N.Y. PBG Law § 212

§ 212. Loans to owners. 1. Notwithstanding the provisions of any\ngeneral, special or local law, a municipality, by its local legislative\nbody, may make or contract to make loans to the owners of existing\nmultiple dwellings within its territorial limits, in such amounts as may\nbe required for the installation of proper heating facilities, or\nelimination of conditions dangerous to human life or detrimental to\nhealth, including nuisances as defined, in section three hundred nine of\nthe multiple dwelling law, or other rehabilitation or improvement of\nsuch multiple dwellings, and may make temporary loans or advances to\nsuch owners in anticipation of the permanent municipal loans for such\npurposes.\n 2. Each permanent loan shall be secured by a bond and mortgage or note\nand mortgage upon the multiple dwelling and the land upon which it is\nsituated. The amount of any such loan, together with the amount of all\nprior loans and encumbrances, shall not exceed ninety per centum of the\nvalue of the property, after completion of the installation of proper\nheating facilities, or elimination of such conditions or other\nrehabilitation or improvement, as estimated by the agency. Each such\nbond and mortgage or note and mortgage shall be repaid over or within a\nperiod of twenty years in such manner as may be provided in such bond\nand mortgage or note and mortgage and contract but in no case to exceed\nthe probable life of the multiple dwelling which is hereby determined to\nbe twenty years. Such bond and mortgage or note and mortgage and the\ncontract in connection with such permanent and temporary loans may\ncontain such other terms and provisions not inconsistent with the\nprovisions of this article as the local legislative body may deem\nnecessary or desirable to secure repayment of the loan, the interest\nthereon and other charges in connection therewith and to carry out the\npurposes and provisions of this article.\n 3. The bond or note issued by the owner of such multiple dwelling and\nthe mortgage relating thereto may authorize such owner, with the consent\nof the agency, to prepay the principal of the loan subject to such terms\nand conditions as therein provided. Such bond or note and mortgage may\ncontain such other clauses and provisions as the agency shall require.\n 4. The agency may charge the owner of such multiple dwelling\nreasonable fees for financing, regulation, supervision and audit. Such\nfees shall be kept by the municipality in a separate fund to be known as\nthe housing rehabilitation fund and shall be used to pay for the\nexpenses of the municipality in administering and carrying out the\nprovisions of this article.\n