§ 922. Urban initiative contracts. 1. Within the limit of funds available in the urban initiative program, the corporation is hereby authorized to enter into contracts with eligible applicants to provide state financial assistance for the project costs attributable to urban initiatives projects within neighborhoods. The state financial assistance shall be either in the form of payments, grants or loans, as the corporation shall determine. No more than fifty percent of the total amount appropriated pursuant to this article in any fiscal year shall be allocated to urban initiatives projects located within any single municipality.

2. The total state payment pursuant to any one contract shall not exceed two hundred thousand dollars and the contract shall provide for completion of the project within a reasonable period, as specified therein which shall not in any event exceed two years from its commencement. Up to ten percent of the project cost may be used for the eligible applicant's operating expenses including expenses related to organization operating support and administration of the contract.

3. The corporation shall require that, in order to receive funds pursuant to this article, the eligible applicant must submit an operating plan which shall include but not be limited to project feasibility, leveraging, impact on the community, group capability, and affirmative action and minority business participation. Such plan shall be submitted pursuant to a request for proposals issued by the corporation.

4. The eligible applicant which proposes to contract with the corporation shall be a bona fide organization or a successor organization with appropriate experience in community revitalization activities and shall demonstrate by its immediate past and current activities that it has, or shows that it can acquire, the capability and expertise to successfully complete the proposed project. The eligible applicant's officers, directors and members must be representative of the residents and other legitimate interests of the neighborhood.

5. Occupant selection procedures shall be established which provide that any lawful occupants who live in a project prior to rehabilitation shall not be displaced as a result of such rehabilitation, other than temporarily, in which case suitable relocation arrangements shall be provided, and that any additional occupants who move into a project are persons of low income. Preference in selection of such additional occupants (i) shall be given to persons or families with the lowest incomes possible, given the income requirements of the project; and (ii) shall also be given to persons or families whose current housing fails to meet basic standards of health and safety and who have little prospect of improving the condition of their housing except by residing in a project receiving payments, grants or loans under this article.

6. For any application for such a contract under this article, the corporation shall provide the applicant 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 corporation of all documents in satisfaction of the list, the corporation shall notify the applicant of the sufficiency or insufficiency of the documents. After satisfaction by the applicant of all conditions required by the corporation prior to entering into a contract the corporation shall enter into the contract within forty-five working days of satisfaction of such conditions.