§ 904 — Payments to neighborhood preservation companies for neighborhood preservation activities

§ 904. Payments to neighborhood preservation companies for\nneighborhood preservation activities. 1. Each contract entered into with\na neighborhood preservation company shall provide for payment to the\nneighborhood preservation company for neighborhood preservation\nactivities to be performed by it.\n 2. Payment to neighborhood preservation companies pursuant to this\narticle shall be restricted to sums required for the payment of salaries\nand wages to employees of such companies who are engaged in rendering\nneighborhood preservation activities, fees to consultants and\nprofessionals retained by them for planning and performing such\nactivities and other costs and expenses directly related to such\nemployees, consultants and professionals.\n 3. In no event shall any contract or payment be made, nor shall any\npayments be used, to defray the costs of the construction, repair,\nrenovation, rehabilitation, operation, demolition, clearance or sealing\nof any building or other structure, except that such funds may be used\nfor planning any such activity and for renovating, repairing,\nfurnishing, equipping and operating an office facility to be used in\nconnection with the conduct of neighborhood preservation activities by\nthe neighborhood preservation company. Payments shall be made by the\ndivision to the neighborhood preservation company, not less frequently\nthan semi-annually, at or prior to the commencement of each such time\nperiod, to compensate such company for the neighborhood preservation\nactivities which it shall undertake to perform provided, that with\nrespect to contracts entered into on or after June thirtieth, nineteen\nhundred ninety-seven the first such payment shall be made by the\ndivision beginning on or after July first of the fiscal year for which\nan appropriation in support of such payment was made and provided\nfurther that the final such payment to the neighborhood preservation\ncompany shall be made no later than March thirty-first of such fiscal\nyear, unless such payment has been withheld pursuant to subdivision\neight of section nine hundred three of this article.\n 4. In negotiating each contract, the division shall consider and take\ninto account any and all other sums available or anticipated to be made\navailable to the neighborhood preservation company from any and all\nsources which may be used to defray the costs of the neighborhood\npreservation activities set forth in the contract, including, without\nlimitation, fees generated by the management of housing accommodations,\ncontributions from private foundations, corporations, firms and\nindividuals and funds received under grants and contracts pursuant to\nany program or programs operated or administered by any governmental\nagency or instrumentality and shall make a determination that the sums\navailable or anticipated to be made available for the neighborhood\npreservation company from such other sources, together with the value of\nservices to be rendered for the benefit of the neighborhood preservation\ncompany for which payment is not required to be made by such company,\namount to at least thirty-three and one-third percent of the amount of\nsuch contract.\n 5. When disbursing funds for contracts with neighborhood preservation\ncompanies, pursuant to section nine hundred three of this article, the\ndivision shall use the following criteria, formulas and tables to\ndetermine the distribution of funds:\n (a)(i) The total unmerged company funding shall equal the current\nnumber of unmerged company contracts multiplied by the per group award.\n (ii) The unmerged company funding shall equal the per group award.\n (iii) The merged company funding shall equal the funding modification\nmultiplied by the per group award.\n (b) Merged company funding shall be determined on an individual basis\nfor each neighborhood preservation company. The following tables show\nthe funding modification to be used:\n (i) In the case of two companies merging, the following table shall be\nused:\n Years since Funding\n merger modification\n 1 200%\n 2 190%\n 3 180%\n 4 170%\n 5 160%\n 6 150%\n (ii) In the case of three companies merging, the following table shall\nbe used:\n Years since Funding\n merger modification\n 1 300%\n 2 290%\n 3 280%\n 4 270%\n 5 260%\n 6 250%\n 7 240%\n 8 230%\n 9 220%\n 10 210%\n 11 200%\n (iii) In the case of four or more companies merging, the following\ntable shall be used:\n Years since Funding\n merger modification\n 1 400%\n 2 390%\n 3 380%\n 4 370%\n 5 360%\n 6 350%\n 7 340%\n 8 330%\n 9 320%\n 10 310%\n 11 300%\n 12 290%\n 13 280%\n 14 270%\n 15 260%\n 16 250%\n (c) If a neighborhood preservation company that has undergone a merger\ncontinues to renew their contract beyond the timeframes listed in the\nabove tables, it shall have its funding determined using the last\nfunding modification listed.\n (d) The merged company savings shall be determined on an individual\nbasis for each merged company. It shall be calculated by subtracting the\namount of such company's merged company funding from the amount the\nmerged companies would have received if they had maintained separate\ncontracts.\n (e) The per group award shall equal the total funding available minus\nthe amount for the contract with the neighborhood preservation\ncoalition, which shall equal the total unmerged company funding plus the\nsum of the merged company funding plus the sum of the merged company\nsavings.\n