§ 1122 — Manufactured home cooperative fund contracts

§ 1122. Manufactured home cooperative fund contracts. 1. Within the\nlimit of funds available in the manufactured home cooperative fund, the\nagency is hereby authorized to enter into contracts with eligible\napplicants to provide loans which such eligible applicants shall use to\nestablish manufactured home park cooperatives through acquisition or\ninfrastructure improvement or both.\n 2. No such loan may be made or its term extended pursuant to this\narticle, unless the agency determines that the eligible applicants\ncannot afford or obtain the financing necessary to accomplish the\npurposes of such loans through the ordinary unaided operation of private\nenterprise.\n 3. The agency shall not enter into loans under this article except\nwith an eligible applicant which has submitted a plan acceptable to the\nagency which provides that subsequent to conversion to cooperative\nownership, a majority of the manufactured home owners or one or more\nmembers of their immediate family intend to occupy their manufactured\nhomes as their primary residence.\n 4. Such contracts may provide for loans by the agency for the\nactivities to be carried out by the eligible applicant under the\ncontract, including participation in loans including but not limited to\nparticipation in loans originated or financed by lending institutions as\ndefined in section forty-two of this chapter, private or public employee\npension funds or the state of New York mortgage agency. Loans shall be\nat the prevailing interest rate in the area for long term residential\nmortgages or at such lower rate as the agency determines to be necessary\nfor the project to be financially feasible. Loans shall not exceed\nninety-five percent of the project costs including purchase price and\ncosts for infrastructure improvement. The term of the loan for a\ncooperative project or infrastructure improvement shall not exceed ten\nyears unless extended for periods not to exceed ten years in which case\nthe term of the loan as extended shall not exceed thirty years in the\naggregate and the amortization schedule for the loan shall not exceed\nthirty years.\n 5. In determining loans pursuant to this article the agency shall give\npreference to applications based upon the following criteria:\n (a) the extent to which park residents are threatened with\ndisplacement by the projected sale or closing of the existing park;\n (b) the scarcity of affordable alternate sites in the immediate area\nfor relocation of park residents;\n (c) the extent to which manufactured home parks, subsequent to\nreceiving assistance under this article, will be owned as a cooperative\nby shareholders or owners or holders of membership interests or\ncertificate of membership in such cooperative whose average incomes do\nnot exceed (i) the greater of one hundred percent of the median income\nfor the metropolitan statistical area in which a project is located or\none hundred percent of the median income for the state, or (ii) if the\nproject is located outside such an area, the greater of one hundred\npercent of the median income for the county in which the project is\nlocated or one hundred percent of the median income for the state;\n (d) the extent to which the proposed resident ownership structure\nprovides long-term security and tenure;\n (e) the extent to which the proposed project will be undertaken and\ncompleted in a timely fashion; and\n (f) the extent to which the homes in a park are occupied by the\nmanufactured home owners or members of their families.\n 6. The agency shall provide for the review, at periodic intervals not\nless than annually, of the performance of applicants receiving financial\nassistance pursuant to this article. Such review shall, among other\nthings, be for the purposes of ascertaining conformity to contractual\nprovisions, the financial integrity and efficiency of applicants and the\nevaluation of the applicants' activities. Contracts entered into\npursuant to this article may be terminated, funds may be withheld and\nunspent funds recaptured by the agency upon a finding of substantial\nnonperformance or breach by the applicant of its obligations under its\ncontract.\n