NY Priv Hous Fin L § 402 (2021)
2021 New York Laws PVH - Private Housing Finance Article 8 - Loans to Owners of Existing Multiple Dwellings 402 - Loans to Owners.

§  402.  Loans  to  owners.  1.  Notwithstanding the provisions of any general, special or local law, a municipality, by such officer or agency as determined by its local legislative body,  is  hereby  authorized  to make  or  contract  to  make  loans  to  the owners of existing multiple dwellings within its territorial limits, subject to the  limitations  in subdivision  two of this section, in such amounts as may be required for the  installation  of  proper  heating  facilities,  or  elimination  of conditions  dangerous  to human life or detrimental to health, including nuisances as defined in section  three  hundred  nine  of  the  multiple dwelling  law,  or  other rehabilitation or improvement of such multiple dwellings, and if such owner acquires  the  multiple  dwelling  for  the purposes  of  such  rehabilitation  or  improvement or owns the multiple dwelling subject to an outstanding indebtedness, such loans may  include such  amounts as may be required for the cost of such acquisition or for the refinancing of such outstanding indebtedness, and may make temporary loans or advances to  such  owners  in  anticipation  of  the  permanent municipal loans for such purposes.   2-a.  As  used in this section the term "value" shall mean the "as is" value of the multiple dwelling and the land upon which  it  is  situated prior   to  such  installation,  elimination,  other  rehabilitation  or improvement referred to in subdivision one  of  this  section  plus  the total  of all costs of such installation, elimination, rehabilitation or improvement including, but not limited to,  the  costs  of  any  or  all undertakings  necessary  for the planning, financing, tenant relocation, acquisition,  construction,  equipment  and  development  in  connection therewith.   2-b.  (a)  Each permanent loan shall be secured by a bond and mortgage or note and mortgage upon the multiple dwelling and the land upon  which it is situated; where the loan is made to an owner who is a lessee, such loan shall be secured by a first lien on such property.  (b)  The  amount  of  any  such  loan shall not exceed the cost of the installation of proper heating facilities, or elimination of  conditions dangerous to human life or detrimental to health, including nuisances as defined  in  section three hundred nine of the multiple dwelling law, or other rehabilitation or improvement provided that,  if  any  portion  of such  loan  is  used  for  the  cost  of acquisition of the land and the multiple dwelling or for re-financing, the total  amount  of  such  loan shall not exceed two times the cost of such installation, elimination of such conditions, rehabilitation or improvement.  (c) The amount of any such loan, together with the amount of all prior liens  and  encumbrances, shall not exceed, except in the case of a loan made to a non-profit company, a mutual company, or a housing development fund company, ninety per centum of the  value  of  the  property,  after completion   of  the  installation  of  proper  heating  facilities,  or elimination of such conditions or other rehabilitation  or  improvement, as   estimated  by  the  agency,  unless  the  agency  makes  a  written determination that the owner has insufficient resources to pay  for  the remaining  ten per centum of the value of the property, after completion of  such  installation,  elimination,   or   other   rehabilitation   or improvement,  as  estimated by the agency, in which case such loan shall not exceed ninety-five per centum of the value of  the  property,  after completion   of  the  installation  of  proper  heating  facilities,  or elimination of such conditions or other rehabilitation  or  improvement, as  estimated  by the agency. The amount of any such loan, together with the amount of all prior liens and encumbrances,  made  to  a  non-profit company,  a  mutual company, or a housing development fund company shall not  exceed  the  value  of  the  property  after  completion  of   such installation,  elimination,  or  other rehabilitation or improvement, as  estimated by the agency provided that  when  after  completion  of  such installation,  elimination  or other rehabilitation or improvement, such project is, or is to be operated exclusively for the benefit of  persons or  families  who  are  entitled  to occupancy by reason of ownership of stock in the corporate owners, such loan shall not  exceed  ninety-eight percentum  of  the  value  of  the  property,  after  completion of such installation, elimination, or other rehabilitation  or  improvement,  as estimated by the agency, unless the agency makes a written determination that  the  owner has insufficient resources to pay for the remaining two per centum of the value  of  the  property,  after  completion  of  such installation,  elimination,  or  other rehabilitation or improvement, as estimated by the agency, in which case such loan shall  not  exceed  the value   of   the   property,  after  completion  of  such  installation, elimination, or other rehabilitation or improvement, as estimated by the agency.  (d) Each such bond and mortgage or note and mortgage shall  be  repaid over  or  within  a  period  of  thirty  years  in such manner as may be provided in such bond and mortgage or note and mortgage and contract but in no case to exceed the probable life of the multiple dwelling which is hereby determined to be thirty years. Such bond and mortgage or note and mortgage  and  the  contract  in  connection  with  such  permanent  and temporary  loans  may  contain  such  other  terms  and  provisions  not inconsistent  with  the  provisions  of  this  article  as   the   local legislative body or the agency may deem necessary or desirable to secure repayment  of  the  loan,  the  interest  thereon  and  other charges in connection therewith and to carry out the  purposes  and  provisions  of this  article;  notwithstanding  the  foregoing,  a  loan  made prior to January first, nineteen hundred seventy-eight may, in the discretion  of the agency, be extended to a term up to forty-five years. The agency may modify the rate and time of payment of interest on the original loan and the  rate  and  time  of  amortization  of  principal  in such manner as required to secure payment of the loan within the extended term.   2-c. If a loan pursuant to  this  article  is  made  to  a  non-profit company  or  a  housing development fund company which agrees to provide housing accommodations exclusively  for  persons  and  families  of  low income,  at  least  thirty  percent  of  whom  are referred to it by the municipality  and  have  prior  to  their  initial  occupancy  in   such accommodations resided in emergency shelter facilities operated by or on behalf  of  the  municipality,  the agency may provide that the note and mortgage shall automatically be reduced to zero  in  five  equal  annual decrements  commencing  on  the  tenth  year after the initial occupancy date, provided that such accommodations have been owned and operated  in a manner consistent with an agreement with the municipality contained in such note and mortgage to provide housing for such persons.   3.  The bond or note issued by the owner of such multiple dwelling and the mortgage relating thereto may authorize such owner, with the consent of the agency, to prepay the principal of the loan subject to such terms and conditions as therein provided. Such bond or note and  mortgage  may contain such other clauses and provisions as the agency shall require.   4.  The  agency  may  charge  the  owner  of  such  multiple  dwelling reasonable fees for financing, regulation, supervision and  audit.  Such fees shall be kept by the municipality in a separate fund to be known as the  housing  rehabilitation  fund  and  shall  be  used  to pay for the expenses of the municipality  in  administering  and  carrying  out  the provisions of this article.   5.  Whenever  reference is made in this article to a municipal loan, a loan by a municipality, a loan from a municipality,  a  contract  for  a loan  between  a  municipality  and  an owner, or any similar term, with  respect to the territorial limits of the city of  New  York  such  terms shall  be construed to refer to a loan made or to be made either by such municipality or by the New York city  housing  development  corporation, whichever is applicable.   6.  The  bond and mortgage or note and mortgage issued by the owner of any such multiple dwelling may provide that the loan shall be reduced to zero commencing on the fifteenth year after the execution  of  the  bond and  mortgage or note and mortgage, provided that, as of the date of any such reduction, the multiple dwelling has been and continues to be owned and operated in a manner consistent with a regulatory agreement with the municipality. Notwithstanding such provision as contained  in  the  bond and  mortgage  or  note  and mortgage, the loan shall be reduced to zero only if, prior to or simultaneously  with  delivery  of  such  bond  and mortgage  or  note and mortgage, the agency made a written determination that  such  reduction  would  be  necessary  to  ensure  the   continued affordability  or  economic  viability  of  the  multiple dwelling. Such written determination shall document the basis upon which the  loan  was determined to be eligible for evaporation.