NY Priv Hous Fin L § 472 (2021)
2021 New York Laws PVH - Private Housing Finance Article 8-B - Loans to Owner-Occupants of One to Four Unit Private and Multiple Dwellings 472 - Loans to Owner-Occupants.

§  472. Loans to owner-occupants. 1. Notwithstanding the provisions of   any general, special or local law, a  municipality,  acting  through  an   agency,  is  authorized  to  make, or contract to make, loans to low and   moderate income owner-occupants of one to four unit existing private  or   multiple  dwellings  within  its  territorial  limits,  subject  to  the   limitation of subdivisions two through seven of this  section,  in  such   amounts  as  shall be required for the rehabilitation of such dwellings,   provided, however, that such  loans  shall  not  exceed  sixty  thousand   dollars  per  dwelling unit. Such loans may also include the refinancing   of the outstanding indebtedness of such dwellings, and the  municipality   may  make  temporary  loans  or  advances  to  such  owner-occupants  in   anticipation of permanent loans for such purposes.2.  Each  loan  shall  be  evidenced  by  a  note  executed   by   the   owner-occupant  of  the  existing  dwelling. Repayment of each such note   shall be within a period of the probable life of the  existing  dwelling   which is hereby determined to be thirty years, or such shorter period as   the  agency  shall determine. The repayment shall be made in such manner   as may be provided in such note and contract, if any, in connection with   such loan, and may authorize such owner-occupant, with  the  consent  of   the  agency,  to  prepay the principal of the loan subject to such terms   and conditions as therein provided. In  order  to  make  any  such  loan   affordable  to  the  owner-occupant, the agency may provide in such note   and contract that all of the outstanding principal of said loan  may  be   self-liquidated over a fifteen year period of owner-occupancy. Such note   and   contract   may   contain  such  other  terms  and  provisions  not   inconsistent with the provisions of this article as the agency may  deem   necessary  or  desirable  to  secure repayment of the loan, the interest   thereon, if any, and other charges in connection therewith, and to carry   out the purposes and provisions of this article.3. The agency in its discretion may require  that  the  owner-occupant   execute,  acknowledge  and  deliver  a uniform commercial code financing   statement for the real property improvement to be in such  form  as  the   agency  shall specify and in accordance with the requirements of section   9--502 of the uniform commercial code of the state  of  New  York.  Said   financing  statement  shall  be  filed  or  recorded  without  charge in   accordance with the provisions of paragraph one  of  subsection  (a)  of   section 9--501 of the uniform commercial code, and from the date of such   filing  the  municipality  shall  have a lien against said real property   improvement for the amount advanced or so much thereof as remains unpaid   together with the interest thereon. Upon payment of all sums advanced by   the municipality and interest thereon,  and  upon  demand  of  the  then   record  owner  of  the real property, the agency shall deliver a copy of   the financing statement with an endorsement thereon  that  the  lien  is   satisfied.  Upon  filing  of such copy in the office where the financing   statement was filed and upon payment of the  proper  fee  therefor,  the   lien of such financing statement shall be discharged.4.  The agency may require the owner-occupant to execute a mortgage as   security for a loan in lieu of or in addition to a  financing  statement   as  provided  in  subdivision three of this section. Such mortgage shall   contain such terms and provisions not inconsistent with  the  provisions   of  this  article  as  the  agency  shall deem necessary or desirable to   secure repayment of the loan.5. Loans may be made with respect to a one to  four  unit  private  or   multiple  dwelling  encumbered  by mortgages, provided no mortgage is in   default, except if such  default  shall  be  remedied  by  the  proposed   rehabilitation or improvement. 6.  The  agency may charge the owner-occupant of such existing private   or multiple dwelling  reasonable  fees  for  administration,  financing,   regulation, supervision and audit.7. In making a loan under this article, an agency shall have the power   to participate in a loan made by any private investor, provided that the   portion  of  the  loan  funded  by the agency shall not exceed an amount   equal to seventy-five percent of the total loan. The  agency  may  enter   into  an  agreement  with  a private investor to deposit funds with such   private investor  to  cover  the  agency's  participation  in  loans  to   owner-occupants  of  one  to  four  unit  existing  private and multiple   dwellings  with  such  funds  advanced  by  such  private  investor   to   owner-occupants of existing dwellings. The portion of the loan funded by   the  agency may be equal to or subordinate in lien to the portion of the   loan funded by the private  investor  and  the  note  and  contract  may   contain  such  terms  with respect to interest rate, if any, and time of   payment of principal and interest  as  determined  by  the  agency.  The   agency  may  make  provision,  either in the mortgage or mortgages or by   separate agreement, for the performance by the private investor of  such   services  as  are  generally  performed  by  a banking institution which   itself holds a mortgage,  including,  without  limitation,  construction   loan  advances,  construction  supervision,  initiation  of  foreclosure   proceedings,  procurement  of  insurance,  and  all  other  matters   in   connection  with the financing, supervision, regulation and audit of any   such loan. In order to make the loan affordable to  the  owner-occupant,   the agency may provide an interest reduction subsidy pursuant to section   four  hundred  seventy-five  of this article, or may provide that all or   part of the agency's portion of the outstanding principal  of  any  such   participation  loan may be self-liquidated over a fifteen year period of   owner-occupancy.