N.Y.
Private Housing Finance Law Section 42
Definitions
1.
“Agency” shall mean the corporate governmental agency created by § 43 (New York state housing finance agency)section forty-three of this article. 1-a. “Amortized value” shall mean, when used with respect to securities purchased at a premium above or a discount below par, the value as of any given date obtained by dividing the total amount of the premium or discount at which such securities were purchased by the number of days remaining to maturity on such securities at the time of such purchase and by multiplying the amount so calculated by the number of days having passed since the date of such purchase; and(a)
in the case of securities purchased at a premium, by deducting the product thus obtained from the purchase price, and(b)
in the case of securities purchased at a discount, by adding the product thus obtained to the purchase price.2.
“Bonds” and “notes” shall mean bonds and notes respectively, issued by the agency pursuant to this article.3.
“Equity bonds” and “equity notes” shall mean bonds and notes respectively, issued by the agency pursuant to subdivision four of § 46 (Notes and bonds of the agency)section forty-six of this article.4.
“Equity loan” shall mean a loan made by the agency to a mutual company, mutual housing company, mutual redevelopment company, or housing development fund company which is organized pursuant to the business corporation law and article 11 (Housing Development Fund Companies)article eleven of this chapter, in an amount not to exceed nine per centum of project cost and not in excess of the aggregate face value of home owners purchase notes received by such mutual company, mutual housing company, mutual redevelopment company, or housing development fund company, as the case may be, for the issuance of shares. 4-a. “Federally-aided mortgage loan” shall mean a loan secured by a first mortgage lien on the real property of which a project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the project, made or financed by the agency to the owner of such property, which loan is insured or co-insured by the federal government or in connection with which there has been assigned or pledged to the agency the right to receive housing assistance payments to be made by the federal government under a contract entered into pursuant to section eight of the United States housing act of nineteen hundred thirty-seven, as amended or supplemented, provided, however, that such term shall not include mortgage loans made by the agency and insured by the federal government pursuant to subsection (f) of section two hundred twenty-three of such act, to refinance mortgage loans made by the agency or the state prior to the first day of June, nineteen hundred seventy-nine or theretofore or thereafter, amended, modified, or increased or loans provided for pursuant to subdivision twenty-nine-a of § 44 (Powers of the agency)section forty-four of this article. Where all or part of the cost of acquiring any real property included in the project is to be financed by a federally-aided mortgage loan the term “owner” shall mean the owner upon such acquisition. Nothing contained herein shall limit or prohibit the agency from consenting to the modification of any instrument executed in connection with a federally-aided mortgage loan, provided that such modification will not materially reduce the value of the security for such mortgage loan. 4-b. “Federally guaranteed security” means any security, investment or evidence of indebtedness which is issued pursuant to the national housing act or any successor provision of law, as amended, which is either, directly or indirectly, insured or guaranteed in full as to the repayment of principal and interest by the United States of America or any instrumentality thereof.5.
“Home owners purchase note” shall mean home owners purchase note as defined in article 1 (Short Title)article one of this chapter. 5-a. “Insured mortgage reserve fund” shall mean the fund created by § 57 (Insured mortgage reserve fund)section fifty-seven of this chapter.6.
“Mortgage loan” shall mean a loan made by the agency to a company in an amount not to exceed ninety per centum of the project cost, except that in the case of a mutual company, an urban rental company which has not been aided by any loan made prior to September first, nineteen hundred sixty-eight, or a non-profit company incorporated pursuant to the provisions of the not-for-profit corporation law and this chapter 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 in the case of a community development corporation the loan shall not exceed ninety-five per centum of the project cost and in the case of a non-profit company incorporated pursuant to the provisions of the not-for-profit corporation law and this chapter for the purpose of providing housing for aged or handicapped persons of low income or in the case of a low income non-profit housing company the loan shall not exceed the total project cost, and secured by a first mortgage lien on the real property of which the project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the project. “Company,” “mutual company,” “urban rental company,” “project cost” and “project” shall mean company, mutual company, urban rental company, project cost and project, respectively, as defined in article 2 (Limited-profit Housing Companies)article two of this chapter. 6-a. “Mortgage loan” shall also mean a loan made by the agency to a community senior citizens center and services company in an amount not to exceed the total project cost of a project undertaken by such company pursuant to article 7-A (Community Senior Citizens Centers and Services Companies)article seven-A of this chapter, and secured by a first mortgage lien on the real property of which the project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the project. 6-b. “Mortgage loan” shall also mean a loan made by the agency to an eligible borrower as defined in article twenty-eight-B of the public health law in an amount not to exceed the total hospital project cost and secured by a first mortgage lien on the real property of which the hospital project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the hospital project. Such loan may be further secured by such a lien upon other real property owned by the eligible borrower. Notwithstanding the foregoing provisions of this subdivision or any other provisions of this article to the contrary, any personal property may be excluded from the lien of the mortgage provided (a) the commissioner of health finds that such property is not essential for the rendition of required hospital services as such term is defined in article twenty-eight of the public health law, and(b)
the agency consents to such exclusion. “Hospital project cost” and “hospital project” shall mean hospital project cost and hospital project, respectively, as defined in article twenty-eight-B of the public health law. 6-c. “Mortgage loan” shall also mean a loan made by the agency to a limited-profit nursing home company incorporated pursuant to the provisions of article twenty-eight-A of the public health law in an amount not to exceed ninety-five per centum of the nursing home project cost, and in the case of a non-profit nursing home company incorporated pursuant to the provisions of article twenty-eight-A of the public health law and the not-for-profit corporation law in an amount not to exceed the total nursing home project cost, and secured by a first mortgage lien on the real property of which the nursing home project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the nursing home project. Notwithstanding the foregoing provisions of this subdivision or any other provision of this article to the contrary, any personal property may be excluded from the lien of the mortgage provided (a) the commissioner of health finds that such property is not essential for the nursing home project as such term is defined in article twenty-eight-A of the public health law, and(b)
the agency consents to such exclusion. “Nursing home company”, “limited-profit nursing home company”, “non-profit nursing home company”, “nursing home project cost” and “nursing home project” shall mean nursing home company, limited-profit nursing home company, non-profit nursing home company, nursing home project cost and nursing home project, respectively, as defined in article twenty-eight-A of the public health law. 6-d. “Mortgage loan” shall also mean a loan made by the agency to a company incorporated pursuant to the provisions of the not-for-profit corporation law in an amount not to exceed the total community mental health services project cost or community developmental disabilities services project cost, and secured by a first mortgage lien on the real property of which the community mental health services project or community developmental disabilities services project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the community mental health services project or community developmental disabilities services project. “Community mental health services company,” “community developmental disabilities services company,” “community mental health services project cost,” “community developmental disabilities services project cost,” “community mental health services project” and “community developmental disabilities services project” shall mean community mental health services company, community developmental disabilities services company, community mental health services project cost, community developmental disabilities services project cost, community mental health services project and community developmental disabilities services project, respectively. 6-e. “Mortgage loan” shall also mean a loan made by the agency to a non-profit corporation which is an eligible borrower as defined in title five-A of article six of the social services law in an amount not to exceed the total youth facilities project cost, and secured by a first mortgage lien on the real property of which the youth facilities project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the youth facilities project. “Youth facilities project cost” and “youth facilities project” shall mean youth facilities project cost and youth facilities project, respectively, as defined in title five-A of article six of the social services law. 6-f. “Mortgage loan” shall also mean an instrument or instruments made by a company to evidence residual indebtedness, which instrument or instruments are secured by a mortgage on the real property of the project. * 6-g. “Mortgage loan” shall also mean a loan secured by a first mortgage lien on the real property of which a project consists and the personal property attached to or used in connection with the construction or rehabilitation of the project, made or financed by the agency to the owner of such property, which property a municipal housing authority, constituted, created or established pursuant to article thirteen of the public housing law, has agreed to purchase upon the completion of such construction or rehabilitation. * NB There are 2 sb 6-g’s * 6-g. “Mortgage loan” shall also mean a loan made by the agency to a mutual housing company for the purpose of refinancing the existing mortgage indebtedness of such company in an amount not to exceed the cost of refinancing the existing mortgage indebtedness of such company and necessary funds for the replacement, improvement and rehabilitation of the project owned by such company, all costs incurred by such company relating to the refinancing of the existing mortgage indebtedness including amounts required to establish escrow accounts, reserves and working capital as determined by the agency, and such other amounts as are permitted by article 4 (Limited Dividend Housing Companies)article four of this chapter, and secured by a first mortgage lien on the real property of which the project consists and the personal property attached to or used in connection with the construction, acquisition, reconstruction, rehabilitation, improvement or operation of the project. * NB (Operative pending ruling by Internal Revenue Service) * NB There are 2 sb 6-g’s 7. “Mutual company”, “mutual housing company” and “mutual redevelopment company” shall mean mutual company, mutual housing company and mutual redevelopment company as defined in articles two, four and five, respectively, of this chapter.8.
“Non-profit company” shall mean a company incorporated pursuant to the provisions of the not-for-profit corporation law and article 2 (Limited-profit Housing Companies)article two of this chapter 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 handicapped or aged persons of low income or housing for persons of low income or housing for families of low income as defined under article 2 (Limited-profit Housing Companies)article two of this chapter.9.
“Community development corporation” shall mean a corporation incorporated pursuant to the provisions of the not-for-profit corporation law and article 6-A (Community Development Corporations)article six-A of this chapter.10.
“Non-profit project bonds” and “non-profit project notes” shall mean bonds and notes respectively, issued by the agency for the purposes of making mortgage loans to mutual companies, non-profit companies or community development corporations paying interest on such bonds and notes, establishing reserves to secure such bonds and notes, and paying of all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans.11.
“Hospital and nursing home project bonds” and “hospital and nursing home project notes” shall mean bonds and notes respectively, issued by the agency for the purposes of making mortgage loans to hospital corporations which are eligible borrowers as defined in article twenty-eight-B of the public health law or nursing home companies, paying interest on such bonds and notes, establishing reserves to secure such bonds and notes, and paying of all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans.12.
“Urban rental project bonds” and “urban rental project notes” shall mean bonds and notes respectively, issued by the agency after August thirty-first, nineteen hundred sixty-eight, for the purposes of making mortgage loans to urban rental companies, paying interest on such bonds and notes, establishing reserves to secure such bonds and notes, and paying of all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans.13.
“Youth facilities project bonds” and “youth facilities project notes” shall mean bonds and notes, respectively, issued by the agency for the purposes of making mortgage loans to non-profit corporations which are eligible borrowers as defined in title five-A of article six of the social services law, paying interest on such bonds and notes, establishing reserves to secure such bonds and notes, and paying of all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans.14.
“Community mental health services and developmental disabilities services project bonds” and “community mental health services and developmental disabilities services project notes” shall mean bonds and notes, respectively, issued by the agency for the purposes of making mortgage loans to companies incorporated pursuant to the not-for-profit corporation law, paying interest on such bonds and notes, establishing reserves to secure such bonds and notes, and paying of all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans. 14-a. “Community mental health services and developmental disabilities services project revenue bonds” and “community mental health services and developmental disabilities services project revenue notes” shall mean bonds and notes, respectively, issued by the agency for the purpose of making mortgage loans to companies incorporated pursuant to the not-for-profit corporation law and article seventy-five of title E of the mental hygiene law, paying interest on such bonds and notes, establishing reserves to secure such bonds and notes, and paying of all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans.15.
“Community senior citizens services project bonds” and “community senior citizens services project notes” shall mean bonds and notes, respectively, issued by the agency for the purposes of making mortgage loans to companies incorporated pursuant to the not-for-profit corporation law and article 7-A (Community Senior Citizens Centers and Services Companies)article seven-A of this chapter, paying interest on such bonds and notes, establishing reserves to secure such bonds and notes, and paying of all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans.16.
“State of New York municipal bond bank agency bonds” and “State of New York municipal bond agency notes” shall mean bonds and notes, respectively, issued by the state of New York municipal bond bank agency for the purposes of purchasing municipal bonds from municipalities.17.
“New York state medical care facilities finance agency bonds” and “New York state medical care facilities finance agency notes” shall mean bonds and notes, respectively, issued by the New York state medical care facilities finance agency for the corporate purposes of the New York state medical care facilities finance agency.18.
“New York state project finance agency bonds” and “New York state project finance agency notes” shall mean bonds and notes, respectively, issued by the New York state project finance agency for the corporate purposes of the New York state project finance agency.19.
“Residual indebtedness.” Residual indebtedness shall be indebtedness of a company in an amount equal to the unpaid principal balance due on the original mortgage plus all interest accrued thereon at such time as the mortgage is refinanced less an amount equal to the principal amount, when made, of the mortgage insured by the federal government in connection with the refinancing of a project. Such indebtedness shall be secured by a mortgage which may be subordinate to the lien of any mortgage loan insured by the federal government and may contain such terms and conditions not inconsistent with this article as may be approved by the commissioner, and as the agency may deem necessary or desirable to secure the repayment of such residual indebtedness. * 20. “Revenue housing bonds” shall mean bonds issued by the agency after May thirty-first, nineteen hundred seventy-six for the purpose of making mortgage loans to mutual companies, non-profit companies, or urban rental companies, funding non-profit project notes and urban rental project notes issued for the purpose of making such mortgage loans, paying interest on such bonds, establishing reserves to secure such bonds and paying all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans or the funding of such notes. * NB (Effective until ruling by Internal Revenue Service) * 20. “Revenue housing bonds” shall mean bonds issued by the agency after May thirty-first, nineteen hundred seventy-six for the purpose of making mortgage loans to mutual companies, mutual housing companies, non-profit companies, or urban rental companies, funding non-profit project notes and urban rental project notes issued for the purpose of making such mortgage loans, paying interest on such bonds, establishing reserves to secure such bonds and paying all other expenditures of the agency incident to and necessary or convenient for the making of such mortgage loans or the funding of such notes. * NB (Effective pending ruling by Internal Revenue Service) 21. “Special revenue housing coverage reserve funds” shall mean the funds created by § 58 (Special revenue housing coverage reserve funds)section fifty-eight of this article.22.
“Bond reserve insurance fund” shall mean the fund created by § 59 (Bond reserve insurance fund)section fifty-nine of this article. * 23. “Lending institution” shall mean any bank or trust company or savings bank, or any corporation, association or other entity which is owned or controlled by any one or more such bank or trust company or savings bank, or any savings and loan association, credit union, federal national mortgage association approved mortgage banker, national banking association, federal savings and loan association, federal savings bank, public pension fund, pension fund with assets over fifty million dollars, insurance company, federal credit union or other financial institution or governmental agency of the United States which customarily makes, purchases, holds, insures or services residential mortgages. * NB Effective until July 23, 2025 * 23. “Lending institution” shall mean any bank or trust company or savings bank, or any corporation, association or other entity which is owned or controlled by any one or more such bank or trust company or savings bank, or any savings and loan association, industrial bank, credit union, federal national mortgage association approved mortgage banker, national banking association, federal savings and loan association, pension fund, insurance company, federal credit union or other financial institution or governmental agency of the United States which customarily makes, purchases, holds or services residential mortgages. * NB Effective July 23, 2025 * 24. “Housing development” shall mean a specific work or improvement, whether or not to effectuate all or any part of a plan, and consisting of five or more residential units, and including the lands, buildings and improvements acquired, owned, constructed, managed or operated to provide such units and such incidental and appurtenant commercial, recreation, cultural, communal, dining, medical and nursing treatment, day care or residential child care and community facilities as may be approved by the agency. As used in connection with the term housing development, the term residential unit shall refer to units suitable for residential use or accommodations included within the term housing as defined in subdivision nine of § 12 (Definitions)section twelve of this chapter. * NB Repealed July 23, 2025 25. “Housing and non-profit health facility” shall mean a specific work or improvement, whether or not to effectuate all or any part of a plan consisting of five or more residential units, and at the election of the agency such additional health and health related facilities as the agency may approve; and including the lands, buildings and improvements acquired, owned, constructed, managed or operated to provide such units and health, or health related facilities and such incidental and appurtenant commercial, recreation, cultural, communal, dining, parking, day care or residential child care, senior citizen and community facilities as may be approved by the agency acquired, owned, constructed, rehabilitated, improved, managed or operated by a non-profit company except that any portion thereof meeting the definition of a housing development set forth in subdivision twenty-four hereof may be separately owned by a for profit owner approved by the agency. As used in connection with the term housing and non-profit health facility, the term residential unit shall refer to units suitable for residential use or accommodations included within the term housing as defined in subdivision nine of § 12 (Definitions)section twelve of this chapter, and the term non-profit company shall mean a company incorporated pursuant to the provisions of the not-for-profit corporation law for the purpose of providing housing for staff members, employees, students or users of a hospital, health, health related facility and their immediate families or for the purpose of providing a hospital, health, or health related facility.
Source:
Section 42 — Definitions, https://www.nysenate.gov/legislation/laws/PVH/42 (updated Jul. 21, 2023; accessed Dec. 21, 2024).
