N.Y.
Private Housing Finance Law Section 576-D
Master servicing agreement
1.
The commissioner is hereby authorized to use the monies held in the housing development fund to make advances to a local loan administrator that has entered into a written master servicing agreement prescribed by the commissioner pursuant to subdivision two of this section.2.
The commissioner, in consultation with the comptroller, shall prescribe a master servicing agreement to be executed by the commissioner and local loan administrators. Such agreement shall provide that:(a)
any advances made to a local loan administrator shall be used solely for the purpose of providing loans to agricultural producers for undertaking farmworker housing projects;(b)
the total amount of loans made to any single agricultural producer shall not exceed two hundred thousand dollars per annum;(c)
the term of any loan shall not exceed ten years and equal payments of principal payable no less frequently than annually shall be required to be made on such loan during the term such loan is outstanding which payments will liquidate the entire principal balance of the loan over its term;(d)
the local loan administrator is required to pay to the commissioner for deposit into the housing development fund all repayments including interest, if any, received from any agricultural producers on account of such loan, except for that portion permitted to be retained by the local loan administrator as a fee pursuant to the master servicing agreement. The master servicing agreement shall also set forth:(i)
the form of any note and security agreement to be executed by the agricultural producer in connection with any loan, which shall include a provision that use of the loan to provide housing for a family member of the borrower or its principals shall constitute a default under the loan and security agreement;(ii)
the rate of interest, if any, to be charged on any loan;(iii)
the amount of any fee to be retained by the local loan administrator for servicing any loan;(iv)
the form of application required to be completed by an agricultural producer for any loan;(v)
the form of requisition and certification to be required from a local loan administrator to obtain an advance of funds from the commissioner;(vi)
any other conditions to be imposed upon an agricultural producer as a condition of receiving a loan;(vii)
the responsibilities to be performed by the local loan administrator in connection with reviewing, approving and servicing the loan and the circumstances under which the commissioner may terminate a master servicing agreement;(viii)
conditions necessary to insure prompt closing on loans for which funds are advanced, including payment of interest of funds from the time advanced until utilized; and(ix)
such other requirements as the commissioner may from time to time establish by rules and regulations consistent with the purposes of this section.3.
(a) The commissioner shall, subject to the availability of funds as appropriated by the legislature, advance from the housing development fund to a local loan administrator the amount of funds requested in any requisition within fifteen business days after receipt of all of the following: a completed requisition for an advance of funds; copies of any applications and any supporting documentation to which such requisition pertains; and a certification from the local loan administrator with respect to such requisition in addition to any other representation and statement required by the commissioner. The certification from the local loan administrator shall state that:(i)
the loan administrator has performed its responsibilities in connection with review and approval of applications to which such requisition pertains, (ii) to the best of the local loan administrator’s knowledge the loans, to which the advances pertain, comply with the master servicing agreement and the provisions of this section, and(iii)
the borrowers have demonstrated their ability to make the repayments required under the loan. In the event that funds are not available or the commissioner determines that the requisition, application or certification is defective, it shall so notify the local loan administrator within fifteen business days after receipt of the requisition.(b)
The commissioner shall establish criteria for prioritizing loan applications in the event that the requisitions submitted to the commissioner by one or more local loan administrators exceed the amount then available for the purposes of this section. Such criteria shall give a priority to housing for farmworkers and take into account:(i)
whether the farmworker housing project to which the application pertains is for the purpose of bringing non-conforming accommodations in compliance with the provisions of the state sanitary code or the state fire prevention and building code;(ii)
whether the farmworker housing project to which the application pertains is the most cost effective approach to enable the agricultural producer to construct or rehabilitate dwelling accommodations for farmworkers;(iii)
whether the agricultural producer making application lacks the financial resources to undertake the farmworker housing project without obtaining a loan pursuant to this section; and(iv)
such other factors as the commissioner deems relevant. In applying the criteria to be utilized for prioritizing loans, the commissioner shall be entitled to rely on the information contained in the copies of the applications submitted with the requisition.
Source:
Section 576-D — Master servicing agreement, https://www.nysenate.gov/legislation/laws/PVH/576-D (updated Apr. 17, 2020; accessed Dec. 21, 2024).
