NY Priv Hous Fin L § 1003 (2021)
2021 New York Laws PVH - Private Housing Finance Article 17 - Housing and Community Preservation in Rural Areas 1003 - Contracts With Not-for-Profit Corporations for Housing Preservation and Community Renewal Activities.

§   1003.  Contracts  with  not-for-profit  corporations  for  housing preservation and community renewal activities. 1. The  commissioner  may enter  into  contracts  with  corporations  incorporated pursuant to the not-for-profit corporation law (or such  law  together  with  any  other applicable   law)  for  the  performance  of  housing  preservation  and community renewal activities within a region, subject to the  provisions of this article.   2.  Prior  to  entering  into  a  contract  with  a  corporation,  the commissioner shall have made a finding that  the  region  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 region can afford; that the corporation 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  housing preservation and community renewal 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  housing  preservation  and  community  renewal activities in such region; that the housing preservation and community  renewal  activities which  are  to be performed pursuant to the proposed contract are needed by the region; and that the corporation possesses  or  will  acquire  or gain access to the requisite staff, office facilities with direct access to  such  region,  equipment  and  expertise to enable it to perform the activities which it proposes to undertake  pursuant  to  such  contract; provided,  however,  that  merged corporations' office facilities may be located outside such region if they are located in a municipality wholly contained within the merged corporations' region, and provided  further, however,  that  it  shall not be a bar to the commissioner's contracting with a corporation that one or more other organizations, are  conducting housing   preservation   and  community  renewal  activities  wholly  or partially within the same region whether or  not  pursuant  to  contract with the commissioner.   3. The commissioner may enter into a contract pursuant to this section only if he determines:  (a)  that  the  region  proposed  to  be served by the applicant is an appropriate portion of the rural area of the state for  the  performance of activities pursuant to this article by a corporation;  (b)  that  such  region  contains  significant  unmet housing needs of persons of low income, that a  substantial  portion  of  its  population consists  of  such  persons,  and  that the housing stock in the region, because  of  its  age,  deterioration,  or   other   factors,   requires improvement in order to preserve the communities within the region;  (c)  that the particular activities to be performed by the corporation will meet one or more needs of the region and are reasonably  calculated to  have  a  positive  effect on regional preservation, stabilization or improvement;  (d) that the corporation's officers, directors and members are  fairly representative  of  the  residents and other legitimate interests of the region, that they may be  expected  to  carry  out  the  contract  in  a responsible  manner,  and  that  a  majority  of  the  directors  of the corporation are residents of the region;  (f) that  any  fees  received  or  proposed  to  be  received  by  the corporation  in  connection with its activities pursuant to the contract are fair and reasonable;  (g) that the corporation will, to the extent possible, give preference in   hiring   to   residents   of  the  region  who  are  unemployed  or underemployed;  (h) that the corporation will, to the maximum extent feasible, dispose of residential buildings owned or to be acquired by it to the  occupants thereof  or  to  cooperative  groups  whose  members  shall be occupants thereof; and  (i) that due consideration will be given to the interests of occupants of properties owned or to be acquired by the corporation.   4. Contracts pursuant to this section shall be for a period of no more than one year, but may be renewed or extended from year  to  year;  they shall  define  with  particularity  the region or portion thereof within which the housing preservation and community renewal activities shall be performed; they shall specify the nature of the housing preservation and community renewal 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  corporation  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 corporation the division shall determine that:  (a)  the  corporation  shall  have substantially completed the housing preservation and community renewal activities specified in the  contract to be renewed, extended, or succeeded;  (b)  the corporation shall have received the sums, services, and funds specified in subdivision four of  section  one  thousand  four  of  this article; and  (c)  the  activities  carried  out  by the corporation 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 corporation 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 corporation; and  (c)  provide  the corporation 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 corporation 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  the corporation 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 corporation's geographic boundaries.   7. The division shall establish, for renewal of contracts, a procedure which  provides  the corporation with at least forty-five days notice of  the corporation's obligations and rights in that  process,  informs  the corporation  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 not-for-profit corporation if the corporation is not in compliance  with its  contract,  has  without  good  cause failed to submit documentation required under 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.