N.Y. Urban Development Corporation Act 174/68 § 16-g: Child care facilities construction program

§ 16-g. Child care facilities construction program. 1. Definitions.

For the purposes of this section:

(a) "Child care facilities construction project" shall mean a project

for the establishment, expansion, and development of licensed

not-for-profit child day care centers which are intended to serve the

needs of low-income working families or economically distressed areas or

highly distressed communities. The project shall be used as a licensed

child day care center for a period of at least ten years with at least

one-quarter of the available day care placements offered to the local

department of social services or set aside for persons eligible for

low-income day care subsidies.

(b) "Economically distressed areas" shall have the same meaning as

provided for in section 16-d of this act.

(c) "Highly distressed" shall have the same meaning as provided for in

section 16-d of this act.

(d) "Not-for-profit corporation" shall mean a corporation organized

under the provisions of the not-for-profit corporation law.

2. The corporation shall, from any appropriations made available for

this purpose, establish a child care facilities construction program

which shall offer the following assistance:

(a) Child care construction grants pursuant to paragraphs (a) and (b)

of subdivision 3 of this section.

(b) Child care construction revolving loans and loan guarantees

pursuant to paragraphs (c) and (d) of subdivision 3 of this section.

3. To the extent that monies are appropriated for the child care

facilities construction program, the corporation shall provide financing

for child care facilities construction projects for the establishment,

expansion and development of not-for-profit child day care centers which

are intended to serve the needs of low-income working families or

economically distressed areas or highly distressed communities. The

corporation, in consultation with the department of economic

development, shall develop a joint request for applications with the

department of social services soliciting potential applicants seeking

assistance for the development of licensed, not-for-profit child day

care centers. In determining award recipients, the corporation shall

consider, among other factors, the department of social services'

grouped rankings of the applications. Such financing shall consist of

grants, revolving loans and loan guarantees for the establishment,

expansion, and development of licensed, not-for-profit child day care

centers in accordance with section 410-ccc of the social services law

and this section.

(a) Grants shall be used for general project development costs,

including, but not limited to:

(i) the acquisition, design, construction, improvement or renovation

of the site; and

(ii) the purchase of necessary equipment.

(b) For the purposes of this subdivision grants shall not exceed

eighty percent of the total project cost in highly distressed

communities; shall not exceed sixty-five percent of the total project

cost in economically distressed areas; and shall not exceed fifty

percent of the total project cost in non-economically distressed areas.

(c) Child care construction revolving loan and loan guarantees. The

corporation shall provide revolving loans and loan guarantees for the

establishment of licensed, not-for-profit child day care centers. Such

revolving loans and loan guarantees shall be for construction costs,

including, but not limited to the design, construction, improvement or

renovation of a child day care center, and may include interim

financing.

(d) Child care construction revolving loan and loan guarantee fund.

For the purposes of this subdivision, the corporation shall establish a

child care construction revolving loan and loan guarantee fund account.

The corporation shall determine the terms and interest rates of such

loans, except that no loan shall exceed eighty percent of the total

project cost in highly distressed communities; sixty-five percent of the

total project cost in economically distressed areas; and fifty percent

of the total project cost in non-economically distressed areas. In

instances where an otherwise qualified applicant lacks equity in a

project, equity participation may include any commitment for grants.

Payments consisting of the repayment of the principal amount of the loan

and interest shall be deposited by the corporation into the child care

construction revolving loan fund account from which the loan was made.

4. Financing for child care facilities construction projects

authorized pursuant to this subdivision, shall only be made upon a

determination by the corporation, in consultation with the department of

economic development, and the department of social services that such a

center will increase supply and access to day care services. Such

revolving loans, loan guarantees and grants shall only be made for child

care centers where there is an insufficient supply of child day care.

Such centers shall demonstrate the potential to obtain, from the local

department of social services and other appropriate governmental

agencies, all necessary approvals, licenses, and other supports required

to operate the center.

5. In addition to the department of social services, the corporation

shall work closely with the job development authority, the department of

economic development, child care resource and referral programs, local

development corporations, neighborhood preservation companies, rural

preservation companies, and other sources offering assistance for child

care in the state in order to assure coordination of services.