New York Laws
Article 2 - Division of Housing
18 - Effects of Breach or of Acquisition of Projects by Third Persons.

§ 18. Effects of breach or of acquisition of projects by third
persons. In every contract for a loan by the state or for periodic
subsidies by the state, or both, a substantial breach of the condition
set forth therein providing for the maintenance of the project as low
rent housing shall be defined in such terms as the commissioner shall
deem to be in the public interest and consistent with the provisions and
purposes of this chapter. In every such contract the commissioner shall
retain the right, in the event of such a substantial breach or in the
event of the acquisition of title to the project by a third party, other
than a government authorized to engage in the administration of low rent
housing and approved by the commissioner, in any manner including a bona
fide foreclosure under a mortgage or other lien held by a third party,
to increase the interest payable thereafter on the unpaid balance of any
loan made pursuant to the contract to a rate not in excess of the going
state rate of interest (at the time of such breach or acquisition) plus
two per centum per annum or to declare any such unpaid balance due
forthwith and to reduce or terminate any periodic subsidies payable
under the contract.