§ 43 — Homeless housing and assistance contracts

§ 43. Homeless housing and assistance contracts. 1. Within the limits\nof funds available in the homeless housing and assistance fund, the\ncommissioner is hereby authorized to enter into contracts with\nmunicipalities to provide state financial assistance for the project\ncosts attributable to the establishment of homeless housing projects.\nThe municipalities that enter into contracts with the commissioner shall\nundertake the establishment of the homeless housing project or shall\ncontract with a not-for-profit corporation or charitable organization to\nundertake the project, pursuant to this article.\n 2. Subject to the approval of the director of the budget, the\ncommissioner is hereby authorized to enter into contracts with\nnot-for-profit corporations or subsidiaries thereof, public corporations\nor charitable organizations or subsidiaries thereof to provide state\nfinancial assistance for the project costs attributable to the\nestablishment of homeless projects.\n 3. The state financial assistance shall be in the form of grants,\nloans or loan guarantees, as the commissioner may determine provided,\nhowever, that financial assistance to a for-profit subsidiary of a\nnot-for-profit corporation or of a charitable organization must be in\nthe form of a loan or loan guarantee. Any loan to a for-profit\nsubsidiary shall be repaid under such terms as will protect the\nfinancial viability of the project. Subject to the approval of the\ndivision of the budget, the commissioner may contract with other state\nagencies, public benefit corporation's or private institutions to\nadminister a loan or loan guarantee program pursuant to regulations to\nbe promulgated by the commissioner.\n 4. The commissioner shall require that, in order to receive funds\npursuant to this article, the municipality, not-for-profit corporation\nor subsidiary thereof, public corporation or charitable organization or\nsubsidiary thereof must submit an operating plan. Such plan shall\ninclude:\n (a) the manner in which the operating expenses of the project shall be\nmet;\n (b) the services that will be provided to homeless persons, including\nprocedures for intake, referral and outreach;\n (c) the responsibilities of the municipality and social services\ndistrict for the operation of the project;\n (d) the specific population that will be served by the project and how\nthe project will address the population's special needs;\n (e) the category of facility proposed to be established; and\n (f) evidence demonstrating that such project complies or will comply\nwith existing local, state and federal laws and regulations.\n 5. The commissioner may use up to one percent of the appropriation for\nany fiscal year to pay for technical assistance in support of project\ndevelopment and operation. Technical assistance may include assistance\nwith general project development and operation, support services\ndevelopment, architecture and engineering, legal services and financial\nservices and may be provided by individuals and not-for-profit or\nbusiness corporations. The providers of technical assistance shall be\nchosen by the department based on such information as the department\nshall require in a request for proposals or in any other competitive\nprocess which satisfies the provisions of the state finance law.\n 6. Prior to entering into a contract for the establishment and\noperation of a homeless project pursuant to this section, the\ncommissioner shall determine that the not-for-profit corporation or\nsubsidiary thereof, public corporation or charitable organization or\nsubsidiary thereof that proposes to undertake the homeless project is a\nbona fide organization which shall have demonstrated by its past and\ncurrent activities that it has the ability to maintain, manage or\noperate homeless projects, that the organization is financially\nresponsible, that the proposed project is financially viable and that\nthe project plan has been determined to be appropriate for the needs of\nthe homeless in the relevant community.\n 7. Every contract entered into for the establishment and operation of\na homeless project pursuant to this article shall contain a provision\nthat in the event the property which is the subject of such contract\nceases to be used as a homeless project during a seven-year period\ncommencing with the date of the commissioner's written approval of\noccupancy of the homeless project, or such longer period of time as may\nbe established in the contract, or in case of any other substantial\nviolation, the commissioner may terminate the contract and may require\nthe repayment of any moneys previously advanced to the municipality,\nnot-for-profit corporation or subsidiary thereof, public corporation or\ncharitable organization or subsidiary thereof pursuant to the terms of\nsuch contract. Where the municipality has entered into a contract with\na not-for-profit corporation or subsidiary thereof, public corporation\nor charitable organization or subsidiary thereof, the commissioner may,\npursuant to this subdivision, require that the municipality terminate\nthe contract with such corporation. Any money repaid pursuant to this\nsubdivision shall be returned to the homeless housing and assistance\nfund.\n 8. Each contract entered into for the establishment and operation of a\nhomeless project pursuant to this article shall be subject to the\napproval of the director of the budget and shall provide for payment to\nthe municipality, not-for-profit corporation or subsidiary thereof,\npublic corporation or charitable organization or subsidiary thereof for\nthe project costs related to the homeless project to be established by\nit, pursuant to a payment schedule. The full amount of the contract, or\nany appropriate portion thereof, as determined by the commissioner and\nsubject to the approval of the director of the budget, shall be\navailable for payment at any time on or after the effective date of the\ncontract.\n 9. Notwithstanding any other provision of this article, the\ncommissioner may, subject to the approval of the director of the budget,\nenter into contracts to provide financial assistance for other than\nproject costs where such financial assistance can be demonstrated to be\nnecessary; provided, however, that no more than twenty-five per centum\nof the total amount appropriated for the purposes of this article in any\nfiscal year shall be allocated in contracts for other than project\ncosts. In determining whether financial assistance for other than\nproject costs is necessary, the commissioner shall consider the proposed\nproject's plan for meeting operating expenses, the efforts made by the\ncontracting organizations to secure alternative sources of funding for\nother than project costs, and such other factors as the commissioner\nshall deem appropriate.\n 10. Notwithstanding any other provision of this article, the state\nshall not, in the exercise of its responsibilities pursuant to this\narticle, assume the legal title to projects developed pursuant to this\narticle.\n 11. The municipality, not-for-profit corporation or subsidiary\nthereof, public corporation or charitable organization or subsidiary\nthereof seeking financial assistance pursuant to this article shall,\nwithin thirty days of its application for such assistance, notify the\nlocal planning board, as defined by section twenty-seven of the general\ncity law, section two hundred seventy-one of the town law, section 7-718\nof the village law, or section eighty-four of the charter of the city of\nNew York, appropriate for the geographic area in which the proposed\nhomeless project would be located, and shall provide such board with\ninformation regarding the proposed homeless project.\n