New York Private Housing Finance Law
Powers and Limitations
1. Except as is inconsistent with the provisions of this article, a community development corporation shall have, in carrying out the purposes of this article, the powers conferred on corporations by the general corporation law and the business corporation law, and shall be subject to the limitations contained therein.
2. Community development corporations shall have the following additional powers:
(a) To construct, reconstruct, improve, alter, repair, lease, manage, operate and otherwise provide projects;
(b) To enter into contracts with the New York state housing finance agency for mortgage loans;
(c) To receive assistance from the state, the federal government, municipalities and any person, firm or corporation, by contract or otherwise; and to comply, subject to the provisions of this article, with the terms and conditions of such assistance;
(d) Subject to the approval of the commissioner, to sell, lease or otherwise dispose of any of its real property, or any appurtenances thereto or any interest therein, to the municipality or to any person, firm or public or private corporation approved by the municipality by resolution of its local legislative body. In the case of a lease or other disposition not divesting such corporation of title, such approval of the municipality may be conditioned upon the making of pro rata payments in lieu of taxes to the municipality;
(e) To borrow money and give mortgages and other liens on its real and personal property to secure the repayment thereof, and to issue its notes, bonds or other obligations and to provide for the rights of the holders thereof;
(f) Subject to the approval of the commissioner, to enter into agreements to pay annual sums in lieu of taxes to any political subdivision of the state with respect to any of its real property; provided, however, that the amount so paid for any year upon any such property shall not exceed the sum last paid as taxes on such property prior to the time of its acquisition by the corporation, or by the municipality if such property has been conveyed by the municipality to the corporation, plus any sum or sums attributable as taxes to such parts or portions of such real property as may be operated for profit, under lease or otherwise by or for the benefit of any private person, firm or corporation.
3. No community development corporation shall:
(a) Acquire any real property or interest therein unless such corporation shall first have obtained from the commissioner a certificate that such acquisition is consistent with the purposes of this article.
(b) Pay interest on its mortgage indebtedness at a rate higher than six per centum per annum or upon its notes, bonds or other obligations.
(c) Issue notes, bonds or other obligations relating to any project in an aggregate amount greater than the project cost.
(d) Without first having obtained the written consent of the commissioner:
(i) Construct, reconstruct, improve or alter any project, or enter into any contract therefor.
(ii) Sell, transfer or assign any real property, except that no such consent shall be necessary in any sale in foreclosure.
(iii) Except as otherwise provided in this article, encumber or lease all or any part of its real property to any other person or corporation.
(iv) Enter into contracts for the operation of the project.
(v) Enter into contracts for the payment of salaries to officers or employees.
(vi) Make a guaranty of payment or pledge any or all of its assets, income or revenues to secure payment of its obligations.
(vii) Voluntarily dissolve.