NY Priv Hous Fin L § 575 (2021)
2021 New York Laws PVH - Private Housing Finance Article 11 - Housing Development Fund Companies 575 - Advances; Conditions; Repayment.

§ 575. Advances; conditions; repayment. 1. The commissioner of housing   and community renewal is hereby authorized to use the moneys held in the   housing  development  fund  to  make  non-interest  bearing  advances to   housing  development  fund  companies,  and  housing   corporations   in   accordance  with  the  provisions  of this article. Such moneys shall be   paid out of such fund, after audit  by  and  upon  the  warrant  of  the   comptroller, on vouchers approved by the commissioner.1-a.  The  supervising  agency  is hereby authorized to use the moneys   held  in  the  municipal  housing  development  fund  or   other   funds   appropriated  by  the municipality to make non-interest bearing advances   to housing development fund companies in accordance with the  provisions   of this article and the applicable law of the municipality.2.  No  such  advances shall be made with respect to a housing project   unless the commissioner or the supervising agency, as the case  may  be,   (a)  finds  (1)  that  the  housing development fund company, or housing   corporation proposes to finance the project in whole or  in  part  by  a   federally-aided,  state-aided  or municipally-aided mortgage or (2) that   the project, if otherwise financed, will provide housing for persons  or   families  of  low  income,  as defined in this chapter, and is otherwise   consistent with the purposes of this article; (b) finds that the project   site is suitable, there is a need for this housing type proposed in  the   area  to  be  served  and  the  project  is feasible; and (c) reasonably   anticipates that financing will be obtained and makes a finding to  that   effect.3.  No  such  advances  may be made to a housing corporation unless it   enters into an agreement with the  commissioner  to  be  regulated  with   respect  to rents, profits, dividends and disposition of its property or   franchises. No such advances may be made to a housing  development  fund   company  unless  it  enters  into  an  agreement  in accordance with the   provisions of section five hundred seventy-six of this article.4. The proceeds of such  advance  may  be  used  only  to  defray  the   development costs of such project.5. Each such advance shall either (i) be consolidated with the lien of   a  municipally-aided  mortgage, or (ii) be repaid in full by the housing   development fund company, or housing  corporation  to  the  division  of   housing  and  community renewal or to the supervising agency as directed   in  paragraph  (b)  of  subdivision  two   of   section   five   hundred   seventy-four-a of this article, as the case may be. Such repayment shall   be  made concurrent with receipt by the housing development fund company   or its successor in interest, or housing corporation of the proceeds  of   its  mortgage  or  construction  loan,  unless  the  commissioner or the   supervising agency, as the case may be, shall extend the period for  the   repayment  of  such advances. In no event shall the time of repayment be   extended later than the date of final advance of funds pursuant to  such   mortgage financing.6.  If the commissioner or the supervising agency, as the case may be,   in his or its discretion shall, at any time,  determine  that  permanent   financing  for the housing project may not be obtained, then and in that   event all advances made to the  housing  development  fund  company,  or   housing  corporation  pursuant  to  this  article  shall  become due and   payable upon the demand of the commissioner or the  supervising  agency,   as the case may be.