§ 361. Supervision and regulation. 1. The department may from time to
time make, alter, amend and repeal rules and regulations for the
supervision, examination, regulation and audit of companies and for
carrying into effect the provisions and purposes of this article, and
each company shall submit an annual report of its operations to the
department and the New York state housing finance agency which may
examine and audit the books and records of the company at any time.

2. The department shall have power to act for and in behalf of the
agency in servicing the mortgage loans of the agency, and to perform
such functions and services in connection with the making, servicing and
collection of such loans as shall be requested by the agency.

3. (a) The department may, with respect to any project of which the
New York state housing finance agency has acquired the fee or otherwise,
enter into an agreement with said agency subject to the approval of the
director of the budget, for the department, as provided in paragraph (b)
hereof, to operate the said project in a manner consistent with the
purposes of this article. In such event, the department shall have the
power to use any available funds to pay all operating expenses and to
comply with all the terms and provisions of the mortgage, as though the
mortgage had not been foreclosed, and to comply with the provisions of
this article.

(b) Subject to the provisions of the agreement with said agency, the
department may contract with any person, firm or corporation which it
deems qualified to operate and manage such project and to perform such
duties and functions as it may deem necessary.