Section 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.