NY Priv Hous Fin L § 573 (2021)
2021 New York Laws PVH - Private Housing Finance Article 11 - Housing Development Fund Companies 573 - Incorporation and Organization of Non-Profit Housing Corporations.

§   573.   Incorporation   and   organization  of  non-profit  housing   corporations.  1.  A  housing  development   fund   company   shall   be   incorporated  pursuant  to  the  provisions  of  this  article  and  the   provisions  of  either  (a)  the  business  corporations  law,  (b)  the   not-for-profit  corporation  law,  or (c) the not-for-profit corporation   law and article two of this chapter.2.  The  term  "housing  development  fund  corporation"  or  "housing   development  fund  company" shall be included as a part of the corporate   name as set forth in the certificate of incorporation.3. The certificate of incorporation of any such corporation shall,  in   addition to any other requirements of law, provide:a.  that  the  company  has  been  organized  exclusively to develop a   housing project for persons of low income;b. that all income and earnings  of  the  corporation  shall  be  used   exclusively  for  corporate purposes, and that no part of the net income   or net earnings of the corporation shall inure to the benefit or  profit   of any private individual, firm, corporation or association;c.  that  if the corporation receives a temporary loan or advance from   the housing development fund or a municipal housing development fund, as   established by or pursuant to article  eleven  of  the  private  housing   finance  law, it shall be authorized to enter into an agreement with the   commissioner of housing and community renewal of the state of  New  York   or  the supervising agency, as the case may be, providing for regulation   with respect to rents, profits, dividends and disposition of property or   franchises;d. that if the corporation receives a temporary loan or  advance  from   the housing development fund or a municipal housing development fund, as   established  by  or  pursuant  to  article eleven of the private housing   finance law, the commissioner of housing and community  renewal  of  the   state  of  New York or the supervising agency, as the case may be, shall   have the power, if, in his or its discretion, he or it determines either   that any such temporary loan or advance is  in  jeopardy  of  not  being   repaid,  or  that  the proposed housing project for which such temporary   loan or advance was made is in jeopardy of  not  being  constructed,  to   appoint  to  the  board of directors of such corporation a number of new   directors, which number shall be sufficient to constitute a majority  of   such  board,  notwithstanding any other provision of such certificate of   incorporation or of any other provision of law.4. The certificate of incorporation of any such corporation  organized   pursuant  to  the  business  corporation  law and this article shall, in   addition, provide that each housing project of such corporation shall be   operated exclusively for the benefit of the persons or families who  are   entitled  to occupancy in such housing project by reason of ownership of   shares in such corporation, and that such corporation may  issue  shares   for  home owners purchase notes if the purchase transaction has received   the  written  endorsement  of  the  commissioner  in   accordance   with   supplementary  rules  and  regulations of the commissioner made therefor   and if at least two hundred dollars in money or property is received  by   such corporation toward the issuance of such shares.5.   The  secretary  of  state  shall  not  file  the  certificate  of   incorporation of any such corporation or any  amendment  thereto  unless   the  consent  or approval of the commissioner or the supervising agency,   as the case may be, is affixed thereon or attached thereto.  Consent  to   the  filing  of  such  certificate  of incorporation shall be based upon   findings by the commissioner or supervising agency as to  the  character   and competence of the sponsor.