The New York State Senate

§ 473. Conditions precedent to making such loans. 1. No such loan
shall be made to an owner-occupant of an existing private or multiple
dwelling unless the owner-occupant of such private or multiple dwelling
shall covenant in writing that so long as any part of such loan shall
remain unpaid: (i) the owner-occupant 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-occupant 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-occupant
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-occupant of an existing private or multiple dwelling pursuant to
this article unless the agency finds that 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.

3. The agency shall have the power to impose additional terms and
conditions precedent to make such loans.