NY Priv Hous Fin L § 22 (2021)
2021 New York Laws PVH - Private Housing Finance Article 2 - Limited-Profit Housing Companies 22 - State Loans.

§  22.  State  loans. 1. The commissioner may enter into contracts for   loans to a company.  All such contracts shall be subject to approval  by   the state comptroller and by the attorney general as to form.2.  Loans  by  the  state  under such a contract shall be secured by a   first mortgage lien, and no such loan shall be made in an amount greater   than ninety-five per centum of the total project cost in the case  of  a   mutual   company,   urban   rental   company  or  a  non-profit  company   incorporated  pursuant  to  the   provisions   of   the   not-for-profit   corporation  law  and  this article for the purpose of providing housing   for staff members, employees  or  students  of  a  college,  university,   hospital  or  child care institution and their immediate families and in   the  case  of  a  non-profit  company  incorporated  pursuant   to   the   not-for-profit  corporation  law  and  this  article  for the purpose of   providing housing for aged or handicapped persons of low  income  or  in   the case of a low income non-profit housing company such loans shall not   be  made  in an amount greater than the total project cost. In case of a   loan in an amount greater than  ninety-five  per  centum  of  the  total   project   cost,   the   commissioner   may  in  his  discretion  require   satisfactory  independent  guarantees  that  the  loan  will  be  repaid   according  to  the  terms  of  the  company's bond or note and mortgage.   Notwithstanding any other provisions of law, if the company proposes  to   sell  or convey any part or parts of the mortgaged premises prior to the   sale by the state of the definitive bonds providing the  funds  for  the   state  loan,  the  comptroller,  upon the application of the company and   with the prior written consent of the commissioner, may release from the   first mortgage lien any part or parts  of  the  mortgaged  premises  not   acquired through condemnation and not required for the project, provided   that  any  net proceeds from the sale or conveyance of the said property   will be held by the  company  for  the  sole  purpose  of  reducing,  in   accordance  with  the  requirements of the commissioner and comptroller,   the principal amount of the state loan outstanding, and provided further   that the unpaid principal amount of the state loan then outstanding,  as   it  may be reduced by the net proceeds, if any, derived from the sale or   conveyance, would not be in  an  amount  greater  than  ninety-five  per   centum of the total project cost and in the case of a non-profit company   incorporated   pursuant   to   the   provisions  of  the  not-for-profit   corporation law and this article for the purpose  of  providing  housing   for  aged  or  handicapped persons of low income or in the case of a low   income non-profit housing company such amount shall not be greater  than   the  total  project  cost. The comptroller shall execute such release in   the usual form, which, when  acknowledged,  shall  be  recorded  by  the   county  clerk and a minute thereof made upon a margin of the mortgage. A   company may, with the prior written consent  of  the  commissioner,  and   subject  to  the approval of the state comptroller and to the provisions   of any contract with noteholders and bondholders, lease any property not   acquired through condemnation and not required for the project, and  may   apply  the  income  of  such  lease  to any use authorized for any other   rental income. Such lease shall  contain  restrictions  to  protect  and   preserve the project.3.  The commissioner may make temporary loans or advances to a company   in anticipation of any permanent loans and no such  temporary  loans  or   advances  shall  be  deemed  to  constitute part of such permanent loans   unless such temporary loans or  advances  have  been  made  out  of  the   proceeds  of  definitive  housing  bonds  sold  by the state pursuant to   chapters four hundred seven of the laws of nineteen  hundred  fifty-five   and nine hundred fifty-six of the laws of nineteen hundred fifty-eight.4.  The state shall have the power to invest jointly with the New York   state housing finance agency in a bond or note and single  participating    mortgage,  or  in  separate  bonds  or  notes and mortgages of a company   organized pursuant to the provisions of this article.  The  interest  of   each shall have equal priority as to lien in proportion to the amount of   loan so secured, but need not be equal as to interest rate, time or rate   of  amortization  or  otherwise.  In  such a case the state, through the   commissioner of housing, is authorized to make provision, either in  the   mortgage  or  mortgages or by separate agreement, for the performance of   such services as are generally performed by the New York  state  housing   finance  agency itself owning and holding a mortgage. Any agreement made   by the commissioner under this  subdivision  shall  be  subject  to  the   approval of the state comptroller and the attorney general as to form.