N.Y. General Municipal Law § 509: Periodic subsidies

§ 509. Periodic subsidies. 1. The commissioner may, in the name of the

state, make or contract to make periodic subsidies to a municipality to

assist such municipality in carrying out one or more programs of urban

renewal, subject to the limitations contained in the first paragraph of

section seventy-three of the public housing law, in this section and in

any other law applicable thereto. Such subsidies shall be applied by the

municipality only for the purpose of paying the principal and interest

on the state loan for the urban renewal program or on loans from other

sources pursuant to subdivision three of this section.

2. The periodic subsidy for each program of urban renewal shall be

payable to the municipality on an annual basis over the period of the

state loan for the urban renewal program, commencing on the date

provided for in the loan contract made with the commissioner, in a total

amount determined by the commissioner but no greater than the sum due to

the state for principal and interest on the state loan for such program.

The amount of such payments need not be uniform and portions of the

periodic subsidy payable for any one year may be paid from time to time

as required.

3. Where all or any part of the sum which the commissioner has

contracted to lend to the municipality is borrowed by the municipality

from sources other than the state, the periodic subsidy contracted for

pursuant to subdivision one of this section may be used by the

municipality for the payment of such loans obtained from such sources

for the program to which such periodic subsidies relate, provided the

terms and conditions of such loans have been approved by the

commissioner. Such periodic subsidies shall also be payable to the

municipality on an annual basis over a fixed period of years not

exceeding the probable life of such program, in a total amount

determined by the commissioner but no greater than the sum due to such

lenders for principal and interest on such loan, commencing on the date

provided for in the loan contract made with the commissioner.

Notwithstanding any other provision of any general or special law, the

contract for such loan from sources other than the state shall provide

that upon any date when an installment of principal shall become due and

payable the municipality may anticipate any installment which would

otherwise become due and payable thereafter.

4. The faith of the state is pledged to the payment of all periodic

subsidies contracted for by the commissioner. Such periodic subsidies

shall be paid upon the audit and warrant of the state comptroller upon

vouchers approved by the commissioner.