§ 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 merged corporations' office facilities may be
located outside such region if they are located in a municipality wholly
contained within the merged corporations' region, and provided further,
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; 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.