N.Y. Private Housing Finance Law § 473: Conditions precedent to making such loans

§ 473. Conditions precedent to making such loans. 1. No such loan

shall be made to an owner of an existing private or multiple dwelling

unless the owner of such private or multiple dwelling shall covenant in

writing that so long as any part of such loan shall remain unpaid or any

requirement imposed as a condition for making such loan that survives

the repayment of such loan, including, but not limited to, in a

regulatory agreement executed by such owner and the agency or a

restrictive covenant approved by such agency, remains in effect: (i) the

owner or managing agent or operator of such dwelling shall permit the

duly authorized officers, employees, agents or inspectors of the agency

to enter in or upon and inspect such private or multiple dwelling at all

reasonable hours; (ii) the agency by such duly authorized

representatives as aforesaid shall have full power to investigate into

and order the owner of such dwelling to furnish such reports and

information as it may require concerning such rehabilitation or

improvement and shall have full power to audit the books of said owner

with respect to such matters; and (iii) if the property to be

rehabilitated is a multiple dwelling, the owner will submit to the

agency annually a statement of income and expenses of such dwelling, in

such form as shall be approved by the agency.

2. A municipality shall neither make nor participate in a loan to an

owner of an existing private or multiple dwelling pursuant to this

article unless the agency finds that (i) the area in which such dwelling

is situated is a blighted, deteriorated or deteriorating area or has a

blighting influence on the surrounding area, or is in danger of becoming

a slum or a blighted area because of the existence of substandard,

unsanitary, deteriorating or deteriorated conditions, an aged housing

stock, or other factors indicating an inability of the private sector to

cause such rehabilitation to be made; or (ii) the owner of such private

or multiple dwelling is a person or family of low income.

3. The agency shall have the power to impose additional terms and

conditions precedent to make such loans.