Section 16-g - Child care facilities construction program1.Definitions. For the purposes of this section:(a) "Child care facilities construction project" shall mean a project for the establishment, expansion, and development of licensed not-for-profit child day care centers which are intended to serve the needs of low-income working families or economically distressed areas or highly distressed communities. The project shall be used as a licensed child day care center for a period of at least ten years with at least one-quarter of the available day care placements offered to the local department of social services or set aside for persons eligible for low-income day care subsidies.(b) "Economically distressed areas" shall have the same meaning as provided for in section 16-d of this act.(c) "Highly distressed" shall have the same meaning as provided for in section 16-d of this act.(d) "Not-for-profit corporation" shall mean a corporation organized under the provisions of the not-for-profit corporation law.2.The corporation shall, from any appropriations made available for this purpose, establish a child care facilities construction program which shall offer the following assistance: (a) Child care construction grants pursuant to paragraphs (a) and (b) of subdivision 3 of this section.(b) Child care construction revolving loans and loan guarantees pursuant to paragraphs (c) and (d) of subdivision 3 of this section.3.To the extent that monies are appropriated for the child care facilities construction program, the corporation shall provide financing for child care facilities construction projects for the establishment, expansion and development of not-for-profit child day care centers which are intended to serve the needs of low-income working families or economically distressed areas or highly distressed communities. The corporation, in consultation with the department of economic development, shall develop a joint request for applications with the department of social services soliciting potential applicants seeking assistance for the development of licensed, not-for-profit child day care centers. In determining award recipients, the corporation shall consider, among other factors, the department of social services' grouped rankings of the applications. Such financing shall consist of grants, revolving loans and loan guarantees for the establishment, expansion, and development of licensed, not-for-profit child day care centers in accordance with section 410-ccc of the social services law and this section.(a) Grants shall be used for general project development costs, including, but not limited to:(i) the acquisition, design, construction, improvement or renovation of the site; and(ii) the purchase of necessary equipment.(b) For the purposes of this subdivision grants shall not exceed eighty percent of the total project cost in highly distressed communities; shall not exceed sixty-five percent of the total project cost in economically distressed areas; and shall not exceed fifty percent of the total project cost in non-economically distressed areas.(c) Child care construction revolving loan and loan guarantees. The corporation shall provide revolving loans and loan guarantees for the establishment of licensed, not-for-profit child day care centers. Such revolving loans and loan guarantees shall be for construction costs, including, but not limited to the design, construction, improvement or renovation of a child day care center, and may include interim financing.(d) Child care construction revolving loan and loan guarantee fund. For the purposes of this subdivision, the corporation shall establish a child care construction revolving loan and loan guarantee fund account. The corporation shall determine the terms and interest rates of such loans, except that no loan shall exceed eighty percent of the total project cost in highly distressed communities; sixty-five percent of the total project cost in economically distressed areas; and fifty percent of the total project cost in non-economically distressed areas. In instances where an otherwise qualified applicant lacks equity in a project, equity participation may include any commitment for grants. Payments consisting of the repayment of the principal amount of the loan and interest shall be deposited by the corporation into the child care construction revolving loan fund account from which the loan was made.4.Financing for child care facilities construction projects authorized pursuant to this subdivision, shall only be made upon a determination by the corporation, in consultation with the department of economic development, and the department of social services that such a center will increase supply and access to day care services. Such revolving loans, loan guarantees and grants shall only be made for child care centers where there is an insufficient supply of child day care. Such centers shall demonstrate the potential to obtain, from the local department of social services and other appropriate governmental agencies, all necessary approvals, licenses, and other supports required to operate the center.5.In addition to the department of social services, the corporation shall work closely with the job development authority, the department of economic development, child care resource and referral programs, local development corporations, neighborhood preservation companies, rural preservation companies, and other sources offering assistance for child care in the state in order to assure coordination of services.N.Y. Urban Development Corporation Act § 16-g