2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 8-B - (470 - 478) LOANS TO OWNER-OCCUPANTS OF ONE TO FOUR UNIT PRIVATE AND MULTIPLE DWELLINGS
472 - Loans to owner-occupants.

 
    §  472. Loans to owner-occupants. 1. Notwithstanding the provisions of
  any general, special or local law, a  municipality,  acting  through  an
  agency,  is  authorized  to  make, or contract to make, loans to low and
  moderate income owner-occupants of one to four unit existing private  or
  multiple  dwellings  within  its  territorial  limits,  subject  to  the
  limitation of subdivisions two through seven of this  section,  in  such
  amounts  as  shall be required for the rehabilitation of such dwellings,
  provided, however, that such  loans  shall  not  exceed  sixty  thousand
  dollars  per  dwelling unit. Such loans may also include the refinancing
  of the outstanding indebtedness of such dwellings, and the  municipality
  may  make  temporary  loans  or  advances  to  such  owner-occupants  in
  anticipation of permanent loans for such purposes.
    2.  Each  loan  shall  be  evidenced  by  a  note  executed   by   the
  owner-occupant  of  the  existing  dwelling. Repayment of each such note
  shall be within a period of the probable life of the  existing  dwelling
  which is hereby determined to be thirty years, or such shorter period as
  the  agency  shall determine. The repayment shall be made in such manner
  as may be provided in such note and contract, if any, in connection with
  such loan, and may authorize such owner-occupant, with  the  consent  of
  the  agency,  to  prepay the principal of the loan subject to such terms
  and conditions as therein provided. In  order  to  make  any  such  loan
  affordable  to  the  owner-occupant, the agency may provide in such note
  and contract that all of the outstanding principal of said loan  may  be
  self-liquidated over a fifteen year period of owner-occupancy. Such note
  and   contract   may   contain  such  other  terms  and  provisions  not
  inconsistent with the provisions of this article as the agency may  deem
  necessary  or  desirable  to  secure repayment of the loan, the interest
  thereon, if any, and other charges in connection therewith, and to carry
  out the purposes and provisions of this article.
    3. The agency in its discretion may require  that  the  owner-occupant
  execute,  acknowledge  and  deliver  a uniform commercial code financing
  statement for the real property improvement to be in such  form  as  the
  agency  shall specify and in accordance with the requirements of section
  9--502 of the uniform commercial code of the state  of  New  York.  Said
  financing  statement  shall  be  filed  or  recorded  without  charge in
  accordance with the provisions of paragraph one  of  subsection  (a)  of
  section 9--501 of the uniform commercial code, and from the date of such
  filing  the  municipality  shall  have a lien against said real property
  improvement for the amount advanced or so much thereof as remains unpaid
  together with the interest thereon. Upon payment of all sums advanced by
  the municipality and interest thereon,  and  upon  demand  of  the  then
  record  owner  of  the real property, the agency shall deliver a copy of
  the financing statement with an endorsement thereon  that  the  lien  is
  satisfied.  Upon  filing  of such copy in the office where the financing
  statement was filed and upon payment of the  proper  fee  therefor,  the
  lien of such financing statement shall be discharged.
    4.  The agency may require the owner-occupant to execute a mortgage as
  security for a loan in lieu of or in addition to a  financing  statement
  as  provided  in  subdivision three of this section. Such mortgage shall
  contain such terms and provisions not inconsistent with  the  provisions
  of  this  article  as  the  agency  shall deem necessary or desirable to
  secure repayment of the loan.
    5. Loans may be made with respect to a one to  four  unit  private  or
  multiple  dwelling  encumbered  by mortgages, provided no mortgage is in
  default, except if such  default  shall  be  remedied  by  the  proposed
  rehabilitation or improvement.

    6.  The  agency may charge the owner-occupant of such existing private
  or multiple dwelling  reasonable  fees  for  administration,  financing,
  regulation, supervision and audit.
    7. In making a loan under this article, an agency shall have the power
  to participate in a loan made by any private investor, provided that the
  portion  of  the  loan  funded  by the agency shall not exceed an amount
  equal to seventy-five percent of the total loan. The  agency  may  enter
  into  an  agreement  with  a private investor to deposit funds with such
  private investor  to  cover  the  agency's  participation  in  loans  to
  owner-occupants  of  one  to  four  unit  existing  private and multiple
  dwellings  with  such  funds  advanced  by  such  private  investor   to
  owner-occupants of existing dwellings. The portion of the loan funded by
  the  agency may be equal to or subordinate in lien to the portion of the
  loan funded by the private  investor  and  the  note  and  contract  may
  contain  such  terms  with respect to interest rate, if any, and time of
  payment of principal and interest  as  determined  by  the  agency.  The
  agency  may  make  provision,  either in the mortgage or mortgages or by
  separate agreement, for the performance by the private investor of  such
  services  as  are  generally  performed  by  a banking institution which
  itself holds a mortgage,  including,  without  limitation,  construction
  loan  advances,  construction  supervision,  initiation  of  foreclosure
  proceedings,  procurement  of  insurance,  and  all  other  matters   in
  connection  with the financing, supervision, regulation and audit of any
  such loan. In order to make the loan affordable to  the  owner-occupant,
  the agency may provide an interest reduction subsidy pursuant to section
  four  hundred  seventy-five  of this article, or may provide that all or
  part of the agency's portion of the outstanding principal  of  any  such
  participation  loan may be self-liquidated over a fifteen year period of
  owner-occupancy.