§ 922. Urban initiative contracts. 1. Within the limit of funds
available in the urban initiative program, the corporation is hereby
authorized to enter into contracts with eligible applicants to provide
state financial assistance for the project costs attributable to urban
initiatives projects within neighborhoods. The state financial
assistance shall be either in the form of payments, grants or loans, as
the corporation shall determine. No more than fifty percent of the total
amount appropriated pursuant to this article in any fiscal year shall be
allocated to urban initiatives projects located within any single
municipality.

2. The total state payment pursuant to any one contract shall not
exceed two hundred thousand dollars and the contract shall provide for
completion of the project within a reasonable period, as specified
therein which shall not in any event exceed two years from its
commencement. Up to ten percent of the project cost may be used for the
eligible applicant's operating expenses including expenses related to
organization operating support and administration of the contract.

3. The corporation shall require that, in order to receive funds
pursuant to this article, the eligible applicant must submit an
operating plan which shall include but not be limited to project
feasibility, leveraging, impact on the community, group capability, and
affirmative action and minority business participation. Such plan shall
be submitted pursuant to a request for proposals issued by the
corporation.

4. The eligible applicant which proposes to contract with the
corporation shall be a bona fide organization or a successor
organization with appropriate experience in community revitalization
activities and shall demonstrate by its immediate past and current
activities that it has, or shows that it can acquire, the capability and
expertise to successfully complete the proposed project. The eligible
applicant's officers, directors and members must be representative of
the residents and other legitimate interests of the neighborhood.

5. Occupant selection procedures shall be established which provide
that any lawful occupants who live in a project prior to rehabilitation
shall not be displaced as a result of such rehabilitation, other than
temporarily, in which case suitable relocation arrangements shall be
provided, and that any additional occupants who move into a project are
persons of low income. Preference in selection of such additional
occupants (i) shall be given to persons or families with the lowest
incomes possible, given the income requirements of the project; and (ii)
shall also be given to persons or families whose current housing fails
to meet basic standards of health and safety and who have little
prospect of improving the condition of their housing except by residing
in a project receiving payments, grants or loans under this article.

6. For any application for such a contract under this article, the
corporation shall provide the applicant with a list of conditions that
must be met prior to entering into a contract pursuant to this article.
Within fifteen working days of receipt by the corporation of all
documents in satisfaction of the list, the corporation shall notify the
applicant of the sufficiency or insufficiency of the documents. After
satisfaction by the applicant of all conditions required by the
corporation prior to entering into a contract the corporation shall
enter into the contract within forty-five working days of satisfaction
of such conditions.