N.Y. Private Housing Finance Law Section 12
Definitions


As used in this article, the following terms shall mean and include:

1.

“Areas.” A section of a municipality in which there is to be located a project approved by the municipality as provided in paragraph (a) of subdivision one and in subdivision five of section twenty-six of article 2 (Limited-profit Housing Companies)article two of this chapter.

2.

“Company”. A limited-profit housing company duly incorporated pursuant to the provisions of this article, or a company incorporated pursuant to the not-for-profit corporation law and this article for the purpose of providing housing and auxiliary facilities for staff members, employees or students of a college, university, hospital or child care institution and their immediate families or for aged or handicapped persons of low income, pursuant to this article, or a municipally-aided non-profit company as hereinafter defined, or a low income non-profit housing company as hereinafter defined. 2-a. “Home owners purchase note.” A promissory note accepted by a mutual company as consideration for the issuance of stock entitling a person or family to occupancy of an apartment in a project, payable over or within a period of ten years. 2-b. “Mutual company.” A company whose dwelling facilities, to the extent of at least eighty per centum, are occupied by persons or families who are entitled to such occupancy by reason of ownership of shares in such company; provided however that a company that was not a mutual company prior to July first, nineteen hundred ninety-five may become a mutual company if its dwelling facilities, to the extent of at least fifty per centum, are occupied by persons or families who are entitled to such occupancy by reason of ownership of shares in such company. The commissioner or supervising agency shall provide procedures for such conversion of a company to a mutual company on or after July first, nineteen hundred ninety-five; such procedures shall require the submission of a plan for attaining eighty per centum owner occupancy. 2-c. “Urban Rental Company.” A company whose project is located in or adjacent to a municipality and whose housing accommodations are occupied by persons or families who do not own the shares in such company.

3.

“Occupancy date.” The date defined in the contract between a company and a municipality or the state, as the case may be, as the date upon which the project is to be deemed ready for occupancy, or if such term is not defined in such contract, the date of issuance of the temporary certificate of occupancy.

4.

“Plan.” A plan or undertaking of an area or areas for providing low rent housing for persons of low income, and for other facilities incidental and appurtenant thereto.

5.

“Project.” A specific work or improvement, including lands, buildings and improvements acquired, owned, constructed, rehabilitated, improved, managed or operated by a company providing dwelling accommodations, non-housekeeping accommodations, aged care accommodations or accommodations for handicapped persons pursuant to this article, or undertaken, planned, developed, constructed or owned pursuant to § 36-A (Additional powers of municipalities)section thirty-six-a of this article, and such business, commercial, cultural, recreational, communal, dining, medical and nursing treatment, day care or residential child care facilities or any combination thereof, or other facilities as may be deemed by the commissioner with respect to a project aided by a state loan or New York state housing finance agency loan or by the supervising agency with respect to a municipally-aided project or a project undertaken, planned, developed, constructed or owned pursuant to § 36-A (Additional powers of municipalities)section thirty-six-a of this article, to be incidental and appurtenant thereto. In the case of a state loan or New York state housing finance agency loan, a project shall effectuate all or part of a plan, provided, however, that such dwelling accommodations, non-housekeeping accommodations, aged care accommodations or accommodations for handicapped persons may be provided in any section of the municipality, whether or not such section has insanitary or substandard housing conditions. 5-a. “State urban development corporation project”. A project acquired, owned, constructed, managed or operated by a limited-profit housing company which is a subsidiary of the New York state urban development corporation, as the term “subsidiary” is defined in the New York state urban development corporation act. 5-b. “Battery Park city project.” A project acquired, owned, constructed, managed or operated by a company organized pursuant to this article and located within the Battery Park project area, as defined in the Battery Park city authority act.

6.

“Project cost”. The sum total of all costs incurred by a company and, as approved by the commissioner in the case of a state-aided project or a project aided by the New York state housing finance agency or by the supervising agency in the case of a municipally-aided project as reasonable and necessary for carrying out all works and undertakings for the development of a project. These shall include but are not necessarily limited to the carrying charges during construction and before physical completion or rehabilitation, working capital not exceeding three per cent of the estimated total cost or three per cent of the actual total final cost, whichever is larger, the cost of all necessary studies, surveys, plans and specifications, architectural, engineering, or other special services, the cost of acquisition of land and any buildings thereon, site preparation and development, construction, reconstruction and equipment; the reasonable cost of financing incurred by the investor in the course of development of the project, up to and including the occupancy date; the fees imposed by the commissioner or by the supervising agency or by both; other fees charged in the course of the development of the project up to and including the occupancy date, pursuant to the provisions of this article; the necessary expenses in connection with the initial occupancy of the project and where applicable, the cost of such training services as will assist the residents of the project to acquire ownership and to operate the project in an efficient and harmonious manner; and the cost of such other items, including tenant relocation, as the commissioner, in the case of a state-aided project or a project aided by the New York state housing finance agency or the supervising agency, in the case of a municipally-aided project shall determine to be reasonable and necessary for the development of the project, less any and all net rents and other net revenues received from the operation of the real or personal property on the project site, or any part thereof, by the company on or after the date on which the contract between the company and the state or the New York state housing finance agency or municipality was entered into and prior to the occupancy date. In the case of any project purchased or leased by a company from a municipality pursuant to the provisions of § 36-A (Additional powers of municipalities)section thirty-six-a of this article, project cost shall include the value of the lease or the purchase price paid or to be paid by such company to such municipality.

7.

“Local and municipal taxes”. Taxes levied by a county, city, village, town, school and special district but shall not include assessments for local improvements.

8.

“Child Care Institution”--A private, non-profit, resident agency, association, corporation, institution or other organization, which is incorporated or organized under the laws of this state for the care and treatment of children, which actually has its place of business or plant in this state and which submits and consents to the approval, visitation, inspection and supervision of the Department of Social Welfare, or a similar administrative department of the State of New York as to any and all acts in relation to the welfare of children performed or to be performed thereby.

9.

“Housing”. As used in this article the term includes:

(a)

“Dwellings”. “Dwelling accommodations”. A room or rooms, with or without cooking facilities, arranged for occupancy as a self-contained unit.

(b)

“Non-housekeeping accommodations”. A room or rooms, without cooking facilities, and with or without board designed for the occupancy of staff members, employees or students of a college, university or hospital.

(c)

“Aged care accommodations”. Non-housekeeping accommodations for aged persons with board and aged care service as may be provided as an incident to occupancy, provided however, that no such service shall be of such a nature, kind or quality as to require licensing by the state department of health under article twenty-eight of the public health law.

(d)

“Accommodations for handicapped persons.” Dwelling accommodations designed for the occupancy of handicapped persons or non-housekeeping accommodations designed for the occupancy of handicapped persons with board and such service as may be provided as an incident to occupancy, provided however, that no such service shall be of such a nature, kind or quality as to make the facility subject to the jurisdiction of any other agency of the state.

10.

“Persons of low income” and “families of low income”. Persons or families who are in the low income groups and who cannot afford to pay enough to cause private enterprise in their municipality to build a sufficient supply of adequate, safe and sanitary dwellings, non-housekeeping accommodations or aged care accommodations.

11.

“Preliminary Costs”. Project costs approved by the supervising agency as appropriate expenditures which may be incurred prior to commitment and initial advance of the proceeds of a mortgage loan under this article, including but not limited to:

(a)

payments for options to purchase properties on the proposed housing project site, deposits on contracts of purchase, or with prior approval of the supervising agency, payments for the purchase of such properties;

(b)

legal and organizational expenses, including payment of attorneys’ fees, project manager and clerical staff salaries, office rent and other incidental expenses;

(c)

payment of fees for preliminary feasibility studies and advances for planning, engineering and architectural work;

(d)

expenses for tenant surveys and market analyses;

(e)

necessary application and other fees; and

(f)

such other expenses incurred by the limited-profit housing company as the supervising agency may deem appropriate to effectuate the purposes of this article.

12.

“Municipally-aided non-profit company.” A non-profit housing company duly incorporated pursuant to the not-for-profit corporation law and this article, which is aided by a municipal mortgage loan, a loan by the New York city housing development corporation or tax exemption or both and is not aided by any state mortgage loan or any mortgage loan by the New York state housing finance agency or a mortgage loan insured by the federal government made for the purpose of refinancing a mortgage loan other than a municipal mortgage loan or a mortgage loan made by the New York city housing development corporation.

13.

“Municipally-aided mutual company.” A mutual company which is aided by a municipal mortgage loan, a loan by the New York city housing development corporation or tax exemption or both and is not aided by any state mortgage loan or any mortgage loan by the New York state housing finance agency or a mortgage loan insured by the federal government made for the purpose of refinancing a mortgage loan other than a municipal mortgage loan or a mortgage loan made by the New York city housing development corporation.

14.

“Low income non-profit housing company.” A non-profit housing company duly incorporated pursuant to the not-for-profit corporation law and this article, whose principal purpose is to provide housing for persons of low income and families of low income and which is aided by a state mortgage loan or mortgage loan by the New York state housing finance agency or a municipal mortgage loan or municipal tax exemption, or both, or a mortgage loan insured by the federal government.

15.

“Residual indebtedness.” Where a mortgage loan is refinanced pursuant to section twenty-three-a or subdivision twenty-two-a of section six hundred fifty-four of this chapter, residual indebtedness shall be the indebtedness of a company due on the original mortgage loan, including all unpaid principal and all interest accrued thereon, less an amount equal to the principal amount, when made, of the mortgage insured by the federal government in connection with the refinancing. Such indebtedness shall be secured by a mortgage which may be subordinate to the lien of any mortgage insured by the federal government and may contain such terms and conditions not inconsistent with this article as may be approved by the supervising agency and as the supervising agency may deem necessary or desirable to secure the repayment of such residual indebtedness. Residual indebtedness shall not be restricted by the provisions of this article relating to project cost.

16.

“Residual receipts obligations”. Where a mortgage loan is refinanced pursuant to section twenty-three-a or subdivision twenty-two-a of section six hundred fifty-four of this chapter, residual receipts obligations shall mean the amount of any additional loan to a company, and any amounts paid other than by the company, to establish escrow accounts or reserves or to satisfy minimum property standards or to install life safety devices for the issuance of mortgage insurance by the federal government in connection with the refinancing. With the approval of the supervising agency and the consent of the company, residual receipts obligations may be evidenced by non-interest bearing residual receipts notes. Residual receipts obligations shall be payable only after the payment in full of all residual indebtedness. Residual receipts obligations shall not be restricted by the provisions of this article relating to project cost and shall not include any amounts deposited under an agreement with the federal government for the sharing of claims paid by the federal government on account of insurance of mortgages.

Source: Section 12 — Definitions, https://www.­nysenate.­gov/legislation/laws/PVH/12 (updated Sep. 22, 2014; accessed Jul. 13, 2024).

10
Short title
11
Policy and purposes of article
11‑A
Additional policy and purposes of article
12
Definitions
13
Limited-profit housing companies
13‑A
The applicability of not-for-profit corporation law
13‑B
Verification of papers filed with supervising agency
13‑C
Voting, election and referendum procedures
14
Consent of commissioner to incorporation
15
Participation by certain corporations and individuals
16
Limited-profit housing companies
17
Powers
18
Designation of and service of process on secretary of state and registered agent
19
Consideration for issuance of stock, bonds or income debentures
20
Mortgages, mortgage bonds and notes
21
Capital structure
22
State loans
22‑A
Redevelopment loans
22‑B
Loans for state-aided limited-profit housing companies
23
Municipal loans and municipally aided projects
23‑A
Mortgage modifications, evidence of pre-existing indebtedness
23‑B
Participation in loan or investment
23‑C
Mortgage modifications
24
Income debentures
25
Working capital
26
Conditions and security for loans
26‑A
Findings for municipally-aided projects
26‑B
Special provisions with respect to state urban development corporation projects
26‑C
Special provisions with respect to Battery Park city projects
27
Limitations
28
Payments from earnings
29
Acquisition of property
30
Transfer of real property
31
Rentals and selection of tenants
31‑A
Resale price of shares
31‑B
Assignment or pledge of tenant cooperator’s shares
31‑C
Tenant-cooperators
32
Supervision and regulation
32‑A
Additional supervision and regulation
32‑B
Annual reports
33
Tax exemptions
34
Foreclosure and judgments
35
Voluntary dissolution
35‑A
Requirements regarding dissolution
36
Sale of project prior to termination of tax exemption
36‑A
Additional powers of municipalities
37
Separability clause

Accessed:
Jul. 13, 2024

Last modified:
Sep. 22, 2014

§ 12’s source at nysenate​.gov

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