NY Priv Hous Fin L § 26 (2021)
2021 New York Laws PVH - Private Housing Finance Article 2 - Limited-Profit Housing Companies 26 - Conditions and Security for Loans.

§  26.  Conditions and security for loans. 1. No loan shall be made by the state, the New York state housing finance agency, a municipality  or the   New   York   city   housing  development  corporation  unless  the commissioner, with respect to a project aided by a  state  loan  or  New York  state housing finance agency loan, or the supervisory agency, with respect to a municipally-aided project, finds that:  (a)  The  municipality  has  approved  the  project  as  provided   in subdivision  five  of  this  section  and  has  enacted  or  will  enact regulations  or  appropriate  restrictions  adequately  protecting   the project  against  future  uses  likely to depreciate unduly the value of such project;  (b) The estimated revenues of the project will be sufficient to  cover all  probable  costs  of operation and maintenance, of fixed charges and operating reserves and depreciation reserves if any;  (c) The plans and specifications conform to the  requirements  of  all laws  applicable thereto, and assure adequate light, air, sanitation and fire protection;  (d) If the project is aided by a state  loan,  or  a  New  York  state housing  finance  agency loan, the commissioner shall also find that the project is in conformity with a plan or undertaking  for  providing  low rent housing facilities for persons of low income and for the clearance, replanning,  reconstruction  or  rehabilitation  of  a  substandard  and insanitary area  or  areas,  and  for  other  facilities  incidental  or appurtenant thereto as may be approved by the commissioner.   1-a.  No  company  may be aided pursuant to this article by a mortgage loan or tax exemption or both to finance the acquisition of  a  building by  residents thereof unless the commissioner or the supervising agency, as the case may be, finds that:  (a) the condition of such building is deteriorating and  the  building is  located  in  a  deteriorating  area  or  in  an area threatened with deterioration  by  reason  of  economic,  social  or  physical   changes occurring therein or in nearby areas;  (b) the building is not yielding sufficient revenues to cover costs of operation and maintenance, of fixed charges and of reserves, if any, and also a reasonable profit to the owner;  (c)  the  making  of  such loan will prevent further deterioration and abandonment;  (d) at least two-thirds of  the  present  residents  consent  to  such acquisition;  (e) financing for such acquisition is otherwise unavailable because of the  neighborhood, the age of the buildings, or other factors indicating an inability of the private sector unaided to cause such acquisition  to be effected;  (f)  the  proceeds of such loan will not be used to refinance existing debt in excess of a reasonable relationship to current value; and  (g) the term for repayment of such loan does not exceed the  remaining useful life of the building.   2.  The  principal  of a loan made by the state shall be repaid by the company over a period of not to exceed fifty years except in the case of a loan to rehabilitate an existing building, in which  case  the  period shall  not  exceed  thirty-five  years,  or  the  estimated  life of the project, whichever is shorter,  in  annual  installments  equal  to  the amount  payable  by  the  state  on the moneys borrowed for the project. Such annual installment of principal need not be uniform in amount,  but may  be so varied that the total payment of principal and interest shall be approximately equal and constant during the period of the loan.  Each payment of principal and interest shall be made to the state comptroller not  later  than five days before each payment by the state is required.  The loan shall bear the same rate of interest paid or to be paid by  the state  for  the definitive housing bonds issued on account of such loan. The company shall pay to the state comptroller a proportionate share  of the  cost  of  borrowing  not  later  than  thirty  days after the state comptroller has certified the amount of such share.   3. Any bonds or notes issued by the company and any mortgages relating thereto may authorize  the  company,  with  the  consent  of  the  state comptroller  in  the  case  of a state-aided project, or the supervising agency in the  case  of  a  municipally-aided  project,  to  prepay  the principal  of  the  loan.  Such bonds or notes and mortgages may contain such other clauses and provisions as the commissioner in the case  of  a state-aided  project  or  the  supervising  agency  in  the  case  of  a municipally-aided project, shall require. Notwithstanding the provisions of any general, special or local law, the principal of  any  loans  made pursuant  to  subdivision  one of section fifteen of this article or the principal of a loan made by a municipality pursuant to this article  and secured  by  a mortgage lien subordinate to the lien of a first mortgage made pursuant to paragraph (b) of subdivision one of section fifteen  of this  article  may be amortized at such time or times or at such rate as the supervising agency shall approve.   4. With respect to a state-aided project the commissioner  may  charge the  company  reasonable fees for financing, regulation, supervision and audit. Fees collected for such services shall be paid into and disbursed from such fund or funds as may be provided by law.   5. (a) In a municipality where there is  a  planning  commission,  the project  shall  first  be submitted to it for approval. Where changes in the city map and zoning amendments or variances are necessitated by such project, such amendments,  variances  and  changes  shall  be  submitted together  with  such  project  and  considered  as  a part thereof. Such planning commission, not later than ten  weeks  from  the  date  of  the referral  of  the  project  to  it,  after  a public hearing held on due notice, notice of which shall be  published  at  least  ten  days  prior thereto  in  the  official  publication  of the municipality, or if none exists, in a newspaper circulating in the municipality, shall submit its report  to  the  local  legislative  body  certifying  its   unqualified approval,    its   disapproval,   or   its   qualified   approval   with recommendations for modifications therein.   After public hearing held on  due  notice  and  after  the  report  is received or due from the planning commission, the local legislative body may:  (i)  if  the  planning commission shall have certified its unqualified approval, approve the project by a majority vote;  (ii) if the planning commission shall have certified  its  disapproval or  shall  have failed to make its report within ten weeks from the date such project was submitted to it, nevertheless approve the project,  but only by a three-fourths vote;  (iii)  if  the  planning commission shall have certified its qualified approval together with recommendations for  modifications,  approve  the project  together  with  the  modifications  recommended by the planning commission by a majority vote,  or  approve  the  project  without  such modifications but only by a three-fourths vote.  (b)  In  a  municipality  where  there  is  no planning commission the project shall be submitted to the local legislative  body  which,  after public  hearing held on due notice, may either approve or disapprove the project.  (c) Notwithstanding any other provision of law, changes  in  the  city map,  zoning  amendments,  or  variances  contained in the plan shall be deemed approved by the local  legislative  body  when  it  approves  the  project.  Any  such  changes  in  the  city  map,  zoning amendments, or variances shall become effective on the date on  which  the  supervising agency  shall  file  a  resolution  with  the  local legislative body in implementation thereof.   6.  The  provisions of subdivisions one and five of this section shall not apply to a state urban development corporation  project  or  to  any loan  made  by  the  state  or  the state housing finance agency to such project, notwithstanding anything to the contrary contained herein.   7. Notwithstanding anything to the  contrary  contained  therein,  the provisions  of subdivisions one and five of this section shall not apply to a Battery Park city project or to any loan made by the state  or  the New York state housing finance agency to such project.