New York Consolidated Laws, Private Housing Finance Law - PVH § 1106-a. Definitions

1. “Corporation” means the housing trust fund corporation established by section forty-five-a of this chapter.

2. “Turnkey/enhanced rental project” or “project” means a vacant property which is converted or rehabilitated to residential rental use, a newly constructed rental project or projects or a state-aided public housing project or projects where more than thirty percent of the units are vacant.

3. “Turnkey/enhanced rental project costs” means the reasonable and necessary costs for planning, financing, acquisition of land or buildings and construction of new buildings or the reconstruction, rehabilitation, repair or remodeling of existing buildings, provided however that not more than twenty percent of such costs may be used for acquisition of land or buildings.  Such costs may also include all or any portion of the cost necessary for the creation of a reserve fund required pursuant to section eleven hundred six-e of this article, and all or a portion of a working capital fund.  Such costs shall not include the costs of nondwelling-related facilities, eligible applicant administrative costs or, in cities with a population of one million or more, the cost of demolition or acquisition of land or buildings.

4. “Eligible applicant” means a housing development fund company incorporated pursuant to article eleven of this chapter, a not-for-profit corporation or charitable organization which has as one of its primary purposes the improvement of housing for persons of low income, a wholly owned subsidiary of such a corporation or organization, a municipality, a municipal housing authority created pursuant to the public housing law or a person, firm, partnership or corporation which has agreed to limit profits or rate of return of investors in accordance with a formula established by the corporation.  In the case of an application by a city with a population of one million or more for funding pursuant to this article for projects expected to contain thirty percent or more permanent housing units occupied by eligible homeless families, as defined in article three-A of this chapter, such city shall be an eligible applicant only if the corporation shall determine in its sole discretion that funding for the purpose of undertaking the project is unavailable for the project pursuant to article three-A of this chapter.

5. “Eligible owner” means a housing development fund company incorporated pursuant to article eleven of this chapter, a not-for-profit corporation or charitable organization which has as one of its primary purposes the improvement of housing for persons of low income, a wholly owned subsidiary of such a corporation or organization, a partnership at least fifty percent of the controlling interest of which is held by such a corporation or organization and which has agreed to limit profits or rate of return of investors in accordance with a formula established or approved by the corporation, a municipality or a municipal housing authority created pursuant to the public housing law.

6. “Reserve fund” means a fund or funds to be used in accordance with guidelines established by the corporation for ongoing operation and maintenance costs and replacement costs and may only be used after the first year of a project's operation, as measured from the date of substantial occupancy, except in the event of an imminent threat to the health and safety of the tenants.  Such fund shall be deposited in a banking institution whose principal place of business is located within the state of New York and which has a proven record of investment in the community in which the project is located.

7. “Working capital fund” shall mean a fund to be used for start-up expenses including, but not limited to, liability insurance, fidelity bond premiums, utility hook-up deposits, maintenance equipment, movable furnishings and equipment and other initial project related expenses, as approved by the corporation.