Section 1122. Manufactured home cooperative fund contracts

1. Within the
  limit of funds available in the manufactured home cooperative fund,  the
  agency  is  hereby  authorized  to  enter  into  contracts with eligible
  applicants to provide loans which such eligible applicants shall use  to
  establish  manufactured  home  park  cooperatives through acquisition or
  infrastructure improvement or both.
    2. No such loan may be made or its  term  extended  pursuant  to  this
  article,  unless  the  agency  determines  that  the eligible applicants
  cannot afford or  obtain  the  financing  necessary  to  accomplish  the
  purposes of such loans through the ordinary unaided operation of private
  enterprise.
    3.  The  agency  shall  not enter into loans under this article except
  with an eligible applicant which has submitted a plan acceptable to  the
  agency  which  provides  that  subsequent  to  conversion to cooperative
  ownership, a majority of the manufactured home owners  or  one  or  more
  members  of  their  immediate family intend to occupy their manufactured
  homes as their primary residence.
    4. Such contracts  may  provide  for  loans  by  the  agency  for  the
  activities  to  be  carried  out  by  the  eligible  applicant under the
  contract, including participation in loans including but not limited  to
  participation in loans originated or financed by lending institutions as
  defined in section forty-two of this chapter, private or public employee
  pension  funds  or the state of New York mortgage agency. Loans shall be
  at the prevailing interest rate in the area for  long  term  residential
  mortgages or at such lower rate as the agency determines to be necessary
  for  the  project  to  be  financially  feasible. Loans shall not exceed
  ninety-five percent of the project costs including  purchase  price  and
  costs  for  infrastructure  improvement.  The  term  of  the  loan for a
  cooperative project or infrastructure improvement shall not  exceed  ten
  years  unless extended for periods not to exceed ten years in which case
  the term of the loan as extended shall not exceed thirty  years  in  the
  aggregate  and  the  amortization schedule for the loan shall not exceed
  thirty years.
    5. In determining loans pursuant to this article the agency shall give
  preference to applications based upon the following criteria:
    (a)  the  extent  to  which  park  residents   are   threatened   with
  displacement by the projected sale or closing of the existing park;
    (b)  the  scarcity of affordable alternate sites in the immediate area
  for relocation of park residents;
    (c) the  extent  to  which  manufactured  home  parks,  subsequent  to
  receiving  assistance under this article, will be owned as a cooperative
  by shareholders whose average incomes do not exceed (i) the  greater  of
  one   hundred   percent  of  the  median  income  for  the  metropolitan
  statistical area in which a project is located or one hundred percent of
  the median income for the state, or  (ii)  if  the  project  is  located
  outside  such  an area, the greater of one hundred percent of the median
  income for the county in which the project is  located  or  one  hundred
  percent of the median income for the state;
    (d)  the  extent  to  which  the proposed resident ownership structure
  provides long-term security and tenure;
    (e) the extent to which the proposed project will  be  undertaken  and
  completed in a timely fashion; and
    (f)  the  extent  to  which  the  homes  in a park are occupied by the
  manufactured home owners or members of their families.
    6. The agency shall provide for the review, at periodic intervals  not
  less than annually, of the performance of applicants receiving financial
  assistance  pursuant  to  this  article.  Such review shall, among other
  things, be for the purposes of ascertaining  conformity  to  contractual

  provisions, the financial integrity and efficiency of applicants and the
  evaluation   of  the  applicants'  activities.  Contracts  entered  into
  pursuant to this article may be terminated, funds may  be  withheld  and
  unspent  funds  recaptured  by  the agency upon a finding of substantial
  nonperformance or breach by the applicant of its obligations  under  its
  contract.