2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 2 - (10 - 37) LIMITED-PROFIT HOUSING COMPANIES
12 - Definitions.

 
    §  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
  located  a project approved by the municipality as provided in paragraph
  (a) of subdivision one and in subdivision five of section twenty-six  of
  article two of this chapter.
    2.  "Company".  A  limited-profit  housing  company  duly incorporated
  pursuant to the provisions of this article, or  a  company  incorporated
  pursuant  to the not-for-profit corporation law and this article for the
  purpose of providing housing and auxiliary facilities for staff members,
  employees or students of a college, university, hospital or  child  care
  institution  and  their  immediate  families  or for aged or handicapped
  persons of low income, pursuant to this article, or a  municipally-aided
  non-profit  company  as  hereinafter defined, or a low income non-profit
  housing company as hereinafter defined.
    2-a. "Home owners purchase note." A  promissory  note  accepted  by  a
  mutual  company  as  consideration for the issuance of stock entitling a
  person or family to occupancy of an apartment in a project, payable over
  or within a period of ten years.
    2-b. "Mutual company." A company whose  dwelling  facilities,  to  the
  extent  of  at  least  eighty  per  centum,  are  occupied by persons or
  families who are entitled to such occupancy by reason  of  ownership  of
  shares  in  such company; provided however that a company that was not a
  mutual company prior to July first,  nineteen  hundred  ninety-five  may
  become  a mutual company if its dwelling facilities, to the extent of at
  least fifty per centum, are occupied by  persons  or  families  who  are
  entitled  to  such  occupancy  by  reason of ownership of shares in such
  company. The commissioner or supervising agency shall provide procedures
  for such conversion of a company to a mutual company on  or  after  July
  first,  nineteen  hundred ninety-five; such procedures shall require the
  submission of a plan for attaining eighty per centum owner occupancy.
    2-c. "Urban Rental Company." A company whose project is located in  or
  adjacent to a municipality and whose housing accommodations are occupied
  by persons or families who do not own the shares in such company.
    3.  "Occupancy  date."  The  date  defined  in  the contract between a
  company and a municipality or the state, as the case may be, as the date
  upon which the project is to be deemed ready for occupancy, or  if  such
  term  is  not  defined  in  such  contract,  the date of issuance of the
  temporary certificate of occupancy.
    4. "Plan." A plan or undertaking of an area or areas for providing low
  rent housing for  persons  of  low  income,  and  for  other  facilities
  incidental and appurtenant thereto.
    5.  "Project."  A  specific  work  or  improvement,  including  lands,
  buildings and improvements acquired, owned, constructed,  rehabilitated,
  improved,   managed   or   operated  by  a  company  providing  dwelling
  accommodations,    non-housekeeping    accommodations,     aged     care
  accommodations  or  accommodations  for  handicapped persons pursuant to
  this article, or undertaken, planned, developed,  constructed  or  owned
  pursuant  to  section  thirty-six-a  of this article, and such business,
  commercial,  cultural,  recreational,  communal,  dining,  medical   and
  nursing  treatment, day care or residential child care facilities or any
  combination thereof, or  other  facilities  as  may  be  deemed  by  the
  commissioner with respect to a project aided by a state loan or New York
  state  housing  finance  agency  loan  or by the supervising agency with
  respect to a municipally-aided project or a project undertaken, planned,
  developed, constructed or owned pursuant to section thirty-six-a of this
  article, to be incidental and appurtenant thereto.  In  the  case  of  a
  state  loan  or  New  York  state housing finance agency loan, a project

  shall effectuate all or part of a plan,  provided,  however,  that  such
  dwelling  accommodations,  non-housekeeping  accommodations,  aged  care
  accommodations or accommodations for handicapped persons may be provided
  in  any  section  of  the  municipality, whether or not such section has
  insanitary or substandard housing conditions.
    5-a.  "State  urban  development  corporation  project".   A   project
  acquired,  owned,  constructed,  managed or operated by a limited-profit
  housing company which is a  subsidiary  of  the  New  York  state  urban
  development  corporation, as the term "subsidiary" is defined in the New
  York state urban development corporation act.
    5-b.  "Battery  Park  city  project."  A  project   acquired,   owned,
  constructed, managed or operated by a company organized pursuant to this
  article  and located within the Battery Park project area, as defined in
  the Battery Park city authority act.
    6. "Project cost". The sum total of all costs incurred  by  a  company
  and,  as  approved  by  the  commissioner  in  the case of a state-aided
  project or a project aided by the New York state housing finance  agency
  or  by the supervising agency in the case of a municipally-aided project
  as reasonable and necessary for carrying out all works and  undertakings
  for  the  development  of  a  project.  These  shall include but are not
  necessarily limited to the  carrying  charges  during  construction  and
  before  physical  completion  or  rehabilitation,  working  capital  not
  exceeding three per cent of the estimated total cost or three  per  cent
  of  the  actual  total  final cost, whichever is larger, the cost of all
  necessary studies, surveys,  plans  and  specifications,  architectural,
  engineering,  or other special services, the cost of acquisition of land
  and  any  buildings   thereon,   site   preparation   and   development,
  construction,  reconstruction  and  equipment;  the  reasonable  cost of
  financing incurred by the investor in the course of development  of  the
  project, up to and including the occupancy date; the fees imposed by the
  commissioner or by the supervising agency or by both; other fees charged
  in  the course of the development of the project up to and including the
  occupancy  date,  pursuant  to  the  provisions  of  this  article;  the
  necessary  expenses  in  connection  with  the  initial occupancy of the
  project and where applicable, the cost of such training services as will
  assist the residents of the project to acquire ownership and to  operate
  the  project in an efficient and harmonious manner; and the cost of such
  other items, including tenant relocation, as the  commissioner,  in  the
  case  of  a state-aided project or a project aided by the New York state
  housing finance agency or the supervising  agency,  in  the  case  of  a
  municipally-aided project shall determine to be reasonable and necessary
  for the development of the project, less any and all net rents and other
  net  revenues  received  from  the  operation  of  the  real or personal
  property on the project site, or any part thereof, by the company on  or
  after  the  date on which the contract between the company and the state
  or the New York state housing finance agency or municipality was entered
  into and prior to the  occupancy  date.  In  the  case  of  any  project
  purchased  or  leased  by  a company from a municipality pursuant to the
  provisions of section thirty-six-a of this article, project  cost  shall
  include  the value of the lease or the purchase price paid or to be paid
  by such company to such municipality.
    7. "Local and municipal  taxes".  Taxes  levied  by  a  county,  city,
  village,  town,  school  and  special  district  but  shall  not include
  assessments for local improvements.
    8. "Child Care Institution"--A private, non-profit,  resident  agency,
  association,  corporation,  institution  or other organization, which is
  incorporated or organized under the laws of this state for the care  and
  treatment of children, which actually has its place of business or plant

  in   this  state  and  which  submits  and  consents  to  the  approval,
  visitation, inspection and  supervision  of  the  Department  of  Social
  Welfare, or a similar administrative department of the State of New York
  as  to any and all acts in relation to the welfare of children performed
  or to be performed thereby.
    9. "Housing". As used in this article the term includes:
    (a) "Dwellings". "Dwelling accommodations". A room or rooms,  with  or
  without  cooking  facilities, arranged for occupancy as a self-contained
  unit.
    (b)  "Non-housekeeping  accommodations".  A  room  or  rooms,  without
  cooking facilities, and with or without board designed for the occupancy
  of  staff  members,  employees  or  students of a college, university or
  hospital.
    (c) "Aged care accommodations".  Non-housekeeping  accommodations  for
  aged  persons  with board and aged care service as may be provided as an
  incident to occupancy, provided however, that no such service  shall  be
  of  such  a nature, kind or quality as to require licensing by the state
  department of health under article twenty-eight  of  the  public  health
  law.
    (d)  "Accommodations for handicapped persons." Dwelling accommodations
  designed for the occupancy of handicapped  persons  or  non-housekeeping
  accommodations  designed  for  the occupancy of handicapped persons with
  board and such service as may be provided as an incident  to  occupancy,
  provided  however,  that no such service shall be of such a nature, kind
  or quality as to make the facility subject to the  jurisdiction  of  any
  other agency of the state.
    10.  "Persons  of low income" and "families of low income". Persons or
  families who are in the low income groups and who cannot afford  to  pay
  enough  to  cause  private  enterprise  in their municipality to build a
  sufficient  supply   of   adequate,   safe   and   sanitary   dwellings,
  non-housekeeping accommodations or aged care accommodations.
    11.  "Preliminary  Costs".  Project  costs approved by the supervising
  agency as appropriate  expenditures  which  may  be  incurred  prior  to
  commitment  and initial advance of the proceeds of a mortgage loan under
  this article, including but not limited to: (a) payments for options  to
  purchase  properties  on  the proposed housing project site, deposits on
  contracts of purchase, or with prior approval of the supervising agency,
  payments  for  the  purchase  of  such   properties;   (b)   legal   and
  organizational  expenses,  including payment of attorneys' fees, project
  manager and clerical staff salaries, office rent  and  other  incidental
  expenses;  (c)  payment  of fees for preliminary feasibility studies and
  advances for planning, engineering and architectural work; (d)  expenses
  for  tenant  surveys  and market analyses; (e) necessary application and
  other fees; and (f) such other expenses incurred by  the  limited-profit
  housing  company  as  the  supervising  agency  may  deem appropriate to
  effectuate the purposes of this article.
    12.  "Municipally-aided  non-profit  company."  A  non-profit  housing
  company duly incorporated pursuant to the not-for-profit corporation law
  and this article, which is aided by a municipal mortgage loan, a loan by
  the  New  York  city housing development corporation or tax exemption or
  both and is not aided by any state mortgage loan or any mortgage loan by
  the New York state housing finance agency or a mortgage loan insured  by
  the  federal  government  made for the purpose of refinancing a mortgage
  loan other than a municipal mortgage loan or a mortgage loan made by the
  New York city housing development corporation.
    13. "Municipally-aided mutual company."  A  mutual  company  which  is
  aided  by a municipal mortgage loan, a loan by the New York city housing
  development corporation or tax exemption or both and is not aided by any

  state mortgage loan or any mortgage loan by the New York  state  housing
  finance agency or a mortgage loan insured by the federal government made
  for  the  purpose  of refinancing a mortgage loan other than a municipal
  mortgage  loan  or  a  mortgage  loan  made by the New York city housing
  development corporation.
    14. "Low income non-profit  housing  company."  A  non-profit  housing
  company duly incorporated pursuant to the not-for-profit corporation law
  and  this  article,  whose  principal  purpose is to provide housing for
  persons of low income and families of low income and which is aided by a
  state mortgage loan or mortgage loan  by  the  New  York  state  housing
  finance  agency or a municipal mortgage loan or municipal tax exemption,
  or both, or a mortgage loan insured by the federal government.
    15. "Residual indebtedness."  Where  a  mortgage  loan  is  refinanced
  pursuant  to  section  twenty-three-a  or  subdivision  twenty-two-a  of
  section six hundred fifty-four of this  chapter,  residual  indebtedness
  shall  be  the  indebtedness  of  a company due on the original mortgage
  loan, including all unpaid principal and all interest  accrued  thereon,
  less an amount equal to the principal amount, when made, of the mortgage
  insured  by  the  federal government in connection with the refinancing.
  Such  indebtedness  shall  be  secured  by  a  mortgage  which  may   be
  subordinate  to  the  lien  of  any  mortgage  insured  by  the  federal
  government and may contain such terms and  conditions  not  inconsistent
  with  this  article  as may be approved by the supervising agency and as
  the supervising agency may deem necessary or  desirable  to  secure  the
  repayment of such residual indebtedness. Residual indebtedness shall not
  be  restricted  by  the  provisions  of this article relating to project
  cost.
    16.  "Residual  receipts  obligations".  Where  a  mortgage  loan   is
  refinanced   pursuant   to   section   twenty-three-a   or   subdivision
  twenty-two-a of section six hundred fifty-four of this chapter, residual
  receipts obligations shall mean the amount of any additional loan  to  a
  company,  and  any  amounts paid other than by the company, to establish
  escrow accounts or reserves or to satisfy minimum property standards  or
  to install life safety devices for the issuance of mortgage insurance by
  the  federal  government  in  connection  with the refinancing. With the
  approval of the supervising agency  and  the  consent  of  the  company,
  residual  receipts  obligations may be evidenced by non-interest bearing
  residual receipts notes. Residual receipts obligations shall be  payable
  only  after  the  payment in full of all residual indebtedness. Residual
  receipts obligations shall not be restricted by the provisions  of  this
  article  relating  to  project  cost  and  shall not include any amounts
  deposited under an agreement with the federal government for the sharing
  of claims paid by the federal government  on  account  of  insurance  of
  mortgages.