§ 402. Loans to owners. 1. Notwithstanding the provisions of any\ngeneral, special or local law, a municipality, by such officer or agency\nas determined by its local legislative body, is hereby authorized:\n (a) to make or contract to make loans to the owners of existing\nmultiple dwellings within its territorial limits, subject to the\nlimitations in subdivision two of this section, in such amounts as may\nbe required for the installation of proper heating facilities, the\nincorporation of climate resiliency improvements, or elimination of\nconditions dangerous to human life or detrimental to health, including\nnuisances as defined in section three hundred nine of the multiple\ndwelling law, or other rehabilitation, preservation or improvement of\nsuch multiple dwellings, and if such owner acquires the multiple\ndwelling for the purposes of such rehabilitation, preservation or\nimprovement or owns the multiple dwelling subject to an outstanding\nindebtedness, such loans may be made exclusively for or may include such\namounts as may be required for the cost of such acquisition or for the\nrefinancing of such outstanding indebtedness, and may make temporary\nloans or advances to such owners in anticipation of the permanent\nmunicipal loans for such purposes; and\n (b) to make or contract to make grants to any owner described in\nparagraph (a) of this subdivision, on the same terms as permitted under\nsuch paragraph for a loan.\n 1-a. As used in this article, the term "loan" shall include any grant\nmade by a municipality pursuant to this article, provided, however, that\nany provision of this article concerning the repayment or forgiveness\nof, or security for, a loan shall not apply to any grant made pursuant\nto this article.\n 2-a. (a) Each permanent loan shall be secured by a bond and mortgage\nor note and mortgage upon the multiple dwelling and the land upon which\nit is situated, provided that where the multiple dwelling is held in the\ncondominium form of ownership, such loan shall be secured by a bond and\nmortgage or note and mortgage upon the condominium units rehabilitated\nor improved with such loan; where the loan is made to an owner who is a\nlessee, such loan shall be secured by a leasehold interest in such\nproperty.\n (b) Each such bond and mortgage or note and mortgage shall be repaid\nover or within a period of forty years, provided that such period may be\nextended as the agency may determine necessary to ensure the continued\naffordability or economic viability of the multiple dwelling, in such\nmanner as may be provided in such bond and mortgage or note and mortgage\nand contract. Such bond and mortgage or note and mortgage and the\ncontract in connection with such permanent and temporary loans may\ncontain such other terms and provisions not inconsistent with the\nprovisions of this article as the local legislative body or the agency\nmay deem necessary or desirable to secure repayment of the loan, the\ninterest thereon and other charges in connection therewith and to carry\nout the purposes and provisions of this article, including, but not\nlimited to, providing that the lien created by such bond and mortgage or\nnote and mortgage, and, if applicable, any regulatory agreement executed\nby the owner and the agency or restrictive covenant approved by such\nagency, may be recorded in an equal or subordinate position, or\nsubsequently made equal or subordinate, to a lien recorded by any\nprivate lender against such multiple dwelling.\n 2-b. If a loan pursuant to this article is made to a non-profit\ncompany or a housing development fund company which agrees to provide\nhousing accommodations exclusively for persons and families of low\nincome, at least thirty percent of whom are referred to it by the\nmunicipality and have prior to their initial occupancy in such\naccommodations resided in emergency shelter facilities operated by or on\nbehalf of the municipality, the agency may provide that the no
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