NY Priv Hous Fin L § 32 (2021)
2021 New York Laws PVH - Private Housing Finance Article 2 - Limited-Profit Housing Companies 32 - Supervision and Regulation.

§  32. Supervision and regulation. The commissioner or the supervising   agency as the case may be, may:1. Examine a company and keep informed as to  its  general  condition,   its  capitalization and the manner in which its property is constructed,   acquired,  rehabilitated,  leased,  operated  or  managed,  and  to  its   compliance  with all provisions of law and orders of the commissioner or   the supervising agency.2. Require every company to file with  him  or  it  an  annual  report   setting  forth  such  information as the commissioner or the supervising   agency may require, verified by the oath of any officer, general manager   or other person in control of the company. Such report  shall  be  in  a   form,  cover  a  period,  and  be  filed  at a time as prescribed by the   commissioner or the supervising agency.3. From time to time make, amend and repeal  supplementary  rules  and   regulations  for  carrying  into  effect  the provisions of this article   provided, however, that such supplementary rules and  regulations  shall   be  strictly  limited  in  their application to the means and methods of   compliance with the provisions of  this  article  to  which  such  power   relates.4. Make such agreements with bondholders, mortgagees or creditors of a   company  to do or refrain from doing any act, not inconsistent with law,   to protect the investment rights of the state of New York, the New  York   state  housing  finance  agency,  the  New York city housing development   corporation or of the municipality.5 (a) Administer oaths, take affidavits, hear testimony and take proof   under oath at public or private hearings; (b) subpoena and  require  the   attendance   of  witnesses  and  the  production  of  books  and  papers   pertaining to  any  investigations  and  inquiries  authorized  by  this   article  and examine them in relation to any matter concerning which the   power  to  investigate  is  granted;  (c)  issue  commissions  for   the   examination of witnesses who are out of the state or unable to attend or   are  excused  from  attendance;  (d)  investigate  into the affairs of a   company and into the dealings, transactions  or  relationships  of  such   company  with  third  persons  and into the affairs of any person, firm,   corporation or other entity having a financial interest, whether  direct   or  indirect,  in the design, construction, acquisition, reconstruction,   rehabilitation, improvement,  financing  or  operation  of  any  project   undertaken  by  a  company;  (e) intervene, as a matter of right, in any   action or proceeding of  which  notice  shall  be  given  affecting  the   project  of  a company; (f) take such steps in such action or proceeding   as may be necessary to protect the public interest.With regard to duties and liabilities arising out of this article  the   state,  the  commissioner  or  the supervising agency may be sued in the   same manner as a private person. No costs shall be awarded  against  the   commissioner,  the state, or the supervising agency, as the case may be,   in any such litigation.6. In the event of a violation by a company  of  a  provision  of  the   certificate  of  incorporation  or  of  law  or  of the loan or mortgage   contract or of any rules and regulations duly  promulgated  pursuant  to   the  provisions  of  this  article,  the commissioner or the supervising   agency, as the case may be, may  remove  any  or  all  of  the  existing   directors  of  the  company  and  appoint such person or persons who the   commissioner or the supervising agency, as the case may be,  in  his  or   its  sole discretion deems advisable, including officers or employees of   the division of housing and community renewal or the supervising agency,   as new directors to serve in the places of those removed.  Directors  so   appointed  need  not  be shareholders or meet other qualifications which   may be prescribed by the certificate of incorporation or by-laws. In the    absence of fraud or bad faith,  directors  so  appointed  shall  not  be   personally   liable   for  debts,  obligations  or  liabilities  of  the   corporation. Directors so  appointed  shall  serve  only  for  a  period   coexistent with the duration of such violation or until the commissioner   or  the  supervising  agency, as the case may be, is assured in a manner   satisfactory to him or  it  against  violations  of  a  similar  nature.   Officers  or  employees of the division of housing and community renewal   or of the supervising agency who are so  appointed  as  directors  shall   serve  in  such  capacity without compensation. No such removal may take   place without  written  notice  and  an  opportunity  for  the  affected   directors  to appear and be heard before the agency or commissioner with   respect to any alleged violation  and  the  respective  parties  may  be   represented  by  counsel.  Notwithstanding any inconsistent provision of   any general, special or local law or any  limitation  contained  in  the   provisions  of  any  city charter, the state or a municipality acting by   and through the commissioner or the supervising agency, as the case  may   be,  shall  save  harmless  and indemnify any officer or employee of the   division of housing and community renewal or the supervising  agency  so   appointed  as  a director, from financial loss arising out of any claim,   demand, suit or judgment by reason of alleged negligence or other act by   such director, provided that such director was acting in  the  discharge   of  his duties and within the scope of his employment and that such loss   did not result from the willful and wrongful act or gross negligence  of   such   director  and  provided  further  that  this  save  harmless  and   indemnification provision shall not in any way impair, limit  or  modify   the  rights and obligations of any insurer under any policy of insurance   and shall inure only to directors so appointed and shall not enlarge  or   diminish  the rights of any other party. No action or special proceeding   based on or arising out of alleged  negligence  or  other  act  by  such   director  may  be  commenced  against such director, municipality or the   state unless a notice of claim shall have first been served in a  manner   consistent  with  service  upon a municipality or the state, as the case   may be.7. Whenever the commissioner, in the case of a company undertaking  or   otherwise operating a state-aided project, or the supervising agency, in   the   case   of   a   company   undertaking  or  otherwise  operating  a   municipally-aided project, shall be of the opinion that such company  is   failing or omitting, or is about to fail or omit to do anything required   of  it by law or by order of the commissioner or is doing or is about to   do anything, or permitting anything, or is about to permit  anything  to   be done, contrary to and in violation of law or of any order, regulation   or  directive of the commissioner or the supervising agency, as the case   may be, or which is improvident or prejudicial to the  interest  of  the   public,   the   lienholders,  the  stockholders,  or  the  tenants,  the   commissioner or the supervising agency, as the  case  may  be,  may,  in   addition  to such other remedies as may be available, commence an action   or proceeding in the supreme court of the state of New York in the  name   of  the  commissioner or the supervising agency, as the case may be, for   the purpose of having such violations or threatened  violations  stopped   and  prevented, and in such action or proceeding the court may appoint a   temporary or permanent receiver or both. Such action or proceeding shall   be commenced by a petition to the supreme court, alleging the  violation   complained  of and praying for appropriate relief. It shall thereupon be   the duty of the court to specify the time,  not  exceeding  twenty  days   after  service  of  a  copy  of  the  petition, within which the company   complained of must answer the petition. In case of any default or  after   answer   the   court  shall  immediately  inquire  into  the  facts  and   circumstances in such manner as the court shall direct without other  or    formal  pleadings,  and  without  respect to any technical requirements.   Such other persons or  corporations  as  it  shall  seem  to  the  court   necessary  or  proper  to  join as parties in order to make its order or   judgment  effective, may be joined as parties. The final judgment in any   such action or proceeding shall either dismiss the action or  proceeding   or direct that an order or an injunction, or both, issue, or provide for   the  appointment  of a receiver as prayed for in the petition, and grant   such other relief as the court may deem appropriate.8. The commissioner or supervising agency may modify supervision of  a   company  upon  finding that duplicative supervisory functions may impose   an  undue  regulatory  burden  or  unnecessary  expenditure  of   agency   resources,  by  taking such actions as are deemed appropriate, including   consolidating supervisory functions associated with different  programs,   and entering into memoranda of understanding with other agencies for the   allocation of supervisory functions.