§ 1106-a. Definitions. For purposes of this article, the following
terms shall have the following meanings:

1. "Corporation" means the housing trust fund corporation established
by section forty-five-a of this chapter.

2. "Turnkey/enhanced rental project" or "project" means a vacant
property which is converted or rehabilitated to residential rental use,
a newly constructed rental project or projects or a state-aided public
housing project or projects where more than thirty percent of the units
are vacant.

3. "Turnkey/enhanced rental project costs" means 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, provided
however that not more than twenty percent of such costs may be used for
acquisition of land or buildings. Such costs may also include all or any
portion of the cost necessary for the creation of a reserve fund
required pursuant to section eleven hundred six-e of this article, and
all or a portion of a working capital fund. Such costs shall not include
the costs of nondwelling-related facilities, eligible applicant
administrative costs or, in cities with a population of one million or
more, the cost of demolition or acquisition of land or buildings.

4. "Eligible applicant" means a housing development fund company
incorporated pursuant to article eleven of this chapter, a
not-for-profit corporation or charitable organization which has as one
of its primary purposes the improvement of housing for persons of low
income, a wholly owned subsidiary of such a corporation or organization,
a municipality, a municipal housing authority created pursuant to the
public housing law or a person, firm, partnership or corporation which
has agreed to limit profits or rate of return of investors in accordance
with a formula established by the corporation. In the case of an
application by a city with a population of one million or more for
funding pursuant to this article for projects expected to contain thirty
percent or more permanent housing units occupied by eligible homeless
families, as defined in article three-A of this chapter, such city shall
be an eligible applicant only if the corporation shall determine in its
sole discretion that funding for the purpose of undertaking the project
is unavailable for the project pursuant to article three-A of this
chapter.

5. "Eligible owner" means a housing development fund company
incorporated pursuant to article eleven of this chapter, a
not-for-profit corporation or charitable organization which has as one
of its primary purposes the improvement of housing for persons of low
income, a wholly owned subsidiary of such a corporation or organization,
a partnership at least fifty percent of the controlling interest of
which is held by such a corporation or organization and which has agreed
to limit profits or rate of return of investors in accordance with a
formula established or approved by the corporation, a municipality or a
municipal housing authority created pursuant to the public housing law.

6. "Reserve fund" means a fund or funds to be used in accordance with
guidelines established by the corporation for ongoing operation and
maintenance costs and replacement costs and may only be used after the
first year of a project's operation, as measured from the date of
substantial occupancy, except in the event of an imminent threat to the
health and safety of the tenants. Such fund shall be deposited in a
banking institution whose principal place of business is located within
the state of New York and which has a proven record of investment in the
community in which the project is located.

7. "Working capital fund" shall mean a fund to be used for start-up
expenses including, but not limited to, liability insurance, fidelity
bond premiums, utility hook-up deposits, maintenance equipment, movable
furnishings and equipment and other initial project related expenses, as
approved by the corporation.