STATE OF NEW YORK
LEP
Print. 5210 Intro. 4916
IN ASSEMBLY _
: F frre
February 20, 1962 | } > pp
Py I,
Introduced by Mr. CURTO—read once and referred to the 4) f 4 A >
Committee on Ways and Means pes 7:
To amend the private housing finance law, in relation to a ay Fa
ee?
| J
izing mutual limited-profit housing companies to construct
housing with loans not exceeding ninety-five per centum h Mere x
of the project cost ay
Ay 3
The People of the State of New York, represented in Senate’ and ) ey ,
Assembly, do enact as follows: 7. | Y
Section 1. Section twelve of the private housing finance law is _ ,
a. ,
2 hereby amended by adding thereto a new subdivision, to be sub-
8 division two-a, to read as follows:
ss
4 2-a. “‘Mutual company.’’ A company operated _— for, WP” /
5 the benefit of the persons or families who are entitled to oceupancy
6 in a project of such company by reason of gare. of stock in
7 such company. 9 \ a
§ 2. Subdivision ten of section thirteen of such law is hereby
9 amended to read as follows:
EXPLANATION — Matter in étalics is new; matter in brackets [ ] is old law to be omitted.
SoS =
a
2
10. That the entire amount to be paid in cash or property by
the stockholders and income debenture holders shall be at least ten
per centum of the project cost, except that such amount shall be at
least five per centum of the project cost in the case of a mutual
company.
§ 3. Section twenty-one of such law is hereby amended to read
as follows:
§ 21. Capital structure. The capital structure of a company
undertaking a project and the proportionate amount of the project
cost to be represented by mortgages, bonds, notes, income deben-
tures and stock shall be subject to the approval of the commissioner
except as otherwise provided in section twenty-three with respect to
a municipally-aided project. [In no event shall the] The stock
and income debentures issued by the company shall not be less than
the total of ten per centum of the project cost, except that such
total shall not be less than five per centum of the project cost in
the case of a mutual company. The stock, bonds or notes, income
debentures and mortgages covering any project shall not exceed
the actual project cost.
§ 4. Subdivision two of section twenty-two of such law is hereby
amended to read as follows:
2. Loans by the state under such a contract shall be secured by
first mortgage lien, and no such loan shall be made in an amount
ereater than ninety per centum of the total project cost, except
that in the case of a mutual company such loans shall not be made
in an amount greater than ninety-five per centum of the total
project cost. Notwithstanding any other provisions of law, if the
3
company proposes to sell or convey any part or parts of the mort-
gaged premises prior to the sale by the state of the definitive bonds
providing the funds for the state loan, the comptroller, upon the
application of the company and with the prior written consent of
the commissioner, may release from the first mortgage lien any
part or parts of the mortgaged premises not acquired through con-
demnation and not required for the project, provided that any net
proceeds from the sale or conveyance of the said property will be
held by the company for the sole purpose of reducing, in accord-
ance with the requirements of the commissioner and comptroller,
the principal amount of the state loan outstanding, and provided
further that the unpaid principal amount of the state loan out-
standing, and provided further that the unpaid principal amount
of the state loan then outstanding, as it may be reduced by the net
proceeds, if any, derived from the sale or conveyance, would not
be in an amount greater than ninety per centum of the total project
cost, except that in the case of a mutual company such amount shall
not be greater than ninety-five per centum of the total project cost.
The comptroller shall execute such release in the usual form, which,
when acknowledged, shall be recorded by the county clerk and a
minute thereof made upon a margin of the mortgage.
§ 5. Subdivision one of section twenty-three of such law is hereby
amended to read as follows:
1. A municipality may make or contract to make loans to a
company in an amount not to exceed, except in the case of a mutual
company, ninety per centum of the project cost to be secured by a
first mortgage lien and may make temporary loans or advances
ao fF WO WD
4
to a company in anticipation of a permanent municipal loan. In
the case of a mutual company such loans may not exceed ninety-five
per centum of the total project cost. Such mortgage, or bonds or
notes secured thereby and such contract may contain such terms
and conditions not inconsistent with the provisions of this article
as the local legislative body may deem necessary or desirable to
secure repayment of its loan, the interest thereon and other charges
in connection therewith.
§ 6. Subdivision three of section forty-two of such law is hereby
amended to read as follows:
3. ‘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 the loan
shall not exceed ninety-five per centum of the 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 or operation, or both, of the
project. ‘‘Company,’’ ‘‘mutual company,”’ ‘‘nroject cost’? and
‘‘project’’ shall mean company, mutual company, project cost and
project, respectively, as defined in article two of this chapter.
§ 7. This act shall take effect May first, nineteen hundred sixty-
two.
SiATE OF KNEW YOR
PRC ee
EER.
3d Rdg. 955 Print. sig se) Intro. 4916
IN ASSEMBLY,
ny
February 20, 1962 A | AA4
A : f
{j
Introduced by Mr. CURTO—read once and referred to the Com-
mittee on Ways and Means—reported from committee, advanced 4
to a third reading, amended and ordered reprinted, retaining its yy
place on the order of third reading ima oil
A ,
YS aes °F eile
AN ACT 7}, , go"
To amend the private housing finance law, in Vide
izing mutual limited-profit housing compari es to construct
housing with loans not exceeding ninety-five per centum
of the project cost |
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
1 Section 1. Section twelve of the private housing finance law is
9 hereby amended by adding thereto a new subdivision, to be =
9 division two-a, to read as follows:
4 2a. “‘Mutual company.’’ A company operated exclusively for
5 the benefit of the persons or families who are entitled to occupancy
g ima project of such company by reason of ownership of stock in
7 such company.
g § 2. Subdivision ten of section thirteen of such law is hereby
g amended to read as follows:
EXPLANATION — Matter in italics is new; matter in brackets [ ] is old law to be omitted.
2
2
10. That the entire amount to be paid in cash or property by
the stockholders and income debenture holders shall be at least ten
per centum of the project cost, except that such amount shall be at
least five per centum of the project cost in the case of a mutual
company.
§ 3. Section twenty-one of such law is hereby amended to read
as follows:
§ 21. Capital structure. The capital structure of a company
undertaking a project and the proportionate amount of the project
cost to be represented by mortgages, bonds, notes, income deben-
tures and stock shall be subject to the approval of the commissioner
except as otherwise provided in section twenty-three with respect to
a municipally-aided project. [In no event shall the] The stock
and income debentures issued by the company shall not be less than
the total of ten per centum of the project cost, except that such
total shall not be less than five per centum of the project cost in
the case of a mutual company. The stock, bonds or notes, income
debentures and mortgages covering any project shall not exceed
the actual project cost.
§ 4. Subdivision two of section twenty-two of such law, as
amended as section three hundred eleven of the public housing
law, by chapter six hundred ninety-two of the laws of nineteen
hundred sixty-one, is hereby amended to read as follows:
9. Loans by the state under such a contract shall be secured by
first mortgage lien, and no such loan shall be made in an amount
greater than ninety per centum of the total project cost, except
that in the case of a mutual company such loans shall not be made
3
: 1 in an amount greater than ninety-five per centum of the total
2 project cost. Notwithstanding any other provisions of law, if the
3 company proposes to sell or convey any part or parts of the mort-
4 gaged premises prior to the sale by the state of the definitive bonds
9 5 providing the funds for the state loan, the comptroller, upon the
6 application of the company and with the prior written consent of
7 the commissioner, may release from the first mortgage lien any
8 part or parts of the mortgaged premises not acquired through con- |
9 demnation and not required for the project, provided that any net
10 proceeds from the sale or conveyance of the said property will be
11 held by the company for the sole purpose of reducing, in accord-
12 ance with the requirements of the commissioner and comptroller,
13 the principal amount of the state loan outstanding, and provided
14 further that the unpaid principal amount of the state loan then
15 outstanding, as it may be reduced by the net proceeds, if any,
16 derived from the sale or conveyance, would not be in an amount
17 greater than ninety per centum of the total project cost, except
18 that in the case of a mutual company such amount shall not be
19 greater than ninety-five per centum of the total project cost.
20 The comptroller shall execute such release in the usual form, which,
21 when acknowledged, shall be recorded by the county clerk and a
minute thereof made upon a margin of the mortgage.
§ 5. Subdivision one of section twenty-three of such law is hereby
@ 24 amended to read as follows:
1. A municipality may make or contract to make loans to a
company in an amount not to exceed, except in the case of a mutual
company, ninety per centum of the project cost to be secured by a
4
first mortgage lien and may make temporary loans or advanees
to a company in anticipation of a permanent municipal loan. In
the case of a mutual company such loans may not exceed ninety-fwe
per centum of the total project cost. Such mortgage, or bonds or
notes secured thereby and jack contract may contain such terms
and conditions not inconsistent with the provisions of this article
as the local legislative body may deem necessary or desirable to
secure repayment of its loan, the interest thereon and other charges
in connection therewith.
§ 6. Subdivision three of section forty-two of such law is hereby
~
amended to read as follows:
3. ‘‘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 the loan
shall not exceed ninety-five per centum of the project cost, and
secured by a first mortgage lien on the rea] property of which the
project consists and the personal property attached to or used in
connection with the ieieeeibien or operation, or both, of the
project. ‘‘Company,’’ ‘‘mutual company,’’ ‘‘project cost’’ and
‘‘nroject’’ shall mean company, mutual company, project cost and
project, respectively, as defined in article two of this chapter.
§ 7. This act shall take effect May first, nineteen hundred sixty-
two.
STATE OF NEW 7 ORR
3d Rdg. 955 Print. 5210, 5752, 5917 Antro. 4916
IN ASSEMBLY
February 20, 1962
Introduced by Mr. CURTO—read once and referred to the Com-
mittee on Ways and Means—reported from committee, advanced
to a third reading, amended and ordered reprinted, retaining its
place on the order of third reading—again amended on third
reading, ordered reprinted, retaining its place on the order of
third reading and re-engrossed “ P ! \ l¢ 4
peer «oye
e
To amend the private housing finance law, in relation to author- yy, (
izing mutual limited-profit housing companies to construct // 2
housing with loans not exceeding ninety-five per centum
of the project cost
The People of the State of New York, represented in Senate and
Assembly, do enact as follows:
1 Section 1. Section twelve of the private housing finance law is
2 hereby amended by adding thereto a new subdivision, to be sub-
8 division two-a, to read as follows:
4 9-a. ‘‘Mutual company.’’? A company operated exclusively for
5 the benefit of the persons or families who are entitled to occupancy
6 in a project of such company by reason of ownership of stock in
7 such company.
8 § 2. Subdivision ten of section thirteen of such law is hereby
&
9 amended to read as follows:
Exriaxation — Matter in italics is new; matter in brackets [{ ] is old law to be omitted.
L
: i ea
4 t
» 4
F SF
me
y
26
27
2
10. That the entire amount to be paid in cash or property by
the stockholders and income debenture holders shall be at least ten
per centum of the project cost, except that such amount shall be at
least five per centum of the project cost in the case of a mutual
company. The provisions of this subdivision shall not apply to a
non-profit company incorporated pursuant to the provisions of
the membership corporations law and this article for the purpose
of providing housing for staff members or employees of a hospital
and ther immediate family or for aged persons of low income.
§ 3. Section twenty-one of such law is hereby amended to read
as follows:
§ 21. Capital structure. The capital structure of 4 company
undertaking a project and the proportionate amount of the project
cost to be represented by mortgages, bonds, notes, income deben-
tures and stock shall be subject to the approval of the commissioner
except as otherwise provided in section twenty-three with respect to
a municipally-aided project. [In no event shall the] The stock
and income debentures issued by [the] a company other than a
non-profit company incorporated pursuant to the provisions of the
membership corporations law and this article for the purpose of
providing housing for staff members or employees of a hospital and
their immediate family or for aged persons of low income shall not
be less than the total of ten percentum of the project cost, except
that such total shall not be less than five per centum of the project
cost in the case of a mutual company. The stock, bonds or notes,
income debentures and mortgages covering any project shall not
exceed the actual project cost.
3
1 § 4 Subdivision two of section twenty-two of such law, as
9 amended as section three hundred eleven of the public housing
3 law, by chapter six hundred ninety-two of the laws of nineteen
4 hundred sixty-one, is hereby amended to read as follows:
5 2. Loans by the state under such a contract shall be secured by
6 first mortgage lien, and no such loan shall be made in an amount
7 greater than ninety per centum of the total project cost, except
8 that in the case of a mutual company or a non-profit company im-
9 corporated pursuant to the provisions of the membership corpora-
10 tions law and this article for the purpose of providing housing for
11 staff members or employees of a hospital and ther immediate
12 family or for aged persons of low income such loans shall not be
18 made in an amount greater than ninety-five per centum of the total
14 project cost. Notwithstanding any other provisions of law, if the
15 company proposes to sell or convey any part or parts of the mort-
16 paged premises prior to the sale by the state of the definitive bonds
17 providing the funds for the state loan, the comptroller, upon the
18 application of the company and with the prior written consent of
19 the commissioner, may release from the first mortgage lien any
20 part or parts of the mortgaged premises not acquired through con-
21 demnation and not required for the project, provided that any net
22 proceeds from the sale or conveyance of the said property will be
© 23 held by the company for the sole purpose of reducing, in accord-
24 ance with the requirements of the commissioner and comptroller,
25 the principal amount of the state loan outstanding, and provided
further that the unpaid principal amount of the state loan then
outstanding, as it may be reduced by the net proceeds, if any,
1
2
3
4
5
6
7
8
9
10
1]
12
13
14
15
16
17
18
19
20
21
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4
derived from the sale or conveyance, would not be in an amount
greater than ninety per centum of the total project cost, except
that im the case of a mutual company or a non-profit company in-
corporated pursuant to the provisions of the membership corpora-
tions law and this article for the purpose of providing housing
for staff members or employees of a hospital and their immediate
family or for aged persons of low income such amount shall not be
greater than ninety-five per centum of the total project cost.
The comptroller shall execute such release in the usual form, which,
when acknowledged, shall be recorded by the county clerk and a
minute thereof made upon a margin of the mortgage.
§ 5. Subdivision one of section twenty-three of such law is hereby
amended to read as follows:
1. A municipality may make or contract to make loans to a
company in an amount not to exceed, except in the case of a mutual
company, or a non-profit company incorporated pursuant to the
provisions of the membership corporations law and this article for
the purpose of providing housing for staff members or employees
a hospital and their immediate family or for aged persons of low
imcome ninety per centum of the project cost to be secured by a
first mortgage lien and may make temporary loans or advances
to a company in anticipation of a permanent municipal loan. In
' the case of a mutual company or a non-profit company incorporated
pursuant to the provisions of the membership corporations law and
this article for the purpose of providing housing for staff members
or employees of a hospital and their immediate family or for aged
persons of low income such loans may not exceed ninety-five
23
24
5
per centum of the total project cost. Such mortgage, or bonds or
notes secured thereby and such contract may contain such terms
and conditions not inconsistent with the provisions of this article
as the local legislative body may deem necessary or desirable to
secure repayment of its loan, the interest thereon and other charges
in connection therewith.
§ 6. Subdivision three of section forty-two of such law is hereby
amended to read as follows:
3. ‘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 or a non-
profit company incorporated pursuant to the provisions of the
membership corporations law and this article for the purpose of
providing housing for staff members or employees of a hospital and
their immediate family or for aged persons of low income the loan
shall not exceed ninety-five per centum of the 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 or operation, or both, of the
project. ‘‘Company,’’ ‘‘mutual company,’’ ‘‘project cost’’ and
‘*project’’ shall mean company, mutual sompany, project cost and
project, respectively, as defined in article two of this chapter.
§ 7. This act shall take effect May first, nineteen hundred sixty-
two.
STATE OF NEW YORK
dee. 3 Sa eee SRS Me
Print. 5211 Intro. 4917
IN ASSEMBLY a AJ
Sept ta: Ay He Haass (2
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ere
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Introduced by Mr. CURTO—read once and referred to the
Committee on Ways and Means ne
CONCURRENT RESOLUTION OF THE SENATE AND A PA
Proposing amendments to sections one, two, four, six and
ten of article eighteen of the constitution, in relation to
the powers of the legislature in aid of housing, urban renewal
programs, and rehabilitation and improvement of substandard
€ ae
dwellings and in relation to the contracting of municipal eph 7 { b
indebtedness for such purposes om iT - iv. : 4 |
1 Section 1. Resolved (if the Senate concur), that Aotibns one, A
2 two, four, six and ten of article eighteen of the constitution be we ¥
8 amended to read, respectively, as follows: 2|\ ee ‘ Be : ’ ; b 4
4. Section 1. Subject to the provisions of this artiele, the legislature 7 \\ 7
5 may provide in such manner, by such means and upon such terms t- ,
6 and conditions as it may prescribe for (1) [low rent] housing for ~~ 7 /
7 persons [of low income as defined by law, or for the clearance, YP A bt
8 replanning, reconstruction and rehabilitation of substandard and i”
7”
9 insanitary areas] whose housing needs cannot be met by the unaided
10 operations of private enterprise, as determined by law, including
EXPLANATION — Matter in italics is new; matter in brackets [ ] is old law to be omitted.
- co kb
26
27
2
such clearance, replanning, reconstruction and rehabilitation of sub-
standard and insanitary areas as may be related thereto; or (2) urban
renewal programs, as defined by law, including clearance, replan-
ning, reconstruction, rehabilitation, renewal, redevelopment, con-
servation or improvement of slum, blighted, deteriorated or detert-
orating areas, or any combination thereof ; or (3) rehabilitation and
improvement of substandard dwellings where it has been deter-
mined by law that such rehabilitation and improvement cannot be
accomplished by the unaided operations of private enterprise, or
for [both] any one or more of such purposes, and for recreational
and other facilities incidental or appurtenant thereto.
§ 2. For and in aid of such purposes, notwithstanding any pro-
vision in any other article of this constitution, but subject to the
limitations contained in this article, the legislature may: make or
contract to make or authorize to be made or contracted capital or
periodic subsidies by the state to any city, town, village, or public
corporation, payable only with moneys appropriated therefor from
the general fund of the state; authorize any city, town or village
to make or contract to make such subsidies to any public corpora-
tion, payable only with moneys locally appropriated therefor from
the general or other fund available for current expenses of such
municipality; authorize the contracting of indebtedness for the
purpose of providing moneys out of which it may make or contract
to make or authorize to be made or contracted loans by the state to
any city, town, village or public corporation; authorize any city,
town or village to make or contract to make loans to any public
corporation; authorize any city, town or village to guarantee the
m wi b&b * ef
3
principal of and interest on, or only the interest on, indebtedness
contracted by a public corporation; authorize and provide for
loans by the state and authorize loans by any city, town or village
to or in aid of (a) corporations regulated by law as to rents, profits,
dividends and disposition of their property or franchises and
engaged in providing housing facilities[[; authorize any city, town
or village to make loans to] and (b) the owners of [existing mul-
tiple] substandard dwellings for the rehabilitation and improve-
ment thereof [for occupancy by persons of low income as defined
by law]; grant or authorize tax exemptions in whole or in part,
except that no such exemption may be granted or authorized for a
period of more than sixty years; authorize cooperation with and
the acceptance of aid from the United States; grant the power of
eminent domain to any city, town or village, to any public corpo-
ration and to any corporation regulated by law as to rents, profits,
dividends and disposition of its property or franchises and engaged
in providing housing facilities.
As used in this article, the term ‘‘public corporation’’ shall
mean any corporate governmental agency (except a county or
municipal corporation) organized pursuant to law to accomplish
any or all of the purposes specified in this article.
§ 4. To effectuate any of the purposes of this article, the legisla-
ture may authorize any city, town or village to contract indebted-
ness to an amount which shall not exceed two per centum of the
average [assessed] full valuation of the taxable real estate of such
city, town or village [subject to taxation], as determined [by the
last completed assessment roll and the four preceding assessment
ee eee
4
1 rolls of such city, town or village, for city, town or village taxes
» prior to the contracting of such indebtedness] in the manner pre-
scribed in article eight of this constitution. In ascertaining the
power of a city, town or village [having a population of five thou-
sand or more as determined by the last federal census,] to contract
3
ay
5
g indebtedness pursuant to this article there may be excluded (a)
7 any such indebtedness if the project or projects aided by guaran-
g tees representing such indebtedness or by loans for which such
§ indebtedness was contracted shall have yielded during the preced-
1Q ing year net revenue to be determined annually by deducting from
41 the gross revenues, including periodic subsidies therefor, received
12 from such project or projects, all costs of operation, maintenance,
13 repairs and replacements, and the interest on such indebtedness
14. and the amounts required in such year for the payment of such
15 indebtedness; provided that in the case of guarantees such interest
16 and such amounts shall have been paid, and in the case of loans
17 an amount equal to such interest and such amounts shall have been
18 paid to such city, town or village; and (b) certificates or other
19 evidences of such indebtedness issued in anticipation of the receipt
20 of moneys in connection with any urban renewal program or part
21 thereof (1) from the sale of real property, or any interest therein,
22, acquired for or incidental to an urban renewal program, or (2)
93 from the United States government, or (3) from the state of New
24 York, or from any or all of such sources; excepting any such cer-
25 tificates or other evidences of indebtedness or renewals thereof
26 which are not retired sitihin ten years after their date of original
27 issue. The legislature shall prescribe the method by which the
_—_
oe os nana 2 co & BF WW
a
— ©
ee ee ee ee
A RS ~~ ee es ~
5
amount of any [such] indebtedness to be excluded under (a) above
shall be determined, and no [such] indebtedness shall be excluded
thereunder except in accordance with such determination[. The];
and the legislature may confer appropriate jurisdiction on the
state comptroller, or the appellate division of the supreme court in
the judicial departments in which such cities, towns or villages are
located, for the purpose of determining the amount of any [such]
indebtedness to be [so] excluded thereunder.
The liability of a city, town or village on account of any contract
for capital or periodic subsidies to be paid subsequent to the then
current year shall, for the purpose of ascertaining the power of
such city, town or village to contract indebtedness, be deemed
indebtedness in the amount of the commuted value of the total of
such capital or periodic subsidies remaining unpaid, calculated on
the basis of an annual interest rate of four per centum. Such
periodic subsidies shall not be contracted for a period longer than
the life of the projects assisted thereby, and in no event for more
than sixty years. Indebtedness contracted pursuant to this article
shall be excluded in ascertaining the power of a city, town or [such]
village otherwise to create indebtedness under any other section of
this constitution. Notwithstanding the foregoing the legislature
shall not authorize any city, town or village [having a population
of five thousand or more] to contract indebtedness hereunder in
excess of the limitations prescribed by any other article of this
constitution unless at the same time it. shall by law require such
city, town or village to levy annually a tax or taxes other than an ad
valorem tax on real estate to an extent sufficient to provide for
6
1 the payment of the principal of and interest on any such indebted-
2 ness. Nothing herein contained, however, shall be construed to
8 prevent such city, town or village from pledging its faith and
4 credit for the payment of such principal and interest nor shall any
5 such law prevent recourse to an ad valorem tax on real estate to
6 the extent that revenue derived from such other tax or taxes in
7 any year, together with revenues from the project or projects aided
8 by the proceeds of such indebtedness, shall become insufficient to
9 provide fully for payment of such principal and interest in that
10 year.
11‘ § 6. No loan or subsidy shall be made by the state to aid any
12 project unless such project is in conformity with a plan or under-
13 taking [for the clearance, replanning and reconstruction or
14 rehabilitation of a substandard and insanitary area or areas and
15 for recreational and other facilities incidental or appurtenant
16 thereto] consistent with the purposes set forth in section one of
17 this article. The legislature may provide additional conditions to
18 the making of such loans or subsidies consistent with [the] such
19 purposes [of this article]. The occupancy of any [such] housing
20 project shall be restricted Lio persons of low income as defined by
law] consistent with the purposes set forth in section one of this
article and preference in occupancy thereof shall be given to per-
sons who live or shall have lived in [in such] the project area [or
24 areas J.
25 § 10. The legislature is empowered to make all laws which it
26 shall deem necessary and proper for carrying into execution the
av foregoing powers. This article shall be construed as extending
7
powers which otherwise might be limited by other articles of this
constitution and shall not be construed as imposing additional limi-
tations; but nothing in this article contained shall be deemed to
authorize or empower the state, or any city, town, village or public
corporation, to engage in any private business or enterprise other
than [the building and operation of low rent dwelling houses for
persons of low income as defined by law, or the loaning of money
to owners of existing multiple dwellings as herein provided] as
authorized by or pursuant to this article.
§ 2. Resolved (if the Senate concur), That the foregoing amend-
ments be referred to the first regular legislative session convening
after the next succeeding general election of members of the assem-
bly, and, in conformity with section one of article nineteen of the
constitution, be published for three months previous to the time of
such election.
Puxpose of Bill:
7 cae
a : : " _ > | ;
Lk oie » YY Y We a <! ‘ ois sn ib.
BILL 72
MEMORANDUM
finance law, in relation to
authorizing mutual LlLimited- e
profit housing companies to &
construct -housing with loans —
not exceeding ninety-five per
centum of the project cost
RE:
AN ACT to amend the private housing Cr.
Lu) *
To reduce the initial investment required for the purchase
of middie-income cooperative apartments by decreasing the amount of
the equity investment required in mutual limited<profit housing
companies from 10% to 5% of project cost,
Summary of P
ewes ow 3 oe
rovisions of Bill:
This bill would:
(1) Provide that loans by the State, by a municipality or
by the New York State Housing Finance Agency to a mutual company ,
defined as a limited-profit housing company operated exclusively for
the benefit of persons or families entitied to occupancy by reason
of stock owmership, may be made in amounts up to 95% of project cost.
The present limit is 90%; and
(2) Provide that the amount to be paid in cash or property
by the stocixholders
and income debenture holders, in the case of a
mutual company, shall be at least 5%, The present requirement is
10%.
ustification for Bill:
se ental
Thousands of financially reliable families have been
barred from privately sponsored cooperative middle-income housing
through inability to raise enough cash to make the required down
payment upon purchase,
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VA
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This initial investment is often as high as $2500, depending
upon the size of the apartment purchased,
Under this bill, the required down payment could be cut in
half for apartments in any limited-profit cooperative undertaking
95% loan-to-projectecost financing.
Under a companion bill, enabling the New York State Housing
Finance Agency to implement the Home Owmers Purchase #ndorsement
(HOPE) program, non-profit H.F.A.-financed limited profit housing
companies would be
$200 per apartment.
able to reduce the cash down payment to as low as
Both bills will enable thousands of families, presently
barred from privately~-sponsored middle-income cooperative developments,
because they cannot raise the requisite cash down payment, but who
are nevertheless financially reliable, to take advantage of the
rapidly expanding
middle-income housing programs in New York State.
MNOrett ~~ ae
PROGRAM
BILL 7
AN ACT to amend the private housing
finance law, in relation to
authorizing mutual limited-
profit housing comsanies to
construct housing with loans
not exceeding ninety-five per
centum of the project cost
The People of the State of New York, represented in
Senate and Assembly, do enact as follows:
Section 1. Section tweive of the private housing
finance law is hereby amended by adding thereto a new subdivision,
to be subdivision two-a, to read as follows:
2-ae ‘Mutual company." A company operated exclusively
for the benefit of the persons or families who are entitled to
occupancy in a project of such company by reason of ownership of
Stock in such company,
§ 2, Subdivision ten of section thirteen of such law
is hereby amended to read as follows:
10, That the entire amount to be paid in cash or
property by the stockholders and income debenture holders shali
be at least ten per centum of the project cost, except that such
amount shall be at least five per centum of the project cost in
the case of a mutual company a
§ 3, Section twenty-one of such law is hereby amended
to read as follows:
§ 21, Capital structure, ‘The capitel structure of a
company undertaxing a project and the proportionate amount of the
project cost to be represented by mortgages, bonds, notes, income
debentures and stock shall be subject to the approval of the
commissioner except as otherwise provided in section twenty-three
with respect to a municipally~aided project. [In no event shall
the] The stock and income debentures issued by the company shall
not be less than the total of ten per centum of the project cost,
ude
except that such total shall not be less than five per centum of
the project cost in the case of a mutual company. The stock, bonds
or notes,income debentures and mortgages covering any project shail
not exceed the actual project cost,
§ 4. Subdivision two of section twenty-two of such law
is hereby amended to read as follows:
2. Loans by the state under such a contract shall be
secured by first mortgage lien, and no such loan shall be made in
an amount greater than ninety per centum of the total project cost,
except that in the case of a mutual company such loans shall not
be made in an amount greater than ninety~five per centum of the
total project cost. Notwithstanding any other provisions of law,
if the company proposes to sell or convey any part or parts of the
mortgaged premises prior to the sale by the state of the definitive
bonds providing the funds for the state loan, the comptroller, upon
the application of the company and with the prior written consent
of the commissioner, may release from the first mortgage lien any
part or parts of the mortgaged premises not acquired through con-
demnation and not required for the project, provided that any net
proceeds from the sale or conveyance of the said property will be
heid by the company for the sole purpose of reducing, in accordance
with the requirements of the commissioner and comptroller, the
principal amount of the state loan outstanding, and provided
further that the unpaid principal amount of the state loan then
outstanding, as it may be reduced by the net proceeds, if any,
derived from the sale or conveyance, would not be in an amount
greater than ninety per centum of the total project cost, except
that in the case of a mutual company such amount shail not be
greater than ninety-five per centum of the total project cost, The
comptroller shall execute such release in the usual form, which,
when acknowledged, shall be recorded by the county clerk and a
minute thereof made upon a margin of the mortgage,
§ 5. Subdivision one of section twenty-three of such law
is hereby amended to read as follows:
1. A municipality may make or contract to make loans to
a&@ company in an amount not to exceed, except in the case of a
mutual comvany, ninety per centum of the project cost to be secured
oy a first mortgage lien and may make temporary loans or advances
tc a company in anticipation cf a permanent municipal ioan, In the
es CO ee
ch loans may not exceed ninety-five per
case cf a mutual company su
centum cf the total proiect cost, Such mortgage, or bonds or notes
secured thereby and such contract may contain such terms aad con-
ditions not inconsistent with the provisicns of this article as the
local legisiative body may deem necessary or desirable to secure
repayment of its loan, the interest thereon and other charges in
connection therewith,
§ 6, Subdivision three of section forty-two of such law
is hereby amended to read as follows:
3, "“Mortgege loan" shall mean a loan made by the agency
fo a company in an amount not to exceed ninety per centum of the
project cost, except that in the case of a mutual company the isan
7 em CR ee a a>
Shall not exceed ninety-five per centum of the project cost, and
secured by a first mortgage lien on the real property of which the
voject consists and the personal property attached to or used in
connection with the construction or cperation, or both, of tie
7," ‘project cost" and "project"
project, "Company," “mutual compan
shali mean company, mutual company, project cost and project,
respectively, as defined in article two of this chapter,
§ 7. This act shall take effect May first, nineteen
hundred sixty-two,
The Real Estate Board of New York, Inc.
REAL ESTATE BOARD BUILDING ® 12 EAST 41st STREET
LEGISLATION
COMMITTEE
Edward R. K. Fiencke
Chairman
Jerome S. Blumenthal
Vice-Chairman
Harold J. Treanor
Counsel
Adie Boehme
General Secretary
William J. Brede
Legislative Representative
John R. O'Donoghue
Exec. Secy. Owners Div.
Division "'A’’
Edward R. K. Fiencke
Chairman
John P. Allee
Vice-Chairman
Alexander Berley
Daniel S. Berman
Harold J. Edelson
M. Monroe Fass
Robert S. Fougner
Harold L. Friedman
Harvey Greenfield
Edgar I. Levy
Richard C. Malone
Alan Nordlinger
Martin M. Psaty
Carl D. Schlitt
Melville Southard
Ralph J. Stewart
David Vorhaus
William Wolfman
Division ''B’’
Jerome S. Blumenthal
Chairman
Saul Fromkes
Vice-Chairman
Paul Benton
Eugene L. Boyle
Lawrence A. Cohen
Manuel J. Fenton
Israel Hoffman
William V. Mahoney
William Pitt Mason, Jr.
Frank Moroze
Norman C. Nicholson
Paul O’Keefe
Frank Reisch
Julian Roth
Rexford E. Tompkins
NEW YORK 17, N. Y. *® TELEPHONE LEXINGTON 2-3100
Hon. Ernest Curto
Assembly Chamber
Albany, N. Y.
New York,
March 26, 1962
Herewith find recommendations of the Legislation Committee
of this Board on
A Int. 916 , Pr. By: Curto
sg ‘Int. 3772 » #F, By: mitchell
Amends §§12, 13, 21-23, 2, Private Housing Finance Law,
to provide that loans by state to mutual Limited=-profit housing
companies for housing construction, shall not be greater than 95
per cent of total project cost, instead of 90 per cent, present
maximum e
This Board is opposed to the increase in the permissible
public mortgage from 90 to 95%.
J EX =p L,
Shige The bi de A
JOHN R. O'DONOGHUE
Executive Secretary
Owners Division
cc: Hon. Joseph F.. Carlino
Hon. Fred W. Preller
