Section 1003. Contracts with not-for-profit corporations for housing preservation and community renewal activities

1. The  commissioner  may
  enter  into  contracts  with  corporations  incorporated pursuant to the
  not-for-profit corporation law (or such  law  together  with  any  other
  applicable   law)  for  the  performance  of  housing  preservation  and
  community renewal activities within a region, subject to the  provisions
  of this article.
    2.  Prior  to  entering  into  a  contract  with  a  corporation,  the
  commissioner shall have made a finding that  the  region  in  which  the
  activities are proposed to be conducted contains a significant amount of
  deteriorating  or  substandard  housing  which  is  not being adequately
  repaired,  renovated,  upgraded,  modernized  or   rehabilitated   under
  existing  programs  so  as  to  provide sound housing at costs which the
  residents of such region can afford; that the corporation which proposes
  to contract with the commissioner is  a  bona  fide  organization  which
  shall  have  been  in  existence  either  as  a  corporation  or  as  an
  unincorporated,  organized  group  and  performing  significant  housing
  preservation and community renewal activities for at least one full year
  prior  to  entering  into  any  contract with the commissioner and which
  shall have demonstrated by its immediate  past  and  current  activities
  that  it  has  the  ability  to  preserve,  repair,  maintain, renovate,
  rehabilitate, manage or operate housing accommodations or to  engage  in
  other  housing  preservation  and  community  renewal activities in such
  region; that the housing preservation and community  renewal  activities
  which  are  to be performed pursuant to the proposed contract are needed
  by the region; and that the corporation possesses  or  will  acquire  or
  gain access to the requisite staff, office facilities with direct access
  to  such  region,  equipment  and  expertise to enable it to perform the
  activities which it proposes to undertake  pursuant  to  such  contract;
  provided,  however,  that  it  shall  not be a bar to the commissioner's
  contracting with a corporation that one or more other organizations, are
  conducting housing preservation and community renewal activities  wholly
  or  partially within the same region whether or not pursuant to contract
  with the commissioner.
    3. The commissioner may enter into a contract pursuant to this section
  only if he determines:
    (a) that the region proposed to be  served  by  the  applicant  is  an
  appropriate  portion  of the rural area of the state for the performance
  of activities pursuant to this article by a corporation;
    (b) that such region  contains  significant  unmet  housing  needs  of
  persons  of  low  income,  that  a substantial portion of its population
  consists of such persons, and that the  housing  stock  in  the  region,
  because   of   its   age,  deterioration,  or  other  factors,  requires
  improvement in order to preserve the communities within the region;
    (c) that the particular activities to be performed by the  corporation
  will  meet one or more needs of the region and are reasonably calculated
  to have a positive effect on  regional  preservation,  stabilization  or
  improvement;
    (d)  that the corporation's officers, directors and members are fairly
  representative of the residents and other legitimate  interests  of  the
  region,  that  they  may  be  expected  to  carry  out the contract in a
  responsible manner,  and  that  a  majority  of  the  directors  of  the
  corporation are residents of the region;
    (f)  that  any  fees  received  or  proposed  to  be  received  by the
  corporation in connection with its activities pursuant to  the  contract
  are fair and reasonable;

    (g) that the corporation will, to the extent possible, give preference
  in   hiring   to   residents   of  the  region  who  are  unemployed  or
  underemployed;
    (h) that the corporation will, to the maximum extent feasible, dispose
  of  residential buildings owned or to be acquired by it to the occupants
  thereof or to  cooperative  groups  whose  members  shall  be  occupants
  thereof; and
    (i) that due consideration will be given to the interests of occupants
  of properties owned or to be acquired by the corporation.
    4. Contracts pursuant to this section shall be for a period of no more
  than  one  year,  but  may be renewed or extended from year to year, and
  shall provide for payment by the division of no more  than  one  hundred
  thousand  dollars  per  year,  provided  that  in  any year in which the
  aggregate sum of three hundred thousand dollars shall have been  reached
  and all succeeding years, the annual contract amount shall be subject to
  a  limit  of  ninety-seven  thousand five hundred dollars per year; they
  shall define with particularity the region  or  portion  thereof  within
  which the housing preservation and community renewal activities shall be
  performed; they shall specify the nature of the housing preservation and
  community  renewal  activities  which  shall  be performed including the
  approximate number of buildings, residential dwelling  units  and  local
  retail  and  service  establishments which shall be affected; they shall
  locate and  describe,  with  as  much  particularity  as  is  reasonably
  possible,  the  buildings with respect to which such activities shall be
  performed during the contract term; and they shall specify the number of
  persons, salaries or rates of compensation and a description  of  duties
  of  those  who  shall  be  engaged  by  the  corporation  to perform the
  activities embraced by the contract together with a  schedule  of  other
  anticipated expenses.
    5.  Prior to renewing or extending a contract or entering a succeeding
  contract with a corporation the division shall determine that:
    (a) the corporation shall have  substantially  completed  the  housing
  preservation  and community renewal activities specified in the contract
  to be renewed, extended, or succeeded;
    (b) the corporation shall have received the sums, services, and  funds
  specified  in  subdivision  four  of  section  one thousand four of this
  article; and
    (c) the activities carried out by  the  corporation  pursuant  to  its
  contract shall have had a significant impact on the community's needs as
  specified in the contract.
    6.  Prior to terminating, not renewing or not extending a contract the
  division shall:
    (a) determine that the corporation is in violation of  the  terms  and
  conditions  of  the  contract  or  that  funds  provided pursuant to the
  contract are being expended in a manner not consistent with the terms of
  the contract or the provisions of this article; or
    (b) determine that necessary and appropriate technical assistance  has
  been  provided  without significant improvement in the activities of the
  corporation; and
    (c) provide the corporation with written notice, at  least  forty-five
  days in advance, of its intent to terminate, not renew or not extend the
  contract  and  provide the corporation with an opportunity to appear and
  be heard before the division  with  respect  to  the  reasons  for  such
  proposed  termination,  non-renewal  or  non-extension. At the same time
  that the corporation is notified of the division's intent to  terminate,
  not renew or not extend the contract, the division shall likewise inform
  the  senate  and  assembly  members  who  represent  areas  within  such
  corporation's geographic boundaries.

    7. The division shall establish, for renewal of contracts, a procedure
  which provides the corporation with at least forty-five days  notice  of
  the  corporation's  obligations  and rights in that process, informs the
  corporation of the amount of the renewal contract, and  facilitates  the
  timely execution of the contract and disbursement of funds.
    8. The division may temporarily withhold payments and may elect not to
  renew  or  extend  a  contract  or  enter a succeeding contract with any
  not-for-profit corporation if the corporation is not in compliance  with
  its  contract,  has  without  good  cause failed to submit documentation
  required under contract  or  requested  by  the  division  to  make  the
  determinations  required  under  subdivision five of this section or has
  not satisfied any other conditions  consistent  with  this  article  for
  renewing or extending a contract or entering a succeeding contract.