N.Y. Private Housing Finance Law § 127: Acquisition by mutual redevelopment companies

§ 127. Acquisition by mutual redevelopment companies. Anything in this

article to the contrary notwithstanding:

(a) With the approval of the supervising agency, any person owning a

project may convey such project to a mutual redevelopment company and a

mutual redevelopment company may be organized to acquire an existing

project prior to expiration of an initial tax exemption granted pursuant

to section one hundred twenty-five, and may own, maintain, operate,

sell, and convey such project pursuant to this article. In part payment

of the purchase price therefor, such company may execute and deliver a

bond and mortgage or an issue of bonds under a trust indenture, the

aggregate principal amount of which does not exceed ninety per centum of

such purchase price, and which shall be secured by a first mortgage upon

all the real property of which such project consists. Such bonds are

hereby declared securities in which all public officers and bodies of

the state and of its municipal subdivisions, all insurance companies and

associations, all savings banks and savings institutions, including

savings and loan associations, executors, administrators, guardians,

trustees, and all other fiduciaries in the state may properly and

legally invest the funds within their control. The total capital created

and bonds or debentures issued by such mutual redevelopment company

shall not exceed the total cost of the purchase of the project and an

allowance for working capital not greater in amount than three per

centum of such cost.

(b) With the consent of the local legislative body, any initial tax

exemption granted pursuant to section one hundred twenty-five, shall

continue after conveyance of a project to a mutual redevelopment company

for the period of years originally provided for in the contract, or for

the unexpired portion thereof if such period shall have commenced,

subject to prior termination pursuant to section one hundred twenty-four

or section one hundred twenty-five, and this article shall continue to

be applicable to such project as though such project had been initially

undertaken by such mutual redevelopment company; provided, however, that

nothing herein shall require the resubmission of the plan of the project

and the contract relating thereto for approval pursuant to section one

hundred fourteen. The contract may, with the approval of the local

legislative body and of the holder of the mortgage on the project, be

modified in a manner consistent with this section.