§ 257. Conditions and security for loans. 1. No loan shall be made to
a community development corporation for a project unless (a) the
planning commission, if any, of the municipality has approved the
project; (b) the local legislative body of the municipality, after a
public hearing, has approved the project and has enacted or will enact
regulations or appropriate restrictions adequately protecting the
project against future uses likely to depreciate unduly the value of
such project and has, by resolution, found that the project will aid in
the replanning, reconstruction or redevelopment of an urban renewal
area, as defined in article fifteen of the general municipal law, or
will provide facilities incidental or appurtenant to an urban renewal
project, as defined in article fifteen of the general municipal law, and
(c) the commissioner has found that:

(i) the estimated revenues of the project or the monies of the
corporation will be sufficient to cover all probable costs of operation
and maintenance, all fixed charges and operating reserves and
depreciation reserves if any;

(ii) the plans and specifications conform to the requirements of all
laws applicable thereto and assure light, air, sanitation and fire
protection;

(iii) the project is in conformity with an approved urban renewal
plan, as defined in article fifteen of the general municipal law.