N.Y. Private Housing Finance Law § 44: Powers of the agency

§ 44. Powers of the agency. Except as otherwise limited by this

article, the agency shall have power:

1. To sue and be sued;

2. To have a seal and alter the same at pleasure;

3. To make and execute contracts and all other instruments necessary

or convenient for the exercise of its power and functions under this

article;

4. To make and alter by-laws for its organization and internal

management and, subject to agreements with noteholders or bondholders,

to make rules and regulations governing the use of its property and

facilities, which rules and regulations shall be filed with the

department of state in the manner provided by section one hundred two of

the executive law;

5. To acquire, hold and dispose of personal property for its corporate

purposes;

6. To appoint officers, agents and employees, prescribe their duties

and fix their compensation, subject to the provisions of the civil

service law and to the rules and regulations of the civil service

commission of this state;

7. To borrow money and issue negotiable notes, bonds or other

obligations and to provide for the rights of the holders thereof;

8. Subject to any agreements with noteholders or bondholders, to

invest any funds held in reserve or sinking funds, including the insured

mortgage reserve fund and any special revenue housing coverage reserve

fund or any monies not required for immediate use or disbursement, at

the discretion of the agency, in obligations of the state or the United

States government or obligations the principal and interest of which are

guaranteed by the state or the United States government, or in any other

obligations in which the comptroller of the state of New York is

authorized to invest pursuant to section ninety-eight of the state

finance law;

9. Subject to the approval of the commissioner in the case of mortgage

loans to other than hospital corporations which are eligible borrowers

as defined in article twenty-eight-B of the public health law or nursing

home companies, non-profit corporations which are eligible borrowers as

defined in title five-A of article six of the social services law, or

companies incorporated pursuant to the not-for-profit corporation law

and article seventy-five of the mental hygiene law, who shall be guided

by the provisions governing state loans contained in article two of this

chapter, to make mortgage loans, to participate with the state in making

mortgage loans and to undertake commitments to make any such mortgage

loans;

9-a. Subject to the approval of the commissioner of social services of

the state of New York, to make mortgage loans and to undertake

commitments to make mortgage loans to community senior citizens centers

and services companies under and pursuant to article seven-A of this

chapter.

10. Subject to the approval of the commissioner of housing and

community renewal, the state commissioner of health, the state

commissioner of mental hygiene or the state commissioner of social

services, as the case may be, to sell, at public or private sale, any

mortgage or other obligation securing a mortgage loan made by the

agency;

* 10-a. To acquire and to contract to acquire, by assignment or

otherwise, any mortgage securing a loan and any note or bond made by a

mutual housing company and to modify or satisfy such mortgage, bond or

note and accept or make a new mortgage and other instruments for the

purpose of refinancing the existing indebtedness of such company.

* NB (Effective pending ruling by Internal Revenue Service)

11. (a) In connection with the making or financing the making of

mortgage loans and commitments therefor, except mortgage loans and

commitments made with hospital corporations which are eligible borrowers

as defined in article twenty-eight-B of the public health law, nursing

home companies, non-profit corporations which are eligible borrowers as

defined in title five-A of article six of the social services law, or

companies incorporated pursuant to the not-for-profit corporation law

and article seventy-five of the mental hygiene law, to make and collect

such fees and charges, including but not limited to reimbursement of all

costs of financing by the agency, service charges and insurance

premiums, as the agency shall determine to be reasonable and as shall be

approved by the commissioner of housing;

(b) In connection with the making of mortgage loans and commitments

therefor to hospital corporations which are eligible borrowers as

defined in article twenty-eight-B of the public health law or nursing

home companies, to make and collect from such corporations and companies

such fees and charges, including but not limited to reimbursement of all

costs of financing by the agency, service charges and insurance

premiums, as the agency shall determine to be reasonable;

(c) In connection with the making of mortgage loans and commitments

therefor to non-profit corporations which are eligible borrowers as

defined in title five-A of article six of the social services law, to

make and collect from such corporations such fees and charges, including

but not limited to reimbursement of all costs of financing by the

agency, service charges and insurance premiums as the agency shall

determine to be reasonable.

(d) In connection with the making of mortgage loans and commitments

therefor to companies incorporated pursuant to the not-for-profit

corporation law and article seventy-five of the mental hygiene law, to

make and collect from such companies such fees and charges, including

but not limited to reimbursement of all costs of financing by the

agency, service charges and insurance premiums, as the agency shall

determine to be reasonable.

11-a. In connection with the making of mortgage loans and commitments

therefor to companies incorporated pursuant to the not-for-profit

corporation law and article seven-A of this chapter, to make and collect

from such companies such fees and charges, including but not limited to

reimbursement of all costs of financing by the agency, service charges

and insurance premiums, as the agency shall determine to be reasonable.

11-b. To make or finance the making of federally-aided mortgage loans

pursuant to section forty-four-c of this article and, in connection with

such mortgage loans, to exercise such powers and undertake such

responsibilities as may be required by any law, regulation or other

requirement of the federal government.

11-c. Subject to the provisions of any contract with noteholders and

bondholders (a) to make and contract for the making of mortgage loans

for the construction or rehabilitation of projects which a municipal

housing authority, constituted, created or established pursuant to

article thirteen of the public housing law, has agreed to purchase on a

turnkey basis in accordance with a federally assisted program for the

production of public housing as authorized by the United States housing

act of nineteen hundred thirty-seven as amended to the date of enactment

of this subdivision of this section, upon the completion of such

construction or rehabilitation and (b) to make and to contract for the

making of loans to, or to purchase loans from banking or other lending

institutions for the purpose of financing such construction or

rehabilitation.

12. In connection with any property on which it has made or financed a

mortgage loan, to foreclose on any such property or commence any action

to protect or enforce any right conferred upon it by any law, mortgage,

contract or other agreement, and to bid for and purchase such property

at any foreclosure or at any other sale, or acquire or take possession

of any such property; and in such event the agency may complete,

administer, pay the principal of and interest on any obligations

incurred in connection with such property, dispose of, and otherwise

deal with, such property, in such manner as may be necessary or

desirable to protect the interests of the agency therein;

13. To enter into agreements to pay annual sums in lieu of taxes to

any political subdivision of the state with respect to any real property

owned by the agency; provided, however, that the amount so paid for any

year upon any such property shall not exceed the sum last paid as taxes

on such property prior to the time of its acquisition by the agency;

14. To procure insurance against any loss in connection with its

property and other assets (including mortgages, mortgage loans and

federally guaranteed securities secured by such mortgage loans) in such

amounts, and from such insurers, as it deems desirable;

15. (a) Subject to the approval of the commissioner and to the

provisions of any contract with noteholders or bondholders, except with

any holders of hospital and nursing home project bonds or notes or youth

facilities project bonds or notes, or community mental health services

and developmental disabilities services project bonds or notes, whenever

it deems it necessary or desirable in the fulfillment of the purposes of

this article, to consent to the modification, with respect to rate of

interest, time of payment of any installment of principal or interest,

security, or any other term, of any mortgage, mortgage loan, mortgage

loan commitment, contract or agreement of any kind to which the agency

is a party, except such mortgages, mortgage loans, mortgage loan

commitments, contracts or agreements as may have been entered into with

hospital corporations which are eligible borrowers as defined in article

twenty-eight-B of the public health law, nursing home companies or

non-profit corporations which are eligible borrowers as defined in title

five-A of article six of the social services law or companies

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

seventy-five of the mental hygiene law;

(b) Subject to the provisions of any contract with holders of hospital

and nursing home project bonds or notes, whenever it deems it necessary

or desirable in the fulfillment of the purposes of this article, to

consent to the modification, with respect to rate of interest, time of

payment of any installment of principal or interest, security, or any

other term of any mortgage, mortgage loan, mortgage loan commitment,

contract or agreement of any kind between the agency and a hospital

corporation which is an eligible borrower as defined in article

twenty-eight-B of the public health law or a nursing home company;

(c) Subject to the provisions of any contract with holders of youth

facilities project bonds or notes, whenever it deems it necessary or

desirable in the fulfillment of the purposes of this article, to consent

to the modification, with respect to rate of interest, time of payment

of any installment of principal or interest, security, or any other term

of any mortgage, mortgage loan, mortgage loan commitment, contract or

agreement of any kind between the agency and a non-profit corporation

which is an eligible borrower pursuant to title five-A of article six of

the social services law.

(d) Subject to the provisions of any contract with holders of

community mental health services and developmental disabilities services

project bonds or notes, whenever it deems it necessary or desirable in

the fulfillment of the purposes of this article, to consent to the

modification, with respect to rate of interest, time of payment of any

installment of principal or interest, security, or any other term of any

mortgage, mortgage loan, mortgage loan commitment, contract or agreement

of any kind between the agency and a company incorporated pursuant to

the not-for-profit corporation law and article seventy-five of the

mental hygiene law.

15-a. Subject to the provisions of any contract with holders of

community senior citizens services project bonds or notes, whenever it

deems it necessary or desirable in the fulfillment of the purposes of

this article, to consent to the modification, with respect to rate of

interest, time of payment of any installment of principal or interest,

security, or any other term of any mortgage, mortgage loan, mortgage

loan commitment, contract or agreement of any kind between the agency

and a company incorporated pursuant to the not-for-profit corporation

law and article seven-A of this chapter.

16. To accept any gifts or grants or loans of funds or property or

financial or other aid in any form from the federal government or any

agency or instrumentality thereof or from the state or from any other

source and to comply, subject to the provisions of this article, with

the terms and conditions thereof;

17. To engage the services of private consultants on a contract basis

for rendering professional and technical assistance and advice;

18. Subject to the approval of the commissioner of housing and

community renewal, to make equity loans to mutual companies, mutual

housing companies, mutual redevelopment companies, and housing

development fund companies which are corporations organized pursuant to

the business corporation law and article eleven of this chapter, in

amounts not to exceed the aggregate face value of home owners purchase

notes accepted by such mutual companies, mutual housing companies,

mutual redevelopment companies, or housing development fund companies,

as the case may be, as consideration for the issuance of shares pursuant

to the provisions of section nineteen of article two of this chapter,

section seventy-eight of article four of this chapter, section one

hundred eight of article five of this chapter, or subdivision four of

section five hundred seventy-three of article eleven of this chapter, as

the case may be; such loans shall be repaid over or within such period

and shall be secured in such manner as the agency shall require and the

commissioner shall approve.

19. Subject to the approval of the commissioner of health pursuant to

the provisions of article twenty-eight-A of the public health law, to

make mortgage loans to non-profit nursing home companies incorporated

pursuant to the provisions of article twenty-eight-A of the public

health law and the not-for-profit corporation law and to make mortgage

loans to limited-profit nursing home companies incorporated pursuant to

the provisions of article twenty-eight-A of the public health law and to

undertake commitments to make any such mortgage loans.

20. Subject to the approval of the commissioner, to purchase or to

contract to purchase from a mutual company, or from any shareholder

thereof, as the case may be, the shares appertaining to the dwellings

leased by it for the purposes set forth in section forty-four-a of this

article, to hold such shares or to sell or to contract to sell such

shares to the sublessees of the agency who are residents in such

dwellings, or to the designees of the mutual company. Such shares shall

be purchased or sold by the agency for the par value thereof. The terms

under which such shares may be sold, or be contracted to be sold shall

be subject to the approval of the commissioner. Shares owned by the

agency may not be voted.

21. Subject to the approval of the commissioner of social services

pursuant to the provisions of title five-A of article six of the social

services law, to make mortgage loans to non-profit corporations which

are eligible borrowers pursuant to the provisions of the aforesaid title

five-A and to undertake commitments to make any such mortgage loans.

21-a. Subject to the approval of the commissioner of social services

of the state of New York pursuant to the provisions of article seven-A

of this chapter, to make mortgage loans to companies incorporated

pursuant to the provisions of such article and the not-for-profit

corporation law and to undertake commitments to make any such mortgage

loans.

22. Subject to the approval of the commissioner of mental hygiene

pursuant to the provisions of article seventy-five of the mental hygiene

law, to make loans to companies incorporated pursuant to the provisions

of article seventy-five of the mental hygiene law and the not-for-profit

corporation law and to undertake commitments to make any such mortgage

loans. No such loan or commitment made on or after June first, nineteen

hundred eighty-two, shall be made primarily for a purpose other than the

refinancing of existing indebtedness pursuant to subdivision four of

section 75.05 of the mental hygiene law.

23. Subject to the approval of the commissioner of health pursuant to

the provisions of article twenty-eight-B of the public health law, to

make mortgage loans to hospital corporations which are eligible

borrowers as defined in article twenty-eight-B of the public health law

and to undertake commitments to make any such mortgage loans.

24. To contract with the state of New York municipal bond bank agency

to render such services as the agency may deem appropriate, including

but not limited to the use of the premises, personnel and personal

property of the agency and to charge the reasonable costs thereof and

provide for the reimbursement to the agency for any expenses necessarily

incurred by the agency in carrying out the terms of such contract. Any

such contract shall be subject to the separate approval of the director

of the budget.

25. To contract with the New York state medical care facilities

finance agency to market and service any New York state medical care

facilities finance agency bonds and New York state medical care

facilities finance agency notes approved by the New York state medical

care facilities finance agency, and to contract to render such other

services as the New York state medical care facilities finance agency

may request, including but not limited to the use of the premises,

personnel and personal property of the agency, and to provide for

reimbursement to the agency from the New York state medical care

facilities finance agency for any expenses necessarily incurred by the

agency in carrying out the terms of any such contract. Any such contract

shall be subject to the separate approval of the director of the budget.

26. To contract with the New York state project finance agency to

market and service any New York state project finance agency bonds and

New York state project finance agency notes approved by the New York

state project finance agency, and to contract to render such other

services as the New York state project finance agency may request,

including but not limited to the use of the premises, personnel and

personal property of the agency, and to provide for reimbursement to the

agency from the New York state project finance agency for any expenses

necessarily incurred by the agency in carrying out the terms of any such

contract. Any such contract shall be subject to the separate approval of

the director of the budget.

27. To contract with the New York state urban development corporation

to market and service any New York state urban development corporation

bonds and New York state urban development corporation notes approved by

the New York state urban development corporation and to contract to

render such other services as the New York state urban development

corporation may request, including but not limited to the use of the

premises, personnel and personal property of the agency, and to provide

for reimbursement to the agency from the New York state urban

development corporation for any expenses necessarily incurred by the

agency in carrying out the terms of any such contract. Any such contract

shall be subject to the separate approval of the director of the budget.

28. To participate in federal programs for the insurance of mortgage

loans including programs which require the agency to share any loss

arising out of any mortgage loan insured by the federal government,

provided that the agency's share of any such loss shall not exceed fifty

percent thereof.

28-a. To acquire and enter into commitments to acquire any federally

guaranteed security to finance the making of mortgage loans pursuant to

section forty-four-c of this article and to pledge or otherwise use any

such federally guaranteed security in such manner as the agency deems in

its best interest to secure or otherwise provide a source of repayment

on bonds issued to finance the making of such mortgage loans.

29. To do any and all things necessary or convenient to carry out its

purposes and exercise the powers expressly given and granted in this

article.

* 29-a. (1) Subject to the provisions of any contract with noteholders

and bondholders (a) to make and contract for the making of loans for the

acquisition, construction or rehabilitation of housing developments for

the purpose of providing residential units for occupancy by persons and

families for whom the ordinary operations of private enterprise cannot

provide an adequate supply of safe, sanitary and affordable housing

accommodations or for residential units located in an area designated as

blighted pursuant to article fifteen or sixteen of the general municipal

law, and (b) to make and to contract for the making of loans to or to

purchase loans from lending institutions for the purpose of financing

loans for such acquisition, construction or rehabilitation. No loans may

be financed pursuant to this subdivision unless the agency finds that

portions of the housing developments are to be occupied by persons or

families of low or moderate income. In determining whether the portions

of housing developments will be so occupied, the agency may consider and

rely upon the fact that the housing developments will be occupied by

persons and families in accordance with requirements for the interest on

obligations issued to finance them to be exempt from taxation pursuant

to section 103(b)(3) or 103(b)(4)(A) of the Internal Revenue Code of

1954, as amended.

(2) With regard to any loan made pursuant to this subdivision and

notwithstanding the provisions of, or any regulation promulgated

pursuant to, the emergency housing rent control law, the local emergency

housing rent control act, or local law enacted pursuant thereto, the

rent stabilizaton law of nineteen hundred sixty-nine, or the emergency

tenant protection act of nineteen seventy-four, the owner of a housing

development otherwise subject to any such law or act, with the approval

of the agency, may establish the initial rent for each dwelling unit

within the project. If the initial rents are to be established pursuant

hereto, the agency shall notify occupants of the housing development, if

any, of any such proposed rental establishment and offer to meet at

least once with the occupants prior to its approval.

(3) The powers granted by this subdivision may be exercised only if

(a) obligations of the agency have been issued to fund the loan made or

purchased by the agency and such obligations have received an investment

grade rating from a recognized rating agency; (b) the loan made or

purchased by the agency is fully secured as to principal and interest by

insurance or a commitment to insure issued by the state of New York

mortgage agency or by the general credit of a bank, national bank, trust

company, savings bank, savings and loan association, insurance company,

governmental agency of the United States, or any combination thereof; or

(c) obligations of the agency are purchased by a bank, national bank,

trust company, savings bank, savings and loan association, insurance

company, governmental agency of the United States, which for purposes of

this subdivision, include the federal home loan mortgage corporation,

the federal national mortgage association, the governmental national

mortgage association, and any successor of the foregoing, or any

wholly-owned subsidiary or combination thereof.

* NB Repealed July 23, 2027

29-b. To carry out its powers and responsibilities with respect to

permanent housing projects for homeless families as provided for in

article three-A of this chapter.

30. (1) Subject to the provisions of any contract with noteholders and

bondholders (a) to make and contract for the making of loans for the

acquisition, refinancing, construction or rehabilitation of housing and

non-profit health facilities and (b) to make and to contract for the

making of loans to or to purchase loans from lending institutions for

the purposes of financing loans for such acquisition, construction or

rehabilitation.

(2) The powers granted by this subdivision may be exercised only if:

(a) the commissioner of health has approved any health and health

related facilities which are in addition to the residential unit and

housing portion of the facility, pursuant to section twenty-eight

hundred two of the public health law in any case where the facility is

subject to the provisions of such section or has approved the facility

according to the guidelines prescribed in any other case; (b) with

respect to any portion thereof owned by a for profit owner, the agency

makes the finding required to finance housing developments under

paragraph one of subdivision twenty-nine-a of this section; (c) (i)

obligations of the agency have been issued to fund the loan made or

purchased by the agency and such obligations have received an investment

grade rating from a recognized rating agency, or (ii) the loan made or

purchased by the agency is fully secured as to principal and interest by

insurance or a commitment to insure issued by the state of New York

mortgage agency or by the general credit of a bank, national bank, trust

company, savings bank, savings and loan association, insurance company,

the college construction loan insurance association, the student loan

marketing association, or a governmental agency of the United States;

and (d) approval from the applicable state agencies as to the need for

the project has been obtained prior to joint financing.

31. To and shall develop, promote and ensure that, where possible,

minority groups which traditionally have been disadvantaged, and women

are afforded equal opportunity for contracts in connection with

development and construction contracts for developments, facilities and

projects financed by the issuance of bonds, notes and other obligations

of the agency.

32. To transfer funds in an amount to be agreed upon, at the request

of the director of the division of the budget, to the state treasury for

deposit to the general fund as an expense of the agency. Such transfer

shall be made in such amounts and at such times as specified in an

agreement or agreements executed between the agency and the director of

the budget with copies to be provided to the chairman of the assembly

ways and means committee and the chairman of the senate finance

committee.