§ 44 — Powers of the agency

New York § 44

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

Text

§ 44. Powers of the agency. Except as otherwise limited by this\narticle, the agency shall have power:\n 1. To sue and be sued;\n 2. To have a seal and alter the same at pleasure;\n 3. To make and execute contracts and all other instruments necessary\nor convenient for the exercise of its power and functions under this\narticle;\n 4. To make and alter by-laws for its organization and internal\nmanagement and, subject to agreements with noteholders or bondholders,\nto make rules and regulations governing the use of its property and\nfacilities, which rules and regulations shall be filed with the\ndepartment of state in the manner provided by section one hundred two of\nthe executive law;\n 5. To acquire, hold and dispose of personal property for its corporate\npurposes;\n 6. To appoint officers, agents and employees, prescribe their duties\nand fix their compensation, subject to the provisions of the civil\nservice law and to the rules and regulations of the civil service\ncommission of this state;\n 7. To borrow money and issue negotiable notes, bonds or other\nobligations and to provide for the rights of the holders thereof;\n 8. Subject to any agreements with noteholders or bondholders, to\ninvest any funds held in reserve or sinking funds, including the insured\nmortgage reserve fund and any special revenue housing coverage reserve\nfund or any monies not required for immediate use or disbursement, at\nthe discretion of the agency, in obligations of the state or the United\nStates government or obligations the principal and interest of which are\nguaranteed by the state or the United States government, or in any other\nobligations in which the comptroller of the state of New York is\nauthorized to invest pursuant to section ninety-eight of the state\nfinance law;\n 9. Subject to the approval of the commissioner in the case of mortgage\nloans to other than hospital corporations which are eligible borrowers\nas defined in article twenty-eight-B of the public health law or nursing\nhome companies, non-profit corporations which are eligible borrowers as\ndefined in title five-A of article six of the social services law, or\ncompanies incorporated pursuant to the not-for-profit corporation law\nand article seventy-five of the mental hygiene law, who shall be guided\nby the provisions governing state loans contained in article two of this\nchapter, to make mortgage loans, to participate with the state in making\nmortgage loans and to undertake commitments to make any such mortgage\nloans;\n 9-a. Subject to the approval of the commissioner of social services of\nthe state of New York, to make mortgage loans and to undertake\ncommitments to make mortgage loans to community senior citizens centers\nand services companies under and pursuant to article seven-A of this\nchapter.\n 10. Subject to the approval of the commissioner of housing and\ncommunity renewal, the state commissioner of health, the state\ncommissioner of mental hygiene or the state commissioner of social\nservices, as the case may be, to sell, at public or private sale, any\nmortgage or other obligation securing a mortgage loan made by the\nagency;\n * 10-a. To acquire and to contract to acquire, by assignment or\notherwise, any mortgage securing a loan and any note or bond made by a\nmutual housing company and to modify or satisfy such mortgage, bond or\nnote and accept or make a new mortgage and other instruments for the\npurpose of refinancing the existing indebtedness of such company.\n * NB (Effective pending ruling by Internal Revenue Service)\n 11. (a) In connection with the making or financing the making of\nmortgage loans and commitments therefor, except mortgage loans and\ncommitments made with hospital corporations which are eligible borrowers\nas defined in article twenty-eight-B of the public health law, nursing\nhome companies, non-profit corporations which are eligible borrowers as\ndefined in title five-A of article six of the social services law, or\ncompanies incorporated pursuant to the not-for-profit corporation law\nand article seventy-five of the mental hygiene law, to make and collect\nsuch fees and charges, including but not limited to reimbursement of all\ncosts of financing by the agency, service charges and insurance\npremiums, as the agency shall determine to be reasonable and as shall be\napproved by the commissioner of housing;\n (b) In connection with the making of mortgage loans and commitments\ntherefor to hospital corporations which are eligible borrowers as\ndefined in article twenty-eight-B of the public health law or nursing\nhome companies, to make and collect from such corporations and companies\nsuch fees and charges, including but not limited to reimbursement of all\ncosts of financing by the agency, service charges and insurance\npremiums, as the agency shall determine to be reasonable;\n (c) In connection with the making of mortgage loans and commitments\ntherefor to non-profit corporations which are eligible borrowers as\ndefined in title five-A of article six of the social services law, to\nmake and collect from such corporations such fees and charges, including\nbut not limited to reimbursement of all costs of financing by the\nagency, service charges and insurance premiums as the agency shall\ndetermine to be reasonable.\n (d) In connection with the making of mortgage loans and commitments\ntherefor to companies incorporated pursuant to the not-for-profit\ncorporation law and article seventy-five of the mental hygiene law, to\nmake and collect from such companies such fees and charges, including\nbut not limited to reimbursement of all costs of financing by the\nagency, service charges and insurance premiums, as the agency shall\ndetermine to be reasonable.\n 11-a. In connection with the making of mortgage loans and commitments\ntherefor to companies incorporated pursuant to the not-for-profit\ncorporation law and article seven-A of this chapter, to make and collect\nfrom such companies such fees and charges, including but not limited to\nreimbursement of all costs of financing by the agency, service charges\nand insurance premiums, as the agency shall determine to be reasonable.\n 11-b. To make or finance the making of federally-aided mortgage loans\npursuant to section forty-four-c of this article and, in connection with\nsuch mortgage loans, to exercise such powers and undertake such\nresponsibilities as may be required by any law, regulation or other\nrequirement of the federal government.\n 11-c. Subject to the provisions of any contract with noteholders and\nbondholders (a) to make and contract for the making of mortgage loans\nfor the construction or rehabilitation of projects which a municipal\nhousing authority, constituted, created or established pursuant to\narticle thirteen of the public housing law, has agreed to purchase on a\nturnkey basis in accordance with a federally assisted program for the\nproduction of public housing as authorized by the United States housing\nact of nineteen hundred thirty-seven as amended to the date of enactment\nof this subdivision of this section, upon the completion of such\nconstruction or rehabilitation and (b) to make and to contract for the\nmaking of loans to, or to purchase loans from banking or other lending\ninstitutions for the purpose of financing such construction or\nrehabilitation.\n 12. In connection with any property on which it has made or financed a\nmortgage loan, to foreclose on any such property or commence any action\nto protect or enforce any right conferred upon it by any law, mortgage,\ncontract or other agreement, and to bid for and purchase such property\nat any foreclosure or at any other sale, or acquire or take possession\nof any such property; and in such event the agency may complete,\nadminister, pay the principal of and interest on any obligations\nincurred in connection with such property, dispose of, and otherwise\ndeal with, such property, in such manner as may be necessary or\ndesirable to protect the interests of the agency therein;\n 13. To enter into agreements to pay annual sums in lieu of taxes to\nany political subdivision of the state with respect to any real property\nowned by the agency; provided, however, that the amount so paid for any\nyear upon any such property shall not exceed the sum last paid as taxes\non such property prior to the time of its acquisition by the agency;\n 14. To procure insurance against any loss in connection with its\nproperty and other assets (including mortgages, mortgage loans and\nfederally guaranteed securities secured by such mortgage loans) in such\namounts, and from such insurers, as it deems desirable;\n 15. (a) Subject to the approval of the commissioner and to the\nprovisions of any contract with noteholders or bondholders, except with\nany holders of hospital and nursing home project bonds or notes or youth\nfacilities project bonds or notes, or community mental health services\nand developmental disabilities services project bonds or notes, whenever\nit deems it necessary or desirable in the fulfillment of the purposes of\nthis article, to consent to the modification, with respect to rate of\ninterest, time of payment of any installment of principal or interest,\nsecurity, or any other term, of any mortgage, mortgage loan, mortgage\nloan commitment, contract or agreement of any kind to which the agency\nis a party, except such mortgages, mortgage loans, mortgage loan\ncommitments, contracts or agreements as may have been entered into with\nhospital corporations which are eligible borrowers as defined in article\ntwenty-eight-B of the public health law, nursing home companies or\nnon-profit corporations which are eligible borrowers as defined in title\nfive-A of article six of the social services law or companies\nincorporated pursuant to the not-for-profit corporation law and article\nseventy-five of the mental hygiene law;\n (b) Subject to the provisions of any contract with holders of hospital\nand nursing home project bonds or notes, whenever it deems it necessary\nor desirable in the fulfillment of the purposes of this article, to\nconsent to the modification, with respect to rate of interest, time of\npayment of any installment of principal or interest, security, or any\nother term of any mortgage, mortgage loan, mortgage loan commitment,\ncontract or agreement of any kind between the agency and a hospital\ncorporation which is an eligible borrower as defined in article\ntwenty-eight-B of the public health law or a nursing home company;\n (c) Subject to the provisions of any contract with holders of youth\nfacilities project bonds or notes, whenever it deems it necessary or\ndesirable in the fulfillment of the purposes of this article, to consent\nto the modification, with respect to rate of interest, time of payment\nof any installment of principal or interest, security, or any other term\nof any mortgage, mortgage loan, mortgage loan commitment, contract or\nagreement of any kind between the agency and a non-profit corporation\nwhich is an eligible borrower pursuant to title five-A of article six of\nthe social services law.\n (d) Subject to the provisions of any contract with holders of\ncommunity mental health services and developmental disabilities services\nproject bonds or notes, whenever it deems it necessary or desirable in\nthe fulfillment of the purposes of this article, to consent to the\nmodification, with respect to rate of interest, time of payment of any\ninstallment of principal or interest, security, or any other term of any\nmortgage, mortgage loan, mortgage loan commitment, contract or agreement\nof any kind between the agency and a company incorporated pursuant to\nthe not-for-profit corporation law and article seventy-five of the\nmental hygiene law.\n 15-a. Subject to the provisions of any contract with holders of\ncommunity senior citizens services project bonds or notes, whenever it\ndeems it necessary or desirable in the fulfillment of the purposes of\nthis article, to consent to the modification, with respect to rate of\ninterest, time of payment of any installment of principal or interest,\nsecurity, or any other term of any mortgage, mortgage loan, mortgage\nloan commitment, contract or agreement of any kind between the agency\nand a company incorporated pursuant to the not-for-profit corporation\nlaw and article seven-A of this chapter.\n 16. To accept any gifts or grants or loans of funds or property or\nfinancial or other aid in any form from the federal government or any\nagency or instrumentality thereof or from the state or from any other\nsource and to comply, subject to the provisions of this article, with\nthe terms and conditions thereof;\n 17. To engage the services of private consultants on a contract basis\nfor rendering professional and technical assistance and advice;\n 18. Subject to the approval of the commissioner of housing and\ncommunity renewal, to make equity loans to mutual companies, mutual\nhousing companies, mutual redevelopment companies, and housing\ndevelopment fund companies which are corporations organized pursuant to\nthe business corporation law and article eleven of this chapter, in\namounts not to exceed the aggregate face value of home owners purchase\nnotes accepted by such mutual companies, mutual housing companies,\nmutual redevelopment companies, or housing development fund companies,\nas the case may be, as consideration for the issuance of shares pursuant\nto the provisions of section nineteen of article two of this chapter,\nsection seventy-eight of article four of this chapter, section one\nhundred eight of article five of this chapter, or subdivision four of\nsection five hundred seventy-three of article eleven of this chapter, as\nthe case may be; such loans shall be repaid over or within such period\nand shall be secured in such manner as the agency shall require and the\ncommissioner shall approve.\n 19. Subject to the approval of the commissioner of health pursuant to\nthe provisions of article twenty-eight-A of the public health law, to\nmake mortgage loans to non-profit nursing home companies incorporated\npursuant to the provisions of article twenty-eight-A of the public\nhealth law and the not-for-profit corporation law and to make mortgage\nloans to limited-profit nursing home companies incorporated pursuant to\nthe provisions of article twenty-eight-A of the public health law and to\nundertake commitments to make any such mortgage loans.\n 20. Subject to the approval of the commissioner, to purchase or to\ncontract to purchase from a mutual company, or from any shareholder\nthereof, as the case may be, the shares appertaining to the dwellings\nleased by it for the purposes set forth in section forty-four-a of this\narticle, to hold such shares or to sell or to contract to sell such\nshares to the sublessees of the agency who are residents in such\ndwellings, or to the designees of the mutual company. Such shares shall\nbe purchased or sold by the agency for the par value thereof. The terms\nunder which such shares may be sold, or be contracted to be sold shall\nbe subject to the approval of the commissioner. Shares owned by the\nagency may not be voted.\n 21. Subject to the approval of the commissioner of social services\npursuant to the provisions of title five-A of article six of the social\nservices law, to make mortgage loans to non-profit corporations which\nare eligible borrowers pursuant to the provisions of the aforesaid title\nfive-A and to undertake commitments to make any such mortgage loans.\n 21-a. Subject to the approval of the commissioner of social services\nof the state of New York pursuant to the provisions of article seven-A\nof this chapter, to make mortgage loans to companies incorporated\npursuant to the provisions of such article and the not-for-profit\ncorporation law and to undertake commitments to make any such mortgage\nloans.\n 22. Subject to the approval of the commissioner of mental hygiene\npursuant to the provisions of article seventy-five of the mental hygiene\nlaw, to make loans to companies incorporated pursuant to the provisions\nof article seventy-five of the mental hygiene law and the not-for-profit\ncorporation law and to undertake commitments to make any such mortgage\nloans. No such loan or commitment made on or after June first, nineteen\nhundred eighty-two, shall be made primarily for a purpose other than the\nrefinancing of existing indebtedness pursuant to subdivision four of\nsection 75.05 of the mental hygiene law.\n 23. Subject to the approval of the commissioner of health pursuant to\nthe provisions of article twenty-eight-B of the public health law, to\nmake mortgage loans to hospital corporations which are eligible\nborrowers as defined in article twenty-eight-B of the public health law\nand to undertake commitments to make any such mortgage loans.\n 24. To contract with the state of New York municipal bond bank agency\nto render such services as the agency may deem appropriate, including\nbut not limited to the use of the premises, personnel and personal\nproperty of the agency and to charge the reasonable costs thereof and\nprovide for the reimbursement to the agency for any expenses necessarily\nincurred by the agency in carrying out the terms of such contract. Any\nsuch contract shall be subject to the separate approval of the director\nof the budget.\n 25. To contract with the New York state medical care facilities\nfinance agency to market and service any New York state medical care\nfacilities finance agency bonds and New York state medical care\nfacilities finance agency notes approved by the New York state medical\ncare facilities finance agency, and to contract to render such other\nservices as the New York state medical care facilities finance agency\nmay request, including but not limited to the use of the premises,\npersonnel and personal property of the agency, and to provide for\nreimbursement to the agency from the New York state medical care\nfacilities finance agency for any expenses necessarily incurred by the\nagency in carrying out the terms of any such contract. Any such contract\nshall be subject to the separate approval of the director of the budget.\n 26. To contract with the New York state project finance agency to\nmarket and service any New York state project finance agency bonds and\nNew York state project finance agency notes approved by the New York\nstate project finance agency, and to contract to render such other\nservices as the New York state project finance agency may request,\nincluding but not limited to the use of the premises, personnel and\npersonal property of the agency, and to provide for reimbursement to the\nagency from the New York state project finance agency for any expenses\nnecessarily incurred by the agency in carrying out the terms of any such\ncontract. Any such contract shall be subject to the separate approval of\nthe director of the budget.\n 27. To contract with the New York state urban development corporation\nto market and service any New York state urban development corporation\nbonds and New York state urban development corporation notes approved by\nthe New York state urban development corporation and to contract to\nrender such other services as the New York state urban development\ncorporation may request, including but not limited to the use of the\npremises, personnel and personal property of the agency, and to provide\nfor reimbursement to the agency from the New York state urban\ndevelopment corporation for any expenses necessarily incurred by the\nagency in carrying out the terms of any such contract. Any such contract\nshall be subject to the separate approval of the director of the budget.\n 28. To participate in federal programs for the insurance of mortgage\nloans including programs which require the agency to share any loss\narising out of any mortgage loan insured by the federal government,\nprovided that the agency's share of any such loss shall not exceed fifty\npercent thereof.\n 28-a. To acquire and enter into commitments to acquire any federally\nguaranteed security to finance the making of mortgage loans pursuant to\nsection forty-four-c of this article and to pledge or otherwise use any\nsuch federally guaranteed security in such manner as the agency deems in\nits best interest to secure or otherwise provide a source of repayment\non bonds issued to finance the making of such mortgage loans.\n 29. To do any and all things necessary or convenient to carry out its\npurposes and exercise the powers expressly given and granted in this\narticle.\n * 29-a. (1) Subject to the provisions of any contract with noteholders\nand bondholders (a) to make and contract for the making of loans for the\nacquisition, construction or rehabilitation of housing developments for\nthe purpose of providing residential units for occupancy by persons and\nfamilies for whom the ordinary operations of private enterprise cannot\nprovide an adequate supply of safe, sanitary and affordable housing\naccommodations or for residential units located in an area designated as\nblighted pursuant to article fifteen or sixteen of the general municipal\nlaw, and (b) to make and to contract for the making of loans to or to\npurchase loans from lending institutions for the purpose of financing\nloans for such acquisition, construction or rehabilitation. No loans may\nbe financed pursuant to this subdivision unless the agency finds that\nportions of the housing developments are to be occupied by persons or\nfamilies of low or moderate income. In determining whether the portions\nof housing developments will be so occupied, the agency may consider and\nrely upon the fact that the housing developments will be occupied by\npersons and families in accordance with requirements for the interest on\nobligations issued to finance them to be exempt from taxation pursuant\nto section 103(b)(3) or 103(b)(4)(A) of the Internal Revenue Code of\n1954, as amended.\n (2) With regard to any loan made pursuant to this subdivision and\nnotwithstanding the provisions of, or any regulation promulgated\npursuant to, the emergency housing rent control law, the local emergency\nhousing rent control act, or local law enacted pursuant thereto, the\nrent stabilizaton law of nineteen hundred sixty-nine, or the emergency\ntenant protection act of nineteen seventy-four, the owner of a housing\ndevelopment otherwise subject to any such law or act, with the approval\nof the agency, may establish the initial rent for each dwelling unit\nwithin the project. If the initial rents are to be established pursuant\nhereto, the agency shall notify occupants of the housing development, if\nany, of any such proposed rental establishment and offer to meet at\nleast once with the occupants prior to its approval.\n (3) The powers granted by this subdivision may be exercised only if\n(a) obligations of the agency have been issued to fund the loan made or\npurchased by the agency and such obligations have received an investment\ngrade rating from a recognized rating agency; (b) the loan made or\npurchased by the agency is fully secured as to principal and interest by\ninsurance or a commitment to insure issued by the state of New York\nmortgage agency or by the general credit of a bank, national bank, trust\ncompany, savings bank, savings and loan association, insurance company,\ngovernmental agency of the United States, or any combination thereof; or\n(c) obligations of the agency are purchased by a bank, national bank,\ntrust company, savings bank, savings and loan association, insurance\ncompany, governmental agency of the United States, which for purposes of\nthis subdivision, include the federal home loan mortgage corporation,\nthe federal national mortgage association, the governmental national\nmortgage association, and any successor of the foregoing, or any\nwholly-owned subsidiary or combination thereof.\n * NB Repealed July 23, 2027\n 29-b. To carry out its powers and responsibilities with respect to\npermanent housing projects for homeless families as provided for in\narticle three-A of this chapter.\n 30. (1) Subject to the provisions of any contract with noteholders and\nbondholders (a) to make and contract for the making of loans for the\nacquisition, refinancing, construction or rehabilitation of housing and\nnon-profit health facilities and (b) to make and to contract for the\nmaking of loans to or to purchase loans from lending institutions for\nthe purposes of financing loans for such acquisition, construction or\nrehabilitation.\n (2) The powers granted by this subdivision may be exercised only if:\n(a) the commissioner of health has approved any health and health\nrelated facilities which are in addition to the residential unit and\nhousing portion of the facility, pursuant to section twenty-eight\nhundred two of the public health law in any case where the facility is\nsubject to the provisions of such section or has approved the facility\naccording to the guidelines prescribed in any other case; (b) with\nrespect to any portion thereof owned by a for profit owner, the agency\nmakes the finding required to finance housing developments under\nparagraph one of subdivision twenty-nine-a of this section; (c) (i)\nobligations of the agency have been issued to fund the loan made or\npurchased by the agency and such obligations have received an investment\ngrade rating from a recognized rating agency, or (ii) the loan made or\npurchased by the agency is fully secured as to principal and interest by\ninsurance or a commitment to insure issued by the state of New York\nmortgage agency or by the general credit of a bank, national bank, trust\ncompany, savings bank, savings and loan association, insurance company,\nthe college construction loan insurance association, the student loan\nmarketing association, or a governmental agency of the United States;\nand (d) approval from the applicable state agencies as to the need for\nthe project has been obtained prior to joint financing.\n 31. To and shall develop, promote and ensure that, where possible,\nminority groups which traditionally have been disadvantaged, and women\nare afforded equal opportunity for contracts in connection with\ndevelopment and construction contracts for developments, facilities and\nprojects financed by the issuance of bonds, notes and other obligations\nof the agency.\n 32. To transfer funds in an amount to be agreed upon, at the request\nof the director of the division of the budget, to the state treasury for\ndeposit to the general fund as an expense of the agency. Such transfer\nshall be made in such amounts and at such times as specified in an\nagreement or agreements executed between the agency and the director of\nthe budget with copies to be provided to the chairman of the assembly\nways and means committee and the chairman of the senate finance\ncommittee.\n