N.Y. Private Housing Finance Law § 12: Definitions

§ 12. Definitions. As used in this article, the following terms shall

mean and include:

1. "Areas." A section of a municipality in which there is to be

located a project approved by the municipality as provided in paragraph

(a) of subdivision one and in subdivision five of section twenty-six of

article two of this chapter.

2. "Company". A limited-profit housing company duly incorporated

pursuant to the provisions of this article, or a company incorporated

pursuant to the not-for-profit corporation law and this article for the

purpose of providing housing and auxiliary facilities for staff members,

employees or students of a college, university, hospital or child care

institution and their immediate families or for aged or handicapped

persons of low income, pursuant to this article, or a municipally-aided

non-profit company as hereinafter defined, or a low income non-profit

housing company as hereinafter defined.

2-a. "Home owners purchase note." A promissory note accepted by a

mutual company as consideration for the issuance of stock entitling a

person or family to occupancy of an apartment in a project, payable over

or within a period of ten years.

2-b. "Mutual company." A company whose dwelling facilities, to the

extent of at least eighty per centum, are occupied by persons or

families who are entitled to such occupancy by reason of ownership of

shares in such company; provided however that a company that was not a

mutual company prior to July first, nineteen hundred ninety-five may

become a mutual company if its dwelling facilities, to the extent of at

least fifty per centum, are occupied by persons or families who are

entitled to such occupancy by reason of ownership of shares in such

company. The commissioner or supervising agency shall provide procedures

for such conversion of a company to a mutual company on or after July

first, nineteen hundred ninety-five; such procedures shall require the

submission of a plan for attaining eighty per centum owner occupancy.

2-c. "Urban Rental Company." A company whose project is located in or

adjacent to a municipality and whose housing accommodations are occupied

by persons or families who do not own the shares in such company.

3. "Occupancy date." The date defined in the contract between a

company and a municipality or the state, as the case may be, as the date

upon which the project is to be deemed ready for occupancy, or if such

term is not defined in such contract, the date of issuance of the

temporary certificate of occupancy.

4. "Plan." A plan or undertaking of an area or areas for providing low

rent housing for persons of low income, and for other facilities

incidental and appurtenant thereto.

5. "Project." A specific work or improvement, including lands,

buildings and improvements acquired, owned, constructed, rehabilitated,

improved, managed or operated by a company providing dwelling

accommodations, non-housekeeping accommodations, aged care

accommodations or accommodations for handicapped persons pursuant to

this article, or undertaken, planned, developed, constructed or owned

pursuant to section thirty-six-a of this article, and such business,

commercial, cultural, recreational, communal, dining, medical and

nursing treatment, day care or residential child care facilities or any

combination thereof, or other facilities as may be deemed by the

commissioner with respect to a project aided by a state loan or New York

state housing finance agency loan or by the supervising agency with

respect to a municipally-aided project or a project undertaken, planned,

developed, constructed or owned pursuant to section thirty-six-a of this

article, to be incidental and appurtenant thereto. In the case of a

state loan or New York state housing finance agency loan, a project

shall effectuate all or part of a plan, provided, however, that such

dwelling accommodations, non-housekeeping accommodations, aged care

accommodations or accommodations for handicapped persons may be provided

in any section of the municipality, whether or not such section has

insanitary or substandard housing conditions.

5-a. "State urban development corporation project". A project

acquired, owned, constructed, managed or operated by a limited-profit

housing company which is a subsidiary of the New York state urban

development corporation, as the term "subsidiary" is defined in the New

York state urban development corporation act.

5-b. "Battery Park city project." A project acquired, owned,

constructed, managed or operated by a company organized pursuant to this

article and located within the Battery Park project area, as defined in

the Battery Park city authority act.

6. "Project cost". The sum total of all costs incurred by a company

and, as approved by the commissioner in the case of a state-aided

project or a project aided by the New York state housing finance agency

or by the supervising agency in the case of a municipally-aided project

as reasonable and necessary for carrying out all works and undertakings

for the development of a project. These shall include but are not

necessarily limited to the carrying charges during construction and

before physical completion or rehabilitation, working capital not

exceeding three per cent of the estimated total cost or three per cent

of the actual total final cost, whichever is larger, the cost of all

necessary studies, surveys, plans and specifications, architectural,

engineering, or other special services, the cost of acquisition of land

and any buildings thereon, site preparation and development,

construction, reconstruction and equipment; the reasonable cost of

financing incurred by the investor in the course of development of the

project, up to and including the occupancy date; the fees imposed by the

commissioner or by the supervising agency or by both; other fees charged

in the course of the development of the project up to and including the

occupancy date, pursuant to the provisions of this article; the

necessary expenses in connection with the initial occupancy of the

project and where applicable, the cost of such training services as will

assist the residents of the project to acquire ownership and to operate

the project in an efficient and harmonious manner; and the cost of such

other items, including tenant relocation, as the commissioner, in the

case of a state-aided project or a project aided by the New York state

housing finance agency or the supervising agency, in the case of a

municipally-aided project shall determine to be reasonable and necessary

for the development of the project, less any and all net rents and other

net revenues received from the operation of the real or personal

property on the project site, or any part thereof, by the company on or

after the date on which the contract between the company and the state

or the New York state housing finance agency or municipality was entered

into and prior to the occupancy date. In the case of any project

purchased or leased by a company from a municipality pursuant to the

provisions of section thirty-six-a of this article, project cost shall

include the value of the lease or the purchase price paid or to be paid

by such company to such municipality.

7. "Local and municipal taxes". Taxes levied by a county, city,

village, town, school and special district but shall not include

assessments for local improvements.

8. "Child Care Institution"--A private, non-profit, resident agency,

association, corporation, institution or other organization, which is

incorporated or organized under the laws of this state for the care and

treatment of children, which actually has its place of business or plant

in this state and which submits and consents to the approval,

visitation, inspection and supervision of the Department of Social

Welfare, or a similar administrative department of the State of New York

as to any and all acts in relation to the welfare of children performed

or to be performed thereby.

9. "Housing". As used in this article the term includes:

(a) "Dwellings". "Dwelling accommodations". A room or rooms, with or

without cooking facilities, arranged for occupancy as a self-contained

unit.

(b) "Non-housekeeping accommodations". A room or rooms, without

cooking facilities, and with or without board designed for the occupancy

of staff members, employees or students of a college, university or

hospital.

(c) "Aged care accommodations". Non-housekeeping accommodations for

aged persons with board and aged care service as may be provided as an

incident to occupancy, provided however, that no such service shall be

of such a nature, kind or quality as to require licensing by the state

department of health under article twenty-eight of the public health

law.

(d) "Accommodations for handicapped persons." Dwelling accommodations

designed for the occupancy of handicapped persons or non-housekeeping

accommodations designed for the occupancy of handicapped persons with

board and such service as may be provided as an incident to occupancy,

provided however, that no such service shall be of such a nature, kind

or quality as to make the facility subject to the jurisdiction of any

other agency of the state.

10. "Persons of low income" and "families of low income". Persons or

families who are in the low income groups and who cannot afford to pay

enough to cause private enterprise in their municipality to build a

sufficient supply of adequate, safe and sanitary dwellings,

non-housekeeping accommodations or aged care accommodations.

11. "Preliminary Costs". Project costs approved by the supervising

agency as appropriate expenditures which may be incurred prior to

commitment and initial advance of the proceeds of a mortgage loan under

this article, including but not limited to: (a) payments for options to

purchase properties on the proposed housing project site, deposits on

contracts of purchase, or with prior approval of the supervising agency,

payments for the purchase of such properties; (b) legal and

organizational expenses, including payment of attorneys' fees, project

manager and clerical staff salaries, office rent and other incidental

expenses; (c) payment of fees for preliminary feasibility studies and

advances for planning, engineering and architectural work; (d) expenses

for tenant surveys and market analyses; (e) necessary application and

other fees; and (f) such other expenses incurred by the limited-profit

housing company as the supervising agency may deem appropriate to

effectuate the purposes of this article.

12. "Municipally-aided non-profit company." A non-profit housing

company duly incorporated pursuant to the not-for-profit corporation law

and this article, which is aided by a municipal mortgage loan, a loan by

the New York city housing development corporation or tax exemption or

both and is not aided by any state mortgage loan or any mortgage loan by

the New York state housing finance agency or a mortgage loan insured by

the federal government made for the purpose of refinancing a mortgage

loan other than a municipal mortgage loan or a mortgage loan made by the

New York city housing development corporation.

13. "Municipally-aided mutual company." A mutual company which is

aided by a municipal mortgage loan, a loan by the New York city housing

development corporation or tax exemption or both and is not aided by any

state mortgage loan or any mortgage loan by the New York state housing

finance agency or a mortgage loan insured by the federal government made

for the purpose of refinancing a mortgage loan other than a municipal

mortgage loan or a mortgage loan made by the New York city housing

development corporation.

14. "Low income non-profit housing company." A non-profit housing

company duly incorporated pursuant to the not-for-profit corporation law

and this article, whose principal purpose is to provide housing for

persons of low income and families of low income and which is aided by a

state mortgage loan or mortgage loan by the New York state housing

finance agency or a municipal mortgage loan or municipal tax exemption,

or both, or a mortgage loan insured by the federal government.

15. "Residual indebtedness." Where a mortgage loan is refinanced

pursuant to section twenty-three-a or subdivision twenty-two-a of

section six hundred fifty-four of this chapter, residual indebtedness

shall be the indebtedness of a company due on the original mortgage

loan, including all unpaid principal and all interest accrued thereon,

less an amount equal to the principal amount, when made, of the mortgage

insured by the federal government in connection with the refinancing.

Such indebtedness shall be secured by a mortgage which may be

subordinate to the lien of any mortgage insured by the federal

government and may contain such terms and conditions not inconsistent

with this article as may be approved by the supervising agency and as

the supervising agency may deem necessary or desirable to secure the

repayment of such residual indebtedness. Residual indebtedness shall not

be restricted by the provisions of this article relating to project

cost.

16. "Residual receipts obligations". Where a mortgage loan is

refinanced pursuant to section twenty-three-a or subdivision

twenty-two-a of section six hundred fifty-four of this chapter, residual

receipts obligations shall mean the amount of any additional loan to a

company, and any amounts paid other than by the company, to establish

escrow accounts or reserves or to satisfy minimum property standards or

to install life safety devices for the issuance of mortgage insurance by

the federal government in connection with the refinancing. With the

approval of the supervising agency and the consent of the company,

residual receipts obligations may be evidenced by non-interest bearing

residual receipts notes. Residual receipts obligations shall be payable

only after the payment in full of all residual indebtedness. Residual

receipts obligations shall not be restricted by the provisions of this

article relating to project cost and shall not include any amounts

deposited under an agreement with the federal government for the sharing

of claims paid by the federal government on account of insurance of

mortgages.