2023 New York Laws › PVH - Private Housing Finance › Article 11 - Housing Development Fund Companies › 576-D - Master Servicing Agreement.

§  576-d.  Master  servicing  agreement. 1. The commissioner is hereby
authorized to use the monies held in the  housing  development  fund  to
make  advances  to  a  local  loan administrator that has entered into a
written  master  servicing  agreement  prescribed  by  the  commissioner
pursuant to subdivision two of this section.
2.  The  commissioner,  in  consultation  with  the comptroller, shall
prescribe  a  master  servicing  agreement  to  be   executed   by   the
commissioner and local loan administrators. Such agreement shall provide
that:  (a) any advances made to a local loan administrator shall be used
solely for the purpose of providing loans to agricultural producers  for
undertaking  farmworker  housing projects; (b) the total amount of loans
made to any single agricultural producer shall not  exceed  two  hundred
thousand  dollars  per  annum; (c) the term of any loan shall not exceed
ten years and equal payments of principal  payable  no  less  frequently
than  annually shall be required to be made on such loan during the term
such loan is  outstanding  which  payments  will  liquidate  the  entire
principal  balance  of  the  loan  over  its  term;  (d)  the local loan
administrator is required to pay to the commissioner  for  deposit  into
the  housing development fund all repayments including interest, if any,
received from any agricultural producers on account of such loan, except
for  that  portion  permitted  to  be  retained  by   the   local   loan
administrator  as  a fee pursuant to the master servicing agreement. The
master servicing agreement shall also set forth: (i)  the  form  of  any
note  and security agreement to be executed by the agricultural producer
in connection with any loan, which shall include a provision that use of
the loan to provide housing for a family member of the borrower  or  its
principals  shall  constitute  a  default  under  the  loan and security
agreement; (ii) the rate of interest, if any, to be charged on any loan;
(iii)  the  amount  of  any  fee  to  be  retained  by  the  local  loan
administrator  for  servicing  any  loan;  (iv)  the form of application
required to be completed by an agricultural producer for any  loan;  (v)
the  form  of  requisition and certification to be required from a local
loan administrator to obtain an advance of funds from the  commissioner;
(vi) any other conditions to be imposed upon an agricultural producer as
a  condition  of  receiving  a  loan;  (vii)  the responsibilities to be
performed by the local loan administrator in connection with  reviewing,
approving  and  servicing the loan and the circumstances under which the
commissioner  may  terminate  a  master  servicing   agreement;   (viii)
conditions  necessary  to insure prompt closing on loans for which funds
are advanced, including payment of  interest  of  funds  from  the  time
advanced  until  utilized;  and  (ix)  such  other  requirements  as the
commissioner may from time to time establish by  rules  and  regulations
consistent with the purposes of this section.
3. (a) The commissioner shall, subject to the availability of funds as
appropriated  by  the  legislature, advance from the housing development
fund to a local loan administrator the amount of funds requested in  any
requisition  within  fifteen  business  days after receipt of all of the
following: a completed requisition for an advance of  funds;  copies  of
any   applications  and  any  supporting  documentation  to  which  such
requisition  pertains;  and  a  certification  from   the   local   loan
administrator  with respect to such requisition in addition to any other
representation  and  statement  required  by   the   commissioner.   The
certification  from  the  local loan administrator shall state that: (i)
the loan administrator has performed its responsibilities in  connection
with  review  and  approval  of  applications  to which such requisition
pertains, (ii) to the best of the local loan  administrator's  knowledge
the  loans,  to  which  the  advances  pertain,  comply  with the master
servicing agreement and the provisions of this section,  and  (iii)  the

borrowers  have  demonstrated  their  ability  to  make  the  repayments
required under the loan. In the event that funds are  not  available  or
the   commissioner  determines  that  the  requisition,  application  or
certification   is   defective,  it  shall  so  notify  the  local  loan
administrator  within  fifteen  business  days  after  receipt  of   the
requisition.
(b)  The  commissioner  shall establish criteria for prioritizing loan
applications in  the  event  that  the  requisitions  submitted  to  the
commissioner  by one or more local loan administrators exceed the amount
then available for the purposes of this  section.  Such  criteria  shall
give  a  priority  to housing for farmworkers and take into account: (i)
whether the farmworker housing project to which the application pertains
is  for  the  purpose  of  bringing  non-conforming  accommodations   in
compliance  with  the provisions of the state sanitary code or the state
fire prevention and building code; (ii) whether the  farmworker  housing
project  to  which  the  application pertains is the most cost effective
approach  to  enable  the  agricultural   producer   to   construct   or
rehabilitate  dwelling accommodations for farmworkers; (iii) whether the
agricultural producer making application lacks the  financial  resources
to  undertake  the  farmworker  housing project without obtaining a loan
pursuant  to  this  section;  and  (iv)  such  other  factors   as   the
commissioner deems relevant. In applying the criteria to be utilized for
prioritizing  loans,  the  commissioner shall be entitled to rely on the
information contained in the copies of the applications  submitted  with
the requisition.