New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter I - GENERAL REGULATIONS OF THE SUPERINTENDENT › Part 62 - Investments In Housing And Urban Development Projects › Section 62.1 - Cooperative apartment housing projects of redevelopment companies

Current through Register Vol. 46, No. 28, July 10, 2024
Except as the Banking Board shall otherwise provide, savings
				  banks may sponsor and finance cooperative apartment housing projects undertaken
				  by redevelopment companies organized pursuant to Private Housing Finance Law,
				  section
				  103, to the extent and on the conditions
				  hereinafter prescribed:
(a)
				Sponsorship of a cooperative apartment housing redevelopment project. One or
				more savings banks may sponsor a cooperative apartment housing redevelopment
				project for the purpose of rehabilitating an area which shall be found to be
				substandard and insanitary. The area to be rehabilitated shall be located in a
				municipality and, if such savings bank is the only sponsor, in a county in
				which an office of the sponsoring savings bank is located. If there is more
				than one sponsoring savings bank, such municipality shall be located in the
				banking district in which the sponsoring savings banks owning 50 percent or
				more of the stock and obligation of the redevelopment company have their
				principal offices. The term municipality as used in this section shall be
				deemed to refer to a city, town or incorporated village. The project to be
				undertaken by such company may be undertaken independently or in conjunction
				with or as a portion of a slum clearance project under title I of an act of
				Congress entitled "Housing Act of 1949", as amended, or under any State or
				municipally-sponsored slum clearance program.
(b) Agreement to be filed with
				superintendent. No investment shall be made by any savings bank in the stock
				and obligations of a redevelopment company unless such company shall have filed
				with the superintendent its written agreement subjecting itself to the
				supervision of the Banking Department, submitting to periodic examinations by
				the Banking Department at such times and in such manner as the superintendent
				shall provide and agreeing to pay the charges for such examinations assessed
				against it by the superintendent in the same manner as in it were a banking
				organization organized under the laws of New York. The agreement respecting
				supervision shall terminate when the stock and junior obligations of the
				redevelopment company have been disposed of and the investment by the savings
				bank or banks in the redevelopment company consists solely of obligations
				secured by a first mortgage on the property of the redevelopment
				company.
(c) Authorization to
				subscribe to shares of redevelopment company. A saving bank or banks sponsoring
				a redevelopment cooperative apartment housing project are hereby authorized to
				subscribe to the shares of such redevelopment company for a total purchase
				price not exceeding $10,000, and to advance to such company the funds required
				for the development of the plan of the project undertaken by such company upon
				issuance to the bank or banks by the company of income debenture certificates
				in such aggregate principal amount equal to the aggregate funds from time to
				time advanced by the bank or banks for planning purposes. In no event shall the
				aggregate amount of such advances for planning funds exceed the greater of:
(1) $100,000; or
(2) one percent of the estimated cost of the
				project. The aggregate of such advances to such company shall not exceed
				$400,000 without the prior written approval of the superintendent.