N.Y. Private Housing Finance Law § 83: Execution of housing company projects

§ 83. Execution of housing company projects. No building or

construction shall be undertaken by any housing company without the

approval of the commissioner. Such approval shall be conditioned upon:

1. The submission of a plan in such form and with such assurances as

the commissioner may prescribe, to raise at least twenty per centum of

the actual cost of the lands and improvements through investment in the

capital of such housing company together with the sale of income

debentures, where provided for by such plan; and to raise the balance by

mortgage bonds which shall not exceed eighty per centum of the actual

cost of the said project. The plan may provide for the raising of

working capital in an amount to be approved by the commissioner not to

exceed three per centum of the actual cost through investment in the

capital and sale of income debentures of the housing company. Wherever

reference is made in this article to cost of projects, or of buildings

and improvements in projects, such cost shall include charges for

financing and supervision approved by the commissioner, including a

reasonable proportion to be fixed by the commissioner, of the expenses

of the commissioner, applicable to the examination and supervision of

the project, and carrying charges during construction required in the

project, including interest on borrowed, and where approved by the

commissioner, on invested capital. Notwithstanding the provisions of any

other general, special or local laws, all moneys payable by the project

to reimburse the commissioner for his expenses applicable to the

examination and supervision of the project during construction as herein

provided shall be paid to the executive department.

2. The acceptance of a designee of the commissioner as a member of the

board of directors of said housing company. In the case of all mutual

companies an additional director shall be designated by the commissioner

at the creation of the company and shall serve from the time of such

designation at least until a board of directors has been elected by the

tenants entitled to occupancy in the project by reason of ownership of

shares in such company. Such directors appointed by the commissioner

need not be stockholders or meet other qualifications which may be

prescribed by the certificate of incorporation or the by-laws. In the

absence of fraud or bad faith the director appointed by the commissioner

shall not be personally liable for the debts, obligations or liabilities

of the corporation.

3. The approval by the commissioner of the plans, specifications and

estimated costs of the proposed housing facilities in respect to the

conformity thereof to reasonable standards of health, sanitation, safety

and provision for light and air.

4. When required by the commissioner, and except in the case of a

housing company which is a subsidiary of the New York state urban

development corporation, created by the New York state urban development

corporation act, the designation by the commissioner with respect to

each project approved by him of a trustee, which shall be a banking

corporation authorized to perform trust functions, and such trustee

shall receive moneys received by the housing company as its capital, or

as proceeds of its mortgage bonds, notes or income debentures and make

payment therefrom for the acquisition of land, the construction of

improvements and other items entering into cost of land and improvements

upon presentation of draft, check or order signed by a proper officer or

designee of the housing company and countersigned by the said

commissioner or a person designated by him for said purpose. Any funds

remaining in the custody of said trustee after the completion of the

said project and payment or arrangement in a manner satisfactory to the

commissioner for payment in full therefor shall be paid to the housing

company.

5. No such project shall be approved in contravention of any planning,

zoning, sanitary and building laws, ordinances and regulations

applicable to the municipality in which the project is situated.

6. Notwithstanding the provisions of subdivision five hereof, no state

urban development corporation project shall be approved unless it

complies with the requirements of local laws, ordinances, codes,

charters or regulations applicable to the construction, reconstruction,

rehabilitation, alteration or improvement of such project, except where

the state urban development corporation, in its discretion, finds such

compliance not feasible or practicable, in which event no such project

shall be approved unless it complies with the requirements of the state

building construction code, formulated by the state building code

council pursuant to article eighteen of the executive law, applicable to

such construction, reconstruction, rehabilitation, alteration or

improvement. No county, city, town or village shall have power to modify

or change the drawings, plans or specifications for the construction,

reconstruction, rehabilitation, or improvement of any such project or

the construction, plumbing, heating, lighting or other mechanical branch

of work necessary to complete the work in question, nor to require that

any person, firm or corporation employed on any such work shall perform

any such work in any other or different manner than that provided by

such plans and specifications, nor to require that any such person, firm

or corporation obtain any other or additional authority, approval,

permit or certificate, from such county, city, town or village as a

condition of doing such work, nor shall any condition whatever be

imposed by any such county, city, town or village in relation to the

work being done, and the doing of any such work by any person, firm or

corporation in accordance with the terms of such drawings, plans,

specifications or contracts shall not subject said person, firm or

corporation to any liability or penalty, civil or criminal, other than

as may be stated in such contracts or incidental to the proper

enforcement thereof; nor shall any county, city, town or village have

power to require that any subsidiary of the New York state urban

development corporation, or any lessee therefrom or successor in

interest thereto, obtain any other or additional authority, approval,

permit, certificate or certificate of occupancy from such county, city,

town or village as a condition of owning, using, maintaining, operating

or occupying any project acquired, constructed, reconstructed,

rehabilitated or improved by any such subsidiary of the New York state

urban development corporation.