N.Y. Private Housing Finance Law § 1122: Manufactured home cooperative fund contracts

§ 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.