N.Y. Private Housing Finance Law Section 17
Powers


1.

Subject to the limitations of this article, a company heretofore or hereafter organized under this chapter shall have the powers and be subject to the limitations contained in the business corporation law or the not-for-profit corporation law, as the case may be, and shall have the following additional specific powers:

(a)

To make and execute contracts and other instruments necessary or convenient in the exercise of its powers;

(b)

To acquire or contract to acquire from any person, firm, corporation, municipality, federal or state agency, by grant, purchase, condemnation or otherwise, leaseholds, real, personal or mixed property or any interest therein, and to sell, assign, exchange, transfer, mortgage or encumber the same;

(c)

To own, hold, clear and improve, leasehold, real, personal or mixed property or any interest therein;

(d)

To construct, reconstruct, rehabilitate, improve, alter or repair or provide for the construction, reconstruction, improvement, alteration or repair of any project;

(e)

To lease or rent any of the housing or other accommodations or any of the lands, buildings, structures or facilities embraced in any project and establish and revise the rents or charges therefor; or to purchase or lease a project or a part thereof from an authority, pursuant to the provisions of section fifty-eight or article twelve-b of this chapter.

(f)

To arrange or contract with a municipality for the planning, replanning, opening, grading or closing of streets, roads, roadways, alleys or other places or for the furnishing of facilities or for the acquisition by a municipality of property or property rights or for the furnishing of property or services in connection with a project;

(g)

To insure or provide for the insurance of its property or operations as required by law and also against such other risks as it may deem advisable;

(h)

To limit by contract the exercise of any of its powers;

(i)

To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement in property or securities in which savings banks may legally invest funds subject to their control;

(j)

To sue and be sued;

(k)

To have a seal and alter the same at pleasure;

(l)

To make and from time to time amend and repeal by-laws, rules and regulations not inconsistent with the provisions of this article;

(m)

To sell, lease, or otherwise convey all or any part of a project to an authority upon such terms and conditions as shall have the prior approval of the commissioner or the supervising agency, as the case may be;

(n)

A non-profit 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 any college, university, hospital, child care institution and their immediate families; for aged or handicapped persons of low income or for any one of the above purposes, may, with the prior written consent of the commissioner or the supervising agency, as the case may be, lease its project or any part thereof to any colleges, universities, hospitals, child care institutions or not-for-profit corporations. A lessee of a project may sublease all or any part of the project to institutions and not-for-profit corporations which would be an eligible sponsor pursuant to the provisions of this chapter and to staff members, employees, and students of any college, university, hospital, child care institution, and to aged and handicapped persons of low income. Any property so leased or subleased shall remain subject to the provisions of this article and to the rules and regulations of the commissioner, or supervising agency, as the case may be. A lease or sublease of the entire project may provide for the assumption by the lessee or sublessee of the management and control of the project, and all of the obligations thereof, as well as the right to collect all revenues accruing thereto. In any event, the lessee shall pay rental in an amount at least equal to the interest and amortization due upon the mortgage of the property so leased.

(o)

To lease to any authority, or to a municipality in connection with any federally-aided program to provide dwelling accommodations for persons of low income, one or more dwelling units in a project upon such terms and conditions as shall have the prior written approval of the commissioner or the supervising agency, as the case may be.

(p)

To lease, with or without an option to purchase, all or any part of a project to any person, firm, partnership, trust or corporation, subject to the prior written consent of the commissioner or the supervising agency, as the case may be. Any property so leased shall remain subject to the provisions of this article and to the rules and regulations of the commissioner or the supervising agency, as the case may be. Such lease may provide for the assumption by the lessee of the management and control of the project, as well as the right of the lessee to collect all revenues accruing thereto. To do all other things necessary or convenient to carry out its powers.

2.

A company shall file with the commissioner or the supervising agency, as the case may be, a copy of any by-laws, rules, regulations and amendments thereto adopted by it from time to time, which shall become effective upon approval by the commissioner or by the supervising agency; provided, however, that if the commissioner or the supervising agency shall fail to approve or disapprove such proposed by-laws within three months after such filing, such by-laws shall become effective upon the expiration of such three month period. These by-laws, rules, regulations and amendments shall contain such provisions relating to the management of its business, the regulation of its affairs, the calling of meetings, the manner of selection of officers and trustees and such other provisions as may be reasonable and necessary.

3.

Notwithstanding the provisions of any law, general or special, a mutual company may, with the approval of the commissioner or the supervising agency, as the case may be, require a standard form and procedure for the casting of proxies or absentee ballots in any matter requiring a shareholder vote.

4.

Notwithstanding the provisions of any law, general or special, a board of directors of a mutual housing company created pursuant to the provisions of this article shall:

(a)

Hold at least four meetings of the board of directors annually. Such meetings shall be open to all shareholders and residents, except that they may include executive sessions open only to directors for the sole purpose of discussing confidential personnel issues, legal advice and counsel from an attorney to whom the mutual housing company is a client, or confidential issues affecting individual shareholders or residents, or contract negotiation. Any such board of directors meetings held in addition to the minimum number of four as required by this section shall be open to shareholders and residents, and subject to the aforementioned exception regarding executive sessions.

(b)

Maintain a record of any vote on a resolution of such board, including specification of how each director voted. Such record shall be a matter of public record which will be made available as a paper copy at the request of a shareholder and will also be posted on a website that is accessible by all shareholders maintained by the board of directors, provided however, that there may be redactions to the extent minutes would reflect the discussions held in executive session.

(c)

Promptly post on a website available to all shareholders and maintained by the board of directors to communicate with shareholders, (i) any request by the mutual housing company to the commissioner or the supervising agency, as the case may be, and any final resolution regarding such request, when the request relates to a change in regulations, a change in its real estate taxation, in a refinancing, financing being offered by the commissioner, supervising agency, or any other agency or, a proposed dissolution and reconstitution, (ii) any deficiency letters issued by the office of the attorney general to the mutual housing company regarding an offering plan for dissolution and reconstitution of the mutual housing company, any deficiency letters issued by the office of the attorney general to the mutual housing company regarding a proxy statement or any other documents permitted by the attorney general instead of such offering plan, and any of the mutual housing company’s resubmissions of such offering plan or proxy statement or any other documents permitted by the attorney general instead of such offering plan in response to such deficiency letters issued by the office of the attorney general, or

(iii)

any offer of financing from the commissioner, supervising agency, or any other agency to the mutual housing company.

5.

(a) No mutual housing company shall interfere with the right of a shareholder or tenant to form, join or participate in the lawful activities of any group, committee or other organization formed to protect the rights of shareholders and tenants; nor shall any mutual housing company harass, punish, penalize, diminish, or withhold any right, benefit or privilege of a shareholder or tenant under their proprietary lease or tenancy for exercising such right.

(b)

Shareholder and/or tenants’ groups, committees or other shareholder and/or tenants’ organizations shall have the right to meet without being required to pay a fee in any location on the premises including a community or social room where use is normally subject to a fee which is devoted to the common use of all shareholders and/or tenants in a peaceful manner, at reasonable hours and without obstructing access to the premises or facilities. Nothing in this subdivision shall be construed to limit or impede the authority of the board of directors to act on behalf of the mutual housing company or regulation by the commissioner or supervising agency with respect to the recognition of a tenant group representing all tenants, or to require the continued recognition of a cooperators’ advisory council formed pursuant to subdivision one of § 32-A (Additional supervision and regulation)section thirty-two-a of this article when superseded by the election of a board of directors.

Source: Section 17 — Powers, https://www.­nysenate.­gov/legislation/laws/PVH/17 (updated Apr. 1, 2022; accessed Jun. 15, 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:
Jun. 15, 2024

Last modified:
Apr. 1, 2022

§ 17’s source at nysenate​.gov

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