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Contracts with neighborhood preservation companies
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 16
§ 903. Contracts with neighborhood preservation companies. 1. The
commissioner may enter into contracts with neighborhood preservation
companies for the performance of neighborhood preservation activities.
Such contracts shall be entered into, however, only after appropriate
findings by the commissioner and shall be subject to the limitations
hereinafter set forth.

2. Prior to entering into a contract with a neighborhood preservation
company, the commissioner shall have made a finding that the
neighborhood in which the activities are proposed to be conducted
contains a significant amount of deteriorating or substandard housing
which is not being adequately repaired, renovated, upgraded, modernized
or rehabilitated under existing programs so as to provide sound housing
at costs which the residents of such neighborhoods can afford; that the
neighborhood preservation company which proposes to contract with the
commissioner is a bona fide organization which shall have been in
existence either as a corporation or as an unincorporated, organized
group and performing significant neighborhood preservation activities
for at least one full year prior to entering into any contract with the
commissioner and which shall have demonstrated by its immediate past and
current activities that it has the ability to preserve, repair,
maintain, renovate, rehabilitate, manage or operate housing
accommodations or to engage in other neighborhood preservation
activities in such neighborhood; that the neighborhood preservation
activities which are to be performed pursuant to the proposed contract
are needed by the neighborhood; and that the neighborhood preservation
company possesses or will acquire or gain access to the requisite staff,
office facilities within such neighborhood, equipment and expertise to
enable it to perform the activities which it proposes to undertake
pursuant to such contract; provided, however, that merged companies'
office facilities may be located outside such neighborhood if they are
located in a municipality wholly contained within the merged companies'
neighborhood, and provided further, however, that it shall not be a bar
to the commissioner's contracting with a neighborhood preservation
company that one or more organizations, whether pursuant to contract
with the commissioner or not, are conducting neighborhood preservation
activities wholly or partially within the same neighborhood.

3. In determining to enter into a contract with a neighborhood
preservation company pursuant to this article, the commissioner shall
investigate, to the extent which he shall deem necessary or appropriate,
and determine;

(a) that the geographic boundaries proposed by the applicant for such
a contract define a recognized or established neighborhood or area
within the municipality;

(b) that the demographic and other relevant data pertaining to such
neighborhood indicate that the neighborhood has sustained physical
deterioration, decay, neglect or disinvestment, that a substantial
proportion of the residential population that the neighborhood
preservation company proposes to assist through its activities is of low
income and that such neighborhood is in need of active intervention to
effect its preservation, stabilization or improvement;

(c) that the activities proposed to be conducted by the neighborhood
preservation company are reasonably calculated to have a positive effect
on the preservation, stabilization or improvement of the neighborhood;

(d) that the neighborhood preservation company's officers, directors
and members are fairly representative of the residents and other
legitimate interests of the neighborhood, that they will carry out such
a contract in a responsible manner and that at least thirty-three
percent of the directors of the neighborhood preservation company are
residents of the neighborhood;

(f) that the fees received or proposed to be received by the
neighborhood preservation company from the management of housing
accommodations are fair and reasonable;

(g) that the plan submitted by the neighborhood preservation company
demonstrates that such company will, to the extent possible, give
priority when hiring new employees to residents of the neighborhood who
are either unemployed or not fully employed;

(h) that the neighborhood preservation company has a plan to
facilitate, to the maximum extent feasible, the disposition of any
buildings containing housing accommodations owned by the company to
individual occupants thereof or to cooperative groups whose members
shall be occupants thereof; and

(i) that the interests of occupants of any buildings containing
housing accommodations owned by the neighborhood preservation company
are adequately represented.

4. Contracts entered into hereunder with neighborhood preservation
companies shall be limited in duration to periods of one year, but may
thereafter be renewed, extended or succeeded by new contracts from year
to year in the discretion of the commissioner; they shall define with
particularity the neighborhood or portion thereof within which the
neighborhood preservation activities shall be performed; they shall
specify the nature of the neighborhood preservation activities which
shall be performed including the approximate number of buildings,
residential dwelling units and local retail and service establishments
which shall be affected; they shall locate and describe, with as much
particularity as is reasonably possible, the buildings with respect to
which such activities shall be performed during the contract term; and
they shall specify the number of persons, salaries or rates of
compensation and a description of duties of those who shall be engaged
by the neighborhood preservation company to perform the activities
embraced by the contract together with a schedule of other anticipated

5. Prior to renewing or extending a contract or entering a succeeding
contract with a neighborhood preservation company the division shall
determine that:

(a) the company shall have substantially completed the neighborhood
preservation activities specified in the contract to be renewed,
extended, or succeeded;

(b) the company shall have received the sums, services, and funds
specified in subdivision four of section nine hundred four of this
article; and

(c) the activities carried out by the company pursuant to its contract
shall have had a significant impact on the community's needs as
specified in the contract.

6. Prior to terminating, not renewing or not extending a contract the
division shall:

(a) determine that the company is in violation of the terms and
conditions of the contract or that funds provided pursuant to the
contract are being expended in a manner not consistent with the terms of
the contract or the provisions of this article; or

(b) determine that necessary and appropriate technical assistance has
been provided without significant improvement in the activities of the
company; and

(c) provide the company with written notice, at least forty-five days
in advance, of its intent to terminate, not renew or not extend the
contract and provide the company with an opportunity to appear and be
heard before the division with respect to the reasons for such proposed
termination, non-renewal or non-extension. At the same time that a
company is notified of the division's intent to terminate, not renew or
not extend the contract, the division shall likewise inform the senate
and assembly members who represent areas within such company's
geographic boundaries.

7. The division shall establish, for renewal of contracts, a procedure
which provides the company with at least forty-five days notice of the
company's obligations and rights in that process, informs the company of
the amount of the renewal contract, and facilitates the timely execution
of the contract and disbursement of funds.

8. The division may temporarily withhold payments and may elect not to
renew or extend a contract or enter a succeeding contract with any
neighborhood preservation company if the company is not in compliance
with its contract, has without good cause failed to submit documentation
required under its contract or requested by the division to make the
determinations required under subdivision five of this section or has
not satisfied any other conditions consistent with this article for
renewing or extending a contract or entering a succeeding contract.