Section 1680.401a - Rental housing programTo accomplish the declared purpose of this act of providing rental housing to persons and families of low and moderate income the agency is hereby authorized to:
(1) Make loans secured by real property or a leasehold estate, including mortgages or such other security as the agency determines to be necessary, to finance projects designed and planned to be available for low and moderate income persons and families or elderly persons and others.(2) Sell, at public or private sale, with or without bidding, any mortgage or other obligation securing a mortgage loan, including sales of mortgages to the United States of America or the Commonwealth or any agencies, instrumentalities or departments thereof.(3) Consent, subject to the provisions of any contract with noteholders or bondholders, whenever it deems it necessary or desirable in the fulfillment of the purposes of this act, to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, or any other terms of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the agency is a party.(4) In the event of a violation by the mortgagor of the terms of any agreement between the agency and the eligible mortgagor or in the event of a violation by the mortgagor of this act or of the terms of the mortgage loan agreement or of any rules and regulations of the agency duly promulgated pursuant to this act, or in the event the agency shall determine that any loan, or part thereof, made pursuant to this act is in jeopardy of not being repaid, the agency may remove any or all of the existing owners, partners, officers or directors of such mortgagor and appoint such person or persons who the agency in its sole discretion deems advisable, including officers or employes of the agency, as new officers or directors to serve in place of those removed. Officers or directors so appointed need not be stockholders or meet other qualifications which may be prescribed by the certificate of incorporation or bylaws of such mortgagor. In the absence of fraud or bad faith, officers or directors so appointed shall not be personally liable for debts, obligations or liabilities of such mortgagor. Officers or directors so appointed shall serve only for a period coexistent with the duration of such violation or until the agency is assured in a manner satisfactory to it that such violation, or violations of a similar nature, have not and will not reoccur. Officers or employes of the agency who are so appointed as officers or directors shall serve in such capacity without compensation, but shall be entitled to be reimbursed, if and as the certificate of incorporation or bylaws of such mortgagor may provide, for all necessary expenses incurred in the discharge of their duties as officers or directors so appointed of such mortgagor and such other necessary expenses incurred in the discharge of their duties as officers or directors of such eligible mortgagor as determined by the agency.1959, Dec. 3, P.L. 1688, § 401-A, added 1972, Dec. 5, P.L. 1259, No. 282, § 4, eff. Jan. 11, 1973. Amended 1976 , April 7, P.L. 73, No. 33, § 4, imd. effective; 1984 , May 31, P.L. 364, No. 73, § 1, imd. effective.