ยง 212. Loans to owners. 1. Notwithstanding the provisions of any
general, special or local law, a municipality, by its local legislative
body, may make or contract to make loans to the owners of existing
multiple dwellings within its territorial limits, in such amounts as may
be required for the installation of proper heating facilities, or
elimination of conditions dangerous to human life or detrimental to
health, including nuisances as defined, in section three hundred nine of
the multiple dwelling law, or other rehabilitation or improvement of
such multiple dwellings, and may make temporary loans or advances to
such owners in anticipation of the permanent municipal loans for such
purposes.
2. Each permanent loan shall be secured by a bond and mortgage or note
and mortgage upon the multiple dwelling and the land upon which it is
situated. The amount of any such loan, together with the amount of all
prior loans and encumbrances, shall not exceed ninety per centum of the
value of the property, after completion of the installation of proper
heating facilities, or elimination of such conditions or other
rehabilitation or improvement, as estimated by the agency. Each such
bond and mortgage or note and mortgage shall be repaid over or within a
period of twenty years in such manner as may be provided in such bond
and mortgage or note and mortgage and contract but in no case to exceed
the probable life of the multiple dwelling which is hereby determined to
be twenty years. Such bond and mortgage or note and mortgage and the
contract in connection with such permanent and temporary loans may
contain such other terms and provisions not inconsistent with the
provisions of this article as the local legislative body may deem
necessary or desirable to secure repayment of the loan, the interest
thereon and other charges in connection therewith and to carry out the
purposes and provisions of this article.
3. The bond or note issued by the owner of such multiple dwelling and
the mortgage relating thereto 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. Such bond or note and mortgage may
contain such other clauses and provisions as the agency shall require.
4. The agency may charge the owner of such multiple dwelling
reasonable fees for financing, regulation, supervision and audit. Such
fees shall be kept by the municipality in a separate fund to be known as
the housing rehabilitation fund and shall be used to pay for the
expenses of the municipality in administering and carrying out the
provisions of this article.