§ 1122. Manufactured home cooperative fund contracts. 1. Within the
limit of funds available in the manufactured home cooperative fund, the
agency is hereby authorized to enter into contracts with eligible
applicants to provide loans which such eligible applicants shall use to
establish manufactured home park cooperatives through acquisition or
infrastructure improvement or both.

2. No such loan may be made or its term extended pursuant to this
article, unless the agency determines that the eligible applicants
cannot afford or obtain the financing necessary to accomplish the
purposes of such loans through the ordinary unaided operation of private
enterprise.

3. The agency shall not enter into loans under this article except
with an eligible applicant which has submitted a plan acceptable to the
agency which provides that subsequent to conversion to cooperative
ownership, a majority of the manufactured home owners or one or more
members of their immediate family intend to occupy their manufactured
homes as their primary residence.

4. Such contracts may provide for loans by the agency for the
activities to be carried out by the eligible applicant under the
contract, including participation in loans including but not limited to
participation in loans originated or financed by lending institutions as
defined in section forty-two of this chapter, private or public employee
pension funds or the state of New York mortgage agency. Loans shall be
at the prevailing interest rate in the area for long term residential
mortgages or at such lower rate as the agency determines to be necessary
for the project to be financially feasible. Loans shall not exceed
ninety-five percent of the project costs including purchase price and
costs for infrastructure improvement. The term of the loan for a
cooperative project or infrastructure improvement shall not exceed ten
years unless extended for periods not to exceed ten years in which case
the term of the loan as extended shall not exceed thirty years in the
aggregate and the amortization schedule for the loan shall not exceed
thirty years.

5. In determining loans pursuant to this article the agency shall give
preference to applications based upon the following criteria:

(a) the extent to which park residents are threatened with
displacement by the projected sale or closing of the existing park;

(b) the scarcity of affordable alternate sites in the immediate area
for relocation of park residents;

(c) the extent to which manufactured home parks, subsequent to
receiving assistance under this article, will be owned as a cooperative
by shareholders or owners or holders of membership interests or
certificate of membership in such cooperative whose average incomes do
not exceed (i) the greater of one hundred percent of the median income
for the metropolitan statistical area in which a project is located or
one hundred percent of the median income for the state, or (ii) if the
project is located outside such an area, the greater of one hundred
percent of the median income for the county in which the project is
located or one hundred percent of the median income for the state;

(d) the extent to which the proposed resident ownership structure
provides long-term security and tenure;

(e) the extent to which the proposed project will be undertaken and
completed in a timely fashion; and

(f) the extent to which the homes in a park are occupied by the
manufactured home owners or members of their families.

6. The agency shall provide for the review, at periodic intervals not
less than annually, of the performance of applicants receiving financial
assistance pursuant to this article. Such review shall, among other
things, be for the purposes of ascertaining conformity to contractual
provisions, the financial integrity and efficiency of applicants and the
evaluation of the applicants' activities. Contracts entered into
pursuant to this article may be terminated, funds may be withheld and
unspent funds recaptured by the agency upon a finding of substantial
nonperformance or breach by the applicant of its obligations under its
contract.