2021 New York Laws
PVH - Private Housing Finance
Article 3 - New York State Housing Finance Agency
44 - Powers of the Agency.
§ 44. Powers of the agency. Except as otherwise limited by this article, the agency shall have power: 1. To sue and be sued; 2. To have a seal and alter the same at pleasure; 3. To make and execute contracts and all other instruments necessary or convenient for the exercise of its power and functions under this article; 4. To make and alter by-laws for its organization and internal management and, subject to agreements with noteholders or bondholders, to make rules and regulations governing the use of its property and facilities, which rules and regulations shall be filed with the department of state in the manner provided by section one hundred two of the executive law; 5. To acquire, hold and dispose of personal property for its corporate purposes; 6. To appoint officers, agents and employees, prescribe their duties and fix their compensation, subject to the provisions of the civil service law and to the rules and regulations of the civil service commission of this state; 7. To borrow money and issue negotiable notes, bonds or other obligations and to provide for the rights of the holders thereof; 8. Subject to any agreements with noteholders or bondholders, to invest any funds held in reserve or sinking funds, including the insured mortgage reserve fund and any special revenue housing coverage reserve fund or any monies not required for immediate use or disbursement, at the discretion of the agency, in obligations of the state or the United States government or obligations the principal and interest of which are guaranteed by the state or the United States government, or in any other obligations in which the comptroller of the state of New York is authorized to invest pursuant to section ninety-eight of the state finance law; 9. Subject to the approval of the commissioner in the case of mortgage loans to other than hospital corporations which are eligible borrowers as defined in article twenty-eight-B of the public health law or nursing home companies, non-profit corporations which are eligible borrowers as defined in title five-A of article six of the social services law, or companies incorporated pursuant to the not-for-profit corporation law and article seventy-five of the mental hygiene law, who shall be guided by the provisions governing state loans contained in article two of this chapter, to make mortgage loans, to participate with the state in making mortgage loans and to undertake commitments to make any such mortgage loans; 9-a. Subject to the approval of the commissioner of social services of the state of New York, to make mortgage loans and to undertake commitments to make mortgage loans to community senior citizens centers and services companies under and pursuant to article seven-A of this chapter. 10. Subject to the approval of the commissioner of housing and community renewal, the state commissioner of health, the state commissioner of mental hygiene or the state commissioner of social services, as the case may be, to sell, at public or private sale, any mortgage or other obligation securing a mortgage loan made by the agency; * 10-a. To acquire and to contract to acquire, by assignment or otherwise, any mortgage securing a loan and any note or bond made by a mutual housing company and to modify or satisfy such mortgage, bond or note and accept or make a new mortgage and other instruments for the purpose of refinancing the existing indebtedness of such company. * NB (Effective pending ruling by Internal Revenue Service) 11. (a) In connection with the making or financing the making of mortgage loans and commitments therefor, except mortgage loans and commitments made with hospital corporations which are eligible borrowers as defined in article twenty-eight-B of the public health law, nursing home companies, non-profit corporations which are eligible borrowers as defined in title five-A of article six of the social services law, or companies incorporated pursuant to the not-for-profit corporation law and article seventy-five of the mental hygiene law, to make and collect such fees and charges, including but not limited to reimbursement of all costs of financing by the agency, service charges and insurance premiums, as the agency shall determine to be reasonable and as shall be approved by the commissioner of housing;(b) In connection with the making of mortgage loans and commitments therefor to hospital corporations which are eligible borrowers as defined in article twenty-eight-B of the public health law or nursing home companies, to make and collect from such corporations and companies such fees and charges, including but not limited to reimbursement of all costs of financing by the agency, service charges and insurance premiums, as the agency shall determine to be reasonable;
(c) In connection with the making of mortgage loans and commitments therefor to non-profit corporations which are eligible borrowers as defined in title five-A of article six of the social services law, to make and collect from such corporations such fees and charges, including but not limited to reimbursement of all costs of financing by the agency, service charges and insurance premiums as the agency shall determine to be reasonable.
(d) In connection with the making of mortgage loans and commitments therefor to companies incorporated pursuant to the not-for-profit corporation law and article seventy-five of the mental hygiene law, to make and collect from such companies such fees and charges, including but not limited to reimbursement of all costs of financing by the agency, service charges and insurance premiums, as the agency shall determine to be reasonable. 11-a. In connection with the making of mortgage loans and commitments therefor to companies incorporated pursuant to the not-for-profit corporation law and article seven-A of this chapter, to make and collect from such companies such fees and charges, including but not limited to reimbursement of all costs of financing by the agency, service charges and insurance premiums, as the agency shall determine to be reasonable. 11-b. To make or finance the making of federally-aided mortgage loans pursuant to section forty-four-c of this article and, in connection with such mortgage loans, to exercise such powers and undertake such responsibilities as may be required by any law, regulation or other requirement of the federal government. 11-c. Subject to the provisions of any contract with noteholders and bondholders (a) to make and contract for the making of mortgage loans for the construction or rehabilitation of projects which a municipal housing authority, constituted, created or established pursuant to article thirteen of the public housing law, has agreed to purchase on a turnkey basis in accordance with a federally assisted program for the production of public housing as authorized by the United States housing act of nineteen hundred thirty-seven as amended to the date of enactment of this subdivision of this section, upon the completion of such construction or rehabilitation and (b) to make and to contract for the making of loans to, or to purchase loans from banking or other lending institutions for the purpose of financing such construction or rehabilitation. 12. In connection with any property on which it has made or financed a mortgage loan, to foreclose on any such property or commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for and purchase such property at any foreclosure or at any other sale, or acquire or take possession of any such property; and in such event the agency may complete, administer, pay the principal of and interest on any obligations incurred in connection with such property, dispose of, and otherwise deal with, such property, in such manner as may be necessary or desirable to protect the interests of the agency therein; 13. To enter into agreements to pay annual sums in lieu of taxes to any political subdivision of the state with respect to any real property owned by the agency; provided, however, that the amount so paid for any year upon any such property shall not exceed the sum last paid as taxes on such property prior to the time of its acquisition by the agency; 14. To procure insurance against any loss in connection with its property and other assets (including mortgages, mortgage loans and federally guaranteed securities secured by such mortgage loans) in such amounts, and from such insurers, as it deems desirable; 15. (a) Subject to the approval of the commissioner and to the provisions of any contract with noteholders or bondholders, except with any holders of hospital and nursing home project bonds or notes or youth facilities project bonds or notes, or community mental health services and mental retardation services project bonds or notes, whenever it deems it necessary or desirable in the fulfillment of the purposes of this article, to consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term, of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the agency is a party, except such mortgages, mortgage loans, mortgage loan commitments, contracts or agreements as may have been entered into with hospital corporations which are eligible borrowers as defined in article twenty-eight-B of the public health law, nursing home companies or non-profit corporations which are eligible borrowers as defined in title five-A of article six of the social services law or companies incorporated pursuant to the not-for-profit corporation law and article seventy-five of the mental hygiene law;
(b) Subject to the provisions of any contract with holders of hospital and nursing home project bonds or notes, whenever it deems it necessary or desirable in the fulfillment of the purposes of this article, to consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind between the agency and a hospital corporation which is an eligible borrower as defined in article twenty-eight-B of the public health law or a nursing home company;
(c) Subject to the provisions of any contract with holders of youth facilities project bonds or notes, whenever it deems it necessary or desirable in the fulfillment of the purposes of this article, to consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind between the agency and a non-profit corporation which is an eligible borrower pursuant to title five-A of article six of the social services law.
(d) Subject to the provisions of any contract with holders of community mental health services and mental retardation services project bonds or notes, whenever it deems it necessary or desirable in the fulfillment of the purposes of this article, to consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind between the agency and a company incorporated pursuant to the not-for-profit corporation law and article seventy-five of the mental hygiene law. 15-a. Subject to the provisions of any contract with holders of community senior citizens services project bonds or notes, whenever it deems it necessary or desirable in the fulfillment of the purposes of this article, to consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind between the agency and a company incorporated pursuant to the not-for-profit corporation law and article seven-A of this chapter. 16. To accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality thereof or from the state or from any other source and to comply, subject to the provisions of this article, with the terms and conditions thereof; 17. To engage the services of private consultants on a contract basis for rendering professional and technical assistance and advice; 18. Subject to the approval of the commissioner of housing and community renewal, to make equity loans to mutual companies, mutual housing companies, mutual redevelopment companies, and housing development fund companies which are corporations organized pursuant to the business corporation law and article eleven of this chapter, in amounts not to exceed the aggregate face value of home owners purchase notes accepted by such mutual companies, mutual housing companies, mutual redevelopment companies, or housing development fund companies, as the case may be, as consideration for the issuance of shares pursuant to the provisions of section nineteen of article two of this chapter, section seventy-eight of article four of this chapter, section one hundred eight of article five of this chapter, or subdivision four of section five hundred seventy-three of article eleven of this chapter, as the case may be; such loans shall be repaid over or within such period and shall be secured in such manner as the agency shall require and the commissioner shall approve. 19. Subject to the approval of the commissioner of health pursuant to the provisions of article twenty-eight-A of the public health law, to make mortgage loans to non-profit nursing home companies incorporated pursuant to the provisions of article twenty-eight-A of the public health law and the not-for-profit corporation law and to make mortgage loans to limited-profit nursing home companies incorporated pursuant to the provisions of article twenty-eight-A of the public health law and to undertake commitments to make any such mortgage loans. 20. Subject to the approval of the commissioner, to purchase or to contract to purchase from a mutual company, or from any shareholder thereof, as the case may be, the shares appertaining to the dwellings leased by it for the purposes set forth in section forty-four-a of this article, to hold such shares or to sell or to contract to sell such shares to the sublessees of the agency who are residents in such dwellings, or to the designees of the mutual company. Such shares shall be purchased or sold by the agency for the par value thereof. The terms under which such shares may be sold, or be contracted to be sold shall be subject to the approval of the commissioner. Shares owned by the agency may not be voted. 21. Subject to the approval of the commissioner of social services pursuant to the provisions of title five-A of article six of the social services law, to make mortgage loans to non-profit corporations which are eligible borrowers pursuant to the provisions of the aforesaid title five-A and to undertake commitments to make any such mortgage loans. 21-a. Subject to the approval of the commissioner of social services of the state of New York pursuant to the provisions of article seven-A of this chapter, to make mortgage loans to companies incorporated pursuant to the provisions of such article and the not-for-profit corporation law and to undertake commitments to make any such mortgage loans. 22. Subject to the approval of the commissioner of mental hygiene pursuant to the provisions of article seventy-five of the mental hygiene law, to make loans to companies incorporated pursuant to the provisions of article seventy-five of the mental hygiene law and the not-for-profit corporation law and to undertake commitments to make any such mortgage loans. No such loan or commitment made on or after June first, nineteen hundred eighty-two, shall be made primarily for a purpose other than the refinancing of existing indebtedness pursuant to subdivision four of section 75.05 of the mental hygiene law. 23. Subject to the approval of the commissioner of health pursuant to the provisions of article twenty-eight-B of the public health law, to make mortgage loans to hospital corporations which are eligible borrowers as defined in article twenty-eight-B of the public health law and to undertake commitments to make any such mortgage loans. 24. To contract with the state of New York municipal bond bank agency to render such services as the agency may deem appropriate, including but not limited to the use of the premises, personnel and personal property of the agency and to charge the reasonable costs thereof and provide for the reimbursement to the agency for any expenses necessarily incurred by the agency in carrying out the terms of such contract. Any such contract shall be subject to the separate approval of the director of the budget. 25. To contract with the New York state medical care facilities finance agency to market and service any New York state medical care facilities finance agency bonds and New York state medical care facilities finance agency notes approved by the New York state medical care facilities finance agency, and to contract to render such other services as the New York state medical care facilities finance agency may request, including but not limited to the use of the premises, personnel and personal property of the agency, and to provide for reimbursement to the agency from the New York state medical care facilities finance agency for any expenses necessarily incurred by the agency in carrying out the terms of any such contract. Any such contract shall be subject to the separate approval of the director of the budget. 26. To contract with the New York state project finance agency to market and service any New York state project finance agency bonds and New York state project finance agency notes approved by the New York state project finance agency, and to contract to render such other services as the New York state project finance agency may request, including but not limited to the use of the premises, personnel and personal property of the agency, and to provide for reimbursement to the agency from the New York state project finance agency for any expenses necessarily incurred by the agency in carrying out the terms of any such contract. Any such contract shall be subject to the separate approval of the director of the budget. 27. To contract with the New York state urban development corporation to market and service any New York state urban development corporation bonds and New York state urban development corporation notes approved by the New York state urban development corporation and to contract to render such other services as the New York state urban development corporation may request, including but not limited to the use of the premises, personnel and personal property of the agency, and to provide for reimbursement to the agency from the New York state urban development corporation for any expenses necessarily incurred by the agency in carrying out the terms of any such contract. Any such contract shall be subject to the separate approval of the director of the budget. 28. To participate in federal programs for the insurance of mortgage loans including programs which require the agency to share any loss arising out of any mortgage loan insured by the federal government, provided that the agency's share of any such loss shall not exceed fifty percent thereof. 28-a. To acquire and enter into commitments to acquire any federally guaranteed security to finance the making of mortgage loans pursuant to section forty-four-c of this article and to pledge or otherwise use any such federally guaranteed security in such manner as the agency deems in its best interest to secure or otherwise provide a source of repayment on bonds issued to finance the making of such mortgage loans. 29. To do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this article. * 29-a. (1) Subject to the provisions of any contract with noteholders and bondholders (a) to make and contract for the making of loans for the acquisition, construction or rehabilitation of housing developments for the purpose of providing residential units for occupancy by persons and families for whom the ordinary operations of private enterprise cannot provide an adequate supply of safe, sanitary and affordable housing accommodations or for residential units located in an area designated as blighted pursuant to article fifteen or sixteen of the general municipal law, and (b) to make and to contract for the making of loans to or to purchase loans from lending institutions for the purpose of financing loans for such acquisition, construction or rehabilitation. No loans may be financed pursuant to this subdivision unless the agency finds that portions of the housing developments are to be occupied by persons or families of low or moderate income. In determining whether the portions of housing developments will be so occupied, the agency may consider and rely upon the fact that the housing developments will be occupied by persons and families in accordance with requirements for the interest on obligations issued to finance them to be exempt from taxation pursuant to section 103(b)(3) or 103(b)(4)(A) of the Internal Revenue Code of 1954, as amended.
(2) With regard to any loan made pursuant to this subdivision and notwithstanding the provisions of, or any regulation promulgated pursuant to, the emergency housing rent control law, the local emergency housing rent control act, or local law enacted pursuant thereto, the rent stabilizaton law of nineteen hundred sixty-nine, or the emergency tenant protection act of nineteen seventy-four, the owner of a housing development otherwise subject to any such law or act, with the approval of the agency, may establish the initial rent for each dwelling unit within the project. If the initial rents are to be established pursuant hereto, the agency shall notify occupants of the housing development, if any, of any such proposed rental establishment and offer to meet at least once with the occupants prior to its approval.
(3) The powers granted by this subdivision may be exercised only if (a) obligations of the agency have been issued to fund the loan made or purchased by the agency and such obligations have received an investment grade rating from a recognized rating agency; (b) the loan made or purchased by the agency is fully secured as to principal and interest by insurance or a commitment to insure issued by the state of New York mortgage agency or by the general credit of a bank, national bank, trust company, savings bank, savings and loan association, insurance company, governmental agency of the United States, or any combination thereof; or (c) obligations of the agency are purchased by a bank, national bank, trust company, savings bank, savings and loan association, insurance company, governmental agency of the United States, which for purposes of this subdivision, include the federal home loan mortgage corporation, the federal national mortgage association, the governmental national mortgage association, and any successor of the foregoing, or any wholly-owned subsidiary or combination thereof. * NB Repealed July 23, 2023 29-b. To carry out its powers and responsibilities with respect to permanent housing projects for homeless families as provided for in article three-A of this chapter. 30. (1) Subject to the provisions of any contract with noteholders and bondholders (a) to make and contract for the making of loans for the acquisition, refinancing, construction or rehabilitation of housing and non-profit health facilities and (b) to make and to contract for the making of loans to or to purchase loans from lending institutions for the purposes of financing loans for such acquisition, construction or rehabilitation.
(2) The powers granted by this subdivision may be exercised only if: (a) the commissioner of health has approved any health and health related facilities which are in addition to the residential unit and housing portion of the facility, pursuant to section twenty-eight hundred two of the public health law in any case where the facility is subject to the provisions of such section or has approved the facility according to the guidelines prescribed in any other case; (b) with respect to any portion thereof owned by a for profit owner, the agency makes the finding required to finance housing developments under paragraph one of subdivision twenty-nine-a of this section; (c) (i) obligations of the agency have been issued to fund the loan made or purchased by the agency and such obligations have received an investment grade rating from a recognized rating agency, or (ii) the loan made or purchased by the agency is fully secured as to principal and interest by insurance or a commitment to insure issued by the state of New York mortgage agency or by the general credit of a bank, national bank, trust company, savings bank, savings and loan association, insurance company, the college construction loan insurance association, the student loan marketing association, or a governmental agency of the United States; and (d) approval from the applicable state agencies as to the need for the project has been obtained prior to joint financing. 31. To and shall develop, promote and ensure that, where possible, minority groups which traditionally have been disadvantaged, and women are afforded equal opportunity for contracts in connection with development and construction contracts for developments, facilities and projects financed by the issuance of bonds, notes and other obligations of the agency. 32. To transfer funds in an amount to be agreed upon, at the request of the director of the division of the budget, to the state treasury for deposit to the general fund as an expense of the agency. Such transfer shall be made in such amounts and at such times as specified in an agreement or agreements executed between the agency and the director of the budget with copies to be provided to the chairman of the assembly ways and means committee and the chairman of the senate finance committee.
