N.Y. Private Housing Finance Law § 107: Limited return on investment

§ 107. Limited return on investment. Subject to the provisions of

section one hundred twenty-three of this article, there shall be paid

annually out of the earnings of the redevelopment company, after

providing for all expenses, taxes and assessments, a sum for interest on

and amortization of any mortgage indebtedness and depreciation charges

if, when and to the extent deemed necessary by the supervising agency,

plus a distribution of six per centum on the capital and interest not

exceeding six per centum on outstanding income debentures; except that

in the case of redevelopment companies formed prior to April

twenty-ninth nineteen hundred sixty, and subject to the provisions of

section one hundred twenty-three of this article, there shall be paid

annually out of the earnings of the redevelopment company, after

providing for all expenses, taxes and assessments a sum for interest

amortization, depreciation and distributions, equal to but not exceeding

six per centum of the total actual final cost of the project as defined

by subdivision two of section one hundred twelve of this article; the

obligation in respect of such payments shall be cumulative, and any

deficiency in interest, amortization, depreciation and distributions in

any year shall be paid either from any cash surplus derived from

earnings remaining in the treasury of the redevelopment company in

excess of the amount necessary to provide such cumulative annual sums or

from the first available earnings in subsequent years; and any cash

surplus derived from earnings remaining in the treasury of the

redevelopment company in excess of the amount necessary to provide such

cumulative annual sums shall, upon the dissolution of, or in the case of

a redevelopment company which is a trust the termination of the company,

be paid into the general fund of the municipality except as otherwise

contemplated by subdivision five of section one hundred twenty-three of

this article.