§ 575 — Advances; conditions; repayment

New York § 575

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 11: Housing Development Fund Companies

Text

§ 575. Advances; conditions; repayment. 1. The commissioner of housing\nand community renewal is hereby authorized to use the moneys held in the\nhousing development fund to make non-interest bearing advances to\nhousing development fund companies, and housing corporations in\naccordance with the provisions of this article. Such moneys shall be\npaid out of such fund, after audit by and upon the warrant of the\ncomptroller, on vouchers approved by the commissioner.\n 1-a. The supervising agency is hereby authorized to use the moneys\nheld in the municipal housing development fund or other funds\nappropriated by the municipality to make non-interest bearing advances\nto housing development fund companies in accordance with the provisions\nof this article and the applicable law of the municipality.\n 2. No such advances shall be made with respect to a housing project\nunless the commissioner or the supervising agency, as the case may be,\n(a) finds (1) that the housing development fund company, or housing\ncorporation proposes to finance the project in whole or in part by a\nfederally-aided, state-aided or municipally-aided mortgage or (2) that\nthe project, if otherwise financed, will provide housing for persons or\nfamilies of low income, as defined in this chapter, and is otherwise\nconsistent with the purposes of this article; (b) finds that the project\nsite is suitable, there is a need for this housing type proposed in the\narea to be served and the project is feasible; and (c) reasonably\nanticipates that financing will be obtained and makes a finding to that\neffect.\n 3. No such advances may be made to a housing corporation unless it\nenters into an agreement with the commissioner to be regulated with\nrespect to rents, profits, dividends and disposition of its property or\nfranchises. No such advances may be made to a housing development fund\ncompany unless it enters into an agreement in accordance with the\nprovisions of section five hundred seventy-six of this article.\n 4. The proceeds of such advance may be used only to defray the\ndevelopment costs of such project.\n 5. Each such advance shall either (i) be consolidated with the lien of\na municipally-aided mortgage, or (ii) be repaid in full by the housing\ndevelopment fund company, or housing corporation to the division of\nhousing and community renewal or to the supervising agency as directed\nin paragraph (b) of subdivision two of section five hundred\nseventy-four-a of this article, as the case may be. Such repayment shall\nbe made concurrent with receipt by the housing development fund company\nor its successor in interest, or housing corporation of the proceeds of\nits mortgage or construction loan, unless the commissioner or the\nsupervising agency, as the case may be, shall extend the period for the\nrepayment of such advances. In no event shall the time of repayment be\nextended later than the date of final advance of funds pursuant to such\nmortgage financing.\n 6. If the commissioner or the supervising agency, as the case may be,\nin his or its discretion shall, at any time, determine that permanent\nfinancing for the housing project may not be obtained, then and in that\nevent all advances made to the housing development fund company, or\nhousing corporation pursuant to this article shall become due and\npayable upon the demand of the commissioner or the supervising agency,\nas the case may be.\n