N.Y. Private Housing Finance Law § 1132: Infrastructure development contracts

§ 1132. Infrastructure development contracts. 1. The agency is hereby

authorized, within the amounts appropriated, to enter into contracts

with eligible applicants to provide funds for infrastructure

improvements which are necessary for and will reduce the cost of the new

construction or rehabilitation of affordable housing projects. Such

contracts shall provide for grants by the agency to the eligible

applicant for infrastructure improvements carried out under the

contract. Grants shall be used to advance to or reimburse the eligible

applicant for the actual and necessary cost of providing such

infrastructure improvements, provided however that grants shall not be

used to pay the administrative costs incurred by an eligible applicant

for such improvements. Such payments, including payments to a

municipality, shall be made in accordance with the agency's prompt

payment statement adopted pursuant to section twenty-eight hundred

eighty of the public authorities law. Payment to the eligible applicant

shall not be conditioned on pre-payment for such improvements by the

eligible applicant. No such grants shall exceed an amount equal to five

thousand dollars for each unit of affordable housing to be constructed

or rehabilitated in conjunction with such infrastructure improvements.

2. The agency shall not enter into a contract under this article

except with an eligible applicant which has submitted an application to

a state, federal or local entity to receive funds for the construction

or rehabilitation of an affordable housing project and submits proof of

such application to the agency. Such contract shall contain provisions

that infrastructure development funds are dependent upon such

application being approved. Any contract for infrastructure development

funds shall contain such other information which the agency deems

appropriate, and a plan acceptable to the agency which demonstrates that

the infrastructure improvements shall be undertaken in conjunction with

the new construction or rehabilitation of an affordable housing project,

shall be completed in a timely fashion and will result in a

corresponding reduction in the cost of such affordable housing to the

occupants therein.

3. Moneys expended by the agency for the purposes of this article

shall not substitute for locally funded operating or capital

expenditures which the municipality would have allocated through its

normal budgetary process to programs that provide infrastructure

improvement in the absence of the funds provided for this program. All

such moneys shall be used to increase locally funded operating or

capital expenditures for this program to a level which is greater than

the level which would have existed if such moneys had not been provided

by the state. Nothing in this subdivision shall require the municipality

to allocate funds for this program if in the municipality's judgment

such allocation would require an increase in taxation or a reduction in

other municipal services.

4. Notwithstanding the provisions of article one-A of the public

authorities law, contracts entered into by the agency pursuant to this

article shall not be subject to the provisions of article one-A of the

public authorities law.