid, and accrued interest
  on  the  mortgage  indebtedness  and income debenture certificates. Real
  property surplus to the needs  of  the  housing  company  may  be  sold,
  exchanged,  transferred  or  assigned to any person, partnership, trust,
  firm or corporation upon such terms and conditions as  the  commissioner
  may approve.
    3. Encumber or lease all or any part of its real property to any other
  person,  partnership,  trust,  firm,  or  public or private corporation,
  without the written consent of the commissioner, provided, however, that
  leases conforming to the regulations and rules of the  commissioner  and
  for  actual  occupancy by the lessees may be made without the consent of
  the commissioner. Any conveyance, encumbrance, lease or  sub-lease  made
  in  violation  of  the  provisions  of  this section and any transfer or
  assignment thereof shall be void.
    4. Pay interest returns on its mortgage indebtedness at a higher  rate
  than  six per centum per annum, or at the rates of interest of mortgages
  or mortgage bonds insured by the federal housing administration  or  any
  other  instrumentality  of the federal government applicable at the time
  the housing company incurs the mortgage indebtedness, or at such  higher
  rates  as  may be approved by the commissioner, or pay interest upon its
  income debenture certificates at a rate higher than six per  centum  per
  annum.
    5.  Issue  its  shares,  in  the  case of a housing company which is a
  corporation, credit sums to partners on capital account, in the case  of
  a  housing company which is a partnership, subject amounts to the trust,
  in the case of a housing company  which  is  a  trust,  and  no  housing
  company shall issue debentures and bonds covering any project undertaken
  by  it in an amount greater in the aggregate than the total actual final
  cost of such project, including the  lands,  improvements,  charges  for
  financing  and supervision approved by the commissioner and interest and
  other carrying charges during construction, and an allowance for working
  capital to be approved by the commissioner but not exceeding  three  per
  centum  of  the  estimated cost or of the total actual final cost of the
  project if that shall be greater than the estimated cost.
    6. Mortgage any  real  property  without  first  having  obtained  the
  consent of the commissioner.
    7.  Issue  any  securities  or evidences of indebtedness without first
  having obtained the approval of the commissioner.
    8. Use any building erected or acquired by it for other  than  housing
  purposes,  except  that  when permitted by law the story of the building
  above the cellar or basement and the space below such story may be  used

  for  stores,  co-operative  or community purposes, and when permitted by
  law the roof may be used for co-operative or community purposes.
    9.  Charge  or  accept  any  rental  for housing accommodations in any
  project constructed, acquired, operated or managed by it  in  excess  of
  the prices approved by the commissioner.
    10.  Enter  into  contracts  for  the payment of salaries to officers,
  employees, directors, partners, trustees or beneficiaries except subject
  to the approval of the commissioner and under such  regulations  as  the
  commissioner may from time to time prescribe.
    11.  Enter  into contracts for the construction or for the substantial
  repair, improvement or operation  of  projects  except  subject  to  the
  approval   of  the  commissioner  and  under  such  regulations  as  the
  commissioner may from time to time prescribe.
    12. Voluntarily dissolve, or  in  the  case  of  a  trust,  terminate,
  without first having obtained the consent of the commissioner.
    13. Make any guaranty without the approval of the commissioner.
    14. Without the prior approval of the commissioner as to the terms and
  conditions  thereof, sell, lease, or otherwise convey all or any part of
  a project to an authority.
    The commissioner may declare that any of the limitations set forth  in
  this  section  shall  be  inapplicable,  in  whole or in part, to mutual
  housing companies after the period of municipal tax exemption granted to
  such mutual housing  company  projects  pursuant  to  this  article  has
  expired.