N.Y. PVH Law § 78

§ 78. Consideration for capital and bonds. No housing company which is\na corporation shall issue shares, nor shall a housing company which is a\npartnership credit sums to the partners on capital account, nor shall a\nhousing company which is a trust subject amounts to the trust, and no\nhousing company shall issue bonds or income debentures, except for money\nor property actually received for the use and lawful purposes of the\nhousing company, provided, however, that a mutual housing company may\nissue shares for home owners purchase notes if the purchase transaction\nhas received the written endorsement of the commissioner in accordance\nwith supplementary rules and regulations of the commissioner made\ntherefor and if at least two hundred dollars in money or property is\nreceived by such mutual housing company toward the issuance of such\nshares. The consideration for all capital, bonds or income debentures\nbased upon property received shall equal a valuation approved by the\ncommissioner and such valuation shall be used in computing actual or\nestimated cost.\n In no event shall the capital of, and income debentures issued by, the\nhousing company be less than the total of twenty per centum of the\nactual cost, as defined in this article, of any project or projects\nundertaken pursuant to this article.\n The commissioner may permit capital to be increased, or income\ndebentures to be issued, to an amount not exceeding three per centum of\nthe estimated total cost, or three per centum of the actual cost, if\nactual cost should exceed estimated cost, of a project for working\ncapital to be used in connection with such project.\n