§ 304. Purposes, powers and operation. 1. The purpose of the\ncorporation shall be to assist, promote, encourage and stimulate the\ndevelopment and rehabilitation of blighted areas by rendering financial\nassistance in the construction, rehabilitation or purchase of housing\naccommodations in blighted or deteriorating urban areas in this state by\nmaking first mortgage loans in areas designated by the corporation, such\nloans to be made on a sound economic basis by the application of sound\nmortgage lending principles.\n 2. It is not the intention or the purpose of the powers herein granted\nto take from banking or insurance organizations any such loans or\ncommitments as may be desired by such organizations generally in the\nordinary course of their business; provided however, that the\ncorporation need not make any specific inquiry or find as a fact that\nany banking or insurance organization desires to make any such loan.\n 3. In furtherance of the purpose set forth in subdivision one of this\nsection, and in addition to the powers conferred on stock corporations\nby general laws, the corporation shall, subject to the restrictions and\nlimitations contained in this article, have the following powers:\n (a) To issue and sell for cash capital stock of the corporation.\n (b) To issue and sell its debentures bearing such interest rates and\nhaving such maturities and other terms and provisions as may be\ndetermined by the board of directors of the corporation.\n (c) To invest in bonds and mortgages or notes and mortgages upon\nimproved and unencumbered real property in areas in this state\ndesignated by the board of directors of the corporation as blighted,\nover-crowded, or deteriorating areas, subject to the following\nconditions:\n (i) The board of directors shall be satisfied with respect to each\nloan that it is economically sound.\n (ii) No such loan shall be in an amount in excess of eighty per centum\nof the corporation's appraised value of such real property, except that\nsuch loan may exceed eighty per centum when guaranteed or insured by the\nfederal government or any agency thereof.\n (iii) Any appraisal of such property shall be based on its long-term\neconomic value with due consideration being given, among other factors,\nto its physical maintenance and, in the case of income-producing\nproperties, to its stabilized rental value after adequate vacancy\nallowances. Except in cases of new construction no appraisal of an\nincome-producing property shall be undertaken by the corporation unless\nit has first been supplied by the loan applicant with a current rent\nroll and statement of income and expense for the twelve-month period\npreceding the date of the loan application, certified by such loan\napplicant and in form and substance satisfactory to the corporation.\n (iv) No loan shall be made on any existing housing accommodation\nunless (a) such housing accommodation is in physical condition\nsatisfactory to the corporation or (b) the loan applicant is committed\nto restore such housing accommodation to satisfactory condition prior to\nthe loan closing, or, at the discretion of the corporation, within a\nspecified period after closing, out of the proceeds of the loan.\n (v) No loan shall be made on a housing accommodation unless (a) such\nhousing accommodation has a suitable heating system satisfactory to the\ncorporation, or (b) the loan applicant is committed to install suitable\nheating facilities out of the proceeds of such loan.\n (vi) Any such loan shall be for one or more of the following purposes\nonly:\n A. To finance the improvement or rehabilitation of an existing housing\naccommodation.\n B. To consolidate, refinance or liquidate existing mortgage\nindebtedness on a housing accommodation.\n C. To finance the bona fide purchase of a housing accommodation,\nprovided that except in cases of loans insured or guaranteed by the\nfederal government or any agency thereof, the purchaser of the rea
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