N.Y. Private Housing Finance Law § 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.