N.Y. Priv. Hous. Fin. Law § 1122

Current through 2024 NY Law Chapter 553

Section 1122 - Manufactured home cooperative fund contracts

1. Within the limit of funds available in the manufactured home cooperative fund, the agency is hereby authorized to enter into contracts with eligible applicants to provide loans which such eligible applicants shall use to establish manufactured home park cooperatives through acquisition or infrastructure improvement or both.

2. No such loan may be made or its term extended pursuant to this article, unless the agency determines that the eligible applicants cannot afford or obtain the financing necessary to accomplish the purposes of such loans through the ordinary unaided operation of private enterprise.

3. The agency shall not enter into loans under this article except with an eligible applicant which has submitted a plan acceptable to the agency which provides that subsequent to conversion to cooperative ownership, a majority of the manufactured home owners or one or more members of their immediate family intend to occupy their manufactured homes as their primary residence.

4. Such contracts may provide for loans by the agency for the activities to be carried out by the eligible applicant under the contract, including participation in loans including but not limited to participation in loans originated or financed by lending institutions as defined in section forty-two of this chapter, private or public employee pension funds or the state of New York mortgage agency. Loans shall be at the prevailing interest rate in the area for long term residential mortgages or at such lower rate as the agency determines to be necessary for the project to be financially feasible. Loans shall not exceed ninety-five percent of the project costs including purchase price and costs for infrastructure improvement. The term of the loan for a cooperative project or infrastructure improvement shall not exceed ten years unless extended for periods not to exceed ten years in which case the term of the loan as extended shall not exceed thirty years in the aggregate and the amortization schedule for the loan shall not exceed thirty years.

5. In determining loans pursuant to this article the agency shall give preference to applications based upon the following criteria:

(a) the extent to which park residents are threatened with displacement by the projected sale or closing of the existing park;

(b) the scarcity of affordable alternate sites in the immediate area for relocation of park residents;

(c) the extent to which manufactured home parks, subsequent to receiving assistance under this article, will be owned as a cooperative by shareholders or owners or holders of membership interests or certificate of membership in such cooperative whose average incomes do not exceed (i) the greater of one hundred percent of the median income for the metropolitan statistical area in which a project is located or one hundred percent of the median income for the state, or (ii) if the project is located outside such an area, the greater of one hundred percent of the median income for the county in which the project is located or one hundred percent of the median income for the state;

(d) the extent to which the proposed resident ownership structure provides long-term security and tenure;

(e) the extent to which the proposed project will be undertaken and completed in a timely fashion; and

(f) the extent to which the homes in a park are occupied by the manufactured home owners or members of their families.

6. The agency shall provide for the review, at periodic intervals not less than annually, of the performance of applicants receiving financial assistance pursuant to this article. Such review shall, among other things, be for the purposes of ascertaining conformity to contractual provisions, the financial integrity and efficiency of applicants and the evaluation of the applicants' activities. Contracts entered into pursuant to this article may be terminated, funds may be withheld and unspent funds recaptured by the agency upon a finding of substantial nonperformance or breach by the applicant of its obligations under its contract.

N.Y. Priv. Hous. Fin. Law § 1122