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This entry was published on 2014-09-22
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SECTION 98
Conditions in contracts for municipal aid
Public Housing (PBG) CHAPTER 44-A, ARTICLE 5
§ 98. Conditions in contracts for municipal aid. In every contract
for a loan by a municipality or for periodic subsidies by a
municipality, or both, a substantial breach of the conditions set forth
therein providing for the maintenance of the project as low rent housing
shall be defined in such terms as the municipality shall deem to be in
the public interest and consistent with the provisions and purposes of
this chapter. In any such contract the municipality shall retain the
right, in the event of such a substantial breach or in the event of
acquisition of title to the project by a third party, other than a
government authorized to engage in the administration of low rent
housing, and approved by the municipality, in any manner including a
bona fide foreclosure under a mortgage or other lien held by a third
party, to increase the interest payable thereafter on the unpaid balance
of any loan made pursuant to the contract, to a rate not in excess of
the going rate of interest (at the time of such breach or acquisition),
plus two per centum per annum or to declare any such unpaid balance due
forthwith and to reduce or terminate any periodic subsidies payable
under the contract.