S. 2985--A 2
providing for other costs of construction for the development of private
and multiple dwelling housing accommodations.
c. Any loan made in accordance with this section shall be secured by a
note and mortgage upon the property improved, OTHER THAN ANY SUCH PROP-
ERTY TITLE TO WHICH IS HELD BY THE MUNICIPALITY or, in the case of a
condominium, a note and mortgage upon each of the [housing accommo-
dations] CONDOMINIUM UNITS aided by such loan, or in the case of a coop-
erative housing corporation, a note and mortgage upon the economic
interest in such corporation of each tenant-shareholder aided by such
loan, or upon the property improved, OTHER THAN ANY SUCH PROPERTY TITLE
TO WHICH IS HELD BY THE MUNICIPALITY, or upon both such economic inter-
est or property; provided, however, that all or part of any such loan
may be unsecured if necessary to satisfy the requirements of any partic-
ipating lender, AND, PROVIDED FURTHER, THAT THE LIEN CREATED BY THE NOTE
AND MORTGAGE MAY BE RECORDED IN AN EQUAL OR SUBORDINATE POSITION, OR
SUBSEQUENTLY MADE EQUAL OR SUBORDINATE, TO A LIEN RECORDED BY ANY
PARTICIPATING LENDER AGAINST SUCH PROPERTY. Such loan shall be repaid
over such period as the agency shall determine.
g. For purposes of this [section] ARTICLE, (I) the term "mortgage"
shall include any pledge or assignment of shares or assignment of a
proprietary lease in a cooperative housing corporation where such pledge
or assignment is intended as security for the performance of an obli-
gation and which imposes a lien on or affects title to such shares or
such proprietary lease; AND (II) THE TERM "OWNER" SHALL MEAN AN INDIVID-
UAL, PARTNERSHIP, CORPORATION OR OTHER ENTITY, INCLUDING A NON-PROFIT
COMPANY, A MUTUAL COMPANY, OR A HOUSING DEVELOPMENT FUND COMPANY, HAVING
RECORD OR BENEFICIAL TITLE IN FEE SIMPLE TO REAL PROPERTY OR THE LESSEE
THEREOF UNDER A LEASE HAVING A TERM OF AT LEAST FORTY-NINE YEARS.
§ 3. Section 696-a of the general municipal law, as amended by chapter
465 of the laws of 1993, is amended to read as follows:
§ 696-a. Loans. Notwithstanding the provisions of any general, special
or local law, an agency is hereby authorized to make or contract to make
grants or loans[: (i)] to the owner of any property that is part of an
urban development action area project for the purpose of: (I) rehabili-
tation of an existing private or multiple dwelling OR CONSTRUCTION OF A
NEW PRIVATE OR MULTIPLE DWELLING, (ii) [for the purpose of] providing
site improvements, INCIDENTAL OR APPURTENANT TO SUCH REHABILITATION OR
SUCH CONSTRUCTION, WITHIN THE URBAN DEVELOPMENT ACTION AREA IN WHICH THE
URBAN DEVELOPMENT ACTION AREA PROJECT IS LOCATED, including, but not
limited to, water and sewer facilities, sidewalks, landscaping, PARKS
AND OPEN SPACE, SOCIAL, RECREATIONAL, COMMUNAL AND OTHER NON-RESIDENTIAL
FACILITIES AND THE OUTFITTING THEREOF, the curing of problems caused by
abnormal site conditions, excavation and construction of footings and
foundations and other improvements associated with the provision of
infrastructure, or (iii) [for the purpose of] providing for other costs
of construction for the development of private and multiple dwelling
housing accommodations. In the case of a grant made under this section
for the rehabilitation of an existing multiple dwelling intended to be
converted to a condominium or cooperative form of ownership or for the
development of one to four unit housing accommodations or a condominium
or cooperative housing corporation, such grant shall require a regulato-
ry agreement with the agency limiting profits. Any loan made in accord-
ance with this section shall be secured by a note and mortgage upon the
property improved, OTHER THAN ANY SUCH PROPERTY TITLE TO WHICH IS HELD
BY THE MUNICIPALITY, or, in the case of a condominium, a note and mort-
gage upon each of the [housing accommodations] CONDOMINIUM UNITS aided
S. 2985--A 3
by such loan, or in the case of a cooperative housing corporation, a
note and mortgage upon the economic interest in such corporation of each
tenant-shareholder aided by such loan, or upon the property improved,
OTHER THAN ANY SUCH PROPERTY TITLE TO WHICH IS HELD BY THE MUNICIPALITY,
or upon both such economic interest or property; PROVIDED, HOWEVER, THAT
ALL OR PART OF ANY SUCH LOAN MAY BE UNSECURED IF NECESSARY TO SATISFY
THE REQUIREMENTS OF ANY PARTICIPATING LENDER. Such loan shall be repaid
over such period as the agency shall determine. In the case of a loan
for rehabilitation of an existing multiple dwelling intended to be
converted to a condominium or cooperative form of ownership or a loan
for the provision of infrastructure or for the provision of other costs
of construction for the development of one to four unit housing accommo-
dations or a condominium or cooperative housing corporation, such note
and mortgage may provide that the loan shall automatically be reduced to
zero over a period of owner-occupancy of the housing accommodations
assisted by such loan. In the case of a grant or loan made under this
section for the purpose of providing rental housing for persons of low
income as defined in section two of the private housing finance law,
such loan or grant shall require a regulatory agreement with the agency
limiting profits and rentals charged. In the case of a loan made under
this section for the purpose of providing rental housing for persons of
low income as defined in section two of the private housing finance law,
such note and mortgage may provide that the loan shall automatically be
reduced to zero over a period of up to thirty years of compliance by the
owner with a regulatory agreement with the agency limiting profits and
rentals charged. The repayment of any loan made in accordance with this
section shall be made in such manner as may be provided in such note and
mortgage in connection with such loan, and may authorize the owner, with
the consent of the agency, to prepay the principal of the loan subject
to such terms and conditions as therein provided. Such note and mortgage
may contain such other terms and conditions not inconsistent with the
provisions of this article as the agency may deem necessary or desirable
to carrying out the purposes and provisions of this article including,
but not limited to, provisions concerning the repayment of the loan, the
interest, if any, thereon, and other charges in connection therewith.
For purposes of this [section] ARTICLE, (1) the term "mortgage" shall
include any pledge or assignment of shares or assignment of a proprie-
tary lease in a cooperative housing corporation where such pledge or
assignment is intended as security for the performance of an obligation
and which imposes a lien on or affects title to such shares or such
proprietary lease; AND (2) THE TERM "OWNER" SHALL MEAN AN INDIVIDUAL,
PARTNERSHIP, CORPORATION OR OTHER ENTITY, INCLUDING A NON-PROFIT COMPA-
NY, A MUTUAL COMPANY, OR A HOUSING DEVELOPMENT FUND COMPANY, HAVING
RECORD OR BENEFICIAL TITLE IN FEE SIMPLE TO REAL PROPERTY OR THE LESSEE
THEREOF UNDER A LEASE HAVING A TERM OF AT LEAST FORTY-NINE YEARS.
§ 4. The general municipal law is amended by adding two new sections
696-e and 696-f to read as follows:
§ 696-E. CHARGES. A MUNICIPALITY, OR AN AGENCY, MAKING A LOAN OR GRANT
PURSUANT TO THIS ARTICLE, MAY REQUIRE THE PAYMENT OF CHARGES BY AN OWNER
IN CONSIDERATION FOR THE FINANCING, REGULATION, SUPERVISION AND AUDIT OF
SUCH LOAN, OR FOR REGULATION, SUPERVISION AND AUDIT OF SUCH GRANT. SUCH
CHARGES SHALL BE PAID INTO THE TREASURY OF THE MUNICIPALITY REQUIRING
THE CHARGES AND SHALL BE PAID AND DEPOSITED IN THE GENERAL FUND OF ANY
SUCH MUNICIPALITY.
§ 696-F. SERVICING. AN AGENCY MAY MAKE PROVISION IN A NOTE AND LOAN
AGREEMENT OR BY SEPARATE AGREEMENT FOR THE PERFORMANCE OF LOAN OR GRANT
S. 2985--A 4
SERVICING FUNCTIONS, INCLUDING, BUT NOT LIMITED TO, FUNCTIONS RELATED TO
LENDING OR PROVIDING A GRANT FOR CONSTRUCTION, AS MAY GENERALLY BE
PERFORMED BY AN INSTITUTIONAL LENDER. SUCH AGENCY MAY ACT IN SUCH CAPAC-
ITY OR APPOINT OR CONSENT TO THE APPOINTMENT OF A FINANCIAL INSTITUTION
OR OTHER QUALIFIED ENTITY, AS DETERMINED BY SUCH AGENCY, TO ACT IN SUCH
CAPACITY ON BEHALF OF SUCH AGENCY. SUCH AGENCY MAY PAY A REASONABLE AND
CUSTOMARY FEE TO SUCH FINANCIAL INSTITUTION OR OTHER QUALIFIED ENTITY
APPOINTED BY SUCH AGENCY, OR TO WHOSE APPOINTMENT SUCH AGENCY PROVIDED
CONSENT, FOR THE PERFORMANCE OF SUCH LOAN OR GRANT SERVICING FUNCTIONS.
§ 5. Subdivision 41 of paragraph a of section 11.00 of the local
finance law, as amended by chapter 400 of the laws of 1994, is amended
to read as follows:
41. Housing. The effectuating of any of the purposes of the public
housing law, other than making loans to limited profit housing companies
pursuant to article two of the private housing finance law, and other
than making loans to owners of existing multiple dwellings, fifty years;
bonds issued by a housing authority pursuant to section forty-one of the
public housing law and guaranteed by a municipality pursuant to section
ninety-five of the public housing law, five years, in addition to the
foregoing period of fifty years, for the temporary financing of a
project prior to the permanent financing thereof; evidences of indebt-
edness issued to the state pursuant to paragraph c of section 20.00 of
this chapter, three years, in addition to the foregoing period of fifty
years for the temporary financing of a project prior to the permanent
financing thereof; loans to limited profit housing companies pursuant to
article two of the private housing finance law, fifty-five years; loans
OR GRANTS to owners of existing private or multiple dwellings, NON-RESI-
DENTIAL PROPERTY, OR VACANT LAND pursuant to the provisions of article
eight, article eight-A, article eight-B, article eleven or article
fifteen of the private housing finance law, or loans for the
construction of multiple dwellings pursuant to article eleven of the
private housing finance law, or loans OR GRANTS for the pre-development
costs or construction of private or multiple dwellings pursuant to arti-
cle twenty-two of the private housing finance law, thirty years.
§ 6. Section 2 of the private housing finance law is amended by adding
two new subdivisions 30 and 31 to read as follows:
30. "CLIMATE RESILIENCY IMPROVEMENTS." IMPROVEMENTS FOR THE PURPOSE OF
PROTECTING LAND OR ANY STRUCTURES THEREON FROM DAMAGE RESULTING FROM OR
WHICH MAY RESULT FROM CHANGES IN CLIMATE, INCLUDING, BUT NOT LIMITED TO,
EXTREME WEATHER EVENTS, ABNORMAL TEMPERATURES, AND SEA LEVEL RISE, OR OF
REDUCING THE IMPACT OF THE OPERATION OF SUCH STRUCTURES ON CLIMATE
CHANGE, INCLUDING, BUT NOT LIMITED TO, IMPROVEMENTS THAT REDUCE ENERGY
CONSUMPTION OR PROMOTE THE EFFICIENT USE OF NATURAL RESOURCES.
31. "PRIVATE LENDER." ONE OR MORE BANKING ORGANIZATIONS, FOUNDATIONS,
LABOR UNIONS, CREDIT UNIONS, EMPLOYERS' ASSOCIATIONS, VETERANS' ORGAN-
IZATIONS, COLLEGES, UNIVERSITIES, EDUCATIONAL INSTITUTIONS, CHILD CARE
INSTITUTIONS, HOSPITALS, MEDICAL RESEARCH INSTITUTES, INSURANCE COMPA-
NIES, TRUSTEES OR FIDUCIARIES, TRUSTEES OF PENSIONS AND RETIREMENT FUNDS
AND SYSTEMS, CORPORATIONS, PARTNERSHIPS, INDIVIDUALS OR OTHER ENTITIES
OR ANY COMBINATION OF THE FOREGOING, AND SHALL INCLUDE ANY PUBLIC BENE-
FIT CORPORATION AND THE UNITED STATES OF AMERICA AND ANY OF ITS AGENCIES
AND DEPARTMENTS. AS USED IN THIS DEFINITION, THE TERMS "TRUSTEES" AND
"FIDUCIARIES" SHALL INCLUDE ANY FIDUCIARY OR FIDUCIARIES HOLDING FUNDS
FOR INVESTMENT AND THE TERM "BANKING ORGANIZATIONS" SHALL HAVE THE SAME
MEANING AS IN SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW.
S. 2985--A 5
§ 7. Section 400 of the private housing finance law is amended to read
as follows:
§ 400. Policy and purposes of article. It is hereby declared that
there exists in municipalities in this state a seriously inadequate
supply of safe and sanitary dwelling accommodations for persons and
families of low income; that such shortage constitutes an emergency and
a grave menace to the health, safety, morals, welfare and comfort of
citizens of this state; that there exists in such municipalities a large
number of multiple dwellings which are inadequate, unsafe or insanitary
by reason of the absence of proper heating facilities or by reason of
the necessity for elimination of conditions dangerous to human life or
detrimental to health, including nuisances as defined[,] in section
three hundred nine of the multiple dwelling law, or for other rehabili-
tation or improvement and which can be made adequate, safe and sanitary,
by the installation of proper heating facilities or by other rehabili-
tation, PRESERVATION or improvement or by the elimination of such condi-
tions; that such installation, rehabilitation, PRESERVATION or improve-
ment cannot readily be provided by the ordinary unaided operation of
private enterprise for occupancy by persons or families of low income
without public aid in the form of low interest loans OR GRANTS to owners
of such multiple dwellings for the purpose of such installation, reha-
bilitation, PRESERVATION or improvement; that the installation of proper
heating facilities in such multiple dwellings or other rehabilitation,
PRESERVATION or improvement thereof for occupancy by persons of low
income as defined in this article is a public use and a public purpose
for which public money may be loaned OR GRANTED; that such conditions
require the provisions hereinafter enacted; and the necessity in the
public interest for the provisions hereinafter enacted is hereby
declared as a matter of legislative determination.
§ 8. Subdivision 3 of section 401 of the private housing finance law,
paragraph a as amended by chapter 44 of the laws of 1976, and paragraph
b as amended by chapter 904 of the laws of 1962, is amended to read as
follows:
3. a. The term "persons or families of low income" shall mean "persons
of low income" or "families of low income" as defined in section two of
this chapter[, whose probable aggregate annual income during the period
of occupancy does not exceed six times the rental (including the value
or cost to them of heat, light, water and cooking fuel) of dwelling
units occupied by such persons or families in existing multiple dwell-
ings aided by a loan pursuant to this article, except that in the case
of persons or families with three or more dependents, such ratio shall
not exceed seven to one, and except further that the income limitations
prescribed by this paragraph shall be subject to the provisions of
subdivision two of section four hundred three of this article.
In calculating annual income, social security payments and income
received from private pension funds by any person sixty-two years of age
or more shall be excluded up to a total maximum amount of seventy-five
dollars per month. The term "probable aggregate annual income" means the
annual income of the chief wage earner of the family, plus all other
income of other members of the family over the age of twenty-one years,
plus a proportion of income of gainfully employed members under the age
of twenty-one years, the proportion to be determined by the agency. The
agency may exclude a proportion of the income of other members of the
family over the age of twenty-one years for the purpose of determining
eligibility for commencement of occupancy or continued occupancy, or for
establishing rental of such family, or for all such purposes].
S. 2985--A 6
b. Notwithstanding the provisions of paragraph a of this subdivision,
[and subject to the provisions of subdivision three of section four
hundred three of this article] the term "persons or families of low
income" shall also mean any person or family who, immediately prior to
the date on which a contract for a loan with respect to an existing
multiple dwelling is entered into pursuant to the provisions of this
article, occupies any dwelling unit in such multiple dwelling and who
continuously occupies such unit during and after completion of central
heating or other rehabilitation or improvement performed pursuant to
such contract provided, however, that any person or family required to
remove from any such dwelling unit because of such installation, reha-
bilitation or improvement shall, for the purpose of this section, be
deemed to have continuously occupied such unit and shall have preference
in re-entering such multiple dwelling upon completion of the aforesaid
work.
§ 9. Subdivision 6 of section 401 of the private housing finance law,
as added by chapter 505 of the laws of 1973, is amended to read as
follows:
6. The term "owner" shall mean a person having record OR BENEFICIAL
title in fee simple to real property or the lessee thereof under a lease
having an unexpired term of at least thirty years.
§ 10. Subdivision 1 of section 402 of the private housing finance law,
as amended by chapter 808 of the laws of 1971, is amended and a new
subdivision 1-a is added to read as follows:
1. Notwithstanding the provisions of any general, special or local
law, a municipality, by such officer or agency as determined by its
local legislative body, is hereby authorized:
(A) to make or contract to make loans to the owners of existing multi-
ple dwellings within its territorial limits, subject to the limitations
in subdivision two of this section, in such amounts as may be required
for the installation of proper heating facilities, THE INCORPORATION OF
CLIMATE RESILIENCY IMPROVEMENTS, or elimination of conditions dangerous
to human life or detrimental to health, including nuisances as defined
in section three hundred nine of the multiple dwelling law, or other
rehabilitation, PRESERVATION or improvement of such multiple dwellings,
and if such owner acquires the multiple dwelling for the purposes of
such rehabilitation, PRESERVATION or improvement or owns the multiple
dwelling subject to an outstanding indebtedness, such loans MAY BE MADE
EXCLUSIVELY FOR OR may include such amounts as may be required for the
cost of such acquisition or for the refinancing of such outstanding
indebtedness, and may make temporary loans or advances to such owners in
anticipation of the permanent municipal loans for such purposes[.]; AND
(B) TO MAKE OR CONTRACT TO MAKE GRANTS TO ANY OWNER DESCRIBED IN PARA-
GRAPH (A) OF THIS SUBDIVISION, ON THE SAME TERMS AS PERMITTED UNDER SUCH
PARAGRAPH FOR A LOAN.
1-A. AS USED IN THIS ARTICLE, THE TERM "LOAN" SHALL INCLUDE ANY GRANT
MADE BY A MUNICIPALITY PURSUANT TO THIS ARTICLE, PROVIDED, HOWEVER, THAT
ANY PROVISION OF THIS ARTICLE CONCERNING THE REPAYMENT OR FORGIVENESS
OF, OR SECURITY FOR, A LOAN SHALL NOT APPLY TO ANY GRANT MADE PURSUANT
TO THIS ARTICLE.
§ 11. Subdivisions 2-a, 2-b, 2-c and 4 of section 402 of the private
housing finance law, subdivision 2-a as added by chapter 213 of the laws
of 1975, subdivision 2-b as amended by chapter 362 of the laws of 2000,
and subdivision 2-c as amended by chapter 101 of the laws of 1994, are
amended to read as follows:
S. 2985--A 7
2-a. [As used in this section the term "value" shall mean the "as is"
value of the multiple dwelling and the land upon which it is situated
prior to such installation, elimination, other rehabilitation or
improvement referred to in subdivision one of this section plus the
total of all costs of such installation, elimination, rehabilitation or
improvement including, but not limited to, the costs of any or all
undertakings necessary for the planning, financing, tenant relocation,
acquisition, construction, equipment and development in connection ther-
ewith.
2-b.] (a) Each permanent loan shall be secured by a bond and mortgage
or note and mortgage upon the multiple dwelling and the land upon which
it is situated, PROVIDED THAT WHERE THE MULTIPLE DWELLING IS HELD IN THE
CONDOMINIUM FORM OF OWNERSHIP, SUCH LOAN SHALL BE SECURED BY A BOND AND
MORTGAGE OR NOTE AND MORTGAGE UPON THE CONDOMINIUM UNITS REHABILITATED
OR IMPROVED WITH SUCH LOAN; where the loan is made to an owner who is a
lessee, such loan shall be secured by [a first lien on such property] A
LEASEHOLD INTEREST IN SUCH PROPERTY.
(b) [The amount of any such loan shall not exceed the cost of the
installation of proper heating facilities, or elimination of conditions
dangerous to human life or detrimental to health, including nuisances as
defined in section three hundred nine of the multiple dwelling law, or
other rehabilitation or improvement provided that, if any portion of
such loan is used for the cost of acquisition of the land and the multi-
ple dwelling or for re-financing, the total amount of such loan shall
not exceed two times the cost of such installation, elimination of such
conditions, rehabilitation or improvement.
(c) The amount of any such loan, together with the amount of all prior
liens and encumbrances, shall not exceed, except in the case of a loan
made to a non-profit company, a mutual company, or a housing development
fund company, ninety per centum of the value of the property, after
completion of the installation of proper heating facilities, or elimi-
nation of such conditions or other rehabilitation or improvement, as
estimated by the agency, unless the agency makes a written determination
that the owner has insufficient resources to pay for the remaining ten
per centum of the value of the property, after completion of such
installation, elimination, or other rehabilitation or improvement, as
estimated by the agency, in which case such loan shall not exceed nine-
ty-five per centum of the value of the property, after completion of the
installation of proper heating facilities, or elimination of such condi-
tions or other rehabilitation or improvement, as estimated by the agen-
cy. The amount of any such loan, together with the amount of all prior
liens and encumbrances, made to a non-profit company, a mutual company,
or a housing development fund company shall not exceed the value of the
property after completion of such installation, elimination, or other
rehabilitation or improvement, as estimated by the agency provided that
when after completion of such installation, elimination or other reha-
bilitation or improvement, such project is, or is to be operated exclu-
sively for the benefit of persons or families who are entitled to occu-
pancy by reason of ownership of stock in the corporate owners, such loan
shall not exceed ninety-eight percentum of the value of the property,
after completion of such installation, elimination, or other rehabili-
tation or improvement, as estimated by the agency, unless the agency
makes a written determination that the owner has insufficient resources
to pay for the remaining two per centum of the value of the property,
after completion of such installation, elimination, or other rehabili-
tation or improvement, as estimated by the agency, in which case such
S. 2985--A 8
loan shall not exceed the value of the property, after completion of
such installation, elimination, or other rehabilitation or improvement,
as estimated by the agency.
(d)] Each such bond and mortgage or note and mortgage shall be repaid
over or within a period of [thirty] FORTY years, PROVIDED THAT SUCH
PERIOD MAY BE EXTENDED AS THE AGENCY MAY DETERMINE NECESSARY TO ENSURE
THE CONTINUED AFFORDABILITY OR ECONOMIC VIABILITY OF THE MULTIPLE DWELL-
ING, in such manner as may be provided in such bond and mortgage or note
and mortgage and contract [but in no case to exceed the probable life of
the multiple dwelling which is hereby determined to be thirty years].
Such bond and mortgage or note and mortgage and the contract in
connection with such permanent and temporary loans may contain such
other terms and provisions not inconsistent with the provisions of this
article as the local legislative body or the agency may deem necessary
or desirable to secure repayment of the loan, the interest thereon and
other charges in connection therewith and to carry out the purposes and
provisions of this article[; notwithstanding the foregoing, a loan made
prior to January first, nineteen hundred seventy-eight may, in the
discretion of the agency, be extended to a term up to forty-five years.
The agency may modify the rate and time of payment of interest on the
original loan and the rate and time of amortization of principal in such
manner as required to secure payment of the loan within the extended
term], INCLUDING, BUT NOT LIMITED TO, PROVIDING THAT THE LIEN CREATED BY
SUCH BOND AND MORTGAGE OR NOTE AND MORTGAGE, AND, IF APPLICABLE, ANY
REGULATORY AGREEMENT EXECUTED BY THE OWNER AND THE AGENCY OR RESTRICTIVE
COVENANT APPROVED BY SUCH AGENCY, MAY BE RECORDED IN AN EQUAL OR SUBOR-
DINATE POSITION, OR SUBSEQUENTLY MADE EQUAL OR SUBORDINATE, TO A LIEN
RECORDED BY ANY PRIVATE LENDER AGAINST SUCH MULTIPLE DWELLING.
[2-c.] 2-B. If a loan pursuant to this article is made to a non-profit
company or a housing development fund company which agrees to provide
housing accommodations exclusively for persons and families of low
income, at least thirty percent of whom are referred to it by the muni-
cipality and have prior to their initial occupancy in such accommo-
dations resided in emergency shelter facilities operated by or on behalf
of the municipality, the agency may provide that the note and mortgage
shall automatically be reduced to zero in five equal annual decrements
commencing on the tenth year after the initial occupancy date, provided
that such accommodations have been owned and operated in a manner
consistent with an agreement with the municipality contained in such
note and mortgage to provide housing for such persons.
4. The agency may [charge the] REQUIRE THE PAYMENT OF CHARGES BY AN
owner of such multiple dwelling [reasonable fees] IN CONSIDERATION for
THE financing, regulation, supervision and audit OF SUCH LOAN. Such fees
shall be [kept by the municipality in a separate fund to be known as the
housing rehabilitation fund and shall be used to pay for the expenses of
the municipality in administering and carrying out the provisions of
this article] PAID INTO THE TREASURY OF THE MUNICIPALITY REQUIRING THE
CHARGES AND SHALL BE PAID AND DEPOSITED IN THE GENERAL FUND OF ANY SUCH
MUNICIPALITY.
§ 12. Subdivisions 2, 3, 4 and 5 of section 403 of the private housing
finance law, subdivision 2, paragraphs a, b and c of subdivision 3 and
subdivision 4 as amended by chapter 904 of the laws of 1962, are amended
to read as follows:
2. [In the event that after any person or family included within the
provisions of paragraph a of subdivision three of section four hundred
one of this article, but not included within the provisions of paragraph
S. 2985--A 9
b of such subdivision three, begins occupancy of any dwelling unit in
any multiple dwelling aided by a loan pursuant to this article, and
during the period while such dwelling unit is subject to a maximum rent
prescribed pursuant to this article, the income of such person or family
increases so as to exceed the applicable maximum prescribed by such
paragraph a by more than fifty per centum, such person shall be subject
to removal from such dwelling with the approval of the agency.
3. a. In the event that on the date on which a contract for a loan is
made with respect to a multiple dwelling aided by a loan pursuant to
this article, any person or family occupying a dwelling unit in such
multiple dwelling and included within the provisions of paragraph b of
subdivision three of section four hundred one of this article, has a
probable aggregate annual income, as determined in accordance with the
provisions of paragraph a of such subdivision three, which exceeds the
income limits specified in such paragraph a by more than fifty per cent,
such person or family shall be subject to removal from such dwelling
unit with the approval of the agency upon the expiration of a period of
two years after the date on which such contract is entered into.
b. In the event that at any time within a period of two years after
any such contract is entered into, the income of any such person or
family increases so as to exceed the income limits specified in such
paragraph a by more than fifty per cent, such person or family shall be
subject to removal from such dwelling unit with the approval of the
agency upon the expiration of such period of two years.
c. If, at any time subsequent to the expiration of a period of two
years after any such contract is entered into, and during the period
while the dwelling unit occupied by any such person or family is subject
to a maximum rent prescribed pursuant to this article, the income of
such person or family increases so as to exceed the income limits speci-
fied in such paragraph a by more than fifty per cent, such person or
family shall be subject to removal from such dwelling unit with the
approval of the agency.
4.] Any person or family in occupancy[, whether included within the
provisions of paragraph a or paragraph b of subdivision three of section
four hundred one of this article, whose income exceeds the maximum
prescribed by the provisions of such paragraph a with respect to the
time of beginning of occupancy, shall] WHOSE INCOME PRECLUDES THE INCLU-
SION OF SUCH PERSON OR FAMILY WITHIN THE DEFINITION PROVIDED IN PARA-
GRAPH A OF SUBDIVISION THREE OF SECTION FOUR HUNDRED ONE OF THIS ARTICLE
MAY BE REQUIRED TO pay a rental surcharge in accordance with a schedule
of surcharges to be promulgated by the agency. IN DETERMINING IMPOSI-
TION OF ANY SUCH SURCHARGE, THE AGENCY SHALL CONSIDER FACTORS SUCH AS
THE NET OPERATING INCOME AND DEBT SERVICE COVERAGE RATIO OF THE PROPERTY
AIDED BY A LOAN PURSUANT TO THIS ARTICLE. Rental surcharges collected
pursuant to this section shall be paid by the owner to the municipality
which has granted such owner tax exemption or tax abatement pursuant to
any law authorizing the granting of same, as reimbursement to such muni-
cipality therefor. In the event that such tax exemption and tax abate-
ment have not been granted, or in the event that a sum equal to the
total amount of tax exemption and tax abatement granted to the owner has
been paid to the municipality, the excess, if any, of surcharges shall
be paid to the municipality in reduction of the loan.
[5. Any person or family whose removal is required by any provision of
this article shall be subject to removal by summary proceedings.]
S. 2985--A 10
§ 13. The opening paragraph of subdivision 1 of section 404 of the
private housing finance law, as added by chapter 904 of the laws of
1962, is amended to read as follows:
No such loan shall be made by a municipality to an owner of an exist-
ing multiple dwelling unless the owner of such multiple dwelling [and
all persons holding a lien prior to that of the municipality] shall
covenant in writing that so long as any part of such loan remains
unpaid, any exemption and abatement from taxation on the property
resulting from the installations, alterations or improvements made with
such loan remains in effect or for a period of at least ten years from
the occupancy date, whichever is the later:
§ 14. Section 450 of the private housing finance law, as amended by
chapter 273 of the laws of 1975, is amended to read as follows:
§ 450. Policy and purposes of article. It is hereby declared that
there exists in municipalities in this state a seriously inadequate
supply of safe and sanitary dwelling accommodations; that such shortage
constitutes an emergency and a grave menace to the health, safety,
morals, welfare and comfort of citizens of this state; that existing
conditions of deterioration of housing marked by noncompliance with the
multiple dwelling law or local housing codes threaten a further decrease
in such supply; that rehabilitation and improvement of dwellings to
prolong the useful life of such dwellings may be necessary to arrest
such conditions of deterioration; that the elimination of such condi-
tions by rehabilitation or other improvement cannot readily be provided
by the ordinary unaided operation of private enterprise without public
aid in the form of low interest loans OR GRANTS to owners of such multi-
ple dwellings; that such rehabilitation or other improvement of such
dwellings to bring them into conformance with the multiple dwelling law
and local housing codes is a public use, a public purpose and a city
purpose for which public money may be loaned OR GRANTED by a munici-
pality and for which indebtedness may be contracted by a municipality;
that such conditions require the provisions hereinafter enacted, and the
necessity in the public interest for the provisions hereinafter enacted
is hereby declared as a matter of legislative determination.
§ 15. Subdivisions 2 and 3 of section 451 of the private housing
finance law, subdivision 2 as amended by chapter 705 of the laws of 1976
and subdivision 3 as amended by chapter 269 of the laws of 1985, are
amended to read as follows:
2. "Occupancy by persons of low income." Occupancy by [persons paying
rentals or carrying charges not in excess of the average rentals or
carrying charges prevailing in local projects of municipally-aided
limited-profit housing companies aided under article two of this chap-
ter, the occupancy of which commenced on or after May eighteenth, nine-
teen hundred seventy] "PERSONS OF LOW INCOME" OR "FAMILIES OF LOW
INCOME," AS SUCH TERMS ARE DEFINED IN SECTION TWO OF THIS CHAPTER.
3. "Owner." An individual, partnership, corporation or other entity,
including a non-profit company, a mutual company, or a housing develop-
ment fund company, which holds record OR BENEFICIAL title in fee simple
to the multiple dwelling and the real property upon which it is situate
or the lessee thereof under a lease the unexpired term of which shall be
not less than the term of the loan to be made under this article.
§ 16. Subdivision 1 of section 452 of the private housing finance law,
as amended by chapter 923 of the laws of 1983, is amended and a new
subdivision 1-a is added to read as follows:
1. Notwithstanding the provisions of any general, special or local
law, a municipality is hereby authorized:
S. 2985--A 11
(A) to make or contract to make loans to the owners of existing multi-
ple dwellings within its territorial limits, subject to the limitations
in subdivision two of this section, for the elimination of any substand-
ard or insanitary condition or conditions in violation of the multiple
dwelling law or local housing code, FOR THE INCORPORATION OF CLIMATE
RESILIENCY IMPROVEMENTS or for such replacement and rehabilitation of
the heating, plumbing, electrical and related systems or other improve-
ments as shall be reasonably necessary to prolong the useful life of
such dwellings, and may make temporary loans to such owners in antic-
ipation of the permanent municipal loans for such purposes; AND
(B) TO MAKE OR CONTRACT TO MAKE GRANTS TO ANY OWNER DESCRIBED IN
PARAGRAPH (A) OF THIS SUBDIVISION, ON THE SAME TERMS AS PERMITTED UNDER
SUCH PARAGRAPH FOR A LOAN.
1-A. AS USED IN THIS ARTICLE, THE TERM "LOAN" SHALL INCLUDE ANY GRANT
MADE BY A MUNICIPALITY PURSUANT TO THIS ARTICLE, PROVIDED, HOWEVER, THAT
PROVISIONS OF THIS ARTICLE CONCERNING THE REPAYMENT OR FORGIVENESS OF,
OR SECURITY FOR, A LOAN SHALL NOT APPLY TO ANY GRANT MADE PURSUANT TO
THIS ARTICLE.
§ 17. Subdivisions 2 and 5 of section 452 of the private housing
finance law, subdivision 2 as amended by chapter 408 of the laws of 2009
and subdivision 5 as amended by chapter 273 of the laws of 1975, are
amended to read as follows:
2. Each loan shall be evidenced by a note executed by the owner of the
existing multiple dwelling. The supervising agency in its discretion may
require one or more of the shareholders of a corporate owner to co-sign
such note or to otherwise guarantee or pledge security for the repayment
of the loan. [The amount of any such loan shall not exceed the sum of
thirty-five thousand dollars ($35,000) per dwelling unit, or the cost of
eliminating such substandard or insanitary condition or conditions, or
effecting such rehabilitation or improvement, whichever is less.] Each
such note shall be repaid within a period [of the probable life of the
existing multiple dwelling which is hereby determined to be thirty
years, or such shorter period as the supervising agency shall determine]
OF FORTY YEARS, PROVIDED THAT SUCH PERIOD MAY BE EXTENDED AS THE SUPER-
VISING AGENCY MAY DETERMINE NECESSARY TO ENSURE THE CONTINUED AFFORDA-
BILITY OR ECONOMIC VIABILITY OF THE EXISTING MULTIPLE DWELLING. The
repayment shall be made in such manner as may be provided in such note
and contract, if any, in connection with such loan and may authorize
such owner, with the consent of the supervising agency, to prepay the
principal of the loan subject to such terms and conditions as therein
provided. Such note and contract may contain such other terms and
provisions not inconsistent with the provisions of this article as the
local legislative body or supervising agency may deem necessary or
desirable to secure repayment of the loan, the interest thereon and
other charges in connection therewith and to carry out the purposes and
provisions of this article, including but not limited to provisions
ensuring availability of rents for such repayment AND PROVISIONS PERMIT-
TING THE LIEN CREATED BY SUCH NOTE AND MORTGAGE, AND, IF APPLICABLE, A
REGULATORY AGREEMENT EXECUTED BY SUCH OWNER AND SUPERVISING AGENCY, BE
RECORDED IN AN EQUAL AND SUBORDINATE POSITION, OR SUBSEQUENTLY MADE
EQUAL OR SUBORDINATE, TO A LIEN RECORDED BY ANY PRIVATE LENDER AGAINST
SUCH MULTIPLE DWELLING.
5. The supervising agency may [charge] REQUIRE THE PAYMENT OF CHARGES
BY the owner of such existing multiple dwelling [reasonable fees] IN
CONSIDERATION for THE financing, regulation, supervision and audit OF
SUCH LOAN. Such [fees] CHARGES shall be [kept by the municipality in a
S. 2985--A 12
separate fund to be known as the article VIII-A housing rehabilitation
fund and shall be used to help meet the expenses of the municipality in
administering and carrying out the provisions of this article] PAID INTO
THE TREASURY OF THE MUNICIPALITY REQUIRING THE CHARGES AND SHALL BE PAID
AND DEPOSITED IN THE GENERAL FUND OF ANY SUCH MUNICIPALITY.
§ 18. Section 453 of the private housing finance law, as added by
chapter 924 of the laws of 1970, paragraphs (c) and (d) as amended and
paragraph (e) of subdivision 1 as added by chapter 273 of the laws of
1975, is amended to read as follows:
§ 453. Conditions precedent to making such loans. [1.] No such loan
shall be made by a municipality to an owner of an existing multiple
dwelling unless the owner of such multiple dwelling shall covenant in
writing that so long as any part of such loan shall remain unpaid OR
FOR A PERIOD OF AT LEAST TEN YEARS FROM THE DATE OF THE LOAN, WHICHEVER
IS LATER:
[(a)] 1. Each dwelling unit in such multiple dwelling shall be avail-
able solely for occupancy by persons of low income;
[(b)] 2. No person who lives in such multiple dwelling at the time the
loan is made shall be required to move because of the rehabilitation or
improvement financed thereby, EXCEPT THAT A TEMPORARY RELOCATION MAY BE
REQUIRED IN CONNECTION WITH SUCH REHABILITATION OR IMPROVEMENT;
[(c)] 3. All persons operating or managing such multiple dwelling will
permit the duly authorized officers, employees, agents or inspectors of
the municipality to enter in or upon and inspect such multiple dwelling
at all reasonable hours; [and
(d)] 4. The municipality by such duly authorized representatives as
aforesaid shall have full power to investigate into and order the owner
of such multiple dwelling to furnish such reports and information as it
may require concerning such rehabilitation or improvement and shall have
full power to audit the books of said owner with respect to such
matters; and
[(e)] 5. The owner will submit to the supervising agency annually a
statement of the income and expenses of such multiple dwelling, in such
form as shall be approved by such agency.
[2. No such loan shall be made by a municipality unless such owner
executed an affidavit that he was unable to obtain financing for such
rehabilitation or improvement because of the neighborhood, the age of
the building, or other factors indicating an inability of the private
sector unaided to cause such rehabilitation or improvement to be made.]
§ 19. The article heading of article 8-B of the private housing
finance law, as added by chapter 786 of the laws of 1987, is amended to
read as follows:
LOANS TO [OWNER-OCCUPANTS] OWNERS OF ONE TO FOUR UNIT
PRIVATE AND MULTIPLE DWELLINGS
§ 20. Section 470 of the private housing finance law, as amended by
chapter 200 of the laws of 1997, is amended to read as follows:
§ 470. Policy and purposes of article. It is hereby declared and found
that there exists in municipalities within the state substandard and
unsanitary areas and neighborhoods containing deteriorated [owner-occu-
pied] one to four unit private and multiple dwellings, and that the
rehabilitation OR PRESERVATION of such dwellings is necessary in order
to aid in the prevention and elimination of slums and blight in such
areas and neighborhoods.
It further is found that there exists in such municipalities a seri-
ously inadequate supply of safe and sanitary [owner-occupied] one to
four unit private and multiple dwellings, particularly for persons of
S. 2985--A 13
low and moderate income, that existing non-compliance with local housing
codes and with the multiple dwelling law and the multiple residence law
threatens to decrease such supply, and that the rehabilitation, PRESER-
VATION and improvement of such dwellings is necessary to arrest such
conditions of deterioration.
IT FURTHER IS FOUND THAT THERE EXISTS IN SUCH MUNICIPALITIES A SERI-
OUSLY INADEQUATE SUPPLY OF DWELLING UNITS, PARTICULARLY FOR PERSONS OF
LOW AND MODERATE INCOME, AND THAT THERE ARE MANY BASEMENTS AND CELLARS
IN ONE TO FOUR UNIT PRIVATE AND MULTIPLE DWELLINGS THAT COULD BE
CONVERTED INTO LAWFUL DWELLING UNITS.
It further is found that the elimination of such conditions by reha-
bilitation or other improvements IN ONE TO FOUR UNIT PRIVATE AND MULTI-
PLE DWELLINGS, AND THE CONVERSION OF BASEMENTS AND CELLARS IN EXISTING
ONE TO FOUR UNIT PRIVATE AND MULTIPLE DWELLINGS INTO LAWFUL DWELLING
UNITS, cannot be readily provided without public aid in the form of low
interest loans OR GRANTS to [low and moderate income owner-occupants]
OWNERS of such one to four unit dwellings.
The rehabilitation, PRESERVATION or other [improvements] IMPROVEMENT
of such PRIVATE AND MULTIPLE dwellings [owned and occupied by low and
moderate income persons or families,] AND THE CONVERSION OF BASEMENTS
AND CELLARS IN SUCH PRIVATE AND MULTIPLE DWELLINGS INTO LAWFUL DWELLING
UNITS is hereby declared a public purpose and a municipal purpose for
which public monies may be loaned OR GRANTED.
In order, further, to promote the preservation and rehabilitation of
such dwellings AND THE CONVERSION OF BASEMENTS AND CELLARS IN SUCH
DWELLINGS INTO LAWFUL DWELLING UNITS, it is hereby declared that addi-
tional provisions should be made to provide public monies for interest
reduction subsidies for private loans made by private investors for such
rehabilitation.
The necessity in the public interest for the provisions of this arti-
cle is hereby declared as a matter of legislative determination.
§ 21. Section 471 of the private housing finance law, as amended by
chapter 200 of the laws of 1997, is amended to read as follows:
§ 471. Definitions. 1. "Agency" shall mean any agency or instrumental-
ity of a municipality that is created by legislation and designated by
the chief executive to act on behalf of the municipality with regard to
the provisions of this article.
1-A. "BASEMENT" SHALL HAVE THE SAME MEANING AS PROVIDED IN SUBDIVISION
THIRTY-EIGHT OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
2. "Banking organization" shall mean any corporation, association or
organization organized under the banking laws of New York state or the
United States which is authorized to transact business in this state.
2-A. "CELLAR" SHALL HAVE THE SAME MEANING AS PROVIDED IN SUBDIVISION
THIRTY-SEVEN OF SECTION FOUR OF THE MULTIPLE DWELLING LAW.
3. "Existing multiple dwelling" shall mean any dwelling classified as
a multiple dwelling pursuant to the multiple dwelling law or the multi-
ple residence law and in existence on the date upon which an application
for a loan pursuant to this article is received by the agency.
4. "Existing private dwelling" shall mean any dwelling classified as a
private dwelling pursuant to the multiple dwelling law or the multiple
residence law and in existence on the date upon which an application for
a loan pursuant to this article is received by the agency.
5. "Federal grant funds" shall mean any grants received from the
federal government for community development activities or for the reha-
bilitation or conservation of private or multiple dwellings.
S. 2985--A 14
6. "Low and moderate income persons" shall mean persons and families
who cannot afford to improve their homes by relying upon the ordinary
unaided operation of private enterprise.
7. "Municipality" shall mean any city, town or village.
8. "Owner" shall mean an individual or individuals, a partnership,
[or] A CORPORATION OR OTHER ENTITY, INCLUDING BUT NOT LIMITED TO, A
TRUST, a joint tenancy, tenancy in common or tenancy by the entirety
holding record OR BENEFICIAL title in fee simple to an existing private
or multiple dwelling and the real property upon which it is situated, OR
THE LESSEE THEREOF UNDER A LEASE HAVING AN UNEXPIRED TERM OF AT LEAST
THIRTY YEARS. "Owner" shall be deemed to also include a cooperative
corporation or a condominium association.
9. ["Owner-occupant" shall mean an owner who occupies at least one of
the units in a one to four unit dwelling as his or her principal resi-
dence. In the case of a partnership, joint tenancy, tenancy in common or
tenancy by the entirety, at least one partner or tenant must be an
owner-occupant. In the case of a cooperative or condominium a majority
of the units must be owner-occupied. The term "owner-occupant" shall
include an owner of a vacant one to four unit dwelling who demonstrates
an intention to move into one of the units after the rehabilitation of
the property] RESERVED.
10. "Private investor" shall mean one or more banking organizations,
foundations, public benefit corporations, labor unions, credit unions,
employers' associations, veterans' organizations, colleges, universi-
ties, educational institutions, child care institutions, hospitals,
medical research institutes, insurance companies, trustees or fiduciar-
ies, trustees of pension and retirement funds and systems, corporations,
partnerships, individuals or other entities or any combination of the
foregoing, and shall include the United States of America and any of its
agencies and departments.
11. "Rehabilitation" shall mean the installation, replacement, or
repair of heating, plumbing, electrical and related systems or the elim-
ination of conditions dangerous to human life or detrimental to health,
including nuisances as defined in local housing or health codes or as
defined in section three hundred nine of the multiple dwelling law, or
in section three hundred five of the multiple residence law, or other
rehabilitation or general property and energy conservation improvements.
12. "State grant funds" shall mean any grants received from the state
or any public benefit corporation for community development activities
or for the rehabilitation or conservation of private or multiple dwell-
ings.
§ 22. Section 472 of the private housing finance law, as added by
chapter 786 of the laws of 1987, subdivision 1 as amended by chapter 479
of the laws of 2005, subdivision 2 as amended by chapter 408 of the laws
of 2009, subdivision 3 as amended by chapter 84 of the laws of 2001, and
subdivision 7 as added by chapter 705 of the laws of 1991, is amended to
read as follows:
§ 472. Loans to [owner-occupants] OWNERS. 1. Notwithstanding the
provisions of any general, special or local law, a municipality, acting
through an agency, is authorized:
(A) to make, or contract to make, loans to [low and moderate income
owner-occupants] OWNERS of one to four unit existing private or multiple
dwellings within its territorial limits, subject to the limitation of
subdivisions two through seven of this section, in such amounts as shall
be required for the rehabilitation, IMPROVEMENT OR ACQUISITION of such
dwellings[,] provided, [however, that such loans shall not exceed sixty
S. 2985--A 15
thousand dollars per dwelling unit. Such] THAT ANY SUCH REHABILITATION
OR IMPROVEMENT MAY INCLUDE CLIMATE RESILIENCY IMPROVEMENTS AND THE
CONVERSION OF BASEMENTS AND CELLARS TO LAWFUL DWELLING UNITS. SUCH
loans may also BE MADE EXCLUSIVELY FOR OR include the refinancing of the
outstanding indebtedness of such dwellings, and the municipality may
make temporary loans or advances to such [owner-occupants] OWNERS in
anticipation of permanent loans for such purposes; AND
(B) TO MAKE OR CONTRACT TO MAKE GRANTS TO ANY OWNER DESCRIBED IN PARA-
GRAPH (A) OF THIS SUBDIVISION, ON THE SAME TERMS AS PERMITTED UNDER SUCH
PARAGRAPH FOR A LOAN.
1-A. AS USED IN THIS ARTICLE, THE TERM "LOAN" SHALL INCLUDE ANY GRANT
MADE BY A MUNICIPALITY PURSUANT TO THIS ARTICLE, PROVIDED, HOWEVER, THAT
PROVISIONS OF THIS ARTICLE CONCERNING THE REPAYMENT OR FORGIVENESS OF,
OR SECURITY FOR, A LOAN SHALL NOT APPLY TO ANY GRANT MADE PURSUANT TO
THIS ARTICLE.
2. Each loan shall be evidenced by a note executed by the [owner-occu-
pant] OWNER of the existing dwelling. Repayment of each such note shall
be within a period of [the probable life of the existing dwelling which
is hereby determined to be thirty years, or such shorter period as the
agency shall determine] FORTY YEARS, PROVIDED THAT SUCH PERIOD MAY BE
EXTENDED AS THE AGENCY MAY DETERMINE NECESSARY TO ENSURE THE CONTINUED
AFFORDABILITY OR ECONOMIC VIABILITY OF THE EXISTING DWELLING. The
repayment shall be made in such manner as may be provided in such note
and contract, if any, in connection with such loan, and may authorize
such [owner-occupant] OWNER, with the consent of the agency, to prepay
the principal of the loan subject to such terms and conditions as there-
in provided. In order to make any such loan affordable to the [owner-oc-
cupant] OWNER, the agency may provide in such note and contract that all
of the outstanding principal of said loan may be self-liquidated over a
[fifteen year] period of [owner-occupancy] NOT LESS THAN FIFTEEN YEARS
OF CONTINUOUS COMPLIANCE BY THE OWNER WITH A REGULATORY AGREEMENT OR
OTHER RESTRICTIVE COVENANT WITH OR APPROVED BY THE AGENCY AND UPON THE
SATISFACTION OF ANY ADDITIONAL CONDITIONS SPECIFIED THEREIN. Such note
and contract may contain such other terms and provisions not inconsist-
ent with the provisions of this article as the agency may deem necessary
or desirable to secure repayment of the loan, the interest thereon, if
any, and other charges in connection therewith, and to carry out the
purposes and provisions of this article, INCLUDING, BUT NOT LIMITED TO,
PROVIDING THAT THE LIEN CREATED BY THE NOTE AND MORTGAGE, AND, IF APPLI-
CABLE, ANY REGULATORY AGREEMENT EXECUTED BY SUCH OWNER AND AGENCY, OR
RESTRICTIVE COVENANT APPROVED BY SUCH AGENCY, MAY BE RECORDED IN AN
EQUAL OR SUBORDINATE POSITION, OR SUBSEQUENTLY MADE EQUAL OR SUBORDI-
NATE, TO A LIEN RECORDED BY ANY PRIVATE LENDER AGAINST SUCH EXISTING
DWELLING.
3. The agency in its discretion may require that the [owner-occupant]
OWNER execute, acknowledge and deliver a uniform commercial code financ-
ing statement for the real property improvement to be in such form as
the agency shall specify and in accordance with the requirements of
section 9--502 of the uniform commercial code of the state of New York.
Said financing statement shall be filed or recorded without charge in
accordance with the provisions of paragraph one of subsection (a) of
section 9--501 of the uniform commercial code, and from the date of such
filing the municipality shall have a lien against said real property
improvement for the amount advanced or so much thereof as remains unpaid
together with the interest thereon. Upon payment of all sums advanced by
the municipality and interest thereon, and upon demand of the then
S. 2985--A 16
record owner of the real property, the agency shall deliver a copy of
the financing statement with an endorsement thereon that the lien is
satisfied. Upon filing of such copy in the office where the financing
statement was filed and upon payment of the proper fee therefor, the
lien of such financing statement shall be discharged.
4. The agency may require the [owner-occupant] OWNER to execute a
mortgage as security for a loan in lieu of or in addition to a financing
statement as provided in subdivision three of this section. Such mort-
gage shall contain such terms and provisions not inconsistent with the
provisions of this article as the agency shall deem necessary or desira-
ble to secure repayment of the loan.
5. Loans may be made with respect to a one to four unit private or
multiple dwelling encumbered by mortgages, provided no mortgage is in
default, except if such default shall be remedied by the proposed reha-
bilitation or improvement.
6. The agency may [charge] REQUIRE the [owner-occupant] PAYMENT OF
CHARGES BY THE OWNER of such existing private or multiple dwelling
[reasonable fees] IN CONSIDERATION for [administration,] THE financing,
regulation, supervision and audit OF SUCH LOAN. SUCH CHARGES SHALL BE
PAID INTO THE TREASURY OF THE MUNICIPALITY REQUIRING THE CHARGES AND
SHALL BE PAID AND DEPOSITED IN THE GENERAL FUND OF ANY SUCH MUNICI-
PALITY.
7. In making a loan under this article, an agency shall have the power
to participate in a loan made by any private investor[, provided that
the portion of the loan funded by the agency shall not exceed an amount
equal to seventy-five percent of the total loan.] The agency may enter
into an agreement with a private investor to deposit funds with such
private investor to cover the agency's participation in loans to
[owner-occupants] OWNERS of one to four unit existing private and multi-
ple dwellings with such funds advanced by such private investor to
[owner-occupants] OWNERS of existing dwellings. The portion of the loan
funded by the agency may be equal to or subordinate in lien to the
portion of the loan funded by the private investor and the note and
contract may contain such terms with respect to interest rate, if any,
and time of payment of principal and interest as determined by the agen-
cy. The agency may make provision, either in the mortgage or mortgages
or by separate agreement, for the performance by the private investor of
such services as are generally performed by a banking institution which
itself holds a mortgage, including, without limitation, construction
loan advances, construction supervision, initiation of foreclosure
proceedings, procurement of insurance, and all other matters in
connection with the financing, supervision, regulation and audit of any
such loan. In order to make the loan affordable to the [owner-occupant]
OWNER, the agency may provide an interest reduction subsidy pursuant to
section four hundred seventy-five of this article, or may provide that
all or part of the agency's portion of the outstanding principal of any
such participation loan may be self-liquidated over a [fifteen year]
period of [owner-occupancy] NOT LESS THAN FIFTEEN YEARS OF CONTINUOUS
COMPLIANCE BY THE OWNER WITH A REGULATORY AGREEMENT OR OTHER RESTRICTIVE
COVENANT WITH OR APPROVED BY THE AGENCY AND UPON THE SATISFACTION OF ANY
ADDITIONAL CONDITIONS SPECIFIED THEREIN.
§ 23. Subdivisions 1 and 2 of section 473 of the private housing
finance law, as added by chapter 786 of the laws of 1987, are amended to
read as follows:
1. No such loan shall be made to an [owner-occupant] OWNER of an
existing private or multiple dwelling unless the [owner-occupant] OWNER
S. 2985--A 17
of such private or multiple dwelling shall covenant in writing that so
long as any part of such loan shall remain unpaid OR ANY REQUIREMENT
IMPOSED AS A CONDITION FOR MAKING SUCH LOAN THAT SURVIVES THE REPAYMENT
OF SUCH LOAN, INCLUDING, BUT NOT LIMITED TO, IN A REGULATORY AGREEMENT
EXECUTED BY SUCH OWNER AND THE AGENCY OR A RESTRICTIVE COVENANT APPROVED
BY SUCH AGENCY, REMAINS IN EFFECT: (i) the [owner-occupant] OWNER or
managing agent or operator of such dwelling shall permit the duly
authorized officers, employees, agents or inspectors of the agency to
enter in or upon and inspect such private or multiple dwelling at all
reasonable hours; (ii) the agency by such duly authorized represen-
tatives as aforesaid shall have full power to investigate into and order
the [owner-occupant] OWNER of such dwelling to furnish such reports and
information as it may require concerning such rehabilitation or improve-
ment and shall have full power to audit the books of said owner with
respect to such matters; and (iii) if the property to be rehabilitated
is a multiple dwelling, the [owner-occupant] OWNER will submit to the
agency annually a statement of income and expenses of such dwelling, in
such form as shall be approved by the agency.
2. A municipality shall neither make nor participate in a loan to an
[owner-occupant] OWNER of an existing private or multiple dwelling
pursuant to this article unless the agency finds that (I) the area in
which such dwelling is situated is a blighted, deteriorated or deteri-
orating area or has a blighting influence on the surrounding area, or is
in danger of becoming a slum or a blighted area because of the existence
of substandard, unsanitary, deteriorating or deteriorated conditions, an
aged housing stock, or other factors indicating an inability of the
private sector to cause such rehabilitation to be made; (II) THE LOAN
WILL BE USED TO FINANCE THE CONVERSION OF A BASEMENT OR CELLAR IN SUCH
PRIVATE OR MULTIPLE DWELLING TO ONE OR MORE LAWFUL DWELLING UNITS AND
ANY ADDITIONAL REHABILITATION OR IMPROVEMENT OF SUCH DWELLING; OR (III)
THE OWNER OF SUCH PRIVATE OR MULTIPLE DWELLING IS A PERSON OR FAMILY OF
LOW INCOME.
§ 24. Subdivision 2 of section 474 of the private housing finance law,
as added by chapter 786 of the laws of 1987, is amended to read as
follows:
2. The agency is authorized to make provision in the note and loan
agreement or by separate agreement for the servicing of such loans by a
loan servicing company OR OTHER QUALIFIED ENTITY, AS DETERMINED BY THE
AGENCY, and such services may include, but not be limited to, the
collection of the debt services on such loans and the establishment,
administration, and distribution of an escrow account for the payment of
the [owner-occupant's] OWNER'S real estate taxes, sewer and water rents
and fire insurance.
§ 25. Section 475 of the private housing finance law, as added by
chapter 786 of the laws of 1987, is amended to read as follows:
§ 475. Interest reduction subsidies. Notwithstanding the provisions of
any general, special or local law, a municipality, acting through an
agency, is authorized to provide, or contract to provide, interest
reduction subsidies for loans made by private investors to [low and
moderate income owner-occupants] OWNERS of one to four unit existing
private or multiple dwellings within its territorial limits, if such
[owner-occupants] OWNERS would have been eligible under the provisions
of this article for a loan made by the municipality pursuant to this
article.
S. 2985--A 18
§ 26. Subdivision 1 of section 576-c of the private housing finance
law, as amended by section 1 of chapter 254 of the laws of 1998, is
amended to read as follows:
1. In addition to the powers granted to municipalities pursuant to
this article, a municipality, acting by its supervising agency, may make
loans for the purposes of acquisition, rehabilitation or construction of
dwelling accommodations to a non-profit housing development fund compa-
ny, a wholly-owned subsidiary of such company, a partnership the
controlling interest of which is held by such company and which has
agreed to limit profits or rate of return of investors in accordance
with a formula established or approved by the company, or a private
developer which has agreed to limit profits or rate of return of inves-
tors in accordance with a formula established or approved by the compa-
ny, which agrees to provide housing accommodations exclusively for
persons and families of low income, at least thirty percent of whom are
referred to it by a municipality and have prior to their initial occu-
pancy in such accommodations resided in emergency shelter facilities
operated by or on behalf of the municipality or who are otherwise in
need of emergency shelter as determined by the municipality, providing,
however, that in the case of a building acquired by such a company,
subsidiary, partnership, or developer the obligation to provide housing
accommodations for such persons shall be applicable only to dwelling
accommodations which are or become vacant after the date of acquisition.
Such loans may be made for such period of time and pursuant to such
terms and conditions as may be required by the municipality, INCLUDING,
BUT NOT LIMITED TO, TERMS AND CONDITIONS PROVIDING THAT THE LIEN CREATED
BY THE NOTE AND MORTGAGE, AND, IF APPLICABLE, ANY REGULATORY AGREEMENT
EXECUTED BY THE OWNER AND SUCH MUNICIPALITY OR RESTRICTIVE COVENANT
APPROVED BY A SUPERVISING AGENCY, MAY BE RECORDED IN AN EQUAL OR SUBOR-
DINATE POSITION, OR SUBSEQUENTLY MADE EQUAL OR SUBORDINATE, TO A LIEN
RECORDED BY ANY PRIVATE LENDER AGAINST THE DWELLING AIDED BY THE LOAN
MADE PURSUANT TO THIS ARTICLE, and the supervising agency of such muni-
cipality may provide that the amount of the note and mortgage shall
automatically be reduced to zero in five equal decrements commencing on
the tenth year after the initial occupancy date, provided that, as of
the date of such reduction, such accommodations have been and continue
to be owned and operated in a manner consistent with an agreement with
the municipality contained in such note and mortgage to provide housing
for such persons. Notwithstanding such provision as contained in the
note and mortgage, the loan shall be reduced to zero only if, prior to
or simultaneously with delivery of such note and mortgage, the supervis-
ing agency made a written determination that such reduction would be
necessary to ensure the continued affordability or economic viability of
such housing project. Such written determination shall document the
basis upon which the loan was determined to be eligible for evaporation.
§ 27. Section 576-c of the private housing finance law, as amended by
section 2 of chapter 254 of the laws of 1998, is amended to read as
follows:
§ 576-c. Loans to housing development companies by a municipality. In
addition to the powers granted to municipalities pursuant to this arti-
cle, a municipality, acting by its supervising agency, may make loans
for the purposes of acquisition, rehabilitation or construction of
dwelling accommodations to a non-profit housing development fund compa-
ny, a wholly-owned subsidiary of such company, a partnership the
controlling interest of which is held by such company and which has
agreed to limit profits or rate of return of investors in accordance
S. 2985--A 19
with a formula established or approved by the company, or a private
developer which has agreed to limit profits or rate of return of inves-
tors in accordance with a formula established or approved by the compa-
ny, which agrees to provide housing accommodations exclusively for
persons and families of low income, at least thirty percent of whom are
referred to it by a municipality and have prior to their initial occu-
pancy in such accommodations resided in emergency shelter facilities
operated by or on behalf of the municipality or who are otherwise in
need of emergency shelter as determined by the municipality, providing,
however, that in the case of a building acquired by such a company,
subsidiary, partnership, or developer the obligation to provide housing
accommodations for such persons shall be applicable only to dwelling
accommodations which are or become vacant after the date of acquisition.
Such loans may be made for such period of time and pursuant to such
terms and conditions as may be required by the municipality, INCLUDING,
BUT NOT LIMITED TO, TERMS AND CONDITIONS PROVIDING THAT THE LIEN CREATED
BY THE NOTE AND MORTGAGE, AND, AS APPLICABLE, ANY REGULATORY AGREEMENT
EXECUTED BY THE OWNER AND SUCH MUNICIPALITY, MAY BE RECORDED IN AN EQUAL
OR SUBORDINATE POSITION, OR SUBSEQUENTLY MADE EQUAL OR SUBORDINATE, TO
THE LIEN RECORDED BY ANY PRIVATE LENDER AGAINST THE DWELLING AIDED BY
THE LOAN MADE PURSUANT TO THIS ARTICLE, and the supervising agency of
such municipality may provide that the amount of the note and mortgage
shall automatically be reduced to zero in five equal decrements commenc-
ing on the tenth year after the initial occupancy date, provided that,
as of the date of such reduction, such accommodations have been and
[continues] CONTINUE to be owned and operated in a manner consistent
with an agreement with the municipality contained in such note and mort-
gage to provide housing for such persons. Notwithstanding such
provision as contained in the note and mortgage, the loan shall be
reduced to zero only if, prior to or simultaneously with delivery of
such note and mortgage, the supervising agency made a written determi-
nation that such reduction would be necessary to ensure the continued
affordability or economic viability of such housing project. Such writ-
ten determination shall document the basis upon which the loan was
determined to be eligible for evaporation.
§ 28. The private housing finance law is amended by adding four new
sections 611, 612, 613 and 614 to read as follows:
§ 611. RENT STABILIZATION AND REGULATORY AGREEMENTS. 1. NOTWITHSTAND-
ING ANY OTHER PROVISION OF LAW, INCLUDING THE PROVISIONS OF, OR ANY
REGULATION PROMULGATED PURSUANT TO, THE EMERGENCY TENANT PROTECTION ACT
OF NINETEEN SEVENTY-FOUR OR THE RENT STABILIZATION LAW OF NINETEEN
HUNDRED SIXTY-NINE, THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL,
WHEN SUPERVISING HOUSING ACCOMMODATIONS UNDER PROVISIONS OF LAW OTHER
THAN THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THE
RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE, THE NEW YORK CITY
DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT, THE NEW YORK STATE
URBAN DEVELOPMENT CORPORATION, THE NEW YORK STATE HOUSING FINANCE AGEN-
CY, THE NEW YORK STATE HOUSING TRUST FUND, AND THE NEW YORK CITY HOUSING
DEVELOPMENT CORPORATION, OR SUCH OTHER STATE OR MUNICIPAL AGENCY, POLI-
TICAL SUBDIVISION, PUBLIC BENEFIT CORPORATION, OR INSTRUMENTALITY AS
THE STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL IDENTIFY, MAY,
BY AGREEMENT WITH AN OWNER OF A MULTIPLE DWELLING, SUBJECT ANY HOUSING
ACCOMMODATION IN SUCH MULTIPLE DWELLING TO THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR OR THE RENT STABILIZATION LAW OF
NINETEEN HUNDRED SIXTY-NINE, OR BOTH, IF APPLICABLE TO THE MUNICIPALITY.
THE REQUIREMENTS OF SUCH AGREEMENT SHALL SUPPLEMENT ANY REQUIREMENTS
S. 2985--A 20
IMPOSED ON SUCH HOUSING ACCOMMODATION PURSUANT TO ANY OTHER PROVISIONS
OF LAW.
2. ANY AGREEMENT BETWEEN A STATE OR MUNICIPAL AGENCY, POLITICAL SUBDI-
VISION, PUBLIC BENEFIT CORPORATION, OR INSTRUMENTALITY DESCRIBED IN
SUBDIVISION ONE OF THIS SECTION AND AN OWNER OF A MULTIPLE DWELLING THAT
CONTAINS PROVISIONS THAT ARE CONSISTENT WITH SUBDIVISION ONE OF THIS
SECTION AND THAT IS IN EFFECT AS OF THE EFFECTIVE DATE OF THIS SECTION
IS AND WILL REMAIN VALID AND ENFORCEABLE.
§ 612. COMPLIANCE MONITORING. 1. ANY SUPERVISING AGENCY AND ANY CORPO-
RATE GOVERNMENTAL AGENCY THAT CONSTITUTES A PUBLIC BENEFIT CORPORATION
CREATED PURSUANT TO THIS CHAPTER SHALL HAVE THE POWER TO: (A) SUBPOENA,
REQUIRE THE ATTENDANCE OF AND EXAMINE AND TAKE TESTIMONY UNDER OATH OF
SUCH PERSONS AS IT DEEMS NECESSARY TO MONITOR, AND ENFORCE COMPLIANCE
WITH, A NOTE, MORTGAGE, OTHER FINANCING AGREEMENT, REGULATORY AGREEMENT,
DEED, LAND DISPOSITION AGREEMENT, OR RESTRICTIVE COVENANT WITH OR
APPROVED BY SUCH AGENCY OR CORPORATION AND ENTERED INTO IN CONNECTION
WITH AN ACTION TAKEN PURSUANT TO THIS CHAPTER, THE GENERAL MUNICIPAL
LAW, THE REAL PROPERTY TAX LAW, OR THE NEW YORK CITY ZONING RESOLUTION;
AND (B) SUBPOENA AND REQUIRE THE PRODUCTION OF BOOKS, ACCOUNTS, PAPERS,
DOCUMENTS AND OTHER EVIDENCE RELATED TO SUCH MONITORING AND ENFORCEMENT.
2. ANY PERSON WHO HAS BEEN ISSUED A SUBPOENA, OR ANY OTHER REQUIRE-
MENT TO TESTIFY OR PRODUCE BOOKS AND RECORDS, PURSUANT TO SUBDIVISION
ONE OF THIS SECTION, SHALL BE REQUIRED TO COMPLY WITH SUCH SUBPOENA OR
OTHER REQUIREMENT WITHIN A REASONABLE PERIOD OF TIME ESTABLISHED BY THE
SUPERVISING AGENCY OR PUBLIC BENEFIT CORPORATION THAT ISSUED SUCH
SUBPOENA. EACH DAY IN WHICH A PERSON FAILS TO COMPLY WITH SUCH SUBPOENA,
OR WITH ANY OTHER SUCH REQUIREMENT TO TESTIFY OR PRODUCE BOOKS AND
RECORDS, SHALL CONSTITUTE A SEPARATE VIOLATION OF THIS SECTION. THE
CIVIL PENALTY FOR EACH SUCH VIOLATION SHALL BE NOT MORE THAN TWO HUNDRED
FIFTY DOLLARS, PROVIDED THAT SUCH PENALTY SHALL NOT APPLY TO ANY PERIOD
DURING WHICH SUCH SUBPOENA OR OTHER REQUIREMENT TO TESTIFY OR PRODUCE
BOOKS AND RECORDS IS THE SUBJECT OF A PENDING JUDICIAL PROCEEDING
COMMENCED PRIOR TO THE EXPIRATION OF THE PERIOD OF TIME ESTABLISHED BY
SUCH SUPERVISING AGENCY OR PUBLIC BENEFIT CORPORATION FOR COMPLIANCE
WITH SUCH SUBPOENA OR OTHER REQUIREMENT TO TESTIFY OR PRODUCE BOOKS AND
RECORDS.
3. ANY SUCH SUPERVISING AGENCY OR PUBLIC BENEFIT CORPORATION MAY
PROMULGATE RULES AND REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS
SECTION.
§ 613. CHARGES. A MUNICIPALITY, OR A SUPERVISING AGENCY THEREUNDER,
MAY REQUIRE THE PAYMENT OF CHARGES BY AN OWNER IN CONSIDERATION FOR
FINANCING, REGULATION, SUPERVISION AND AUDIT OF LOANS AND GRANTS MADE
PURSUANT TO THE PROVISIONS OF THIS CHAPTER. SUCH CHARGES SHALL BE PAID
INTO THE TREASURY OF THE MUNICIPALITY REQUIRING THE CHARGES AND SHALL BE
PAID AND DEPOSITED IN THE GENERAL FUND OF ANY SUCH MUNICIPALITY.
§ 614. SERVICING LOANS. AN AGENCY MAY MAKE PROVISION IN A NOTE AND
LOAN AGREEMENT OR BY SEPARATE AGREEMENT FOR THE PERFORMANCE OF LOAN OR
GRANT SERVICING FUNCTIONS, INCLUDING, BUT NOT LIMITED TO, FUNCTIONS
RELATED TO LENDING OR PROVIDING A GRANT FOR CONSTRUCTION, AS MAY GENER-
ALLY BE PERFORMED BY AN INSTITUTIONAL LENDER. SUCH AGENCY MAY ACT IN
SUCH CAPACITY OR APPOINT OR CONSENT TO THE APPOINTMENT OF A FINANCIAL
INSTITUTION OR OTHER QUALIFIED ENTITY, AS DETERMINED BY SUCH AGENCY, TO
ACT IN SUCH CAPACITY ON BEHALF OF SUCH AGENCY. SUCH AGENCY MAY PAY A
REASONABLE AND CUSTOMARY FEE TO SUCH FINANCIAL INSTITUTION OR OTHER
QUALIFIED ENTITY APPOINTED BY SUCH AGENCY, OR TO WHOSE APPOINTMENT SUCH
S. 2985--A 21
AGENCY PROVIDED CONSENT, FOR THE PERFORMANCE OF SUCH LOAN OR GRANT
SERVICING FUNCTIONS.
§ 29. Section 800 of the private housing finance law, as amended by
chapter 456 of the laws of 2003, is amended to read as follows:
§ 800. Policy and purposes of article. It is hereby declared and found
that there exists in municipalities in this state substandard and insan-
itary areas and neighborhoods characterized by undermaintained and dete-
riorating housing accommodations and under-utilized non-residential
buildings and under-utilized vacant land. It is further found that there
exists in such municipalities a diminishing and seriously inadequate
supply of safe and sanitary dwelling accommodations, particularly for
persons of low income; that the loss of housing accommodations is caused
by the inability of the ordinary unaided operations of private enter-
prise to make loans for rehabilitation or construction purposes or for
conversion which accelerates the process of deterioration and abandon-
ment, turning active and viable neighborhoods into slums and blighted
areas; and that the prevention of deterioration and loss through aban-
donment can only be achieved by the elimination of conditions which are
unsafe or detrimental to health, the replacement of antiquated heating,
plumbing, and electrical systems and, where necessary, the overall reha-
bilitation of certain housing accommodations, the construction of new
housing accommodations on vacant land and the conversion of under-uti-
lized non-residential property to residential use, and that the unavail-
ability of funds for the conversion of under-utilized property to resi-
dential use, for the preservation and rehabilitation of housing
accommodations and for the construction of new housing accommodations on
vacant land constitutes a threat to the health, safety and well-being of
the persons who occupy them and denies to others the possibility of
living in safe and sanitary housing accommodations.
In order to promote the preservation and rehabilitation of such hous-
ing accommodations, the creation of new housing accommodations by the
conversion of under-utilized non-residential property into multiple
dwellings and the construction of new housing accommodations on vacant
land in such areas and to encourage the investment of private capital in
such areas, provision should be made for a municipality to attract
private investment for such purposes by utilizing funds, which are
available from the federal government through specific or discretionary
grants, or are available from other financing sources, for joint partic-
ipation loans with private investors, OR LOANS OR GRANTS BY THE MUNICI-
PALITY, to effect the required construction, rehabilitation or conver-
sion.
The necessity in the public interest for the provisions hereinafter
enacted is hereby declared as a matter of legislative determination.
§ 30. Subdivision 5 of section 801 of the private housing finance law,
as amended by chapter 456 of the laws of 2003, is amended to read as
follows:
5. "Owner" shall mean an individual, partnership, corporation or other
entity, including a non-profit company, a mutual company, or a housing
development fund company, which holds record OR BENEFICIAL title in fee
simple to the existing multiple dwelling to be rehabilitated or the
non-residential property to be converted into a multiple dwelling and
the real property upon which it is situate or to vacant land upon which
the new multiple dwelling is to be constructed, OR IS THE LESSEE OF ANY
SUCH REAL PROPERTY HAVING AN UNEXPIRED TERM OF AT LEAST THIRTY YEARS.
§ 31. Section 801 of the private housing finance law is amended by
adding a new subdivision 5-a to read as follows:
S. 2985--A 22
5-A. "PARTICIPATION LOAN" AND THE MUNICIPALITY'S "PARTICIPATION" IN,
"PORTION" OF, OR "INVESTMENT" IN A LOAN, OR WORDS OF SIMILAR MEANING,
SHALL MEAN ANY LOAN OR GRANT MADE BY THE MUNICIPALITY OR THE NEW YORK
CITY HOUSING DEVELOPMENT CORPORATION PURSUANT TO THIS ARTICLE EITHER
WITH OR WITHOUT A PRIVATE INVESTOR, PROVIDED, HOWEVER, THAT PROVISIONS
OF THIS ARTICLE CONCERNING THE REPAYMENT OR FORGIVENESS OF, OR SECURITY
FOR, A LOAN SHALL NOT APPLY TO ANY GRANT MADE PURSUANT TO THIS ARTICLE.
§ 32. Subdivision 6 of section 801 of the private housing finance law,
as amended by chapter 456 of the laws of 2003, is amended to read as
follows:
6. "Private investor" shall mean one or more banking organizations,
foundations, labor unions, credit unions, employers' associations,
veterans' organizations, colleges, universities, educational insti-
tutions, child care institutions, hospitals, medical research insti-
tutes, insurance companies, trustees or fiduciaries, trustees of pension
and retirement funds and systems, corporations, partnerships, individ-
uals or other entities or any combination of the foregoing, and shall
include the United States of America and THE STATE OF NEW YORK AND any
[of its agencies acting as a lender under the loan program pursuant to
section three hundred twelve of the housing act of nineteen hundred
sixty-four and any amendments thereto or any similar program] AGENCY,
OFFICE OR PUBLIC BENEFIT CORPORATION THEREOF. As used in this subdivi-
sion, the terms "trustees" and "fiduciaries" shall include any fiduciary
or fiduciaries holding funds for investment, and the term "banking
organizations" shall have the same meaning as in subdivision eleven of
section two of the banking law.
§ 33. Subdivisions 1, 3 and 4 of section 802 of the private housing
finance law, subdivisions 1 and 3 as amended by chapter 456 of the laws
of 2003 and subdivision 4 as added by chapter 822 of the laws of 1976,
are amended to read as follows:
1. (A) Notwithstanding the provisions of any general, special or local
law, one or more private investors and a municipality, acting through
its agency, shall have the power to participate and invest in making
loans to the owners of existing multiple dwellings or to the owners of
non-residential property or to the owners of vacant land subject to the
limitations of subdivisions two through seven of this section, in such
amounts as shall be required for (I) the rehabilitation of such existing
multiple dwellings or for the conversion of such non-residential proper-
ty or for the construction of [a] new multiple [dwelling] DWELLINGS on
such vacant land, PROVIDED THAT SUCH REHABILITATION, CONVERSION OR
CONSTRUCTION MAY INCLUDE CLIMATE RESILIENCY IMPROVEMENTS, and if any
such owner acquires the existing multiple dwelling or the non-residen-
tial property or the vacant land for the purpose of such rehabilitation,
conversion or construction or owns the existing multiple dwelling or the
non-residential property or the vacant land subject to an outstanding
indebtedness, such loans MAY BE MADE EXCLUSIVELY FOR OR may include such
amounts as may be required for the cost of such acquisition or for the
refinancing of such outstanding indebtedness, (II) PROVIDING SITE
IMPROVEMENTS LOCATED ON THE PROPERTY ON WHICH SUCH EXISTING MULTIPLE
DWELLINGS ARE LOCATED OR ON SUCH NON-RESIDENTIAL PROPERTY OR VACANT LAND
OR IN A PUBLIC RIGHT-OF-WAY, INCIDENTAL OR APPURTENANT TO SUCH REHABILI-
TATION, CONVERSION OR CONSTRUCTION, INCLUDING, BUT NOT LIMITED TO, WATER
AND SEWER FACILITIES, SIDEWALKS, LANDSCAPING, PARKS AND OPEN SPACE,
SOCIAL, RECREATIONAL, COMMUNAL AND OTHER NON-RESIDENTIAL FACILITIES AND
THE OUTFITTING THEREOF, THE CURING OF PROBLEMS CAUSED BY ABNORMAL SITE
CONDITIONS, EXCAVATION AND CONSTRUCTION OF FOOTINGS AND FOUNDATIONS AND
S. 2985--A 23
OTHER IMPROVEMENTS ASSOCIATED WITH THE PROVISION OF INFRASTRUCTURE FOR
HOUSING ACCOMMODATIONS, OR (III) PROVIDING FOR OTHER COSTS OF DEVELOPING
HOUSING ACCOMMODATIONS, and such private investors and a municipality
may jointly participate or invest in the making of temporary loans or
advances to such owners in anticipation of the permanent participation
loans for such purposes.
(B) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
LAW, AND IN ADDITION TO THE POWER TO MAKE OR CONTRACT TO MAKE PARTIC-
IPATION LOANS GRANTED BY PARAGRAPH (A) OF THIS SUBDIVISION, THE MUNICI-
PALITY, ACTING THROUGH ITS AGENCY, AND THE NEW YORK CITY HOUSING DEVEL-
OPMENT CORPORATION SHALL EACH HAVE THE POWER TO MAKE OR CONTRACT TO MAKE
LOANS OR GRANTS TO ANY OWNER DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVI-
SION WITHOUT THE PARTICIPATION OF A PRIVATE INVESTOR, ON THE SAME TERMS
AS PERMITTED UNDER SUCH PARAGRAPH FOR A PARTICIPATION LOAN.
3. [(a)] Each participation loan shall be secured by a bond or note
and single participating mortgage or by separate bonds or notes and
mortgages upon the existing multiple dwelling or the non-residential
property and the land upon which it is situated or, in the case of the
construction of a new multiple dwelling, upon the vacant land and the
multiple dwelling to be constructed, OR, IN THE CASE OF A MULTIPLE
DWELLING HELD IN THE CONDOMINIUM FORM OF OWNERSHIP, A NOTE AND MORTGAGE
UPON THE CONDOMINIUM UNITS REHABILITATED WITH SUCH PARTICIPATION LOAN,
PROVIDED THAT A PARTICIPATION LOAN TO AN OWNER WHO IS A LESSEE SHALL BE
SECURED BY A LEASEHOLD INTEREST IN SUCH PROPERTY, AND provided, FURTHER,
that each such loan shall be made upon such terms and conditions as may
be approved by the agency, including but not limited to, provisions that
[(i)] (A) priority may be given to the payment of the principal of and
interest on that portion of the mortgage indebtedness attributable to
participation in the loan by one or more private investors, [(ii)] (B)
the interest of the municipality created as a result of making such a
mortgage loan may be subordinated to the interest that one or more of
such private investors may have upon such participation, [(iii)] (C) the
interest of each upon such participation need not be of equal priority
as to lien nor be equal as to interest rate, time or rate of amorti-
zation of principal or time of payment of interest, or otherwise, [(iv)]
(D) the bond or note and mortgage may provide that the municipality's
portion of a participation loan made to an owner shall be reduced to
zero commencing in the fifteenth year after the execution of the bond or
note and mortgage, provided that, as of the date of any such reduction,
such multiple dwelling has been and continues to be owned and operated
in a manner consistent with a regulatory agreement with the munici-
pality. Notwithstanding such provision as contained in the bond or note
and mortgage, the municipality's portion of the loan shall be reduced to
zero only if, prior to or simultaneously with delivery of such bond or
note and mortgage, the agency made a written determination that such
reduction would be necessary to ensure the continued affordability or
economic viability of the multiple dwelling. Such written determination
shall document the basis upon which the loan was determined to be eligi-
ble for evaporation.
[(b) The aggregate amount of each such participation loan shall not
exceed the cost of the rehabilitation, conversion or construction, plus
the costs of any or all undertakings necessary for the planning, financ-
ing, acquisition, satisfaction of tax liens and other municipal liens
and encumbrances, construction, equipment and development in connection
therewith, provided that, if any portion of such loan is used for the
cost of acquisition or for refinancing, the amount of a municipality's
S. 2985--A 24
portion of such loan shall not exceed one and one-half times the cost of
rehabilitation, conversion or construction.
(c) The amount of any such loan, together with the amount of all prior
liens and encumbrances, shall not exceed, except in the case of a loan
made to a non-profit company, a mutual company, or a housing development
fund company, ninety per centum of value unless the agency makes a writ-
ten determination that the owner has insufficient resources to pay for
the remaining ten per centum of value, in which case such loan shall not
exceed ninety-five per centum of value. The amount of any such loan,
together with the amount of all prior liens and encumbrances, made to a
non-profit company, a mutual company, or a housing development fund
company shall not exceed value, provided that when after completion of
such rehabilitation, conversion or construction, such multiple dwelling
is, or is to be operated, exclusively for the benefit of persons and
families who are entitled to occupancy by reason of ownership of stock
in the corporate owners, such loan shall not exceed ninety-eight per
centum of value unless the agency makes a written determination that the
owner has insufficient resources to pay for the remaining two per centum
of value, in which case such loan shall not exceed value.]
4. Each such bond or note and mortgage or bonds or notes and mortgages
shall be repaid over or within a period of [thirty] FORTY years,
PROVIDED THAT SUCH PERIOD MAY BE EXTENDED AS THE AGENCY MAY DETERMINE
NECESSARY TO ENSURE THE CONTINUED AFFORDABILITY OR ECONOMIC VIABILITY OF
THE MULTIPLE DWELLING, in such manner as may be provided in such bond or
note and mortgage or bonds or notes and mortgages [but in no case shall
the term of such loan exceed the probable life of the multiple dwelling
which is hereby determined to be thirty years]. Such bond or note and
mortgage or bonds or notes and mortgages and any contract in connection
with such permanent and temporary loans may contain such other terms and
provisions not inconsistent with the provisions of this article as the
local legislative body or the agency may deem necessary or desirable to
secure repayment of the loan, the interest thereon and other charges in
connection therewith and to carry out the purposes and provisions of
this article.
§ 34. Subdivisions 2, 3 and 6 of section 1151 of the private housing
finance law, subdivision 2 as amended by chapter 567 of the laws of 1993
and subdivisions 3 and 6 as added by chapter 639 of the laws of 1989,
are amended to read as follows:
2. "Eligible project" shall mean a project intended to construct new
housing accommodations on an eligible site by new construction or
substantial rehabilitation, PROVIDED THAT SUCH NEW CONSTRUCTION OR
SUBSTANTIAL REHABILITATION MAY INCLUDE CLIMATE RESILIENCY IMPROVEMENTS.
An eligible project shall serve the needs of persons of low income,
including privately-owned one to four family dwellings, condominiums and
cooperatives, and rental projects.
3. ["Development costs" shall mean the reasonable and necessary costs
for planning, financing, acquisition of land or buildings and
construction of new buildings or the reconstruction, rehabilitation,
repair or remodeling of existing buildings and the costs of necessary
site improvements] "PARTICIPATION LOAN" AND THE CITY'S "PARTICIPATION"
IN, "PORTION" OF, OR "INVESTMENT" IN A LOAN, OR WORDS OF SIMILAR MEAN-
ING, SHALL MEAN ANY LOAN OR GRANT MADE BY THE AGENCY PURSUANT TO THIS
ARTICLE EITHER WITH OR WITHOUT A PRIVATE LENDER, PROVIDED, HOWEVER, THAT
PROVISIONS OF THIS ARTICLE CONCERNING THE REPAYMENT OR FORGIVENESS OF,
OR SECURITY FOR, A LOAN SHALL NOT APPLY TO ANY GRANT.
S. 2985--A 25
6. "Loan" shall mean a [first] mortgage loan made by a private lender
in participation with the city of New York to a sponsor for the purpose
of construction of an eligible project including a loan in which the
portion of the loan funded by the agency is represented by a separate
note and mortgage.
§ 35. Section 1152 of the private housing finance law, as added by
chapter 639 of the laws of 1989, subdivision 4 as amended and subdivi-
sion 13 as added by chapter 241 of the laws of 1998, subdivision 12 as
added by chapter 400 of the laws of 1994 and paragraph e of subdivision
12 as amended by chapter 118 of the laws of 2003, is amended to read as
follows:
§ 1152. Affordable housing development loans. 1. (A) Notwithstanding
the provisions of any general, special or local law, one or more private
lenders and the city of New York, acting through the agency, shall have
the power to participate and invest in making loans to sponsors for the
construction of eligible projects. Such loans MAY BE MADE EXCLUSIVELY
FOR OR may include such amounts as may be required for site acquisition
OR THE REFINANCING OF ELIGIBLE PROJECTS. Each such participation loan
shall be secured by a bond or note and single participating mortgage or
by separate bonds or notes and mortgages upon the eligible project. Such
bond or note and mortgage or bonds or notes or mortgages may contain
such other terms and provisions not inconsistent with the provisions of
this article as the agency may deem necessary or desirable, INCLUDING,
BUT NOT LIMITED TO, TERMS PROVIDING THAT THE LIEN CREATED BY SUCH NOTE
AND MORTGAGE, AND, IF APPLICABLE, ANY REGULATORY AGREEMENT EXECUTED BY
THE SPONSOR AND SUCH AGENCY OR RESTRICTIVE COVENANT APPROVED BY SUCH
AGENCY, MAY BE RECORDED IN AN EQUAL OR SUBORDINATE POSITION, OR SUBSE-
QUENTLY MADE EQUAL OR SUBORDINATE, TO THE LIEN CREATED BY ANY PRIVATE
LENDER AGAINST SUCH ELIGIBLE PROJECT.
(B) NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
LAW, AND IN ADDITION TO THE POWER TO MAKE OR CONTRACT TO MAKE PARTIC-
IPATION LOANS GRANTED BY PARAGRAPH (A) OF THIS SUBDIVISION, THE CITY OF
NEW YORK, ACTING THROUGH THE AGENCY, SHALL HAVE THE POWER TO MAKE OR
CONTRACT TO MAKE LOANS OR GRANTS TO ANY OWNER DESCRIBED IN PARAGRAPH (A)
OF THIS SUBDIVISION WITHOUT THE PARTICIPATION OF A PRIVATE LENDER, ON
THE SAME TERMS AS PERMITTED UNDER SUCH PARAGRAPH FOR A PARTICIPATION
LOAN.
2. [The portion of such loan funded by the agency shall not exceed an
amount equal to sixty percent of the actual total development cost of an
eligible project.] The agency may enter into an agreement with a private
lender to deposit its share of a loan with the private lender to be
advanced by the private lender. The portion of the loan funded by the
agency may be equal to or subordinate in lien to the portion of the loan
funded by the private lender and may contain such terms with respect to
interest rate, if any, rate of amortization of principal, if any, and
time of payment of interest and principal as determined by the agency.
The agency may make provision either in the mortgage or mortgages or by
separate agreement for the performance by the private lender of such
services as are generally performed by a banking institution which
itself holds a mortgage, including, without limitation, construction
loan advances, construction supervision, initiation of foreclosure
proceedings, procurement of insurance, and all other matters in
connection with the financing, supervision, regulation and audit of any
such loan to any such eligible project.
3. [If a portion of the loan is to be utilized for acquisition of an
eligible site such portion shall in no event exceed fifteen percent of
S. 2985--A 26
the total amount of such loan or the appraised value of the site, which-
ever is the lesser.
4.] If the eligible project is to consist of one to four unit dwelling
accommodations or cooperative or condominium units, the agency's share
of the loan may be converted after completion of construction into mort-
gages on such dwelling accommodations or condominium units or financing
statements filed with respect to such cooperative shares, provided such
units or such cooperative shares are purchased by persons of [eligible]
LOW income. Such mortgages AND ANY BLANKET MORTGAGE THAT THE AGENCY
RETAINS ON ANY PORTION OF, OR ON ALL OF, THE ELIGIBLE PROJECT may
provide that [they] SUCH MORTGAGES AND SUCH BLANKET MORTGAGE will auto-
matically be reduced to zero over a period of continuous [owner-occupan-
cy of the housing accommodations assisted by such loan] COMPLIANCE BY
THE MORTGAGOR WITH A REGULATORY AGREEMENT OR RESTRICTIVE COVENANT WITH
OR APPROVED BY THE AGENCY AND UPON THE SATISFACTION OF ANY ADDITIONAL
CONDITIONS SPECIFIED THEREIN. Notwithstanding such provision as
contained in such mortgage, the loan shall be reduced to zero only if,
prior to or simultaneously with delivery of such mortgage, the agency
made a written determination that such reduction would be necessary to
ensure the continued affordability or economic viability of the eligible
project. Such written determination shall document the basis upon which
the loan was determined to be eligible for evaporation. Such period of
continuous [owner-occupancy] COMPLIANCE WITH SUCH REGULATORY AGREEMENT
OR RESTRICTIVE COVENANT shall not be less than fifteen years.
[5.] 4. If the eligible project is to consist of one to four unit
dwelling accommodations or cooperative or condominium units, the agency
shall require that the dwelling units be offered only to bona fide
purchasers who intend to occupy a unit as their principal place of resi-
dence; provided, however, that in the case of two to four unit dwelling
accommodations the bona fide purchaser may occupy only a single unit as
a principal place of residence. If the purchaser ceases to occupy the
unit as a principal place of residence, the agency may provide for
recapture of all or a portion of the agency's share of the loan.
[6.] 5. If the eligible project is a rental project, the agency's
share of the loan may be converted after completion of construction into
a [non-interest bearing, non-amortizing thirty year loan] PERMANENT LOAN
WITH A TERM OF FORTY YEARS, PROVIDED THAT SUCH PERIOD MAY BE EXTENDED AS
THE AGENCY MAY DETERMINE IS NECESSARY TO ENSURE THE CONTINUED AFFORDA-
BILITY OR ECONOMIC VIABILITY OF THE ELIGIBLE PROJECT, payable [at the
end of its term, provided that such loan shall be also payable out of
profits upon any sale or refinancing of the project prior to the end of
such thirty year period] IN SUCH MANNER AS MAY BE PROVIDED IN THE NOTE
AND ANY MORTGAGE IN CONNECTION WITH SUCH LOAN. SUCH NOTE AND MORTGAGE
MAY CONTAIN SUCH TERMS AND CONDITIONS AS THE AGENCY MAY DEEM NECESSARY
OR DESIRABLE TO EFFECTUATE THE PURPOSES AND PROVISIONS OF THIS ARTICLE.
The sponsor or any subsequent owner or owners of such a project shall
agree to rent such units only to persons of [eligible] LOW income for
such [thirty year] period [and shall agree that all] AS THE AGENCY MAY
DETERMINE. ALL SUCH units shall be subject to THE EMERGENCY TENANT
PROTECTION ACT OF NINETEEN SEVENTY-FOUR AND the rent stabilization law
of nineteen hundred sixty-nine, as amended [for a period of thirty years
after initial occupancy], unless converted to a cooperative or condomin-
ium pursuant to subdivision [eight] SEVEN of this section. [At the end
of such period each unit shall continue to be subject to such law there-
after until the first vacancy occurs at which time the unit shall be
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decontrolled.] Initial rentals for all rental units shall be set by the
agency.
[7.] 6. If the eligible project is a rental project annual profits
shall be limited to an amount set by the agency for as long as the loan
is outstanding. Excess profits shall be used to establish project
reserves, provide capital improvements or reduce the principal amount of
the agency's loan, as determined by the agency.
[8.] 7. If the eligible project is a rental project, no conversion to
a cooperative or condominium shall be permitted for a period of twenty
years after initial occupancy, and unless (i) the agency's share of the
loan is prepaid upon such conversion, (ii) the conversion shall be done
pursuant to section three hundred fifty-two-eeee of the general business
law as a non-eviction plan, and (iii) apartments occupied by non-pur-
chasing tenants continue to be subject to the rent stabilization law of
nineteen hundred sixty-nine as amended, until the occurrence of a vacan-
cy.
[9.] 8. A loan made pursuant to this article shall be exempt from the
mortgage recording taxes imposed by article eleven of the tax law.
[10.] 9. Notwithstanding the provisions of any general, special or
local law or charter, the agency shall have power, without soliciting
competing bids, to contract with any sponsor or to make provision in a
loan for the construction or reconstruction of any site improvements
located in the public right-of-way OR ON THE ELIGIBLE SITE which are
necessary for the development of an eligible project. Such site improve-
ments may include, but shall not be limited to, streets, sidewalks,
LANDSCAPING, PARKS AND OPEN SPACE, SOCIAL, RECREATIONAL, COMMUNAL AND
OTHER NON-RESIDENTIAL FACILITIES AND THE OUTFITTING THEREOF, lighting
fixtures, and water and sewer lines, INCIDENTAL OR APPURTENANT TO THE
CONSTRUCTION OF SUCH ELIGIBLE PROJECTS.
[11.] 10. No loan shall be made pursuant to the provisions of this
article unless the agency finds that: (a) the construction of the eligi-
ble project does not directly displace current low and moderate income
residents of the eligible site; (b) the eligible project leverages
private and other public investment, if any, so as to reduce the amount
of assistance provided pursuant to this article to the minimal amount
which is necessary for construction of the eligible project; (c) the
eligible project will be built by a private developer/builder who has
agreed to limit its profit in accordance with a formula satisfactory to
the agency; (d) the eligible project will provide assistance to an area
which is blighted or deteriorated or has a blighting influence on the
surrounding area, or is in danger of becoming a slum or a blighted area
because of neighborhood conditions indicating an inability or unwilling-
ness of the private sector to cause the type of construction for which a
loan is to be provided; and (e) the eligible project will make home
ownership or rental housing affordable to persons who cannot presently
afford the housing available based upon the ordinary unaided operation
of private enterprise.
[12.] 11. a. The agency may make non-interest bearing advances to
sponsors to defray the pre-development costs of eligible projects in
accordance with the provisions of this chapter.
b. No such advances shall be made unless the agency finds that: (i)
the sponsor proposes to finance the eligible project in whole or in part
by a loan granted pursuant to this article or that the project, if
otherwise financed, will provide housing for persons or families of low
income, and that such project is otherwise consistent with the purposes
of this article; (ii) the project site is suitable, there is a need for
S. 2985--A 28
the housing type proposed in the area to be served and the project is
feasible; and (iii) it is reasonable to anticipate that financing will
be obtained and the agency makes a finding to that effect.
c. No such advances may be made to a sponsor unless such sponsor
enters into an agreement with the agency which provides that such spon-
sor shall be regulated with respect to rents, profits, dividends and
disposition of its property or franchise, in accordance with the
provisions of this article.
d. An advance granted pursuant to this section shall be used only to
defray the pre-development costs of eligible projects. For purposes of
this subdivision, the term pre-development costs shall include, but
shall not be limited to: the reasonable and necessary costs for plan-
ning, site preparation, developing architectural drawings and conducting
engineering and environmental studies, but shall not include acquisition
of land or buildings, drainage and landscaping of vacant land,
construction of new buildings or the reconstruction or rehabilitation of
existing buildings.
e. Each such advance shall be repaid in full to the agency by the
sponsor. Such repayment shall be made upon receipt by the sponsor or its
successor in interest of the proceeds of its mortgage or construction
loan for the eligible project, unless the agency extends the period for
the repayment of such advances. In no event shall the time of repayment
be extended to a date later than the date of final advance of funds
pursuant to such mortgage or construction loan. Notwithstanding this
paragraph, the agency may reduce such advance to zero over a period of
continued compliance with the agency's agreement with the sponsor pursu-
ant to paragraph c of this subdivision if the agency has made a written
determination that such reduction would be necessary to ensure the
continued affordability or economic viability of the eligible project.
Such written determination shall document the basis upon which the agen-
cy's non-interest bearing advance was determined eligible for evapo-
ration.
f. If the agency, in its discretion, determines at any time that mort-
gage or construction financing for the eligible project may not be
obtained, then all advances made to the sponsor pursuant to this subdi-
vision shall become immediately due and payable upon the demand of the
agency.
[13.] 12. If the eligible project is a rental project, the bond or
note and mortgage or bonds or notes or mortgages issued by the sponsor
of any eligible project to secure a participation loan may provide that
the city's portion of such loan shall be reduced to zero commencing on
the fifteenth year after the execution of such bond or note and mortgage
or bonds or notes or mortgages, provided that, as of the date of any
such reduction, the eligible project has been and continues to be owned
and operated in a manner consistent with a regulatory agreement with the
city. Notwithstanding such provision as contained in the bond or note
and mortgage or bonds or notes or mortgages, the loan shall be reduced
to zero only if, prior to or simultaneously with delivery of such bond
or note and mortgage or bonds or notes or mortgages, the agency made a
written determination that such reduction would be necessary to ensure
the continued affordability or economic viability of the eligible
project. Such written determination shall document the basis upon which
the loan was determined to be eligible for evaporation.
§ 36. Paragraph (g) of subdivision 6 of section 1802 of the charter of
the city of New York, as amended by vote of the people of the city of
S. 2985--A 29
New York at the general election held in November of 1989, is amended to
read as follows:
(g) [impose and collect] REQUIRE THE PAYMENT OF charges [and fees] IN
CONSIDERATION for the financing, regulation, supervision and audit of
municipally-aided projects and loan programs administered by the commis-
sioner, which charges [and fees] shall be [set aside in a special
account for administrative expenses of the department] PAID INTO THE
TREASURY OF THE CITY AND SHALL BE PAID AND DEPOSITED IN THE GENERAL FUND
OF THE CITY;
§ 37. This act shall take effect immediately, provided that: (i) the
amendments to subdivision 1 of section 696-a of the general municipal
law made by section two of this act shall be subject to the expiration
and reversion of such subdivision pursuant to section 2 of chapter 613
of the laws of 1996, as amended, when upon such date the provisions of
section three of this act shall take effect; and (ii) the amendments to
subdivision 1 of section 576-c of the private housing finance law made
by section twenty-six of this act shall be subject to the expiration and
reversion of such subdivision pursuant to section 2 of chapter 84 of the
laws of 1993, as amended, when upon such date the provisions of section
twenty-seven of this act shall take effect.
