2023 New York Laws › PVH - Private Housing Finance › Article 4 - Limited Dividend Housing Companies › 83 - Execution of Housing Company Projects.

§   83.   Execution  of  housing  company  projects.  No  building  or
  construction shall be undertaken by  any  housing  company  without  the
  approval of the commissioner. Such approval shall be conditioned upon:
1.  The  submission of a plan in such form and with such assurances as
  the commissioner may prescribe, to raise at least twenty per  centum  of
  the  actual cost of the lands and improvements through investment in the
  capital of such  housing  company  together  with  the  sale  of  income
  debentures, where provided for by such plan; and to raise the balance by
  mortgage  bonds  which  shall not exceed eighty per centum of the actual
  cost of the said project. The  plan  may  provide  for  the  raising  of
  working  capital  in an amount to be approved by the commissioner not to
  exceed three per centum of the actual cost  through  investment  in  the
  capital  and  sale of income debentures of the housing company. Wherever
  reference is made in this article to cost of projects, or  of  buildings
  and  improvements  in  projects,  such  cost  shall  include charges for
  financing and supervision approved  by  the  commissioner,  including  a
  reasonable  proportion  to be fixed by the commissioner, of the expenses
  of the commissioner, applicable to the examination  and  supervision  of
  the  project,  and  carrying charges during construction required in the
  project, including interest on  borrowed,  and  where  approved  by  the
  commissioner, on invested capital. Notwithstanding the provisions of any
  other  general, special or local laws, all moneys payable by the project
  to reimburse  the  commissioner  for  his  expenses  applicable  to  the
  examination and supervision of the project during construction as herein
  provided shall be paid to the executive department.
2. The acceptance of a designee of the commissioner as a member of the
  board  of  directors  of said housing company. In the case of all mutual
  companies an additional director shall be designated by the commissioner
  at the creation of the company and shall serve from  the  time  of  such
  designation  at least until a board of directors has been elected by the
  tenants entitled to occupancy in the project by reason of  ownership  of
  shares  in  such  company.  Such directors appointed by the commissioner
  need not be stockholders or  meet  other  qualifications  which  may  be
  prescribed  by  the  certificate of incorporation or the by-laws. In the
  absence of fraud or bad faith the director appointed by the commissioner
  shall not be personally liable for the debts, obligations or liabilities
  of the corporation.
3. The approval by the commissioner of the plans,  specifications  and
  estimated  costs  of  the  proposed housing facilities in respect to the
  conformity thereof to reasonable standards of health, sanitation, safety
  and provision for light and air.
4. When required by the commissioner, and except  in  the  case  of  a
  housing  company  which  is  a  subsidiary  of  the New York state urban
  development corporation, created by the New York state urban development
  corporation act, the designation by the  commissioner  with  respect  to
  each  project  approved  by  him  of a trustee, which shall be a banking
  corporation authorized to perform  trust  functions,  and  such  trustee
  shall  receive moneys received by the housing company as its capital, or
  as proceeds of its mortgage bonds, notes or income debentures  and  make
  payment  therefrom  for  the  acquisition  of  land, the construction of
  improvements and other items entering into cost of land and improvements
  upon presentation of draft, check or order signed by a proper officer or
  designee  of  the  housing  company  and  countersigned  by   the   said
  commissioner  or  a person designated by him for said purpose. Any funds
  remaining in the custody of said trustee after  the  completion  of  the
  said  project and payment or arrangement in a manner satisfactory to the
  commissioner for payment in full therefor shall be paid to  the  housing
  company.
5. No such project shall be approved in contravention of any planning,
  zoning,   sanitary   and   building  laws,  ordinances  and  regulations
  applicable to the municipality in which the project is situated.
6. Notwithstanding the provisions of subdivision five hereof, no state
  urban  development  corporation  project  shall  be  approved  unless it
  complies  with  the  requirements  of  local  laws,  ordinances,  codes,
  charters  or regulations applicable to the construction, reconstruction,
  rehabilitation, alteration or improvement of such project, except  where
  the  state  urban development corporation, in its discretion, finds such
  compliance not feasible or practicable, in which event no  such  project
  shall  be approved unless it complies with the requirements of the state
  building construction  code,  formulated  by  the  state  building  code
  council pursuant to article eighteen of the executive law, applicable to
  such   construction,   reconstruction,   rehabilitation,  alteration  or
  improvement. No county, city, town or village shall have power to modify
  or change the drawings, plans or specifications  for  the  construction,
  reconstruction,  rehabilitation,  or  improvement of any such project or
  the construction, plumbing, heating, lighting or other mechanical branch
  of work necessary to complete the work in question, nor to require  that
  any  person, firm or corporation employed on any such work shall perform
  any such work in any other or different manner  than  that  provided  by
  such plans and specifications, nor to require that any such person, firm
  or  corporation  obtain  any  other  or  additional authority, approval,
  permit or certificate, from such county, city,  town  or  village  as  a
  condition  of  doing  such  work,  nor  shall  any condition whatever be
  imposed by any such county, city, town or village  in  relation  to  the
  work  being  done, and the doing of any such work by any person, firm or
  corporation in accordance  with  the  terms  of  such  drawings,  plans,
  specifications  or  contracts  shall  not  subject  said person, firm or
  corporation to any liability or penalty, civil or criminal,  other  than
  as  may  be  stated  in  such  contracts  or  incidental  to  the proper
  enforcement thereof; nor shall any county, city, town  or  village  have
  power  to  require  that  any  subsidiary  of  the  New York state urban
  development  corporation,  or  any  lessee  therefrom  or  successor  in
  interest  thereto,  obtain  any other or additional authority, approval,
  permit, certificate or certificate of occupancy from such county,  city,
  town  or village as a condition of owning, using, maintaining, operating
  or  occupying  any   project   acquired,   constructed,   reconstructed,
  rehabilitated  or  improved by any such subsidiary of the New York state
  urban development corporation.