2023 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.