N.Y. Comp. Codes R. & Regs. tit. 3, § 79.6 – Maintenance of real property securing reverse mortgage loans.

(a) Mortgagor shall be required to maintain the real property securing the reverse mortgage loan in a reasonably similar condition, state and repair as the property is in at the time of closing or after repairs have been made for which funds have been disbursed or set aside at closing for later disbursement and that the mortgagor agreed to make as a condition of the closing of the loan. For purposes of this section, the term “reasonably similar condition, state and repair” is relevant only to the extent that such condition, state or repair threatens to materially damage the property or its market value.
(b) If the mortgagor fails to maintain the real property securing the reverse mortgage loan in accordance with subsection (a) the mortgagee may arrange for such maintenance upon receiving consent to enter upon the premises, which is not to be unreasonably withheld by the mortgagor. Notwithstanding applicable state and federal rules and laws, a mortgagee may pay for maintenance work done in accordance with this section in the following ways:
1. (1) by deducting necessary amounts from a set aside account;
2. (2) by withholding from one or more monthly payments otherwise due to the mortgagor no more than 25 percent of each such monthly payment, until the repairs are paid for; or
3. (3) by adding the amount to the loan principal.
  If a set aside account has been established, then, to the extent possible, the mortgagee must deduct the cost of the repair from such fund before choosing option paragraph (2) or (3) of this subdivision. If a set aside account has not been established, then the mortgagee may choose whether to proceed according to option paragraph (2) or (3) of this subdivision or a combination thereof.
(c) The mortgagee shall notify the mortgagor or authorized designee of the need for maintenance and, unless an imminent threat of material damage to the property or its market value exists, provide the mortgagor 90 calendar days before arranging for such maintenance. If an imminent danger to life or property exists, the mortgagee may proceed on as little as 48 hours’ notice to the mortgagor.
(d) The mortgagee shall have the right to inspect the real property securing the loan on 72 hours’ notice but not more often than is reasonably necessary to assure the real property securing the reverse mortgage loan is being maintained in a reasonably similar condition, state and repair as the property was in at the time of closing or after repairs have been made for which funds have been disbursed or set aside at closing for later disbursement and that the mortgagor agreed to make as a condition of the closing of the loan.
(e) Mortgagees must have written policies and procedures in place to allow for the appeal of any determination made in accordance with this section. Such policies and procedures must be made available to the mortgagor upon request.