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This entry was published on 2022-07-29
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SECTION 42
Definitions
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 42. Definitions. As used or referred to in this article, unless a
different meaning clearly appears from the context:

1. "Agency" shall mean the corporate governmental agency created by
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
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 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
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 one of this chapter.

5-a. "Insured mortgage reserve fund" shall mean the fund created by
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 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 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 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 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 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 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 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 section fifty-eight of this article.

22. "Bond reserve insurance fund" shall mean the fund created by
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, 2023

* 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, 2023

* 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 section twelve of this chapter.

* NB Repealed July 23, 2023

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 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.