1. (1) the term housing project means a multi-family rental, cooperative or condominium housing project which:

   1. (i) is financed, at least in part, under municipal, State or Federal programs providing grants, tax incentives or other forms of financial assistance other than mortgage loans insured or guaranteed by the Federal government; or
   2. (ii) is financed, at least in part, by conventional mortgage loans or mortgage loans insured or guaranteed by the Federal government, is designed to provide a minimum of 35 dwelling units, and is designed to provide dwelling space at a maximum monthly charge per room of $70; and

2. (2) the term monthly charge per room means:

   1. (i) in the case of a rental housing project, the initial average monthly rental per room; or
   2. (ii) in the case of a cooperative or condominium housing project, the initial average monthly carrying charge per room plus the average of the amounts determined by allocating one-half of one percent of the original equity investment in the housing project by each co-operator or unit owner among the rooms occupied or to be occupied by him; and

3. (3) the term housing corporation means a corporation formed for the purpose of acquiring, constructing, owning, maintaining, operating, selling or conveying a single housing project and which shall have filed with the superintendent a written agreement subjecting itself to the supervision of the department, agreeing to make periodic reports, submitting to periodic examinations by the department at such times and in such manner as the superintendent shall require and agreeing to pay the charges for such examinations assessed against it by the superintendent in the same manner as if it were a banking organization organized under the laws of this State.

   (b) Investments in housing corporations.

   Except as the superintendent shall otherwise provide, a savings bank, individually or in participation with one or more savings banks, may invest in the stock or obligations of any housing corporation, provided that the making of such investment shall not cause:

4. (1) the aggregate amount invested by the savings bank in the stock and obligations of one such housing corporation to exceed the lesser of one percent of its assets or 10 percent of its net worth; or

5. (2) the aggregate amount so invested in all such housing corporations to exceed the lesser of five percent of its assets or 50 percent of its net worth.

   (c) Transfers of investments.

   No savings bank shall transfer or sell any stock of a housing corporation to any person or to any corporation other than a savings bank or to a corporation all of the capital stock of which is owned by not less than 20 savings banks or transfer or sell any obligation of a housing corporation to any person or to any corporation other than a savings bank, except as the superintendent shall approve in writing, unless:

6. (1) all of the stock and obligations of such housing corporation held by savings banks shall simultaneously be sold; or

7. (2) only obligations of such housing corporation continue to be held by savings banks and such obligations constitute:

   1. (i) a 100 percent interest in a first mortgage qualifying as an eligible investment under the provisions of Banking Law, section 235(6); or

   2. (ii) a security duly authorized as an investment for savings banks other than under the provisions of Banking Law, section 235(21).

      (d) Valuation on books of savings banks.

      Any investment by a savings bank in the stock and obligations of a housing corporation shall be entered on its books at the actual cost thereof and shall not thereafter be carried on its books at a valuation exceeding such cost as reduced by the greater of:

8. (1) the proportionate share of the depreciation taken by such housing corporation on the buildings and improvements owned by it which the investment of the savings bank bears to the total investment in such housing corporation; or
9. (2) amortization, commencing with the beginning of the second year after completion of the housing project undertaken by such housing corporation, at the rate of not less than two percent per annum of such cost.

(a) Definitions.

As used in this section,