N.Y. PBH Law § 1164

§ 1164. Inspection and certification. The corporation shall provide\nthe means of ensuring compliance by recipients with each financing\nagreement by:\n 1. Retaining the right to inspect and review work on each eligible\nproject in progress and upon completion, and determining whether such\nwork was undertaken and completed in compliance with all relevant plans\nand the terms of such financing agreement;\n 2. Retaining the right to disburse or refuse to disburse payments to a\nrecipient pursuant to a financing agreement;\n 3. Retaining the right to disburse or refuse to disburse payments to a\nrecipient pursuant to a financing agreement based upon the\ndeterminations of any review or audit;\n 4. Establishing remedies if work on an eligible project has not been\ncompleted in accordance with all relevant plans and the terms of such\nfinancing agreement due to factors within the recipient's control; and\n 5. Requiring a recipient to maintain project accounts with respect to\nany eligible project.\n Nothing herein shall be construed to affect or diminish the general\nauthority of the department to inspect and review the work on any\nproject financed pursuant to this title, or to inspect the records\nrelating to such project, for the purpose of determining compliance with\nany other provisions of this chapter.\n