N.Y. Comp. Codes R. & Regs. tit. 21 § 2174.1
When the corporation determines that a grantee has failed to meet one or more of the requirements of the grant agreement, the corporation may reduce or recapture the grant, including amounts already obligated, or take other appropriate action. For purposes of this section, other appropriate action means any remedial action legally available, including, without limitation, demanding in writing that the grantee reimburse (and the grantee will reimburse) the corporation in the amount of the ineligible costs, and bringing affirmative litigation, such as suits for declaratory judgment, specific performance, temporary or permanent injunctions and any other available remedies. In the event that the corporation makes such a determination, then the grantee will deliver to the corporation all original documents relevant to the project(s) or program, including but not limited to any construction agreements, loan documents and any other related documents that the corporation may require.
N.Y. Comp. Codes R. & Regs. Tit. 21 § 2174.1