§ 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.