N.Y. Social Services Law § 43: Homeless housing and assistance contracts

§ 43. Homeless housing and assistance contracts. 1. Within the limits

of funds available in the homeless housing and assistance fund, the

commissioner is hereby authorized to enter into contracts with

municipalities to provide state financial assistance for the project

costs attributable to the establishment of homeless housing projects.

The municipalities that enter into contracts with the commissioner shall

undertake the establishment of the homeless housing project or shall

contract with a not-for-profit corporation or charitable organization to

undertake the project, pursuant to this article.

2. Subject to the approval of the director of the budget, the

commissioner is hereby authorized to enter into contracts with

not-for-profit corporations or subsidiaries thereof, public corporations

or charitable organizations or subsidiaries thereof to provide state

financial assistance for the project costs attributable to the

establishment of homeless projects.

3. The state financial assistance shall be in the form of grants,

loans or loan guarantees, as the commissioner may determine provided,

however, that financial assistance to a for-profit subsidiary of a

not-for-profit corporation or of a charitable organization must be in

the form of a loan or loan guarantee. Any loan to a for-profit

subsidiary shall be repaid under such terms as will protect the

financial viability of the project. Subject to the approval of the

division of the budget, the commissioner may contract with other state

agencies, public benefit corporation's or private institutions to

administer a loan or loan guarantee program pursuant to regulations to

be promulgated by the commissioner.

4. The commissioner shall require that, in order to receive funds

pursuant to this article, the municipality, not-for-profit corporation

or subsidiary thereof, public corporation or charitable organization or

subsidiary thereof must submit an operating plan. Such plan shall

include:

(a) the manner in which the operating expenses of the project shall be

met;

(b) the services that will be provided to homeless persons, including

procedures for intake, referral and outreach;

(c) the responsibilities of the municipality and social services

district for the operation of the project;

(d) the specific population that will be served by the project and how

the project will address the population's special needs;

(e) the category of facility proposed to be established; and

(f) evidence demonstrating that such project complies or will comply

with existing local, state and federal laws and regulations.

5. The commissioner may use up to one percent of the appropriation for

any fiscal year to pay for technical assistance in support of project

development and operation. Technical assistance may include assistance

with general project development and operation, support services

development, architecture and engineering, legal services and financial

services and may be provided by individuals and not-for-profit or

business corporations. The providers of technical assistance shall be

chosen by the department based on such information as the department

shall require in a request for proposals or in any other competitive

process which satisfies the provisions of the state finance law.

6. Prior to entering into a contract for the establishment and

operation of a homeless project pursuant to this section, the

commissioner shall determine that the not-for-profit corporation or

subsidiary thereof, public corporation or charitable organization or

subsidiary thereof that proposes to undertake the homeless project is a

bona fide organization which shall have demonstrated by its past and

current activities that it has the ability to maintain, manage or

operate homeless projects, that the organization is financially

responsible, that the proposed project is financially viable and that

the project plan has been determined to be appropriate for the needs of

the homeless in the relevant community.

7. Every contract entered into for the establishment and operation of

a homeless project pursuant to this article shall contain a provision

that in the event the property which is the subject of such contract

ceases to be used as a homeless project during a seven-year period

commencing with the date of the commissioner's written approval of

occupancy of the homeless project, or such longer period of time as may

be established in the contract, or in case of any other substantial

violation, the commissioner may terminate the contract and may require

the repayment of any moneys previously advanced to the municipality,

not-for-profit corporation or subsidiary thereof, public corporation or

charitable organization or subsidiary thereof pursuant to the terms of

such contract. Where the municipality has entered into a contract with

a not-for-profit corporation or subsidiary thereof, public corporation

or charitable organization or subsidiary thereof, the commissioner may,

pursuant to this subdivision, require that the municipality terminate

the contract with such corporation. Any money repaid pursuant to this

subdivision shall be returned to the homeless housing and assistance

fund.

8. Each contract entered into for the establishment and operation of a

homeless project pursuant to this article shall be subject to the

approval of the director of the budget and shall provide for payment to

the municipality, not-for-profit corporation or subsidiary thereof,

public corporation or charitable organization or subsidiary thereof for

the project costs related to the homeless project to be established by

it, pursuant to a payment schedule. The full amount of the contract, or

any appropriate portion thereof, as determined by the commissioner and

subject to the approval of the director of the budget, shall be

available for payment at any time on or after the effective date of the

contract.

9. Notwithstanding any other provision of this article, the

commissioner may, subject to the approval of the director of the budget,

enter into contracts to provide financial assistance for other than

project costs where such financial assistance can be demonstrated to be

necessary; provided, however, that no more than twenty-five per centum

of the total amount appropriated for the purposes of this article in any

fiscal year shall be allocated in contracts for other than project

costs. In determining whether financial assistance for other than

project costs is necessary, the commissioner shall consider the proposed

project's plan for meeting operating expenses, the efforts made by the

contracting organizations to secure alternative sources of funding for

other than project costs, and such other factors as the commissioner

shall deem appropriate.

10. Notwithstanding any other provision of this article, the state

shall not, in the exercise of its responsibilities pursuant to this

article, assume the legal title to projects developed pursuant to this

article.

11. The municipality, not-for-profit corporation or subsidiary

thereof, public corporation or charitable organization or subsidiary

thereof seeking financial assistance pursuant to this article shall,

within thirty days of its application for such assistance, notify the

local planning board, as defined by section twenty-seven of the general

city law, section two hundred seventy-one of the town law, section 7-718

of the village law, or section eighty-four of the charter of the city of

New York, appropriate for the geographic area in which the proposed

homeless project would be located, and shall provide such board with

information regarding the proposed homeless project.