§ 44-c. Federally-aided mortgage loans. 1. In addition to the powers
of the agency to make mortgage loans to companies organized pursuant to
article two of this chapter and notwithstanding any limitations
contained in such article or in this article in connection with mortgage
loans made to such companies, the agency may make or finance the making
of a federally-aided mortgage loan to the owner of a project upon such
terms and conditions not inconsistent with the provisions of this
section as it shall require, the proceeds of which are substantially to
be used to finance the construction, reconstruction, rehabilitation or
improvement of a project intended to be occupied by three or more
families. A federally-aided mortgage loan made or financed by the agency
shall not exceed an amount equal to the lesser of (i) the maximum
mortgage loan authorized or approved by the federal government or (ii)
one hundred percent of the development cost of the project approved by
the agency.

2. No federally-aided mortgage loan shall be made or financed to a
company organized pursuant to article two of this chapter unless the
commissioner has made the findings required by such article. No
federally-aided mortgage loan shall be made or financed to any other
person, firm, corporation, partnership or association unless (a) the
commissioner finds that (i) the project is consistent with the needs of
the state and the county, city, town or village in which it is located,
or with a plan or undertaking for the clearance, replanning,
reconstruction or rehabilitation of a substandard and insanitary area or
areas, and (ii) the plans and specifications for the project conform to
all applicable federal, state and local laws, ordinances, rules,
regulations or requirements, (in making such finding the commissioner
may rely upon approvals, consents and certifications of governmental
authorities exercising jurisdiction over the project, including the
federal and state government, and any subdivision, agency, bureau, board
or commission thereof), and (b) the agency finds that (i) the estimated
revenues of the project will be sufficient to cover all probable costs
of operations and maintenance, all installments of principal and
interest on the indebtedness relating to the project, taxes, and such
other expenses, including the maintenance of reserves, as may be
projected or required by the agency or the federal government, and (ii)
the project is to be substantially occupied by persons or families of
low-income. In determining whether a project will be substantially
occupied by persons or families of low-income the agency may consider
and rely upon the purpose of the federal program of mortgage insurance,
co-insurance, or housing assistance payments in connection with which
the mortgage loan is made.

3. A company organized pursuant to article two of this chapter which
subsequent to the first day of June, nineteen hundred seventy-nine has
obtained a commitment from the agency to make or finance the making of a
federally-aided mortgage loan and the project of such company shall not
be subject to any restrictions, limitation or procedure imposed by or
pursuant to such article relating to any matter which is the subject of
any restriction, limitation or procedure imposed by or pursuant to any
applicable law, regulation or requirement of the federal government or
agreement entered into pursuant thereto.

4. As used in this section or in connection with a federally-aided
mortgage loan the term project shall mean a specific work or
improvement, whether or not to effectuate all or any part of a plan, and
shall include the lands, buildings and improvements acquired, owned,
constructed, managed or operated to provide dwelling accommodations and
such incidental and appurtenant commercial, recreational and community
facilities as may be approved by the agency.