§ 12 — Definitions

New York § 12

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 2: Limited-profit Housing Companies

Text

§ 12. Definitions. As used in this article, the following terms shall\nmean and include:\n 1. "Areas." A section of a municipality in which there is to be\nlocated a project approved by the municipality as provided in paragraph\n(a) of subdivision one and in subdivision five of section twenty-six of\narticle two of this chapter.\n 2. "Company". A limited-profit housing company duly incorporated\npursuant to the provisions of this article, or a company incorporated\npursuant to the not-for-profit corporation law and this article for the\npurpose of providing housing and auxiliary facilities for staff members,\nemployees or students of a college, university, hospital or child care\ninstitution and their immediate families or for aged or handicapped\npersons of low income, pursuant to this article, or a municipally-aided\nnon-profit company as hereinafter defined, or a low income non-profit\nhousing company as hereinafter defined.\n 2-a. "Home owners purchase note." A promissory note accepted by a\nmutual company as consideration for the issuance of stock entitling a\nperson or family to occupancy of an apartment in a project, payable over\nor within a period of ten years.\n 2-b. "Mutual company." A company whose dwelling facilities, to the\nextent of at least eighty per centum, are occupied by persons or\nfamilies who are entitled to such occupancy by reason of ownership of\nshares in such company; provided however that a company that was not a\nmutual company prior to July first, nineteen hundred ninety-five may\nbecome a mutual company if its dwelling facilities, to the extent of at\nleast fifty per centum, are occupied by persons or families who are\nentitled to such occupancy by reason of ownership of shares in such\ncompany. The commissioner or supervising agency shall provide procedures\nfor such conversion of a company to a mutual company on or after July\nfirst, nineteen hundred ninety-five; such procedures shall require the\nsubmission of a plan for attaining eighty per centum owner occupancy.\n 2-c. "Urban Rental Company." A company whose project is located in or\nadjacent to a municipality and whose housing accommodations are occupied\nby persons or families who do not own the shares in such company.\n 3. "Occupancy date." The date defined in the contract between a\ncompany and a municipality or the state, as the case may be, as the date\nupon which the project is to be deemed ready for occupancy, or if such\nterm is not defined in such contract, the date of issuance of the\ntemporary certificate of occupancy.\n 4. "Plan." A plan or undertaking of an area or areas for providing low\nrent housing for persons of low income, and for other facilities\nincidental and appurtenant thereto.\n 5. "Project." A specific work or improvement, including lands,\nbuildings and improvements acquired, owned, constructed, rehabilitated,\nimproved, managed or operated by a company providing dwelling\naccommodations, non-housekeeping accommodations, aged care\naccommodations or accommodations for handicapped persons pursuant to\nthis article, or undertaken, planned, developed, constructed or owned\npursuant to section thirty-six-a of this article, and such business,\ncommercial, cultural, recreational, communal, dining, medical and\nnursing treatment, day care or residential child care facilities or any\ncombination thereof, or other facilities as may be deemed by the\ncommissioner with respect to a project aided by a state loan or New York\nstate housing finance agency loan or by the supervising agency with\nrespect to a municipally-aided project or a project undertaken, planned,\ndeveloped, constructed or owned pursuant to section thirty-six-a of this\narticle, to be incidental and appurtenant thereto. In the case of a\nstate loan or New York state housing finance agency loan, a project\nshall effectuate all or part of a plan, provided, however, that such\ndwelling accommodations, non-housekeeping accommodations, aged care\naccommodations or accommodations for handicapped persons may be provided\nin any section of the municipality, whether or not such section has\ninsanitary or substandard housing conditions.\n 5-a. "State urban development corporation project". A project\nacquired, owned, constructed, managed or operated by a limited-profit\nhousing company which is a subsidiary of the New York state urban\ndevelopment corporation, as the term "subsidiary" is defined in the New\nYork state urban development corporation act.\n 5-b. "Battery Park city project." A project acquired, owned,\nconstructed, managed or operated by a company organized pursuant to this\narticle and located within the Battery Park project area, as defined in\nthe Battery Park city authority act.\n 6. "Project cost". The sum total of all costs incurred by a company\nand, as approved by the commissioner in the case of a state-aided\nproject or a project aided by the New York state housing finance agency\nor by the supervising agency in the case of a municipally-aided project\nas reasonable and necessary for carrying out all works and undertakings\nfor the development of a project. These shall include but are not\nnecessarily limited to the carrying charges during construction and\nbefore physical completion or rehabilitation, working capital not\nexceeding three per cent of the estimated total cost or three per cent\nof the actual total final cost, whichever is larger, the cost of all\nnecessary studies, surveys, plans and specifications, architectural,\nengineering, or other special services, the cost of acquisition of land\nand any buildings thereon, site preparation and development,\nconstruction, reconstruction and equipment; the reasonable cost of\nfinancing incurred by the investor in the course of development of the\nproject, up to and including the occupancy date; the fees imposed by the\ncommissioner or by the supervising agency or by both; other fees charged\nin the course of the development of the project up to and including the\noccupancy date, pursuant to the provisions of this article; the\nnecessary expenses in connection with the initial occupancy of the\nproject and where applicable, the cost of such training services as will\nassist the residents of the project to acquire ownership and to operate\nthe project in an efficient and harmonious manner; and the cost of such\nother items, including tenant relocation, as the commissioner, in the\ncase of a state-aided project or a project aided by the New York state\nhousing finance agency or the supervising agency, in the case of a\nmunicipally-aided project shall determine to be reasonable and necessary\nfor the development of the project, less any and all net rents and other\nnet revenues received from the operation of the real or personal\nproperty on the project site, or any part thereof, by the company on or\nafter the date on which the contract between the company and the state\nor the New York state housing finance agency or municipality was entered\ninto and prior to the occupancy date. In the case of any project\npurchased or leased by a company from a municipality pursuant to the\nprovisions of section thirty-six-a of this article, project cost shall\ninclude the value of the lease or the purchase price paid or to be paid\nby such company to such municipality.\n 7. "Local and municipal taxes". Taxes levied by a county, city,\nvillage, town, school and special district but shall not include\nassessments for local improvements.\n 8. "Child Care Institution"--A private, non-profit, resident agency,\nassociation, corporation, institution or other organization, which is\nincorporated or organized under the laws of this state for the care and\ntreatment of children, which actually has its place of business or plant\nin this state and which submits and consents to the approval,\nvisitation, inspection and supervision of the Department of Social\nWelfare, or a similar administrative department of the State of New York\nas to any and all acts in relation to the welfare of children performed\nor to be performed thereby.\n 9. "Housing". As used in this article the term includes:\n (a) "Dwellings". "Dwelling accommodations". A room or rooms, with or\nwithout cooking facilities, arranged for occupancy as a self-contained\nunit.\n (b) "Non-housekeeping accommodations". A room or rooms, without\ncooking facilities, and with or without board designed for the occupancy\nof staff members, employees or students of a college, university or\nhospital.\n (c) "Aged care accommodations". Non-housekeeping accommodations for\naged persons with board and aged care service as may be provided as an\nincident to occupancy, provided however, that no such service shall be\nof such a nature, kind or quality as to require licensing by the state\ndepartment of health under article twenty-eight of the public health\nlaw.\n (d) "Accommodations for handicapped persons." Dwelling accommodations\ndesigned for the occupancy of handicapped persons or non-housekeeping\naccommodations designed for the occupancy of handicapped persons with\nboard and such service as may be provided as an incident to occupancy,\nprovided however, that no such service shall be of such a nature, kind\nor quality as to make the facility subject to the jurisdiction of any\nother agency of the state.\n 10. "Persons of low income" and "families of low income". Persons or\nfamilies who are in the low income groups and who cannot afford to pay\nenough to cause private enterprise in their municipality to build a\nsufficient supply of adequate, safe and sanitary dwellings,\nnon-housekeeping accommodations or aged care accommodations.\n 11. "Preliminary Costs". Project costs approved by the supervising\nagency as appropriate expenditures which may be incurred prior to\ncommitment and initial advance of the proceeds of a mortgage loan under\nthis article, including but not limited to: (a) payments for options to\npurchase properties on the proposed housing project site, deposits on\ncontracts of purchase, or with prior approval of the supervising agency,\npayments for the purchase of such properties; (b) legal and\norganizational expenses, including payment of attorneys' fees, project\nmanager and clerical staff salaries, office rent and other incidental\nexpenses; (c) payment of fees for preliminary feasibility studies and\nadvances for planning, engineering and architectural work; (d) expenses\nfor tenant surveys and market analyses; (e) necessary application and\nother fees; and (f) such other expenses incurred by the limited-profit\nhousing company as the supervising agency may deem appropriate to\neffectuate the purposes of this article.\n 12. "Municipally-aided non-profit company." A non-profit housing\ncompany duly incorporated pursuant to the not-for-profit corporation law\nand this article, which is aided by a municipal mortgage loan, a loan by\nthe New York city housing development corporation or tax exemption or\nboth and is not aided by any state mortgage loan or any mortgage loan by\nthe New York state housing finance agency or a mortgage loan insured by\nthe federal government made for the purpose of refinancing a mortgage\nloan other than a municipal mortgage loan or a mortgage loan made by the\nNew York city housing development corporation.\n 13. "Municipally-aided mutual company." A mutual company which is\naided by a municipal mortgage loan, a loan by the New York city housing\ndevelopment corporation or tax exemption or both and is not aided by any\nstate mortgage loan or any mortgage loan by the New York state housing\nfinance agency or a mortgage loan insured by the federal government made\nfor the purpose of refinancing a mortgage loan other than a municipal\nmortgage loan or a mortgage loan made by the New York city housing\ndevelopment corporation.\n 14. "Low income non-profit housing company." A non-profit housing\ncompany duly incorporated pursuant to the not-for-profit corporation law\nand this article, whose principal purpose is to provide housing for\npersons of low income and families of low income and which is aided by a\nstate mortgage loan or mortgage loan by the New York state housing\nfinance agency or a municipal mortgage loan or municipal tax exemption,\nor both, or a mortgage loan insured by the federal government.\n 15. "Residual indebtedness." Where a mortgage loan is refinanced\npursuant to section twenty-three-a or subdivision twenty-two-a of\nsection six hundred fifty-four of this chapter, residual indebtedness\nshall be the indebtedness of a company due on the original mortgage\nloan, including all unpaid principal and all interest accrued thereon,\nless an amount equal to the principal amount, when made, of the mortgage\ninsured by the federal government in connection with the refinancing.\nSuch indebtedness shall be secured by a mortgage which may be\nsubordinate to the lien of any mortgage insured by the federal\ngovernment and may contain such terms and conditions not inconsistent\nwith this article as may be approved by the supervising agency and as\nthe supervising agency may deem necessary or desirable to secure the\nrepayment of such residual indebtedness. Residual indebtedness shall not\nbe restricted by the provisions of this article relating to project\ncost.\n 16. "Residual receipts obligations". Where a mortgage loan is\nrefinanced pursuant to section twenty-three-a or subdivision\ntwenty-two-a of section six hundred fifty-four of this chapter, residual\nreceipts obligations shall mean the amount of any additional loan to a\ncompany, and any amounts paid other than by the company, to establish\nescrow accounts or reserves or to satisfy minimum property standards or\nto install life safety devices for the issuance of mortgage insurance by\nthe federal government in connection with the refinancing. With the\napproval of the supervising agency and the consent of the company,\nresidual receipts obligations may be evidenced by non-interest bearing\nresidual receipts notes. Residual receipts obligations shall be payable\nonly after the payment in full of all residual indebtedness. Residual\nreceipts obligations shall not be restricted by the provisions of this\narticle relating to project cost and shall not include any amounts\ndeposited under an agreement with the federal government for the sharing\nof claims paid by the federal government on account of insurance of\nmortgages.\n