§ 1003 — Contracts with not-for-profit corporations for housing preservation and community renewal activities

§ 1003. Contracts with not-for-profit corporations for housing\npreservation and community renewal activities. 1. The commissioner may\nenter into contracts with corporations incorporated pursuant to the\nnot-for-profit corporation law (or such law together with any other\napplicable law) for the performance of housing preservation and\ncommunity renewal activities within a region, subject to the provisions\nof this article.\n 2. Prior to entering into a contract with a corporation, the\ncommissioner shall have made a finding that the region in which the\nactivities are proposed to be conducted contains a significant amount of\ndeteriorating or substandard housing which is not being adequately\nrepaired, renovated, upgraded, modernized or rehabilitated under\nexisting programs so as to provide sound housing at costs which the\nresidents of such region can afford; that the corporation which proposes\nto contract with the commissioner is a bona fide organization which\nshall have been in existence either as a corporation or as an\nunincorporated, organized group and performing significant housing\npreservation and community renewal activities for at least one full year\nprior to entering into any contract with the commissioner and which\nshall have demonstrated by its immediate past and current activities\nthat it has the ability to preserve, repair, maintain, renovate,\nrehabilitate, manage or operate housing accommodations or to engage in\nother housing preservation and community renewal activities in such\nregion; that the housing preservation and community renewal activities\nwhich are to be performed pursuant to the proposed contract are needed\nby the region; and that the corporation possesses or will acquire or\ngain access to the requisite staff, office facilities with direct access\nto such region, equipment and expertise to enable it to perform the\nactivities which it proposes to undertake pursuant to such contract;\nprovided, however, that merged corporations' office facilities may be\nlocated outside such region if they are located in a municipality wholly\ncontained within the merged corporations' region, and provided further,\nhowever, that it shall not be a bar to the commissioner's contracting\nwith a corporation that one or more other organizations, are conducting\nhousing preservation and community renewal activities wholly or\npartially within the same region whether or not pursuant to contract\nwith the commissioner.\n 3. The commissioner may enter into a contract pursuant to this section\nonly if he determines:\n (a) that the region proposed to be served by the applicant is an\nappropriate portion of the rural area of the state for the performance\nof activities pursuant to this article by a corporation;\n (b) that such region contains significant unmet housing needs of\npersons of low income, that a substantial portion of its population\nconsists of such persons, and that the housing stock in the region,\nbecause of its age, deterioration, or other factors, requires\nimprovement in order to preserve the communities within the region;\n (c) that the particular activities to be performed by the corporation\nwill meet one or more needs of the region and are reasonably calculated\nto have a positive effect on regional preservation, stabilization or\nimprovement;\n (d) that the corporation's officers, directors and members are fairly\nrepresentative of the residents and other legitimate interests of the\nregion, that they may be expected to carry out the contract in a\nresponsible manner, and that a majority of the directors of the\ncorporation are residents of the region;\n (f) that any fees received or proposed to be received by the\ncorporation in connection with its activities pursuant to the contract\nare fair and reasonable;\n (g) that the corporation will, to the extent possible, give preference\nin hiring to residents of the region who are unemployed or\nunderemployed;\n (h) that the corporation will, to the maximum extent feasible, dispose\nof residential buildings owned or to be acquired by it to the occupants\nthereof or to cooperative groups whose members shall be occupants\nthereof; and\n (i) that due consideration will be given to the interests of occupants\nof properties owned or to be acquired by the corporation.\n 4. Contracts pursuant to this section shall be for a period of no more\nthan one year, but may be renewed or extended from year to year; they\nshall define with particularity the region or portion thereof within\nwhich the housing preservation and community renewal activities shall be\nperformed; they shall specify the nature of the housing preservation and\ncommunity renewal activities which shall be performed including the\napproximate number of buildings, residential dwelling units and local\nretail and service establishments which shall be affected; they shall\nlocate and describe, with as much particularity as is reasonably\npossible, the buildings with respect to which such activities shall be\nperformed during the contract term; and they shall specify the number of\npersons, salaries or rates of compensation and a description of duties\nof those who shall be engaged by the corporation to perform the\nactivities embraced by the contract together with a schedule of other\nanticipated expenses.\n 5. Prior to renewing or extending a contract or entering a succeeding\ncontract with a corporation the division shall determine that:\n (a) the corporation shall have substantially completed the housing\npreservation and community renewal activities specified in the contract\nto be renewed, extended, or succeeded;\n (b) the corporation shall have received the sums, services, and funds\nspecified in subdivision four of section one thousand four of this\narticle; and\n (c) the activities carried out by the corporation pursuant to its\ncontract shall have had a significant impact on the community's needs as\nspecified in the contract.\n 6. Prior to terminating, not renewing or not extending a contract the\ndivision shall:\n (a) determine that the corporation is in violation of the terms and\nconditions of the contract or that funds provided pursuant to the\ncontract are being expended in a manner not consistent with the terms of\nthe contract or the provisions of this article; or\n (b) determine that necessary and appropriate technical assistance has\nbeen provided without significant improvement in the activities of the\ncorporation; and\n (c) provide the corporation with written notice, at least forty-five\ndays in advance, of its intent to terminate, not renew or not extend the\ncontract and provide the corporation with an opportunity to appear and\nbe heard before the division with respect to the reasons for such\nproposed termination, non-renewal or non-extension. At the same time\nthat the corporation is notified of the division's intent to terminate,\nnot renew or not extend the contract, the division shall likewise inform\nthe senate and assembly members who represent areas within such\ncorporation's geographic boundaries.\n 7. The division shall establish, for renewal of contracts, a procedure\nwhich provides the corporation with at least forty-five days notice of\nthe corporation's obligations and rights in that process, informs the\ncorporation of the amount of the renewal contract, and facilitates the\ntimely execution of the contract and disbursement of funds.\n 8. The division may temporarily withhold payments and may elect not to\nrenew or extend a contract or enter a succeeding contract with any\nnot-for-profit corporation if the corporation is not in compliance with\nits contract, has without good cause failed to submit documentation\nrequired under contract or requested by the division to make the\ndeterminations required under subdivision five of this section or has\nnot satisfied any other conditions consistent with this article for\nrenewing or extending a contract or entering a succeeding contract.\n