§ 98 — Conditions in contracts for municipal aid

New York § 98

• Jurisdiction: New York
• Law PBG: Public Housing
• Art. 5: Municipal Aid

Text

§ 98. Conditions in contracts for municipal aid. In every contract\nfor a loan by a municipality or for periodic subsidies by a\nmunicipality, or both, a substantial breach of the conditions set forth\ntherein providing for the maintenance of the project as low rent housing\nshall be defined in such terms as the municipality shall deem to be in\nthe public interest and consistent with the provisions and purposes of\nthis chapter. In any such contract the municipality shall retain the\nright, in the event of such a substantial breach or in the event of\nacquisition of title to the project by a third party, other than a\ngovernment authorized to engage in the administration of low rent\nhousing, and approved by the municipality, in any manner including a\nbona fide foreclosure under a mortgage or other lien held by a third\nparty, to increase the interest payable thereafter on the unpaid balance\nof any loan made pursuant to the contract, to a rate not in excess of\nthe going rate of interest (at the time of such breach or acquisition),\nplus two 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