§ 43. Homeless housing and assistance contracts. 1. Within the limits
of funds available in the homeless housing and assistance fund, the
commissioner is hereby authorized to enter into contracts with
municipalities to provide state financial assistance for the project
costs attributable to the establishment of homeless housing projects.
The municipalities that enter into contracts with the commissioner shall
undertake the establishment of the homeless housing project or shall
contract with a not-for-profit corporation or charitable organization to
undertake the project, pursuant to this article.

2. Subject to the approval of the director of the budget, the
commissioner is hereby authorized to enter into contracts with
not-for-profit corporations or subsidiaries thereof, public corporations
or charitable organizations or subsidiaries thereof to provide state
financial assistance for the project costs attributable to the
establishment of homeless projects.

3. The state financial assistance shall be in the form of grants,
loans or loan guarantees, as the commissioner may determine provided,
however, that financial assistance to a for-profit subsidiary of a
not-for-profit corporation or of a charitable organization must be in
the form of a loan or loan guarantee. Any loan to a for-profit
subsidiary shall be repaid under such terms as will protect the
financial viability of the project. Subject to the approval of the
division of the budget, the commissioner may contract with other state
agencies, public benefit corporation's or private institutions to
administer a loan or loan guarantee program pursuant to regulations to
be promulgated by the commissioner.

4. The commissioner shall require that, in order to receive funds
pursuant to this article, the municipality, not-for-profit corporation
or subsidiary thereof, public corporation or charitable organization or
subsidiary thereof must submit an operating plan. Such plan shall
include:

(a) the manner in which the operating expenses of the project shall be
met;

(b) the services that will be provided to homeless persons, including
procedures for intake, referral and outreach;

(c) the responsibilities of the municipality and social services
district for the operation of the project;

(d) the specific population that will be served by the project and how
the project will address the population's special needs;

(e) the category of facility proposed to be established; and

(f) evidence demonstrating that such project complies or will comply
with existing local, state and federal laws and regulations.

5. The commissioner may use up to one percent of the appropriation for
any fiscal year to pay for technical assistance in support of project
development and operation. Technical assistance may include assistance
with general project development and operation, support services
development, architecture and engineering, legal services and financial
services and may be provided by individuals and not-for-profit or
business corporations. The providers of technical assistance shall be
chosen by the department based on such information as the department
shall require in a request for proposals or in any other competitive
process which satisfies the provisions of the state finance law.

6. Prior to entering into a contract for the establishment and
operation of a homeless project pursuant to this section, the
commissioner shall determine that the not-for-profit corporation or
subsidiary thereof, public corporation or charitable organization or
subsidiary thereof that proposes to undertake the homeless project is a
bona fide organization which shall have demonstrated by its past and
current activities that it has the ability to maintain, manage or
operate homeless projects, that the organization is financially
responsible, that the proposed project is financially viable and that
the project plan has been determined to be appropriate for the needs of
the homeless in the relevant community.

7. Every contract entered into for the establishment and operation of
a homeless project pursuant to this article shall contain a provision
that in the event the property which is the subject of such contract
ceases to be used as a homeless project during a seven-year period
commencing with the date of the commissioner's written approval of
occupancy of the homeless project, or such longer period of time as may
be established in the contract, or in case of any other substantial
violation, the commissioner may terminate the contract and may require
the repayment of any moneys previously advanced to the municipality,
not-for-profit corporation or subsidiary thereof, public corporation or
charitable organization or subsidiary thereof pursuant to the terms of
such contract. Where the municipality has entered into a contract with
a not-for-profit corporation or subsidiary thereof, public corporation
or charitable organization or subsidiary thereof, the commissioner may,
pursuant to this subdivision, require that the municipality terminate
the contract with such corporation. Any money repaid pursuant to this
subdivision shall be returned to the homeless housing and assistance
fund.

8. Each contract entered into for the establishment and operation of a
homeless project pursuant to this article shall be subject to the
approval of the director of the budget and shall provide for payment to
the municipality, not-for-profit corporation or subsidiary thereof,
public corporation or charitable organization or subsidiary thereof for
the project costs related to the homeless project to be established by
it, pursuant to a payment schedule. The full amount of the contract, or
any appropriate portion thereof, as determined by the commissioner and
subject to the approval of the director of the budget, shall be
available for payment at any time on or after the effective date of the
contract.

9. Notwithstanding any other provision of this article, the
commissioner may, subject to the approval of the director of the budget,
enter into contracts to provide financial assistance for other than
project costs where such financial assistance can be demonstrated to be
necessary; provided, however, that no more than twenty-five per centum
of the total amount appropriated for the purposes of this article in any
fiscal year shall be allocated in contracts for other than project
costs. In determining whether financial assistance for other than
project costs is necessary, the commissioner shall consider the proposed
project's plan for meeting operating expenses, the efforts made by the
contracting organizations to secure alternative sources of funding for
other than project costs, and such other factors as the commissioner
shall deem appropriate.

10. Notwithstanding any other provision of this article, the state
shall not, in the exercise of its responsibilities pursuant to this
article, assume the legal title to projects developed pursuant to this
article.

11. The municipality, not-for-profit corporation or subsidiary
thereof, public corporation or charitable organization or subsidiary
thereof seeking financial assistance pursuant to this article shall,
within thirty days of its application for such assistance, notify the
local planning board, as defined by section twenty-seven of the general
city law, section two hundred seventy-one of the town law, section 7-718
of the village law, or section eighty-four of the charter of the city of
New York, appropriate for the geographic area in which the proposed
homeless project would be located, and shall provide such board with
information regarding the proposed homeless project.