N.Y. Private Housing Finance Law § 1004: Payments pursuant to contracts

§ 1004. Payments pursuant to contracts. 1. Each contract entered into

pursuant to this article shall provide for payment to the corporation

for the housing preservation and community renewal activities to be

performed by it.

2. Payments pursuant to this section shall be restricted to sums

required for the compensation of persons employed by, and consultants

retained by, the corporation for the performance of the activities

covered by the contract and other costs and expenses directly related to

such employees and consultants.

3. No part of any such payment shall be used to defray in whole or in

part the cost of acquisition, improvement, rehabilitation, operation or

demolition of any building or other structure, but this provision shall

not prohibit the use of such funds for planning any such activity or for

the expenses of providing office and related facilities for the

corporation for use in carrying out its activities pursuant to the

contract. Payments shall be made by the division to the corporation at

such periods, not less frequently than semi-annually, as shall be

provided in the contract. Such payments shall be made at or prior to the

commencement of each such time period, to compensate the corporation for

the activities which are to be carried out during such time period

provided, that with respect to contracts entered into on or after June

thirtieth, nineteen hundred ninety-seven the first such payment shall be

made by the division beginning on or after July first of the fiscal year

for which an appropriation in support of such payment was made and

provided further that the final such payment to the corporation shall be

made no later than March thirty-first of such fiscal year, unless such

payment has been withheld pursuant to subdivision eight of section one

thousand three of this article.

4. In negotiating each contract, the division shall consider and take

into account any and all other sums available or anticipated to be made

available to the corporation from any and all sources which may be used

to defray the costs of the housing preservation and community renewal

activities set forth in the contract, including, without limitation,

fees generated by the management of housing accommodations,

contributions from private foundations, corporations, firms and

individuals and funds received under grants and contracts pursuant to

any program or programs operated or administered by any governmental

agency or instrumentality and shall make a determination that the sums

available or anticipated to be made available for the corporation from

such other sources, together with the value of services to be rendered

for the benefit of the corporation for which payment is not required to

be made by such corporation, amount to at least thirty-three and

one-third percent of the amount of such contract.

5. When disbursing funds for contracts with not-for-profit

corporations, pursuant to section one thousand three of this article,

the division shall use the following criteria, formulas and tables to

determine the distribution of funds:

(a) (i) The total unmerged corporation funding shall equal the current

number of unmerged corporation contracts multiplied by the per group

award.

(ii) The unmerged corporation funding shall equal the per group award.

(iii) The merged corporation funding shall equal the funding

modification multiplied by the per group award.

(b) Merged corporation funding shall be determined on an individual

basis for each not-for-profit corporation. The following tables show the

funding modification to be used:

(i) In the case of two not-for-profit corporations merging, the

following table shall be used:

Years since Funding

merger modification

1 200%

2 190%

3 180%

4 170%

5 160%

6 150%

(ii) In the case of three not-for-profit corporations merging, the

following table shall be used:

Years since Funding

merger modification

1 300%

2 290%

3 280%

4 270%

5 260%

6 250%

7 240%

8 230%

9 220%

10 210%

11 200%

(iii) In the case of four or more not-for-profit corporations merging,

the following table shall be used:

Years since Funding

merger modification

1 400%

2 390%

3 380%

4 370%

5 360%

6 350%

7 340%

8 330%

9 320%

10 310%

11 300%

12 290%

13 280%

14 270%

15 260%

16 250%

(c) If a not-for-profit corporation that has undergone a merger

continues to renew their contract beyond the timeframes listed in the

above tables, it shall have its funding determined using the last

funding modification listed.

(d) The merged corporation savings shall be determined on an

individual basis for each merged corporation. It shall be calculated by

subtracting the amount of such corporation's merged corporation funding

from the amount the merged corporations would have received if they had

maintained separate contracts.

(e) The per group award shall equal the total funding available minus

the amount for the contract with the rural preservation coalition which

shall equal the total unmerged company funding plus the sum of the

merged company funding.