N.Y. Private Housing Finance Law Section 16
Limited-profit housing companies

  • partnership relations

Notwithstanding any provisions in this article to the contrary, but subject to such regulations as may be prescribed by the commissioner or the supervising agency, as the case may be:

1.

(a) Any company may be a partner (general or limited) in a partnership (general or limited) formed for the purpose of providing such company with capital. Any company incorporated pursuant to the provisions of this article may, with the consent of the commissioner or the supervising agency as the case may be, become a partner (general or limited) in a partnership (general or limited) upon the consent of the company to the refinancing of its original mortgage loan by a mortgage loan insured by the Federal government; such a partnership shall have the same powers and duties as provided by this article as a partnership formed for the purpose of providing a company with capital.

(b)

Any partner (general or limited) of any partnership (general or limited) in which a company is a partner (general or limited) may be the owner or holder of any shares, bonds, income debentures, notes or other securities of such company.

(c)

Any company which is a partner (general or limited) in any such partnership (general or limited) may exercise all the rights and powers and shall be subject to all the duties and obligations of a company in accordance with this article.

2.

The capital structure of a company which is a partner (general or limited) in a partnership (general or limited) formed pursuant to paragraph (a) of subdivision one of section sixteen may include withdrawals from the capital of such a partnership (general or limited). The provisions of this article relating to shares and income debentures shall be deemed to include withdrawals from the capital of a partnership (general or limited) of which a company is a partner (general or limited).

3.

For the purposes of this section, the term partner shall be deemed to include a member of a limited liability company, and the term partnership shall be deemed to include a limited liability company, provided there is disclosure of the identity of the managing member, including the identity of the natural person who is responsible for the housing development. Notwithstanding any provision of this section to the contrary, any change in general partner of a partnership or managing member of a limited liability company shall be subject to the prior, written approval of the commissioner or supervising agency.

Source: Section 16 — Limited-profit housing companies; partnership relations, https://www.­nysenate.­gov/legislation/laws/PVH/16 (updated Sep. 22, 2014; accessed Oct. 26, 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:
Oct. 26, 2024

Last modified:
Sep. 22, 2014

§ 16’s source at nysenate​.gov

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