NY Priv Hous Fin L § 903 (2021)
2021 New York Laws PVH - Private Housing Finance Article 16 - Neighborhood Preservation Companies 903 - Contracts With Neighborhood Preservation Companies.

§  903.  Contracts  with  neighborhood  preservation companies. 1. The commissioner may enter into  contracts  with  neighborhood  preservation companies  for  the performance of neighborhood preservation activities. Such contracts shall be entered into, however,  only  after  appropriate findings  by  the  commissioner  and shall be subject to the limitations hereinafter set forth.   2. Prior to entering into a contract with a neighborhood  preservation company,   the   commissioner   shall  have  made  a  finding  that  the neighborhood in which  the  activities  are  proposed  to  be  conducted contains  a  significant  amount of deteriorating or substandard housing which is not being adequately repaired, renovated, upgraded,  modernized or  rehabilitated under existing programs so as to provide sound housing at costs which the residents of such neighborhoods can afford; that  the neighborhood  preservation  company  which proposes to contract with the commissioner is a bona  fide  organization  which  shall  have  been  in existence  either  as  a  corporation or as an unincorporated, organized group and performing significant  neighborhood  preservation  activities for  at least one full year prior to entering into any contract with the commissioner and which shall have demonstrated by its immediate past and current  activities  that  it  has  the  ability  to  preserve,  repair, maintain,    renovate,   rehabilitate,   manage   or   operate   housing accommodations  or  to  engage  in   other   neighborhood   preservation activities  in  such  neighborhood;  that  the neighborhood preservation activities which are to be performed pursuant to the  proposed  contract are  needed  by the neighborhood; and that the neighborhood preservation company possesses or will acquire or gain access to the requisite staff, office facilities within such neighborhood, equipment and  expertise  to enable  it  to  perform  the  activities  which it proposes to undertake pursuant to such contract; provided,  however,  that  merged  companies' office  facilities  may be located outside such neighborhood if they are located in a municipality wholly contained within the merged  companies' neighborhood,  and provided further, however, that it shall not be a bar to the  commissioner's  contracting  with  a  neighborhood  preservation company  that  one  or  more organizations, whether pursuant to contract with the commissioner or not, are conducting  neighborhood  preservation activities wholly or partially within the same neighborhood.   3.  In  determining  to  enter  into  a  contract  with a neighborhood preservation company pursuant to this article,  the  commissioner  shall investigate, to the extent which he shall deem necessary or appropriate, and determine;  (a)  that the geographic boundaries proposed by the applicant for such a contract define a  recognized  or  established  neighborhood  or  area within the municipality;  (b)  that  the  demographic and other relevant data pertaining to such neighborhood indicate  that  the  neighborhood  has  sustained  physical deterioration,  decay,  neglect  or  disinvestment,  that  a substantial proportion  of  the  residential  population   that   the   neighborhood preservation company proposes to assist through its activities is of low income  and  that such neighborhood is in need of active intervention to effect its preservation, stabilization or improvement;  (c) that the activities proposed to be conducted by  the  neighborhood preservation company are reasonably calculated to have a positive effect on the preservation, stabilization or improvement of the neighborhood;  (d)  that  the neighborhood preservation company's officers, directors and members  are  fairly  representative  of  the  residents  and  other legitimate  interests of the neighborhood, that they will carry out such a contract in a  responsible  manner  and  that  at  least  thirty-three  percent  of  the  directors of the neighborhood preservation company are residents of the neighborhood;  (f)  that  the  fees  received  or  proposed  to  be  received  by the neighborhood  preservation  company  from  the  management  of   housing accommodations are fair and reasonable;  (g)  that  the plan submitted by the neighborhood preservation company demonstrates that such  company  will,  to  the  extent  possible,  give priority  when hiring new employees to residents of the neighborhood who are either unemployed or not fully employed;  (h)  that  the  neighborhood  preservation  company  has  a  plan   to facilitate,  to  the  maximum  extent  feasible,  the disposition of any buildings containing housing accommodations  owned  by  the  company  to individual  occupants  thereof  or  to  cooperative groups whose members shall be occupants thereof; and  (i) that the  interests  of  occupants  of  any  buildings  containing housing  accommodations  owned  by the neighborhood preservation company are adequately represented.   4. Contracts entered into  hereunder  with  neighborhood  preservation companies  shall  be limited in duration to periods of one year, but may thereafter be renewed, extended or succeeded by new contracts from  year to  year  in  the discretion of the commissioner; they shall define with particularity the neighborhood  or  portion  thereof  within  which  the neighborhood  preservation  activities  shall  be  performed; they shall specify the nature of the  neighborhood  preservation  activities  which shall  be  performed  including  the  approximate  number  of buildings, residential dwelling units and local retail and  service  establishments which  shall  be  affected; they shall locate and describe, with as much particularity as is reasonably possible, the buildings with  respect  to which  such  activities shall be performed during the contract term; and they  shall  specify  the  number  of  persons,  salaries  or  rates  of compensation  and  a description of duties of those who shall be engaged by the neighborhood  preservation  company  to  perform  the  activities embraced  by  the contract together with a schedule of other anticipated expenses.   5. Prior to renewing or extending a contract or entering a  succeeding contract  with  a  neighborhood  preservation company the division shall determine that:  (a) the company shall have substantially  completed  the  neighborhood preservation  activities  specified  in  the  contract  to  be  renewed, extended, or succeeded;  (b) the company shall have received  the  sums,  services,  and  funds specified  in  subdivision  four  of  section  nine hundred four of this article; and  (c) the activities carried out by the company pursuant to its contract shall have  had  a  significant  impact  on  the  community's  needs  as specified in the contract.   6.  Prior to terminating, not renewing or not extending a contract the division shall:  (a) determine that the company  is  in  violation  of  the  terms  and conditions  of  the  contract  or  that  funds  provided pursuant to the contract are being expended in a manner not consistent with the terms of the contract or the provisions of this article; or  (b) determine that necessary and appropriate technical assistance  has been  provided  without significant improvement in the activities of the company; and  (c) provide the company with written notice, at least forty-five  days in  advance,  of  its  intent  to terminate, not renew or not extend the contract and provide the company with an opportunity to  appear  and  be  heard  before the division with respect to the reasons for such proposed termination, non-renewal or non-extension.  At  the  same  time  that  a company  is notified of the division's intent to terminate, not renew or not  extend  the contract, the division shall likewise inform the senate and  assembly  members  who  represent  areas  within   such   company's geographic boundaries.   7. The division shall establish, for renewal of contracts, a procedure which  provides  the company with at least forty-five days notice of the company's obligations and rights in that process, informs the company of the amount of the renewal contract, and facilitates the timely execution of the contract and disbursement of funds.   8. The division may temporarily withhold payments and may elect not to renew or extend a contract or  enter  a  succeeding  contract  with  any neighborhood  preservation  company  if the company is not in compliance with its contract, has without good cause failed to submit documentation required under its contract or requested by the  division  to  make  the determinations  required  under  subdivision five of this section or has not satisfied any other conditions  consistent  with  this  article  for renewing or extending a contract or entering a succeeding contract.