§ 654. Powers of the corporation. Except as otherwise limited by this
article, the corporation shall have power:

1. To sue and be sued;

2. To have a seal and alter the same at pleasure;

3. To make and alter by-laws for its organization and internal
management and, subject to agreements with noteholders or bondholders,
to make rules and regulations governing the use of its property and
facilities;

4. To make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and functions under this
article;

5. To acquire, hold and dispose of real and/or personal property for
its corporate purposes;

6. To appoint officers, agents and employees, prescribe their duties
and qualifications and fix their compensation, subject to the provisions
of the civil service law and the rules of the civil service commission
of the city;

7. Subject to the provisions of any contract with noteholders and
bondholders, to make mortgage loans, to participate with the city or
with one or more organizations mentioned in section fifteen of this
chapter in making mortgage loans and to undertake commitments to make
any such mortgage loans to housing companies, including any subsidiary
of the corporation, on the same terms and otherwise in accordance with
the provisions of article two of this chapter governing loans by a
municipality;

* 7-a. Subject to the provisions of any contract with noteholders and
bondholders, to make mortgage loans, to participate with the city or
with one or more organizations set forth in section one hundred eleven-a
of this chapter in making mortgage loans and to undertake commitments to
make any such mortgage loans to redevelopment companies organized under
article five of this chapter;

* NB (Effective until ruling by Internal Revenue Service)

* 7-a. Subject to the provisions of any contract with noteholders and
bondholders, to make mortgage loans, to participate with the city or
with one or more organizations set forth in sections eighty-one and one
hundred eleven-a of this chapter in making mortgage loans and to
undertake commitments to make any such mortgage loans to
limited-dividend housing companies organized under article four of this
chapter and to redevelopment companies organized under article five of
this chapter. Such mortgage loans may be made to limited-dividend and
redevelopment companies for such purposes as may be approved by the
corporation including, but not limited to, the refinancing of the
existing mortgage indebtedness of such companies, to provide funds for
the replacement, improvement and rehabilitation of the properties owned
by said companies, to provide funds for all costs incurred by such
companies relating to the refinancing of the existing mortgage
indebtedness including amounts required to establish escrow accounts,
reserves and working capital as determined by the corporation and for
such other purposes as are permitted by articles four and five of this
chapter; provided, however, such purposes must be approved by the
Federal Internal Revenue Service for application of the tax exemption
for housing bonds. Such mortgage loans may be made by the corporation
without any requirement that all or any portion of the loan be used to
create new or rehabilitated housing facilities. In furtherance of its
powers pursuant to this subdivision and, subject to the provisions of
any contract with noteholders and bondholders, the corporation may
acquire and contract to acquire, by assignment or otherwise, any
mortgage securing a loan and any related bond or note made by a
limited-dividend housing company or a redevelopment company and may
modify or satisfy such mortgage and accept or make a new mortgage or
mortgages and execute such other instruments as the corporation deems to
be necessary or proper.

* NB (Effective pending ruling by Internal Revenue Service)

8. Subject to the provisions of any contract with noteholders and
bondholders, to make mortgage loans including participation and
investment with the city or with one or more corporations, organizations
or individuals of the kind mentioned in section four hundred seven of
this chapter in making mortgage loans and to undertake commitments to
make mortgage loans to owners of existing multiple dwellings, including
any subsidiary of the corporation, on the same terms and otherwise in
accordance with the provisions of article eight of this chapter, except
that such loans shall in all cases be secured by a first lien;

8-a. Subject to the provisions of any contract with noteholders or
bondholders, to participate with the city or one or more private
investors as defined in section eight hundred one of this chapter or
with the city and one or more such private investors in making loans in
accordance with the provisions of article fifteen of this chapter.

9. Subject to the provisions of any contract with noteholders and
bondholders, to sell, at public or private sale, any mortgage or other
obligation securing a mortgage loan made by the corporation;

10. Subject to the provisions of any contract with noteholders and
bondholders, in connection with the making of mortgage loans and
commitments therefor, to make and collect such fees and charges,
including but not limited to reimbursement of all costs of financing by
the corporation, service charges and insurance premiums, as the
corporation shall determine to be reasonable;

11. Subject to the provisions of any contract with noteholders and
bondholders, to consent to the modification, with respect to rate of
interest, time of payment of any installment of principal or interest,
security, or any other term, of any mortgage, mortgage loan, mortgage
loan commitment, contract or agreement of any kind to which the
corporation is a party;

12. To foreclose any mortgage in default or commence any action to
protect or enforce any right conferred upon it by any law, mortgage,
contract or other agreement, and to bid for and purchase such property
at any foreclosure or at any other sale, or acquire or take possession
of any such property; and in such event the corporation may complete,
administer, pay the principal of and interest on any obligations
incurred in connection with such property, dispose of, and otherwise
deal with, such property, in such manner as may be necessary or
desirable to protect the interests of the corporation therein;

12-a. To create subsidiaries, as provided in section six hundred
fifty-four-a of this chapter.

13. To borrow money and to issue negotiable notes or bonds or other
obligations and to fund or refund the same, and to provide for the
rights of the holders of its obligations;

14. To invest any funds held in reserves or sinking funds, or any
funds not required for immediate use or disbursement, at the discretion
of the corporation, in obligations of the city, state or federal
government, obligations the principal and interest of which are
guaranteed by the city, state or federal government, obligations of
agencies of the federal government which may from time to time be
legally purchased by savings banks of the state as investments of funds
belonging to them or in their control and be approved by the
comptroller, obligations in which the comptroller of the state of New
York is authorized to invest pursuant to section ninety-eight of the
state finance law, obligations of the New York city municipal water
finance authority, participation certificates of the federal home loan
mortgage corporation or mortgage-backed securities of the federal
national mortgage association.

15. Subject to the provisions of any contract with noteholders and
bondholders and subject to the provisions of section six hundred
fifty-five of this article, to purchase notes or bonds of the
corporation;

16. To procure insurance against any loss in connection with its
property and other assets including mortgages and mortgage loans in such
amounts and from such insurers as it deems desirable;

17. To engage the services of consultants on a contract basis for
rendering professional and technical assistance and advice; and where
the corporation shall join with one or more organizations mentioned in
section fifteen, one hundred eleven-a or four hundred seven of this
chapter in making mortgage loans, to make provision, either in the
mortgage or mortgages or by separate agreement, for the performance of
such services as are generally performed by a banking organization or
insurance company which itself owns and holds a mortgage or by a trustee
under a trust mortgage, and to consent to the appointment of a banking
organization to act in such capacity;

18. To contract for and to accept any gifts or grants or loans of
funds or property or fees for administering any federal rental subsidy
contract or financial or other aid in any form, including but not
limited to mortgage insurance, from the federal government or any agency
or instrumentality thereof, or from the state or any agency or
instrumentality thereof, or from any other source and to comply, subject
to the provisions of this article, with the terms and conditions
thereof;

19. As security for the payment of the principal of and interest on
any bonds so issued and any agreements made in connection therewith, to
pledge all or any part of its revenues;

20. Notwithstanding the provisions of this chapter or of any other
law, general, special or local, whenever the corporation shall find that
the maximum rentals charged tenants of the dwellings in any project
financed by the corporation in whole or in part shall not be sufficient,
together with all other income of the mortgagor, to meet within
reasonable limits all necessary payments to be made by the mortgagor of
all expenses including fixed charges, sinking funds, reserves and
dividends, to request the mortgagor to make application to vary the
rental rate for such dwellings so as to secure sufficient income, and
upon failure of the mortgagor to take such action within thirty days
after receipt of written request from the corporation to do so, to
request the supervising agency to take action upon such agency's own
motion so to vary such rental rate, and upon failure of the supervising
agency either upon application by the mortgagor or upon its own motion
so to vary such rental rate within sixty days after receipt of written
request from the corporation to do so, to vary such rental rate by
action of the corporation;

21. Subject to the provisions of any contract with noteholders and
bondholders, to acquire and to contract to acquire, by assignment or
otherwise, or to take as collateral security, any mortgage securing a
loan, including any construction loan, and any note or bond evidencing
indebtedness thereon, made by the city of New York in accordance with
the provisions of article two of this chapter and any contract or
arrangement, including any subsidy contract or arrangement, related to
such mortgage, and the receipts to be derived from any of the foregoing,
and to assume and fulfill and contract to assume and fulfill the
obligations of the mortgagee or lender thereunder, and to reassign and
to contract to reassign to the city of New York any such mortgage, note,
bond, contract or arrangement and the receipts to be derived therefrom.

22. Subject to the provisions of any contract with noteholders and
bondholders, to assign or pledge any mortgage, bond, note, contract,
security, or arrangement and the receipts to be derived from any of the
foregoing, acquired pursuant to this section;

22-a. Subject to the provisions of any contract with noteholders and
bondholders, to acquire and to contract to acquire, by assignment or
otherwise, any mortgage securing a loan, including any construction
loan, and any note or bond evidencing indebtedness thereon, made by the
city of New York in accordance with the provisions of article two of
this chapter and any contract or arrangement, including any subsidy
contract or arrangement, related to such mortgage, and to modify or to
satisfy such mortgage and accept or make a new mortgage or mortgages and
other instruments, including mortgages to secure residual indebtedness
and instruments to evidence residual receipts obligations as defined in
section twelve of this law and to enter into amended subsidy contracts,
and (i) to hold or to sell, assign or otherwise dispose of such mortgage
or mortgages, including those made in substitution thereof and any
related instruments, contracts and arrangements, or to issue obligations
secured by such mortgage or mortgages, and pay to the city of New York
the proceeds of such sale, assignment or other disposition of such
mortgages and the proceeds from the issuance of such obligations, less
legal and other fees, costs and expenses and other amounts paid or
incurred by the corporation, including discounts, costs incurred by the
corporation related to the sale of such mortgages or to a sale, if any,
of its obligations, fees payable to other governmental units, the cost
incurred by the corporation under an agreement with the federal
government pursuant to subdivision twenty-two-b of this section, amounts
required to establish escrow accounts or reserves for the issuance of
mortgage insurance, the cost of satisfying such minimum property
standards or of installing such life safety devices as may be required
by the federal government which standards or devices are in addition to
any requirement imposed by the city of New York as mortgagee, amounts
loaned to the mortgagor to establish such escrow accounts or reserves or
to satisfy such minimum property standards or to install such life
safety devices, closing and other costs related to obtaining mortgage
insurance from the federal government such other costs as the federal
government may from time to time impose, any amounts not previously
advanced under mortgages modified or satisfied under this subdivision as
determined by the supervising agency, and an amount not to exceed twenty
million dollars at any one time, which shall be held in a revolving
account for a period not to exceed eighteen months from the time of the
first deposit therein, to pay any or all of the costs, fees and expenses
and other amounts attributable to issuing obligations secured by such
mortgage or mortgages, or to making and insuring mortgages pursuant to
this subdivision, and any balance remaining in such revolving account
shall be paid to the city of New York no later than eighteen months
after the time of the first deposit therein, and (ii) to assign or
reassign any such mortgage or mortgages, instruments and related
contract or arrangement to the city of New York. If the corporation
sells any such mortgages for an amount in excess of the principal amount
thereof at the time of such sale, or if the corporation issues
obligations secured by any such mortgages and the yield on such
mortgages is greater than the yield on such obligations (the yield on
such mortgages and obligations having been calculated in accordance with
section one hundred three of the internal revenue code of the United
States and regulations thereunder), the corporation shall pay to the
city of New York such premium and any such differential, but only to the
extent such differential is not paid to or for the benefit of the
holders of such obligations; and such premium and differential, to the
extent so paid to such city, shall be used and credited by the city of
New York in accordance with subdivision four-b of section twenty-three-a
of this chapter as if such city had sold such mortgages or issued such
obligations pursuant to section twenty-three-a of this chapter. The
corporation shall not modify or satisfy a mortgage pursuant to this
subdivision unless such modification or satisfaction is first approved
by the supervising agency.

22-b. To contract with the federal government for the sharing of any
claim paid by the federal government on account of any insurance of a
mortgage, provided that the corporation's share of any such claim shall
not exceed fifty percent of the insurance benefits paid by the federal
government, and further provided that the corporation's share of such
claims under any such contract shall not exceed five percent of the
outstanding principal amount of all mortgage loans of the corporation
insured by the federal government and included within such contract.

23. To make loans secured by mortgages insured or coinsured by the
federal government to the owners of multiple dwellings in such amounts
as may be required for the rehabilitation of such multiple dwellings or,
if such owner acquires the multiple dwelling for the purpose of such
rehabilitation or owns the multiple dwelling subject to an outstanding
indebtedness, in such amounts as may be required for the cost of such
acquisition or for the refinancing of such outstanding indebtedness, but
in no event in such amounts as would exceed the mortgage limits imposed
by the federal government, and to regulate or restrict such owner as to
rents or sales, charges, capital structure, rate of return and method of
operation and to make loans secured by mortgages insured or coinsured by
the federal government to the owners of projects in such amounts as may
be required for the acquisition, construction or improvement of such
projects, but in no event in such amounts as would exceed the mortgage
limits imposed by the federal government, or ninety percent of the
actual cost of such acquisition, construction or improvement, whichever
is less, and to regulate or restrict such owner as to rents or sales,
charges, capital structure, rate of return and method of operation. The
owner may, with the approval of the corporation, fix maximum rentals to
be charged tenants of the dwellings in any multiple dwelling or project
aided by a loan pursuant to this subdivision. The corporation, upon its
own motion, or upon application by the owner or by the federal
government, may vary such rental rate from time to time so as to secure,
together with all other income of the multiple dwelling, sufficient
income for it to meet within reasonable limits all necessary payments to
be made by the owner of all expenses; provided that no variation in a
rental rate shall be effective unless approved by the federal
government. The corporation or the department of housing preservation
and development shall notify occupants of the multiple dwelling, if
there be any, of the contemplated rehabilitation and shall advise them
of the expected rental increase to result therefrom, and a
representative of the corporation or the department of housing
preservation and development shall meet or offer to meet at least once
with the occupants. The corporation shall promulgate such rules and
regulations with respect to multiple dwellings and projects financed
pursuant to this subdivision and the owners of such multiple dwellings
and projects as may be necessary to carry out the provisions of this
subdivision, provided that such rules and regulations shall contain
provisions as to income limitations relating to admission into occupancy
of the dwelling units of such projects to the same effect as are
contained in section thirty-one of this chapter and for the dwelling
units of such other multiple dwellings to the same effect as are
contained in subdivision three of section four hundred one of this
chapter. As used in this subdivision, the term "multiple dwelling" shall
include an existing building or structure which is to be converted into
a class A multiple dwelling.

23-a. Subject to the provisions of any contract with noteholders and
bondholders, (i) to make and contract for the making of mortgage loans
for the construction or rehabilitation of projects which the New York
city housing authority has agreed to purchase on a turnkey basis in
accordance with a federally assisted program for the production of
public housing as authorized by the United States housing act of
nineteen hundred thirty-seven as amended to the date of enactment of
this subdivision of this section, upon the completion of such
construction or rehabilitation, and (ii) to make and to contract for the
making of loans to, or to purchase loans from, banking or other lending
institutions for the purpose of financing such construction or
rehabilitation.

23-b. In order to increase the availability of safe and sanitary
dwelling accommodations within the financial reach of families and
persons of low income, to acquire and to contract to acquire, by
assignment or otherwise, or to take as collateral security, any
federally guaranteed security evidencing indebtedness on a mortgage
securing a loan, including any construction loan, and the receipts to be
derived therefrom and to assign or reassign and to contract to assign or
reassign any such security and the receipts to be derived therefrom,
subject in each case, to the provisions of any contract with noteholders
and bondholders;

* 23-c. (1) Subject to the provisions of any contract with noteholders
and bondholders (a) to make and contract for the making of loans for the
acquisition, construction or rehabilitation of housing accommodations
containing five or more dwelling units (i) for the purpose of providing
housing accommodations for occupancy by persons and families for whom
the ordinary operations of private enterprise cannot provide an adequate
supply of safe, sanitary and affordable housing accommodations or (ii)
for units located in an area designated as blighted pursuant to article
fifteen or sixteen of the general municipal law, or as certified by the
New York city department of housing preservation and development as
being located in an area which is blighted, and (b) to make and to
contract for the making of loans to or to purchase loans from lending
institutions for the purpose of financing mortgage loans for such
acquisition, construction or rehabilitation, and (c) to establish such
regulatory requirements with regard to such housing accommodations as
may be deemed appropriate by the corporation to achieve the objectives
of this article, and articles fifteen and sixteen of the general
municipal law notwithstanding any other provisions of this chapter to
the contrary. Any notes and bonds issued pursuant to this subdivision
shall not be secured by any capital reserve fund established pursuant to
section six hundred fifty-six of this article.

(2) With regard to any loan made pursuant to this subdivision and
notwithstanding the provisions of, or any regulation promulgated
pursuant to, the emergency housing rent control law, the local emergency
housing rent control act, or local law enacted pursuant thereto, the
rent stablization law of nineteen hundred sixty-nine, or the emergency
tenant protection act of nineteen seventy-four, the owner of a project
otherwise subject to any such law or act, with the approval of the
agency, shall establish the initial rent for each dwelling unit within
the project. The corporation shall notify occupants of the project, if
any, of any such proposed rental establishment and offer to meet at
least once with the occupants prior to its approval.

(3) The powers granted by this subdivision may be exercised only if
(a) obligations of the corporation have been issued to fund the loan
made or purchased by the corporation and such obligations have received
an investment grade rating from a recognized rating agency; (b) the loan
made or purchased by the corporation is fully secured as to principal
and interest by insurance or a commitment to insure by the state of New
York mortgage agency or New York city residential mortgage insurance
corporation or by the general credit of a bank, national bank, trust
company, savings bank, savings and loan association, insurance company,
governmental agency of the United States, or any combination thereof; or
(c) obligations of the corporation are purchased by a bank, national
bank, trust company, savings bank, savings and loan association,
insurance company, governmental agency of the United States, which for
purposes of this subdivision, include the federal home loan mortgage
corporation, the federal national mortgage association, the governmental
national mortgage association, and any successor of the foregoing, or
any wholly-owned subsidiary or combination thereof.

* NB Repealed July 23, 2025

23-d. To and shall develop, promote and ensure that, where possible,
minority groups which traditionally have been disadvantaged, and women
are afforded equal opportunity for contracts in connection with
development and construction contracts for developments, facilities and
projects financed by the issuance of bonds, notes and other obligations
of the corporation.

23-e. Subject to the provisions of any contract with noteholders and
bondholders, to refinance or acquire mortgage loans made for multiple
dwellings by private lenders pursuant to article eight-A or fifteen of
this chapter; provided that the corporation shall not be permitted
pursuant to this subdivision to acquire a mortgage loan, unless such
acquisition is in connection with a refinancing of the property for
which such mortgage loan was made.

23-f. To service mortgage loans made by private or governmental
lenders for multiple dwellings, provided that each such mortgage loan
shall have been made either (i) pursuant to this chapter, or (ii) in
conjunction with another mortgage loan made by the city of New York.

23-g. Subject to the provisions of any contract with noteholders and
bondholders, to acquire mortgage loans made by the city of New York
pursuant to article eight-A of this chapter or section ninety-nine-h or
article sixteen of the general municipal law or to acquire a
participation interest in such mortgage loans.

23-h. Subject to the provisions of any contract with noteholders and
bondholders and relating to the purpose of providing housing
accommodations for occupancy by persons and families for whom the
ordinary operations of private enterprise cannot provide an adequate
supply of safe, sanitary and affordable housing accommodations or for
units located in an area designated as blighted pursuant to article
fifteen or sixteen of the general municipal law, or as certified by the
New York city department of housing preservation and development as
being located in an area that is blighted, the corporation is hereby
authorized to carry out, by loans or guaranties, the following purposes:

(i) to preserve, repair, renovate, upgrade, improve, modernize,
rehabilitate or otherwise prolong the useful life of dwelling
accommodations;

(ii) to construct dwelling accommodations and undertake site
preparation related thereto;

(iii) to restore abandoned, vacant or occupied city or privately-owned
dwelling accommodations to habitable condition;

(iv) to assist in the acquisition of buildings that contain or are
expected to contain dwelling accommodations; and

(v) to facilitate the disposition of city-owned buildings that contain
or are expected to contain dwelling accommodations.

24. To contract with any of its subsidiary corporations to render such
services as such subsidiary corporation may request, including, but not
limited to, the use of the premises, personnel and personal property of
the corporation, and to provide for reimbursement to the corporation
from such subsidiary corporation for any expenses necessarily incurred
by the corporation in carrying out the terms of any such contract.

25. To do any and all things necessary or convenient to carry out its
purposes and exercise the powers expressly given and granted in this
article.