New York Laws
Article 15 - Urban Renewal
509 - Periodic Subsidies.

§ 509. Periodic subsidies. 1. The commissioner may, in the name of the
state, make or contract to make periodic subsidies to a municipality to
assist such municipality in carrying out one or more programs of urban
renewal, subject to the limitations contained in the first paragraph of
section seventy-three of the public housing law, in this section and in
any other law applicable thereto. Such subsidies shall be applied by the
municipality only for the purpose of paying the principal and interest
on the state loan for the urban renewal program or on loans from other
sources pursuant to subdivision three of this section.

2. The periodic subsidy for each program of urban renewal shall be
payable to the municipality on an annual basis over the period of the
state loan for the urban renewal program, commencing on the date
provided for in the loan contract made with the commissioner, in a total
amount determined by the commissioner but no greater than the sum due to
the state for principal and interest on the state loan for such program.
The amount of such payments need not be uniform and portions of the
periodic subsidy payable for any one year may be paid from time to time
as required.

3. Where all or any part of the sum which the commissioner has
contracted to lend to the municipality is borrowed by the municipality
from sources other than the state, the periodic subsidy contracted for
pursuant to subdivision one of this section may be used by the
municipality for the payment of such loans obtained from such sources
for the program to which such periodic subsidies relate, provided the
terms and conditions of such loans have been approved by the
commissioner. Such periodic subsidies shall also be payable to the
municipality on an annual basis over a fixed period of years not
exceeding the probable life of such program, in a total amount
determined by the commissioner but no greater than the sum due to such
lenders for principal and interest on such loan, commencing on the date
provided for in the loan contract made with the commissioner.
Notwithstanding any other provision of any general or special law, the
contract for such loan from sources other than the state shall provide
that upon any date when an installment of principal shall become due and
payable the municipality may anticipate any installment which would
otherwise become due and payable thereafter.

4. The faith of the state is pledged to the payment of all periodic
subsidies contracted for by the commissioner. Such periodic subsidies
shall be paid upon the audit and warrant of the state comptroller upon
vouchers approved by the commissioner.