N.Y. Public Housing Law § 212: Loans to owners

§ 212. Loans to owners. 1. Notwithstanding the provisions of any

general, special or local law, a municipality, by its local legislative

body, may make or contract to make loans to the owners of existing

multiple dwellings within its territorial limits, in such amounts as may

be required for the installation of proper heating facilities, or

elimination of conditions dangerous to human life or detrimental to

health, including nuisances as defined, in section three hundred nine of

the multiple dwelling law, or other rehabilitation or improvement of

such multiple dwellings, and may make temporary loans or advances to

such owners in anticipation of the permanent municipal loans for such

purposes.

2. Each permanent loan shall be secured by a bond and mortgage or note

and mortgage upon the multiple dwelling and the land upon which it is

situated. The amount of any such loan, together with the amount of all

prior loans and encumbrances, shall not exceed ninety per centum of the

value of the property, after completion of the installation of proper

heating facilities, or elimination of such conditions or other

rehabilitation or improvement, as estimated by the agency. Each such

bond and mortgage or note and mortgage shall be repaid over or within a

period of twenty years in such manner as may be provided in such bond

and mortgage or note and mortgage and contract but in no case to exceed

the probable life of the multiple dwelling which is hereby determined to

be twenty years. Such bond and mortgage or note and mortgage and the

contract in connection with such permanent and temporary loans may

contain such other terms and provisions not inconsistent with the

provisions of this article as the local legislative body may deem

necessary or desirable to secure repayment of the loan, the interest

thereon and other charges in connection therewith and to carry out the

purposes and provisions of this article.

3. The bond or note issued by the owner of such multiple dwelling and

the mortgage relating thereto may authorize such owner, with the consent

of the agency, to prepay the principal of the loan subject to such terms

and conditions as therein provided. Such bond or note and mortgage may

contain such other clauses and provisions as the agency shall require.

4. The agency may charge the owner of such multiple dwelling

reasonable fees for financing, regulation, supervision and audit. Such

fees shall be kept by the municipality in a separate fund to be known as

the housing rehabilitation fund and shall be used to pay for the

expenses of the municipality in administering and carrying out the

provisions of this article.