§ 903 — Contracts with neighborhood preservation companies

New York § 903

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 16: Neighborhood Preservation Companies

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§ 903. Contracts with neighborhood preservation companies. 1. The\ncommissioner may enter into contracts with neighborhood preservation\ncompanies for the performance of neighborhood preservation activities.\nSuch contracts shall be entered into, however, only after appropriate\nfindings by the commissioner and shall be subject to the limitations\nhereinafter set forth.\n 2. Prior to entering into a contract with a neighborhood preservation\ncompany, the commissioner shall have made a finding that the\nneighborhood in which the activities are proposed to be conducted\ncontains a significant amount of deteriorating or substandard housing\nwhich is not being adequately repaired, renovated, upgraded, modernized\nor rehabilitated under existing programs so as to provide sound housing\nat costs which the residents of such neighborhoods can afford; that the\nneighborhood preservation company which proposes to contract with the\ncommissioner is a bona fide organization which shall have been in\nexistence either as a corporation or as an unincorporated, organized\ngroup and performing significant neighborhood preservation activities\nfor at least one full year prior to entering into any contract with the\ncommissioner and which shall have demonstrated by its immediate past and\ncurrent activities that it has the ability to preserve, repair,\nmaintain, renovate, rehabilitate, manage or operate housing\naccommodations or to engage in other neighborhood preservation\nactivities in such neighborhood; that the neighborhood preservation\nactivities which are to be performed pursuant to the proposed contract\nare needed by the neighborhood; and that the neighborhood preservation\ncompany possesses or will acquire or gain access to the requisite staff,\noffice facilities within such neighborhood, equipment and expertise to\nenable it to perform the activities which it proposes to undertake\npursuant to such contract; provided, however, that merged companies'\noffice facilities may be located outside such neighborhood if they are\nlocated in a municipality wholly contained within the merged companies'\nneighborhood, and provided further, however, that it shall not be a bar\nto the commissioner's contracting with a neighborhood preservation\ncompany that one or more organizations, whether pursuant to contract\nwith the commissioner or not, are conducting neighborhood preservation\nactivities wholly or partially within the same neighborhood.\n 3. In determining to enter into a contract with a neighborhood\npreservation company pursuant to this article, the commissioner shall\ninvestigate, to the extent which he shall deem necessary or appropriate,\nand determine;\n (a) that the geographic boundaries proposed by the applicant for such\na contract define a recognized or established neighborhood or area\nwithin the municipality;\n (b) that the demographic and other relevant data pertaining to such\nneighborhood indicate that the neighborhood has sustained physical\ndeterioration, decay, neglect or disinvestment, that a substantial\nproportion of the residential population that the neighborhood\npreservation company proposes to assist through its activities is of low\nincome and that such neighborhood is in need of active intervention to\neffect its preservation, stabilization or improvement;\n (c) that the activities proposed to be conducted by the neighborhood\npreservation company are reasonably calculated to have a positive effect\non the preservation, stabilization or improvement of the neighborhood;\n (d) that the neighborhood preservation company's officers, directors\nand members are fairly representative of the residents and other\nlegitimate interests of the neighborhood, that they will carry out such\na contract in a responsible manner and that at least thirty-three\npercent of the directors of the neighborhood preservation company are\nresidents of the neighborhood;\n (f) that the fees received or proposed to be received by the\nneighborhood preservation company from the management of housing\naccommodations are fair and reasonable;\n (g) that the plan submitted by the neighborhood preservation company\ndemonstrates that such company will, to the extent possible, give\npriority when hiring new employees to residents of the neighborhood who\nare either unemployed or not fully employed;\n (h) that the neighborhood preservation company has a plan to\nfacilitate, to the maximum extent feasible, the disposition of any\nbuildings containing housing accommodations owned by the company to\nindividual occupants thereof or to cooperative groups whose members\nshall be occupants thereof; and\n (i) that the interests of occupants of any buildings containing\nhousing accommodations owned by the neighborhood preservation company\nare adequately represented.\n 4. Contracts entered into hereunder with neighborhood preservation\ncompanies shall be limited in duration to periods of one year, but may\nthereafter be renewed, extended or succeeded by new contracts from year\nto year in the discretion of the commissioner; they shall define with\nparticularity the neighborhood or portion thereof within which the\nneighborhood preservation activities shall be performed; they shall\nspecify the nature of the neighborhood preservation activities which\nshall be performed including the approximate number of buildings,\nresidential dwelling units and local retail and service establishments\nwhich shall be affected; they shall locate and describe, with as much\nparticularity as is reasonably possible, the buildings with respect to\nwhich such activities shall be performed during the contract term; and\nthey shall specify the number of persons, salaries or rates of\ncompensation and a description of duties of those who shall be engaged\nby the neighborhood preservation company to perform the activities\nembraced by the contract together with a schedule of other anticipated\nexpenses.\n 5. Prior to renewing or extending a contract or entering a succeeding\ncontract with a neighborhood preservation company the division shall\ndetermine that:\n (a) the company shall have substantially completed the neighborhood\npreservation activities specified in the contract to be renewed,\nextended, or succeeded;\n (b) the company shall have received the sums, services, and funds\nspecified in subdivision four of section nine hundred four of this\narticle; and\n (c) the activities carried out by the company pursuant to its contract\nshall 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 company 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\ncompany; and\n (c) provide the company with written notice, at least forty-five days\nin advance, of its intent to terminate, not renew or not extend the\ncontract and provide the company with an opportunity to appear and be\nheard before the division with respect to the reasons for such proposed\ntermination, non-renewal or non-extension. At the same time that a\ncompany is notified of the division's intent to terminate, not renew or\nnot extend the contract, the division shall likewise inform the senate\nand assembly members who represent areas within such company's\ngeographic boundaries.\n 7. The division shall establish, for renewal of contracts, a procedure\nwhich provides the company with at least forty-five days notice of the\ncompany's obligations and rights in that process, informs the company of\nthe amount of the renewal contract, and facilitates the timely execution\nof 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\nneighborhood preservation company if the company is not in compliance\nwith its contract, has without good cause failed to submit documentation\nrequired under its 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