§ 509 — Periodic subsidies

§ 509. Periodic subsidies. 1. The commissioner may, in the name of the\nstate, make or contract to make periodic subsidies to a municipality to\nassist such municipality in carrying out one or more programs of urban\nrenewal, subject to the limitations contained in the first paragraph of\nsection seventy-three of the public housing law, in this section and in\nany other law applicable thereto. Such subsidies shall be applied by the\nmunicipality only for the purpose of paying the principal and interest\non the state loan for the urban renewal program or on loans from other\nsources pursuant to subdivision three of this section.\n 2. The periodic subsidy for each program of urban renewal shall be\npayable to the municipality on an annual basis over the period of the\nstate loan for the urban renewal program, commencing on the date\nprovided for in the loan contract made with the commissioner, in a total\namount determined by the commissioner but no greater than the sum due to\nthe state for principal and interest on the state loan for such program.\nThe amount of such payments need not be uniform and portions of the\nperiodic subsidy payable for any one year may be paid from time to time\nas required.\n 3. Where all or any part of the sum which the commissioner has\ncontracted to lend to the municipality is borrowed by the municipality\nfrom sources other than the state, the periodic subsidy contracted for\npursuant to subdivision one of this section may be used by the\nmunicipality for the payment of such loans obtained from such sources\nfor the program to which such periodic subsidies relate, provided the\nterms and conditions of such loans have been approved by the\ncommissioner. Such periodic subsidies shall also be payable to the\nmunicipality on an annual basis over a fixed period of years not\nexceeding the probable life of such program, in a total amount\ndetermined by the commissioner but no greater than the sum due to such\nlenders for principal and interest on such loan, commencing on the date\nprovided for in the loan contract made with the commissioner.\nNotwithstanding any other provision of any general or special law, the\ncontract for such loan from sources other than the state shall provide\nthat upon any date when an installment of principal shall become due and\npayable the municipality may anticipate any installment which would\notherwise become due and payable thereafter.\n 4. The faith of the state is pledged to the payment of all periodic\nsubsidies contracted for by the commissioner. Such periodic subsidies\nshall be paid upon the audit and warrant of the state comptroller upon\nvouchers approved by the commissioner.\n