Section 358. Conditions and security for loans

No loan shall be made by the
  New   York   state  housing  finance  agency  to  a  company  until  the
  commissioner has approved the project and finds that:
    (1) The company has complied  with  all  of  the  provisions  of  this
  article and all applicable laws and regulations;
    (2)  There is a need for a project of the type proposed in the area to
  be served and that the services and facilities to  be  provided  by  the
  project are consistent with such need;
    (3)  The  plans  and specifications conform to the requirements of all
  laws and regulations applicable thereto and assure adequate light,  air,
  sanitation and fire protection and are satisfactory to him;
    (4)  The  estimated revenue of the project will be sufficient to cover
  all probable costs of operation and maintenance, of  fixed  charges  and
  such  reserves  as  may be authorized by the commissioner or required by
  the New York state housing finance agency;
    (5) Provision has been made for  the  purpose  of  providing  for  the
  payment  of  the  difference, if any, between the estimated project cost
  and the mortgage loan; and in the event the  final  project  cost  shall
  exceed  the  estimated  project  cost, the difference between such final
  project cost and the mortgage loan;
    (6) Provision has been made for the filing by  the  company  with  the
  department  and  the  New  York  state  housing  finance  agency of such
  financial statements including  an  annual  report  setting  forth  such
  information as the commissioner may require; and
    (7)  Provision  has  been made for the examination by the commissioner
  and the New York state housing finance agency of the books  and  records
  of the company.