§ 159-m. Designation and redesignation of eligible entities in
unserved areas. 1. Qualified organization in or near area. (a) In
general. If any geographic area of the state is not, or ceases to be,
served by an eligible entity under this article, and if the governor
decides to serve such area, the governor may solicit applications from,
and designate as an eligible entity

(1) a private nonprofit organization (which may include an eligible
entity) that is geographically located in the unserved area, that is
capable of providing a broad range of services designed to eliminate
poverty and foster self-sufficiency, and that meets the requirements of
this article; and

(2) a private nonprofit eligible entity that is geographically located
in an area contiguous to or within reasonable proximity of the unserved
area and that is already providing related services in the unserved
area.

(b) Requirement. In order to serve as the eligible entity for the
area, an entity described in subparagraph two of paragraph (a) of this
subdivision shall agree to add additional members to the board of the
entity to ensure adequate representation

(1) in each of the three required categories described in paragraph
(a) of subdivision two of section one hundred fifty-nine-e of this
article, by members that reside in the community comprised by the
unserved area; and

(2) in the category described in subparagraph two of paragraph (a) of
subdivision two of section one hundred fifty-nine-e of this article, by
members that reside in the neighborhood to be served.

2. Special consideration. In designating an eligible entity under
subdivision one of this section, the governor shall grant the
designation to an organization of demonstrated effectiveness in meeting
the goals and purposes of this article and may give priority, in
granting the designation, to eligible entities that are providing
related services in the unserved area, consistent with the needs
identified by a community-needs assessment.

3. No qualified organization in or near area. If no private, nonprofit
organization is identified or determined to be qualified under
subdivision one of this section to serve the unserved area as an
eligible entity the governor may designate an appropriate political
subdivision of the state to serve as an eligible entity for the area. In
order to serve as the eligible entity for that area, the political
subdivision shall have a tripartite board or other mechanism as required
in section one hundred fifty-nine-e of this article.