§ 82 — Limitations

§ 82. Limitations. No housing company shall:\n 1. Acquire any real property or interest therein unless it shall first\nhave obtained approval of the project from the commissioner, and a\ncertificate that such acquisition is necessary or convenient for the\npublic purpose defined in this article, and unless any deed, lease or\nother instrument by which such real property or interest therein is\nacquired contains a statement that the conveyance is to a housing\ncompany organized pursuant to article four of the private housing\nfinance law.\n 2. Sell, exchange, transfer or assign any real property except (a) to\na municipality wherein a project is to be located, for public purposes\nonly and upon such terms and conditions, with or without compensation,\nas the commissioner may approve, or with the written consent of the\ncommissioner to another housing company formed under this chapter, and\n(b) for a price not in excess of the cost of the said property less any\namounts paid in amortization of the mortgage indebtedness and the\nretirement of capital, plus so much of the distribution on capital of\nthe said housing company as shall have been unpaid, and accrued interest\non the mortgage indebtedness and income debenture certificates. Real\nproperty surplus to the needs of the housing company may be sold,\nexchanged, transferred or assigned to any person, partnership, trust,\nfirm or corporation upon such terms and conditions as the commissioner\nmay approve.\n 3. Encumber or lease all or any part of its real property to any other\nperson, partnership, trust, firm, or public or private corporation,\nwithout the written consent of the commissioner, provided, however, that\nleases conforming to the regulations and rules of the commissioner and\nfor actual occupancy by the lessees may be made without the consent of\nthe commissioner. Any conveyance, encumbrance, lease or sub-lease made\nin violation of the provisions of this section and any transfer or\nassignment thereof shall be void.\n 4. Pay interest returns on its mortgage indebtedness at a higher rate\nthan six per centum per annum, or at the rates of interest of mortgages\nor mortgage bonds insured by the federal housing administration or any\nother instrumentality of the federal government applicable at the time\nthe housing company incurs the mortgage indebtedness, or at such higher\nrates as may be approved by the commissioner, or pay interest upon its\nincome debenture certificates at a rate higher than six per centum per\nannum.\n 5. Issue its shares, in the case of a housing company which is a\ncorporation, credit sums to partners on capital account, in the case of\na housing company which is a partnership, subject amounts to the trust,\nin the case of a housing company which is a trust, and no housing\ncompany shall issue debentures and bonds covering any project undertaken\nby it in an amount greater in the aggregate than the total actual final\ncost of such project, including the lands, improvements, charges for\nfinancing and supervision approved by the commissioner and interest and\nother carrying charges during construction, and an allowance for working\ncapital to be approved by the commissioner but not exceeding three per\ncentum of the estimated cost or of the total actual final cost of the\nproject if that shall be greater than the estimated cost.\n 6. Mortgage any real property without first having obtained the\nconsent of the commissioner.\n 7. Issue any securities or evidences of indebtedness without first\nhaving obtained the approval of the commissioner.\n 8. Use any building erected or acquired by it for other than housing\npurposes, except that when permitted by law the story of the building\nabove the cellar or basement and the space below such story may be used\nfor stores, co-operative or community purposes, and when permitted by\nlaw the roof may be used for co-operative or community purposes.\n 9. Charge or accept any rental for housing accommodations in any\nproject constructed, acquired, operated or managed by it in excess of\nthe prices approved by the commissioner.\n 10. Enter into contracts for the payment of salaries to officers,\nemployees, directors, partners, trustees or beneficiaries except subject\nto the approval of the commissioner and under such regulations as the\ncommissioner may from time to time prescribe.\n 11. Enter into contracts for the construction or for the substantial\nrepair, improvement or operation of projects except subject to the\napproval of the commissioner and under such regulations as the\ncommissioner may from time to time prescribe.\n 12. Voluntarily dissolve, or in the case of a trust, terminate,\nwithout first having obtained the consent of the commissioner.\n 13. Make any guaranty without the approval of the commissioner.\n 14. Without the prior approval of the commissioner as to the terms and\nconditions thereof, sell, lease, or otherwise convey all or any part of\na project to an authority.\n The commissioner may declare that any of the limitations set forth in\nthis section shall be inapplicable, in whole or in part, to mutual\nhousing companies after the period of municipal tax exemption granted to\nsuch mutual housing company projects pursuant to this article has\nexpired.\n