N.Y. Private Housing Finance Law Section 27
Limitations


No company shall:

1.

Acquire any real property or interest therein unless it shall first have obtained from the commissioner or the supervising agency, as the case may be, a certificate that such acquisition is necessary or convenient for the public purpose defined in this article.

2.

Pay interest upon its income debentures at a rate higher than six per centum per annum except as otherwise provided in this article.

3.

Issue its stock, income debentures and bonds covering any project in an amount greater in the aggregate than the actual project cost.

4.

Without first having obtained the written consent of the commissioner or the supervising agency, as the case may be:

(a)

Construct, reconstruct, rehabilitate, improve or alter any project, or enter into any contract therefor.

(b)

Sell, transfer or assign any real property, except that no such consent shall be necessary in any sale in foreclosure as herein provided.

(c)

Except as otherwise provided in this article, encumber, lease or rent all or any part of its real property.

(d)

Enter into contracts for the operation of the project.

(e)

Make a guaranty of payment.

(f)

Voluntarily dissolve.

(g)

Enter into contracts for the payment of salaries to officers or employees.

5.

Pay interest on its mortgage indebtedness at a rate higher than six per centum per annum, or at such higher rates as may be approved by the commissioner, or the supervising agency, as the case may be, but in no event shall any such rate exceed the rate of interest prescribed by the superintendent of financial services pursuant to Banking Law § 14-A (Rate of interest)section fourteen-a of the banking law or, in the case of a mortgage loan insured or held by the federal government, the rate approved by the federal government; provided, however, that in the case of a company carrying out a state urban development corporation project or in the case of an instrument or instruments securing the residual indebtedness of a company, which indebtedness is secured by a mortgage on the real property of a project, such rate shall not exceed the rate of interest prescribed by the superintendent of financial services pursuant to Banking Law § 14-A (Rate of interest)section fourteen-a of the banking law or nine per centum per annum, whichever is the higher; and further provided, however, that, in the case of a company that is a mortgagor under a mortgage assigned to or acquired by the New York city housing development corporation pursuant to subdivision twenty-one of § 654 (Powers of the corporation)section six hundred fifty-four of this chapter and whose project is aided by a subsidy from the federal government, such rate shall be the rate of interest approved by the supervising agency. Notwithstanding the foregoing provisions of this section, the rate of interest that a company shall have the power to pay on that portion of its mortgage indebtedness attributable to an investment or participation in a loan made pursuant to subdivision one of section fifteen by an organization or entity mentioned in such subdivision, shall be the rate of interest approved by the commissioner or the supervising agency, as the case may be.

6.

Notwithstanding the provisions of subdivision five of this section twenty-seven, a company, which has obtained a mortgage loan from the New York city housing development corporation or the New York state housing finance agency and where it is necessary for additional bonds or notes to be issued by the New York city housing development corporation or the New York state housing finance agency (i) in order to obtain funds to fulfill the mortgage loan commitment to such company, as such commitment may be amended or (ii) to refund or renew notes issued in fulfillment thereof, for a project partially or temporarily financed by bonds or notes issued, in the case of the New York city housing development corporation, prior to the first day of August, nineteen hundred seventy-five, and in the case of the New York state housing finance agency, prior to the thirty-first day of December, nineteen hundred seventy-five , may pay interest on that portion of its mortgage indebtedness, the funds for which were obtained by the New York city housing development corporation or the New York state housing finance agency through the issuance of such additional or refunding bonds or notes, at a rate not in excess of the cost of financing incurred by the New York city housing development corporation or the New York state housing finance agency, as the case may be, to issue such additional or refunding bonds or notes, provided that, with respect to the New York city housing development corporation, such corporation determines that such cost of financing is reasonable and the commissioner or the supervising agency, as the case may be, shall approve such cost of financing.

Source: Section 27 — Limitations, https://www.­nysenate.­gov/legislation/laws/PVH/27 (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

§ 27’s source at nysenate​.gov

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