2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 11 - (570 - 582) HOUSING DEVELOPMENT FUND COMPANIES
577-B - Payment of arrears for certain taxes.

 
    §  577-b.  Payment  of arrears for certain taxes. 1. The term eligible
  property as used in this section shall mean a multiple dwelling  located
  in  a  city  with  a  population  of  one million or more and owned by a
  company established pursuant to this article which:
    (a) is controlled  by  and  provides  housing  accommodations  to  its
  resident  shareholders  or  members  or agrees, on terms approved by the
  supervising agency, to offer to the residents of the  multiple  dwelling
  the opportunity to acquire ownership and control of the company; and
    (b) on January first, two thousand two, had outstanding municipal real
  estate taxes relating to any period prior to January first, two thousand
  one.
    2.  (a)  The supervising agency may offer to each company that owns an
  eligible property an opportunity to enter into  a  regulatory  agreement
  pursuant  to  which  the  obligation to pay arrears of real estate taxes
  attributable to such property, including interest and penalties if  any,
  shall be dealt with as provided in such agreement.
    (b) The regulatory agreement shall include the following provisions:
    (1) a term of thirty years;
    (2)  that  the  suspension  of  the  obligation  to  pay arrears shall
  continue provided that the  company  complies  with  the  terms  of  the
  regulatory agreement;
    (3)  that all suspended arrears including interest and penalties shall
  be forgiven provided that  the  company  complies  with  the  regulatory
  agreement for an initial period of ten years;
    (4)  that portions of the suspended arrears may be forgiven during the
  initial ten year period  pursuant  to  a  schedule  established  in  the
  regulatory agreement;
    (5) that any suspended obligations which have not been forgiven may be
  reinstated if the company fails to comply with the regulatory agreement;
    (6) that all new municipal charges must be paid in a timely fashion;
    (7)  that the supervising agency shall be authorized to assume control
  of the company if the company fails to comply with the agreement;
    (8) that the company must comply with customary  financial  and  other
  reporting requirements; and
    (9) that the company shall be required to increase maintenance charges
  or  impose  assessments  to  insure that the company can provide for its
  obligations.
    (c) The regulatory agreement shall also include terms to  address  the
  following  matters  as  well  as  any  other issues that the supervising
  agency deems appropriate:
    (1) establishment of a structured reserve fund;
    (2) restrictions to insure  sales  and  rentals  only  to  low  income
  individuals and families;
    (3)  establishment  of a transfer fee payable to the company's reserve
  fund upon the sale of any units;
    (4) restrictions on subletting;
    (5) primary residence requirements; and
    (6) certification of annual elections.
    (d) The regulatory agreement may contain such alterations to the terms
  of the original disposition as the supervisory agency deems necessary.