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This entry was published on 2014-09-22
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SECTION 111-B
Mortgage modification provisions for redevelopment companies in cities with a population of one million or more
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 5
§ 111-b. Mortgage modification provisions for redevelopment companies
in cities with a population of one million or more. 1. For purposes of
this section, "restrictive agreement" shall mean a binding and
irrevocable agreement between the redevelopment company and the
supervising agency providing that such redevelopment company for a term
of five years from the date of such agreement (i) shall not voluntarily
dissolve or reconstitute pursuant to section one hundred twenty-three of
this article, (ii) shall exercise any and all available options to renew
any housing assistance payments contract pursuant to section eight of
the United States Housing Act of nineteen hundred thirty-seven, as
amended, and any successor rent subsidy program, (iii) shall not cause
such a contract to be terminated by reason of such redevelopment
company's noncompliance with any of the terms thereof, and (iv) shall
not voluntarily cause or permit such a contract to expire, to not be
extended, to not be renewed, or to be terminated.

2. Notwithstanding the provisions of this article or the provisions of
any law, general or special, in cities with a population of one million
or more, a redevelopment company with a federally-aided mortgage formed
pursuant to this article may borrow funds and secure the repayment
thereof by note and mortgage or any other manner approved by the
supervising agency, provided, however, that (a) such approval by the
supervising agency shall be conditioned upon a restrictive agreement,
and (b) such redevelopment company may not increase the rents paid by
the tenants to pay for any such increase in indebtedness that is not
attributable to project cost.