2023 New York Laws › PBG - Public Housing › Article 4 - State Aid › 76-A - Private Financing.

§  76-a.  Private financing.   To facilitate the enlistment of private
capital through the sale by authorities or municipalities of their bonds
and other obligations to  persons,  firms  or  corporations  other  than
governments,  in  financing state projects, and to maintain the low-rent
character of such projects---
(a) Every contract entered into by the state with an authority  and  a
municipality,  or  solely with a municipality, to make loans or periodic
subsidies  or  both  (including  contracts  which  amend  or   supersede
contracts  previously  made,  provided that such amending or superseding
contracts do  not  relate  to  state  projects  with  respect  to  which
definitive housing bonds of the state have been sold pursuant to section
sixty of the state finance law, and do not relate to state projects with
respect  to which serial bonds of a municipality have been sold pursuant
to sections ten and eleven of the local finance law) may provide that---
(1) upon the occurrence of a substantial default  in  respect  to  the
covenants  or  conditions  to  which  the  authority  or municipality is
subject (as such substantial default shall be defined in such contract),
the authority or municipality shall be obligated at the  option  of  the
commissioner,  either to convey title to the state in any case where, in
the determination of the  commissioner  (which  determination  shall  be
final  and  conclusive),  such  conveyance  of  title  to  the  state is
necessary to achieve  the  purposes  of  this  chapter,  or  to  deliver
possession  to  the  state of the project, as then constituted, to which
such contract relates;
(2)  the  state  shall  be  obligated  to  reconvey  or  to  redeliver
possession of the project, as constituted at the time of reconveyance or
redelivery,  to  such authority or municipality upon such terms as shall
be prescribed in such contract and as soon as practicable: (i) after the
commissioner shall be satisfied that all defaults with  respect  to  the
project  have been cured, and that the project will, in order to fulfill
the purposes of this chapter, thereafter be operated in accordance  with
the  terms  of  such  contract;  or  (ii)  after  the termination of the
obligation to make periodic subsidies available  unless  there  are  any
obligations or covenants of the authority or municipality which are then
in  default.  Any  prior  conveyances  and reconveyances, deliveries and
redeliveries of possession shall not exhaust  the  right  to  require  a
conveyance  or  delivery  of  possession  of  the  project  to the state
pursuant to sub-paragraph (1) of subdivision (a),  upon  the  subsequent
occurrence of a substantial default.
(b) Whenever such contract to make loans or periodic subsidies or both
shall  include  provisions  which  the  commissioner,  in said contract,
determines  are  in  accordance  with  the  provisions   authorized   by
subdivision  (a)  hereof,  and  the periodic subsidies, pursuant to such
contract, have been pledged by the  authority  or  the  municipality  as
security   for  the  payment  of  the  principal  and  interest  on  the
obligations  of  the  authority  or   municipality,   the   commissioner
(notwithstanding any other provisions of this chapter) shall continue to
make periodic subsidies available for the project so long as any of such
obligations remain outstanding. Acquisition of title to a project by the
state,  or  delivery  of possession thereof to the state, as provided in
subdivision (a) hereof, shall not constitute an assumption of  liability
by  the state of the bonds or notes of the authority or municipality for
which  the  periodic  subsidies  or  loans  have   been   pledged.   The
commissioner  may  covenant  in  such contract (in lieu of retaining the
right to reduce or terminate periodic subsidies under  section  eighteen
of this chapter and notwithstanding any other provisions of law) that in
any  event  such periodic subsidies shall in each year be at least equal
to an amount which, together with such income  or  other  funds  as  are

actually  available  from  the  project for the purpose at the time such
periodic  subsidy  is  made,  will  suffice  for  the  payment  of   all
installments,  falling  due  within  the  said  year,  of  principal and
interest  on  the  obligations for which the periodic subsidies provided
for in the contract shall have been pledged as security;  provided  that
such  periodic  subsidies  shall not exceed the amounts and shall not be
made for a period longer  than  the  amounts  and  period  specified  in
section  seventy-three  of  this  chapter and provided further that such
periodic subsidies shall not exceed the amounts and shall  not  be  made
for  a  period  longer  than  the  amounts  and  period specified in the
contract.
(c) Obligations of an authority or municipality which (1) are  secured
either  (A)  by a pledge of a state loan under an agreement between such
authority or municipality and the state, or (B) by a pledge of  periodic
subsidies to be made by the state and (2) bear, or are accompanied by, a
certificate  of  the  commissioner that such obligations are so secured,
shall be incontestable in the hands of a bearer. The full faith  of  the
state  is  pledged  to  the  payment of all loans and periodic subsidies
contracted for by the commissioner as security for such obligations.