§ 472. Loans to owners. 1. Notwithstanding the provisions of any
general, special or local law, a municipality, acting through an agency,
is authorized:

(a) to make, or contract to make, loans to owners of one to four unit
existing private or multiple dwellings within its territorial limits,
subject to the limitation of subdivisions two through seven of this
section, in such amounts as shall be required for the rehabilitation,
improvement or acquisition of such dwellings provided, that any such
rehabilitation or improvement may include climate resiliency
improvements. Such loans may also be made exclusively for or include the
refinancing of the outstanding indebtedness of such dwellings, and the
municipality may make temporary loans or advances to such owners in
anticipation of permanent loans for such purposes; and

(b) to make or contract to make grants to any owner described in
paragraph (a) of this subdivision, on the same terms as permitted under
such paragraph for a loan.

1-a. As used in this article, the term "loan" shall include any grant
made by a municipality pursuant to this article, provided, however, that
provisions of this article concerning the repayment or forgiveness of,
or security for, a loan shall not apply to any grant made pursuant to
this article.

2. Each loan shall be evidenced by a note executed by the owner of the
existing dwelling. Repayment of each such note shall be within a period
of forty years, provided that such period may be extended as the agency
may determine necessary to ensure the continued affordability or
economic viability of the existing dwelling. The repayment shall be made
in such manner as may be provided in such note and contract, if any, in
connection with such loan, and may authorize such owner, with the
consent of the agency, to prepay the principal of the loan subject to
such terms and conditions as therein provided. In order to make any such
loan affordable to the owner, the agency may provide in such note and
contract that all of the outstanding principal of said loan may be
self-liquidated over a period of not less than fifteen years of
continuous compliance by the owner with a regulatory agreement or other
restrictive covenant with or approved by the agency and upon the
satisfaction of any additional conditions specified therein. Such note
and contract may contain such other terms and provisions not
inconsistent with the provisions of this article as the agency may deem
necessary or desirable to secure repayment of the loan, the interest
thereon, if any, and other charges in connection therewith, and to carry
out the purposes and provisions of this article, including, but not
limited to, providing that the lien created by the note and mortgage,
and, if applicable, any regulatory agreement executed by such owner and
agency, or restrictive covenant approved by such agency, may be recorded
in an equal or subordinate position, or subsequently made equal or
subordinate, to a lien recorded by any private lender against such
existing dwelling.

3. The agency in its discretion may require that the owner execute,
acknowledge and deliver a uniform commercial code financing statement
for the real property improvement to be in such form as the agency shall
specify and in accordance with the requirements of section 9--502 of the
uniform commercial code of the state of New York. Said financing
statement shall be filed or recorded without charge in accordance with
the provisions of paragraph one of subsection (a) of section 9--501 of
the uniform commercial code, and from the date of such filing the
municipality shall have a lien against said real property improvement
for the amount advanced or so much thereof as remains unpaid together
with the interest thereon. Upon payment of all sums advanced by the
municipality and interest thereon, and upon demand of the then record
owner of the real property, the agency shall deliver a copy of the
financing statement with an endorsement thereon that the lien is
satisfied. Upon filing of such copy in the office where the financing
statement was filed and upon payment of the proper fee therefor, the
lien of such financing statement shall be discharged.

4. The agency may require the owner to execute a mortgage as security
for a loan in lieu of or in addition to a financing statement as
provided in subdivision three of this section. Such mortgage shall
contain such terms and provisions not inconsistent with the provisions
of this article as the agency shall deem necessary or desirable to
secure repayment of the loan.

5. Loans may be made with respect to a one to four unit private or
multiple dwelling encumbered by mortgages, provided no mortgage is in
default, except if such default shall be remedied by the proposed
rehabilitation or improvement.

6. The agency may require the payment of charges by the owner of such
existing private or multiple dwelling in consideration for the
financing, regulation, supervision and audit of such loan. Such charges
shall be paid into the treasury of the municipality requiring the
charges and shall be paid and deposited in the general fund of any such
municipality.

7. In making a loan under this article, an agency shall have the power
to participate in a loan made by any private investor The agency may
enter into an agreement with a private investor to deposit funds with
such private investor to cover the agency's participation in loans to
owners of one to four unit existing private and multiple dwellings with
such funds advanced by such private investor to owners of existing
dwellings. The portion of the loan funded by the agency may be equal to
or subordinate in lien to the portion of the loan funded by the private
investor and the note and contract may contain such terms with respect
to interest rate, if any, and time of payment of principal and interest
as determined by the agency. The agency may make provision, either in
the mortgage or mortgages or by separate agreement, for the performance
by the private investor of such services as are generally performed by a
banking institution which itself holds a mortgage, including, without
limitation, construction loan advances, construction supervision,
initiation of foreclosure proceedings, procurement of insurance, and all
other matters in connection with the financing, supervision, regulation
and audit of any such loan. In order to make the loan affordable to the
owner, the agency may provide an interest reduction subsidy pursuant to
section four hundred seventy-five of this article, or may provide that
all or part of the agency's portion of the outstanding principal of any
such participation loan may be self-liquidated over a period of not less
than fifteen years of continuous compliance by the owner with a
regulatory agreement or other restrictive covenant with or approved by
the agency and upon the satisfaction of any additional conditions
specified therein.