N.Y. General Municipal Law § 557: State capital grants

§ 557. State capital grants. 1. The commissioner may in the name of

the state, (a) in the case of agencies which have contracted with the

federal government for a capital grant (or for a loan and grant) make or

contract to make, within appropriations therefor, a state capital grant

to such agency to assist in carrying out one or more programs of urban

renewal;

(b) in the case of agencies which have not made application to or

entered into a contract with the federal government for advances, loans

or grants with respect to a specific urban renewal project, make or

contract to make a state capital grant, within appropriations therefor,

to such agency to assist in meeting the cost of surveys and plans for

such project and the administrative and other related expenditures to be

incurred in undertaking and completing such project.

All contracts for such state capital grants shall be subject to

approval by the state comptroller, and by the attorney general as to

form. The commissioner may make advances or progress payments on account

of any state capital grant contracted to be made pursuant to this

section and such advances or payments shall not constitute periodic

subsidies.

2. Any such state capital grant shall be in such amount, within

appropriations therefor, as the commissioner, in his discretion, may

deem necessary to assist the agency in discharging its obligations in

connection with the programs for which the grant shall be made;

provided, however, that no such grant shall exceed one-half of the net

cost of such program to the agency, exclusive of any federal aid or

assistance, as such net cost shall be certified by the agency and

approved by the commissioner. If the agency has not applied to or

entered into a contract with the federal government for advances, loans

or grants for a specific project, such grant shall not in any event

exceed five hundred thousand dollars ($500,000).

3. No agency shall receive any such state capital grant until (a) the

urban renewal plan has been approved by the governing body, (b) the

program set forth in such plan has been certified as eligible for

federal assistance by the appropriate federal agency, or the governing

body has found that such federal financial assistance is not necessary

for the undertaking and successful completion of the program set forth

in such plan, and (c) the governing body has attached its approval to

the grant contract. The commissioner may make temporary advances to such

agency in anticipation of any such grant.

4. Notwithstanding anything contained in this section to the contrary,

the commissioner may in the name of the state, within appropriations

heretofore or hereafter made for state capital grants to assist in

carrying out one or more local urban renewal programs, make or contract

to make advances of funds to agencies, in anticipation of any such state

capital grant, to assist such agencies in preparing preliminary economic

and physical plans for relocation housing, regulated by law or contract

as to rents, for persons and families to be displaced by the urban

renewal program whose housing needs cannot be met by the unaided

operations of private enterprise. Upon completion such plans shall be

filed with the commissioner.

No such contract or advance shall be made (a) before an urban renewal

area, to whose residents such relocation housing relates, has been

designated pursuant to section five hundred four of this article; (b)

unless the governing body has certified that the preparation of

preliminary plans for such relocation housing is necessary to the making

of a finding, pursuant to section five hundred five of this article, as

to the existence of a feasible method of relocation; and (c) in excess

of the lowest of the following amounts:

(i) the actual cost of preparation of such preliminary plans;

(ii) one-half of one per cent of the estimated construction cost of

the proposed relocation housing;

(iii) twenty-five thousand dollars;

and every such advance shall be repaid out of any state capital grant

which may become payable to the agency for the undertaking of the urban

renewal project involved.

5. Notwithstanding anything contained in this article or article

fifteen of this chapter to the contrary, the commissioner may in the

name of the state, within appropriations heretofore or hereafter made

for state capital grants to assist in carrying out one or more local

urban renewal programs make or contract to make state capital grants to

such agencies to assist in financing the cost of the preparation and

completion of one or more community renewal programs.

Any such state capital grant shall be in such amount, within

appropriations therefor, as the commissioner, in his discretion, may

deem necessary to assist the agency in discharging its obligations in

connection with the program for which the state grant shall be made;

provided, however, that no such state capital grant shall exceed

one-half of the cost to the agency of undertaking and completing such

program, exclusive of any federal or state aid or assistance therefor,

as such cost shall be certified by the agency and approved by the

commissioner.

No agency shall receive any such state grant until (a) the community

renewal program has been approved by the governing body, (b) the program

has been certified as eligible for federal assistance by the appropriate

federal agency, and (c) the governing body has attached its approval to

the state capital grant contract.

All contracts for such state capital grants shall be subject to

approval by the state comptroller, and by the attorney general as to

form. The commissioner may make advances or progress payments on account

of any such state capital grant contract to be made pursuant to this

section.

6. (a) Notwithstanding anything to the contrary contained in this

section or elsewhere in this chapter, or in any general, special or

local law, except as hereinafter provided, the commissioner may, in the

name of the state, include in determining the net cost of an urban

renewal project for the purpose of computing the amount of state

financial assistance to an agency, those expenditures made by a private

voluntary hospital and/or by a private college or private university,

within, adjacent to, or in the immediate vicinity of such project which

are recognized as non-cash grant-in-aid credits under the provisions of

section one hundred twelve of title one of the federal housing act of

nineteen hundred forty-nine, as amended and supplemented; provided,

however, that such computation shall not apply to any urban renewal

project for which a contract has been executed with the federal

government for a capital grant (or for a loan and grant) prior to the

first day of July, nineteen hundred sixty-six.

(b) Not more than fifteen per centum of the amount appropriated by the

state or otherwise available to the commissioner in any year for urban

renewal assistance to municipalities and agencies pursuant to this

section and section five hundred ten of this chapter shall be available

for the purposes of paragraph (a) of this subdivision.

(c) In no instance shall the amount of state assistance to an agency

under this subdivision exceed the net project cost, excluding the amount

of the non-cash grant-in-aid credits for expenditures made by a private

voluntary hospital and/or by a private college or private university

allowed in accordance with the provisions of section one hundred twelve

of title I of the federal housing act of nineteen hundred forty-nine as

amended and supplemented, less any federal capital grant, or loan and

grant, for such project; nor shall the aggregate amount of state

assistance for any such urban renewal project, including section one

hundred twelve grant-in-aid credits as provided by this subdivision,

exceed one-half of the total local grant-in-aid requirements necessary

to complete such project.

(d) No such section one hundred twelve non-cash grant-in-aid credits

shall be included in determining the net cost of an urban renewal

project for the purpose of computing the amount of state financial

assistance to an agency unless such expenditures were made in conformity

with a plan or undertaking for the clearance, replanning and

reconstruction or rehabilitation of a substandard or insanitary area or

areas.

(e) Such plan or undertaking, for the clearance, replanning and

reconstruction or rehabilitation of a substandard insanitary area

adjacent to or in the immediate vicinity of an urban renewal project

shall conform to the comprehensive community plan for the development of

the community as a whole. Every such plan or undertaking shall be

submitted to the commission, if any, for approval. The commission after

considering the plan or undertaking may: issue a report of unqualified

approval; or issue a report of conditional or qualified approval; or

issue a report disapproving same. The plan or undertaking shall be

submitted, together with the report of the commission, to the local

legislative body for its approval. If the commission shall have issued a

report of unqualified approval, the plan or undertaking may be approved

in accordance with the report of the commission by a majority vote of

the local legislative body. If the commission shall have issued a report

disapproving same, or shall have issued a report of conditional or

unqualified approval, or shall have failed to make its report within

four weeks of the submission of the plan or undertaking to the

commission, the local legislative body may, nevertheless, approve the

plan or undertaking but only by a three-fourths vote.