§ 802. Participation loans to owners. 1. (a) Notwithstanding the\nprovisions of any general, special or local law, one or more private\ninvestors and a municipality, acting through its agency, shall have the\npower to participate and invest in making loans to the owners of\nexisting multiple dwellings or to the owners of non-residential property\nor to the owners of vacant land subject to the limitations of\nsubdivisions two through seven of this section, in such amounts as shall\nbe required for (i) the rehabilitation of such existing multiple\ndwellings or for the conversion of such non-residential property or for\nthe construction of new multiple dwellings on such vacant land, provided\nthat such rehabilitation, conversion or construction may include climate\nresiliency improvements, and if any such owner acquires the existing\nmultiple dwelling or the non-residential property or the vacant land for\nthe purpose of such rehabilitation, conversion or construction or owns\nthe existing multiple dwelling or the non-residential property or the\nvacant land subject to an outstanding indebtedness, such loans may be\nmade exclusively for or may include such amounts as may be required for\nthe cost of such acquisition or for the refinancing of such outstanding\nindebtedness, (ii) providing site improvements located on the property\non which such existing multiple dwellings are located or on such\nnon-residential property or vacant land or in a public right-of-way,\nincidental or appurtenant to such rehabilitation, conversion or\nconstruction, including, but not limited to, water and sewer facilities,\nsidewalks, landscaping, parks and open space, social, recreational,\ncommunal and other non-residential facilities and the outfitting\nthereof, the curing of problems caused by abnormal site conditions,\nexcavation and construction of footings and foundations and other\nimprovements associated with the provision of infrastructure for housing\naccommodations, or (iii) providing for other costs of developing housing\naccommodations, and such private investors and a municipality may\njointly participate or invest in the making of temporary loans or\nadvances to such owners in anticipation of the permanent participation\nloans for such purposes.\n (b) Notwithstanding the provisions of any general, special or local\nlaw, and in addition to the power to make or contract to make\nparticipation loans granted by paragraph (a) of this subdivision, the\nmunicipality, acting through its agency, and the New York city housing\ndevelopment corporation shall each have the power to make or contract to\nmake loans or grants to any owner described in paragraph (a) of this\nsubdivision without the participation of a private investor, on the same\nterms as permitted under such paragraph for a participation loan.\n 2. A municipality may utilize federal grant funds or state grant funds\nor any municipal funds to finance its participation or investment in a\nloan pursuant to this article. This subdivision shall not apply to any\nparticipation in a loan by the New York city housing development\ncorporation pursuant to section eight hundred five of this article.\n 3. Each participation loan shall be secured by a bond or note and\nsingle participating mortgage or by separate bonds or notes and\nmortgages upon the existing multiple dwelling or the non-residential\nproperty and the land upon which it is situated or, in the case of the\nconstruction of a new multiple dwelling, upon the vacant land and the\nmultiple dwelling to be constructed, or, in the case of a multiple\ndwelling held in the condominium form of ownership, a note and mortgage\nupon the condominium units rehabilitated with such participation loan,\nprovided that a participation loan to an owner who is a lessee shall be\nsecured by a leasehold interest in such property, and provided, further,\nthat each such loan shall be made upon such terms and conditions as may\nbe approved by the agency, in
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