(a) Reimbursement for all expenditures made by a social services district related to the provision of temporary residential care, room, board, supervision, information and referral, or social rehabilitation services for persons in need of temporary accommodations, supervision and services, may be subject to withholding or denial when any shelter for families located within that social services district fails to comply with the requirements of State or local laws, regulations, and codes, including the applicable provisions of this Part, or fails to operate in accordance with the operational plan for the facility approved by the office.

The office must notify the social services district of all violations of the provisions of this Part prior to withholding or denying reimbursement.

The office may withhold up to 100 percent of the reimbursement for expenditures made by a social services district related to the provision of temporary residential care, room, board, supervision, information and referral, or social rehabilitation services for persons in need of temporary accommodations, supervision and services, if violations at any shelter for families located within that social services district have not been corrected within 30 days from the date the social services district receives notice of the violations or within any lesser period ordered by the office pursuant to section 900.22(f) of this Part, or an acceptable plan for correction is not submitted pursuant to section 900.22(e) of this Part. Reimbursement may be withheld beginning the 31st day after the social services district is provided with notice of the violations, or the day following the expiration of any lesser period ordered by the office pursuant to section 900.22(f) of this Part, and continuing until the social services district notifies the office in writing of its compliance and the office notifies the social services district in writing it has verified that the facility is in compliance.

If reimbursement is withheld pursuant to this section, the social services district shall immediately submit an acceptable plan for correction, or revise the plan for correction previously submitted by the social services district for office approval, to set forth a date by which all violations described in the notice of violation will be corrected. The new or revised corrective action plan shall be subject to office approval. If the violations identified in the notice of violation continue to remain uncorrected by the date set forth in the new or revised corrective action plan, any reimbursement previously withheld may be denied. The commissioner of the social services district shall be given written notice of the decision to deny reimbursement.

(e) The social services district shall have the right to judicial review of the decision to withhold or deny reimbursement in accordance with the provisions of article 78 of the Civil Practice Law and Rules.