N.Y. Private Housing Finance Law § 111-b: Mortgage modification provisions for redevelopment companies in cities with a population of one million or more

§ 111-b. Mortgage modification provisions for redevelopment companies

in cities with a population of one million or more. 1. For purposes of

this section, "restrictive agreement" shall mean a binding and

irrevocable agreement between the redevelopment company and the

supervising agency providing that such redevelopment company for a term

of five years from the date of such agreement (i) shall not voluntarily

dissolve or reconstitute pursuant to section one hundred twenty-three of

this article, (ii) shall exercise any and all available options to renew

any housing assistance payments contract pursuant to section eight of

the United States Housing Act of nineteen hundred thirty-seven, as

amended, and any successor rent subsidy program, (iii) shall not cause

such a contract to be terminated by reason of such redevelopment

company's noncompliance with any of the terms thereof, and (iv) shall

not voluntarily cause or permit such a contract to expire, to not be

extended, to not be renewed, or to be terminated.

2. Notwithstanding the provisions of this article or the provisions of

any law, general or special, in cities with a population of one million

or more, a redevelopment company with a federally-aided mortgage formed

pursuant to this article may borrow funds and secure the repayment

thereof by note and mortgage or any other manner approved by the

supervising agency, provided, however, that (a) such approval by the

supervising agency shall be conditioned upon a restrictive agreement,

and (b) such redevelopment company may not increase the rents paid by

the tenants to pay for any such increase in indebtedness that is not

attributable to project cost.