N.Y. Private Housing Finance Law Section 16
Limited-profit housing companies

  • partnership relations
Notwithstanding any provisions in this article to the contrary, but subject to such regulations as may be prescribed by the commissioner or the supervising agency, as the case may be:

1.

(a) Any company may be a partner (general or limited) in a partnership (general or limited) formed for the purpose of providing such company with capital. Any company incorporated pursuant to the provisions of this article may, with the consent of the commissioner or the supervising agency as the case may be, become a partner (general or limited) in a partnership (general or limited) upon the consent of the company to the refinancing of its original mortgage loan by a mortgage loan insured by the Federal government; such a partnership shall have the same powers and duties as provided by this article as a partnership formed for the purpose of providing a company with capital.

(b)

Any partner (general or limited) of any partnership (general or limited) in which a company is a partner (general or limited) may be the owner or holder of any shares, bonds, income debentures, notes or other securities of such company.

(c)

Any company which is a partner (general or limited) in any such partnership (general or limited) may exercise all the rights and powers and shall be subject to all the duties and obligations of a company in accordance with this article.

2.

The capital structure of a company which is a partner (general or limited) in a partnership (general or limited) formed pursuant to paragraph (a) of subdivision one of section sixteen may include withdrawals from the capital of such a partnership (general or limited). The provisions of this article relating to shares and income debentures shall be deemed to include withdrawals from the capital of a partnership (general or limited) of which a company is a partner (general or limited).

3.

For the purposes of this section, the term partner shall be deemed to include a member of a limited liability company, and the term partnership shall be deemed to include a limited liability company, provided there is disclosure of the identity of the managing member, including the identity of the natural person who is responsible for the housing development. Notwithstanding any provision of this section to the contrary, any change in general partner of a partnership or managing member of a limited liability company shall be subject to the prior, written approval of the commissioner or supervising agency.

Source: Section 16 — Limited-profit housing companies; partnership relations, https://www.­nysenate.­gov/legislation/laws/PVH/16 (updated Sep. 22, 2014; accessed Apr. 27, 2024).

10
Short title 11
Policy and purposes of article 11‑A
Additional policy and purposes of article 12
Definitions 13
Limited-profit housing companies 13‑A
The applicability of not-for-profit corporation law 13‑B
Verification of papers filed with supervising agency 13‑C
Voting, election and referendum procedures 14
Consent of commissioner to incorporation 15
Participation by certain corporations and individuals 16
Limited-profit housing companies 17
Powers 18
Designation of and service of process on secretary of state and registered agent 19
Consideration for issuance of stock, bonds or income debentures 20
Mortgages, mortgage bonds and notes 21
Capital structure 22
State loans 22‑A
Redevelopment loans 22‑B
Loans for state-aided limited-profit housing companies 23
Municipal loans and municipally aided projects 23‑A
Mortgage modifications, evidence of pre-existing indebtedness 23‑B
Participation in loan or investment 23‑C
Mortgage modifications 24
Income debentures 25
Working capital 26
Conditions and security for loans 26‑A
Findings for municipally-aided projects 26‑B
Special provisions with respect to state urban development corporation projects 26‑C
Special provisions with respect to Battery Park city projects 27
Limitations 28
Payments from earnings 29
Acquisition of property 30
Transfer of real property 31
Rentals and selection of tenants 31‑A
Resale price of shares 31‑B
Assignment or pledge of tenant cooperator’s shares 31‑C
Tenant-cooperators 32
Supervision and regulation 32‑A
Additional supervision and regulation 32‑B
Annual reports 33
Tax exemptions 34
Foreclosure and judgments 35
Voluntary dissolution 35‑A
Requirements regarding dissolution 36
Sale of project prior to termination of tax exemption 36‑A
Additional powers of municipalities 37
Separability clause
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Accessed:
Apr. 27, 2024

Last modified:
Sep. 22, 2014

§ 16’s source at nysenate​.gov

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