NY Priv Hous Fin L § 94 (2021)
2021 New York Laws PVH - Private Housing Finance Article 4 - Limited Dividend Housing Companies 94 - Foreclosure.

§  94. Foreclosure. 1. In any foreclosure action the commissioner, and   the municipality if it has made  a  loan  to  the  housing  company,  in   addition  to  other  necessary parties, shall be made parties defendant;   and the commissioner and the municipality shall take all steps  in  such   action  necessary  to protect the interest of the public therein, and no   costs shall be awarded against  him  or  the  municipality.  Foreclosure   shall  not  be decreed unless the court to which application therefor is   made shall be satisfied that the interests of the lienholder or  holders   can  not  be adequately secured or safeguarded except by the sale of the   property. In any such proceeding, the court shall be authorized to  make   an   order  increasing  the  rentals  to  be  charged  for  the  housing   accommodations in the project involved  in  such  foreclosure,  but  not   exceeding  the  maximum  average  rentals  fixed  herein, or appoint the   commissioner as a  receiver  of  the  property  and  in  the  event  the   municipality  has made a loan to the housing company, appoint an officer   or employee of the municipality, or grant such other and further  relief   as  may  be reasonable and proper. In the event of a foreclosure sale or   other judicial sale, the property shall, except as provided in the  next   succeeding paragraph of this section, be sold only to a housing company,   unless  the  court  shall  find that the interest on the bonds cannot be   earned under the restrictions imposed by the provisions of this  article   and  that  the  proceeding  was brought in good faith. In such event the   property shall be sold free of all restrictions imposed by this  article   and  all  the  benefits  theretofore  granted under this article to such   project shall thereupon terminate.2. Notwithstanding the foregoing provisions of this section,  wherever   it  shall  appear  that a government, the New York state housing finance   agency, the New York state urban development corporation, created by the   New York state urban development corporation  act,  the  New  York  city   housing   development  corporation,  Battery  Park  city  authority,  an   organization or entity investing or participating in a loan pursuant  to   subdivision  one  of  section  fifteen of this chapter, or a corporation   subject  to  the  supervision  of  the  state  department  of  financial   services,  shall have loaned on a mortgage which is a lien upon any such   property, such government, New York state housing  finance  agency,  New   York   state  urban  development  corporation,  New  York  city  housing   development corporation, Battery Park city authority, an organization or   entity investing or participating in a loan  pursuant  to  said  section   fifteen  or a corporation subject to such supervision, or any trustee or   trustees, or any successor trustee or trustees, for the benefit  of  any   one  or  more  of  the  aforesaid  classes  shall  have all the remedies   available to a mortgagee under the laws of the state of New  York,  free   from  any  restrictions  contained  in  this  section  except  that  the   commissioner shall be made a party defendant and that  the  commissioner   shall  take  all  steps necessary to protect the interests of the public   and no costs shall be awarded against him or her