Section 654. Powers of the corporation

Except as otherwise limited by this
  article, the corporation shall have power:
    1. To sue and be sued;
    2. To have a seal and alter the same at pleasure;
    3. To make  and  alter  by-laws  for  its  organization  and  internal
  management  and,  subject to agreements with noteholders or bondholders,
  to make rules and regulations governing the  use  of  its  property  and
  facilities;
    4.  To  make and execute contracts and all other instruments necessary
  or convenient for the exercise of its powers and  functions  under  this
  article;
    5.  To  acquire, hold and dispose of real and/or personal property for
  its corporate purposes;
    6. To appoint officers, agents and employees, prescribe  their  duties
  and qualifications and fix their compensation, subject to the provisions
  of  the  civil service law and the rules of the civil service commission
  of the city;
    7. Subject to the provisions of  any  contract  with  noteholders  and
  bondholders,  to  make  mortgage  loans, to participate with the city or
  with one or more organizations mentioned  in  section  fifteen  of  this
  chapter  in  making  mortgage loans and to undertake commitments to make
  any such mortgage loans to housing companies, including  any  subsidiary
  of  the  corporation, on the same terms and otherwise in accordance with
  the provisions of article two of  this  chapter  governing  loans  by  a
  municipality;
    * 7-a.  Subject to the provisions of any contract with noteholders and
  bondholders, to make mortgage loans, to participate  with  the  city  or
  with one or more organizations set forth in section one hundred eleven-a
  of this chapter in making mortgage loans and to undertake commitments to
  make  any such mortgage loans to redevelopment companies organized under
  article five of this chapter;
    * NB (Effective until ruling by Internal Revenue Service)
    * 7-a. Subject to the provisions of any contract with noteholders  and
  bondholders,  to  make  mortgage  loans, to participate with the city or
  with one or more organizations set forth in sections eighty-one and  one
  hundred  eleven-a  of  this  chapter  in  making  mortgage  loans and to
  undertake   commitments   to   make   any   such   mortgage   loans   to
  limited-dividend  housing companies organized under article four of this
  chapter and to redevelopment companies organized under article  five  of
  this  chapter.  Such  mortgage loans may be made to limited-dividend and
  redevelopment companies for such purposes as  may  be  approved  by  the
  corporation  including,  but  not  limited  to,  the  refinancing of the
  existing mortgage indebtedness of such companies, to provide  funds  for
  the  replacement, improvement and rehabilitation of the properties owned
  by said companies, to provide funds  for  all  costs  incurred  by  such
  companies   relating   to  the  refinancing  of  the  existing  mortgage
  indebtedness including amounts required to  establish  escrow  accounts,
  reserves  and  working  capital as determined by the corporation and for
  such other purposes as are permitted by articles four and five  of  this
  chapter;  provided,  however,  such  purposes  must  be  approved by the
  Federal Internal Revenue Service for application of  the  tax  exemption
  for  housing  bonds.  Such mortgage loans may be made by the corporation
  without any requirement that all or any portion of the loan be  used  to
  create  new  or  rehabilitated housing facilities. In furtherance of its
  powers pursuant to this subdivision and, subject to  the  provisions  of
  any  contract  with  noteholders  and  bondholders,  the corporation may
  acquire and  contract  to  acquire,  by  assignment  or  otherwise,  any
  mortgage  securing  a  loan  and  any  related  bond  or  note made by a

  limited-dividend housing company or  a  redevelopment  company  and  may
  modify  or  satisfy  such  mortgage and accept or make a new mortgage or
  mortgages and execute such other instruments as the corporation deems to
  be necessary or proper.
    * NB (Effective pending ruling by Internal Revenue Service)
    8.  Subject  to  the  provisions  of any contract with noteholders and
  bondholders,  to  make  mortgage  loans  including   participation   and
  investment with the city or with one or more corporations, organizations
  or  individuals  of  the kind mentioned in section four hundred seven of
  this chapter in making mortgage loans and to  undertake  commitments  to
  make  mortgage loans to owners of existing multiple dwellings, including
  any subsidiary of the corporation, on the same terms  and  otherwise  in
  accordance  with the provisions of article eight of this chapter, except
  that such loans shall in all cases be secured by a first lien;
    8-a. Subject to the provisions of any  contract  with  noteholders  or
  bondholders,  to  participate  with  the  city  or  one  or more private
  investors as defined in section eight hundred one  of  this  chapter  or
  with  the city and one or more such private investors in making loans in
  accordance with the provisions of article fifteen of this chapter.
    9. Subject to the provisions of  any  contract  with  noteholders  and
  bondholders,  to  sell, at public or private sale, any mortgage or other
  obligation securing a mortgage loan made by the corporation;
    10. Subject to the provisions of any  contract  with  noteholders  and
  bondholders,  in  connection  with  the  making  of  mortgage  loans and
  commitments therefor,  to  make  and  collect  such  fees  and  charges,
  including  but not limited to reimbursement of all costs of financing by
  the  corporation,  service  charges  and  insurance  premiums,  as   the
  corporation shall determine to be reasonable;
    11.  Subject  to  the  provisions of any contract with noteholders and
  bondholders, to consent to the modification, with  respect  to  rate  of
  interest,  time  of payment of any installment of principal or interest,
  security, or any other term, of any mortgage,  mortgage  loan,  mortgage
  loan  commitment,  contract  or  agreement  of  any  kind  to  which the
  corporation is a party;
    12. To foreclose any mortgage in default or  commence  any  action  to
  protect  or  enforce  any  right conferred upon it by any law, mortgage,
  contract or other agreement, and to bid for and purchase  such  property
  at  any  foreclosure or at any other sale, or acquire or take possession
  of any such property; and in such event the  corporation  may  complete,
  administer,  pay  the  principal  of  and  interest  on  any obligations
  incurred in connection with such property,  dispose  of,  and  otherwise
  deal  with,  such  property,  in  such  manner  as  may  be necessary or
  desirable to protect the interests of the corporation therein;
    12-a. To create subsidiaries,  as  provided  in  section  six  hundred
  fifty-four-a of this chapter.
    13.  To  borrow  money and to issue negotiable notes or bonds or other
  obligations and to fund or refund the  same,  and  to  provide  for  the
  rights of the holders of its obligations;
    14.  To  invest  any  funds  held in reserves or sinking funds, or any
  funds not required for immediate use or disbursement, at the  discretion
  of  the  corporation,  in  obligations  of  the  city,  state or federal
  government,  obligations  the  principal  and  interest  of  which   are
  guaranteed  by  the  city,  state  or federal government, obligations of
  agencies of the federal government  which  may  from  time  to  time  be
  legally  purchased by savings banks of the state as investments of funds
  belonging  to  them  or  in  their  control  and  be  approved  by   the
  comptroller,  obligations  in  which the comptroller of the state of New
  York is authorized to invest pursuant to  section  ninety-eight  of  the

  state  finance  law,  obligations  of  the New York city municipal water
  finance authority, participation certificates of the federal  home  loan
  mortgage  corporation  or  mortgage-backed  securities  of  the  federal
  national mortgage association.
    15.  Subject  to  the  provisions of any contract with noteholders and
  bondholders and  subject  to  the  provisions  of  section  six  hundred
  fifty-five   of  this  article,  to  purchase  notes  or  bonds  of  the
  corporation;
    16. To procure insurance against  any  loss  in  connection  with  its
  property and other assets including mortgages and mortgage loans in such
  amounts and from such insurers as it deems desirable;
    17.  To  engage  the  services  of consultants on a contract basis for
  rendering professional and technical assistance and  advice;  and  where
  the  corporation  shall join with one or more organizations mentioned in
  section fifteen, one hundred eleven-a or  four  hundred  seven  of  this
  chapter  in  making  mortgage  loans,  to  make provision, either in the
  mortgage or mortgages or by separate agreement, for the  performance  of
  such  services  as  are generally performed by a banking organization or
  insurance company which itself owns and holds a mortgage or by a trustee
  under a trust mortgage, and to consent to the appointment of  a  banking
  organization to act in such capacity;
    18.  To  contract  for  and  to accept any gifts or grants or loans of
  funds or property or fees for administering any federal  rental  subsidy
  contract  or  financial  or  other  aid  in  any form, including but not
  limited to mortgage insurance, from the federal government or any agency
  or  instrumentality  thereof,  or  from  the  state  or  any  agency  or
  instrumentality thereof, or from any other source and to comply, subject
  to  the  provisions  of  this  article,  with  the  terms and conditions
  thereof;
    19. As security for the payment of the principal of  and  interest  on
  any  bonds so issued and any agreements made in connection therewith, to
  pledge all or any part of its revenues;
    20. Notwithstanding the provisions of this chapter  or  of  any  other
  law, general, special or local, whenever the corporation shall find that
  the  maximum  rentals  charged  tenants  of the dwellings in any project
  financed by the corporation in whole or in part shall not be sufficient,
  together with  all  other  income  of  the  mortgagor,  to  meet  within
  reasonable  limits all necessary payments to be made by the mortgagor of
  all expenses  including  fixed  charges,  sinking  funds,  reserves  and
  dividends,  to  request  the  mortgagor  to make application to vary the
  rental rate for such dwellings so as to secure  sufficient  income,  and
  upon  failure  of  the  mortgagor to take such action within thirty days
  after receipt of written request from  the  corporation  to  do  so,  to
  request  the  supervising  agency  to take action upon such agency's own
  motion so to vary such rental rate, and upon failure of the  supervising
  agency  either  upon application by the mortgagor or upon its own motion
  so to vary such rental rate within sixty days after receipt  of  written
  request  from  the  corporation  to  do  so, to vary such rental rate by
  action of the corporation;
    21. Subject to the provisions of any  contract  with  noteholders  and
  bondholders,  to  acquire  and  to contract to acquire, by assignment or
  otherwise, or to take as collateral security, any  mortgage  securing  a
  loan,  including  any construction loan, and any note or bond evidencing
  indebtedness thereon, made by the city of New York  in  accordance  with
  the  provisions  of  article  two  of  this  chapter and any contract or
  arrangement, including any subsidy contract or arrangement,  related  to
  such mortgage, and the receipts to be derived from any of the foregoing,
  and  to  assume  and  fulfill  and  contract  to  assume and fulfill the

  obligations of the mortgagee or lender thereunder, and to  reassign  and
  to contract to reassign to the city of New York any such mortgage, note,
  bond, contract or arrangement and the receipts to be derived therefrom.
    22.  Subject  to  the  provisions of any contract with noteholders and
  bondholders, to assign or pledge any  mortgage,  bond,  note,  contract,
  security,  or arrangement and the receipts to be derived from any of the
  foregoing, acquired pursuant to this section;
    22-a. Subject to the provisions of any contract with  noteholders  and
  bondholders,  to  acquire  and  to contract to acquire, by assignment or
  otherwise, any mortgage securing  a  loan,  including  any  construction
  loan,  and any note or bond evidencing indebtedness thereon, made by the
  city of New York in accordance with the provisions  of  article  two  of
  this  chapter  and  any  contract  or arrangement, including any subsidy
  contract or arrangement, related to such mortgage, and to modify  or  to
  satisfy such mortgage and accept or make a new mortgage or mortgages and
  other  instruments,  including mortgages to secure residual indebtedness
  and instruments to evidence residual receipts obligations as defined  in
  section  twelve of this law and to enter into amended subsidy contracts,
  and (i) to hold or to sell, assign or otherwise dispose of such mortgage
  or mortgages, including those  made  in  substitution  thereof  and  any
  related instruments, contracts and arrangements, or to issue obligations
  secured  by  such mortgage or mortgages, and pay to the city of New York
  the proceeds of such sale,  assignment  or  other  disposition  of  such
  mortgages  and  the proceeds from the issuance of such obligations, less
  legal and other fees, costs and  expenses  and  other  amounts  paid  or
  incurred  by the corporation, including discounts, costs incurred by the
  corporation related to the sale of such mortgages or to a sale, if  any,
  of  its  obligations, fees payable to other governmental units, the cost
  incurred  by  the  corporation  under  an  agreement  with  the  federal
  government pursuant to subdivision twenty-two-b of this section, amounts
  required  to  establish  escrow accounts or reserves for the issuance of
  mortgage  insurance,  the  cost  of  satisfying  such  minimum  property
  standards  or  of installing such life safety devices as may be required
  by the federal government which standards or devices are in addition  to
  any  requirement  imposed  by the city of New York as mortgagee, amounts
  loaned to the mortgagor to establish such escrow accounts or reserves or
  to satisfy such minimum property  standards  or  to  install  such  life
  safety  devices,  closing  and other costs related to obtaining mortgage
  insurance from the federal government such other costs  as  the  federal
  government  may  from  time  to  time impose, any amounts not previously
  advanced under mortgages modified or satisfied under this subdivision as
  determined by the supervising agency, and an amount not to exceed twenty
  million dollars at any one time, which shall  be  held  in  a  revolving
  account  for a period not to exceed eighteen months from the time of the
  first deposit therein, to pay any or all of the costs, fees and expenses
  and other amounts attributable to issuing obligations  secured  by  such
  mortgage  or  mortgages, or to making and insuring mortgages pursuant to
  this subdivision, and any balance remaining in  such  revolving  account
  shall  be  paid  to  the  city of New York no later than eighteen months
  after the time of the first deposit  therein,  and  (ii)  to  assign  or
  reassign  any  such  mortgage  or  mortgages,  instruments  and  related
  contract or arrangement to the city of  New  York.  If  the  corporation
  sells any such mortgages for an amount in excess of the principal amount
  thereof  at  the  time  of  such  sale,  or  if  the  corporation issues
  obligations secured  by  any  such  mortgages  and  the  yield  on  such
  mortgages  is  greater  than the yield on such obligations (the yield on
  such mortgages and obligations having been calculated in accordance with
  section one hundred three of the internal revenue  code  of  the  United

  States  and  regulations  thereunder),  the corporation shall pay to the
  city of New York such premium and any such differential, but only to the
  extent such differential is not paid  to  or  for  the  benefit  of  the
  holders  of  such obligations; and such premium and differential, to the
  extent so paid to such city, shall be used and credited by the  city  of
  New York in accordance with subdivision four-b of section twenty-three-a
  of  this  chapter as if such city had sold such mortgages or issued such
  obligations pursuant to section  twenty-three-a  of  this  chapter.  The
  corporation  shall  not  modify  or  satisfy a mortgage pursuant to this
  subdivision unless such modification or satisfaction is  first  approved
  by the supervising agency.
    22-b.  To  contract with the federal government for the sharing of any
  claim paid by the federal government on account of any  insurance  of  a
  mortgage,  provided that the corporation's share of any such claim shall
  not exceed fifty percent of the insurance benefits paid by  the  federal
  government,  and  further  provided that the corporation's share of such
  claims under any such contract shall not  exceed  five  percent  of  the
  outstanding  principal  amount  of all mortgage loans of the corporation
  insured by the federal government and included within such contract.
    23. To make loans secured by mortgages insured  or  coinsured  by  the
  federal  government  to the owners of multiple dwellings in such amounts
  as may be required for the rehabilitation of such multiple dwellings or,
  if such owner acquires the multiple dwelling for  the  purpose  of  such
  rehabilitation  or  owns the multiple dwelling subject to an outstanding
  indebtedness, in such amounts as may be required for the  cost  of  such
  acquisition or for the refinancing of such outstanding indebtedness, but
  in  no event in such amounts as would exceed the mortgage limits imposed
  by the federal government, and to regulate or restrict such owner as  to
  rents or sales, charges, capital structure, rate of return and method of
  operation and to make loans secured by mortgages insured or coinsured by
  the  federal government to the owners of projects in such amounts as may
  be required for the acquisition, construction  or  improvement  of  such
  projects,  but  in no event in such amounts as would exceed the mortgage
  limits imposed by the federal  government,  or  ninety  percent  of  the
  actual  cost of such acquisition, construction or improvement, whichever
  is less, and to regulate or restrict such owner as to  rents  or  sales,
  charges,  capital structure, rate of return and method of operation. The
  owner may, with the approval of the corporation, fix maximum rentals  to
  be  charged tenants of the dwellings in any multiple dwelling or project
  aided by a loan pursuant to this subdivision. The corporation, upon  its
  own  motion,  or  upon  application  by  the  owner  or  by  the federal
  government, may vary such rental rate from time to time so as to secure,
  together with all other income  of  the  multiple  dwelling,  sufficient
  income for it to meet within reasonable limits all necessary payments to
  be  made  by  the owner of all expenses; provided that no variation in a
  rental  rate  shall  be  effective  unless  approved  by   the   federal
  government.  The  corporation  or the department of housing preservation
  and development shall notify occupants  of  the  multiple  dwelling,  if
  there  be  any, of the contemplated rehabilitation and shall advise them
  of  the  expected  rental  increase   to   result   therefrom,   and   a
  representative   of   the  corporation  or  the  department  of  housing
  preservation and development shall meet or offer to meet at  least  once
  with  the  occupants.  The  corporation  shall promulgate such rules and
  regulations with respect to multiple  dwellings  and  projects  financed
  pursuant  to  this subdivision and the owners of such multiple dwellings
  and projects as may be necessary to carry out  the  provisions  of  this
  subdivision,  provided  that  such  rules  and regulations shall contain
  provisions as to income limitations relating to admission into occupancy

  of the dwelling units of  such  projects  to  the  same  effect  as  are
  contained  in  section  thirty-one  of this chapter and for the dwelling
  units of such other  multiple  dwellings  to  the  same  effect  as  are
  contained  in  subdivision  three  of  section  four hundred one of this
  chapter. As used in this subdivision, the term "multiple dwelling" shall
  include an existing building or structure which is to be converted  into
  a class A multiple dwelling.
    23-a.  Subject  to the provisions of any contract with noteholders and
  bondholders, (i) to make and contract for the making of  mortgage  loans
  for  the  construction  or rehabilitation of projects which the New York
  city housing authority has agreed to purchase  on  a  turnkey  basis  in
  accordance  with  a  federally  assisted  program  for the production of
  public housing as  authorized  by  the  United  States  housing  act  of
  nineteen  hundred  thirty-seven  as  amended to the date of enactment of
  this  subdivision  of  this  section,  upon  the  completion   of   such
  construction or rehabilitation, and (ii) to make and to contract for the
  making  of loans to, or to purchase loans from, banking or other lending
  institutions  for  the  purpose  of  financing  such   construction   or
  rehabilitation.
    23-b.  In  order  to  increase  the  availability of safe and sanitary
  dwelling accommodations within  the  financial  reach  of  families  and
  persons  of  low  income,  to  acquire  and  to  contract to acquire, by
  assignment  or  otherwise,  or  to  take  as  collateral  security,  any
  federally  guaranteed  security  evidencing  indebtedness  on a mortgage
  securing a loan, including any construction loan, and the receipts to be
  derived therefrom and to assign or reassign and to contract to assign or
  reassign any such security and the receipts  to  be  derived  therefrom,
  subject in each case, to the provisions of any contract with noteholders
  and bondholders;
    * 23-c. (1) Subject to the provisions of any contract with noteholders
  and bondholders (a) to make and contract for the making of loans for the
  acquisition,  construction  or  rehabilitation of housing accommodations
  containing five or more dwelling units (i) for the purpose of  providing
  housing  accommodations  for  occupancy by persons and families for whom
  the ordinary operations of private enterprise cannot provide an adequate
  supply of safe, sanitary and affordable housing accommodations  or  (ii)
  for  units located in an area designated as blighted pursuant to article
  fifteen or sixteen of the general municipal law, or as certified by  the
  New  York  city  department  of  housing preservation and development as
  being located in an area which is blighted,  and  (b)  to  make  and  to
  contract  for  the  making of loans to or to purchase loans from lending
  institutions for the  purpose  of  financing  mortgage  loans  for  such
  acquisition,  construction  or rehabilitation, and (c) to establish such
  regulatory requirements with regard to such  housing  accommodations  as
  may  be  deemed appropriate by the corporation to achieve the objectives
  of this article,  and  articles  fifteen  and  sixteen  of  the  general
  municipal  law  notwithstanding  any other provisions of this chapter to
  the contrary. Any notes and bonds issued pursuant  to  this  subdivision
  shall not be secured by any capital reserve fund established pursuant to
  section six hundred fifty-six of this article.
    (2)  With  regard  to  any  loan made pursuant to this subdivision and
  notwithstanding  the  provisions  of,  or  any  regulation   promulgated
  pursuant to, the emergency housing rent control law, the local emergency
  housing  rent  control  act,  or local law enacted pursuant thereto, the
  rent stablization law of nineteen hundred sixty-nine, or  the  emergency
  tenant  protection  act of nineteen seventy-four, the owner of a project
  otherwise subject to any such law or  act,  with  the  approval  of  the
  agency,  shall  establish the initial rent for each dwelling unit within

  the project. The corporation shall notify occupants of the  project,  if
  any,  of  any  such  proposed  rental establishment and offer to meet at
  least once with the occupants prior to its approval.
    (3)  The  powers  granted by this subdivision may be exercised only if
  (a) obligations of the corporation have been issued  to  fund  the  loan
  made  or purchased by the corporation and such obligations have received
  an investment grade rating from a recognized rating agency  or  (b)  the
  loan  made  or  purchased  by  the  corporation  is  fully secured as to
  principal and interest by insurance or a commitment  to  insure  by  the
  state  of New York mortgage agency or New York city residential mortgage
  insurance corporation or by the general credit of a bank, national bank,
  trust company, savings bank, savings  and  loan  association,  insurance
  company,  governmental  agency  of the United States, or any combination
  thereof.
    * NB Repealed June 30, 2011
    23-d. To and shall develop, promote and ensure that,  where  possible,
  minority  groups  which traditionally have been disadvantaged, and women
  are  afforded  equal  opportunity  for  contracts  in  connection   with
  development  and construction contracts for developments, facilities and
  projects financed by the issuance of bonds, notes and other  obligations
  of the corporation.
    23-e.  Subject  to the provisions of any contract with noteholders and
  bondholders, to refinance or acquire mortgage loans  made  for  multiple
  dwellings  by  private lenders pursuant to article eight-A or fifteen of
  this chapter; provided that  the  corporation  shall  not  be  permitted
  pursuant  to  this  subdivision  to acquire a mortgage loan, unless such
  acquisition is in connection with a  refinancing  of  the  property  for
  which such mortgage loan was made.
    23-f.  To  service  mortgage  loans  made  by  private or governmental
  lenders for multiple dwellings, provided that each  such  mortgage  loan
  shall  have  been  made  either (i) pursuant to this chapter, or (ii) in
  conjunction with another mortgage loan made by the city of New York.
    23-g. Subject to the provisions of any contract with  noteholders  and
  bondholders,  to  acquire  mortgage  loans  made by the city of New York
  pursuant  to  article  eight-A  of  this  chapter  or   to   acquire   a
  participation interest in such mortgage loans.
    24. To contract with any of its subsidiary corporations to render such
  services  as such subsidiary corporation may request, including, but not
  limited to, the use of the premises, personnel and personal property  of
  the  corporation,  and  to  provide for reimbursement to the corporation
  from such subsidiary corporation for any expenses  necessarily  incurred
  by the corporation in carrying out the terms of any such contract.
    25.  To do any and all things necessary or convenient to carry out its
  purposes and exercise the powers expressly given  and  granted  in  this
  article.