803 - Conditions precedent to making such loans.

§ 803. Conditions precedent to making such loans. A municipality shall  not  participate  in  a  loan pursuant to this article unless the agency  finds  that  the  area  in  which  the   existing   multiple   dwelling,  non-residential  property  or  vacant  land  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,  insanitary,  deteriorating  or  deteriorated  conditions,  an  aged  housing  stock,  or  under-utilized  non-residential property, or other factors indicating  an  inability  of  the  private  sector unaided to cause such rehabilitation, conversion or  construction to be made and unless the agency has notified occupants  of  the  existing  multiple  dwelling of the contemplated rehabilitation and  has advised them of the expected rental increase to result therefrom and  a representative of the agency has met or has offered to meet  at  least  once with the occupants.