N.Y. Private Housing Finance Law § 555: Financial structure

§ 555. Financial structure. 1. (a) The entire amount to be paid in

cash or property by the stockholders and income debenture holders of a

housing company acquiring fee title to a project shall be equivalent to

at least twenty per centum of the cost of acquisition of such project as

certified by the commissioner in the case of companies organized

pursuant to the provisions of article four of this chapter, or at least

ten per centum of the cost of acquisition in the case of companies

organized pursuant to the provisions of article two of this chapter, as

certified by the commissioner or supervising agency, as the case may be.

(b) The entire amount to be paid in cash or property by the

stockholders and income debenture holders of a housing company acquiring

a project by lease shall be determined by the commissioner or

supervising agency, as the case may be. In the event a state-aided

project shall be acquired by a municipally-aided company by lease, the

approval of the commissioner shall be required in addition to the

approval of the supervising agency.

2. The provisions of subdivision one hereof shall not be applicable to

any housing company organized pursuant to article four of this chapter

if such company shall receive a loan from the federal government or any

instrumentality thereof, or if any mortgage or mortgage bonds insured by

the federal housing administration are used in financing the project, or

the acquisition thereof, in whole or in part. In such case the equity

required shall be the difference between the amount of such loan or

mortgage and the cost of acquisition.