N.Y. Private Housing Finance Law § 1106-e

§ 1106-e. Reserve fund. There shall be a reserve fund for each project\nwhich in no event shall initially be less than five percent of the\nturnkey/enhanced rental project costs, exclusive of any reserve fund.\nSuch reserve fund may be provided by the corporation or any other source\nand, if provided by another source, shall be provided in cash or the\npayment of such cash shall be assured by deposit of adequate marketable\ncollateral prior to the payment by the corporation of any project costs,\nexcluding advances for planning costs.\n