New York Consolidated Laws, Private Housing Finance Law - PVH § 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.