New York Consolidated Laws, Private Housing Finance Law - PVH § 78. Consideration for capital and bonds

No housing company which is a corporation shall issue shares, nor shall a housing company which is a partnership credit sums to the partners on capital account, nor shall a housing company which is a trust subject amounts to the trust, and no housing company shall issue bonds or income debentures, except for money or property actually received for the use and lawful purposes of the housing company, provided, however, that a mutual housing company may issue shares for home owners purchase notes if the purchase transaction has received the written endorsement of the commissioner in accordance with supplementary rules and regulations of the commissioner made therefor and if at least two hundred dollars in money or property is received by such mutual housing company toward the issuance of such shares.  The consideration for all capital, bonds or income debentures based upon property received shall equal a valuation approved by the commissioner and such valuation shall be used in computing actual or estimated cost.

In no event shall the capital of, and income debentures issued by, the housing company be less than the total of twenty per centum of the actual cost, as defined in this article, of any project or projects undertaken pursuant to this article.

The commissioner may permit capital to be increased, or income debentures to be issued, to an amount not exceeding three per centum of the estimated total cost, or three per centum of the actual cost, if actual cost should exceed estimated cost, of a project for working capital to be used in connection with such project.