N.Y. Public Housing Law § 18: Effects of breach or of acquisition of projects by third persons

§ 18. Effects of breach or of acquisition of projects by third

persons. In every contract for a loan by the state or for periodic

subsidies by the state, or both, a substantial breach of the condition

set forth therein providing for the maintenance of the project as low

rent housing shall be defined in such terms as the commissioner shall

deem to be in the public interest and consistent with the provisions and

purposes of this chapter. In every such contract the commissioner shall

retain the right, in the event of such a substantial breach or in the

event of the acquisition of title to the project by a third party, other

than a government authorized to engage in the administration of low rent

housing and approved by the commissioner, in any manner including a bona

fide foreclosure under a mortgage or other lien held by a third party,

to increase the interest payable thereafter on the unpaid balance of any

loan made pursuant to the contract to a rate not in excess of the going

state rate of interest (at the time of such breach or acquisition) plus

two per centum per annum or to declare any such unpaid balance due

forthwith and to reduce or terminate any periodic subsidies payable

under the contract.