New York Laws
Article 4 - Limited Dividend Housing Companies
83 - Execution of Housing Company Projects.

§ 83. Execution of housing company projects. No building or
construction shall be undertaken by any housing company without the
approval of the commissioner. Such approval shall be conditioned upon:

1. The submission of a plan in such form and with such assurances as
the commissioner may prescribe, to raise at least twenty per centum of
the actual cost of the lands and improvements through investment in the
capital of such housing company together with the sale of income
debentures, where provided for by such plan; and to raise the balance by
mortgage bonds which shall not exceed eighty per centum of the actual
cost of the said project. The plan may provide for the raising of
working capital in an amount to be approved by the commissioner not to
exceed three per centum of the actual cost through investment in the
capital and sale of income debentures of the housing company. Wherever
reference is made in this article to cost of projects, or of buildings
and improvements in projects, such cost shall include charges for
financing and supervision approved by the commissioner, including a
reasonable proportion to be fixed by the commissioner, of the expenses
of the commissioner, applicable to the examination and supervision of
the project, and carrying charges during construction required in the
project, including interest on borrowed, and where approved by the
commissioner, on invested capital. Notwithstanding the provisions of any
other general, special or local laws, all moneys payable by the project
to reimburse the commissioner for his expenses applicable to the
examination and supervision of the project during construction as herein
provided shall be paid to the executive department.

2. The acceptance of a designee of the commissioner as a member of the
board of directors of said housing company. In the case of all mutual
companies an additional director shall be designated by the commissioner
at the creation of the company and shall serve from the time of such
designation at least until a board of directors has been elected by the
tenants entitled to occupancy in the project by reason of ownership of
shares in such company. Such directors appointed by the commissioner
need not be stockholders or meet other qualifications which may be
prescribed by the certificate of incorporation or the by-laws. In the
absence of fraud or bad faith the director appointed by the commissioner
shall not be personally liable for the debts, obligations or liabilities
of the corporation.

3. The approval by the commissioner of the plans, specifications and
estimated costs of the proposed housing facilities in respect to the
conformity thereof to reasonable standards of health, sanitation, safety
and provision for light and air.

4. When required by the commissioner, and except in the case of a
housing company which is a subsidiary of the New York state urban
development corporation, created by the New York state urban development
corporation act, the designation by the commissioner with respect to
each project approved by him of a trustee, which shall be a banking
corporation authorized to perform trust functions, and such trustee
shall receive moneys received by the housing company as its capital, or
as proceeds of its mortgage bonds, notes or income debentures and make
payment therefrom for the acquisition of land, the construction of
improvements and other items entering into cost of land and improvements
upon presentation of draft, check or order signed by a proper officer or
designee of the housing company and countersigned by the said
commissioner or a person designated by him for said purpose. Any funds
remaining in the custody of said trustee after the completion of the
said project and payment or arrangement in a manner satisfactory to the
commissioner for payment in full therefor shall be paid to the housing
company.

5. No such project shall be approved in contravention of any planning,
zoning, sanitary and building laws, ordinances and regulations
applicable to the municipality in which the project is situated.

6. Notwithstanding the provisions of subdivision five hereof, no state
urban development corporation project shall be approved unless it
complies with the requirements of local laws, ordinances, codes,
charters or regulations applicable to the construction, reconstruction,
rehabilitation, alteration or improvement of such project, except where
the state urban development corporation, in its discretion, finds such
compliance not feasible or practicable, in which event no such project
shall be approved unless it complies with the requirements of the state
building construction code, formulated by the state building code
council pursuant to article eighteen of the executive law, applicable to
such construction, reconstruction, rehabilitation, alteration or
improvement. No county, city, town or village shall have power to modify
or change the drawings, plans or specifications for the construction,
reconstruction, rehabilitation, or improvement of any such project or
the construction, plumbing, heating, lighting or other mechanical branch
of work necessary to complete the work in question, nor to require that
any person, firm or corporation employed on any such work shall perform
any such work in any other or different manner than that provided by
such plans and specifications, nor to require that any such person, firm
or corporation obtain any other or additional authority, approval,
permit or certificate, from such county, city, town or village as a
condition of doing such work, nor shall any condition whatever be
imposed by any such county, city, town or village in relation to the
work being done, and the doing of any such work by any person, firm or
corporation in accordance with the terms of such drawings, plans,
specifications or contracts shall not subject said person, firm or
corporation to any liability or penalty, civil or criminal, other than
as may be stated in such contracts or incidental to the proper
enforcement thereof; nor shall any county, city, town or village have
power to require that any subsidiary of the New York state urban
development corporation, or any lessee therefrom or successor in
interest thereto, obtain any other or additional authority, approval,
permit, certificate or certificate of occupancy from such county, city,
town or village as a condition of owning, using, maintaining, operating
or occupying any project acquired, constructed, reconstructed,
rehabilitated or improved by any such subsidiary of the New York state
urban development corporation.