Section 43. Homeless housing and assistance contracts

1. Within the limits
  of  funds  available  in  the  homeless housing and assistance fund, the
  commissioner  is  hereby  authorized  to  enter  into   contracts   with
  municipalities  to  provide  state  financial assistance for the project
  costs attributable to the establishment of  homeless  housing  projects.
  The municipalities that enter into contracts with the commissioner shall
  undertake  the  establishment  of  the homeless housing project or shall
  contract with a not-for-profit corporation or charitable organization to
  undertake the project, pursuant to this article.
    2. Subject to  the  approval  of  the  director  of  the  budget,  the
  commissioner   is   hereby  authorized  to  enter  into  contracts  with
  not-for-profit corporations or subsidiaries thereof, public corporations
  or charitable organizations or subsidiaries  thereof  to  provide  state
  financial   assistance   for  the  project  costs  attributable  to  the
  establishment of homeless projects.
    3. The state financial assistance shall be  in  the  form  of  grants,
  loans  or  loan  guarantees, as the commissioner may determine provided,
  however, that financial assistance  to  a  for-profit  subsidiary  of  a
  not-for-profit  corporation  or  of a charitable organization must be in
  the form of  a  loan  or  loan  guarantee.  Any  loan  to  a  for-profit
  subsidiary  shall  be  repaid  under  such  terms  as  will  protect the
  financial viability of the project.  Subject  to  the  approval  of  the
  division  of  the budget, the commissioner may contract with other state
  agencies,  public  benefit  corporation's  or  private  institutions  to
  administer  a  loan or loan guarantee program pursuant to regulations to
  be promulgated by the commissioner.
    4. The commissioner shall   require that, in order  to  receive  funds
  pursuant  to  this article, the municipality, not-for-profit corporation
  or subsidiary thereof, public corporation or charitable organization  or
  subsidiary  thereof  must  submit  an  operating  plan.  Such plan shall
  include:
    (a) the manner in which the operating expenses of the project shall be
  met;
    (b) the services that will be provided to homeless persons,  including
  procedures for intake, referral and outreach;
    (c)  the  responsibilities  of  the  municipality  and social services
  district for the operation of the project;
    (d) the specific population that will be served by the project and how
  the project will address the population's special needs;
    (e) the category of facility proposed to be established; and
    (f) evidence demonstrating that such project complies or  will  comply
  with existing local, state and federal laws and regulations.
    5. The commissioner may use up to one percent of the appropriation for
  any  fiscal  year  to pay for technical assistance in support of project
  development and operation.  Technical assistance may include  assistance
  with   general  project  development  and  operation,  support  services
  development, architecture and engineering, legal services and  financial
  services  and  may  be  provided  by  individuals  and not-for-profit or
  business corporations. The providers of technical  assistance  shall  be
  chosen  by  the  department  based on such information as the department
  shall require in a request for proposals or  in  any  other  competitive
  process which satisfies the provisions of the state finance law.
    6.  Prior  to  entering  into  a  contract  for  the establishment and
  operation  of  a  homeless  project  pursuant  to  this   section,   the
  commissioner  shall  determine  that  the  not-for-profit corporation or
  subsidiary thereof, public corporation  or  charitable  organization  or
  subsidiary  thereof that proposes to undertake the homeless project is a
  bona fide organization  which shall have demonstrated by  its  past  and

  current  activities  that  it  has  the  ability  to maintain, manage or
  operate  homeless  projects,  that  the  organization   is   financially
  responsible,  that  the  proposed project is financially viable and that
  the  project plan has been determined to be appropriate for the needs of
  the homeless in the relevant community.
    7. Every contract entered into for the establishment and operation  of
  a  homeless  project  pursuant to this article shall contain a provision
  that in the event the property which is the  subject  of  such  contract
  ceases  to  be  used  as  a  homeless project during a seven-year period
  commencing with the date  of  the  commissioner's  written  approval  of
  occupancy  of the homeless project, or such longer period of time as may
  be established in the contract, or in  case  of  any  other  substantial
  violation,  the  commissioner may terminate the contract and may require
  the repayment of any moneys previously  advanced  to  the  municipality,
  not-for-profit  corporation or subsidiary thereof, public corporation or
  charitable organization or subsidiary thereof pursuant to the  terms  of
  such  contract.  Where the municipality has entered into a contract with
  a not-for-profit corporation or subsidiary thereof,  public  corporation
  or  charitable organization or subsidiary thereof, the commissioner may,
  pursuant to this subdivision, require that  the  municipality  terminate
  the  contract  with such corporation.  Any money repaid pursuant to this
  subdivision shall be returned to the  homeless  housing  and  assistance
  fund.
    8. Each contract entered into for the establishment and operation of a
  homeless  project  pursuant  to  this  article  shall  be subject to the
  approval of the director of the budget and shall provide for payment  to
  the  municipality,  not-for-profit  corporation  or  subsidiary thereof,
  public corporation or charitable organization or subsidiary thereof  for
  the  project  costs related to the homeless project to be established by
  it, pursuant to a payment schedule.  The full amount of the contract, or
  any appropriate portion thereof, as determined by the  commissioner  and
  subject  to  the  approval  of  the  director  of  the  budget, shall be
  available for payment at any time on or after the effective date of  the
  contract.
    9.     Notwithstanding  any  other  provision  of  this  article,  the
  commissioner may, subject to the approval of the director of the budget,
  enter into contracts to provide  financial  assistance  for  other  than
  project  costs where such financial assistance can be demonstrated to be
  necessary; provided, however, that no more than twenty-five  per  centum
  of the total amount appropriated for the purposes of this article in any
  fiscal  year  shall  be  allocated  in  contracts for other than project
  costs. In  determining  whether  financial  assistance  for  other  than
  project costs is necessary, the commissioner shall consider the proposed
  project's  plan  for meeting operating expenses, the efforts made by the
  contracting organizations to secure alternative sources of  funding  for
  other  than  project  costs,  and such other factors as the commissioner
  shall deem appropriate.
    10. Notwithstanding any other provision of  this  article,  the  state
  shall  not,  in  the  exercise  of its responsibilities pursuant to this
  article, assume the legal title to projects developed pursuant  to  this
  article.
    11.   The   municipality,  not-for-profit  corporation  or  subsidiary
  thereof, public corporation or  charitable  organization  or  subsidiary
  thereof  seeking  financial  assistance  pursuant to this article shall,
  within thirty days of its application for such  assistance,  notify  the
  local  planning board, as defined by section twenty-seven of the general
  city law, section two hundred seventy-one of the town law, section 7-718
  of the village law, or section eighty-four of the charter of the city of

  New York, appropriate for the geographic  area  in  which  the  proposed
  homeless  project  would  be  located, and shall provide such board with
  information regarding the proposed homeless project.