Section 904. Payments to neighborhood preservation companies for neighborhood preservation activities

1. Each contract entered into with
  a neighborhood preservation company shall provide  for  payment  to  the
  neighborhood   preservation   company   for   neighborhood  preservation
  activities to be performed by it.
    2. Payment to neighborhood preservation  companies  pursuant  to  this
  article shall be restricted to sums required for the payment of salaries
  and  wages  to  employees of such companies who are engaged in rendering
  neighborhood  preservation   activities,   fees   to   consultants   and
  professionals   retained  by  them  for  planning  and  performing  such
  activities and  other  costs  and  expenses  directly  related  to  such
  employees, consultants and professionals.
    3.  In  no  event shall any contract or payment be made, nor shall any
  payments be used, to defray  the  costs  of  the  construction,  repair,
  renovation,  rehabilitation, operation, demolition, clearance or sealing
  of any building or other structure, except that such funds may  be  used
  for   planning   any   such  activity  and  for  renovating,  repairing,
  furnishing, equipping and operating an office facility  to  be  used  in
  connection  with  the conduct of neighborhood preservation activities by
  the neighborhood preservation company. Payments shall  be  made  by  the
  division  to  the neighborhood preservation company, not less frequently
  than semi-annually, at or prior to the commencement of  each  such  time
  period,  to  compensate  such  company for the neighborhood preservation
  activities which it shall  undertake  to  perform  provided,  that  with
  respect  to  contracts entered into on or after June thirtieth, nineteen
  hundred ninety-seven the  first  such  payment  shall  be  made  by  the
  division  beginning  on or after July first of the fiscal year for which
  an appropriation in support  of  such  payment  was  made  and  provided
  further  that  the  final  such payment to the neighborhood preservation
  company shall be made no later than March thirty-first  of  such  fiscal
  year,  unless  such  payment  has  been withheld pursuant to subdivision
  eight of section nine hundred three of this article.
    4. In negotiating each contract, the division shall consider and  take
  into  account any and all other sums available or anticipated to be made
  available to the neighborhood preservation  company  from  any  and  all
  sources  which  may  be  used  to  defray  the costs of the neighborhood
  preservation activities set forth in the  contract,  including,  without
  limitation,  fees generated by the management of housing accommodations,
  contributions  from  private  foundations,   corporations,   firms   and
  individuals  and  funds  received under grants and contracts pursuant to
  any program or programs operated or  administered  by  any  governmental
  agency  or  instrumentality and shall make a determination that the sums
  available or anticipated to  be  made  available  for  the  neighborhood
  preservation company from such other sources, together with the value of
  services to be rendered for the benefit of the neighborhood preservation
  company  for  which  payment is not required to be made by such company,
  amount to at least thirty-three and one-third percent of the  amount  of
  such contract.