§ 18 — Effects of breach or of acquisition of projects by third persons

§ 18. Effects of breach or of acquisition of projects by third\npersons. In every contract for a loan by the state or for periodic\nsubsidies by the state, or both, a substantial breach of the condition\nset forth therein providing for the maintenance of the project as low\nrent housing shall be defined in such terms as the commissioner shall\ndeem to be in the public interest and consistent with the provisions and\npurposes of this chapter. In every such contract the commissioner shall\nretain the right, in the event of such a substantial breach or in the\nevent of the acquisition of title to the project by a third party, other\nthan a government authorized to engage in the administration of low rent\nhousing and approved by the commissioner, in any manner including a bona\nfide foreclosure under a mortgage or other lien held by a third party,\nto increase the interest payable thereafter on the unpaid balance of any\nloan made pursuant to the contract to a rate not in excess of the going\nstate rate of interest (at the time of such breach or acquisition) plus\ntwo per centum per annum or to declare any such unpaid balance due\nforthwith and to reduce or terminate any periodic subsidies payable\nunder the contract.\n