2023 New York Laws › PVH - Private Housing Finance › Article 3 - New York State Housing Finance Agency › 42 - Definitions.

§  42.  Definitions.  As used or referred to in this article, unless a
  different meaning clearly appears from the context:
1. "Agency" shall mean the corporate governmental  agency  created  by
  section forty-three of this article.
1-a.   "Amortized  value"  shall  mean,  when  used  with  respect  to
  securities purchased at a premium above or a  discount  below  par,  the
  value  as of any given date obtained by dividing the total amount of the
  premium or discount at which  such  securities  were  purchased  by  the
  number  of  days remaining to maturity on such securities at the time of
  such purchase and by multiplying the amount so calculated by the  number
  of  days  having  passed since the date of such purchase; and (a) in the
  case of securities purchased at a premium, by deducting the product thus
  obtained from the purchase price, and (b)  in  the  case  of  securities
  purchased  at  a  discount,  by  adding the product thus obtained to the
  purchase price.
2. "Bonds" and "notes" shall mean bonds and notes respectively, issued
  by the agency pursuant to this article.
3. "Equity bonds" and  "equity  notes"  shall  mean  bonds  and  notes
  respectively,  issued  by  the  agency  pursuant  to subdivision four of
  section forty-six of this article.
4. "Equity loan" shall mean a loan made by  the  agency  to  a  mutual
  company,  mutual  housing  company,  mutual  redevelopment  company,  or
  housing development fund company which  is  organized  pursuant  to  the
  business  corporation  law  and  article  eleven  of this chapter, in an
  amount not to exceed nine per centum of project cost and not  in  excess
  of  the  aggregate  face value of home owners purchase notes received by
  such  mutual  company,  mutual  housing  company,  mutual  redevelopment
  company,  or  housing  development fund company, as the case may be, for
  the issuance of shares.
4-a. "Federally-aided mortgage loan" shall mean a loan  secured  by  a
  first mortgage lien on the real property of which a project consists and
  the  personal  property  attached  to  or  used  in  connection with the
  construction, acquisition, reconstruction,  rehabilitation,  improvement
  or operation of the project, made or financed by the agency to the owner
  of  such  property,  which  loan is insured or co-insured by the federal
  government or in connection  with  which  there  has  been  assigned  or
  pledged  to  the agency the right to receive housing assistance payments
  to be made by the federal  government  under  a  contract  entered  into
  pursuant  to  section eight of the United States housing act of nineteen
  hundred thirty-seven, as amended  or  supplemented,  provided,  however,
  that  such  term shall not include mortgage loans made by the agency and
  insured by the federal government pursuant to subsection (f) of  section
  two  hundred  twenty-three of such act, to refinance mortgage loans made
  by the agency or the state prior to the  first  day  of  June,  nineteen
  hundred seventy-nine or theretofore or thereafter, amended, modified, or
  increased or loans provided for pursuant to subdivision twenty-nine-a of
  section  forty-four  of  this  article. Where all or part of the cost of
  acquiring any real property included in the project is to be financed by
  a federally-aided mortgage loan the term "owner" shall  mean  the  owner
  upon  such acquisition. Nothing contained herein shall limit or prohibit
  the agency  from  consenting  to  the  modification  of  any  instrument
  executed  in  connection  with a federally-aided mortgage loan, provided
  that such modification will not  materially  reduce  the  value  of  the
  security for such mortgage loan.
4-b. "Federally guaranteed security" means any security, investment or
  evidence  of  indebtedness  which  is  issued  pursuant  to the national
  housing act or any successor provision of  law,  as  amended,  which  is
  either,  directly or indirectly, insured or guaranteed in full as to the

  repayment of principal and interest by the United States of  America  or
  any instrumentality thereof.
5. "Home owners purchase note" shall mean home owners purchase note as
  defined in article one of this chapter.
5-a.  "Insured  mortgage  reserve fund" shall mean the fund created by
  section fifty-seven of this chapter.
6. "Mortgage loan" shall mean a loan made by the agency to  a  company
  in an amount not to exceed ninety per centum of the project cost, except
  that  in the case of a mutual company, an urban rental company which has
  not been aided by any loan  made  prior  to  September  first,  nineteen
  hundred  sixty-eight,  or  a non-profit company incorporated pursuant to
  the provisions of the not-for-profit corporation law  and  this  chapter
  for  the  purpose  of  providing housing for staff members, employees or
  students of a college, university, hospital or  child  care  institution
  and  their  immediate families or in the case of a community development
  corporation the loan shall not exceed  ninety-five  per  centum  of  the
  project  cost  and  in  the  case  of  a non-profit company incorporated
  pursuant to the provisions of the  not-for-profit  corporation  law  and
  this   chapter  for  the  purpose  of  providing  housing  for  aged  or
  handicapped persons of low income  or  in  the  case  of  a  low  income
  non-profit  housing  company the loan shall not exceed the total project
  cost, and secured by a first mortgage lien on the real property of which
  the project consists and the personal property attached to  or  used  in
  connection   with   the   construction,   acquisition,   reconstruction,
  rehabilitation, improvement or  operation  of  the  project.  "Company,"
  "mutual  company,"  "urban rental company," "project cost" and "project"
  shall mean company, mutual company, urban rental company,  project  cost
  and project, respectively, as defined in article two of this chapter.
6-a.  "Mortgage  loan"  shall also mean a loan made by the agency to a
  community senior citizens center and services company in an  amount  not
  to exceed the total project cost of a project undertaken by such company
  pursuant  to  article  seven-A  of  this chapter, and secured by a first
  mortgage lien on the real property of which the project consists and the
  personal  property  attached  to  or  used  in   connection   with   the
  construction,  acquisition,  reconstruction, rehabilitation, improvement
  or operation of the project.
6-b. "Mortgage loan" shall also mean a loan made by the agency  to  an
  eligible  borrower  as  defined  in article twenty-eight-B of the public
  health law in an amount not to exceed the total  hospital  project  cost
  and  secured  by a first mortgage lien on the real property of which the
  hospital project consists and the personal property attached to or  used
  in   connection  with  the  construction,  acquisition,  reconstruction,
  rehabilitation, improvement or operation of the hospital  project.  Such
  loan  may  be  further  secured  by such a lien upon other real property
  owned by the eligible borrower. Notwithstanding the foregoing provisions
  of this subdivision or any other  provisions  of  this  article  to  the
  contrary,  any  personal  property  may be excluded from the lien of the
  mortgage provided  (a)  the  commissioner  of  health  finds  that  such
  property  is  not  essential  for  the  rendition  of  required hospital
  services as such term is defined in article twenty-eight of  the  public
  health  law,  and  (b)  the agency consents to such exclusion. "Hospital
  project cost" and "hospital project" shall mean  hospital  project  cost
  and hospital project, respectively, as defined in article twenty-eight-B
  of the public health law.
6-c.  "Mortgage  loan"  shall also mean a loan made by the agency to a
  limited-profit  nursing  home  company  incorporated  pursuant  to   the
  provisions  of  article  twenty-eight-A  of  the public health law in an
  amount not to exceed ninety-five per centum of the nursing home  project

  cost,  and in the case of a non-profit nursing home company incorporated
  pursuant to the provisions  of  article  twenty-eight-A  of  the  public
  health  law  and  the not-for-profit corporation law in an amount not to
  exceed  the  total  nursing  home  project  cost, and secured by a first
  mortgage lien on the real property of which  the  nursing  home  project
  consists  and  the  personal  property attached to or used in connection
  with  the  construction,  acquisition,  reconstruction,  rehabilitation,
  improvement  or  operation  of the nursing home project. Notwithstanding
  the foregoing provisions of this subdivision or any other  provision  of
  this article to the contrary, any personal property may be excluded from
  the  lien  of the mortgage provided (a) the commissioner of health finds
  that such property is not essential for the nursing home project as such
  term is defined in article twenty-eight-A of the public health law,  and
  (b)  the  agency  consents  to  such  exclusion. "Nursing home company",
  "limited-profit  nursing  home  company",   "non-profit   nursing   home
  company",  "nursing  home project cost" and "nursing home project" shall
  mean  nursing  home  company,  limited-profit  nursing   home   company,
  non-profit  nursing  home company, nursing home project cost and nursing
  home project, respectively, as defined in article twenty-eight-A of  the
  public health law.
6-d.  "Mortgage  loan"  shall also mean a loan made by the agency to a
  company incorporated pursuant to the provisions  of  the  not-for-profit
  corporation  law  in  an amount not to exceed the total community mental
  health services project cost  or  community  developmental  disabilities
  services  project cost, and secured by a first mortgage lien on the real
  property of which  the  community  mental  health  services  project  or
  community  developmental  disabilities services project consists and the
  personal  property  attached  to  or  used  in   connection   with   the
  construction,  acquisition,  reconstruction, rehabilitation, improvement
  or  operation  of  the  community  mental  health  services  project  or
  community developmental disabilities services project. "Community mental
  health services company," "community developmental disabilities services
  company,"  "community  mental  health services project cost," "community
  developmental disabilities services  project  cost,"  "community  mental
  health  services  project"  and  "community  developmental  disabilities
  services project" shall mean community mental health  services  company,
  community  developmental disabilities services company, community mental
  health  services  project  cost,  community  developmental  disabilities
  services  project  cost,  community  mental  health services project and
  community developmental disabilities services project, respectively.
6-e. "Mortgage loan" shall also mean a loan made by the  agency  to  a
  non-profit corporation which is an eligible borrower as defined in title
  five-A  of  article  six  of the social services law in an amount not to
  exceed the total youth facilities project cost, and secured by  a  first
  mortgage lien on the real property of which the youth facilities project
  consists  and  the  personal  property attached to or used in connection
  with  the  construction,  acquisition,  reconstruction,  rehabilitation,
  improvement  or  operation  of  the  youth  facilities  project.  "Youth
  facilities project cost" and "youth facilities project" shall mean youth
  facilities project cost and youth facilities project,  respectively,  as
  defined in title five-A of article six of the social services law.
6-f. "Mortgage loan" shall also mean an instrument or instruments made
  by  a  company  to  evidence  residual indebtedness, which instrument or
  instruments are secured by a  mortgage  on  the  real  property  of  the
  project.
* 6-g.  "Mortgage  loan"  shall  also  mean  a loan secured by a first
  mortgage lien on the real property of which a project consists  and  the
  personal   property   attached   to  or  used  in  connection  with  the

  construction or rehabilitation of the project, made or financed  by  the
  agency to the owner of such property, which property a municipal housing
  authority,  constituted,  created  or  established  pursuant  to article
  thirteen  of  the  public  housing  law, has agreed to purchase upon the
  completion of such construction or rehabilitation.
* NB There are 2 sb 6-g's
* 6-g. "Mortgage loan" shall also mean a loan made by the agency to  a
  mutual  housing  company  for  the  purpose  of refinancing the existing
  mortgage indebtedness of such company in an amount  not  to  exceed  the
  cost  of  refinancing the existing mortgage indebtedness of such company
  and necessary funds for the replacement, improvement and  rehabilitation
  of the project owned by such company, all costs incurred by such company
  relating  to  the  refinancing  of  the  existing  mortgage indebtedness
  including amounts required to establish escrow  accounts,  reserves  and
  working  capital  as determined by the agency, and such other amounts as
  are permitted by article four of this chapter, and secured  by  a  first
  mortgage lien on the real property of which the project consists and the
  personal   property   attached   to  or  used  in  connection  with  the
  construction, acquisition, reconstruction,  rehabilitation,  improvement
  or operation of the project.
* NB (Operative pending ruling by Internal Revenue Service)
* NB There are 2 sb 6-g's
7.   "Mutual   company",   "mutual   housing   company"   and  "mutual
  redevelopment company" shall mean mutual company, mutual housing company
  and mutual redevelopment company as defined in articles  two,  four  and
  five, respectively, of this chapter.
8.  "Non-profit company" shall mean a company incorporated pursuant to
  the provisions of the not-for-profit corporation law and article two  of
  this  chapter  for  the  purpose of providing housing for staff members,
  employees or students of a college, university, hospital or  child  care
  institution  and  their  immediate  families  or for handicapped or aged
  persons of low income or housing for persons of low  income  or  housing
  for families of low income as defined under article two of this chapter.
9.  "Community  development  corporation"  shall  mean  a  corporation
  incorporated  pursuant  to  the   provisions   of   the   not-for-profit
  corporation law and article six-A of this chapter.
10.  "Non-profit  project  bonds" and "non-profit project notes" shall
  mean bonds and notes respectively, issued by the agency for the purposes
  of making mortgage loans to mutual companies,  non-profit  companies  or
  community  development  corporations  paying  interest on such bonds and
  notes, establishing reserves to secure such bonds and notes, and  paying
  of  all  other  expenditures  of the agency incident to and necessary or
  convenient for the making of such mortgage loans.
11. "Hospital and  nursing  home  project  bonds"  and  "hospital  and
  nursing  home  project  notes"  shall mean bonds and notes respectively,
  issued by the agency for  the  purposes  of  making  mortgage  loans  to
  hospital corporations which are eligible borrowers as defined in article
  twenty-eight-B  of  the  public  health  law  or nursing home companies,
  paying interest on such bonds and notes, establishing reserves to secure
  such bonds and notes, and paying of all other expenditures of the agency
  incident to and necessary or convenient for the making of such  mortgage
  loans.
12.  "Urban  rental  project  bonds"  and "urban rental project notes"
  shall mean bonds and notes respectively,  issued  by  the  agency  after
  August  thirty-first,  nineteen hundred sixty-eight, for the purposes of
  making mortgage loans to urban rental companies, paying interest on such
  bonds and notes, establishing reserves to secure such bonds  and  notes,

  and  paying  of  all  other  expenditures  of the agency incident to and
  necessary or convenient for the making of such mortgage loans.
13.  "Youth  facilities  project  bonds" and "youth facilities project
  notes" shall mean bonds and notes, respectively, issued  by  the  agency
  for  the  purposes  of  making mortgage loans to non-profit corporations
  which are eligible borrowers as defined in title five-A of  article  six
  of  the  social  services  law, paying interest on such bonds and notes,
  establishing reserves to secure such bonds and notes, and paying of  all
  other expenditures of the agency incident to and necessary or convenient
  for the making of such mortgage loans.
14.  "Community  mental health services and developmental disabilities
  services project  bonds"  and  "community  mental  health  services  and
  developmental  disabilities services project notes" shall mean bonds and
  notes, respectively, issued by the agency for  the  purposes  of  making
  mortgage  loans to companies incorporated pursuant to the not-for-profit
  corporation law, paying interest on such bonds and  notes,  establishing
  reserves  to  secure  such  bonds  and  notes,  and  paying of all other
  expenditures of the agency incident to and necessary or  convenient  for
  the making of such mortgage loans.
14-a. "Community mental health services and developmental disabilities
  services  project  revenue  bonds" and "community mental health services
  and developmental disabilities services  project  revenue  notes"  shall
  mean bonds and notes, respectively, issued by the agency for the purpose
  of  making  mortgage  loans  to  companies  incorporated pursuant to the
  not-for-profit corporation law and article seventy-five of  title  E  of
  the  mental  hygiene  law,  paying  interest  on  such  bonds and notes,
  establishing reserves to secure such bonds and notes, and paying of  all
  other expenditures of the agency incident to and necessary or convenient
  for the making of such mortgage loans.
15.  "Community senior citizens services project bonds" and "community
  senior citizens services project notes"  shall  mean  bonds  and  notes,
  respectively,  issued  by the agency for the purposes of making mortgage
  loans  to  companies  incorporated  pursuant   to   the   not-for-profit
  corporation  law and article seven-A of this chapter, paying interest on
  such bonds and notes, establishing reserves to  secure  such  bonds  and
  notes,  and  paying  of all other expenditures of the agency incident to
  and necessary or convenient for the making of such mortgage loans.
16. "State of New York municipal bond bank agency bonds" and "State of
  New York municipal bond  agency  notes"  shall  mean  bonds  and  notes,
  respectively, issued by the state of New York municipal bond bank agency
  for the purposes of purchasing municipal bonds from municipalities.
17.  "New York state medical care facilities finance agency bonds" and
  "New York state medical care facilities finance agency notes" shall mean
  bonds and notes, respectively, issued by the New York state medical care
  facilities finance agency for the corporate purposes  of  the  New  York
  state medical care facilities finance agency.
18.  "New York state project finance agency bonds" and "New York state
  project finance agency notes" shall mean bonds and notes,  respectively,
  issued  by  the  New York state project finance agency for the corporate
  purposes of the New York state project finance agency.
19.  "Residual   indebtedness."   Residual   indebtedness   shall   be
  indebtedness  of  a  company  in an amount equal to the unpaid principal
  balance due on the original mortgage plus all interest  accrued  thereon
  at  such  time as the mortgage is refinanced less an amount equal to the
  principal amount, when made, of the  mortgage  insured  by  the  federal
  government  in  connection  with  the  refinancing  of  a  project. Such
  indebtedness shall be secured by a mortgage which may be subordinate  to
  the  lien of any mortgage loan insured by the federal government and may

  contain such terms and conditions not inconsistent with this article  as
  may  be  approved  by  the  commissioner,  and  as  the  agency may deem
  necessary  or  desirable  to  secure  the  repayment  of  such  residual
  indebtedness.
*  20.  "Revenue  housing bonds" shall mean bonds issued by the agency
  after May thirty-first, nineteen hundred seventy-six for the purpose  of
  making  mortgage  loans  to  mutual  companies, non-profit companies, or
  urban rental companies,  funding  non-profit  project  notes  and  urban
  rental  project  notes  issued  for  the purpose of making such mortgage
  loans, paying interest on such bonds, establishing  reserves  to  secure
  such  bonds  and paying all other expenditures of the agency incident to
  and necessary or convenient for the making of such mortgage loans or the
  funding of such notes.
  * NB (Effective until ruling by Internal Revenue Service)
* 20. "Revenue housing bonds" shall mean bonds issued  by  the  agency
  after  May thirty-first, nineteen hundred seventy-six for the purpose of
  making mortgage loans to mutual  companies,  mutual  housing  companies,
  non-profit  companies,  or  urban  rental  companies, funding non-profit
  project notes and urban rental project notes issued for the  purpose  of
  making  such mortgage loans, paying interest on such bonds, establishing
  reserves to secure such bonds and paying all other expenditures  of  the
  agency  incident  to  and necessary or convenient for the making of such
  mortgage loans or the funding of such notes.
  * NB (Effective pending ruling by Internal Revenue Service)
21. "Special revenue housing coverage reserve funds"  shall  mean  the
  funds created by section fifty-eight of this article.
22.  "Bond  reserve  insurance  fund"  shall  mean the fund created by
  section fifty-nine of this article.
* 23. "Lending institution" shall mean any bank or  trust  company  or
  savings  bank,  or any corporation, association or other entity which is
  owned or controlled by any one or more such bank  or  trust  company  or
  savings bank, or any savings and loan association, credit union, federal
  national mortgage association approved mortgage banker, national banking
  association, federal savings and loan association, federal savings bank,
  public  pension  fund,  pension  fund  with  assets  over  fifty million
  dollars, insurance company, federal  credit  union  or  other  financial
  institution   or   governmental   agency  of  the  United  States  which
  customarily makes, purchases, holds,  insures  or  services  residential
  mortgages.
* NB Effective until July 23, 2025
* 23.  "Lending  institution"  shall mean any bank or trust company or
  savings bank, or any corporation, association or other entity  which  is
  owned  or  controlled  by  any one or more such bank or trust company or
  savings bank, or any savings  and  loan  association,  industrial  bank,
  credit  union,  federal  national mortgage association approved mortgage
  banker,  national  banking  association,  federal   savings   and   loan
  association,  pension  fund,  insurance company, federal credit union or
  other financial institution or governmental agency of the United  States
  which  customarily  makes,  purchases,  holds  or  services  residential
  mortgages.
* NB Effective July 23, 2025
* 24. "Housing development" shall mean a specific work or improvement,
  whether or not to effectuate all or any part of a plan,  and  consisting
  of  five  or  more residential units, and including the lands, buildings
  and improvements acquired, owned, constructed, managed  or  operated  to
  provide  such  units  and  such  incidental  and appurtenant commercial,
  recreation, cultural, communal, dining, medical and  nursing  treatment,
  day  care  or  residential child care and community facilities as may be

  approved by the agency. As used in  connection  with  the  term  housing
  development, the term residential unit shall refer to units suitable for
  residential  use  or  accommodations included within the term housing as
  defined in subdivision nine of section twelve of this chapter.
* NB Repealed July 23, 2025
25.  "Housing  and  non-profit  health facility" shall mean a specific
  work or improvement, whether or not to effectuate all or any part  of  a
  plan  consisting  of five or more residential units, and at the election
  of the agency such additional health and health  related  facilities  as
  the   agency  may  approve;  and  including  the  lands,  buildings  and
  improvements  acquired,  owned,  constructed,  managed  or  operated  to
  provide  such  units  and  health, or health related facilities and such
  incidental and appurtenant commercial, recreation,  cultural,  communal,
  dining,  parking, day care or residential child care, senior citizen and
  community facilities as may be approved by the agency  acquired,  owned,
  constructed,   rehabilitated,   improved,   managed  or  operated  by  a
  non-profit  company  except  that  any  portion  thereof   meeting   the
  definition of a housing development set forth in subdivision twenty-four
  hereof  may  be  separately  owned by a for profit owner approved by the
  agency. As used in connection  with  the  term  housing  and  non-profit
  health facility, the term residential unit shall refer to units suitable
  for  residential  use or accommodations included within the term housing
  as defined in subdivision nine of section twelve of  this  chapter,  and
  the  term  non-profit company shall mean a company incorporated pursuant
  to the provisions of the not-for-profit corporation law for the  purpose
  of  providing housing for staff members, employees, students or users of
  a hospital, health, health related facility and their immediate families
  or for the purpose of providing a hospital, health,  or  health  related
  facility.