N.Y. PBG Law § 70

§ 70. State loans. The commissioner may, in the name of the state,\nenter into contracts for loans to an authority or a municipality for one\nor more projects, though a project has received or will receive aid from\nany other source, except the federal government. All such contracts\nshall be subject to approval by the state comptroller, and by the\nattorney-general as to form. Any such loan shall be in such amount as\nthe commissioner, in his discretion, may deem necessary to insure the\ncompletion, availability for lawful occupancy and use of the project. No\nloan shall be made in an amount greater than the project cost, plus\nworking capital in an amount not to exceed two per centum of the project\ncost or one hundred thousand dollars, whichever is less, nor until the\nmunicipal comptroller and local legislative body have attached their\nseparate approvals to the loan contract. The commissioner may make\ntemporary loans or advances to a housing authority in anticipation of\nsuch loan and no such temporary loan or advance shall be deemed to\nconstitute part of such loan unless such temporary loan or advance has\nbeen made out of the proceeds of definitive housing bonds sold by the\nstate pursuant to section sixty of the state finance law.\n