358 - Conditions and security for loans.

§ 358. Conditions and security for loans. No loan shall be made by the  New   York   state  housing  finance  agency  to  a  company  until  the  commissioner has approved the project and finds that:    (1) The company has complied  with  all  of  the  provisions  of  this  article and all applicable laws and regulations;    (2)  There is a need for a project of the type proposed in the area to  be served and that the services and facilities to  be  provided  by  the  project are consistent with such need;    (3)  The  plans  and specifications conform to the requirements of all  laws and regulations applicable thereto and assure adequate light,  air,  sanitation and fire protection and are satisfactory to him;    (4)  The  estimated revenue of the project will be sufficient to cover  all probable costs of operation and maintenance, of  fixed  charges  and  such  reserves  as  may be authorized by the commissioner or required by  the New York state housing finance agency;    (5) Provision has been made for  the  purpose  of  providing  for  the  payment  of  the  difference, if any, between the estimated project cost  and the mortgage loan; and in the event the  final  project  cost  shall  exceed  the  estimated  project  cost, the difference between such final  project cost and the mortgage loan;    (6) Provision has been made for the filing by  the  company  with  the  department  and  the  New  York  state  housing  finance  agency of such  financial statements including  an  annual  report  setting  forth  such  information as the commissioner may require; and    (7)  Provision  has  been made for the examination by the commissioner  and the New York state housing finance agency of the books  and  records  of the company.