2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 12 - (650 - 670) NEW YORK CITY HOUSING DEVELOPMENT CORPORATION
654-C - Housing New York corporation.

 
    § 654-c. Housing New York corporation. 1. Definitions. As used in this
  section, unless a different meaning clearly appears from the context:
    (a) "Housing New York program" shall mean the housing New York program
  established  pursuant  to  section  four of the housing New York program
  act.
    (b) "City"  shall  mean  the  city  of  New  York,  its  agencies  and
  instrumentalities  (other than the housing New York corporation) and the
  New York city housing development corporation.
    (c) "Residential housing facilities" shall mean one or more  works  or
  improvements   containing   one  or  more  residential  dwelling  units,
  including,  but  not  limited  to,  single  room  occupancy  units,  and
  including  the  real and personal property acquired, owned, constructed,
  equipped, improved, enlarged, rehabilitated or renovated to provide such
  accommodations and such incidental and appurtenant  commercial,  social,
  recreational  or  communal facilities, to be located without the Battery
  Park project area, as defined in the Battery Park  city  authority  act,
  and within the city.
    (d)  "Excess  revenues"  shall mean all revenues from the Battery Park
  project area, as defined in the Battery  Park  city  authority  act,  in
  excess  of  those  needed  (i) to satisfy bond and note covenants (other
  than as they relate to bonds and notes issued pursuant to  this  section
  and  section  one  thousand  nine  hundred  seventy-four-c of the public
  authorities law)  including  those  covenants  which  require  that  the
  Battery  Park  city authority maintain its revenues and reserve funds in
  an  amount  necessary  to  permit  it  to  discharge  its  debt  service
  obligations,  (ii)  to  fulfill its legal and financial commitments, and
  (iii) to pay its operating and maintenance expenses.
    2. There is hereby established a public benefit corporation  known  as
  the  "housing  New  York corporation" as a subsidiary corporation of the
  corporation solely for the purpose of borrowing money and granting  such
  moneys  to  the  city  for  the  purposes  and  in  accordance  with the
  provisions of the housing New York program.
    3. It is hereby found and declared that the legislature,  pursuant  to
  the  housing  New  York  program act, has established a housing New York
  program under which the city will cause the  acquisition,  construction,
  equipping,   improving,   rehabilitation   and  renovation  of  dwelling
  accommodations within the city of New York for persons and families  for
  whom  the  ordinary  operations of private enterprise cannot supply such
  accommodations; that such program is necessary in order to increase  the
  presently  inadequate supply of dwelling accommodations in such city for
  such persons and families; that such program shall require a substantial
  commitment of funds from public sources; and  that  the  need  for  such
  moneys  necessitates  that  the  subsidiary  corporation created by this
  section be granted the powers and be made subject to the requirements of
  this section. The  legislature  therefore  finds  that  such  subsidiary
  corporation,  subject  to  the  terms  and  conditions specified herein,
  should be given the power to borrow funds and grant such moneys  to  the
  city  of New York, and any agency or instrumentality thereof (other than
  such subsidiary corporation) or the corporation for use by  such  entity
  in  the  housing  New  York  program;  that the financing of residential
  housing facilities in accordance with the housing New York program is  a
  public  purpose  for  which  moneys  may be granted, and exemptions from
  taxation on the income of bonds or notes of such subsidiary  corporation
  and  on  such  subsidiary  corporation's income and property granted, as
  specified herein; and that the powers  and  duties  of  such  subsidiary
  corporation  as  recited  in  this  section are necessary and proper for
  achieving the ends herein recited. Therefore such subsidiary corporation
  is hereby authorized and empowered:

    (a) to borrow money by issuing bonds and notes for the purposes of (i)
  granting  such  moneys  to  the  city  to   finance   the   acquisition,
  construction,  equipping,  improvement,  enlargement, rehabilitation and
  renovation of residential housing facilities for  the  purposes  and  in
  accordance  with the provisions of the housing New York program and (ii)
  refunding any bonds or  notes  of  such  subsidiary  corporation  issued
  pursuant to this section;
    (b)  to  grant  moneys  to  the  city for the purpose of financing the
  acquisition,   construction,   equipping,   improvement,    enlargement,
  rehabilitation  and renovation of residential housing facilities for the
  purposes and in accordance with the provisions of the housing  New  York
  program  and to enter into any agreement specifying terms and conditions
  with respect thereto;
    (c) subject to the provisions of any contract with the holders of  any
  of  its  bonds  or  notes,  to  pledge  any  revenues  or assets of such
  subsidiary corporation,  including,  but  not  limited  to,  any  excess
  revenues  of the Battery Park city authority as shall be payable to such
  subsidiary corporation pursuant to an agreement between the Battery Park
  city authority  and  such  subsidiary  corporation  as  such  subsidiary
  corporation shall deem necessary, to secure any bonds or notes issued or
  any  agreements  entered  into  pursuant to this section; (d) to procure
  insurance, letters of credit or other credit enhancements  with  respect
  to  its  bonds  or  notes issued pursuant to this section and to pay the
  premiums and fees therefor;
    (e) to adopt, amend or rescind rules and  regulations  appropriate  to
  carry  out its corporate purposes and to establish such requirements and
  enter into such agreements to achieve the objectives  of  this  section;
  and
    (f)  to  exercise  any and all other powers authorized by this section
  and not inconsistent with the provisions of this section.
    4. In addition to the foregoing, such subsidiary corporation may:
    (a) receive  moneys  from  the  corporation,  the  Battery  Park  city
  authority,  any other public benefit corporation, the federal government
  or any other source for the purpose of  paying  its  obligations  issued
  pursuant  to  this  section  in  order  to  provide  residential housing
  facilities to low and moderate income  persons  for  whom  the  ordinary
  operation  of  private  enterprise  cannot  supply  safe,  sanitary  and
  affordable housing accommodations,
    (b) enter into agreements with the Battery Park city authority or  any
  other  entity  for  the  purpose  of  receiving  moneys  as described in
  paragraph (a) of this subdivision, and
    (c) transfer, lend, pledge or assign moneys to a trustee, fiduciary or
  similar entity for the purpose of securing obligations as referenced  in
  paragraph (a) of this subdivision.
    5.  The  membership  of  such  subsidiary corporation shall consist of
  seven members, five of whom shall be members of the  corporation  (other
  than members thereof appointed by the governor) and two of whom shall be
  appointed  by  the governor. Neither of the two members appointed by the
  governor shall be members or officers of the Battery Park city authority
  or any subsidiary corporation organized  pursuant  to  section  nineteen
  hundred  seventy-four-a  of  the public authorities law. The two members
  first appointed by the governor shall serve for terms of  two  and  four
  years  respectively from January first next succeeding the date of their
  appointment. Their successors shall serve for terms of four years  each.
  The  governor shall fill any vacancy which may occur by reason of death,
  resignation or otherwise of a member appointed  by  the  governor  in  a
  manner  consistent  with the original appointment. A member appointed by
  the governor (i) shall continue in office until such member's  successor

  has been appointed and qualified and (ii) may be removed by the governor
  for  cause,  but  not without an opportunity to be heard in person or by
  counsel, in such member's defense, upon not less than ten days'  notice.
  The   commissioner   of  the  department  of  housing  preservation  and
  development shall serve as chairperson of  the  subsidiary  corporation.
  The  powers  of  the  subsidiary  corporation  shall  be  vested  in and
  exercised by no less than four of the members thereof  then  in  office.
  The  subsidiary  corporation may delegate to one or more of its members,
  or its officers, agents and employees, such duties and powers as it  may
  deem proper.
    6.  Notwithstanding  any  inconsistent provisions of this or any other
  general, special or local law, no officer or employee of the city or the
  state,  or  of  any  public  corporation,  as  defined  in  the  general
  construction  law,  shall  be  deemed to have forfeited or shall forfeit
  such person's office or employment by reason of such person's acceptance
  of membership on or  by  virtue  of  such  person's  being  an  officer,
  employee or agent of the subsidiary corporation. No officer or member of
  the   corporation   shall   receive   any  additional  salary  or  other
  compensation, either direct or indirect, other  than  reimbursement  for
  actual  and  necessary  expenses  incurred  in  the  performance of such
  person's duties, by reason of such  person's  serving  as  a  member  or
  officer of such subsidiary corporation.
    7.  The  corporation  may  transfer to such subsidiary corporation any
  real, personal or mixed property in order to carry out the  purposes  of
  this section.
    8. The subsidiary corporation also shall have the power to:
    (a) sue and be sued;
    (b) have a seal and alter the same at pleasure;
    (c)   make  and  alter  by-laws  for  its  organization  and  internal
  management and make rules and  regulations  governing  the  use  of  its
  property and facilities;
    (d)  make and execute contracts and all other instruments necessary or
  convenient for the exercise of  its  powers  and  functions  under  this
  section;
    (e)  acquire,  hold  and  dispose of real or personal property for its
  corporate purposes;
    (f) engage the services of private consultants on a contract basis for
  rendering professional and technical assistance and advice;
    (g)  procure  insurance  against  any  loss  in  connection  with  its
  activities,  properties and assets in such amount and from such insurers
  as it deems desirable;
    (h) appoint officers, agents and employees, prescribe their duties and
  qualifications and fix their compensation subject to the  provisions  of
  the  civil  service law and the rules of the civil service commission of
  the city;
    (i) invest any funds, or other moneys under its custody and control in
  the same manner as the corporation; and
    (j) to do any and all things necessary or convenient to carry out  its
  purposes  and  exercise  the  powers expressly given and granted in this
  section.
    9. The  subsidiary  corporation  and  its  corporate  existence  shall
  continue  until  terminated  by  law;  provided,  however,  that no such
  termination shall take effect as long as obligations of  the  subsidiary
  corporation  remain outstanding, unless adequate provision has been made
  for the payment  thereof  in  the  documents  securing  the  same.  Upon
  termination  of  the  existence of the subsidiary corporation all of its
  rights and properties shall pass to and be vested in  the  city  of  New
  York.

    10.  The  city and the corporation shall have the power to transfer to
  such subsidiary corporation, agents, employees  and  facilities  of  the
  city  or  corporation  to  enable  it  to  fulfill  the purposes of this
  section.
    11.  (a)  Subject  to  the  provisions of this section, the subsidiary
  corporation shall have power and is hereby authorized to issue from time
  to time its notes and bonds in such principal amount as  the  subsidiary
  corporation  shall determine to be necessary to provide sufficient funds
  for achieving its corporate purposes, including the providing of  moneys
  to  the  city,  the  payment  of  interest  on  notes  and  bonds of the
  subsidiary corporation, the establishment of  reserves  to  secure  such
  notes  and  bonds,  and  the  payment  of all expenses of the subsidiary
  corporation incident thereto.
    (b) The subsidiary corporation shall have  the  power,  from  time  to
  time,  to  issue  (i)  notes to renew notes and (ii) bonds to pay notes,
  including  the  interest  thereon  and,  whenever  it  deems   refunding
  expedient, to refund any bonds by the issuance of new bonds, whether the
  bonds to be refunded have or have not matured, and to issue bonds partly
  to  refund  bonds  then  outstanding and partly for any of its corporate
  purposes. The refunding bonds may be  exchanged  for  the  bonds  to  be
  refunded or sold and the proceeds applied to the purchase, redemption or
  payment of such bonds.
    (c)  Except  as  may otherwise be expressly provided by the subsidiary
  corporation, every issue  of  its  notes  and  bonds  shall  be  general
  obligations of the subsidiary corporation payable out of any revenues of
  such  corporation,  subject  only  to any agreements with the holders of
  particular notes or bonds pledging any particular revenues.
    (d)  The  notes  and  bonds  shall  be  authorized  by  resolution  or
  resolutions of the subsidiary corporation, shall bear such date or dates
  and shall mature at such time or times as such resolution or resolutions
  may  provide,  except  that  no note or any renewal thereof shall mature
  more than nine years after the date of issue of the original note and no
  bond shall mature more than fifty years from the date of its  issue.  No
  refunding  bonds  shall  mature  later than fifty years from the date of
  original issuance of the bonds being refunded. The bonds may  be  issued
  as  serial bonds payable in annual installments or as term bonds or as a
  combination thereof. The notes and bonds shall  bear  interest  at  such
  rate  or rates, be in such denominations, be in such form, either coupon
  or registered, carry such registration privileges, be executed  in  such
  manner,  be  payable in such medium of payment, at such place or places,
  and be subject to  such  terms  of  redemption  as  such  resolution  or
  resolutions  may  provide.  The  notes  and  bonds  may  be  sold by the
  subsidiary corporation at public or  private  sale,  at  such  price  or
  prices as the subsidiary corporation shall determine; provided, however,
  that  the  subsidiary  corporation shall consult with the comptroller of
  the city of New York as to the timing of any sale; and provided  further
  that  no  notes  or bonds of the subsidiary corporation may be sold at a
  private sale unless such sale and the terms thereof have  been  approved
  in  writing  by  (a)  such  comptroller,  where such sale is not to such
  comptroller, or (b) the director of the budget of the city of New  York,
  where such sale is to such comptroller.
    (e)  Any  resolution  or resolutions authorizing any notes or bonds or
  any issue thereof may contain provisions, which shall be a part  of  the
  contract or contracts with the holders thereof, as to:
    (i)  pledging all or any part of the revenues to secure the payment of
  the notes or bonds or of any issue thereof, subject to  such  agreements
  with  noteholders or bondholders as may then exist; (ii) pledging all or
  any part of the assets of  the  subsidiary  corporation  to  secure  the

  payment of the notes or bonds or of any issue of notes or bonds, subject
  to such agreements with noteholders or bondholders as may then exist;
    (iii)  the  setting  aside  of  reserves  or  sinking  funds  and  the
  regulation and disposition thereof;
    (iv) limitations on the purpose to which the proceeds of sale of notes
  or bonds may be applied and pledging such proceeds to secure the payment
  of the notes or bonds or of any issue thereof;
    (v) limitations on the issuance of  additional  notes  or  bonds;  the
  terms  upon  which  additional notes or bonds may be issued and secured;
  and the refunding of outstanding or other notes or bonds;
    (vi) the procedure, if any, by which the terms of  any  contract  with
  noteholders  or  bondholders  may be amended or abrogated, the amount of
  notes or bonds the holders of which must consent thereto, and the manner
  in which such consent may be given;
    (vii) limitations on the amount  of  moneys  to  be  expended  by  the
  subsidiary   corporation   for  operating  expenses  of  the  subsidiary
  corporation;
    (viii) vesting in a trustee or trustees such property, rights,  powers
  and  duties  in trust as the subsidiary corporation may determine, which
  may include any or all of the rights, powers and duties of  the  trustee
  appointed  by  the  bondholders pursuant to this section and limiting or
  abrogating the right of the bondholders to appoint a trustee under  this
  section or limiting the rights, powers and duties of such trustee;
    (ix)  the acts or omissions to act which shall constitute a default in
  the obligations and duties of the subsidiary corporation to the  holders
  of  the  notes or bonds and providing for the rights and remedies of the
  holders of the notes or bonds in the event of  such  default,  including
  the  right  to  appointment of a receiver; providing, however, that such
  rights and remedies shall not be inconsistent with the general  laws  of
  the state and the other provisions of this section; and
    (x)  any  other  matters, of like or different character, which in any
  way affect the security or protection of the holders  of  the  notes  or
  bonds.
    (f)  Any  pledge made by the subsidiary corporation shall be valid and
  binding from the time when the pledge is made; the revenues or  property
  so  pledged  and thereafter received by the subsidiary corporation shall
  immediately be subject to the lien of such pledge without  any  physical
  delivery  thereof  or further act, and the lien of any such pledge shall
  be valid and binding as against all parties having claims of any kind in
  tort,  contract  or  otherwise  against  the   subsidiary   corporation,
  irrespective  of  whether  such parties have notice thereof. Neither the
  resolution nor any other instrument by which a pledge is created need be
  recorded.
    (g) Neither the members of the subsidiary corporation  nor  any  other
  person  executing  such  notes or bonds shall be subject to any personal
  liability or accountability by reason of the issuance thereof.
    (h) The  subsidiary  corporation,  subject  to  such  agreements  with
  noteholders  or  bondholders  as may then exist, shall have power out of
  any funds  available  therefor,  to  purchase  notes  or  bonds  of  the
  subsidiary corporation which shall thereupon be cancelled.
    (i)  In the discretion of the subsidiary corporation, the bonds may be
  secured by a trust indenture by and between the  subsidiary  corporation
  and  a  corporate trustee, which may be any trust company or bank having
  the powers of a trust company in the state.  Such  trust  indenture  may
  contain  such  provisions  for  protecting  and enforcing the rights and
  remedies of the bondholders as may be reasonable and proper and  not  in
  violation  of  law,  including covenants setting forth the duties of the
  subsidiary corporation in relation to  the  exercise  of  its  corporate

  powers  and the custody, safeguarding and application of all moneys. The
  subsidiary corporation may provide  by  such  trust  indenture  for  the
  payment  of  the  proceeds  of the bonds and the revenues to the trustee
  under  such  trust  indenture or other depository, and for the method of
  disbursement thereof, with such safeguards and restrictions  as  it  may
  determine.  If  the  bonds  shall  be  secured by a trust indenture, the
  bondholders shall have no authority to appoint  a  separate  trustee  to
  represent them.
    (j)  Whether or not the notes and bonds are of such form and character
  as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
  commercial  code,  the  notes  and  bonds  are  hereby  made  negotiable
  instruments within the meaning of  and  for  all  the  purposes  of  the
  uniform commercial code, subject only to the provisions of the notes and
  bonds for registration.
    12.  No  moneys  may  be borrowed by issuing bonds or notes to finance
  residential housing facilities pursuant  to  this  section  unless  such
  subsidiary  corporation has entered into an agreement or agreements with
  the mayor on  behalf  of  the  city  and  with  the  Battery  Park  city
  authority, which provide, in addition to any other terms and conditions,
  that:
    (a)  such  residential  housing  facilities  are  to  provide dwelling
  accommodations which are to be occupied by persons and families for whom
  the ordinary operations of private enterprise cannot provide an adequate
  supply of safe, sanitary and affordable housing accommodations;
    (b) unless otherwise specifically provided by law, neither  the  state
  nor  the authority are to have any responsibility as to the financing of
  such residential housing facilities and neither the state, the authority
  nor the subsidiary corporation are to have any responsibility as to  the
  operation, maintenance, repair or use of such facilities;
    (c)  the  city  shall  use  the  moneys granted to it pursuant to this
  section to finance residential housing facilities in accordance with the
  provisions of the housing New York program and  shall  comply  with  the
  terms  and  conditions  of  the  housing  New  York program act and this
  section; and
    (d) the timing, amount, maturity schedule  and  all  other  terms  and
  conditions  of  any  issuance  of  bonds  or  notes  by  the  subsidiary
  corporation pursuant to this section, will provide for the Battery  Park
  city  authority's  requirements  as  to  the  development, management or
  operation of the project and the effect of such terms and conditions  on
  the  availability  of  excess  revenues  and  the  pledge  or assignment
  thereof.
    13. Commencing on or before  January  thirty-first,  nineteen  hundred
  eighty-seven,  and  on  or  before  January  thirty-first  of  each year
  thereafter during which the city utilizes moneys which are  provided  to
  it  pursuant to this section, such subsidiary corporation shall, for the
  prior and current calendar year, submit a report to  the  governor,  the
  temporary  president  of  the  senate,  the speaker of the assembly, the
  minority leader of the senate, the minority leader of the assembly,  the
  mayor  and  the comptroller, which shall include, but not be limited to,
  the total principal amount of bonds and notes which have  been  and  are
  expected  to  be  issued  pursuant  to  this  section  and a copy of any
  agreement and any amendments thereto among such subsidiary  corporation,
  the  Battery  Park  city  authority and the city pursuant to subdivision
  twelve of this section. Such report may be a part of  any  other  report
  that such subsidiary corporation is required to make.
    14.  For  the  purposes  of  financing  the acquisition, construction,
  equipping, improvement, enlargement, rehabilitation  and  renovation  of
  residential housing facilities pursuant to this section, such subsidiary

  corporation  may  borrow money by issuing bonds or notes in an aggregate
  principal amount not exceeding  four  hundred  million  dollars  plus  a
  principal  amount  of bonds or notes issued (i) to fund any related debt
  service reserve fund, (ii) to provide capitalized interest, and (iii) to
  provide  fees  and  other  charges and expenses, including underwriters'
  discount, related to the  issuance  of  such  bonds  or  notes  and  the
  maintenance  of  such  reserves,  all  as  determined by such subsidiary
  corporation, excluding bonds or notes issued to refund outstanding bonds
  or notes issued pursuant to this section. Any bonds  or  notes  of  such
  subsidiary  corporation  shall  not be or be deemed to be obligations of
  the corporation or subject to or included in  any  authorization  of  or
  limitation on indebtedness of the corporation.
    In  computing the total principal amount of bonds or notes that may at
  any time be issued for any purpose under this section, the amount of the
  outstanding bonds or notes that constitutes interest  under  the  United
  States  Internal Revenue Code of nineteen hundred fifty-four, as amended
  to the effective date of this section, shall be excluded.
    15. The state does hereby pledge to and agree with the holders of  any
  bonds  or  notes issued under this section that the state will not limit
  or alter the rights hereby vested in such subsidiary corporation or  the
  Battery  Park city authority to fulfill the terms of any agreements made
  with or for the benefit of the said  holders  thereof,  or  in  any  way
  impair  the  rights  and  remedies  of  such holders until such bonds or
  notes, together with the interest thereon, with interest on  any  unpaid
  installments  of interest, and all costs and expenses in connection with
  any action or proceeding by or on behalf of such holders, are fully  met
  and  discharged.  Such  subsidiary  corporation is authorized to include
  this pledge and agreement of the state in any agreement with the holders
  of such bonds or notes.
    16. The bonds or notes of such subsidiary corporation shall not  be  a
  debt  of either the state of New York, the city of New York, the Battery
  Park city authority or the corporation, and neither the state, the  city
  of New York, such authority nor the corporation shall be liable thereon,
  nor  shall  they  be  payable  out of any funds other than those of such
  subsidiary corporation; and such bonds or notes  shall  contain  on  the
  face thereof a statement to such effect.
    17.  The  subsidiary  corporation established pursuant to this section
  shall have all the privileges,  immunities,  tax  exemptions  and  other
  exemptions   of   the  corporation  to  the  extent  the  same  are  not
  inconsistent with this section.