1. Notwithstanding any provision of this article to the contrary, the commissioner
may for a period of one year from the effective date of this act approve a loan and
encumbrance in excess of the actual project cost of a state-aided project comprising
more than five thousand rental units, provided that: (a) the rents paid by the tenants
may not be increased to pay for any consequent increase in indebtedness that is not
attributable to project cost; (b) the company enters into an agreement to continue
to remain subject to the provisions of this article for a period of no less than an
additional thirty years from issuance of the loan and encumbrance; and (c) the greater
of twenty-five percent of the amount of such loan which exceeds such actual project
cost or forty million dollars of the proceeds of such loan must be dedicated to capital
improvements to existing structures and facilities.
2. Any company that enters into a loan pursuant to subdivision one of this section
shall create a plan within one year of the approval of the loan. The plan shall include details of all capital improvements that will occur as a
result of the loan. Such company shall obligate the funds dedicated to the capital improvements within
three years of the approval of the loan. Such company shall submit a copy of the plan within one year of the approval of
the loan and within three years of the approval of the loan, a report that details
the use of the loan funds to the governor, the commissioner of the division of housing
and community renewal, the temporary president of the senate, the speaker of the assembly,
the minority leader of the senate, the minority leader of the assembly, the chair
of the senate finance committee, the chair of the assembly ways and means committee,
the chair of the senate housing, construction, and community development committee,
and the chair of the assembly housing committee.
3. Such company shall participate in bimonthly meetings with elected officials and
the members of the project's residents' association or other tenant organization that
represents the majority of tenants in the project in order to hear any advice or comments
on the implementation of the plan. The meetings shall occur on a regular basis until all of the money set-aside for
capital improvements in subdivision one of this section has been spent.
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