N.Y. General Municipal Law § 696-d: Neighborhood improvement projects

§ 696-d. Neighborhood improvement projects. 1. As used in this section

the term "neighborhood improvement project" shall mean any

non-residential use permitted by local zoning.

2. Notwithstanding the provisions of any general, special or local

law, the agency in a city having a population of one million or more is

hereby authorized to make or contract to make mortgage loans or to

participate with another lender in the making of mortgage loans for the

development of any neighborhood improvement project that such agency

determines to be an improvement associated with the construction or

rehabilitation of private or multiple dwellings. Real property assisted

with a loan pursuant to this section shall be located: (i) in an urban

development action area; (ii) in proximity to an urban development

action area; or (iii) in proximity to an urban development action area

project for which the area designation requirement was waived pursuant

to section six hundred ninety-three of this article.

3. Any loan made in accordance with this section shall be secured by a

note and mortgage upon the property improved. Such note and mortgage

shall specify the term and manner of repayment of such loan, and may

authorize the owner, with the consent of such agency, to prepay the

principal of the loan subject to such terms and conditions as therein

provided. Such note and mortgage may contain such other terms and

conditions not inconsistent with the provisions of this article as such

agency may deem necessary or desirable to carrying out the purposes and

provisions of this article, including, but not limited to: provisions

concerning the repayment of the loan, the interest, if any, thereon, and

other charges in connection therewith.

4. After June thirtieth, two thousand twelve, authorization to make or

contract to make loans or to participate in the making of loans pursuant

to the provisions of this section and subdivision forty-one-d of

paragraph a of section 11.00 of the local finance law shall be

restricted to loans made only within targeted commercial corridors

designated by the agency prior to June thirtieth, two thousand ten.