New York § 111-B - 111-BMortgage modification provisions for redevelopment companies in cities with a population of one million or more

§ 111-B. 111-BMortgage modification provisions for redevelopment companies in cities with a population of one million or more

§ 111-b. Mortgage modification provisions for redevelopment companies in cities with a population of one million or more. 1. For purposes of this section, "restrictive agreement" shall mean a binding and irrevocable agreement between the redevelopment company and the supervising agency providing that such redevelopment company for a term of five years from the date of such agreement (i) shall not voluntarily dissolve or reconstitute pursuant to section one hundred twenty-three of this article, (ii) shall exercise any and all available options to renew any housing assistance payments contract pursuant to section eight of the United States Housing Act of nineteen hundred thirty-seven, as amended, and any successor rent subsidy program, (iii) shall not cause such a contract to be terminated by reason of such redevelopment company's noncompliance with any of the terms thereof, and (iv) shall not voluntarily cause or permit such a contract to expire, to not be extended, to not be renewed, or to be terminated. 2. Notwithstanding the provisions of this article or the provisions of any law, general or special, in cities with a population of one million or more, a redevelopment company with a federally-aided mortgage formed pursuant to this article may borrow funds and secure the repayment thereof by note and mortgage or any other manner approved by the supervising agency, provided, however, that (a) such approval by the supervising agency shall be conditioned upon a restrictive agreement, and (b) such redevelopment company may not increase the rents paid by the tenants to pay for any such increase in indebtedness that is not attributable to project cost.