N.Y. Private Housing Finance Law Section 21
Capital structure

The capital structure of a company undertaking a project and the proportionate amount of the project cost to be represented by mortgages, bonds, notes, income debentures and shares shall be subject to the approval of the commissioner except as otherwise provided in section twenty-three with respect to a municipally-aided project. The shares and income debentures issued by a mutual company or urban rental company, other than a non-profit company incorporated pursuant to the provisions of the not-for-profit corporation law and this article for the purpose of providing housing 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, and other than a municipally-aided non-profit company or a municipally-aided mutual company, and other than a low income non-profit housing company, shall not be less than the total of five per centum of the project cost. The shares, bonds or notes, income debentures and mortgages covering any project shall not exceed the actual project cost. The provisions of this section with respect to the proportionate amount of the project cost to be represented by mortgages, bonds, notes, income debentures and shares shall not be applicable to any housing company project, if funds made available by the federal government or any agency or instrumentality thereof are used in financing the project, in whole or in part, or if a mortgage or mortgage bonds issued with respect to such project are insured by the federal government or any agency or instrumentality thereof.

Source: Section 21 — Capital structure, https://www.­nysenate.­gov/legislation/laws/PVH/21 (updated Sep. 22, 2014; accessed Jan. 17, 2026).

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
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Verified:
Jan. 17, 2026

Last modified:
Sep. 22, 2014

§ 21. Capital structure's source at nysenate​.gov

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