N.Y. Social Services Law § 131-i*2: Family loan program

* § 131-i. Family loan program. 1. From amounts appropriated for such

purpose, the department of labor in consultation with the department is

hereby authorized and directed to solicit proposals to establish

programs to be known as family loan programs. Such programs shall

provide small, no-interest loans to custodial parents with income below

two hundred percent of the federal poverty level and who are working or

enrolled in a post-secondary education program, to aid in covering the

costs of unexpected expenses that could interfere with their ability to

maintain employment or continue education. Loans awarded through a

family loan program may be paid directly to a third party on behalf of a

loan recipient and in either case shall not constitute income or

resources for the purposes of public assistance and care so long as the

funds are used for the intended purpose.

2. The commissioner of labor shall enter into written agreements with

not-for-profit organizations or local government agencies to administer

loan pools. Agreements shall be entered into with no more than four

organizations and/or agencies, no more than one of which shall be

located in the city of New York.

3. Program sites shall be approved based on the demonstrated ability

of the organization or governmental agency to secure funding from

private and/or public sources sufficient to establish a loan pool to be

maintained through repayment agreements entered into by eligible

low-income families. Funds awarded by the department of labor to

approved program sites shall be used for the express purposes of

covering staffing and administration costs associated with administering

the loan pool.

4. From amounts appropriated for such purpose, the department of labor

in consultation with the office of temporary and disability assistance

is hereby authorized and directed to solicit proposals to establish up

to four new family loan programs. Such programs shall operate according

to provisions set forth in subdivision one through three of this

section; provided, however, that such programs may provide no- or

low-interest loans, and further provided that applications submitted by

a consortium of not-for-profit organizations or local government

agencies shall be viewed as one program and may receive greater funding

by the department of labor than an application submitted by a single

organization or agency. Low-interest loans shall not exceed a rate

greater than two-thirds of the prime rate. No not-for-profit

organization or local government agency awarded funding from

appropriations made in the nineteen hundred ninety-seven--nineteen

hundred ninety-eight fiscal year shall be eligible for funds made

available from appropriations made in the nineteen hundred

ninety-nine--two thousand fiscal year.

* NB There are 2 § 131-i's