§ 576-e. Municipal housing assistance fund.
1.A municipality may\ncreate and establish a fund to be known as the "municipal housing\nassistance fund". Such a fund shall be created and established in the\nsupervising agency.\n 2. There may be paid into such municipal housing assistance fund (a)\nany moneys appropriated and made available by the municipality for the\npurposes of such fund, (b) notwithstanding the provisions of the local\nfinance law or any other provisions of law, any moneys received in\nrepayment of loans from such fund, and (c) any other moneys which may be\navailable for the purpose of such fund from any other source or sources.\n 3. The purpose of such fund shall be to make loans to housing\ndevelopment fund companies which have agreed to acquire residential\nproper
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§ 576-e. Municipal housing assistance fund. 1. A municipality may\ncreate and establish a fund to be known as the "municipal housing\nassistance fund". Such a fund shall be created and established in the\nsupervising agency.\n 2. There may be paid into such municipal housing assistance fund (a)\nany moneys appropriated and made available by the municipality for the\npurposes of such fund, (b) notwithstanding the provisions of the local\nfinance law or any other provisions of law, any moneys received in\nrepayment of loans from such fund, and (c) any other moneys which may be\navailable for the purpose of such fund from any other source or sources.\n 3. The purpose of such fund shall be to make loans to housing\ndevelopment fund companies which have agreed to acquire residential\nproperties by deed from the commissioner of finance of a municipality\nand to operate and manage such properties in accordance with a\nregulatory agreement with the municipality until the properties are\ntransferred to a new owner approved by the municipality.\n 4. The supervising agency may make loans from the fund to enable such\nhousing development fund companies to pay development costs and any\nother expenses incurred by the housing development fund company and\napproved by the supervising agency.\n 5. Any housing development fund company which receives a loan pursuant\nto this section shall execute a note and regulatory agreement. The note\nmay provide that it shall be reduced to zero over a period of continued\ncompliance with either the regulatory agreement required pursuant to\nthis section or such other regulatory agreement as the supervising\nagency shall require. The loan shall be reduced to zero only if prior to\nor simultaneously with delivery of such note, the supervising agency has\nmade a written determination that such reduction would be necessary to\nensure the continued affordability or economic viability of the project.\nSuch written determination shall document the basis upon which the loan\nwas determined eligible for evaporation.\n 6. A regulatory agreement pursuant to this section may terminate upon\nsuch terms and conditions as provided by the supervising agency.\n 7. A housing development fund company which receives a loan pursuant\nto this section shall provide in its certificate of incorporation that\nthe supervising agency shall have the power if in its discretion it\ndetermines that the company has defaulted in its obligations to the\nmunicipality to appoint to the board of such corporation a number of new\ndirectors which number shall be sufficient to constitute a majority of\nthe board, notwithstanding any other provisions of such certificate or\nof any other provision of law.\n