New York Laws
Article 4 - Limited Dividend Housing Companies
72 - Housing Companies; How Created.

(1) The name of the proposed housing company.
(2) The purposes for which it is to be formed which shall be as
follows: To acquire, construct, maintain and operate projects.
(3) The amount of the capital shares, and if any be preferred shares,
the preference thereof.
(4) The number of shares of which the capital shall consist, all of
which shall have a par value.
(5) The city, village or town and county or borough in which its
principal business office is to be located and the address to which the
secretary of state shall mail a copy of process in any action or
proceeding against the housing company which may be served upon him.
(6) Its duration, which shall not be less than twenty years.
(7) The number of directors, which shall not be less than three.
(8) The names and post-office addresses of the directors for the first
year.
(9) The names and post-office addresses of the subscribers to the
certificate and a statement of the number of shares which each agrees to
take in the housing company.
(10) A provision that the real property of the housing company shall
not be sold, transferred or assigned except under and pursuant to the
terms and provisions of this article.
(11) A declaration that all of the subscribers to the certificate are
of full age; that at least two-thirds of them are citizens of the United
States and that at least one of them is a resident of the state of New
York; that at least one of the persons named as a director is a citizen
of the United States and a resident of the state of New York.
(12) That the secretary of state is designated as the agent of the
housing company upon whom process in any action or proceeding against it
may be served.
2. (1) A housing company may be created as a general partnership by
the partners signing, acknowledging and filing as hereinafter provided a
certificate which shall contain:
(a) The matters set out in paragraphs one, two, five, six, and ten of
subdivision one of this section.
(b) The names and post-office addresses of the partners.
(c) A statement of the capital of the partnership.
(d) A declaration that all the partners are of full age, that at least
two-thirds of them are citizens of the United States, and that at least
one of them is a resident of the state of New York.
(2) A housing company may be created as a limited partnership by the
partners filing as provided herein a copy of the certificate filed with
the county clerk pursuant to article eight of the partnership law. The
partners shall at the same time sign, acknowledge and file a further
certificate which shall contain the matters set out in paragraphs one,
two, five, six and ten of subdivision one of this section and a
declaration that all the general partners are of full age, and at least
two-thirds of them are citizens of the United States, and at least one
of them is a resident of the state of New York.
3. A housing company may be created as a trust by the settlor signing,
acknowledging and filing as hereinafter provided a certificate which
shall contain:
(1) The matters set out in paragraphs one, two, five, six, and ten of
subdivision one of this section.
(2) A statement of the capital of the trust.
(3) The name and post-office address of the trustee or trustees.
(4) The name and post-office address of any person having a beneficial
interest, whether vested or contingent, under the trust.
(5) A declaration that all the trustees are of full age; that at least
two-thirds of them are citizens of the United States, and that at least
one of them is a resident of the state of New York.
4. A certificate made pursuant to this section shall further contain a
declaration that the housing company has been organized to serve a
public purpose and that it shall remain at all times subject to the
supervision and control of the commissioner or of other appropriate
state authority; that all real estate acquired by it and all structures
erected by it, shall be deemed to be acquired for the purpose of
promoting the public health and safety and subject to the provisions of
this article, and that the shareholders, partners or in the case of a
trust, the settlor, trustees or beneficiaries as their interest may
appear, shall be deemed to have agreed that they shall at no time
receive or accept from the housing company, in repayment of their
investment or interest in its capital, any sums in excess of the par
value of the shares, or of the amount of their contribution to, or
beneficial interest in capital, together with cumulative distributions
upon capital at the rate of six per centum per annum, and that any
surplus in excess of such amount if said company shall be dissolved, or
terminated, in the case of a housing company which is a trust, shall be
paid into the general fund of the state of New York if the buildings and
improvements of the project have not received exemption from taxation by
the municipality pursuant to subdivision three or four of section
ninety-three, or if the company has not received a loan from the
municipality, but if such tax exemption or loan has been received, any
remaining surplus shall be paid into the general fund of the
municipality.
5. A certificate made pursuant to the provisions of this section may
provide that in the event that income debenture certificates are issued
by the housing company, the owners thereof may be given the same right
to vote as they would have if possessed of shares of equivalent par
value in the case of a corporation or if they had contributed capital in
the case of a partnership or had a beneficial interest under the trust
vested in the case of a trust, of the amount of the income debenture
certificates held by them.
If provision is made for the issuance of income debenture
certificates, interest shall be paid by the housing company on income
debenture certificates only out of net earnings of the housing company
that would be applicable to payment of distributions if there were no
income debentures.
6. The certificate may permit the retirement of income debenture
certificates and capital of the housing company if, as and when there
shall be funds available in the treasury of the housing company from the
receipt of amortization or sinking fund installments for that purpose as
provided for by this article, but the amount so retired shall not exceed
ninety per centum of the par value of shares or amount of the capital
and the face value of income debentures issued and outstanding at the
time of the final completion of the building or buildings embraced in
the project.