§ 654 — Powers of the corporation

New York § 654

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 12: New York City Housing Development Corporation

Text

§ 654. Powers of the corporation. Except as otherwise limited by this\narticle, the corporation 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 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;\n 4. To make and execute contracts and all other instruments necessary\nor convenient for the exercise of its powers and functions under this\narticle;\n 5. To acquire, hold and dispose of real and/or personal property for\nits corporate purposes;\n 6. To appoint officers, agents and employees, prescribe their duties\nand qualifications and fix their compensation, subject to the provisions\nof the civil service law and the rules of the civil service commission\nof the city;\n 7. Subject to the provisions of any contract with noteholders and\nbondholders, to make mortgage loans, to participate with the city or\nwith one or more organizations mentioned in section fifteen of this\nchapter in making mortgage loans and to undertake commitments to make\nany such mortgage loans to housing companies, including any subsidiary\nof the corporation, on the same terms and otherwise in accordance with\nthe provisions of article two of this chapter governing loans by a\nmunicipality;\n * 7-a. Subject to the provisions of any contract with noteholders and\nbondholders, to make mortgage loans, to participate with the city or\nwith one or more organizations set forth in section one hundred eleven-a\nof this chapter in making mortgage loans and to undertake commitments to\nmake any such mortgage loans to redevelopment companies organized under\narticle five of this chapter;\n * NB (Effective until ruling by Internal Revenue Service)\n * 7-a. Subject to the provisions of any contract with noteholders and\nbondholders, to make mortgage loans, to participate with the city or\nwith one or more organizations set forth in sections eighty-one and one\nhundred eleven-a of this chapter in making mortgage loans and to\nundertake commitments to make any such mortgage loans to\nlimited-dividend housing companies organized under article four of this\nchapter and to redevelopment companies organized under article five of\nthis chapter. Such mortgage loans may be made to limited-dividend and\nredevelopment companies for such purposes as may be approved by the\ncorporation including, but not limited to, the refinancing of the\nexisting mortgage indebtedness of such companies, to provide funds for\nthe replacement, improvement and rehabilitation of the properties owned\nby said companies, to provide funds for all costs incurred by such\ncompanies relating to the refinancing of the existing mortgage\nindebtedness including amounts required to establish escrow accounts,\nreserves and working capital as determined by the corporation and for\nsuch other purposes as are permitted by articles four and five of this\nchapter; provided, however, such purposes must be approved by the\nFederal Internal Revenue Service for application of the tax exemption\nfor housing bonds. Such mortgage loans may be made by the corporation\nwithout any requirement that all or any portion of the loan be used to\ncreate new or rehabilitated housing facilities. In furtherance of its\npowers pursuant to this subdivision and, subject to the provisions of\nany contract with noteholders and bondholders, the corporation may\nacquire and contract to acquire, by assignment or otherwise, any\nmortgage securing a loan and any related bond or note made by a\nlimited-dividend housing company or a redevelopment company and may\nmodify or satisfy such mortgage and accept or make a new mortgage or\nmortgages and execute such other instruments as the corporation deems to\nbe necessary or proper.\n * NB (Effective pending ruling by Internal Revenue Service)\n 8. Subject to the provisions of any contract with noteholders and\nbondholders, to make mortgage loans including participation and\ninvestment with the city or with one or more corporations, organizations\nor individuals of the kind mentioned in section four hundred seven of\nthis chapter in making mortgage loans and to undertake commitments to\nmake mortgage loans to owners of existing multiple dwellings, including\nany subsidiary of the corporation, on the same terms and otherwise in\naccordance with the provisions of article eight of this chapter, except\nthat such loans shall in all cases be secured by a first lien;\n 8-a. Subject to the provisions of any contract with noteholders or\nbondholders, to participate with the city or one or more private\ninvestors as defined in section eight hundred one of this chapter or\nwith the city and one or more such private investors in making loans in\naccordance with the provisions of article fifteen of this chapter.\n 9. Subject to the provisions of any contract with noteholders and\nbondholders, to sell, at public or private sale, any mortgage or other\nobligation securing a mortgage loan made by the corporation;\n 10. Subject to the provisions of any contract with noteholders and\nbondholders, in connection with the making of mortgage loans and\ncommitments therefor, to make and collect such fees and charges,\nincluding but not limited to reimbursement of all costs of financing by\nthe corporation, service charges and insurance premiums, as the\ncorporation shall determine to be reasonable;\n 11. Subject to the provisions of any contract with noteholders and\nbondholders, 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\ncorporation is a party;\n 12. To foreclose any mortgage in default or commence any action to\nprotect 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 corporation 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 corporation therein;\n 12-a. To create subsidiaries, as provided in section six hundred\nfifty-four-a of this chapter.\n 13. To borrow money and to issue negotiable notes or bonds or other\nobligations and to fund or refund the same, and to provide for the\nrights of the holders of its obligations;\n 14. To invest any funds held in reserves or sinking funds, or any\nfunds not required for immediate use or disbursement, at the discretion\nof the corporation, in obligations of the city, state or federal\ngovernment, obligations the principal and interest of which are\nguaranteed by the city, state or federal government, obligations of\nagencies of the federal government which may from time to time be\nlegally purchased by savings banks of the state as investments of funds\nbelonging to them or in their control and be approved by the\ncomptroller, obligations in which the comptroller of the state of New\nYork is authorized to invest pursuant to section ninety-eight of the\nstate finance law, obligations of the New York city municipal water\nfinance authority, participation certificates of the federal home loan\nmortgage corporation or mortgage-backed securities of the federal\nnational mortgage association.\n 15. Subject to the provisions of any contract with noteholders and\nbondholders and subject to the provisions of section six hundred\nfifty-five of this article, to purchase notes or bonds of the\ncorporation;\n 16. To procure insurance against any loss in connection with its\nproperty and other assets including mortgages and mortgage loans in such\namounts and from such insurers as it deems desirable;\n 17. To engage the services of consultants on a contract basis for\nrendering professional and technical assistance and advice; and where\nthe corporation shall join with one or more organizations mentioned in\nsection fifteen, one hundred eleven-a or four hundred seven of this\nchapter in making mortgage loans, to make provision, either in the\nmortgage or mortgages or by separate agreement, for the performance of\nsuch services as are generally performed by a banking organization or\ninsurance company which itself owns and holds a mortgage or by a trustee\nunder a trust mortgage, and to consent to the appointment of a banking\norganization to act in such capacity;\n 18. To contract for and to accept any gifts or grants or loans of\nfunds or property or fees for administering any federal rental subsidy\ncontract or financial or other aid in any form, including but not\nlimited to mortgage insurance, from the federal government or any agency\nor instrumentality thereof, or from the state or any agency or\ninstrumentality thereof, or from any other source and to comply, subject\nto the provisions of this article, with the terms and conditions\nthereof;\n 19. As security for the payment of the principal of and interest on\nany bonds so issued and any agreements made in connection therewith, to\npledge all or any part of its revenues;\n 20. Notwithstanding the provisions of this chapter or of any other\nlaw, general, special or local, whenever the corporation shall find that\nthe maximum rentals charged tenants of the dwellings in any project\nfinanced by the corporation in whole or in part shall not be sufficient,\ntogether with all other income of the mortgagor, to meet within\nreasonable limits all necessary payments to be made by the mortgagor of\nall expenses including fixed charges, sinking funds, reserves and\ndividends, to request the mortgagor to make application to vary the\nrental rate for such dwellings so as to secure sufficient income, and\nupon failure of the mortgagor to take such action within thirty days\nafter receipt of written request from the corporation to do so, to\nrequest the supervising agency to take action upon such agency's own\nmotion so to vary such rental rate, and upon failure of the supervising\nagency either upon application by the mortgagor or upon its own motion\nso to vary such rental rate within sixty days after receipt of written\nrequest from the corporation to do so, to vary such rental rate by\naction of the corporation;\n 21. Subject to the provisions of any contract with noteholders and\nbondholders, to acquire and to contract to acquire, by assignment or\notherwise, or to take as collateral security, any mortgage securing a\nloan, including any construction loan, and any note or bond evidencing\nindebtedness thereon, made by the city of New York in accordance with\nthe provisions of article two of this chapter and any contract or\narrangement, including any subsidy contract or arrangement, related to\nsuch mortgage, and the receipts to be derived from any of the foregoing,\nand to assume and fulfill and contract to assume and fulfill the\nobligations of the mortgagee or lender thereunder, and to reassign and\nto contract to reassign to the city of New York any such mortgage, note,\nbond, contract or arrangement and the receipts to be derived therefrom.\n 22. Subject to the provisions of any contract with noteholders and\nbondholders, to assign or pledge any mortgage, bond, note, contract,\nsecurity, or arrangement and the receipts to be derived from any of the\nforegoing, acquired pursuant to this section;\n 22-a. Subject to the provisions of any contract with noteholders and\nbondholders, to acquire and to contract to acquire, by assignment or\notherwise, any mortgage securing a loan, including any construction\nloan, and any note or bond evidencing indebtedness thereon, made by the\ncity of New York in accordance with the provisions of article two of\nthis chapter and any contract or arrangement, including any subsidy\ncontract or arrangement, related to such mortgage, and to modify or to\nsatisfy such mortgage and accept or make a new mortgage or mortgages and\nother instruments, including mortgages to secure residual indebtedness\nand instruments to evidence residual receipts obligations as defined in\nsection twelve of this law and to enter into amended subsidy contracts,\nand (i) to hold or to sell, assign or otherwise dispose of such mortgage\nor mortgages, including those made in substitution thereof and any\nrelated instruments, contracts and arrangements, or to issue obligations\nsecured by such mortgage or mortgages, and pay to the city of New York\nthe proceeds of such sale, assignment or other disposition of such\nmortgages and the proceeds from the issuance of such obligations, less\nlegal and other fees, costs and expenses and other amounts paid or\nincurred by the corporation, including discounts, costs incurred by the\ncorporation related to the sale of such mortgages or to a sale, if any,\nof its obligations, fees payable to other governmental units, the cost\nincurred by the corporation under an agreement with the federal\ngovernment pursuant to subdivision twenty-two-b of this section, amounts\nrequired to establish escrow accounts or reserves for the issuance of\nmortgage insurance, the cost of satisfying such minimum property\nstandards or of installing such life safety devices as may be required\nby the federal government which standards or devices are in addition to\nany requirement imposed by the city of New York as mortgagee, amounts\nloaned to the mortgagor to establish such escrow accounts or reserves or\nto satisfy such minimum property standards or to install such life\nsafety devices, closing and other costs related to obtaining mortgage\ninsurance from the federal government such other costs as the federal\ngovernment may from time to time impose, any amounts not previously\nadvanced under mortgages modified or satisfied under this subdivision as\ndetermined by the supervising agency, and an amount not to exceed twenty\nmillion dollars at any one time, which shall be held in a revolving\naccount for a period not to exceed eighteen months from the time of the\nfirst deposit therein, to pay any or all of the costs, fees and expenses\nand other amounts attributable to issuing obligations secured by such\nmortgage or mortgages, or to making and insuring mortgages pursuant to\nthis subdivision, and any balance remaining in such revolving account\nshall be paid to the city of New York no later than eighteen months\nafter the time of the first deposit therein, and (ii) to assign or\nreassign any such mortgage or mortgages, instruments and related\ncontract or arrangement to the city of New York. If the corporation\nsells any such mortgages for an amount in excess of the principal amount\nthereof at the time of such sale, or if the corporation issues\nobligations secured by any such mortgages and the yield on such\nmortgages is greater than the yield on such obligations (the yield on\nsuch mortgages and obligations having been calculated in accordance with\nsection one hundred three of the internal revenue code of the United\nStates and regulations thereunder), the corporation shall pay to the\ncity of New York such premium and any such differential, but only to the\nextent such differential is not paid to or for the benefit of the\nholders of such obligations; and such premium and differential, to the\nextent so paid to such city, shall be used and credited by the city of\nNew York in accordance with subdivision four-b of section twenty-three-a\nof this chapter as if such city had sold such mortgages or issued such\nobligations pursuant to section twenty-three-a of this chapter. The\ncorporation shall not modify or satisfy a mortgage pursuant to this\nsubdivision unless such modification or satisfaction is first approved\nby the supervising agency.\n 22-b. To contract with the federal government for the sharing of any\nclaim paid by the federal government on account of any insurance of a\nmortgage, provided that the corporation's share of any such claim shall\nnot exceed fifty percent of the insurance benefits paid by the federal\ngovernment, and further provided that the corporation's share of such\nclaims under any such contract shall not exceed five percent of the\noutstanding principal amount of all mortgage loans of the corporation\ninsured by the federal government and included within such contract.\n 23. To make loans secured by mortgages insured or coinsured by the\nfederal government to the owners of multiple dwellings in such amounts\nas may be required for the rehabilitation of such multiple dwellings or,\nif such owner acquires the multiple dwelling for the purpose of such\nrehabilitation or owns the multiple dwelling subject to an outstanding\nindebtedness, in such amounts as may be required for the cost of such\nacquisition or for the refinancing of such outstanding indebtedness, but\nin no event in such amounts as would exceed the mortgage limits imposed\nby the federal government, and to regulate or restrict such owner as to\nrents or sales, charges, capital structure, rate of return and method of\noperation and to make loans secured by mortgages insured or coinsured by\nthe federal government to the owners of projects in such amounts as may\nbe required for the acquisition, construction or improvement of such\nprojects, but in no event in such amounts as would exceed the mortgage\nlimits imposed by the federal government, or ninety percent of the\nactual cost of such acquisition, construction or improvement, whichever\nis less, and to regulate or restrict such owner as to rents or sales,\ncharges, capital structure, rate of return and method of operation. The\nowner may, with the approval of the corporation, fix maximum rentals to\nbe charged tenants of the dwellings in any multiple dwelling or project\naided by a loan pursuant to this subdivision. The corporation, upon its\nown motion, or upon application by the owner or by the federal\ngovernment, may vary such rental rate from time to time so as to secure,\ntogether with all other income of the multiple dwelling, sufficient\nincome for it to meet within reasonable limits all necessary payments to\nbe made by the owner of all expenses; provided that no variation in a\nrental rate shall be effective unless approved by the federal\ngovernment. The corporation or the department of housing preservation\nand development shall notify occupants of the multiple dwelling, if\nthere be any, of the contemplated rehabilitation and shall advise them\nof the expected rental increase to result therefrom, and a\nrepresentative of the corporation or the department of housing\npreservation and development shall meet or offer to meet at least once\nwith the occupants. The corporation shall promulgate such rules and\nregulations with respect to multiple dwellings and projects financed\npursuant to this subdivision and the owners of such multiple dwellings\nand projects as may be necessary to carry out the provisions of this\nsubdivision, provided that such rules and regulations shall contain\nprovisions as to income limitations relating to admission into occupancy\nof the dwelling units of such projects to the same effect as are\ncontained in section thirty-one of this chapter and for the dwelling\nunits of such other multiple dwellings to the same effect as are\ncontained in subdivision three of section four hundred one of this\nchapter. As used in this subdivision, the term "multiple dwelling" shall\ninclude an existing building or structure which is to be converted into\na class A multiple dwelling.\n 23-a. Subject to the provisions of any contract with noteholders and\nbondholders, (i) to make and contract for the making of mortgage loans\nfor the construction or rehabilitation of projects which the New York\ncity housing authority has agreed to purchase on a turnkey basis in\naccordance with a federally assisted program for the production of\npublic housing as authorized by the United States housing act of\nnineteen hundred thirty-seven as amended to the date of enactment of\nthis subdivision of this section, upon the completion of such\nconstruction or rehabilitation, and (ii) 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 23-b. In order to increase the availability of safe and sanitary\ndwelling accommodations within the financial reach of families and\npersons of low income, to acquire and to contract to acquire, by\nassignment or otherwise, or to take as collateral security, any\nfederally guaranteed security evidencing indebtedness on a mortgage\nsecuring a loan, including any construction loan, and the receipts to be\nderived therefrom and to assign or reassign and to contract to assign or\nreassign any such security and the receipts to be derived therefrom,\nsubject in each case, to the provisions of any contract with noteholders\nand bondholders;\n * 23-c. (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 accommodations\ncontaining five or more dwelling units (i) for the purpose of providing\nhousing accommodations for occupancy by persons and families for whom\nthe ordinary operations of private enterprise cannot provide an adequate\nsupply of safe, sanitary and affordable housing accommodations or (ii)\nfor units located in an area designated as blighted pursuant to article\nfifteen or sixteen of the general municipal law, or as certified by the\nNew York city department of housing preservation and development as\nbeing located in an area which is blighted, and (b) to make and to\ncontract for the making of loans to or to purchase loans from lending\ninstitutions for the purpose of financing mortgage loans for such\nacquisition, construction or rehabilitation, and (c) to establish such\nregulatory requirements with regard to such housing accommodations as\nmay be deemed appropriate by the corporation to achieve the objectives\nof this article, and articles fifteen and sixteen of the general\nmunicipal law notwithstanding any other provisions of this chapter to\nthe contrary. Any notes and bonds issued pursuant to this subdivision\nshall not be secured by any capital reserve fund established pursuant to\nsection six hundred fifty-six of this article.\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 stablization law of nineteen hundred sixty-nine, or the emergency\ntenant protection act of nineteen seventy-four, the owner of a project\notherwise subject to any such law or act, with the approval of the\nagency, shall establish the initial rent for each dwelling unit within\nthe project. The corporation shall notify occupants of the project, 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 corporation have been issued to fund the loan\nmade or purchased by the corporation and such obligations have received\nan investment grade rating from a recognized rating agency; (b) the loan\nmade or purchased by the corporation is fully secured as to principal\nand interest by insurance or a commitment to insure by the state of New\nYork mortgage agency or New York city residential mortgage insurance\ncorporation 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 corporation are purchased by a bank, national\nbank, trust company, savings bank, savings and loan association,\ninsurance company, governmental agency of the United States, which for\npurposes of this subdivision, include the federal home loan mortgage\ncorporation, the federal national mortgage association, the governmental\nnational mortgage association, and any successor of the foregoing, or\nany wholly-owned subsidiary or combination thereof.\n * NB Repealed July 23, 2027\n 23-d. 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 corporation.\n 23-e. Subject to the provisions of any contract with noteholders and\nbondholders, to refinance or acquire mortgage loans made for multiple\ndwellings by private lenders pursuant to article eight-A or fifteen of\nthis chapter; provided that the corporation shall not be permitted\npursuant to this subdivision to acquire a mortgage loan, unless such\nacquisition is in connection with a refinancing of the property for\nwhich such mortgage loan was made.\n 23-f. To service mortgage loans made by private or governmental\nlenders for multiple dwellings, provided that each such mortgage loan\nshall have been made either (i) pursuant to this chapter, or (ii) in\nconjunction with another mortgage loan made by the city of New York.\n 23-g. Subject to the provisions of any contract with noteholders and\nbondholders, to acquire mortgage loans made by the city of New York\npursuant to article eight-A of this chapter or section ninety-nine-h or\narticle sixteen of the general municipal law or to acquire a\nparticipation interest in such mortgage loans.\n 23-h. Subject to the provisions of any contract with noteholders and\nbondholders and relating to the purpose of providing housing\naccommodations for occupancy by persons and families for whom the\nordinary operations of private enterprise cannot provide an adequate\nsupply of safe, sanitary and affordable housing accommodations or for\nunits located in an area designated as blighted pursuant to article\nfifteen or sixteen of the general municipal law, or as certified by the\nNew York city department of housing preservation and development as\nbeing located in an area that is blighted, the corporation is hereby\nauthorized to carry out, by loans or guaranties, the following purposes:\n (i) to preserve, repair, renovate, upgrade, improve, modernize,\nrehabilitate or otherwise prolong the useful life of dwelling\naccommodations;\n (ii) to construct dwelling accommodations and undertake site\npreparation related thereto;\n (iii) to restore abandoned, vacant or occupied city or privately-owned\ndwelling accommodations to habitable condition;\n (iv) to assist in the acquisition of buildings that contain or are\nexpected to contain dwelling accommodations; and\n (v) to facilitate the disposition of city-owned buildings that contain\nor are expected to contain dwelling accommodations.\n 24. To contract with any of its subsidiary corporations to render such\nservices as such subsidiary corporation may request, including, but not\nlimited to, the use of the premises, personnel and personal property of\nthe corporation, and to provide for reimbursement to the corporation\nfrom such subsidiary corporation for any expenses necessarily incurred\nby the corporation in carrying out the terms of any such contract.\n 25. 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