Section 527-D. New facility project grants

1. Within the limit of funds
  made available by appropriation from the youth centers facility fund  as
  established  by  section  ninety-seven-ff  the  state  finance  law, the
  division is hereby authorized to make awards to municipalities  for  the
  acquisition,  demolition,  design  and construction of areas, buildings,
  structures or facilities owned or to be owned by a municipality and used
  as a youth center. A municipality or a municipality acting jointly  with
  a not-for-profit corporation may be awarded a new facility project grant
  pursuant  to  this  title  provided  that  title  to  any  of such area,
  building, structure  or  facilities  is  acquired  and/or  held  by  the
  municipality.
    2. No new facility project grant shall be awarded to a municipality or
  a  municipality  and  a not-for-profit corporation acting jointly unless
  the agreement as provided for in section five hundred twenty-seven-g  of
  this  title also contains provisions which provide that in the event the
  municipality discontinues use  of  the  facility  financed  by  the  new
  facility  project  grant  as  a  youth center facility during the period
  specified in the agreement as provided for in such section five  hundred
  twenty-seven-g, the project cost shall become due and owing to the state
  and  shall  be  payable  from  any  amounts  of  state  aid to which the
  municipality would be entitled.
    3. No municipality which receives a new facility project  grant  shall
  be  required  to  establish  a reserve fund and no reserve fund shall be
  considered part of the project cost for such project.