§ 16-g. Child care facilities construction program. 1. Definitions.
For the purposes of this section:

(a) "Child care facilities construction project" shall mean a project
for the establishment, expansion, and development of licensed
not-for-profit child day care centers which are intended to serve the
needs of low-income working families or economically distressed areas or
highly distressed communities. The project shall be used as a licensed
child day care center for a period of at least ten years with at least
one-quarter of the available day care placements offered to the local
department of social services or set aside for persons eligible for
low-income day care subsidies.

(b) "Economically distressed areas" shall have the same meaning as
provided for in section 16-d of this act.

(c) "Highly distressed" shall have the same meaning as provided for in
section 16-d of this act.

(d) "Not-for-profit corporation" shall mean a corporation organized
under the provisions of the not-for-profit corporation law.

2. The corporation shall, from any appropriations made available for
this purpose, establish a child care facilities construction program
which shall offer the following assistance:

(a) Child care construction grants pursuant to paragraphs (a) and (b)
of subdivision 3 of this section.

(b) Child care construction revolving loans and loan guarantees
pursuant to paragraphs (c) and (d) of subdivision 3 of this section.

3. To the extent that monies are appropriated for the child care
facilities construction program, the corporation shall provide financing
for child care facilities construction projects for the establishment,
expansion and development of not-for-profit child day care centers which
are intended to serve the needs of low-income working families or
economically distressed areas or highly distressed communities. The
corporation, in consultation with the department of economic
development, shall develop a joint request for applications with the
department of social services soliciting potential applicants seeking
assistance for the development of licensed, not-for-profit child day
care centers. In determining award recipients, the corporation shall
consider, among other factors, the department of social services'
grouped rankings of the applications. Such financing shall consist of
grants, revolving loans and loan guarantees for the establishment,
expansion, and development of licensed, not-for-profit child day care
centers in accordance with section 410-ccc of the social services law
and this section.

(a) Grants shall be used for general project development costs,
including, but not limited to:

(i) the acquisition, design, construction, improvement or renovation
of the site; and

(ii) the purchase of necessary equipment.

(b) For the purposes of this subdivision grants shall not exceed
eighty percent of the total project cost in highly distressed
communities; shall not exceed sixty-five percent of the total project
cost in economically distressed areas; and shall not exceed fifty
percent of the total project cost in non-economically distressed areas.

(c) Child care construction revolving loan and loan guarantees. The
corporation shall provide revolving loans and loan guarantees for the
establishment of licensed, not-for-profit child day care centers. Such
revolving loans and loan guarantees shall be for construction costs,
including, but not limited to the design, construction, improvement or
renovation of a child day care center, and may include interim
financing.

(d) Child care construction revolving loan and loan guarantee fund.
For the purposes of this subdivision, the corporation shall establish a
child care construction revolving loan and loan guarantee fund account.
The corporation shall determine the terms and interest rates of such
loans, except that no loan shall exceed eighty percent of the total
project cost in highly distressed communities; sixty-five percent of the
total project cost in economically distressed areas; and fifty percent
of the total project cost in non-economically distressed areas. In
instances where an otherwise qualified applicant lacks equity in a
project, equity participation may include any commitment for grants.
Payments consisting of the repayment of the principal amount of the loan
and interest shall be deposited by the corporation into the child care
construction revolving loan fund account from which the loan was made.

4. Financing for child care facilities construction projects
authorized pursuant to this subdivision, shall only be made upon a
determination by the corporation, in consultation with the department of
economic development, and the department of social services that such a
center will increase supply and access to day care services. Such
revolving loans, loan guarantees and grants shall only be made for child
care centers where there is an insufficient supply of child day care.
Such centers shall demonstrate the potential to obtain, from the local
department of social services and other appropriate governmental
agencies, all necessary approvals, licenses, and other supports required
to operate the center.

5. In addition to the department of social services, the corporation
shall work closely with the job development authority, the department of
economic development, child care resource and referral programs, local
development corporations, neighborhood preservation companies, rural
preservation companies, and other sources offering assistance for child
care in the state in order to assure coordination of services.