Current as of: 2010 ยง 82. Limitations. No housing company shall: 1. Acquire any real property or interest therein unless it shall first have obtained approval of the project from the commissioner, and a certificate that such acquisition is necessary or convenient for the public purpose defined in this article, and unless any deed, lease or other instrument by which such real property or interest therein is acquired contains a statement that the conveyance is to a housing company organized pursuant to article four of the private housing finance law. 2. Sell, exchange, transfer or assign any real property except (a) to a municipality wherein a project is to be located, for public purposes only and upon such terms and conditions, with or without compensation, as the commissioner may approve, or with the written consent of the commissioner to another housing company formed under this chapter, and (b) for a price not in excess of the cost of the said property less any amounts paid in amortization of the mortgage indebtedness and the retirement of capital, plus so much of the distribution on capital of the said housing company as shall have been unpaid, and accrued interest on the mortgage indebtedness and income debenture certificates. Real property surplus to the needs of the housing company may be sold, exchanged, transferred or assigned to any person, partnership, trust, firm or corporation upon such terms and conditions as the commissioner may approve. 3. Encumber or lease all or any part of its real property to any other person, partnership, trust, firm, or public or private corporation, without the written consent of the commissioner, provided, however, that leases conforming to the regulations and rules of the commissioner and for actual occupancy by the lessees may be made without the consent of the commissioner. Any conveyance, encumbrance, lease or sub-lease made in violation of the provisions of this section and any transfer or assignment thereof shall be void. 4. Pay interest returns on its mortgage indebtedness at a higher rate than six per centum per annum, or at the rates of interest of mortgages or mortgage bonds insured by the federal housing administration or any other instrumentality of the federal government applicable at the time the housing company incurs the mortgage indebtedness, or at such higher rates as may be approved by the commissioner, or pay interest upon its income debenture certificates at a rate higher than six per centum per annum. 5. Issue its shares, in the case of a housing company which is a corporation, credit sums to partners on capital account, in the case of a housing company which is a partnership, subject amounts to the trust, in the case of a housing company which is a trust, and no housing company shall issue debentures and bonds covering any project undertaken by it in an amount greater in the aggregate than the total actual final cost of such project, including the lands, improvements, charges for financing and supervision approved by the commissioner and interest and other carrying charges during construction, and an allowance for working capital to be approved by the commissioner but not exceeding three per centum of the estimated cost or of the total actual final cost of the project if that shall be greater than the estimated cost. 6. Mortgage any real property without first having obtained the consent of the commissioner. 7. Issue any securities or evidences of indebtedness without first having obtained the approval of the commissioner. 8. Use any building erected or acquired by it for other than housing purposes, except that when permitted by law the story of the building above the cellar or basement and the space below such story may be used for stores, co-operative or community purposes, and when permitted by law the roof may be used for co-operative or community purposes. 9. Charge or accept any rental for housing accommodations in any project constructed, acquired, operated or managed by it in excess of the prices approved by the commissioner. 10. Enter into contracts for the payment of salaries to officers, employees, directors, partners, trustees or beneficiaries except subject to the approval of the commissioner and under such regulations as the commissioner may from time to time prescribe. 11. Enter into contracts for the construction or for the substantial repair, improvement or operation of projects except subject to the approval of the commissioner and under such regulations as the commissioner may from time to time prescribe. 12. Voluntarily dissolve, or in the case of a trust, terminate, without first having obtained the consent of the commissioner. 13. Make any guaranty without the approval of the commissioner. 14. Without the prior approval of the commissioner as to the terms and conditions thereof, sell, lease, or otherwise convey all or any part of a project to an authority. The commissioner may declare that any of the limitations set forth in this section shall be inapplicable, in whole or in part, to mutual housing companies after the period of municipal tax exemption granted to such mutual housing company projects pursuant to this article has expired. ________________________________________________________________________
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