§ 42 — Definitions

New York § 42

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 3: New York State Housing Finance Agency

Text

§ 42. Definitions. As used or referred to in this article, unless a\ndifferent meaning clearly appears from the context:\n 1. "Agency" shall mean the corporate governmental agency created by\nsection forty-three of this article.\n 1-a. "Amortized value" shall mean, when used with respect to\nsecurities purchased at a premium above or a discount below par, the\nvalue as of any given date obtained by dividing the total amount of the\npremium or discount at which such securities were purchased by the\nnumber of days remaining to maturity on such securities at the time of\nsuch purchase and by multiplying the amount so calculated by the number\nof days having passed since the date of such purchase; and (a) in the\ncase of securities purchased at a premium, by deducting the product thus\nobtained from the purchase price, and (b) in the case of securities\npurchased at a discount, by adding the product thus obtained to the\npurchase price.\n 2. "Bonds" and "notes" shall mean bonds and notes respectively, issued\nby the agency pursuant to this article.\n 3. "Equity bonds" and "equity notes" shall mean bonds and notes\nrespectively, issued by the agency pursuant to subdivision four of\nsection forty-six of this article.\n 4. "Equity loan" shall mean a loan made by the agency to a mutual\ncompany, mutual housing company, mutual redevelopment company, or\nhousing development fund company which is organized pursuant to the\nbusiness corporation law and article eleven of this chapter, in an\namount not to exceed nine per centum of project cost and not in excess\nof the aggregate face value of home owners purchase notes received by\nsuch mutual company, mutual housing company, mutual redevelopment\ncompany, or housing development fund company, as the case may be, for\nthe issuance of shares.\n 4-a. "Federally-aided mortgage loan" shall mean a loan secured by a\nfirst mortgage lien on the real property of which a project consists and\nthe personal property attached to or used in connection with the\nconstruction, acquisition, reconstruction, rehabilitation, improvement\nor operation of the project, made or financed by the agency to the owner\nof such property, which loan is insured or co-insured by the federal\ngovernment or in connection with which there has been assigned or\npledged to the agency the right to receive housing assistance payments\nto be made by the federal government under a contract entered into\npursuant to section eight of the United States housing act of nineteen\nhundred thirty-seven, as amended or supplemented, provided, however,\nthat such term shall not include mortgage loans made by the agency and\ninsured by the federal government pursuant to subsection (f) of section\ntwo hundred twenty-three of such act, to refinance mortgage loans made\nby the agency or the state prior to the first day of June, nineteen\nhundred seventy-nine or theretofore or thereafter, amended, modified, or\nincreased or loans provided for pursuant to subdivision twenty-nine-a of\nsection forty-four of this article. Where all or part of the cost of\nacquiring any real property included in the project is to be financed by\na federally-aided mortgage loan the term "owner" shall mean the owner\nupon such acquisition. Nothing contained herein shall limit or prohibit\nthe agency from consenting to the modification of any instrument\nexecuted in connection with a federally-aided mortgage loan, provided\nthat such modification will not materially reduce the value of the\nsecurity for such mortgage loan.\n 4-b. "Federally guaranteed security" means any security, investment or\nevidence of indebtedness which is issued pursuant to the national\nhousing act or any successor provision of law, as amended, which is\neither, directly or indirectly, insured or guaranteed in full as to the\nrepayment of principal and interest by the United States of America or\nany instrumentality thereof.\n 5. "Home owners purchase note" shall mean home owners purchase note as\ndefined in article one of this chapter.\n 5-a. "Insured mortgage reserve fund" shall mean the fund created by\nsection fifty-seven of this chapter.\n 6. "Mortgage loan" shall mean a loan made by the agency to a company\nin an amount not to exceed ninety per centum of the project cost, except\nthat in the case of a mutual company, an urban rental company which has\nnot been aided by any loan made prior to September first, nineteen\nhundred sixty-eight, or a non-profit company incorporated pursuant to\nthe provisions of the not-for-profit corporation law and this chapter\nfor the purpose of providing housing for staff members, employees or\nstudents of a college, university, hospital or child care institution\nand their immediate families or in the case of a community development\ncorporation the loan shall not exceed ninety-five per centum of the\nproject cost and in the case of a non-profit company incorporated\npursuant to the provisions of the not-for-profit corporation law and\nthis chapter for the purpose of providing housing for aged or\nhandicapped persons of low income or in the case of a low income\nnon-profit housing company the loan shall not exceed the total project\ncost, and secured by a first mortgage lien on the real property of which\nthe project consists and the personal property attached to or used in\nconnection with the construction, acquisition, reconstruction,\nrehabilitation, improvement or operation of the project. "Company,"\n"mutual company," "urban rental company," "project cost" and "project"\nshall mean company, mutual company, urban rental company, project cost\nand project, respectively, as defined in article two of this chapter.\n 6-a. "Mortgage loan" shall also mean a loan made by the agency to a\ncommunity senior citizens center and services company in an amount not\nto exceed the total project cost of a project undertaken by such company\npursuant to article seven-A of this chapter, and secured by a first\nmortgage lien on the real property of which the project consists and the\npersonal property attached to or used in connection with the\nconstruction, acquisition, reconstruction, rehabilitation, improvement\nor operation of the project.\n 6-b. "Mortgage loan" shall also mean a loan made by the agency to an\neligible borrower as defined in article twenty-eight-B of the public\nhealth law in an amount not to exceed the total hospital project cost\nand secured by a first mortgage lien on the real property of which the\nhospital project consists and the personal property attached to or used\nin connection with the construction, acquisition, reconstruction,\nrehabilitation, improvement or operation of the hospital project. Such\nloan may be further secured by such a lien upon other real property\nowned by the eligible borrower. Notwithstanding the foregoing provisions\nof this subdivision or any other provisions of this article to the\ncontrary, any personal property may be excluded from the lien of the\nmortgage provided (a) the commissioner of health finds that such\nproperty is not essential for the rendition of required hospital\nservices as such term is defined in article twenty-eight of the public\nhealth law, and (b) the agency consents to such exclusion. "Hospital\nproject cost" and "hospital project" shall mean hospital project cost\nand hospital project, respectively, as defined in article twenty-eight-B\nof the public health law.\n 6-c. "Mortgage loan" shall also mean a loan made by the agency to a\nlimited-profit nursing home company incorporated pursuant to the\nprovisions of article twenty-eight-A of the public health law in an\namount not to exceed ninety-five per centum of the nursing home project\ncost, and in the case of a non-profit nursing home company incorporated\npursuant to the provisions of article twenty-eight-A of the public\nhealth law and the not-for-profit corporation law in an amount not to\nexceed the total nursing home project cost, and secured by a first\nmortgage lien on the real property of which the nursing home project\nconsists and the personal property attached to or used in connection\nwith the construction, acquisition, reconstruction, rehabilitation,\nimprovement or operation of the nursing home project. Notwithstanding\nthe foregoing provisions of this subdivision or any other provision of\nthis article to the contrary, any personal property may be excluded from\nthe lien of the mortgage provided (a) the commissioner of health finds\nthat such property is not essential for the nursing home project as such\nterm is defined in article twenty-eight-A of the public health law, and\n(b) the agency consents to such exclusion. "Nursing home company",\n"limited-profit nursing home company", "non-profit nursing home\ncompany", "nursing home project cost" and "nursing home project" shall\nmean nursing home company, limited-profit nursing home company,\nnon-profit nursing home company, nursing home project cost and nursing\nhome project, respectively, as defined in article twenty-eight-A of the\npublic health law.\n 6-d. "Mortgage loan" shall also mean a loan made by the agency to a\ncompany incorporated pursuant to the provisions of the not-for-profit\ncorporation law in an amount not to exceed the total community mental\nhealth services project cost or community developmental disabilities\nservices project cost, and secured by a first mortgage lien on the real\nproperty of which the community mental health services project or\ncommunity developmental disabilities services project consists and the\npersonal property attached to or used in connection with the\nconstruction, acquisition, reconstruction, rehabilitation, improvement\nor operation of the community mental health services project or\ncommunity developmental disabilities services project. "Community mental\nhealth services company," "community developmental disabilities services\ncompany," "community mental health services project cost," "community\ndevelopmental disabilities services project cost," "community mental\nhealth services project" and "community developmental disabilities\nservices project" shall mean community mental health services company,\ncommunity developmental disabilities services company, community mental\nhealth services project cost, community developmental disabilities\nservices project cost, community mental health services project and\ncommunity developmental disabilities services project, respectively.\n 6-e. "Mortgage loan" shall also mean a loan made by the agency to a\nnon-profit corporation which is an eligible borrower as defined in title\nfive-A of article six of the social services law in an amount not to\nexceed the total youth facilities project cost, and secured by a first\nmortgage lien on the real property of which the youth facilities project\nconsists and the personal property attached to or used in connection\nwith the construction, acquisition, reconstruction, rehabilitation,\nimprovement or operation of the youth facilities project. "Youth\nfacilities project cost" and "youth facilities project" shall mean youth\nfacilities project cost and youth facilities project, respectively, as\ndefined in title five-A of article six of the social services law.\n 6-f. "Mortgage loan" shall also mean an instrument or instruments made\nby a company to evidence residual indebtedness, which instrument or\ninstruments are secured by a mortgage on the real property of the\nproject.\n * 6-g. "Mortgage loan" shall also mean a loan secured by a first\nmortgage lien on the real property of which a project consists and the\npersonal property attached to or used in connection with the\nconstruction or rehabilitation of the project, made or financed by the\nagency to the owner of such property, which property a municipal housing\nauthority, constituted, created or established pursuant to article\nthirteen of the public housing law, has agreed to purchase upon the\ncompletion of such construction or rehabilitation.\n * NB There are 2 sb 6-g's\n * 6-g. "Mortgage loan" shall also mean a loan made by the agency to a\nmutual housing company for the purpose of refinancing the existing\nmortgage indebtedness of such company in an amount not to exceed the\ncost of refinancing the existing mortgage indebtedness of such company\nand necessary funds for the replacement, improvement and rehabilitation\nof the project owned by such company, all costs incurred by such company\nrelating to the refinancing of the existing mortgage indebtedness\nincluding amounts required to establish escrow accounts, reserves and\nworking capital as determined by the agency, and such other amounts as\nare permitted by article four of this chapter, and secured by a first\nmortgage lien on the real property of which the project consists and the\npersonal property attached to or used in connection with the\nconstruction, acquisition, reconstruction, rehabilitation, improvement\nor operation of the project.\n * NB (Operative pending ruling by Internal Revenue Service)\n * NB There are 2 sb 6-g's\n 7. "Mutual company", "mutual housing company" and "mutual\nredevelopment company" shall mean mutual company, mutual housing company\nand mutual redevelopment company as defined in articles two, four and\nfive, respectively, of this chapter.\n 8. "Non-profit company" shall mean a company incorporated pursuant to\nthe provisions of the not-for-profit corporation law and article two of\nthis chapter for the purpose of providing housing for staff members,\nemployees or students of a college, university, hospital or child care\ninstitution and their immediate families or for handicapped or aged\npersons of low income or housing for persons of low income or housing\nfor families of low income as defined under article two of this chapter.\n 9. "Community development corporation" shall mean a corporation\nincorporated pursuant to the provisions of the not-for-profit\ncorporation law and article six-A of this chapter.\n 10. "Non-profit project bonds" and "non-profit project notes" shall\nmean bonds and notes respectively, issued by the agency for the purposes\nof making mortgage loans to mutual companies, non-profit companies or\ncommunity development corporations paying interest on such bonds and\nnotes, establishing reserves to secure such bonds and notes, and paying\nof all other expenditures of the agency incident to and necessary or\nconvenient for the making of such mortgage loans.\n 11. "Hospital and nursing home project bonds" and "hospital and\nnursing home project notes" shall mean bonds and notes respectively,\nissued by the agency for the purposes of making mortgage loans to\nhospital corporations which are eligible borrowers as defined in article\ntwenty-eight-B of the public health law or nursing home companies,\npaying interest on such bonds and notes, establishing reserves to secure\nsuch bonds and notes, and paying of all other expenditures of the agency\nincident to and necessary or convenient for the making of such mortgage\nloans.\n 12. "Urban rental project bonds" and "urban rental project notes"\nshall mean bonds and notes respectively, issued by the agency after\nAugust thirty-first, nineteen hundred sixty-eight, for the purposes of\nmaking mortgage loans to urban rental companies, paying interest on such\nbonds and notes, establishing reserves to secure such bonds and notes,\nand paying of all other expenditures of the agency incident to and\nnecessary or convenient for the making of such mortgage loans.\n 13. "Youth facilities project bonds" and "youth facilities project\nnotes" shall mean bonds and notes, respectively, issued by the agency\nfor the purposes of making mortgage loans to non-profit corporations\nwhich are eligible borrowers as defined in title five-A of article six\nof the social services law, paying interest on such bonds and notes,\nestablishing reserves to secure such bonds and notes, and paying of all\nother expenditures of the agency incident to and necessary or convenient\nfor the making of such mortgage loans.\n 14. "Community mental health services and developmental disabilities\nservices project bonds" and "community mental health services and\ndevelopmental disabilities services project notes" shall mean bonds and\nnotes, respectively, issued by the agency for the purposes of making\nmortgage loans to companies incorporated pursuant to the not-for-profit\ncorporation law, paying interest on such bonds and notes, establishing\nreserves to secure such bonds and notes, and paying of all other\nexpenditures of the agency incident to and necessary or convenient for\nthe making of such mortgage loans.\n 14-a. "Community mental health services and developmental disabilities\nservices project revenue bonds" and "community mental health services\nand developmental disabilities services project revenue notes" shall\nmean bonds and notes, respectively, issued by the agency for the purpose\nof making mortgage loans to companies incorporated pursuant to the\nnot-for-profit corporation law and article seventy-five of title E of\nthe mental hygiene law, paying interest on such bonds and notes,\nestablishing reserves to secure such bonds and notes, and paying of all\nother expenditures of the agency incident to and necessary or convenient\nfor the making of such mortgage loans.\n 15. "Community senior citizens services project bonds" and "community\nsenior citizens services project notes" shall mean bonds and notes,\nrespectively, issued by the agency for the purposes of making mortgage\nloans to companies incorporated pursuant to the not-for-profit\ncorporation law and article seven-A of this chapter, paying interest on\nsuch bonds and notes, establishing reserves to secure such bonds and\nnotes, and paying of all other expenditures of the agency incident to\nand necessary or convenient for the making of such mortgage loans.\n 16. "State of New York municipal bond bank agency bonds" and "State of\nNew York municipal bond agency notes" shall mean bonds and notes,\nrespectively, issued by the state of New York municipal bond bank agency\nfor the purposes of purchasing municipal bonds from municipalities.\n 17. "New York state medical care facilities finance agency bonds" and\n"New York state medical care facilities finance agency notes" shall mean\nbonds and notes, respectively, issued by the New York state medical care\nfacilities finance agency for the corporate purposes of the New York\nstate medical care facilities finance agency.\n 18. "New York state project finance agency bonds" and "New York state\nproject finance agency notes" shall mean bonds and notes, respectively,\nissued by the New York state project finance agency for the corporate\npurposes of the New York state project finance agency.\n 19. "Residual indebtedness." Residual indebtedness shall be\nindebtedness of a company in an amount equal to the unpaid principal\nbalance due on the original mortgage plus all interest accrued thereon\nat such time as the mortgage is refinanced less an amount equal to the\nprincipal amount, when made, of the mortgage insured by the federal\ngovernment in connection with the refinancing of a project. Such\nindebtedness shall be secured by a mortgage which may be subordinate to\nthe lien of any mortgage loan insured by the federal government and may\ncontain such terms and conditions not inconsistent with this article as\nmay be approved by the commissioner, and as the agency may deem\nnecessary or desirable to secure the repayment of such residual\nindebtedness.\n * 20. "Revenue housing bonds" shall mean bonds issued by the agency\nafter May thirty-first, nineteen hundred seventy-six for the purpose of\nmaking mortgage loans to mutual companies, non-profit companies, or\nurban rental companies, funding non-profit project notes and urban\nrental project notes issued for the purpose of making such mortgage\nloans, paying interest on such bonds, establishing reserves to secure\nsuch bonds and paying all other expenditures of the agency incident to\nand necessary or convenient for the making of such mortgage loans or the\nfunding of such notes.\n* NB (Effective until ruling by Internal Revenue Service)\n * 20. "Revenue housing bonds" shall mean bonds issued by the agency\nafter May thirty-first, nineteen hundred seventy-six for the purpose of\nmaking mortgage loans to mutual companies, mutual housing companies,\nnon-profit companies, or urban rental companies, funding non-profit\nproject notes and urban rental project notes issued for the purpose of\nmaking such mortgage loans, paying interest on such bonds, establishing\nreserves to secure such bonds and paying all other expenditures of the\nagency incident to and necessary or convenient for the making of such\nmortgage loans or the funding of such notes.\n* NB (Effective pending ruling by Internal Revenue Service)\n 21. "Special revenue housing coverage reserve funds" shall mean the\nfunds created by section fifty-eight of this article.\n 22. "Bond reserve insurance fund" shall mean the fund created by\nsection fifty-nine of this article.\n * 23. "Lending institution" shall mean any bank or trust company or\nsavings bank, or any corporation, association or other entity which is\nowned or controlled by any one or more such bank or trust company or\nsavings bank, or any savings and loan association, credit union, federal\nnational mortgage association approved mortgage banker, national banking\nassociation, federal savings and loan association, federal savings bank,\npublic pension fund, pension fund with assets over fifty million\ndollars, insurance company, federal credit union or other financial\ninstitution or governmental agency of the United States which\ncustomarily makes, purchases, holds, insures or services residential\nmortgages.\n * NB Effective until July 23, 2027\n * 23. "Lending institution" shall mean any bank or trust company or\nsavings bank, or any corporation, association or other entity which is\nowned or controlled by any one or more such bank or trust company or\nsavings bank, or any savings and loan association, industrial bank,\ncredit union, federal national mortgage association approved mortgage\nbanker, national banking association, federal savings and loan\nassociation, pension fund, insurance company, federal credit union or\nother financial institution or governmental agency of the United States\nwhich customarily makes, purchases, holds or services residential\nmortgages.\n * NB Effective July 23, 2027\n * 24. "Housing development" shall mean a specific work or improvement,\nwhether or not to effectuate all or any part of a plan, and consisting\nof five or more residential units, and including the lands, buildings\nand improvements acquired, owned, constructed, managed or operated to\nprovide such units and such incidental and appurtenant commercial,\nrecreation, cultural, communal, dining, medical and nursing treatment,\nday care or residential child care and community facilities as may be\napproved by the agency. As used in connection with the term housing\ndevelopment, the term residential unit shall refer to units suitable for\nresidential use or accommodations included within the term housing as\ndefined in subdivision nine of section twelve of this chapter.\n * NB Repealed July 23, 2027\n 25. "Housing and non-profit health facility" shall mean a specific\nwork or improvement, whether or not to effectuate all or any part of a\nplan consisting of five or more residential units, and at the election\nof the agency such additional health and health related facilities as\nthe agency may approve; and including the lands, buildings and\nimprovements acquired, owned, constructed, managed or operated to\nprovide such units and health, or health related facilities and such\nincidental and appurtenant commercial, recreation, cultural, communal,\ndining, parking, day care or residential child care, senior citizen and\ncommunity facilities as may be approved by the agency acquired, owned,\nconstructed, rehabilitated, improved, managed or operated by a\nnon-profit company except that any portion thereof meeting the\ndefinition of a housing development set forth in subdivision twenty-four\nhereof may be separately owned by a for profit owner approved by the\nagency. As used in connection with the term housing and non-profit\nhealth facility, the term residential unit shall refer to units suitable\nfor residential use or accommodations included within the term housing\nas defined in subdivision nine of section twelve of this chapter, and\nthe term non-profit company shall mean a company incorporated pursuant\nto the provisions of the not-for-profit corporation law for the purpose\nof providing housing for staff members, employees, students or users of\na hospital, health, health related facility and their immediate families\nor for the purpose of providing a hospital, health, or health related\nfacility.\n