ยง 696-d. Neighborhood improvement projects. 1. As used in this section
the term "neighborhood improvement project" shall mean any
non-residential use permitted by local zoning.
2. Notwithstanding the provisions of any general, special or local
law, the agency in a city having a population of one million or more is
hereby authorized to make or contract to make mortgage loans or to
participate with another lender in the making of mortgage loans for the
development of any neighborhood improvement project that such agency
determines to be an improvement associated with the construction or
rehabilitation of private or multiple dwellings. Real property assisted
with a loan pursuant to this section shall be located: (i) in an urban
development action area; (ii) in proximity to an urban development
action area; or (iii) in proximity to an urban development action area
project for which the area designation requirement was waived pursuant
to section six hundred ninety-three of this article.
3. Any loan made in accordance with this section shall be secured by a
note and mortgage upon the property improved. Such note and mortgage
shall specify the term and manner of repayment of such loan, and may
authorize the owner, with the consent of such agency, to prepay the
principal of the loan subject to such terms and conditions as therein
provided. Such note and mortgage may contain such other terms and
conditions not inconsistent with the provisions of this article as such
agency may deem necessary or desirable to carrying out the purposes and
provisions of this article, including, but not limited to: provisions
concerning the repayment of the loan, the interest, if any, thereon, and
other charges in connection therewith.
4. After June thirtieth, two thousand twelve, authorization to make or
contract to make loans or to participate in the making of loans pursuant
to the provisions of this section and subdivision forty-one-d of
paragraph a of section 11.00 of the local finance law shall be
restricted to loans made only within targeted commercial corridors
designated by the agency prior to June thirtieth, two thousand ten.