555 - Financial structure. - New York Statutes

§ 555. Financial structure. 1. (a) The entire amount to be paid in cash or property by the stockholders and income debenture holders of a housing company acquiring fee title to a project shall be equivalent to at least twenty per centum of the cost of acquisition of such project as certified by the commissioner in the case of companies organized pursuant to the provisions of article four of this chapter, or at least ten per centum of the cost of acquisition in the case of companies organized pursuant to the provisions of article two of this chapter, as certified by the commissioner or supervising agency, as the case may be. (b) The entire amount to be paid in cash or property by the stockholders and income debenture holders of a housing company acquiring a project by lease shall be determined by the commissioner or supervising agency, as the case may be. In the event a state-aided project shall be acquired by a municipally-aided company by lease, the approval of the commissioner shall be required in addition to the approval of the supervising agency. 2. The provisions of subdivision one hereof shall not be applicable to any housing company organized pursuant to article four of this chapter if such company shall receive a loan from the federal government or any instrumentality thereof, or if any mortgage or mortgage bonds insured by the federal housing administration are used in financing the project, or the acquisition thereof, in whole or in part. In such case the equity required shall be the difference between the amount of such loan or mortgage and the cost of acquisition.