§ 16-D — Urban and community development program

§ 16-d. Urban and community development program. (1) Definitions. For\nthe purposes of this section:\n (a) "Business improvement district" shall mean a special assessment\ndistrict established pursuant to article nineteen-A of the general\nmunicipal law.\n (b) "Business district" or "central business district" shall mean the\ncentral district of a municipality or neighborhood area traditionally\nused for commercial purposes.\n (c) "Commercial strip" shall mean a predominantly commercial area\ntraditionally used for commercial purposes which may not be the primary\nbusiness district and which is one of several commercial districts in\nthe municipality in which it is located.\n (d) "Economically distressed areas" shall mean areas as determined by\nthe corporation meeting criteria indicative of economic distress,\nincluding unemployment rate; rate of employment change; percentages and\nnumbers of low-income persons; per capita income and per capita real\nproperty wealth; such other indicators of distress as the corporation\nshall determine. Economically distressed areas may include cities,\nmunicipalities, block numbering areas, and census tracts.\n (e) "Highly distressed" shall mean suffering from severe economic\ndistress as determined by the corporation using criteria similar to\nthose set forth in subdivision (a) of section nine hundred fifty-eight\nof article eighteen-B of the general municipal law for determining\neligibility for empire zone status.\n (f) "Not-for-profit corporation" shall mean a corporation organized\nunder the provisions of the not-for-profit corporation law.\n (2) Urban and community development program. The corporation shall\nestablish an urban and community development program which shall offer\nthe following assistance:\n (a) Urban and community development assistance grants pursuant to\nsubdivision five of this section.\n (b) Urban and community project development assistance pursuant to\nsubdivision six of this section.\n (c) Neighborhood and community partnership assistance pursuant to\nsubdivision seven of this section.\n (d) Urban and community commercial revitalization revolving loan fund\nassistance pursuant to subdivision eight of this section.\n (e) Urban and community technical assistance pursuant to subdivision\nnine of this section.\n (3) Applications. Applications for support under this program shall be\nmade in a form and manner as determined by the corporation and\napplicants shall be required to meet the criteria and requirements\nestablished by the corporation, which shall include but not be limited\nto:\n (a) Factors of economic distress;\n (b) The extent of support for, and involvement in, the program or\nproject of units of local government, the local business community and\nlocal economic development professionals; and\n (c) Such other requirements as are necessary to implement the\nprovisions of this section.\n (4) Preference. Preference will be given to projects which are located\nin highly distressed communities, and for which other public or private\nfunding sources are not available.\n (5) Urban and community development assistance grants. (a) Grants\nawarded under this subdivision shall be awarded on a competitive basis,\nin response to requests for proposals, and through direct applications\naccepted at other times at the discretion of the corporation,\ndistributed to business improvement districts, local development\ncorporations, municipalities and other not-for-profit economic\ndevelopment organizations by the corporation for the purpose of\nsoliciting applications. Requests for proposals under this subdivision\nshall set forth such criteria as the corporation deems necessary,\nincluding those set forth in subdivision three of this section and\nincluding, but not limited to the following:\n (i) the potential impact the proposed project would have on economic\ndevelopment and employment opportunities in the community and the\nregion; and\n (ii) the existence of significant support for such activities from the\nlocal business community, local government and community organizations\nwithin the community, including the commitment of financial resources.\n (b) The corporation is hereby authorized, under this subdivision to:\n (i) provide grants to business improvement districts, local\ndevelopment corporations, other not-for-profit economic development\norganizations, and municipalities involved in commercial revitalization\nactivities in central business districts or commercial strips, such\nactivities to include architectural design studies and services and\nother redevelopment work in connection with the design and\nimplementation of a plan for facade and other improvements to commercial\nstrips and central business districts throughout New York state. Such\ngrants may include monies available for individual property owners\nand/or tenants who agree to improve their property in accordance with an\noverall design plan, provided that, such individual property owners\nand/or tenants shall be required to match the amount of any grant\nawarded to them.\n (ii) provide grants to local development corporations, business\nimprovement districts and other not-for-profit organizations for\nstudies, surveys or reports, and feasibility studies and preliminary\nplanning studies to assess a particular site or sites or facility or\nfacilities for any economic development purpose other than residential;\nand to identify development opportunities within established business\nimprovement districts.\n (iii) provide urban planning grants on a matching basis to cities,\ncounties, or municipalities desiring to prepare and develop strategic\ndevelopment plans for a city, county, or municipality or a significant\npart thereof.\n (iv) provide grants to municipalities for studies, surveys, or reports\nand feasibility studies or preliminary planning studies to assess the\neconomic viability and local credit needs of the community for the\npurposes of establishing a banking development district pursuant to\nsection ninety-six-d of the banking law.\n (c) Notwithstanding anything contained to the contrary in this\nsubdivision, section ten and subdivision two of section sixteen of this\nact shall not apply to any grants authorized under this subdivision.\n (6) Urban and community project development assistance. (a) Grants,\nloans and loan guarantees authorized pursuant to this subdivision shall\nbe limited to fifty percent of the actual cost of the proposed projects,\nand shall be located in empire zones designated pursuant to article\neighteen-B of the general municipal law or in highly distressed areas.\n (b) The corporation is hereby authorized, under this subdivision to:\nprovide loans, loan guarantees and grants for projects as set forth in\nparagraph (c) of this subdivision, and to provide project development\nassistance by the corporation acting as a project developer pursuant to\nparagraph (d) of this subdivision.\n (c) Project development loans, loan guarantees and grants. (i) The\ncorporation may make loans, loan guarantees and grants in accordance\nwith the provisions of this act for which no other funds of the\ncorporation are available, with the exception of the appropriations for\nthis program and moneys reappropriated under the high risk targeted\ninvestment program, for the acquisition, renovation, and construction of\ncommercial industrial and mixed-use facilities, or for feasibility or\nplanning studies in connection with such development.\n (ii) Such projects shall include projects related to the\nimplementation of necessary construction and reconstruction projects\nidentified or planned under grants received pursuant to subdivision five\nof this section.\n (iii) Projects intended to be publicly-owned shall not be eligible for\nfinancial assistance in connection with the acquisition, construction or\nrenovation of a facility or development hereunder unless such project is\nleased to a private enterprise.\n (d) Notwithstanding anything contained to the contrary in this\nsubdivision, section ten and subdivision two of section sixteen of this\nact shall not apply to any feasibility grants or planning studies\nauthorized under paragraph (c) of this subdivision.\n (e) Project development assistance. (i) The corporation may act as\ndeveloper in the acquisition, renovation, construction, leasing or sale\nof development projects, other than residential projects, authorized\npursuant to this act in order to stimulate private sector investment\nwithin the affected community.\n (ii) In acting as a developer, the corporation may borrow for purposes\nof this paragraph for approved projects in which the lender's recourse\nis solely to the assets of the project, and may make such arrangements\nand agreements with community-based organizations and local development\ncorporations as may be required to carry out the purposes of this\nsection.\n (iii) Prior to developing any such project, the corporation shall\nsecure a firm commitment from entities, independent of the corporation,\nfor the purchase or lease of such project.\n (iv) Projects authorized under this paragraph whether developed by the\ncorporation or a private developer, must be located in either\nstate-designated empire zones or in highly distressed communities.\n (v) The corporation, for purposes of this paragraph shall only select\nprojects that have project costs not to exceed three million dollars of\nwhich the corporation's participation shall not exceed sixty percent of\nthe total, for which there is a demonstrated demand within the\nparticular community.\n (f) Any other provisions of this subdivision notwithstanding, the\ncorporation may establish a loan guarantee program in conjunction with\nbanks and other financial institutions to guarantee working capital\nloans and loans for real estate, construction and renovations to\nnot-for-profit community and economic development organizations that\nserve highly distressed areas.\n (7) Neighborhood and community partnership. (a) There is hereby\ncreated within the urban and community development program a\nneighborhood and community partnership program which shall be used to\nsupport regional and local activities designed to retain existing\nbusinesses and jobs within a region or locality, increase the viability\nof existing businesses, and stimulate and encourage the formation of new\nenterprises and small business growth.\n (b) The corporation shall, within available appropriations, award\ngrants or enter into contracts for services to eligible entities and\norganizations as set forth in this subdivision on a competitive basis,\nin response to requests for proposals, and through direct applications\naccepted at other times at the discretion of the corporation. Grants\nshall not exceed one hundred thousand dollars per project, and an\napplicant shall be permitted to apply for support in more than one\nproject area listed under paragraph (e) of this subdivision, but the sum\ntotal of grants received under this subdivision by any one applicant for\nmore than one project approved under paragraph (e) of this subdivision\nshall not exceed two hundred fifty thousand dollars.\n (c) For the purposes of this subdivision the corporation shall enter\ninto annual contracts for services or award grants in an amount not to\nexceed fifty percent of program or project costs in economically\ndistressed areas, or forty percent of such costs for eligible projects\nor programs in non-economically distressed areas, or seventy percent of\nprogram or project costs in empire zones established pursuant to article\neighteen-B of the general municipal law.\n (d) The corporation shall enter into no more than one contract or make\nmore than one grant per year per application under this subdivision\nregardless of the number of projects for which an applicant has applied\nand for which funding has been approved. In the case of applications for\nmultiple projects to be conducted by a single applicant, the corporation\nmay, at its discretion, provide a grant or enter into a contract for\nservices with the applicant for some or all of the projects for which an\napplicant has applied.\n (e) Not-for-profit corporations, business improvement districts and\ncommunity development organizations shall be eligible to apply for\nsupport under this subdivision to operate a program or programs of\nbusiness and economic development services to stabilize, retain or\nrevitalize existing businesses, and to assist small and new businesses,\nincluding, but not limited to assistance to individual businesses or\nbusiness sectors in such project areas as:\n (i) the analysis of industrial sectors;\n (ii) the provision of services, such as regulatory compliance,\nsecurity and marketing, to industries;\n (iii) productivity assistance to mature industries and small\nbusinesses, including but not limited to, high performance work\norganization and quality improvement programs;\n (iv) labor-management cooperation specific to an area or industry;\n (v) management services to industrial parks and incubator facilities;\n (vi) the creation of business support networks, including flexible\nmanufacturing networks composed of small businesses, surveys of existing\nbusinesses and business sectors, the formation of quality networks, the\ntargeting of firms or sectors with networking potential, analysis of\nnetwork firms' production potential, group marketing, group purchasing,\nshared employee programs, and the establishment of regular lines of\ncommunication between such firms;\n (vii) the establishment and staffing of network service centers for\nflexible manufacturing networks, combining business services,\nmarketing/procurement assistance, and technology demonstration/training\ncenters, such centers to be industry managed and to maintain strong\nconnections to labor unions, universities, and the services provided\nthrough the industrial effectiveness program pursuant to article seven\nof the economic development law, local or federal economic assistance\nprograms;\n (viii) export, marketing, procurement and subcontracting assistance to\nsmall and medium-sized industrial firms, including minority- and\nwomen-owned businesses, and to flexible manufacturing networks, and\nprograms to assist regional and multi-county business marketing and\nprocurement programs;\n (ix) assistance to targeted incubator facilities to support new firms\nproducing products and services for which there exists a stable demand\nbut no local production;\n (x) business planning, management assistance and counseling, and\nfinancial packaging assistance to small and medium-sized industrial\nfirms, including minority- and women-owned businesses, flexible\nmanufacturing networks, and new enterprises and small businesses,\nincluding the establishment of neighborhood-based business service\ncenters designed to deliver comprehensive technical assistance to new\nand small businesses in specific communities and neighborhoods;\n (xi) programs to assist economically distressed regions and\ncommunities to identify new business opportunities, plan for new\nenterprise development, and manage economic development projects;\n (xii) innovative programs of public and private cooperation to foster\nnew enterprise development and small business growth;\n (xiii) programs to assist new enterprises and small businesses to\nidentify and access public and private sources of equity, working\ncapital and other types of financing;\n (xiv) programs that improve the ability of small businesses to access\nstate job training programs;\n (xv) programs to assess the need for, or to implement total quality\nmanagement training programs, employee retraining, and skills\nremediation and/or upgrading;\n (xvi) employment exchange services such as job placement and job\ndevelopment;\n (xvii) tourism matching grants to regions, as defined by the\ncommissioner of economic development, to conduct tourism marketing,\npromotion and information activities;\n (xviii) programs to assist small businesses in developing workplace\npolicies, including but not limited to the design of employee benefit\nand assistance programs and developing child care programs;\n (xix) assistance to formulate and implement a business retention\nstrategy developed by the corporation in cooperation with a local\ndevelopment corporation. Such assistance may include grants to local\ndevelopment corporations as well as funding for services and expenses\nfor that purpose.\n (g) Applications for support or assistance under this subdivision\nshall be made in a form and manner as determined by the corporation, and\napplicants shall be required to meet the criteria and requirements set\nforth in subdivision three of this section and other criteria and\nrequirements determined by the corporation pursuant to this act,\nincluding:\n (i) the likelihood that state assistance will enable local\nnot-for-profit organizations or other eligible organizations to provide\nservices and activities not otherwise provided in the area served by the\napplicant;\n (ii) the potential of the project or program to stimulate or enhance\neconomic development in the area and to create or retain substantial,\npermanent private sector jobs;\n (iii) the innovative nature of the proposed project or program in\nfurtherance of community economic development; and\n (iv) the demonstrated ability of the applicant to deliver the proposed\nassistance and services.\n (h) Projects and programs in communities that do not qualify as\neconomically distressed areas shall be eligible for funding under this\nsubdivision if such projects meet one or more of the following purposes:\n (i) projects located in a non-distressed area that will significantly\ncontribute to the revitalization of an economically distressed area;\n (ii) support for business development projects of women, members of\nminority groups, or dislocated workers;\n (iii) assistance to small or medium-sized manufacturing firms which\nare seeking to modernize to remain competitive;\n (iv) projects to diversify the economic base of a community heavily\ndependent on a single industry;\n (v) projects that will prevent the loss or significant contraction of\na company which is the primary employer in a community, or where loss of\na company would have a major adverse impact on a community's overall\neconomic condition;\n (vi) projects involving expanding companies that will create\nsubstantial numbers of new, private sector jobs;\n (vii) projects creating permanent private sector jobs for dislocated\nworkers, public assistance recipients, or the long-term unemployed; or\n (viii) projects that are an integral part of a community commercial\nrevitalization strategy which contributes to the economic health of a\ncommunity, including the provision of matching funds to newly formed\nbusiness improvement districts pursuant to paragraph (i) of this\nsubdivision.\n (i) Notwithstanding any other subdivision of this section, the\ncorporation may make grants to newly formed small- and medium-sized\nbusiness improvement districts during their first three years of\noperation. Such grants shall provide up to sixty-six percent of eligible\nproject costs in highly distressed areas and up to fifty percent of\nproject costs in distressed areas.\n (j) Notwithstanding anything contained to the contrary in this\nsubdivision, section ten and subdivision two of section sixteen of this\nact shall not apply to any grants authorized under this subdivision.\n (8) Urban and community commercial revitalization revolving loan and\nloan guarantee fund. (a) The corporation shall, from any appropriations\nmade available for this purpose, establish an urban and community\ncommercial revitalization revolving loan fund account and a related\nadministrative expenses trust fund account in order to stimulate the\ndevelopment of central business districts and commercial strips through\na decentralized lending program operated in conjunction with business\nimprovement districts, local development corporations and other\nnot-for-profit corporations serving central business districts or\ncommercial strips. Assistance from this subdivision will be awarded\nthrough a competitive process initiated by the urban development\ncorporation, which includes a request for proposals as well as direct\napplications accepted at other times at the discretion of the\ncorporation.\n (b) Loans and loan guarantees made from the urban and community\ncommercial revitalization revolving loan fund shall be for improvements,\nexpansions, and start-ups of businesses located in central business\ndistricts and commercial strips.\n (c) Such loans and loan guarantees shall be administered by qualified\nbusiness improvement districts, local development corporations and other\nnot-for-profit corporations designated by the corporation on a\ncompetitive basis pursuant to a request for proposals process.\n (d) For the purpose of this subdivision, "local trust fund account"\nand "local revolving loan fund" shall mean a local urban and community\ncommercial revitalization revolving loan fund account.\n (e) The corporation shall pay into such fund any monies made available\nto the corporation for such fund from any source including monies\nappropriated by the state and any income earned by, or incremental to,\nthe fund due to the investment thereof, or any repayment of monies\nadvanced from the fund. The monies held in or credited to the fund shall\nbe expended for the purposes set forth in this subdivision and may not\nbe interchanged with any other account or fund, but may be commingled\nwith any other account for investment purposes. All loans disbursed by\nthe corporation from such fund shall be repaid into the fund.\n (f) The corporation shall allocate any monies made available for such\nfund for the purpose of establishing local trust fund accounts and a\ncorresponding number of local administrative expenses trust fund\naccounts.\n (g) The corporation shall establish a local administrative expenses\ntrust fund account for the benefit of each entity selected to administer\na local trust fund account pursuant to the following conditions:\n (i) the initial deposit in each local administrative expenses trust\nfund account shall be in an amount to be determined by the corporation,\nbut shall not exceed twenty-five thousand dollars;\n (ii) an entity designated to administer a local trust fund account may\nuse the funds in its local administrative expenses trust fund account\nfor expenses incurred by it in the start-up and administration of the\nfinancial and technical assistance programs it is required to administer\nunder this section; and\n (iii) the corporation shall also deposit into each local\nadministrative expenses trust fund account:\n (A) all income earned from the moneys on deposit in the corresponding\nlocal loan trust fund account during the first year of the entity's\nadministration of said account. Beginning with its second year in\nadministering a local revolving loan trust fund account, said amounts\nmay be used for costs incurred by the entity in administering the local\nrevolving loan trust fund account; and\n (B) repayments of interest on loans made from the corresponding local\nrevolving loan trust fund account. Such funds may be used for costs\nincurred at any time by an administering entity in its administration of\na local revolving loan trust fund hereunder;\n (iv) funds deposited in an administrative expenses trust fund account\nshall be disbursed by the corporation to the entity that administers the\ncorresponding local revolving loan trust fund account on a semiannual\nbasis and shall be expended by the entity in accordance with a\nsemiannual budget and any updates of same approved by the corporation.\n (g-1) Notwithstanding any other provision in this subdivision, where\napplicable, the corporation is authorized to enter into agreements as\nmay be necessary for the administration and reporting of funds repaid,\nreceived, expended or collected in a manner consistent with the\nprovisions in section sixteen-t of this act. The use of such funds by\nthe corporation shall be consistent with the terms, conditions and\nrestrictions set forth in this section, to provide financial assistance\nto eligible entities as designated under this subdivision. Outstanding\nexpenses, loans and other obligations executed prior to the effective\ndate of this paragraph shall be subject to the terms and conditions of\nthe original contract or contracts.\n (h) To be eligible to apply for designation to administer a local\ntrust fund account, a not-for-profit corporation shall be required to:\n (i) have represented on its board of directors, in such cases where an\narea to be served by a local trust fund account has located within its\nservice area an empire zone designated pursuant to section nine hundred\nsixty of the general municipal law, one or more of the following:\n (A) an empire zone capital corporation if established pursuant to\nsection nine hundred sixty-four of the general municipal law; or\n (B) community based local development corporations, industrial\ndevelopment agencies, or other not-for-profit entities which serve a\nmunicipality in which an empire zone has been established and which, as\none of their primary purposes, provide services and assistance to\nbusiness enterprises located or to be located in such empire zone,\nincluding minority- and women-owned businesses;\n (ii) have represented on its board of directors, selected local and\ncommunity development corporations, industrial development agencies, and\nother not-for-profit entities that provide services to community\nbusinesses and, as one of their primary purposes, provide services and\nassistance to business enterprises located in central business districts\nor commercial strips;\n (iii) have strong written commitments from any empire zone capital\ncorporation, local and community development corporation, industrial\ndevelopment agency, and other not-for-profit entities, if represented on\nits board, to assist the not-for-profit corporation in administering the\nlocal trust fund account, including the provision of business planning,\nloan application preparation, loan application analysis, management and\nother technical assistance as needed;\n (iv) have staff, or have access to staff from organizations which\nparticipate in the administration of a designated local revolving loan\ntrust fund with sufficient expertise to analyze applications for\nfinancial assistance, to regularly monitor financial assistance to\nclients, and to provide or arrange for the provision of management or\ntechnical assistance to clients;\n (v) have an effective plan to market its services and market programs\nprovided by the corporation and the department of economic development;\nand\n (vi) have established a loan committee composed of six or more persons\nexperienced in business management, commercial lending or in the\noperation of a for-profit business. Such committee shall review every\napplication submitted by an eligible entity for financial assistance\nfrom the local trust fund account and shall determine the feasibility of\nthe project proposed in the application and the likelihood of repayment\nof the requested financing and recommend to the governing body of the\neligible entity such action as the loan committee deems appropriate.\n (i) Any entity selected to administer a local revolving loan trust\nfund account shall be eligible to draw funds from the account as needed\nto provide the following types of financial assistance to eligible\nbusinesses upon certification to and acceptance by the corporation that\nsuch assistance complies with rules and regulations promulgated by the\ncorporation:\n (i) working capital loans, provided that the amount of the loan does\nnot exceed fifteen thousand dollars and the term of the loan does not\nexceed five years; and\n (ii) loans for the acquisition and/or improvement of real property and\nfor the acquisition of machinery and equipment, provided that the amount\nof the loan does not exceed twenty thousand dollars and the term of the\nloan does not exceed the useful life of the equipment or property.\n (j) Any other provisions of this subdivision notwithstanding, the\ncorporation may enter into agreements for other types of locally,\ncommunity or regionally administered loan programs interested in making\nsmall loans, including micro-loans, administered by municipalities and\nnot-for-profit organizations, to provide loans to businesses located in\ncommercial strips and central business districts located within their\nrespective service areas, provided that:\n (i) the corporation must secure certification from an entity\nadministering such a program that the loans will be made to businesses\nthrough these agreements and meet the purposes and requirements set\nforth pursuant to this subdivision;\n (ii) loan review committees are established by each such administering\nentity and that each entity designated under this paragraph have\nestablished a loan committee composed of six or more persons experienced\nin business management, commercial lending or in the operation of a\nfor-profit business;\n (iii) no other entity eligible under this subdivision which\nsatisfactorily meets all requirements of this program has applied to\nmeet the needs of an area proposed to be served under this paragraph;\nand\n (iv) the corporation shall not expend any more than twenty-five\npercent of the amount appropriated for programs pursuant to this\nsubdivision in any one fiscal year, or an amount appropriated\nspecifically for the purpose of this paragraph.\n (k) An entity designated to administer such a revolving loan trust\nfund account shall pay to the corporation for deposit any repayments\nreceived in connection with financial assistance provided from such\naccount pursuant to the following:\n (i) payments consisting of the repayment of the principal amount of a\nloan shall be deposited by the corporation in the local trust fund\naccount from which the loan was made; and\n (ii) the interest earned from the investment, by the corporation, of\nmonies in each local revolving loan trust fund during and after the\nsecond year of a selected entity's administration of said account shall\nbe deposited by the corporation into the corresponding local revolving\nloan trust fund account and used to provide the financial assistance to\nbusinesses located in commercial strips and central business districts.\n (k-1) Notwithstanding any other provision in this subdivision, where\napplicable, the corporation is authorized to enter into agreements as\nmay be necessary for the administration and reporting of funds repaid,\nreceived, expended or collected in a manner consistent with the\nprovisions in section sixteen-t of this act. The use of such funds by\nthe corporation shall be consistent with the terms, conditions and\nrestrictions set forth in this section, to provide financial assistance\nto eligible entities as designated under this subdivision. Outstanding\nexpenses, loans and other obligations executed prior to the effective\ndate of this paragraph shall be subject to the terms and conditions of\nthe original contract or contracts.\n (l) The decision to approve or reject an application for financial\nassistance pursuant to the provisions of this subdivision shall be made\nby the majority of the board of directors of the entity designated to\nadminister the local revolving loan trust fund account and such decision\nshall be final.\n (m) An entity designated to administer a local revolving loan trust\nfund account shall not provide any financial assistance authorized by\nthis subdivision unless the following conditions are met:\n (i) the applicant has a minimum equity interest of at least ten\npercent in the project;\n (ii) there is reasonable prospect of repayment;\n (iii) the project will comply with applicable environmental rules and\nregulations;\n (iv) the applicant has certified that it will not discriminate against\nany employee or any applicant for employment because of race, religion,\ncolor, national origin, sex, or age; and\n (v) a staff member or a representative of the entity designated to\nadminister the local revolving loan trust fund account acting in an\nofficial capacity has personally visited the project site or the\napplicant's place of business.\n (n) Financial assistance from the local trust fund shall not be made\navailable for:\n (i) projects that would result in the relocation of any business\noperation from one municipality within the state to another, provided,\nhowever, that such a project shall not be deemed ineligible if all\nmunicipalities from which such business will be relocated are notified\nin writing of the corporation's approval of such funding and the chief\nexecutive officers of the municipalities do not object to the\ncorporation in writing within a period of twenty days of receipt of the\nnotification;\n (ii) refinancing any portion of the total project cost or other\nexisting loans or debts of an applicant, except for the purpose of\ntransferring to the employees or to other local interests ownership of a\ncompany that would otherwise depart from or cease or substantially\nreduce operations in the state; and\n (iii) providing funds, directly or indirectly, for payment,\ndistribution, or as a loan, to owners, partners or shareholders of the\napplicant enterprise, except as ordinary income for services rendered.\n (o) An entity designated to administer a local revolving loan trust\nfund account may charge application, commitment and loan guarantee fees\npursuant to a schedule of fees adopted by such entity and approved by\nthe corporation.\n (p) An entity designated to administer a local revolving loan trust\nfund account shall submit annual reports to the corporation describing\nthe financial assistance provided pursuant to this subdivision,\nincluding:\n (i) the number of projects assisted, the amount and type of assistance\nprovided and a description of the projects;\n (ii) the number of jobs created or retained; and\n (iii) such other information as the corporation may require.\n (q) The corporation shall, assisted by the commissioner of economic\ndevelopment and in consultation with the department of economic\ndevelopment, promulgate rules and regulations in accordance with the\nstate administrative procedure act to implement the provisions of the\nurban and community commercial revitalization revolving loan fund\nestablished pursuant to this subdivision, and to implement such\nrevolving loan trust fund established pursuant to this subdivision,\nsetting forth procedures to be followed by, and the responsibilities and\nobligations of, entities designated to administer local trust fund\naccounts. Such rules and regulations shall be consistent with the\nprogram plan required by subdivision nineteen of section one hundred of\nthe economic development law. No funds shall be disbursed from amounts\nappropriated to implement the provisions of this section until such\nrules and regulations have been reviewed and approved by the\ncommissioner of economic development and the director of the budget.\n (9) Urban and community technical assistance. There is hereby\nestablished within the urban and community development program an urban\nand community technical assistance program. Assistance awarded under\nthis subdivision shall be awarded on a competitive basis, in response to\nrequests for proposals and through direct applications accepted at other\ntimes at the discretion of the corporation. The corporation shall, from\nappropriations made available therefor, provide assistance for the\npurpose of developing the capacity of local and regional development\norganizations and communities to undertake economic development\ninitiatives by:\n (a) Conducting outreach to communities in areas where little, if any,\neconomic development capacity exists, including identifying potential\napplicants and providing assistance to potential applicants in\ncompleting the application process for assistance and meeting\neligibility requirements for federal, state and local programs.\nAssistance may be provided through grants to not-for-profit economic\ndevelopment organizations and through the deployment by the corporation\nof circuit riders.\n (b) Providing community building grants to not-for-profit economic\ndevelopment or community development organizations where necessary, in\norganizing for economic development, analyzing potential development\nopportunities or obstacles to development, and developing economic\ndevelopment strategies, including feasibility studies for the creation\nof business improvement districts in highly distressed areas.\n (c) Providing technical and financial packaging assistance to\nnot-for-profit community development and economic development\norganizations through grants to third party providers of such services.\n (d) Contracting with third parties for the purpose of providing\ntechnical assistance to municipalities, not-for-profit organizations,\nlocal development corporations, local empire zone administrative boards,\nor business improvement districts to analyze potential development\nopportunities or obstacles.\n (e) Providing grants to not-for-profit economic development or\ncommunity development organizations for approved costs to strengthen\ntheir capacity to implement economic development, job creation, or\nbusiness retention strategies, including assistance to enable such\norganizations to provide technical and financial packaging assistance to\nlocal businesses, manage economic development projects, and provide\nother economic development services that are identified in their\nstrategic plans.\n (f) Creating an urban internship program to provide training and field\nexperience to individuals committed to working in highly distressed\ncommunities.\n (g) Organizing and coordinating seminars and conferences to facilitate\nthe exchange of information regarding commercial revitalization\nstrategies.\n (h) Establishing a community revitalization economic self-help program\nto assist public officials, community leaders, economic development and\ncommunity groups to undertake an economic development planning process\nand to organize for economic development. Eligible applicants for\nassistance under this paragraph shall consist of a municipality or a\nconsortium of municipalities from a region of the state, such regions as\nestablished by the commissioner of the department of economic\ndevelopment pursuant to section two hundred thirty of the economic\ndevelopment law.\n (i) Each training program shall require each participating\nmunicipality to:\n (A) establish an economic development planning group;\n (B) undertake a community profile and needs assessment;\n (C) undertake labor market and resource surveys; and\n (D) produce a five-year strategic plan and a one-year work program.\n (ii) Requests from municipalities or consortia of municipalities for\ntechnical assistance under this paragraph shall be made directly to the\ncorporation or through the regional offices of the department of\neconomic development.\n (iii) Participating municipalities shall be required to provide\nmatching funds in an amount at least equal to any funds provided by the\ncorporation under this paragraph.\n (iv) The corporation is authorized to enter into cooperative\nagreements with statewide and regional economic development\norganizations in New York state, acting as consultants, to conduct joint\ntraining programs to train and educate local officials and economic\ndevelopment practitioners pursuant to this paragraph. Any contract for\nservices with such organizations shall not exceed the sum of fifty\nthousand dollars for the conduct of each training program.\n (10) Standard project program application. The corporation shall, for\nassistance provided in this program, develop and use standard project\nprogram applications pursuant to rules and regulations, which shall be\npromulgated by the corporation in accordance with the state\nadministrative procedure act.\n (11) Standardization. The corporation shall streamline the review and\napproval process for projects and shall standardize all relevant\nattendant documentation and legal documents.\n (12) Master agreement. The corporation shall enter into a written\nmaster agreement with the director of the budget providing for repayment\nby such corporation to the state of New York of all amounts expended by\nthe state from such appropriation for loans, on terms which may include\ninterest thereon at a rate per annum to be determined by the director of\nthe budget and a copy of such agreement shall be filed with the state\ncomptroller, the chairman of the senate finance committee and the\nchairman of the assembly ways and means committee.\n (13) Repayment. Notwithstanding the provisions of section forty-a of\nthe state finance law and any other general or special law, such written\nagreement shall not require repayment at any time or on any terms\ninconsistent with the provisions of this act or the New York state\nproject finance agency act. Except, however, that the corporation may\nmake grants to projects using funds appropriated for this purpose and\nthat the repayment provision may not apply to such grants.\n (14) Report. The corporation shall: (a) Monitor the performance of\neach recipient of a grant or contract under the provisions of this\nsection and require periodic and annual reports from each such recipient\nat such time and in such a manner as prescribed by the chairman.\n (b) Submit to the director of the budget, the speaker of the assembly\nand the temporary president of the senate an evaluation of the\neffectiveness of the urban and community development program prepared by\nan entity independent of the corporation. The corporation shall select\nthe program evaluator through a request for proposal process. Such\nevaluation shall discuss the variety and types of programs supported by\nthe corporation under this program; and, as appropriate, the extent to\nwhich the program has served to create and maintain jobs; the extent to\nwhich the program has helped to increase the vitality of local\ncommunities; the extent to which the program is coordinated with other\nrelated state and local assistance programs; the extent to which the\nprogram serves minorities and women; the extent to which the program\nserves urban and rural areas; the extent to which the program serves\neconomically distressed and highly distressed areas; the extent to which\nthe program has helped to increase the capacity of local governments and\norganizations to undertake economic development activities; and such\nother components as the commissioner of economic development shall deem\nappropriate; and shall make recommendations for improvements which would\nmake the program more effective. Such evaluation shall be submitted by\nSeptember first, nineteen hundred ninety-five and by September first\nevery two years thereafter.\n (c) (i) The lending organization shall submit to the corporation\nannual reports stating: the number of program loans made; the amount of\nprogram funding used for loans; the use of loan proceeds by the\nborrower; the number of jobs created or retained; the status of each\noutstanding program loan, including fund balance; and such other\ninformation as the corporation may require.\n (ii) Beginning April 1, 2019, the corporation shall publish on its\nwebsite the information contained in the annual reports required under\nthis paragraph and paragraphs (a) and (b) of this subdivision in\naggregate form omitting borrower identifiable information.\n