Section 573. Incorporation and organization of non-profit housing corporations

1.  A  housing  development   fund   company   shall   be
  incorporated  pursuant  to  the  provisions  of  this  article  and  the
  provisions  of  either  (a)  the  business  corporations  law,  (b)  the
  not-for-profit  corporation  law,  or (c) the not-for-profit corporation
  law and article two of this chapter.
    2.  The  term  "housing  development  fund  corporation"  or  "housing
  development  fund  company" shall be included as a part of the corporate
  name as set forth in the certificate of incorporation.
    3. The certificate of incorporation of any such corporation shall,  in
  addition to any other requirements of law, provide:
    a.  that  the  company  has  been  organized  exclusively to develop a
  housing project for persons of low income;
    b. that all income and earnings  of  the  corporation  shall  be  used
  exclusively  for  corporate purposes, and that no part of the net income
  or net earnings of the corporation shall inure to the benefit or  profit
  of any private individual, firm, corporation or association;
    c.  that  if the corporation receives a temporary loan or advance from
  the housing development fund or a municipal housing development fund, as
  established by or pursuant to article  eleven  of  the  private  housing
  finance  law, it shall be authorized to enter into an agreement with the
  commissioner of housing and community renewal of the state of  New  York
  or  the supervising agency, as the case may be, providing for regulation
  with respect to rents, profits, dividends and disposition of property or
  franchises;
    d. that if the corporation receives a temporary loan or  advance  from
  the housing development fund or a municipal housing development fund, as
  established  by  or  pursuant  to  article eleven of the private housing
  finance law, the commissioner of housing and community  renewal  of  the
  state  of  New York or the supervising agency, as the case may be, shall
  have the power, if, in his or its discretion, he or it determines either
  that any such temporary loan or advance is  in  jeopardy  of  not  being
  repaid,  or  that  the proposed housing project for which such temporary
  loan or advance was made is in jeopardy of  not  being  constructed,  to
  appoint  to  the  board of directors of such corporation a number of new
  directors, which number shall be sufficient to constitute a majority  of
  such  board,  notwithstanding any other provision of such certificate of
  incorporation or of any other provision of law.
    4. The certificate of incorporation of any such corporation  organized
  pursuant  to  the  business  corporation  law and this article shall, in
  addition, provide that each housing project of such corporation shall be
  operated exclusively for the benefit of the persons or families who  are
  entitled  to occupancy in such housing project by reason of ownership of
  shares in such corporation, and that such corporation 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 corporation toward the issuance of such shares.
    5.   The  secretary  of  state  shall  not  file  the  certificate  of
  incorporation of any such corporation or any  amendment  thereto  unless
  the  consent  or approval of the commissioner or the supervising agency,
  as the case may be, is affixed thereon or attached thereto.  Consent  to
  the  filing  of  such  certificate  of incorporation shall be based upon
  findings by the commissioner or supervising agency as to  the  character
  and competence of the sponsor.