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SECTION 12
Definitions
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 2
§ 12. Definitions. As used in this article, the following terms shall
mean and include:

1. "Areas." A section of a municipality in which there is to be
located a project approved by the municipality as provided in paragraph
(a) of subdivision one and in subdivision five of section twenty-six of
article two of this chapter.

2. "Company". A limited-profit housing company duly incorporated
pursuant to the provisions of this article, or a company incorporated
pursuant to the not-for-profit corporation law and this article for the
purpose of providing housing and auxiliary facilities for staff members,
employees or students of a college, university, hospital or child care
institution and their immediate families or for aged or handicapped
persons of low income, pursuant to this article, or a municipally-aided
non-profit company as hereinafter defined, or a low income non-profit
housing company as hereinafter defined.

2-a. "Home owners purchase note." A promissory note accepted by a
mutual company as consideration for the issuance of stock entitling a
person or family to occupancy of an apartment in a project, payable over
or within a period of ten years.

2-b. "Mutual company." A company whose dwelling facilities, to the
extent of at least eighty per centum, are occupied by persons or
families who are entitled to such occupancy by reason of ownership of
shares in such company; provided however that a company that was not a
mutual company prior to July first, nineteen hundred ninety-five may
become a mutual company if its dwelling facilities, to the extent of at
least fifty per centum, are occupied by persons or families who are
entitled to such occupancy by reason of ownership of shares in such
company. The commissioner or supervising agency shall provide procedures
for such conversion of a company to a mutual company on or after July
first, nineteen hundred ninety-five; such procedures shall require the
submission of a plan for attaining eighty per centum owner occupancy.

2-c. "Urban Rental Company." A company whose project is located in or
adjacent to a municipality and whose housing accommodations are occupied
by persons or families who do not own the shares in such company.

3. "Occupancy date." The date defined in the contract between a
company and a municipality or the state, as the case may be, as the date
upon which the project is to be deemed ready for occupancy, or if such
term is not defined in such contract, the date of issuance of the
temporary certificate of occupancy.

4. "Plan." A plan or undertaking of an area or areas for providing low
rent housing for persons of low income, and for other facilities
incidental and appurtenant thereto.

5. "Project." A specific work or improvement, including lands,
buildings and improvements acquired, owned, constructed, rehabilitated,
improved, managed or operated by a company providing dwelling
accommodations, non-housekeeping accommodations, aged care
accommodations or accommodations for handicapped persons pursuant to
this article, or undertaken, planned, developed, constructed or owned
pursuant to section thirty-six-a of this article, and such business,
commercial, cultural, recreational, communal, dining, medical and
nursing treatment, day care or residential child care facilities or any
combination thereof, or other facilities as may be deemed by the
commissioner with respect to a project aided by a state loan or New York
state housing finance agency loan or by the supervising agency with
respect to a municipally-aided project or a project undertaken, planned,
developed, constructed or owned pursuant to section thirty-six-a of this
article, to be incidental and appurtenant thereto. In the case of a
state loan or New York state housing finance agency loan, a project
shall effectuate all or part of a plan, provided, however, that such
dwelling accommodations, non-housekeeping accommodations, aged care
accommodations or accommodations for handicapped persons may be provided
in any section of the municipality, whether or not such section has
insanitary or substandard housing conditions.

5-a. "State urban development corporation project". A project
acquired, owned, constructed, managed or operated by a limited-profit
housing company which is a subsidiary of the New York state urban
development corporation, as the term "subsidiary" is defined in the New
York state urban development corporation act.

5-b. "Battery Park city project." A project acquired, owned,
constructed, managed or operated by a company organized pursuant to this
article and located within the Battery Park project area, as defined in
the Battery Park city authority act.

6. "Project cost". The sum total of all costs incurred by a company
and, as approved by the commissioner in the case of a state-aided
project or a project aided by the New York state housing finance agency
or by the supervising agency in the case of a municipally-aided project
as reasonable and necessary for carrying out all works and undertakings
for the development of a project. These shall include but are not
necessarily limited to the carrying charges during construction and
before physical completion or rehabilitation, working capital not
exceeding three per cent of the estimated total cost or three per cent
of the actual total final cost, whichever is larger, the cost of all
necessary studies, surveys, plans and specifications, architectural,
engineering, or other special services, the cost of acquisition of land
and any buildings thereon, site preparation and development,
construction, reconstruction and equipment; the reasonable cost of
financing incurred by the investor in the course of development of the
project, up to and including the occupancy date; the fees imposed by the
commissioner or by the supervising agency or by both; other fees charged
in the course of the development of the project up to and including the
occupancy date, pursuant to the provisions of this article; the
necessary expenses in connection with the initial occupancy of the
project and where applicable, the cost of such training services as will
assist the residents of the project to acquire ownership and to operate
the project in an efficient and harmonious manner; and the cost of such
other items, including tenant relocation, as the commissioner, in the
case of a state-aided project or a project aided by the New York state
housing finance agency or the supervising agency, in the case of a
municipally-aided project shall determine to be reasonable and necessary
for the development of the project, less any and all net rents and other
net revenues received from the operation of the real or personal
property on the project site, or any part thereof, by the company on or
after the date on which the contract between the company and the state
or the New York state housing finance agency or municipality was entered
into and prior to the occupancy date. In the case of any project
purchased or leased by a company from a municipality pursuant to the
provisions of section thirty-six-a of this article, project cost shall
include the value of the lease or the purchase price paid or to be paid
by such company to such municipality.

7. "Local and municipal taxes". Taxes levied by a county, city,
village, town, school and special district but shall not include
assessments for local improvements.

8. "Child Care Institution"--A private, non-profit, resident agency,
association, corporation, institution or other organization, which is
incorporated or organized under the laws of this state for the care and
treatment of children, which actually has its place of business or plant
in this state and which submits and consents to the approval,
visitation, inspection and supervision of the Department of Social
Welfare, or a similar administrative department of the State of New York
as to any and all acts in relation to the welfare of children performed
or to be performed thereby.

9. "Housing". As used in this article the term includes:

(a) "Dwellings". "Dwelling accommodations". A room or rooms, with or
without cooking facilities, arranged for occupancy as a self-contained
unit.

(b) "Non-housekeeping accommodations". A room or rooms, without
cooking facilities, and with or without board designed for the occupancy
of staff members, employees or students of a college, university or
hospital.

(c) "Aged care accommodations". Non-housekeeping accommodations for
aged persons with board and aged care service as may be provided as an
incident to occupancy, provided however, that no such service shall be
of such a nature, kind or quality as to require licensing by the state
department of health under article twenty-eight of the public health
law.

(d) "Accommodations for handicapped persons." Dwelling accommodations
designed for the occupancy of handicapped persons or non-housekeeping
accommodations designed for the occupancy of handicapped persons with
board and such service as may be provided as an incident to occupancy,
provided however, that no such service shall be of such a nature, kind
or quality as to make the facility subject to the jurisdiction of any
other agency of the state.

10. "Persons of low income" and "families of low income". Persons or
families who are in the low income groups and who cannot afford to pay
enough to cause private enterprise in their municipality to build a
sufficient supply of adequate, safe and sanitary dwellings,
non-housekeeping accommodations or aged care accommodations.

11. "Preliminary Costs". Project costs approved by the supervising
agency as appropriate expenditures which may be incurred prior to
commitment and initial advance of the proceeds of a mortgage loan under
this article, including but not limited to: (a) payments for options to
purchase properties on the proposed housing project site, deposits on
contracts of purchase, or with prior approval of the supervising agency,
payments for the purchase of such properties; (b) legal and
organizational expenses, including payment of attorneys' fees, project
manager and clerical staff salaries, office rent and other incidental
expenses; (c) payment of fees for preliminary feasibility studies and
advances for planning, engineering and architectural work; (d) expenses
for tenant surveys and market analyses; (e) necessary application and
other fees; and (f) such other expenses incurred by the limited-profit
housing company as the supervising agency may deem appropriate to
effectuate the purposes of this article.

12. "Municipally-aided non-profit company." A non-profit housing
company duly incorporated pursuant to the not-for-profit corporation law
and this article, which is aided by a municipal mortgage loan, a loan by
the New York city housing development corporation or tax exemption or
both and is not aided by any state mortgage loan or any mortgage loan by
the New York state housing finance agency or a mortgage loan insured by
the federal government made for the purpose of refinancing a mortgage
loan other than a municipal mortgage loan or a mortgage loan made by the
New York city housing development corporation.

13. "Municipally-aided mutual company." A mutual company which is
aided by a municipal mortgage loan, a loan by the New York city housing
development corporation or tax exemption or both and is not aided by any
state mortgage loan or any mortgage loan by the New York state housing
finance agency or a mortgage loan insured by the federal government made
for the purpose of refinancing a mortgage loan other than a municipal
mortgage loan or a mortgage loan made by the New York city housing
development corporation.

14. "Low income non-profit housing company." A non-profit housing
company duly incorporated pursuant to the not-for-profit corporation law
and this article, whose principal purpose is to provide housing for
persons of low income and families of low income and which is aided by a
state mortgage loan or mortgage loan by the New York state housing
finance agency or a municipal mortgage loan or municipal tax exemption,
or both, or a mortgage loan insured by the federal government.

15. "Residual indebtedness." Where a mortgage loan is refinanced
pursuant to section twenty-three-a or subdivision twenty-two-a of
section six hundred fifty-four of this chapter, residual indebtedness
shall be the indebtedness of a company due on the original mortgage
loan, including all unpaid principal and all interest accrued thereon,
less an amount equal to the principal amount, when made, of the mortgage
insured by the federal government in connection with the refinancing.
Such indebtedness shall be secured by a mortgage which may be
subordinate to the lien of any mortgage insured by the federal
government and may contain such terms and conditions not inconsistent
with this article as may be approved by the supervising agency and as
the supervising agency may deem necessary or desirable to secure the
repayment of such residual indebtedness. Residual indebtedness shall not
be restricted by the provisions of this article relating to project
cost.

16. "Residual receipts obligations". Where a mortgage loan is
refinanced pursuant to section twenty-three-a or subdivision
twenty-two-a of section six hundred fifty-four of this chapter, residual
receipts obligations shall mean the amount of any additional loan to a
company, and any amounts paid other than by the company, to establish
escrow accounts or reserves or to satisfy minimum property standards or
to install life safety devices for the issuance of mortgage insurance by
the federal government in connection with the refinancing. With the
approval of the supervising agency and the consent of the company,
residual receipts obligations may be evidenced by non-interest bearing
residual receipts notes. Residual receipts obligations shall be payable
only after the payment in full of all residual indebtedness. Residual
receipts obligations shall not be restricted by the provisions of this
article relating to project cost and shall not include any amounts
deposited under an agreement with the federal government for the sharing
of claims paid by the federal government on account of insurance of
mortgages.