§ 1004. Payments pursuant to contracts. 1. Each contract entered into
pursuant to this article shall provide for payment to the corporation
for the housing preservation and community renewal activities to be
performed by it.

2. Payments pursuant to this section shall be restricted to sums
required for the compensation of persons employed by, and consultants
retained by, the corporation for the performance of the activities
covered by the contract and other costs and expenses directly related to
such employees and consultants.

3. No part of any such payment shall be used to defray in whole or in
part the cost of acquisition, improvement, rehabilitation, operation or
demolition of any building or other structure, but this provision shall
not prohibit the use of such funds for planning any such activity or for
the expenses of providing office and related facilities for the
corporation for use in carrying out its activities pursuant to the
contract. Payments shall be made by the division to the corporation at
such periods, not less frequently than semi-annually, as shall be
provided in the contract. Such payments shall be made at or prior to the
commencement of each such time period, to compensate the corporation for
the activities which are to be carried out during such time period
provided, that with respect to contracts entered into on or after June
thirtieth, nineteen hundred ninety-seven the first such payment shall be
made by the division beginning on or after July first of the fiscal year
for which an appropriation in support of such payment was made and
provided further that the final such payment to the corporation shall be
made no later than March thirty-first of such fiscal year, unless such
payment has been withheld pursuant to subdivision eight of section one
thousand three of this article.

4. In negotiating each contract, the division shall consider and take
into account any and all other sums available or anticipated to be made
available to the corporation from any and all sources which may be used
to defray the costs of the housing preservation and community renewal
activities set forth in the contract, including, without limitation,
fees generated by the management of housing accommodations,
contributions from private foundations, corporations, firms and
individuals and funds received under grants and contracts pursuant to
any program or programs operated or administered by any governmental
agency or instrumentality and shall make a determination that the sums
available or anticipated to be made available for the corporation from
such other sources, together with the value of services to be rendered
for the benefit of the corporation for which payment is not required to
be made by such corporation, amount to at least thirty-three and
one-third percent of the amount of such contract.

5. When disbursing funds for contracts with not-for-profit
corporations, pursuant to section one thousand three of this article,
the division shall use the following criteria, formulas and tables to
determine the distribution of funds:

(a) (i) The total unmerged corporation funding shall equal the current
number of unmerged corporation contracts multiplied by the per group
award.

(ii) The unmerged corporation funding shall equal the per group award.

(iii) The merged corporation funding shall equal the funding
modification multiplied by the per group award.

(b) Merged corporation funding shall be determined on an individual
basis for each not-for-profit corporation. The following tables show the
funding modification to be used:

(i) In the case of two not-for-profit corporations merging, the
following table shall be used:

Years since Funding

merger modification

1 200%

2 190%

3 180%

4 170%

5 160%

6 150%

(ii) In the case of three not-for-profit corporations merging, the
following table shall be used:

Years since Funding

merger modification

1 300%

2 290%

3 280%

4 270%

5 260%

6 250%

7 240%

8 230%

9 220%

10 210%

11 200%

(iii) In the case of four or more not-for-profit corporations merging,
the following table shall be used:

Years since Funding

merger modification

1 400%

2 390%

3 380%

4 370%

5 360%

6 350%

7 340%

8 330%

9 320%

10 310%

11 300%

12 290%

13 280%

14 270%

15 260%

16 250%

(c) If a not-for-profit corporation that has undergone a merger
continues to renew their contract beyond the timeframes listed in the
above tables, it shall have its funding determined using the last
funding modification listed.

(d) The merged corporation savings shall be determined on an
individual basis for each merged corporation. It shall be calculated by
subtracting the amount of such corporation's merged corporation funding
from the amount the merged corporations would have received if they had
maintained separate contracts.

(e) The per group award shall equal the total funding available minus
the amount for the contract with the rural preservation coalition which
shall equal the total unmerged company funding plus the sum of the
merged company funding.