2023 New York Laws › PVH - Private Housing Finance › Article 3 - New York State Housing Finance Agency › 44 - Powers of the Agency.

§  44.  Powers  of  the  agency.  Except  as otherwise limited by this
article, the agency shall have power:
1. To sue and be sued;
2. To have a seal and alter the same at pleasure;
3. To make and execute contracts and all other  instruments  necessary
or  convenient  for  the  exercise of its power and functions under this
article;
4. To make  and  alter  by-laws  for  its  organization  and  internal
management  and,  subject to agreements with noteholders or bondholders,
to make rules and regulations governing the  use  of  its  property  and
facilities,  which  rules  and  regulations  shall  be  filed  with  the
department of state in the manner provided by section one hundred two of
the executive law;
5. To acquire, hold and dispose of personal property for its corporate
purposes;
6. To appoint officers, agents and employees, prescribe  their  duties
and  fix  their  compensation,  subject  to  the provisions of the civil
service law and to the  rules  and  regulations  of  the  civil  service
commission of this state;
7.  To  borrow  money  and  issue  negotiable  notes,  bonds  or other
obligations and to provide for the rights of the holders thereof;
8. Subject to any  agreements  with  noteholders  or  bondholders,  to
invest any funds held in reserve or sinking funds, including the insured
mortgage  reserve  fund and any special revenue housing coverage reserve
fund or any monies not required for immediate use  or  disbursement,  at
the  discretion of the agency, in obligations of the state or the United
States government or obligations the principal and interest of which are
guaranteed by the state or the United States government, or in any other
obligations in which the  comptroller  of  the  state  of  New  York  is
authorized  to  invest  pursuant  to  section  ninety-eight of the state
finance law;
9. Subject to the approval of the commissioner in the case of mortgage
loans to other than hospital corporations which are  eligible  borrowers
as defined in article twenty-eight-B of the public health law or nursing
home  companies, non-profit corporations which are eligible borrowers as
defined in title five-A of article six of the social  services  law,  or
companies  incorporated  pursuant  to the not-for-profit corporation law
and article seventy-five of the mental hygiene law, who shall be  guided
by the provisions governing state loans contained in article two of this
chapter, to make mortgage loans, to participate with the state in making
mortgage  loans  and  to undertake commitments to make any such mortgage
loans;
9-a. Subject to the approval of the commissioner of social services of
the state  of  New  York,  to  make  mortgage  loans  and  to  undertake
commitments  to make mortgage loans to community senior citizens centers
and services companies under and pursuant to  article  seven-A  of  this
chapter.
10.  Subject  to  the  approval  of  the  commissioner  of housing and
community  renewal,  the  state  commissioner  of  health,   the   state
commissioner  of  mental  hygiene  or  the  state commissioner of social
services, as the case may be, to sell, at public or  private  sale,  any
mortgage  or  other  obligation  securing  a  mortgage  loan made by the
agency;
* 10-a. To acquire and  to  contract  to  acquire,  by  assignment  or
otherwise,  any  mortgage securing a loan and any note or bond made by a
mutual housing company and to modify or satisfy such mortgage,  bond  or
note  and  accept  or  make a new mortgage and other instruments for the
purpose of refinancing the existing indebtedness of such company.
* NB (Effective pending ruling by Internal Revenue Service)
11.  (a)  In  connection  with  the  making or financing the making of
mortgage loans and  commitments  therefor,  except  mortgage  loans  and
commitments made with hospital corporations which are eligible borrowers
as  defined  in article twenty-eight-B of the public health law, nursing
home companies, non-profit corporations which are eligible borrowers  as
defined  in  title  five-A of article six of the social services law, or
companies incorporated pursuant to the  not-for-profit  corporation  law
and  article seventy-five of the mental hygiene law, to make and collect
such fees and charges, including but not limited to reimbursement of all
costs  of  financing  by  the  agency,  service  charges  and  insurance
premiums, as the agency shall determine to be reasonable and as shall be
approved by the commissioner of housing;
(b)  In  connection  with the making of mortgage loans and commitments
therefor to  hospital  corporations  which  are  eligible  borrowers  as
defined  in  article  twenty-eight-B of the public health law or nursing
home companies, to make and collect from such corporations and companies
such fees and charges, including but not limited to reimbursement of all
costs  of  financing  by  the  agency,  service  charges  and  insurance
premiums, as the agency shall determine to be reasonable;
(c)  In  connection  with the making of mortgage loans and commitments
therefor to non-profit corporations  which  are  eligible  borrowers  as
defined  in  title  five-A of article six of the social services law, to
make and collect from such corporations such fees and charges, including
but not limited to reimbursement  of  all  costs  of  financing  by  the
agency,  service  charges  and  insurance  premiums  as the agency shall
determine to be reasonable.
(d) In connection with the making of mortgage  loans  and  commitments
therefor  to  companies  incorporated  pursuant  to  the  not-for-profit
corporation law and article seventy-five of the mental hygiene  law,  to
make  and  collect  from such companies such fees and charges, including
but not limited to reimbursement  of  all  costs  of  financing  by  the
agency,  service  charges  and  insurance  premiums, as the agency shall
determine to be reasonable.
11-a. In connection with the making of mortgage loans and  commitments
therefor  to  companies  incorporated  pursuant  to  the  not-for-profit
corporation law and article seven-A of this chapter, to make and collect
from such companies such fees and charges, including but not limited  to
reimbursement  of  all costs of financing by the agency, service charges
and insurance premiums, as the agency shall determine to be reasonable.
11-b. To make or finance the making of federally-aided mortgage  loans
pursuant to section forty-four-c of this article and, in connection with
such  mortgage  loans,  to  exercise  such  powers  and  undertake  such
responsibilities as may be required by  any  law,  regulation  or  other
requirement of the federal government.
11-c.  Subject  to the provisions of any contract with noteholders and
bondholders (a) to make and contract for the making  of  mortgage  loans
for  the  construction  or  rehabilitation of projects which a municipal
housing authority,  constituted,  created  or  established  pursuant  to
article  thirteen of the public housing law, has agreed to purchase on a
turnkey basis in accordance with a federally assisted  program  for  the
production  of public housing as authorized by the United States housing
act of nineteen hundred thirty-seven as amended to the date of enactment
of this subdivision  of  this  section,  upon  the  completion  of  such
construction  or  rehabilitation and (b) to make and to contract for the
making of loans to, or to purchase loans from banking or  other  lending
institutions   for   the  purpose  of  financing  such  construction  or
rehabilitation.
12. In connection with any property on which it has made or financed a
mortgage loan, to foreclose on any such property or commence any  action
to  protect or enforce any right conferred upon it by any law, mortgage,
contract or other agreement, and to bid for and purchase  such  property
at  any  foreclosure or at any other sale, or acquire or take possession
of any such property;  and  in  such  event  the  agency  may  complete,
administer,  pay  the  principal  of  and  interest  on  any obligations
incurred in connection with such property,  dispose  of,  and  otherwise
deal  with,  such  property,  in  such  manner  as  may  be necessary or
desirable to protect the interests of the agency therein;
13. To enter into agreements to pay annual sums in lieu  of  taxes  to
any political subdivision of the state with respect to any real property
owned  by the agency; provided, however, that the amount so paid for any
year upon any such property shall not exceed the sum last paid as  taxes
on such property prior to the time of its acquisition by the agency;
14.  To  procure  insurance  against  any  loss in connection with its
property and other  assets  (including  mortgages,  mortgage  loans  and
federally  guaranteed securities secured by such mortgage loans) in such
amounts, and from such insurers, as it deems desirable;
15. (a) Subject to  the  approval  of  the  commissioner  and  to  the
provisions  of any contract with noteholders or bondholders, except with
any holders of hospital and nursing home project bonds or notes or youth
facilities project bonds or notes, or community mental  health  services
and developmental disabilities services project bonds or notes, whenever
it deems it necessary or desirable in the fulfillment of the purposes of
this  article,  to  consent to the modification, with respect to rate of
interest, time of payment of any installment of principal  or  interest,
security,  or  any  other term, of any mortgage, mortgage loan, mortgage
loan commitment, contract or agreement of any kind to which  the  agency
is  a  party,  except  such  mortgages,  mortgage  loans,  mortgage loan
commitments, contracts or agreements as may have been entered into  with
hospital corporations which are eligible borrowers as defined in article
twenty-eight-B  of  the  public  health  law,  nursing home companies or
non-profit corporations which are eligible borrowers as defined in title
five-A  of  article  six  of  the  social  services  law  or   companies
incorporated  pursuant to the not-for-profit corporation law and article
seventy-five of the mental hygiene law;
(b) Subject to the provisions of any contract with holders of hospital
and nursing home project bonds or notes, whenever it deems it  necessary
or  desirable  in  the  fulfillment  of the purposes of this article, to
consent to the modification, with respect to rate of interest,  time  of
payment  of  any  installment of principal or interest, security, or any
other term of any mortgage, mortgage  loan,  mortgage  loan  commitment,
contract  or  agreement  of  any  kind between the agency and a hospital
corporation  which  is  an  eligible  borrower  as  defined  in  article
twenty-eight-B of the public health law or a nursing home company;
(c)  Subject  to  the provisions of any contract with holders of youth
facilities project bonds or notes, whenever it  deems  it  necessary  or
desirable in the fulfillment of the purposes of this article, to consent
to  the  modification, with respect to rate of interest, time of payment
of any installment of principal or interest, security, or any other term
of any mortgage, mortgage loan, mortgage loan  commitment,  contract  or
agreement  of  any  kind between the agency and a non-profit corporation
which is an eligible borrower pursuant to title five-A of article six of
the social services law.
(d) Subject  to  the  provisions  of  any  contract  with  holders  of
community mental health services and developmental disabilities services
project  bonds  or notes, whenever it deems it necessary or desirable in

the fulfillment of the purposes of  this  article,  to  consent  to  the
modification,  with  respect to rate of interest, time of payment of any
installment of principal or interest, security, or any other term of any
mortgage, mortgage loan, mortgage loan commitment, contract or agreement
of  any  kind  between the agency and a company incorporated pursuant to
the not-for-profit corporation  law  and  article  seventy-five  of  the
mental hygiene law.
15-a.  Subject  to  the  provisions  of  any  contract with holders of
community senior citizens services project bonds or notes,  whenever  it
deems  it  necessary  or desirable in the fulfillment of the purposes of
this article, to consent to the modification, with respect  to  rate  of
interest,  time  of payment of any installment of principal or interest,
security, or any other term of any  mortgage,  mortgage  loan,  mortgage
loan  commitment,  contract  or agreement of any kind between the agency
and a company incorporated pursuant to  the  not-for-profit  corporation
law and article seven-A of this chapter.
16.  To  accept  any  gifts or grants or loans of funds or property or
financial or other aid in any form from the federal  government  or  any
agency  or  instrumentality  thereof or from the state or from any other
source and to comply, subject to the provisions of  this  article,  with
the terms and conditions thereof;
17.  To engage the services of private consultants on a contract basis
for rendering professional and technical assistance and advice;
18. Subject to  the  approval  of  the  commissioner  of  housing  and
community  renewal,  to  make  equity  loans to mutual companies, mutual
housing  companies,  mutual   redevelopment   companies,   and   housing
development  fund companies which are corporations organized pursuant to
the business corporation law and article  eleven  of  this  chapter,  in
amounts  not  to exceed the aggregate face value of home owners purchase
notes accepted by  such  mutual  companies,  mutual  housing  companies,
mutual  redevelopment  companies, or housing development fund companies,
as the case may be, as consideration for the issuance of shares pursuant
to the provisions of section nineteen of article two  of  this  chapter,
section  seventy-eight  of  article  four  of  this chapter, section one
hundred eight of article five of this chapter, or  subdivision  four  of
section five hundred seventy-three of article eleven of this chapter, as
the  case  may be; such loans shall be repaid over or within such period
and shall be secured in such manner as the agency shall require and  the
commissioner shall approve.
19.  Subject to the approval of the commissioner of health pursuant to
the provisions of article twenty-eight-A of the public  health  law,  to
make  mortgage  loans  to non-profit nursing home companies incorporated
pursuant to the provisions  of  article  twenty-eight-A  of  the  public
health  law  and the not-for-profit corporation law and to make mortgage
loans to limited-profit nursing home companies incorporated pursuant  to
the provisions of article twenty-eight-A of the public health law and to
undertake commitments to make any such mortgage loans.
20.  Subject  to  the  approval of the commissioner, to purchase or to
contract to purchase from a mutual  company,  or  from  any  shareholder
thereof,  as  the  case may be, the shares appertaining to the dwellings
leased by it for the purposes set forth in section forty-four-a of  this
article,  to  hold  such  shares  or to sell or to contract to sell such
shares to the sublessees  of  the  agency  who  are  residents  in  such
dwellings,  or to the designees of the mutual company. Such shares shall
be purchased or sold by the agency for the par value thereof. The  terms
under  which  such shares may be sold, or be contracted to be sold shall
be subject to the approval of the  commissioner.  Shares  owned  by  the
agency may not be voted.
21.  Subject  to  the  approval of the commissioner of social services
pursuant to the provisions of title five-A of article six of the  social
services  law,  to  make mortgage loans to non-profit corporations which
are eligible borrowers pursuant to the provisions of the aforesaid title
five-A and to undertake commitments to make any such mortgage loans.
21-a.  Subject  to the approval of the commissioner of social services
of the state of New York pursuant to the provisions of  article  seven-A
of  this  chapter,  to  make  mortgage  loans  to companies incorporated
pursuant to the  provisions  of  such  article  and  the  not-for-profit
corporation  law  and to undertake commitments to make any such mortgage
loans.
22. Subject to the approval of  the  commissioner  of  mental  hygiene
pursuant to the provisions of article seventy-five of the mental hygiene
law,  to make loans to companies incorporated pursuant to the provisions
of article seventy-five of the mental hygiene law and the not-for-profit
corporation law and to undertake commitments to make any  such  mortgage
loans.  No such loan or commitment made on or after June first, nineteen
hundred eighty-two, shall be made primarily for a purpose other than the
refinancing of existing indebtedness pursuant  to  subdivision  four  of
section 75.05 of the mental hygiene law.
23.  Subject to the approval of the commissioner of health pursuant to
the provisions of article twenty-eight-B of the public  health  law,  to
make   mortgage  loans  to  hospital  corporations  which  are  eligible
borrowers as defined in article twenty-eight-B of the public health  law
and to undertake commitments to make any such mortgage loans.
24.  To contract with the state of New York municipal bond bank agency
to render such services as the agency may  deem  appropriate,  including
but  not  limited  to  the  use  of the premises, personnel and personal
property of the agency and to charge the reasonable  costs  thereof  and
provide for the reimbursement to the agency for any expenses necessarily
incurred  by  the agency in carrying out the terms of such contract. Any
such contract shall be subject to the separate approval of the  director
of the budget.
25.  To  contract  with  the  New  York  state medical care facilities
finance agency to market and service any New  York  state  medical  care
facilities  finance  agency  bonds  and  New  York  state  medical  care
facilities finance agency notes approved by the New York  state  medical
care  facilities  finance  agency,  and to contract to render such other
services as the New York state medical care  facilities  finance  agency
may  request,  including  but  not  limited  to the use of the premises,
personnel and personal property  of  the  agency,  and  to  provide  for
reimbursement  to  the  agency  from  the  New  York  state medical care
facilities finance agency for any expenses necessarily incurred  by  the
agency in carrying out the terms of any such contract. Any such contract
shall be subject to the separate approval of the director of the budget.
26.  To  contract  with  the  New York state project finance agency to
market and service any New York state project finance agency  bonds  and
New  York  state  project  finance agency notes approved by the New York
state project finance agency, and  to  contract  to  render  such  other
services  as  the  New  York  state  project finance agency may request,
including but not limited to the use  of  the  premises,  personnel  and
personal property of the agency, and to provide for reimbursement to the
agency  from  the New York state project finance agency for any expenses
necessarily incurred by the agency in carrying out the terms of any such
contract. Any such contract shall be subject to the separate approval of
the director of the budget.
27. To contract with the New York state urban development  corporation
to  market  and service any New York state urban development corporation

bonds and New York state urban development corporation notes approved by
the New York state urban development  corporation  and  to  contract  to
render  such  other  services  as  the  New York state urban development
corporation  may  request,  including  but not limited to the use of the
premises, personnel and personal property of the agency, and to  provide
for   reimbursement  to  the  agency  from  the  New  York  state  urban
development corporation for any expenses  necessarily  incurred  by  the
agency in carrying out the terms of any such contract. Any such contract
shall be subject to the separate approval of the director of the budget.
28.  To  participate in federal programs for the insurance of mortgage
loans including programs which require the  agency  to  share  any  loss
arising  out  of  any  mortgage  loan insured by the federal government,
provided that the agency's share of any such loss shall not exceed fifty
percent thereof.
28-a. To acquire and enter into commitments to acquire  any  federally
guaranteed  security to finance the making of mortgage loans pursuant to
section forty-four-c of this article and to pledge or otherwise use  any
such federally guaranteed security in such manner as the agency deems in
its  best  interest to secure or otherwise provide a source of repayment
on bonds issued to finance the making of such mortgage loans.
29. To do any and all things necessary or convenient to carry out  its
purposes  and  exercise  the  powers expressly given and granted in this
article.
* 29-a. (1) Subject to the provisions of any contract with noteholders
and bondholders (a) to make and contract for the making of loans for the
acquisition, construction or rehabilitation of housing developments  for
the  purpose of providing residential units for occupancy by persons and
families for whom the ordinary operations of private  enterprise  cannot
provide  an  adequate  supply  of  safe, sanitary and affordable housing
accommodations or for residential units located in an area designated as
blighted pursuant to article fifteen or sixteen of the general municipal
law, and (b) to make and to contract for the making of loans  to  or  to
purchase  loans  from  lending institutions for the purpose of financing
loans for such acquisition, construction or rehabilitation. No loans may
be financed pursuant to this subdivision unless the  agency  finds  that
portions  of  the  housing developments are to be occupied by persons or
families of low or moderate income. In determining whether the  portions
of housing developments will be so occupied, the agency may consider and
rely  upon  the  fact  that the housing developments will be occupied by
persons and families in accordance with requirements for the interest on
obligations issued to finance them to be exempt from  taxation  pursuant
to  section  103(b)(3)  or  103(b)(4)(A) of the Internal Revenue Code of
1954, as amended.
(2) With regard to any loan made  pursuant  to  this  subdivision  and
notwithstanding   the  provisions  of,  or  any  regulation  promulgated
pursuant to, the emergency housing rent control law, the local emergency
housing rent control act, or local law  enacted  pursuant  thereto,  the
rent  stabilizaton  law of nineteen hundred sixty-nine, or the emergency
tenant protection act of nineteen seventy-four, the owner of  a  housing
development  otherwise subject to any such law or act, with the approval
of the agency, may establish the initial rent  for  each  dwelling  unit
within  the project. If the initial rents are to be established pursuant
hereto, the agency shall notify occupants of the housing development, if
any, of any such proposed rental establishment  and  offer  to  meet  at
least once with the occupants prior to its approval.
(3)  The  powers  granted by this subdivision may be exercised only if
(a) obligations of the agency have been issued to fund the loan made  or
purchased by the agency and such obligations have received an investment

grade  rating  from  a  recognized  rating  agency; (b) the loan made or
purchased by the agency is fully secured as to principal and interest by
insurance or a commitment to insure issued by  the  state  of  New  York
mortgage agency or by the general credit of a bank, national bank, trust
company,  savings bank, savings and loan association, insurance company,
governmental agency of the United States, or any combination thereof; or
(c) obligations of the agency are purchased by a  bank,  national  bank,
trust  company,  savings  bank,  savings and loan association, insurance
company, governmental agency of the United States, which for purposes of
this subdivision, include the federal home  loan  mortgage  corporation,
the  federal  national  mortgage  association, the governmental national
mortgage association,  and  any  successor  of  the  foregoing,  or  any
wholly-owned subsidiary or combination thereof.
* NB Repealed July 23, 2025
29-b.  To  carry  out  its powers and responsibilities with respect to
permanent housing projects for homeless  families  as  provided  for  in
article three-A of this chapter.
30. (1) Subject to the provisions of any contract with noteholders and
bondholders  (a)  to  make  and contract for the making of loans for the
acquisition, refinancing, construction or rehabilitation of housing  and
non-profit  health  facilities  and  (b) to make and to contract for the
making of loans to or to purchase loans from  lending  institutions  for
the  purposes  of  financing loans for such acquisition, construction or
rehabilitation.
(2) The powers granted by this subdivision may be exercised  only  if:
(a)  the  commissioner  of  health  has  approved  any health and health
related facilities which are in addition to  the  residential  unit  and
housing  portion  of  the  facility,  pursuant  to  section twenty-eight
hundred two of the public health law in any case where the  facility  is
subject  to  the provisions of such section or has approved the facility
according to the guidelines prescribed  in  any  other  case;  (b)  with
respect  to  any portion thereof owned by a for profit owner, the agency
makes  the  finding  required  to  finance  housing  developments  under
paragraph  one  of  subdivision  twenty-nine-a  of this section; (c) (i)
obligations of the agency have been issued to  fund  the  loan  made  or
purchased by the agency and such obligations have received an investment
grade  rating  from a recognized rating agency, or (ii) the loan made or
purchased by the agency is fully secured as to principal and interest by
insurance or a commitment to insure issued by  the  state  of  New  York
mortgage agency or by the general credit of a bank, national bank, trust
company,  savings bank, savings and loan association, insurance company,
the college construction loan insurance association,  the  student  loan
marketing  association,  or  a governmental agency of the United States;
and (d) approval from the applicable state agencies as to the  need  for
the project has been obtained prior to joint financing.
31.  To  and  shall  develop, promote and ensure that, where possible,
minority groups which traditionally have been disadvantaged,  and  women
are   afforded  equal  opportunity  for  contracts  in  connection  with
development and construction contracts for developments, facilities  and
projects  financed by the issuance of bonds, notes and other obligations
of the agency.
32. To transfer funds in an amount to be agreed upon, at  the  request
of the director of the division of the budget, to the state treasury for
deposit  to  the general fund as an expense of the agency. Such transfer
shall be made in such amounts and at  such  times  as  specified  in  an
agreement  or agreements executed between the agency and the director of
the budget with copies to be provided to the chairman  of  the  assembly

ways  and  means  committee  and  the  chairman  of  the  senate finance
committee.