Section 70. State loans

The commissioner may, in the name of the state,
  enter into contracts for loans to an authority or a municipality for one
  or more projects, though a project has received or will receive aid from
  any other source, except the  federal  government.  All  such  contracts
  shall  be  subject  to  approval  by  the  state comptroller, and by the
  attorney-general as to form.  Any such loan shall be in such  amount  as
  the  commissioner,  in  his discretion, may deem necessary to insure the
  completion, availability for lawful occupancy and use of the project. No
  loan shall be made in an amount greater  than  the  project  cost,  plus
  working capital in an amount not to exceed two per centum of the project
  cost  or  one hundred thousand dollars, whichever is less, nor until the
  municipal comptroller and local legislative  body  have  attached  their
  separate  approvals  to  the  loan  contract.  The commissioner may make
  temporary loans or advances to a housing authority  in  anticipation  of
  such  loan  and  no  such  temporary  loan or advance shall be deemed to
  constitute part of such loan unless such temporary loan or  advance  has
  been  made  out  of the proceeds of definitive housing bonds sold by the
  state pursuant to section sixty of the state finance law.