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Forming an Owner Corporation

It is important to form the corporation early (HUD requires this to be done within 30 days of the fund reservation letter) because the corporation must be established by the time of submission of the firm commitment application. Obtaining approvals to establish the corporation may also take time, particularly if it has to undergo review by one or more state or local public agencies. The project attorney takes the lead in submitting the certificate of incorporation to the New York State Department of State for final approval after all other preliminary sign offs have been obtained. In New York City, proposed corporations for Section 202 projects typically seek approval first from the New York City Department of Housing Preservation and Development (HPD). HPD will review the certificate as to form and will also review detailed disclosure forms submitted for each named director of the owner corporation as well as disclosure information for the sponsor and proposed owner entity. Upon approval by HPD, the certificate is then submitted to the N.Y. Department of State for approval.