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§ 1170. Statement of legislative findings and purposes. The legislature hereby finds and declares that it is in the best interest of the state to authorize participation in programs created by the federal government pursuant to the national affordable housing act of 1990 and that it is the purpose of this article to coordinate activities aided under existing municipal, state and federal housing programs with other public and private actions in order to address the lack of adequate affordable housing in New York state.

§ 1171. Definitions. As used in this article: 1. "NAHA" shall mean the national affordable housing act, 42 U.S.C. 12701-12839.

2. "HOME program" shall mean subtitle A of title II of the national affordable housing act. mean the division of housing and community

3. "Division" shall

renewal.

4. "HUD" shall mean the federal department of housing and urban development. 5. "HOME regulations" shall mean HUD regulations created pursuant to the national affordable housing act of 1990 as amended.

6. "Applicant" shall mean any entity eligible to receive grants or loans under the HOME program.

7. "CHAS" shall mean the New York state comprehensive housing affordability strategy prepared in accordance with the requirements of the national affordable housing act of 1990.

8. "Participating jurisdiction" shall mean a unit of general local government designated by HUD to receive HOME funds through a formula

allocation.

9. "Non-participating jurisdiction" shall mean a unit of general local government which does not receive federal funds directly under the HOME

program.

10. "Eligible activities" shall have the same meaning as set forth in the HOME regulations.

§ 1172. The New York state HOME program. 1. Agreements. (a) Within the limit of HOME program funds, the division is hereby authorized to take administrative actions necessary to comply with HUD requirements and consistent with the provisions of this article in order to enter into agreements with applicants to provide grants and loans which such applicants shall use to finance projects that qualify under HOME regulations as eligible activities.

(b) The division shall not enter into an agreement under this article except with an eligible applicant which has submitted an application pursuant to a notification of fund availability and a request for proposals issued by the division. (c) The division and the applicant shall execute a grant or loan agreement which shall set forth the terms and conditions under which the grant or loan will be provided.

2. Notice of fund availability. The division shall issue its initial notice of fund availability and request for proposals within forty-five working days of the effective date of this article. No more than sixty percent of the HOME funds shall be available for reservation in such initial funding cycle. No later than sixteen months from the effective date of this article, the division shall issue a second request for proposals and make available those funds not committed during the initial request for proposals, including funds recaptured by or otherwise made available to the division by the federal government under the HOME program. Additional requests for proposals shall be issued at the discretion of the division but in any event no later than sixty days following the availability of additional federal funds.

3. Application procedures. (a) Documentation determining eligibility. The division shall provide each applicant with a list of documents that must be included in the application before the application can be entered into the competitive process for the awarding of grants and loans. The division shall also include with such list of documents a detailed

description of the review and selection procedures criteria utilized by the division pursuant to paragraph (b) of this subdivision. Within ten working days after the last day for receipt of applications, the division shall notify applicants if and how the application is incomplete and provide ten working days to complete such application. Documentation requirements shall include but not necessarily be limited to: (1) a feasibility study and market analysis of the proposal; (2) a proposed project financing and leveraging plan; (3) a schedule, with specific dates, of the expected project commencement date, expected completion date, and if appropriate, the anticipated schedule for closing and occupancy of units; (4) a description of the applicant's qualifications and previous experience; (5) a statement by the applicant as to the status of all public approvals and clearances required to undertake the project; (6) a plan as to how applicants will ensure compliance with all federally mandated regulations throughout the regulatory term; (7) statement describing the amount of and source of any matching contributions required for the proposed project and an opinion of counsel that funds proposed to be used as matching contributions are legally available to be used as proposed; and (8) a statement of need and how the project will further goals delineated within the state CHAS.

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(b) The review and selection procedure. Within forty-five working days of the effective date of this article, the division shall develop, sistent with federal law and regulations, a review procedure and selection criteria for evaluating applications, which shall include design, underwriting, legal and program requirements. Such procedure and selection criteria shall be provided to applicants with the application. Such selection criteria shall include but not be limited to the following factors: (1) the extent to which the proposal will serve a demonstrated need; (2) the dexte to which the werages private lovestant or other funding sources; (3) the likelihood of successful project pletion, including consideration of the submitted market analysis, the prior experience of the applicant, and the viability of the submitted completion schedule; and (4) type of assistance requested.

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4. Selection for award and notification requirements. The division shall base the awarding of grants and loans subject to the availability of funds upon the competitive review and selection procedure described in paragraph (b) of subdivision three of this section. Within eighty working days following the last day for receipt of applications in response to a request for proposals, the division shall notify all applicants of its funding decisions.

(a) The division will notify, in writing, all applicants who were not selected for funding of the reasons why the proposal was not funded, including the design, underwriting, legal or program deficiencies, deficiencies of any documents and/or the basis upon which the application was determined to be ineligible for funding. Until the issuance of a subsequent notice of fund availability, applicants not selected for funding due solely to the non-availability of federal funds under the notice of fund availability shall remain eligible for selection for funding under such notice of fund availability in the event that unused federal funds become available for reallocation.

(b) The division shall provide each applicant selected for funding 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 division of all documents in satisfaction of the list, the division shall notify the applicant of the sufficiency or insufficiency of the documents. After satisfaction by the applicant of all conditions required by the division prior to entering into a contract, the division shall enter into the contract within forty-five working days of satisfaction of such conditions. Applications which are not selected for funding must be resubmitted by the applicant for consideration under subsequent notices of funding availability.

5. Distribution of funds. Eighty percent of the funds available hereunder after deducting the set asides mandated by NAHA for community housing development organizations, shall be reserved for projects located within non-participating jurisdictions, provided however, that such reservation may be less than eighty percent where, following a notice of funding availability and request for proposals, the division has made a written finding that (i) applications, except those not selected for funding pursuant to subdivision four of this section, for projects in non-participating jurisdictions will not totally utilize the remainEXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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ing available reserved funds and (ii) such funds are subject ture by HUD pursuant to federal HOME regulations within one hundred eighty days. 6. Monitoring and review. The division shall provide for the review, at periodic intervals not less than annually, of the performance of applicants receiving grants or loans pursuant to this article. Such review shall, among other things, be for the purposes of ascertaining the conformity to agreement provisions, and adherence to federal HOME regulations. Agreements entered into pursuant to this article may be terminated and funds may be withheld or recaptured by the division upon a finding of substantial nonperformance or breach by such applicant under its agreement or for failure to adhere to federal NAHA requirements. 7. Notwithstanding any contrary provision of law, on and after June thirtieth, nineteen hundred ninety-five, the division shall not issue notices of fund availability, accept applications or enter into any new agreements pursuant to the provisions of this section.

§ 1173. Gap communities. Notwithstanding the provisions of section eleven hundred seventy-two of this article the division may award funds to one or more localities, whose allocations of HOME program funds from the federal government are insufficient for such to become a participating jurisdiction, as are necessary to qualify the locality as a participating jurisdiction as set forth in 92.102 of the HOME regulations. Provided, however, the provisions of this section shall expire and be deemed repealed having no further force and effect on and after September thirtieth, nineteen hundred ninety-two. § 1174. General and administrative provisions. 1. The division shall issue and promulgate rules and regulations for the administration of this article. The rules and regulations shall include provisions concerning reporting, budgeting and recordkeeping requirements; provision for modification, termination, extension and renewal of agreements; and such other matters not inconsistent with the purposes and provisions of this article as the division shall deem necessary, proper or appropriate.

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2. The division may provide appropriate technical services and assistance to applicants to comply with the provisions of this article. 3. The division shall issue a report to the temporary president of the senate and the speaker of the assembly, the chairpersons of the senate and assembly housing committees and the chairpersons of the senate finance and assembly ways and means committees on or before January first, nineteen hundred ninety-three and annually thereafter with respect to funds committed, contracted disbursed pursuant to the national affordable housing act. This report shall include but not be limited to: a description of the programs/projects funded pursuant to this program; the amount of funds committed, contracted or disbursed during the previous federal fiscal year; the amount of such funds derived from bond proceeds; the number of new affordable units constructed or rehabilitated, including both rental and home ownership; the number of units created which were constructed or rehabilitated by combining NAHA funds with other state-assisted housing programs and an account ing of the amount of such state-assisted housing program funds expended; and any access to additional HOME funds made available through any federal fund reallocation. In addition such report shall indicate the status of the rules and regulations as required in subdivision one of this section, until such rules and regulations have been promulgated. 4. All state agencies, offices, departments, boards, divisions, commissions, public authorities and public benefit corporations may render such services to the division within their respective functions as may be requested by the division in order to administer the provisions of this article.

§ 7. In addition to federal HOME program funds, fifty million dollars shall be made available from the funds appropriated to the division of housing and community renewal from the housing program fund for the purpose of maximizing the use of federal funds made available pursuant to the Cranston-Gonzales National Affordable Housing Act (P. L. 101-625) pursuant to chapter 54 of the laws of 1991, (08029107) as amended, and shall be used for the following purposes:

Twelve million dollars of the appropriation shall be made available for transfer to the housing trust fund account created pursuant to section 59-a of the private housing finance law, the affordable housing development account created pursuant to section 59-b of the private housing finance law, the turnkey/enhanced housing account created pursuant to section 59-d of the private housing finance law, the infrastructure development fund created pursuant to section 59-e of the private housing finance law, the permanent housing for homeless families

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fund created pursuant to section 59-g of the private housing finance law, and the homeless housing and assistance account created pursuant to section 59-i of the private housing finance law. Such funds shall be separately accounted for within such accounts and shall be used to qualified projects which require additional funding to supplement the federal home program funds to the extent of the difference between the maximum percentage federal dollar contribution and the full per-unit maximum referenced in 24 CFR section 92.250. The division of the budget shall provide quarterly reports to the chairpersons of the senate finance and the assembly ways and means committees which shall detail disbursements from and reimbursements to the housing trust fund account created pursuant to section 59-a of the private housing finance law, the affordable housing development account created pursuant to section 59-b of the private housing finance law, the turnkey/enhanced housing account created pursuant to section 59-d of the private housing finance law, the infrastructure development fund created pursuant to section 59-e of the private housing finance law, the permanent housing for homeless families fund created pursuant to section 59-g of the private housing finance law, and the homeless housing and assistance account created pursuant to section 59-i of the private housing finance law pursuant to this section. Such twelve million dollars in funds shall be disbursed as follows: no more than three million dollars shall be disbursed to projects located within cities having a population of one million or more people; no more than six million dollars shall be disbursed to projects located in non-participating jurisdictions; and no more than three million dollars shall be disbursed to projects located in participating jurisdictions other than cities with a population of one million or more people.

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Up to thirty-eight million dollars shall be made available by the state solely for the purpose of providing the minimum state match, required by federal law, in respect of federal funds made available to the state as a participating jurisdiction under the HOME program.

§ 8. This act shall take effect immediately, provided, that the provisions of section one of this act shall be deemed to have been effective as of April 10, 1992, that section four of this act shall take effect upon the same date and in the same manner as section nine of a chapter of the laws of 1992 amending the state operations budget as proposed in legislative bill number S. 9002-A takes effect and section five of this act shall be deemed to have been in full force and effect on and after July 1, 1992, provided however that section 1173 of the private housing finance law, as added by section six of this_act, shall be deemed to have been in full force and effect on and after February 1, 1992.

CHAPTER 795

AN ACT to amend the public health law, in relation to funding of the child health insurance program and in relation to the functions of health systems agencies and in relation to home care provider assessments and patient managed home care programs and to repeal certain provisions of the public health law, relating thereto; to amend the social services law, in relation to patient managed home care programs; to amend the education law, in relation to domestic care of the sick and providing for the repeal of certain provisions upon the expiration thereof and to amend chapter 41 of the laws of 1992 amending the public health law relating to containing health care provider reimbursement rates, in relation to home health care services

Became a law August 7, 1992, with the approval of the Governor. Passed on message of necessity pursuant to Article III, section 14 of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (b-1) of subdivision 19 of section 2807-c of the public health law, as amended by chapter 922 of the laws of 1990, is amended to read as follows:

EXPLANATION-Matter in italics is new; matter in brackets [] is old law

(b-1) An amount equal to twenty million dollars shall annually be reserved and accumulated from year to year by the commissioner for distributions to programs to provide health care coverage for uninsured or underinsured children. [On an annual basis, any funds reserved but not distributed] Such accumulated funds shall not be used for any other purpose other than those authorized in section twenty-five hundred ten and twenty-five hundred eleven of this chapter. If on March first, nineteen hundred ninety-four, any funds accumulated during the period January first nineteen hundred ninety-one through December thirty-first, nineteen hundred ninety-three are unused or uncommitted for such distributions, such unused or uncommitted funds shall be immediately transferred by the commissioner to bad debt and charity care regional pools established pursuant to subdivision sixteen of this section to provide additional funds for distribution from such bad debt and charity care regional pools in accordance with subdivision seventeen of this section. funds accumulated for distribution for purposes of subparagraph (1) of paragraph (f) of subdivision 19 of section 2807-c of the public health law are unused or uncommitted for such purposes, an amount up to eight million dollars from such unused or uncommitted funds through 1992 shåll be reallocated for use in accordance with paragraph (b-1) of subdivision 19 of section 2807-c of the public health law; provided, however, that solely for purposes of the calculation pursuant to section 11 of chapter 703 of the laws of 1988, as amended, such reallocated funds shall be deemed distributed in accordance with subparagraph (i) of paragraph (f) of subdivision 19 of section 2807-c of the public health law. However, should the reallocation result in insufficient moneys for 1992 to meet the obligations of the catastrophic health care expenses program and the regional pilot projects programs for 1992 within the amounts made available by chapter 2 of the laws of 1988 and pursuant to chapter 703 of the laws of 1988, the director of the division of budget is hereby authorized to and within thirty days shall allocate from the general fund such funds as are necessary to meet the obligations, but not to exceed the amount reallocated, to be distributed in accordance with this act. In no event shall limits to enrollment or participation be imposed on either program as a result of this reallocation.

reg 2. Notwithstanding any provision of law to the contrary, if any

§ 3. Subdivision 17 of section 2807-c of the public health law is amended by adding a new paragraph (e) to read as follows:

(e) Notwithstanding any inconsistent provision of this section, in the event funds available pursuant to paragraph (b-1) of subdivision nineteen of this section for programs to provide health care coverage for uninsured or underinsured children are inadequate to provide coverage to all eligible children for whom application for coverage is made in a rate period, such additional amounts not to exceed ten million dollars as shall be necessary to provide such coverage shall be reserved by the commissioner from the amount to be available in bad debt and charity care regional pools for such rate period for additional distributions to such programs.

§ 3-a. Those additional funds reserved pursuant to section three of this act shall only be made available upon a finding by the commissioner that funds otherwise made available pursuant to sections one and two of this act are insufficient to meet the obligations of programs providing health care coverage for uninsured or underinsured children.

§ 4. Those additional funds reserved or reallocated pursuant to sections one, two, and three of this act shall first be available to those child health insurance plans with waiting lists of children seeking health care coverage.

§ 5. Subdivision (e) of section 2904 of the public health law, as amended by chapter 433 of the laws of 1980, is amended to read follows:

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(e) The council, in cooperation with the various health systems agencies shall consider and advise in accordance with the provisions of this chapter relative to applications for the incorporation or establishment of a new institution and the provisions of this chapter relative to plications for the construction of a hospital as defined in article twenty-eight of this chapter. The state council shall consult with or otherwise obtain the advice of the health systems agency of the area in which the institution is located or the health systems agency of areas that might be substantially affected by the application. At the time members of the council are notified that an application is scheduled for consideration, the applicant and the health systems agency shall be so notified in writing. Before taking any action contrary to the advice

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