Section 45-E. Reimbursement

Expenditures made by a social services district
  for  grants made pursuant to this title shall be reimbursed by the state
  at the rate of fifty per centum, after  first  deducting  therefrom  any
  federal  funds  properly  received or to be received on account thereof;
  provided,  however,  that  in  lieu  of  local  financial  participation
  required  by this section, the commissioner may permit a social services
  district to  substitute  actual  or  in-kind  expenditures  incurred  by
  eligible  applicants  in  the  operation  of  eligible  projects  if the
  commissioner determines that:
    (a)  local  social  services  district  financial   participation   is
  unavailable  in  all  or  a  portion  of such expenditures although such
  district  financial participation in the single room  occupancy  support
  services  program  equals or exceeds such financial participation in the
  previous program year; and
    (b) such eligible projects require  financial  assistance  under  this
  title to ensure the financial viability of supportive services programs.
    Actual or in-kind expenditures made by an eligible applicant receiving
  assistance  pursuant  to  section  forty-five-c  of  this title shall be
  reimbursed by the state at the rate of  fifty  per  centum  after  first
  deducting  therefrom  any  federal  funds  properly  received  or  to be
  received on account thereof.