N.Y. Private Housing Finance Law § 256

§ 256. Mortgage loans. The New York state housing finance agency may\nenter into contracts for loans to community development corporations for\none or more projects. No loan shall be made in an amount greater than\nninety-five per centum of the project cost, plus working capital in an\namount not to exceed two per centum of the project cost. Any such loan\nshall be secured by a first mortgage lien upon all of the real property\nof which the project consists and upon all fixtures and articles of\npersonal property attached to or used in conjunction with the operation\nof such project. The agency may make temporary loans or advances to a\ncommunity development corporation in anticipation of such loan and no\nsuch temporary loan or advance shall be deemed to constitute part of\nsuch loan unless such temporary loan or advance has been made out of the\nproceeds of definitive bonds sold by the agency pursuant to the\nprovisions of section forty-six of this chapter.\n