N.Y. Private Housing Finance Law § 904: Payments to neighborhood preservation companies for neighborhood preservation activities

§ 904. Payments to neighborhood preservation companies for

neighborhood preservation activities. 1. Each contract entered into with

a neighborhood preservation company shall provide for payment to the

neighborhood preservation company for neighborhood preservation

activities to be performed by it.

2. Payment to neighborhood preservation companies pursuant to this

article shall be restricted to sums required for the payment of salaries

and wages to employees of such companies who are engaged in rendering

neighborhood preservation activities, fees to consultants and

professionals retained by them for planning and performing such

activities and other costs and expenses directly related to such

employees, consultants and professionals.

3. In no event shall any contract or payment be made, nor shall any

payments be used, to defray the costs of the construction, repair,

renovation, rehabilitation, operation, demolition, clearance or sealing

of any building or other structure, except that such funds may be used

for planning any such activity and for renovating, repairing,

furnishing, equipping and operating an office facility to be used in

connection with the conduct of neighborhood preservation activities by

the neighborhood preservation company. Payments shall be made by the

division to the neighborhood preservation company, not less frequently

than semi-annually, at or prior to the commencement of each such time

period, to compensate such company for the neighborhood preservation

activities which it shall undertake to perform 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 neighborhood preservation

company 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 nine hundred 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 neighborhood preservation company from any and all

sources which may be used to defray the costs of the neighborhood

preservation 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 neighborhood

preservation company from such other sources, together with the value of

services to be rendered for the benefit of the neighborhood preservation

company for which payment is not required to be made by such company,

amount to at least thirty-three and one-third percent of the amount of

such contract.

5. When disbursing funds for contracts with neighborhood preservation

companies, pursuant to section nine hundred 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 company funding shall equal the current

number of unmerged company contracts multiplied by the per group award.

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

(iii) The merged company funding shall equal the funding modification

multiplied by the per group award.

(b) Merged company funding shall be determined on an individual basis

for each neighborhood preservation company. The following tables show

the funding modification to be used:

(i) In the case of two companies 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 companies 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 companies 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 neighborhood preservation company 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 company savings shall be determined on an individual

basis for each merged company. It shall be calculated by subtracting the

amount of such company's merged company funding from the amount the

merged companies 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 neighborhood preservation

coalition, which shall equal the total unmerged company funding plus the

sum of the merged company funding plus the sum of the merged company

savings.