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This entry was published on 2022-07-29
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SECTION 44
Powers of the agency
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 44. Powers of the agency. Except as otherwise limited by this
article, the agency shall have power:

1. To sue and be sued;

2. To have a seal and alter the same at pleasure;

3. To make and execute contracts and all other instruments necessary
or convenient for the exercise of its power and functions under this
article;

4. To make and alter by-laws for its organization and internal
management and, subject to agreements with noteholders or bondholders,
to make rules and regulations governing the use of its property and
facilities, which rules and regulations shall be filed with the
department of state in the manner provided by section one hundred two of
the executive law;

5. To acquire, hold and dispose of personal property for its corporate
purposes;

6. To appoint officers, agents and employees, prescribe their duties
and fix their compensation, subject to the provisions of the civil
service law and to the rules and regulations of the civil service
commission of this state;

7. To borrow money and issue negotiable notes, bonds or other
obligations and to provide for the rights of the holders thereof;

8. Subject to any agreements with noteholders or bondholders, to
invest any funds held in reserve or sinking funds, including the insured
mortgage reserve fund and any special revenue housing coverage reserve
fund or any monies not required for immediate use or disbursement, at
the discretion of the agency, in obligations of the state or the United
States government or obligations the principal and interest of which are
guaranteed by the state or the United States government, or in any other
obligations in which the comptroller of the state of New York is
authorized to invest pursuant to section ninety-eight of the state
finance law;

9. Subject to the approval of the commissioner in the case of mortgage
loans to other than hospital corporations which are eligible borrowers
as defined in article twenty-eight-B of the public health law or nursing
home companies, non-profit corporations which are eligible borrowers as
defined in title five-A of article six of the social services law, or
companies incorporated pursuant to the not-for-profit corporation law
and article seventy-five of the mental hygiene law, who shall be guided
by the provisions governing state loans contained in article two of this
chapter, to make mortgage loans, to participate with the state in making
mortgage loans and to undertake commitments to make any such mortgage
loans;

9-a. Subject to the approval of the commissioner of social services of
the state of New York, to make mortgage loans and to undertake
commitments to make mortgage loans to community senior citizens centers
and services companies under and pursuant to article seven-A of this
chapter.

10. Subject to the approval of the commissioner of housing and
community renewal, the state commissioner of health, the state
commissioner of mental hygiene or the state commissioner of social
services, as the case may be, to sell, at public or private sale, any
mortgage or other obligation securing a mortgage loan made by the
agency;

* 10-a. To acquire and to contract to acquire, by assignment or
otherwise, any mortgage securing a loan and any note or bond made by a
mutual housing company and to modify or satisfy such mortgage, bond or
note and accept or make a new mortgage and other instruments for the
purpose of refinancing the existing indebtedness of such company.
* NB (Effective pending ruling by Internal Revenue Service)

11. (a) In connection with the making or financing the making of
mortgage loans and commitments therefor, except mortgage loans and
commitments made with hospital corporations which are eligible borrowers
as defined in article twenty-eight-B of the public health law, nursing
home companies, non-profit corporations which are eligible borrowers as
defined in title five-A of article six of the social services law, or
companies incorporated pursuant to the not-for-profit corporation law
and article seventy-five of the mental hygiene law, to make and collect
such fees and charges, including but not limited to reimbursement of all
costs of financing by the agency, service charges and insurance
premiums, as the agency shall determine to be reasonable and as shall be
approved by the commissioner of housing;

(b) In connection with the making of mortgage loans and commitments
therefor to hospital corporations which are eligible borrowers as
defined in article twenty-eight-B of the public health law or nursing
home companies, to make and collect from such corporations and companies
such fees and charges, including but not limited to reimbursement of all
costs of financing by the agency, service charges and insurance
premiums, as the agency shall determine to be reasonable;

(c) In connection with the making of mortgage loans and commitments
therefor to non-profit corporations which are eligible borrowers as
defined in title five-A of article six of the social services law, to
make and collect from such corporations such fees and charges, including
but not limited to reimbursement of all costs of financing by the
agency, service charges and insurance premiums as the agency shall
determine to be reasonable.

(d) In connection with the making of mortgage loans and commitments
therefor to companies incorporated pursuant to the not-for-profit
corporation law and article seventy-five of the mental hygiene law, to
make and collect from such companies such fees and charges, including
but not limited to reimbursement of all costs of financing by the
agency, service charges and insurance premiums, as the agency shall
determine to be reasonable.

11-a. In connection with the making of mortgage loans and commitments
therefor to companies incorporated pursuant to the not-for-profit
corporation law and article seven-A of this chapter, to make and collect
from such companies such fees and charges, including but not limited to
reimbursement of all costs of financing by the agency, service charges
and insurance premiums, as the agency shall determine to be reasonable.

11-b. To make or finance the making of federally-aided mortgage loans
pursuant to section forty-four-c of this article and, in connection with
such mortgage loans, to exercise such powers and undertake such
responsibilities as may be required by any law, regulation or other
requirement of the federal government.

11-c. Subject to the provisions of any contract with noteholders and
bondholders (a) to make and contract for the making of mortgage loans
for the construction or rehabilitation of projects which a municipal
housing authority, constituted, created or established pursuant to
article thirteen of the public housing law, has agreed to purchase on a
turnkey basis in accordance with a federally assisted program for the
production of public housing as authorized by the United States housing
act of nineteen hundred thirty-seven as amended to the date of enactment
of this subdivision of this section, upon the completion of such
construction or rehabilitation and (b) to make and to contract for the
making of loans to, or to purchase loans from banking or other lending
institutions for the purpose of financing such construction or
rehabilitation.

12. In connection with any property on which it has made or financed a
mortgage loan, to foreclose on any such property or commence any action
to protect or enforce any right conferred upon it by any law, mortgage,
contract or other agreement, and to bid for and purchase such property
at any foreclosure or at any other sale, or acquire or take possession
of any such property; and in such event the agency may complete,
administer, pay the principal of and interest on any obligations
incurred in connection with such property, dispose of, and otherwise
deal with, such property, in such manner as may be necessary or
desirable to protect the interests of the agency therein;

13. To enter into agreements to pay annual sums in lieu of taxes to
any political subdivision of the state with respect to any real property
owned by the agency; provided, however, that the amount so paid for any
year upon any such property shall not exceed the sum last paid as taxes
on such property prior to the time of its acquisition by the agency;

14. To procure insurance against any loss in connection with its
property and other assets (including mortgages, mortgage loans and
federally guaranteed securities secured by such mortgage loans) in such
amounts, and from such insurers, as it deems desirable;

15. (a) Subject to the approval of the commissioner and to the
provisions of any contract with noteholders or bondholders, except with
any holders of hospital and nursing home project bonds or notes or youth
facilities project bonds or notes, or community mental health services
and developmental disabilities services project bonds or notes, whenever
it deems it necessary or desirable in the fulfillment of the purposes of
this article, to consent to the modification, with respect to rate of
interest, time of payment of any installment of principal or interest,
security, or any other term, of any mortgage, mortgage loan, mortgage
loan commitment, contract or agreement of any kind to which the agency
is a party, except such mortgages, mortgage loans, mortgage loan
commitments, contracts or agreements as may have been entered into with
hospital corporations which are eligible borrowers as defined in article
twenty-eight-B of the public health law, nursing home companies or
non-profit corporations which are eligible borrowers as defined in title
five-A of article six of the social services law or companies
incorporated pursuant to the not-for-profit corporation law and article
seventy-five of the mental hygiene law;

(b) Subject to the provisions of any contract with holders of hospital
and nursing home project bonds or notes, whenever it deems it necessary
or desirable in the fulfillment of the purposes of this article, to
consent to the modification, with respect to rate of interest, time of
payment of any installment of principal or interest, security, or any
other term of any mortgage, mortgage loan, mortgage loan commitment,
contract or agreement of any kind between the agency and a hospital
corporation which is an eligible borrower as defined in article
twenty-eight-B of the public health law or a nursing home company;

(c) Subject to the provisions of any contract with holders of youth
facilities project bonds or notes, whenever it deems it necessary or
desirable in the fulfillment of the purposes of this article, to consent
to the modification, with respect to rate of interest, time of payment
of any installment of principal or interest, security, or any other term
of any mortgage, mortgage loan, mortgage loan commitment, contract or
agreement of any kind between the agency and a non-profit corporation
which is an eligible borrower pursuant to title five-A of article six of
the social services law.

(d) Subject to the provisions of any contract with holders of
community mental health services and developmental disabilities services
project bonds or notes, whenever it deems it necessary or desirable in
the fulfillment of the purposes of this article, to consent to the
modification, with respect to rate of interest, time of payment of any
installment of principal or interest, security, or any other term of any
mortgage, mortgage loan, mortgage loan commitment, contract or agreement
of any kind between the agency and a company incorporated pursuant to
the not-for-profit corporation law and article seventy-five of the
mental hygiene law.

15-a. Subject to the provisions of any contract with holders of
community senior citizens services project bonds or notes, whenever it
deems it necessary or desirable in the fulfillment of the purposes of
this article, to consent to the modification, with respect to rate of
interest, time of payment of any installment of principal or interest,
security, or any other term of any mortgage, mortgage loan, mortgage
loan commitment, contract or agreement of any kind between the agency
and a company incorporated pursuant to the not-for-profit corporation
law and article seven-A of this chapter.

16. To accept any gifts or grants or loans of funds or property or
financial or other aid in any form from the federal government or any
agency or instrumentality thereof or from the state or from any other
source and to comply, subject to the provisions of this article, with
the terms and conditions thereof;

17. To engage the services of private consultants on a contract basis
for rendering professional and technical assistance and advice;

18. Subject to the approval of the commissioner of housing and
community renewal, to make equity loans to mutual companies, mutual
housing companies, mutual redevelopment companies, and housing
development fund companies which are corporations organized pursuant to
the business corporation law and article eleven of this chapter, in
amounts not to exceed the aggregate face value of home owners purchase
notes accepted by such mutual companies, mutual housing companies,
mutual redevelopment companies, or housing development fund companies,
as the case may be, as consideration for the issuance of shares pursuant
to the provisions of section nineteen of article two of this chapter,
section seventy-eight of article four of this chapter, section one
hundred eight of article five of this chapter, or subdivision four of
section five hundred seventy-three of article eleven of this chapter, as
the case may be; such loans shall be repaid over or within such period
and shall be secured in such manner as the agency shall require and the
commissioner shall approve.

19. Subject to the approval of the commissioner of health pursuant to
the provisions of article twenty-eight-A of the public health law, to
make mortgage loans to non-profit nursing home companies incorporated
pursuant to the provisions of article twenty-eight-A of the public
health law and the not-for-profit corporation law and to make mortgage
loans to limited-profit nursing home companies incorporated pursuant to
the provisions of article twenty-eight-A of the public health law and to
undertake commitments to make any such mortgage loans.

20. Subject to the approval of the commissioner, to purchase or to
contract to purchase from a mutual company, or from any shareholder
thereof, as the case may be, the shares appertaining to the dwellings
leased by it for the purposes set forth in section forty-four-a of this
article, to hold such shares or to sell or to contract to sell such
shares to the sublessees of the agency who are residents in such
dwellings, or to the designees of the mutual company. Such shares shall
be purchased or sold by the agency for the par value thereof. The terms
under which such shares may be sold, or be contracted to be sold shall
be subject to the approval of the commissioner. Shares owned by the
agency may not be voted.

21. Subject to the approval of the commissioner of social services
pursuant to the provisions of title five-A of article six of the social
services law, to make mortgage loans to non-profit corporations which
are eligible borrowers pursuant to the provisions of the aforesaid title
five-A and to undertake commitments to make any such mortgage loans.

21-a. Subject to the approval of the commissioner of social services
of the state of New York pursuant to the provisions of article seven-A
of this chapter, to make mortgage loans to companies incorporated
pursuant to the provisions of such article and the not-for-profit
corporation law and to undertake commitments to make any such mortgage
loans.

22. Subject to the approval of the commissioner of mental hygiene
pursuant to the provisions of article seventy-five of the mental hygiene
law, to make loans to companies incorporated pursuant to the provisions
of article seventy-five of the mental hygiene law and the not-for-profit
corporation law and to undertake commitments to make any such mortgage
loans. No such loan or commitment made on or after June first, nineteen
hundred eighty-two, shall be made primarily for a purpose other than the
refinancing of existing indebtedness pursuant to subdivision four of
section 75.05 of the mental hygiene law.

23. Subject to the approval of the commissioner of health pursuant to
the provisions of article twenty-eight-B of the public health law, to
make mortgage loans to hospital corporations which are eligible
borrowers as defined in article twenty-eight-B of the public health law
and to undertake commitments to make any such mortgage loans.

24. To contract with the state of New York municipal bond bank agency
to render such services as the agency may deem appropriate, including
but not limited to the use of the premises, personnel and personal
property of the agency and to charge the reasonable costs thereof and
provide for the reimbursement to the agency for any expenses necessarily
incurred by the agency in carrying out the terms of such contract. Any
such contract shall be subject to the separate approval of the director
of the budget.

25. To contract with the New York state medical care facilities
finance agency to market and service any New York state medical care
facilities finance agency bonds and New York state medical care
facilities finance agency notes approved by the New York state medical
care facilities finance agency, and to contract to render such other
services as the New York state medical care facilities finance agency
may request, including but not limited to the use of the premises,
personnel and personal property of the agency, and to provide for
reimbursement to the agency from the New York state medical care
facilities finance agency for any expenses necessarily incurred by the
agency in carrying out the terms of any such contract. Any such contract
shall be subject to the separate approval of the director of the budget.

26. To contract with the New York state project finance agency to
market and service any New York state project finance agency bonds and
New York state project finance agency notes approved by the New York
state project finance agency, and to contract to render such other
services as the New York state project finance agency may request,
including but not limited to the use of the premises, personnel and
personal property of the agency, and to provide for reimbursement to the
agency from the New York state project finance agency for any expenses
necessarily incurred by the agency in carrying out the terms of any such
contract. Any such contract shall be subject to the separate approval of
the director of the budget.

27. To contract with the New York state urban development corporation
to market and service any New York state urban development corporation
bonds and New York state urban development corporation notes approved by
the New York state urban development corporation and to contract to
render such other services as the New York state urban development
corporation may request, including but not limited to the use of the
premises, personnel and personal property of the agency, and to provide
for reimbursement to the agency from the New York state urban
development corporation for any expenses necessarily incurred by the
agency in carrying out the terms of any such contract. Any such contract
shall be subject to the separate approval of the director of the budget.

28. To participate in federal programs for the insurance of mortgage
loans including programs which require the agency to share any loss
arising out of any mortgage loan insured by the federal government,
provided that the agency's share of any such loss shall not exceed fifty
percent thereof.

28-a. To acquire and enter into commitments to acquire any federally
guaranteed security to finance the making of mortgage loans pursuant to
section forty-four-c of this article and to pledge or otherwise use any
such federally guaranteed security in such manner as the agency deems in
its best interest to secure or otherwise provide a source of repayment
on bonds issued to finance the making of such mortgage loans.

29. To do any and all things necessary or convenient to carry out its
purposes and exercise the powers expressly given and granted in this
article.

* 29-a. (1) Subject to the provisions of any contract with noteholders
and bondholders (a) to make and contract for the making of loans for the
acquisition, construction or rehabilitation of housing developments for
the purpose of providing residential units for occupancy by persons and
families for whom the ordinary operations of private enterprise cannot
provide an adequate supply of safe, sanitary and affordable housing
accommodations or for residential units located in an area designated as
blighted pursuant to article fifteen or sixteen of the general municipal
law, and (b) to make and to contract for the making of loans to or to
purchase loans from lending institutions for the purpose of financing
loans for such acquisition, construction or rehabilitation. No loans may
be financed pursuant to this subdivision unless the agency finds that
portions of the housing developments are to be occupied by persons or
families of low or moderate income. In determining whether the portions
of housing developments will be so occupied, the agency may consider and
rely upon the fact that the housing developments will be occupied by
persons and families in accordance with requirements for the interest on
obligations issued to finance them to be exempt from taxation pursuant
to section 103(b)(3) or 103(b)(4)(A) of the Internal Revenue Code of
1954, as amended.

(2) With regard to any loan made pursuant to this subdivision and
notwithstanding the provisions of, or any regulation promulgated
pursuant to, the emergency housing rent control law, the local emergency
housing rent control act, or local law enacted pursuant thereto, the
rent stabilizaton law of nineteen hundred sixty-nine, or the emergency
tenant protection act of nineteen seventy-four, the owner of a housing
development otherwise subject to any such law or act, with the approval
of the agency, may establish the initial rent for each dwelling unit
within the project. If the initial rents are to be established pursuant
hereto, the agency shall notify occupants of the housing development, if
any, of any such proposed rental establishment and offer to meet at
least once with the occupants prior to its approval.

(3) The powers granted by this subdivision may be exercised only if
(a) obligations of the agency have been issued to fund the loan made or
purchased by the agency and such obligations have received an investment
grade rating from a recognized rating agency; (b) the loan made or
purchased by the agency is fully secured as to principal and interest by
insurance or a commitment to insure issued by the state of New York
mortgage agency or by the general credit of a bank, national bank, trust
company, savings bank, savings and loan association, insurance company,
governmental agency of the United States, or any combination thereof; or
(c) obligations of the agency are purchased by a bank, national bank,
trust company, savings bank, savings and loan association, insurance
company, governmental agency of the United States, which for purposes of
this subdivision, include the federal home loan mortgage corporation,
the federal national mortgage association, the governmental national
mortgage association, and any successor of the foregoing, or any
wholly-owned subsidiary or combination thereof.

* NB Repealed July 23, 2023

29-b. To carry out its powers and responsibilities with respect to
permanent housing projects for homeless families as provided for in
article three-A of this chapter.

30. (1) Subject to the provisions of any contract with noteholders and
bondholders (a) to make and contract for the making of loans for the
acquisition, refinancing, construction or rehabilitation of housing and
non-profit health facilities and (b) to make and to contract for the
making of loans to or to purchase loans from lending institutions for
the purposes of financing loans for such acquisition, construction or
rehabilitation.

(2) The powers granted by this subdivision may be exercised only if:
(a) the commissioner of health has approved any health and health
related facilities which are in addition to the residential unit and
housing portion of the facility, pursuant to section twenty-eight
hundred two of the public health law in any case where the facility is
subject to the provisions of such section or has approved the facility
according to the guidelines prescribed in any other case; (b) with
respect to any portion thereof owned by a for profit owner, the agency
makes the finding required to finance housing developments under
paragraph one of subdivision twenty-nine-a of this section; (c) (i)
obligations of the agency have been issued to fund the loan made or
purchased by the agency and such obligations have received an investment
grade rating from a recognized rating agency, or (ii) the loan made or
purchased by the agency is fully secured as to principal and interest by
insurance or a commitment to insure issued by the state of New York
mortgage agency or by the general credit of a bank, national bank, trust
company, savings bank, savings and loan association, insurance company,
the college construction loan insurance association, the student loan
marketing association, or a governmental agency of the United States;
and (d) approval from the applicable state agencies as to the need for
the project has been obtained prior to joint financing.

31. To and shall develop, promote and ensure that, where possible,
minority groups which traditionally have been disadvantaged, and women
are afforded equal opportunity for contracts in connection with
development and construction contracts for developments, facilities and
projects financed by the issuance of bonds, notes and other obligations
of the agency.

32. To transfer funds in an amount to be agreed upon, at the request
of the director of the division of the budget, to the state treasury for
deposit to the general fund as an expense of the agency. Such transfer
shall be made in such amounts and at such times as specified in an
agreement or agreements executed between the agency and the director of
the budget with copies to be provided to the chairman of the assembly
ways and means committee and the chairman of the senate finance
committee.