§ 111-B — Mortgage modification provisions for redevelopment companies in cities with a population of one million or more

New York § 111-B

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 5: Redevelopment Companies

Text

§ 111-b. Mortgage modification provisions for redevelopment companies\nin cities with a population of one million or more. 1. For purposes of\nthis section, "restrictive agreement" shall mean a binding and\nirrevocable agreement between the redevelopment company and the\nsupervising agency providing that such redevelopment company for a term\nof five years from the date of such agreement (i) shall not voluntarily\ndissolve or reconstitute pursuant to section one hundred twenty-three of\nthis article, (ii) shall exercise any and all available options to renew\nany housing assistance payments contract pursuant to section eight of\nthe United States Housing Act of nineteen hundred thirty-seven, as\namended, and any successor rent subsidy program, (iii) shall not cause\nsuch a contract to be terminated by reason of such redevelopment\ncompany's noncompliance with any of the terms thereof, and (iv) shall\nnot voluntarily cause or permit such a contract to expire, to not be\nextended, to not be renewed, or to be terminated.\n 2. Notwithstanding the provisions of this article or the provisions of\nany law, general or special, in cities with a population of one million\nor more, a redevelopment company with a federally-aided mortgage formed\npursuant to this article may borrow funds and secure the repayment\nthereof by note and mortgage or any other manner approved by the\nsupervising agency, provided, however, that (a) such approval by the\nsupervising agency shall be conditioned upon a restrictive agreement,\nand (b) such redevelopment company may not increase the rents paid by\nthe tenants to pay for any such increase in indebtedness that is not\nattributable to project cost.\n