(1) Upon approval of the affordable housing project application, compliance with SEQRA and SHPA, and other conditions set by the agency, the agency will enter into a grant agreement with the selected eligible applicant to provide for the disbursement of funds under the program.

(2) The grant agreement will by reference incorporate the regulations contained herein and among other matters will provide for the method of disbursement of funds, a reduction of the grant if project costs or expenses are reduced and if conditions of financing are altered and such other restrictions as the agency may deem appropriate.

(3) The grant agreement will also incorporate a plan acceptable to the agency which demonstrates that the infrastructure improvements shall be undertaken in conjunction with the new construction or rehabilitation of an affordable housing project, shall be completed in a timely fashion and will result in a corresponding reduction in the cost of such affordable housing to the occupants therein.

(4) In connection with grant agreements and the making of grants the agency may also elect to enter into regulatory agreements with the grantee and other parties participating in the project to ensure that the affordable housing project will provide affordable housing for a period of time determined by the agency, based upon the amount of assistance provided to a grantee, and that the purposes of the program will be met. Such regulatory agreements may, if appropriate, be recorded in the land records so as to make their provisions run with the land and as determined by the agency, may contain provisions for recapture of grant funds if the program requirements are not met.