N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1648-1.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1648-1.2 - Statutory limitations

The Public Housing Law places the following limitations on the payment of State subsidies:

(a) Maximum State subsidy. The State subsidies actually paid will vary each year with the operating deficit of a project, but no State subsidy may be paid in excess of the maximum amount stipulated in the Public Housing Law. The maximum amount of State subsidy payable in any one year on any one project cannot exceed a sum equal to the largest annual interest charge on funds borrowed from the State to finance such project, exclusive of funds borrowed for working capital, plus one per cent of the project cost. However, where all or any part of the funds necessary to finance the project are borrowed from sources other than the State, or Federal government the State subsidy may equal but cannot exceed the largest annual interest charge on all borrowed funds, plus one per cent of the project cost or three and one-half per cent of the project cost whichever is less.

(b) Matching local subsidy. The law provides that no State subsidy shall be available for any project unless and until the municipality in which such project is situated shall contract to make subsidies to such project in an amount at least equal to subsidy contracted to be made by the State. However, all or any part of such municipal subsidy may be in the form of exemption from local or municipal taxes to the extent specified in section 73 of the law. In practice, these provisions mean that the local subsidy, including the tax exemption subsidy, must at all times match the State subsidy but may at times exceed it.

(c) Appropriations for State subsidies. State subsidies are payable on an annual basis out of moneys appropriated therefor by the State legislature. Time is of the essence in submitting requisitions for State subsidies (see Subpart 1648-3), particularly where such subsidies are required in connection with debt service.

(d) Fixed period of years. State subsidies are payable over a fixed period of years not exceeding the life of the project, but in any event not exceeding 50 years. The period of years over which the State subsidy is payable will, ordinarily, be stated in the contract for State aid. The fixed period of years over which the State subsidy is payable commences on the date of substantial completion of the project, as determined by the commissioner.

N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1648-1.2