§ 257. Conditions and security for loans. 1. No loan shall be made to a community development corporation for a project unless (a) the planning commission, if any, of the municipality has approved the project; (b) the local legislative body of the municipality, after a public hearing, has approved the project and has enacted or will enact regulations or appropriate restrictions adequately protecting the project against future uses likely to depreciate unduly the value of such project and has, by resolution, found that the project will aid in the replanning, reconstruction or redevelopment of an urban renewal area, as defined in article fifteen of the general municipal law, or will provide facilities incidental or appurtenant to an urban renewal project, as defined in article fifteen of the general municipal law, and (c) the commissioner has found that:

(i) the estimated revenues of the project or the monies of the corporation will be sufficient to cover all probable costs of operation and maintenance, all fixed charges and operating reserves and depreciation reserves if any;

(ii) the plans and specifications conform to the requirements of all laws applicable thereto and assure light, air, sanitation and fire protection;

(iii) the project is in conformity with an approved urban renewal plan, as defined in article fifteen of the general municipal law.