Section 256. Mortgage loans

The New York state housing finance agency may
  enter into contracts for loans to community development corporations for
  one or more projects.  No loan shall be made in an amount  greater  than
  ninety-five  per  centum of the project cost, plus working capital in an
  amount not to exceed two per centum of the project cost. Any  such  loan
  shall  be secured by a first mortgage lien upon all of the real property
  of which the project consists and upon  all  fixtures  and  articles  of
  personal  property attached to or used in conjunction with the operation
  of such project. The agency may make temporary loans or  advances  to  a
  community  development  corporation  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  bonds  sold  by  the  agency  pursuant  to the
  provisions of section forty-six of this chapter.