N.Y. Private Housing Finance Law § 16: Limited-profit housing companies; partnership relations

§ 16. Limited-profit housing companies; partnership relations.

Notwithstanding any provisions in this article to the contrary, but

subject to such regulations as may be prescribed by the commissioner or

the supervising agency, as the case may be:

1. (a) Any company may be a partner (general or limited) in a

partnership (general or limited) formed for the purpose of providing

such company with capital. Any company incorporated pursuant to the

provisions of this article may, with the consent of the commissioner or

the supervising agency as the case may be, become a partner (general or

limited) in a partnership (general or limited) upon the consent of the

company to the refinancing of its original mortgage loan by a mortgage

loan insured by the Federal government; such a partnership shall have

the same powers and duties as provided by this article as a partnership

formed for the purpose of providing a company with capital.

(b) Any partner (general or limited) of any partnership (general or

limited) in which a company is a partner (general or limited) may be the

owner or holder of any shares, bonds, income debentures, notes or other

securities of such company.

(c) Any company which is a partner (general or limited) in any such

partnership (general or limited) may exercise all the rights and powers

and shall be subject to all the duties and obligations of a company in

accordance with this article.

2. The capital structure of a company which is a partner (general or

limited) in a partnership (general or limited) formed pursuant to

paragraph (a) of subdivision one of section sixteen may include

withdrawals from the capital of such a partnership (general or limited).

The provisions of this article relating to shares and income

debentures shall be deemed to include withdrawals from the capital of a

partnership (general or limited) of which a company is a partner

(general or limited).

3. For the purposes of this section, the term partner shall be deemed

to include a member of a limited liability company, and the term

partnership shall be deemed to include a limited liability company,

provided there is disclosure of the identity of the managing member,

including the identity of the natural person who is responsible for the

housing development. Notwithstanding any provision of this section to

the contrary, any change in general partner of a partnership or managing

member of a limited liability company shall be subject to the prior,

written approval of the commissioner or supervising agency.