§ 527-d. New facility project grants. 1. Within the limit of funds
made available by appropriation from the youth centers facility fund as
established by section ninety-seven-ff the state finance law, the
division is hereby authorized to make awards to municipalities for the
acquisition, demolition, design and construction of areas, buildings,
structures or facilities owned or to be owned by a municipality and used
as a youth center. A municipality or a municipality acting jointly with
a not-for-profit corporation may be awarded a new facility project grant
pursuant to this title provided that title to any of such area,
building, structure or facilities is acquired and/or held by the
municipality.

2. No new facility project grant shall be awarded to a municipality or
a municipality and a not-for-profit corporation acting jointly unless
the agreement as provided for in section five hundred twenty-seven-g of
this title also contains provisions which provide that in the event the
municipality discontinues use of the facility financed by the new
facility project grant as a youth center facility during the period
specified in the agreement as provided for in such section five hundred
twenty-seven-g, the project cost shall become due and owing to the state
and shall be payable from any amounts of state aid to which the
municipality would be entitled.

3. No municipality which receives a new facility project grant shall
be required to establish a reserve fund and no reserve fund shall be
considered part of the project cost for such project.