N.Y. Private Housing Finance Law § 22-b: Loans for state-aided limited-profit housing companies

§ 22-b. Loans for state-aided limited-profit housing companies. 1.

Notwithstanding any provision of this article to the contrary, the

commissioner may for a period of one year from the effective date of

this act approve a loan and encumbrance in excess of the actual project

cost of a state-aided project comprising more than five thousand rental

units, provided that: (a) the rents paid by the tenants may not be

increased to pay for any consequent increase in indebtedness that is not

attributable to project cost; (b) the company enters into an agreement

to continue to remain subject to the provisions of this article for a

period of no less than an additional thirty years from issuance of the

loan and encumbrance; and (c) the greater of twenty-five percent of the

amount of such loan which exceeds such actual project cost or forty

million dollars of the proceeds of such loan must be dedicated to

capital improvements to existing structures and facilities.

2. Any company that enters into a loan pursuant to subdivision one of

this section shall create a plan within one year of the approval of the

loan. The plan shall include details of all capital improvements that

will occur as a result of the loan. Such company shall obligate the

funds dedicated to the capital improvements within three years of the

approval of the loan. Such company shall submit a copy of the plan

within one year of the approval of the loan and within three years of

the approval of the loan, a report that details the use of the loan

funds to the governor, the commissioner of the division of housing and

community renewal, the temporary president of the senate, the speaker of

the assembly, the minority leader of the senate, the minority leader of

the assembly, the chair of the senate finance committee, the chair of

the assembly ways and means committee, the chair of the senate housing,

construction, and community development committee, and the chair of the

assembly housing committee.

3. Such company shall participate in bimonthly meetings with elected

officials and the members of the project's residents' association or

other tenant organization that represents the majority of tenants in the

project in order to hear any advice or comments on the implementation of

the plan. The meetings shall occur on a regular basis until all of the

money set-aside for capital improvements in subdivision one of this

section has been spent.