Section 1106-A. Definitions

For  purposes of this article, the following
  terms shall have the following meanings:
    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.