2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 11 - (570 - 582) HOUSING DEVELOPMENT FUND COMPANIES
576-C - Loans to housing development companies by a municipality.

 
    * §  576-c.  Loans to housing development companies by a municipality.
  1.  In addition to the powers granted to municipalities pursuant to this
  article, a municipality, acting by  its  supervising  agency,  may  make
  loans for the purposes of acquisition, rehabilitation or construction of
  dwelling   accommodations  to  a  non-profit  housing  development  fund
  company, a wholly-owned subsidiary of such company,  a  partnership  the
  controlling  interest  of  which  is  held by such company and which has
  agreed to limit profits or rate of return  of  investors  in  accordance
  with  a  formula  established  or  approved by the company, or a private
  developer which has agreed  to  limit  profits  or  rate  of  return  of
  investors  in  accordance  with a formula established or approved by the
  company, which agrees to provide housing accommodations exclusively  for
  persons  and families of low income, at least thirty percent of whom are
  referred to it by  a  municipality  and  have  prior  to  their  initial
  occupancy in such accommodations resided in emergency shelter facilities
  operated  by  or  on  behalf of the municipality or who are otherwise in
  need of emergency shelter as determined by the municipality,  providing,
  however,  that  in  the  case  of a building acquired by such a company,
  subsidiary, partnership, or developer the obligation to provide  housing
  accommodations  for  such  persons  shall be applicable only to dwelling
  accommodations which are or become vacant after the date of acquisition.
  Such loans may be made for such period of  time  and  pursuant  to  such
  terms  and  conditions  as  may be required by the municipality, and the
  supervising agency of such municipality may provide that the  amount  of
  the  note  and  mortgage  shall automatically be reduced to zero in five
  equal  decrements  commencing  on  the  tenth  year  after  the  initial
  occupancy  date,  provided  that, as of the date of such reduction, such
  accommodations have been and continue to be  owned  and  operated  in  a
  manner  consistent  with an agreement with the municipality contained in
  such  note  and  mortgage  to  provide   housing   for   such   persons.
  Notwithstanding  such  provision  as contained in the note and mortgage,
  the loan shall be reduced to zero only if, prior  to  or  simultaneously
  with  delivery  of such note and mortgage, the supervising agency made a
  written determination that such reduction would be necessary  to  ensure
  the  continued  affordability  or  economic  viability  of  such housing
  project. Such written determination shall document the basis upon  which
  the loan was determined to be eligible for evaporation.
    2.  Notwithstanding  the  provisions of, or any regulation promulgated
  pursuant to, the emergency housing rent control law, the local emergency
  housing rent  control  act,  the  emergency  tenant  protection  act  of
  nineteen  seventy-four,  or any local law enacted pursuant thereto, upon
  completion of the rehabilitation of  any  building  used  primarily  for
  residential  purposes,  in  a  jurisdiction in which rents are regulated
  pursuant to any of the above laws and which is aided by a loan  pursuant
  to  this  section made by the municipality, the supervising agency shall
  establish the initial rent for each  rental  dwelling  unit  within  the
  building.   All   dwelling  units  within  the  building  subsequent  to
  establishment of initial  rents  by  the  supervising  agency  shall  be
  subject  to  either  the  rent  stabilization  law  of  nineteen hundred
  sixty-nine  or  the  emergency  tenant  protection   act   of   nineteen
  seventy-four,  or  both,  if  applicable to the locality. The tenants in
  occupancy of such a dwelling unit regulated pursuant to any of the above
  laws shall be offered a choice of a one or two year lease at the initial
  rents established by the supervising agency notwithstanding any contrary
  provisions  of,  or  regulations   adopted   pursuant   to,   the   rent
  stabilization  law  of  nineteen  hundred  sixty-nine  and the emergency
  tenant protection act of nineteen seventy-four. The  supervising  agency
  shall  cause  all tenants in occupancy of each dwelling unit affected by

  the provisions of this  subdivision  to  be  notified  of  and  have  an
  opportunity   to   comment  on  the  contemplated  rehabilitation.  Such
  notification shall advise such tenants of the approximate expected  rent
  increase  and  the  subsequent  availability of a one or two year lease.
  Such notification and opportunity to comment shall  be  provided  before
  the  rehabilitation  and  again  after the construction is completed and
  before the establishment of the initial rents.
    3. The supervising agency shall use its best efforts  to  ensure  that
  activities  carried out pursuant to this article are structured so as to
  minimize the likelihood of  any  involuntary  economic  displacement  of
  tenants  who  reside in multiple dwellings which are the subject of such
  activities. However, if temporary physical displacement is required as a
  direct result of rehabilitation work which is performed in such multiple
  dwelling receiving a loan pursuant to this article,  suitable  temporary
  relocation arrangements shall be provided.
    * NB Effective until July 1, 2014
    * §  576-c.  Loans to housing development companies by a municipality.
  In addition to the powers granted to  municipalities  pursuant  to  this
  article,  a  municipality,  acting  by  its supervising agency, may make
  loans for the purposes of acquisition, rehabilitation or construction of
  dwelling  accommodations  to  a  non-profit  housing  development   fund
  company,  a  wholly-owned  subsidiary of such company, a partnership the
  controlling interest of which is held by  such  company  and  which  has
  agreed  to  limit  profits  or rate of return of investors in accordance
  with a formula established or approved by  the  company,  or  a  private
  developer  which  has  agreed  to  limit  profits  or  rate of return of
  investors in accordance with a formula established or  approved  by  the
  company,  which agrees to provide housing accommodations exclusively for
  persons and families of low income, at least thirty percent of whom  are
  referred  to  it  by  a  municipality  and  have  prior to their initial
  occupancy in such accommodations resided in emergency shelter facilities
  operated by or on behalf of the municipality or  who  are  otherwise  in
  need  of emergency shelter as determined by the municipality, providing,
  however, that in the case of a building  acquired  by  such  a  company,
  subsidiary,  partnership, or developer the obligation to provide housing
  accommodations for such persons shall be  applicable  only  to  dwelling
  accommodations which are or become vacant after the date of acquisition.
  Such  loans  may  be  made  for such period of time and pursuant to such
  terms and conditions as may be required by  the  municipality,  and  the
  supervising  agency  of such municipality may provide that the amount of
  the note and mortgage shall automatically be reduced  to  zero  in  five
  equal  decrements  commencing  on  the  tenth  year  after  the  initial
  occupancy date, provided that, as of the date of  such  reduction,  such
  accommodations  have  been  and  continues to be owned and operated in a
  manner consistent with an agreement with the municipality  contained  in
  such   note   and   mortgage   to  provide  housing  for  such  persons.
  Notwithstanding such provision as contained in the  note  and  mortgage,
  the  loan  shall  be reduced to zero only if, prior to or simultaneously
  with delivery of such note and mortgage, the supervising agency  made  a
  written  determination  that such reduction would be necessary to ensure
  the continued  affordability  or  economic  viability  of  such  housing
  project.  Such written determination shall document the basis upon which
  the loan was determined to be eligible for evaporation.
    * NB Effective July 1, 2014