NY Gen Mun L § 696-A (2021)
2021 New York Laws GMU - General Municipal Article 16 - Urban Development Action Area Act 696-A - Loans.

* § 696-a. Loans. 1. a. Notwithstanding the provisions of any general,   special or local law, an agency is hereby authorized to make or contract   to  make grants or loans to the owner of any property that is part of an   urban  development  action  area  project  for  the   purpose   of   (i)   rehabilitation  of  an  existing  private  or  multiple  dwelling,  (ii)   providing site improvements, including, but not limited  to,  water  and   sewer  facilities, sidewalks, landscaping, the curing of problems caused   by abnormal site conditions, excavation and construction of footings and   foundations and other improvements  associated  with  the  provision  of   infrastructure,  or  (iii) providing for other costs of construction for   the development of private and multiple dwelling housing accommodations.b.  In  the  case  of  a  grant  made  under  this  section  for   the   rehabilitation of an existing multiple dwelling intended to be converted   to a condominium or cooperative form of ownership or for the development   of  one  to  four  unit  housing  accommodations  or  a  condominium  or   cooperative housing corporation, such grant shall require  a  regulatory   agreement with the agency limiting profits.c. Any loan made in accordance with this section shall be secured by a   note  and  mortgage  upon  the  property  improved  or, in the case of a   condominium, a note and mortgage upon each of the housing accommodations   aided by such loan, or in the case of a cooperative housing corporation,   a note and mortgage upon the economic interest in  such  corporation  of   each  tenant-shareholder  aided  by  such  loan,  or  upon  the property   improved, or upon both such economic  interest  or  property;  provided,   however, that all or part of any such loan may be unsecured if necessary   to satisfy the requirements of any participating lender. Such loan shall   be repaid over such period as the agency shall determine.d.   Such   note   and  mortgage  may  provide  that  the  loan  shall   automatically be reduced to zero over a period of up to thirty years  of   continuous  compliance by the owner with a regulatory agreement with the   agency  limiting  profits  and  rentals  charged  or   requiring   owner   occupancy.   Notwithstanding such provision as contained in the note and   mortgage, the loan shall be  reduced  to  zero  only  if,  prior  to  or   simultaneously  with delivery of such note and mortgage, the agency made   a written determination that such reduction would be necessary to ensure   the  continued  affordability  or  economic  viability  of  the  housing   accommodations  assisted  by such loan. Such written determination shall   document the basis upon which the loan was determined to be eligible for   evaporation.e. In the case of a grant or loan made  under  this  section  for  the   purpose of providing rental housing for persons of low income as defined   in  section  two  of the private housing finance law, such loan or grant   shall require a regulatory agreement with the  agency  limiting  profits   and rentals charged.f.  The  repayment  of  any  loan made in accordance with this section   shall be made in such manner  as  may  be  provided  in  such  note  and   mortgage in connection with such loan, and may authorize the owner, with   the  consent  of the agency, to prepay the principal of the loan subject   to such terms and conditions as therein provided. Such note and mortgage   may contain such other terms and conditions not  inconsistent  with  the   provisions of this article as the agency may deem necessary or desirable   to  carrying  out the purposes and provisions of this article including,   but not limited to, provisions concerning the repayment of the loan, the   interest, if any, thereon, and other charges in connection therewith.g. For purposes of this section, the term "mortgage" shall include any   pledge or assignment of shares or assignment of a proprietary lease in a   cooperative housing corporation  where  such  pledge  or  assignment  is   intended  as  security  for  the  performance of an obligation and which    imposes a lien on or affects title to such shares  or  such  proprietary   lease.2.  Notwithstanding  the  provisions of, or any regulation promulgated   pursuant to, the emergency housing rent control law, the local emergency   housing rent  control  act,  the  emergency  tenant  protection  act  of   nineteen  seventy-four,  and/or  any local law enacted pursuant thereto,   upon completion of the rehabilitation of any building used primarily for   residential purposes, which is aided by a loan made  by  a  municipality   pursuant  to  subdivision one of this section in a jurisdiction in which   rents are regulated pursuant to any of  the  above  laws  or  acts,  the   agency  shall  establish  the initial rent for each rental dwelling unit   within the building. All dwelling units within such building  subsequent   to  establishment of initial rents by the agency shall be subject to the   emergency housing rent control law, the  local  emergency  housing  rent   control   act,   the   emergency   tenant  protection  act  of  nineteen   seventy-four,  and/or  any  local  law  enacted  pursuant  thereto,   if   applicable  in the municipality, but only if such laws and/or acts would   otherwise apply to such dwelling units. The tenants in occupancy of such   dwelling units in such a building that are regulated  pursuant  to  such   laws  and/or  acts  shall  be offered a choice of a one-year or two-year   lease at the initial rent established by the agency, notwithstanding any   contrary provisions of, or regulations adopted pursuant  to,  such  laws   and/or  acts.  The  agency  shall cause all tenants in occupancy of each   dwelling unit affected by this subdivision to be notified of and have an   opportunity  to  comment  upon  the  contemplated  rehabilitation.  Such   notification  shall advise such tenants of the approximate expected rent   increase and the subsequent availability of a one-  or  two-year  lease.   Such  notification and opportunity to comment shall be provided prior to   commencement of the rehabilitation and again after its completion before   establishment of the initial rents.3. The agency shall use  its  best  efforts  to  ensure  that  actions   undertaken pursuant to subdivision two of this section are structured so   as  to  minimize the likelihood of any involuntary economic displacement   of tenants who reside in multiple dwellings which  are  the  subject  of   such actions, provided, however, that if temporary physical displacement   is required as a direct result of rehabilitation work which is performed   in  a  multiple dwelling which is aided by a loan made by a municipality   pursuant  to  subdivision  one  of  this  section,  suitable   temporary   relocation arrangements shall be provided.* NB Effective until July 1, 2024* §  696-a.  Loans.  Notwithstanding  the  provisions  of any general,   special or local law, an agency is hereby authorized to make or contract   to make grants or loans: (i) to the owner of any property that  is  part   of  an  urban  development  action  area  project  for  the  purpose  of   rehabilitation of an existing private or multiple dwelling, (ii) for the   purpose of providing site improvements, including, but not  limited  to,   water  and  sewer  facilities,  sidewalks,  landscaping,  the  curing of   problems caused by abnormal site conditions, excavation and construction   of footings and foundations and other improvements associated  with  the   provision  of  infrastructure, or (iii) for the purpose of providing for   other costs of construction for the development of private and  multiple   dwelling  housing accommodations. In the case of a grant made under this   section for the rehabilitation of an existing multiple dwelling intended   to be converted to a condominium or cooperative form of ownership or for   the development  of  one  to  four  unit  housing  accommodations  or  a   condominium or cooperative housing corporation, such grant shall require   a  regulatory  agreement with the agency limiting profits. Any loan made   in accordance with this section shall be secured by a note and  mortgage    upon  the property improved or, in the case of a condominium, a note and   mortgage upon each of the housing accommodations aided by such loan,  or   in  the  case  of a cooperative housing corporation, a note and mortgage   upon    the    economic   interest   in   such   corporation   of   each   tenant-shareholder aided by such loan, or upon the property improved, or   upon both such economic interest or property. Such loan shall be  repaid   over  such  period  as the agency shall determine. In the case of a loan   for rehabilitation of an  existing  multiple  dwelling  intended  to  be   converted  to  a  condominium or cooperative form of ownership or a loan   for the provision of infrastructure or for the provision of other  costs   of  construction  for  the  development  of  one  to  four  unit housing   accommodations or a condominium or cooperative housing corporation, such   note and mortgage may provide  that  the  loan  shall  automatically  be   reduced  to  zero  over  a  period  of  owner-occupancy  of  the housing   accommodations assisted by such loan. In the case of  a  grant  or  loan   made  under this section for the purpose of providing rental housing for   persons of low income as defined in section two of the  private  housing   finance  law,  such  loan  or grant shall require a regulatory agreement   with the agency limiting profits and rentals charged. In the case  of  a   loan made under this section for the purpose of providing rental housing   for  persons  of  low  income  as  defined in section two of the private   housing finance law, such note and mortgage may provide  that  the  loan   shall  automatically  be  reduced  to zero over a period of up to thirty   years of compliance by the owner with a regulatory  agreement  with  the   agency  limiting  profits and rentals charged. The repayment of any loan   made in accordance with this section shall be made in such manner as may   be provided in such note and mortgage in connection with such loan,  and   may  authorize  the owner, with the consent of the agency, to prepay the   principal of the loan subject to such terms and  conditions  as  therein   provided.  Such  note  and  mortgage  may  contain  such other terms and   conditions not inconsistent with the provisions of this article  as  the   agency  may deem necessary or desirable to carrying out the purposes and   provisions of this article including, but  not  limited  to,  provisions   concerning the repayment of the loan, the interest, if any, thereon, and   other charges in connection therewith. For purposes of this section, the   term  "mortgage"  shall  include  any  pledge or assignment of shares or   assignment of a proprietary lease in a cooperative  housing  corporation   where  such  pledge  or  assignment  is  intended  as  security  for the   performance of an obligation and which imposes  a  lien  on  or  affects   title to such shares or such proprietary lease.* NB Effective July 1, 2024