§ 83 — Execution of housing company projects

§ 83. Execution of housing company projects. No building or\nconstruction shall be undertaken by any housing company without the\napproval of the commissioner. Such approval shall be conditioned upon:\n 1. The submission of a plan in such form and with such assurances as\nthe commissioner may prescribe, to raise at least twenty per centum of\nthe actual cost of the lands and improvements through investment in the\ncapital of such housing company together with the sale of income\ndebentures, where provided for by such plan; and to raise the balance by\nmortgage bonds which shall not exceed eighty per centum of the actual\ncost of the said project. The plan may provide for the raising of\nworking capital in an amount to be approved by the commissioner not to\nexceed three per centum of the actual cost through investment in the\ncapital and sale of income debentures of the housing company. Wherever\nreference is made in this article to cost of projects, or of buildings\nand improvements in projects, such cost shall include charges for\nfinancing and supervision approved by the commissioner, including a\nreasonable proportion to be fixed by the commissioner, of the expenses\nof the commissioner, applicable to the examination and supervision of\nthe project, and carrying charges during construction required in the\nproject, including interest on borrowed, and where approved by the\ncommissioner, on invested capital. Notwithstanding the provisions of any\nother general, special or local laws, all moneys payable by the project\nto reimburse the commissioner for his expenses applicable to the\nexamination and supervision of the project during construction as herein\nprovided shall be paid to the executive department.\n 2. The acceptance of a designee of the commissioner as a member of the\nboard of directors of said housing company. In the case of all mutual\ncompanies an additional director shall be designated by the commissioner\nat the creation of the company and shall serve from the time of such\ndesignation at least until a board of directors has been elected by the\ntenants entitled to occupancy in the project by reason of ownership of\nshares in such company. Such directors appointed by the commissioner\nneed not be stockholders or meet other qualifications which may be\nprescribed by the certificate of incorporation or the by-laws. In the\nabsence of fraud or bad faith the director appointed by the commissioner\nshall not be personally liable for the debts, obligations or liabilities\nof the corporation.\n 3. The approval by the commissioner of the plans, specifications and\nestimated costs of the proposed housing facilities in respect to the\nconformity thereof to reasonable standards of health, sanitation, safety\nand provision for light and air.\n 4. When required by the commissioner, and except in the case of a\nhousing company which is a subsidiary of the New York state urban\ndevelopment corporation, created by the New York state urban development\ncorporation act, the designation by the commissioner with respect to\neach project approved by him of a trustee, which shall be a banking\ncorporation authorized to perform trust functions, and such trustee\nshall receive moneys received by the housing company as its capital, or\nas proceeds of its mortgage bonds, notes or income debentures and make\npayment therefrom for the acquisition of land, the construction of\nimprovements and other items entering into cost of land and improvements\nupon presentation of draft, check or order signed by a proper officer or\ndesignee of the housing company and countersigned by the said\ncommissioner or a person designated by him for said purpose. Any funds\nremaining in the custody of said trustee after the completion of the\nsaid project and payment or arrangement in a manner satisfactory to the\ncommissioner for payment in full therefor shall be paid to the housing\ncompany.\n 5. No such project shall be approved in contravention of any planning,\nzoning, sanitary and building laws, ordinances and regulations\napplicable to the municipality in which the project is situated.\n 6. Notwithstanding the provisions of subdivision five hereof, no state\nurban development corporation project shall be approved unless it\ncomplies with the requirements of local laws, ordinances, codes,\ncharters or regulations applicable to the construction, reconstruction,\nrehabilitation, alteration or improvement of such project, except where\nthe state urban development corporation, in its discretion, finds such\ncompliance not feasible or practicable, in which event no such project\nshall be approved unless it complies with the requirements of the state\nbuilding construction code, formulated by the state building code\ncouncil pursuant to article eighteen of the executive law, applicable to\nsuch construction, reconstruction, rehabilitation, alteration or\nimprovement. No county, city, town or village shall have power to modify\nor change the drawings, plans or specifications for the construction,\nreconstruction, rehabilitation, or improvement of any such project or\nthe construction, plumbing, heating, lighting or other mechanical branch\nof work necessary to complete the work in question, nor to require that\nany person, firm or corporation employed on any such work shall perform\nany such work in any other or different manner than that provided by\nsuch plans and specifications, nor to require that any such person, firm\nor corporation obtain any other or additional authority, approval,\npermit or certificate, from such county, city, town or village as a\ncondition of doing such work, nor shall any condition whatever be\nimposed by any such county, city, town or village in relation to the\nwork being done, and the doing of any such work by any person, firm or\ncorporation in accordance with the terms of such drawings, plans,\nspecifications or contracts shall not subject said person, firm or\ncorporation to any liability or penalty, civil or criminal, other than\nas may be stated in such contracts or incidental to the proper\nenforcement thereof; nor shall any county, city, town or village have\npower to require that any subsidiary of the New York state urban\ndevelopment corporation, or any lessee therefrom or successor in\ninterest thereto, obtain any other or additional authority, approval,\npermit, certificate or certificate of occupancy from such county, city,\ntown or village as a condition of owning, using, maintaining, operating\nor occupying any project acquired, constructed, reconstructed,\nrehabilitated or improved by any such subsidiary of the New York state\nurban development corporation.\n