§ 1102. Cooperative or condominium, homesteading and rental contracts.\n1. Within the limit of funds available in the housing trust fund\naccount, the corporation is hereby authorized to enter into contracts\nwith eligible applicants for the furnishing by such applicants of\nhousing for persons of low income. Each such contract shall provide that\neligible applicants rehabilitate or construct one or more projects or\nconvert one or more nonresidential properties. Such contracts may\nprovide for payments, grants or loans by the corporation for the\nactivities to be carried out by the eligible applicant under the\ncontract. Such contracts shall provide that a private developer make an\nequity investment of the greater of (i) two and one-half percent of\nproject costs or (ii) five percent of project costs less grants which\nare to be applied to such costs. The foregoing shall not preclude a\nprivate developer from making a greater equity investment. Any payments,\ngrants or loans made by the corporation outstanding at the time of\nresale shall be subject to repayment in whole or in part upon resale\nafter termination of the regulatory period and as otherwise provided\ntherein. Such repayment provisions may survive the end of the regulatory\nperiod. Such contracts may provide that eligible applicants shall either\n(a) perform activities specified under the contract themselves or (b)\nact as administrators of a program under which projects are\nrehabilitated or constructed or nonresidential properties are converted\nby other eligible applicants or (c) perform both such functions. In the\ncase of a municipality acting as an administrator, funds provided to\nsuch municipality hereunder shall not be deemed to be municipal funds.\nThe corporation shall refer any request for payments, grants or loans\nfrom persons of low income to eligible applicants in the area in which\nsuch persons reside. Loans may be in the form of participation in loans\nincluding but not limited to participation in loans originated or\nfinanced by lending institutions as defined in section forty-two of this\nchapter, the state of New York mortgage agency, the New York city\nhousing development corporation, the New York state housing finance\nagency or private or public employee pension funds. Notwithstanding any\nother provision of law, payments, grants and loans may be deposited by\nthe corporation directly with a lending institution at or before the\ntime of initial loan closing pursuant to an escrow agreement\nsatisfactory to the corporation. Payments, grants and loans shall be on\nsuch terms and conditions as the corporation, or the eligible applicant\nwith the approval of the corporation, as the case may be, shall\ndetermine. Payments, grants and loans shall be used to pay for the\nactual and necessary cost of acquisition, construction, rehabilitation\nor conversion, provided that not more than fifty percent of such\npayments, grants and loans received for the rehabilitation, construction\nor conversion of a project may be used for the cost of the project's\nacquisition and not more than ten percent of such payments, grants and\nloans may be used for the rehabilitation, construction or conversion of\ncommunity service facilities and, provided further, that payments,\ngrants or loans shall not be used for (i) the administrative costs of an\neligible applicant except as otherwise authorized by law, (ii) the cost\nof the acquisition, construction, conversion or rehabilitation of\nresidential units which, subsequent to such acquisition, construction,\nconversion or rehabilitation, are to be occupied by persons other than\npersons of low income, and (iii) the cost of the acquisition,\nconstruction, conversion or rehabilitation of units which, subsequent to\nsuch acquisition, construction, conversion or rehabilitation, are\noccupied or to be occupied for other than residential purposes, except\nfor community service facilities as described above. No such payments,
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