§ 1112. Affordable home ownership development contracts. 1. Within\nthe limit of funds available in the affordable housing development\naccount, the corporation is hereby authorized to enter into contracts\nwith eligible applicants to provide grants which such applicants shall\nuse to finance affordable home ownership development programs subject to\nthe terms and conditions of this article. Any grants received by a\nmunicipality hereunder shall not be deemed to be municipal funds.\nGrantees shall utilize funds provided pursuant to this article solely as\npayments, grants and loans to owners to reduce the costs of new\nconstruction, rehabilitation or home improvement or the cost of\nacquisition, but only where such acquisition is part of an affordable\nhome ownership development program or project to construct or\nrehabilitate homes, or as otherwise authorized by law. Such financial\nassistance may be in the form of loans, participation in loans including\nbut not limited to participation in loans originated or financed by\nlending institutions as defined in section forty-two of this chapter,\nprivate or public employee pension funds or the state of New York\nmortgage agency, or grants, on such terms and conditions as the grantee\nwith the approval of the corporation shall determine, provided that no\nsuch payments, grants and loans shall exceed the lesser of (i) sixty\npercent of the project cost for projects involving acquisition or one\nhundred percent of rehabilitation programs without an acquisition\ncomponent or (ii) the following per dwelling unit limitations (A) fifty\nthousand dollars for projects except as provided in subparagraph (B) of\nthis paragraph or (B) up to seventy-five thousand dollars for a high\ncost project or a project which will receive a loan from the federal\nfarmers home administration. Up to ten percent of the program or project\ncost may be used for grantee operating expenses including expenses\nrelated to the organization operating support and administration of the\ncontract. Among the criteria the corporation shall consider in\ndetermining whether a project is a high cost project are: average cost\nof construction in the area, location of the project, and the impact of\nthe additional funding on the affordability of the project for the\noccupants of such project. No more than fifty percent of the total\namount appropriated pursuant to this article in any fiscal year shall be\nallocated to homes located within any single municipality.\n 2. The corporation shall not enter into a contract under this article\nexcept with an eligible applicant which has submitted an application\npursuant to a request for proposals issued by the corporation which\napplication contains a plan acceptable to the corporation which provides\nthat:\n (a) The proposed project or program will make home ownership,\nrehabilitation or home improvement affordable to persons who cannot\nafford to own, rehabilitate or improve homes by relying upon the\nordinary unaided operation of private enterprise.\n (b) There shall be criteria, satisfactory to the corporation, which\nprovide for maximum income limitations or a system of income targeting\ndesigned to ensure that home buyers who benefit from financial\nassistance provided pursuant to this article would be unable to acquire,\nrehabilitate or improve homes by relying upon the ordinary unaided\noperation of private enterprise.\n (c) The payments, grants and loans provided by grantees pursuant to\nthis article will be supplemented by private or other public investment\nand the payments, grants and loans provided by the grantee are the least\nnecessary to make home ownership, rehabilitation or home improvement\naffordable to the income group to be served by the proposed project or\nprogram.\n (d) The proposed project or projects, if not built or rehabilitated by\na not-for-profit corporation, will be built or rehabilitated by a\nprivate developer/builder who has agreed to limit
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