N.Y. Private Housing Finance Law § 357: Financing

§ 357. Financing. 1. Any company formed under this article may,

subject to the approval of the commissioner, borrow funds from the New

York state housing finance agency and secure the repayment thereof by

bond or note and mortgage which shall contain such terms and conditions

as may be deemed necessary or desirable by the New York state housing

finance agency or required by any agreement between the New York state

housing finance agency and the holders of its notes and bonds with

respect to such companies, including the right to assignment of rates

and fees and entry into possession in case of default, but the operation

of such project, in the event of such entry, shall be subject to

regulations promulgated by the department.

2. The New York state housing finance agency may make a contract to

make loans to companies not to exceed the total project cost. Any such

loan shall be secured by a first mortgage lien upon all the real

property and improvements of which the project consists and upon all

fixtures and articles of personal property attached to or used in

connection with the construction, acquisition, reconstruction,

rehabilitation, improvement or operation of the project.

3. Any inconsistent provision of law to the contrary notwithstanding,

mortgages of a company shall be exempt from the mortgage recording taxes

imposed by article eleven of the tax law.

4. The provision of community centers for senior citizens and of

programs and services for senior citizens is hereby declared to be a

proper public and municipal purpose for which the moneys of the state

and of its political subdivisions and of all public corporations may be

raised and expended. The state, and each political subdivision of the

state, and each public corporation of the state or a political

subdivision thereof, and individuals, foundations and all other private

organizations and corporations may make capital grants to any company

organized pursuant to this article and such company may accept and

receive the same and apply the same in payment or reduction of the

project cost.