N.Y. Private Housing Finance Law § 44-c: Federally-aided mortgage loans

§ 44-c. Federally-aided mortgage loans. 1. In addition to the powers

of the agency to make mortgage loans to companies organized pursuant to

article two of this chapter and notwithstanding any limitations

contained in such article or in this article in connection with mortgage

loans made to such companies, the agency may make or finance the making

of a federally-aided mortgage loan to the owner of a project upon such

terms and conditions not inconsistent with the provisions of this

section as it shall require, the proceeds of which are substantially to

be used to finance the construction, reconstruction, rehabilitation or

improvement of a project intended to be occupied by three or more

families. A federally-aided mortgage loan made or financed by the agency

shall not exceed an amount equal to the lesser of (i) the maximum

mortgage loan authorized or approved by the federal government or (ii)

one hundred percent of the development cost of the project approved by

the agency.

2. No federally-aided mortgage loan shall be made or financed to a

company organized pursuant to article two of this chapter unless the

commissioner has made the findings required by such article. No

federally-aided mortgage loan shall be made or financed to any other

person, firm, corporation, partnership or association unless (a) the

commissioner finds that (i) the project is consistent with the needs of

the state and the county, city, town or village in which it is located,

or with a plan or undertaking for the clearance, replanning,

reconstruction or rehabilitation of a substandard and insanitary area or

areas, and (ii) the plans and specifications for the project conform to

all applicable federal, state and local laws, ordinances, rules,

regulations or requirements, (in making such finding the commissioner

may rely upon approvals, consents and certifications of governmental

authorities exercising jurisdiction over the project, including the

federal and state government, and any subdivision, agency, bureau, board

or commission thereof), and (b) the agency finds that (i) the estimated

revenues of the project will be sufficient to cover all probable costs

of operations and maintenance, all installments of principal and

interest on the indebtedness relating to the project, taxes, and such

other expenses, including the maintenance of reserves, as may be

projected or required by the agency or the federal government, and (ii)

the project is to be substantially occupied by persons or families of

low-income. In determining whether a project will be substantially

occupied by persons or families of low-income the agency may consider

and rely upon the purpose of the federal program of mortgage insurance,

co-insurance, or housing assistance payments in connection with which

the mortgage loan is made.

3. A company organized pursuant to article two of this chapter which

subsequent to the first day of June, nineteen hundred seventy-nine has

obtained a commitment from the agency to make or finance the making of a

federally-aided mortgage loan and the project of such company shall not

be subject to any restrictions, limitation or procedure imposed by or

pursuant to such article relating to any matter which is the subject of

any restriction, limitation or procedure imposed by or pursuant to any

applicable law, regulation or requirement of the federal government or

agreement entered into pursuant thereto.

4. As used in this section or in connection with a federally-aided

mortgage loan the term project shall mean a specific work or

improvement, whether or not to effectuate all or any part of a plan, and

shall include the lands, buildings and improvements acquired, owned,

constructed, managed or operated to provide dwelling accommodations and

such incidental and appurtenant commercial, recreational and community

facilities as may be approved by the agency.