NY Priv Hous Fin L § 1122 (2021)
2021 New York Laws PVH - Private Housing Finance Article 20 - Manufactured Home Cooperative Fund Program 1122 - Manufactured Home Cooperative Fund Contracts.

§  1122.  Manufactured  home cooperative fund contracts. 1. Within the limit of funds available in the manufactured home cooperative fund,  the agency  is  hereby  authorized  to  enter  into  contracts with eligible applicants to provide loans which such eligible applicants shall use  to establish  manufactured  home  park  cooperatives through acquisition or infrastructure improvement or both.   2. No such loan may be made or its  term  extended  pursuant  to  this article,  unless  the  agency  determines  that  the eligible applicants cannot afford or  obtain  the  financing  necessary  to  accomplish  the purposes of such loans through the ordinary unaided operation of private enterprise.   3.  The  agency  shall  not enter into loans under this article except with an eligible applicant which has submitted a plan acceptable to  the agency  which  provides  that  subsequent  to  conversion to cooperative ownership, a majority of the manufactured home owners  or  one  or  more members  of  their  immediate family intend to occupy their manufactured homes as their primary residence.   4. Such contracts  may  provide  for  loans  by  the  agency  for  the activities  to  be  carried  out  by  the  eligible  applicant under the contract, including participation in loans including but not limited  to participation in loans originated or financed by lending institutions as defined in section forty-two of this chapter, private or public employee pension  funds  or the state of New York mortgage agency. Loans shall be at the prevailing interest rate in the area for  long  term  residential mortgages or at such lower rate as the agency determines to be necessary for  the  project  to  be  financially  feasible. Loans shall not exceed ninety-five percent of the project costs including  purchase  price  and costs  for  infrastructure  improvement.  The  term  of  the  loan for a cooperative project or infrastructure improvement shall not  exceed  ten years  unless extended for periods not to exceed ten years in which case the term of the loan as extended shall not exceed thirty  years  in  the aggregate  and  the  amortization schedule for the loan shall not exceed thirty years.   5. In determining loans pursuant to this article the agency shall give preference to applications based upon the following criteria:  (a)  the  extent  to  which  park  residents   are   threatened   with displacement by the projected sale or closing of the existing park;  (b)  the  scarcity of affordable alternate sites in the immediate area for relocation of park residents;  (c) the  extent  to  which  manufactured  home  parks,  subsequent  to receiving  assistance under this article, will be owned as a cooperative by  shareholders  or  owners  or  holders  of  membership  interests  or certificate  of  membership in such cooperative whose average incomes do not exceed (i) the greater of one hundred percent of the  median  income for  the  metropolitan statistical area in which a project is located or one hundred percent of the median income for the state, or (ii)  if  the project  is  located  outside  such  an area, the greater of one hundred percent of the median income for the county  in  which  the  project  is located or one hundred percent of the median income for the state;  (d)  the  extent  to  which  the proposed resident ownership structure provides long-term security and tenure;  (e) the extent to which the proposed project will  be  undertaken  and completed in a timely fashion; and  (f)  the  extent  to  which  the  homes  in a park are occupied by the manufactured home owners or members of their families.   6. The agency shall provide for the review, at periodic intervals  not less than annually, of the performance of applicants receiving financial assistance  pursuant  to  this  article.  Such review shall, among other  things, be for the purposes of ascertaining  conformity  to  contractual provisions, the financial integrity and efficiency of applicants and the evaluation   of  the  applicants'  activities.  Contracts  entered  into pursuant  to  this  article may be terminated, funds may be withheld and unspent funds recaptured by the agency upon  a  finding  of  substantial nonperformance  or  breach by the applicant of its obligations under its contract.