N.Y. Private Housing Finance Law § 68: State/city allocations of permanent housing projects for homeless families

§ 68. State/city allocations of permanent housing projects for

homeless families. 1. No contract shall be entered into by the agency or

its designee in connection with the administration of projects,

including the payment of project costs, unless the agency is assured to

its satisfaction that the city has provided or will provide fifty

percent of such costs to the agency or its designee. Moneys received

from sources other than the city or the state may, at the agency's

discretion, be expended without regard to such limitation.

Notwithstanding any other provision of law, payments, grants and loans

may be deposited by the agency directly with a lending institution at or

before the time of initial loan closing pursuant to an escrow agreement

satisfactory to the agency.

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

shall not substitute for locally funded operating or capital

expenditures which the city would have allocated through its normal

budgetary process to programs that provide permanent housing for

homeless families 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 permanent housing for homeless families 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 city to allocate funds for housing programs if in the

city's judgment such allocation would require an increase in taxation or

a reduction in other city services.