NY Priv Hous Fin L § 44 (2021)
2021 New York Laws PVH - Private Housing Finance Article 3 - New York State Housing Finance Agency 44 - Powers of the Agency.

§  44.  Powers  of  the  agency.  Except  as otherwise limited by this article, the agency shall have power:   1. To sue and be sued;   2. To have a seal and alter the same at pleasure;   3. To make and execute contracts and all other  instruments  necessary or  convenient  for  the  exercise of its power and functions under this article;   4. To make  and  alter  by-laws  for  its  organization  and  internal management  and,  subject to agreements with noteholders or bondholders, to make rules and regulations governing the  use  of  its  property  and facilities,  which  rules  and  regulations  shall  be  filed  with  the department of state in the manner provided by section one hundred two of the executive law;   5. To acquire, hold and dispose of personal property for its corporate purposes;   6. To appoint officers, agents and employees, prescribe  their  duties and  fix  their  compensation,  subject  to  the provisions of the civil service law and to the  rules  and  regulations  of  the  civil  service commission of this state;   7.  To  borrow  money  and  issue  negotiable  notes,  bonds  or other obligations and to provide for the rights of the holders thereof;   8. Subject to any  agreements  with  noteholders  or  bondholders,  to invest any funds held in reserve or sinking funds, including the insured mortgage  reserve  fund and any special revenue housing coverage reserve fund or any monies not required for immediate use  or  disbursement,  at the  discretion of the agency, in obligations of the state or the United States government or obligations the principal and interest of which are guaranteed by the state or the United States government, or in any other obligations in which the  comptroller  of  the  state  of  New  York  is authorized  to  invest  pursuant  to  section  ninety-eight of the state finance law;   9. Subject to the approval of the commissioner in the case of mortgage loans to other than hospital corporations which are  eligible  borrowers as defined in article twenty-eight-B of the public health law or nursing home  companies, non-profit corporations which are eligible borrowers as defined in title five-A of article six of the social  services  law,  or companies  incorporated  pursuant  to the not-for-profit corporation law and article seventy-five of the mental hygiene law, who shall be  guided by the provisions governing state loans contained in article two of this chapter, to make mortgage loans, to participate with the state in making mortgage  loans  and  to undertake commitments to make any such mortgage loans;   9-a. Subject to the approval of the commissioner of social services of the state  of  New  York,  to  make  mortgage  loans  and  to  undertake commitments  to make mortgage loans to community senior citizens centers and services companies under and pursuant to  article  seven-A  of  this chapter.   10.  Subject  to  the  approval  of  the  commissioner  of housing and community  renewal,  the  state  commissioner  of  health,   the   state commissioner  of  mental  hygiene  or  the  state commissioner of social services, as the case may be, to sell, at public or  private  sale,  any mortgage  or  other  obligation  securing  a  mortgage  loan made by the agency;   * 10-a. To acquire and  to  contract  to  acquire,  by  assignment  or otherwise,  any  mortgage securing a loan and any note or bond made by a mutual housing company and to modify or satisfy such mortgage,  bond  or note  and  accept  or  make a new mortgage and other instruments for the purpose of refinancing the existing indebtedness of such company.  * NB (Effective pending ruling by Internal Revenue Service)   11.  (a)  In  connection  with  the  making or financing the making of mortgage loans and  commitments  therefor,  except  mortgage  loans  and commitments made with hospital corporations which are eligible borrowers as  defined  in article twenty-eight-B of the public health law, nursing home companies, non-profit corporations which are eligible borrowers  as defined  in  title  five-A of article six of the social services law, or companies incorporated pursuant to the  not-for-profit  corporation  law and  article seventy-five of the mental hygiene law, to make and collect such fees and charges, including but not limited to reimbursement of all costs  of  financing  by  the  agency,  service  charges  and  insurance premiums, as the agency shall determine to be reasonable and as shall be approved by the commissioner of housing;  (b)  In  connection  with the making of mortgage loans and commitments therefor to  hospital  corporations  which  are  eligible  borrowers  as defined  in  article  twenty-eight-B of the public health law or nursing home companies, to make and collect from such corporations and companies such fees and charges, including but not limited to reimbursement of all costs  of  financing  by  the  agency,  service  charges  and  insurance premiums, as the agency shall determine to be reasonable;  (c)  In  connection  with the making of mortgage loans and commitments therefor to non-profit corporations  which  are  eligible  borrowers  as defined  in  title  five-A of article six of the social services law, to make and collect from such corporations such fees and charges, including but not limited to reimbursement  of  all  costs  of  financing  by  the agency,  service  charges  and  insurance  premiums  as the agency shall determine to be reasonable.  (d) In connection with the making of mortgage  loans  and  commitments therefor  to  companies  incorporated  pursuant  to  the  not-for-profit corporation law and article seventy-five of the mental hygiene  law,  to make  and  collect  from such companies such fees and charges, including but not limited to reimbursement  of  all  costs  of  financing  by  the agency,  service  charges  and  insurance  premiums, as the agency shall determine to be reasonable.   11-a. In connection with the making of mortgage loans and  commitments therefor  to  companies  incorporated  pursuant  to  the  not-for-profit corporation law and article seven-A of this chapter, to make and collect from such companies such fees and charges, including but not limited  to reimbursement  of  all costs of financing by the agency, service charges and insurance premiums, as the agency shall determine to be reasonable.   11-b. To make or finance the making of federally-aided mortgage  loans pursuant to section forty-four-c of this article and, in connection with such  mortgage  loans,  to  exercise  such  powers  and  undertake  such responsibilities as may be required by  any  law,  regulation  or  other requirement of the federal government.   11-c.  Subject  to the provisions of any contract with noteholders and bondholders (a) to make and contract for the making  of  mortgage  loans for  the  construction  or  rehabilitation of projects which a municipal housing authority,  constituted,  created  or  established  pursuant  to article  thirteen of the public housing law, has agreed to purchase on a turnkey basis in accordance with a federally assisted  program  for  the production  of public housing as authorized by the United States housing act of nineteen hundred thirty-seven as amended to the date of enactment of this subdivision  of  this  section,  upon  the  completion  of  such construction  or  rehabilitation and (b) to make and to contract for the making of loans to, or to purchase loans from banking or  other  lending institutions   for   the  purpose  of  financing  such  construction  or rehabilitation.    12. In connection with any property on which it has made or financed a mortgage loan, to foreclose on any such property or commence any  action to  protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for and purchase  such  property at  any  foreclosure or at any other sale, or acquire or take possession of any such property;  and  in  such  event  the  agency  may  complete, administer,  pay  the  principal  of  and  interest  on  any obligations incurred in connection with such property,  dispose  of,  and  otherwise deal  with,  such  property,  in  such  manner  as  may  be necessary or desirable to protect the interests of the agency therein;   13. To enter into agreements to pay annual sums in lieu  of  taxes  to any political subdivision of the state with respect to any real property owned  by the agency; provided, however, that the amount so paid for any year upon any such property shall not exceed the sum last paid as  taxes on such property prior to the time of its acquisition by the agency;   14.  To  procure  insurance  against  any  loss in connection with its property and other  assets  (including  mortgages,  mortgage  loans  and federally  guaranteed securities secured by such mortgage loans) in such amounts, and from such insurers, as it deems desirable;   15. (a) Subject to  the  approval  of  the  commissioner  and  to  the provisions  of any contract with noteholders or bondholders, except with any holders of hospital and nursing home project bonds or notes or youth facilities project bonds or notes, or community mental  health  services and  mental  retardation  services  project  bonds or notes, whenever it deems it necessary or desirable in the fulfillment of  the  purposes  of this  article,  to  consent to the modification, with respect to rate of interest, time of payment of any installment of principal  or  interest, security,  or  any  other term, of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which  the  agency is  a  party,  except  such  mortgages,  mortgage  loans,  mortgage loan commitments, contracts or agreements as may have been entered into  with hospital corporations which are eligible borrowers as defined in article twenty-eight-B  of  the  public  health  law,  nursing home companies or non-profit corporations which are eligible borrowers as defined in title five-A  of  article  six  of  the  social  services  law  or   companies incorporated  pursuant to the not-for-profit corporation law and article seventy-five of the mental hygiene law;  (b) Subject to the provisions of any contract with holders of hospital and nursing home project bonds or notes, whenever it deems it  necessary or  desirable  in  the  fulfillment  of the purposes of this article, to consent to the modification, with respect to rate of interest,  time  of payment  of  any  installment of principal or interest, security, or any other term of any mortgage, mortgage  loan,  mortgage  loan  commitment, contract  or  agreement  of  any  kind between the agency and a hospital corporation  which  is  an  eligible  borrower  as  defined  in  article twenty-eight-B of the public health law or a nursing home company;  (c)  Subject  to  the provisions of any contract with holders of youth facilities project bonds or notes, whenever it  deems  it  necessary  or desirable in the fulfillment of the purposes of this article, to consent to  the  modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term of any mortgage, mortgage loan, mortgage loan  commitment,  contract  or agreement  of  any  kind between the agency and a non-profit corporation which is an eligible borrower pursuant to title five-A of article six of the social services law.  (d) Subject  to  the  provisions  of  any  contract  with  holders  of community mental health services and mental retardation services project bonds  or  notes,  whenever  it  deems  it necessary or desirable in the  fulfillment  of  the  purposes  of  this  article,  to  consent  to  the modification,  with  respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of  any  kind  between the agency and a company incorporated pursuant to the not-for-profit corporation  law  and  article  seventy-five  of  the mental hygiene law.   15-a.  Subject  to  the  provisions  of  any  contract with holders of community senior citizens services project bonds or notes,  whenever  it deems  it  necessary  or desirable in the fulfillment of the purposes of this article, to consent to the modification, with respect  to  rate  of interest,  time  of payment of any installment of principal or interest, security, or any other term of any  mortgage,  mortgage  loan,  mortgage loan  commitment,  contract  or agreement of any kind between the agency and a company incorporated pursuant to  the  not-for-profit  corporation law and article seven-A of this chapter.   16.  To  accept  any  gifts or grants or loans of funds or property or financial or other aid in any form from the federal  government  or  any agency  or  instrumentality  thereof or from the state or from any other source and to comply, subject to the provisions of  this  article,  with the terms and conditions thereof;   17.  To engage the services of private consultants on a contract basis for rendering professional and technical assistance and advice;   18. Subject to  the  approval  of  the  commissioner  of  housing  and community  renewal,  to  make  equity  loans to mutual companies, mutual housing  companies,  mutual   redevelopment   companies,   and   housing development  fund companies which are corporations organized pursuant to the business corporation law and article  eleven  of  this  chapter,  in amounts  not  to exceed the aggregate face value of home owners purchase notes accepted by  such  mutual  companies,  mutual  housing  companies, mutual  redevelopment  companies, or housing development fund companies, as the case may be, as consideration for the issuance of shares pursuant to the provisions of section nineteen of article two  of  this  chapter, section  seventy-eight  of  article  four  of  this chapter, section one hundred eight of article five of this chapter, or  subdivision  four  of section five hundred seventy-three of article eleven of this chapter, as the  case  may be; such loans shall be repaid over or within such period and shall be secured in such manner as the agency shall require and  the commissioner shall approve.   19.  Subject to the approval of the commissioner of health pursuant to the provisions of article twenty-eight-A of the public  health  law,  to make  mortgage  loans  to non-profit nursing home companies incorporated pursuant to the provisions  of  article  twenty-eight-A  of  the  public health  law  and the not-for-profit corporation law and to make mortgage loans to limited-profit nursing home companies incorporated pursuant  to the provisions of article twenty-eight-A of the public health law and to undertake commitments to make any such mortgage loans.   20.  Subject  to  the  approval of the commissioner, to purchase or to contract to purchase from a mutual  company,  or  from  any  shareholder thereof,  as  the  case may be, the shares appertaining to the dwellings leased by it for the purposes set forth in section forty-four-a of  this article,  to  hold  such  shares  or to sell or to contract to sell such shares to the sublessees  of  the  agency  who  are  residents  in  such dwellings,  or to the designees of the mutual company. Such shares shall be purchased or sold by the agency for the par value thereof. The  terms under  which  such shares may be sold, or be contracted to be sold shall be subject to the approval of the  commissioner.  Shares  owned  by  the agency may not be voted.    21.  Subject  to  the  approval of the commissioner of social services pursuant to the provisions of title five-A of article six of the  social services  law,  to  make mortgage loans to non-profit corporations which are eligible borrowers pursuant to the provisions of the aforesaid title five-A and to undertake commitments to make any such mortgage loans.   21-a.  Subject  to the approval of the commissioner of social services of the state of New York pursuant to the provisions of  article  seven-A of  this  chapter,  to  make  mortgage  loans  to companies incorporated pursuant to the  provisions  of  such  article  and  the  not-for-profit corporation  law  and to undertake commitments to make any such mortgage loans.   22. Subject to the approval of  the  commissioner  of  mental  hygiene pursuant to the provisions of article seventy-five of the mental hygiene law,  to make loans to companies incorporated pursuant to the provisions of article seventy-five of the mental hygiene law and the not-for-profit corporation law and to undertake commitments to make any  such  mortgage loans.  No such loan or commitment made on or after June first, nineteen hundred eighty-two, shall be made primarily for a purpose other than the refinancing of existing indebtedness pursuant  to  subdivision  four  of section 75.05 of the mental hygiene law.   23.  Subject to the approval of the commissioner of health pursuant to the provisions of article twenty-eight-B of the public  health  law,  to make   mortgage  loans  to  hospital  corporations  which  are  eligible borrowers as defined in article twenty-eight-B of the public health  law and to undertake commitments to make any such mortgage loans.   24.  To contract with the state of New York municipal bond bank agency to render such services as the agency may  deem  appropriate,  including but  not  limited  to  the  use  of the premises, personnel and personal property of the agency and to charge the reasonable  costs  thereof  and provide for the reimbursement to the agency for any expenses necessarily incurred  by  the agency in carrying out the terms of such contract. Any such contract shall be subject to the separate approval of the  director of the budget.   25.  To  contract  with  the  New  York  state medical care facilities finance agency to market and service any New  York  state  medical  care facilities  finance  agency  bonds  and  New  York  state  medical  care facilities finance agency notes approved by the New York  state  medical care  facilities  finance  agency,  and to contract to render such other services as the New York state medical care  facilities  finance  agency may  request,  including  but  not  limited  to the use of the premises, personnel and personal property  of  the  agency,  and  to  provide  for reimbursement  to  the  agency  from  the  New  York  state medical care facilities finance agency for any expenses necessarily incurred  by  the agency in carrying out the terms of any such contract. Any such contract shall be subject to the separate approval of the director of the budget.   26.  To  contract  with  the  New York state project finance agency to market and service any New York state project finance agency  bonds  and New  York  state  project  finance agency notes approved by the New York state project finance agency, and  to  contract  to  render  such  other services  as  the  New  York  state  project finance agency may request, including but not limited to the use  of  the  premises,  personnel  and personal property of the agency, and to provide for reimbursement to the agency  from  the New York state project finance agency for any expenses necessarily incurred by the agency in carrying out the terms of any such contract. Any such contract shall be subject to the separate approval of the director of the budget.   27. To contract with the New York state urban development  corporation to  market  and service any New York state urban development corporation  bonds and New York state urban development corporation notes approved by the New York state urban development  corporation  and  to  contract  to render  such  other  services  as  the  New York state urban development corporation  may  request,  including  but not limited to the use of the premises, personnel and personal property of the agency, and to  provide for   reimbursement  to  the  agency  from  the  New  York  state  urban development corporation for any expenses  necessarily  incurred  by  the agency in carrying out the terms of any such contract. Any such contract shall be subject to the separate approval of the director of the budget.   28.  To  participate in federal programs for the insurance of mortgage loans including programs which require the  agency  to  share  any  loss arising  out  of  any  mortgage  loan insured by the federal government, provided that the agency's share of any such loss shall not exceed fifty percent thereof.   28-a. To acquire and enter into commitments to acquire  any  federally guaranteed  security to finance the making of mortgage loans pursuant to section forty-four-c of this article and to pledge or otherwise use  any such federally guaranteed security in such manner as the agency deems in its  best  interest to secure or otherwise provide a source of repayment on bonds issued to finance the making of such mortgage loans.   29. To do any and all things necessary or convenient to carry out  its purposes  and  exercise  the  powers expressly given and granted in this article.   * 29-a. (1) Subject to the provisions of any contract with noteholders and bondholders (a) to make and contract for the making of loans for the acquisition, construction or rehabilitation of housing developments  for the  purpose of providing residential units for occupancy by persons and families for whom the ordinary operations of private  enterprise  cannot provide  an  adequate  supply  of  safe, sanitary and affordable housing accommodations or for residential units located in an area designated as blighted pursuant to article fifteen or sixteen of the general municipal law, and (b) to make and to contract for the making of loans  to  or  to purchase  loans  from  lending institutions for the purpose of financing loans for such acquisition, construction or rehabilitation. No loans may be financed pursuant to this subdivision unless the  agency  finds  that portions  of  the  housing developments are to be occupied by persons or families of low or moderate income. In determining whether the  portions of housing developments will be so occupied, the agency may consider and rely  upon  the  fact  that the housing developments will be occupied by persons and families in accordance with requirements for the interest on obligations issued to finance them to be exempt from  taxation  pursuant to  section  103(b)(3)  or  103(b)(4)(A) of the Internal Revenue Code of 1954, as amended.  (2) With regard to any loan made  pursuant  to  this  subdivision  and notwithstanding   the  provisions  of,  or  any  regulation  promulgated pursuant to, the emergency housing rent control law, the local emergency housing rent control act, or local law  enacted  pursuant  thereto,  the rent  stabilizaton  law of nineteen hundred sixty-nine, or the emergency tenant protection act of nineteen seventy-four, the owner of  a  housing development  otherwise subject to any such law or act, with the approval of the agency, may establish the initial rent  for  each  dwelling  unit within  the project. If the initial rents are to be established pursuant hereto, the agency shall notify occupants of the housing development, if any, of any such proposed rental establishment  and  offer  to  meet  at least once with the occupants prior to its approval.  (3)  The  powers  granted by this subdivision may be exercised only if (a) obligations of the agency have been issued to fund the loan made  or purchased by the agency and such obligations have received an investment  grade  rating  from  a  recognized  rating  agency; (b) the loan made or purchased by the agency is fully secured as to principal and interest by insurance or a commitment to insure issued by  the  state  of  New  York mortgage agency or by the general credit of a bank, national bank, trust company,  savings bank, savings and loan association, insurance company, governmental agency of the United States, or any combination thereof; or (c) obligations of the agency are purchased by a  bank,  national  bank, trust  company,  savings  bank,  savings and loan association, insurance company, governmental agency of the United States, which for purposes of this subdivision, include the federal home  loan  mortgage  corporation, the  federal  national  mortgage  association, the governmental national mortgage association,  and  any  successor  of  the  foregoing,  or  any wholly-owned subsidiary or combination thereof.   * NB Repealed July 23, 2023   29-b.  To  carry  out  its powers and responsibilities with respect to permanent housing projects for homeless  families  as  provided  for  in article three-A of this chapter.   30. (1) Subject to the provisions of any contract with noteholders and bondholders  (a)  to  make  and contract for the making of loans for the acquisition, refinancing, construction or rehabilitation of housing  and non-profit  health  facilities  and  (b) to make and to contract for the making of loans to or to purchase loans from  lending  institutions  for the  purposes  of  financing loans for such acquisition, construction or rehabilitation.  (2) The powers granted by this subdivision may be exercised  only  if: (a)  the  commissioner  of  health  has  approved  any health and health related facilities which are in addition to  the  residential  unit  and housing  portion  of  the  facility,  pursuant  to  section twenty-eight hundred two of the public health law in any case where the  facility  is subject  to  the provisions of such section or has approved the facility according to the guidelines prescribed  in  any  other  case;  (b)  with respect  to  any portion thereof owned by a for profit owner, the agency makes  the  finding  required  to  finance  housing  developments  under paragraph  one  of  subdivision  twenty-nine-a  of this section; (c) (i) obligations of the agency have been issued to  fund  the  loan  made  or purchased by the agency and such obligations have received an investment grade  rating  from a recognized rating agency, or (ii) the loan made or purchased by the agency is fully secured as to principal and interest by insurance or a commitment to insure issued by  the  state  of  New  York mortgage agency or by the general credit of a bank, national bank, trust company,  savings bank, savings and loan association, insurance company, the college construction loan insurance association,  the  student  loan marketing  association,  or  a governmental agency of the United States; and (d) approval from the applicable state agencies as to the  need  for the project has been obtained prior to joint financing.   31.  To  and  shall  develop, promote and ensure that, where possible, minority groups which traditionally have been disadvantaged,  and  women are   afforded  equal  opportunity  for  contracts  in  connection  with development and construction contracts for developments, facilities  and projects  financed by the issuance of bonds, notes and other obligations of the agency.   32. To transfer funds in an amount to be agreed upon, at  the  request of the director of the division of the budget, to the state treasury for deposit  to  the general fund as an expense of the agency. Such transfer shall be made in such amounts and at  such  times  as  specified  in  an agreement  or agreements executed between the agency and the director of the budget with copies to be provided to the chairman  of  the  assembly  ways  and  means  committee  and  the  chairman  of  the  senate finance committee.