§ 254 — Powers and limitations

New York § 254

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 6-A: Community Development Corporations

Text

§ 254. Powers and limitations. 1. Except as is inconsistent with the\nprovisions of this article, a community development corporation shall\nhave, in carrying out the purposes of this article, the powers conferred\non corporations by the general corporation law and the business\ncorporation law, and shall be subject to the limitations contained\ntherein.\n 2. Community development corporations shall have the following\nadditional powers:\n (a) To construct, reconstruct, improve, alter, repair, lease, manage,\noperate and otherwise provide projects;\n (b) To enter into contracts with the New York state housing finance\nagency for mortgage loans;\n (c) To receive assistance from the state, the federal government,\nmunicipalities and any person, firm or corporation, by contract or\notherwise; and to comply, subject to the provisions of this article,\nwith the terms and conditions of such assistance;\n (d) Subject to the approval of the commissioner, to sell, lease or\notherwise dispose of any of its real property, or any appurtenances\nthereto or any interest therein, to the municipality or to any person,\nfirm or public or private corporation approved by the municipality by\nresolution of its local legislative body. In the case of a lease or\nother disposition not divesting such corporation of title, such approval\nof the municipality may be conditioned upon the making of pro rata\npayments in lieu of taxes to the municipality;\n (e) To borrow money and give mortgages and other liens on its real and\npersonal property to secure the repayment thereof, and to issue its\nnotes, bonds or other obligations and to provide for the rights of the\nholders thereof;\n (f) Subject to the approval of the commissioner, to enter into\nagreements to pay annual sums in lieu of taxes to any political\nsubdivision of the state with respect to any of its real property;\nprovided, however, that the amount so paid for any year upon any such\nproperty shall not exceed the sum last paid as taxes on such property\nprior to the time of its acquisition by the corporation, or by the\nmunicipality if such property has been conveyed by the municipality to\nthe corporation, plus any sum or sums attributable as taxes to such\nparts or portions of such real property as may be operated for profit,\nunder lease or otherwise by or for the benefit of any private person,\nfirm or corporation.\n 3. No community development corporation shall:\n (a) Acquire any real property or interest therein unless such\ncorporation shall first have obtained from the commissioner a\ncertificate that such acquisition is consistent with the purposes of\nthis article.\n (b) Pay interest on its mortgage indebtedness at a rate higher than\nsix per centum per annum or upon its notes, bonds or other obligations.\n (c) Issue notes, bonds or other obligations relating to any project in\nan aggregate amount greater than the project cost.\n (d) Without first having obtained the written consent of the\ncommissioner:\n (i) Construct, reconstruct, improve or alter any project, or enter\ninto any contract therefor.\n (ii) Sell, transfer or assign any real property, except that no such\nconsent shall be necessary in any sale in foreclosure.\n (iii) Except as otherwise provided in this article, encumber or lease\nall or any part of its real property to any other person or corporation.\n (iv) Enter into contracts for the operation of the project.\n (v) Enter into contracts for the payment of salaries to officers or\nemployees.\n (vi) Make a guaranty of payment or pledge any or all of its assets,\nincome or revenues to secure payment of its obligations.\n (vii) Voluntarily dissolve.\n