The program recipient must use the program assistance, to finance the implementation of the project or the feasibility study approved by the department.

A feasibility study or project which receives program assistance must be completed within one year after the funding award date or loan closing. The department may extend this period on a case-by-case basis where the program recipient has demonstrated reasonable cause for the delay.

Within 45 days of completion of the project, the program recipient must provide the department with a certificate of completion, signed by the program recipient and the contractor, certifying that the project was completed in accordance with the descriptions and cost estimates provided to the department.

The program recipient shall promptly provide written notice to the department of any necessary changes in a project which differ from the program application submitted to the department, and no such changes in the scope of work shall occur unless approved in writing by the department.

The program recipient shall promptly provide written notice to the department of any change in the cost of a project which differs by either more than 10 percent or $20,000 from the selected contractor's cost estimate, or the program recipient schedules and selected estimate in the case of an in-house project, submitted to the department, and a justification therefor. No such change in project costs shall occur unless approved in writing by the department; provided, however, that under no circumstances will program assistance be available for an amount exceeding the cost of the project.

The program recipient must provide the department, or its designated agents, with reasonable access to the project site before, during, and after the construction phase of the project in order to monitor and inspect the work being undertaken with program assistance.

The program recipient performs all work in compliance with all applicable Federal, State, and local laws, rules and regulations. Prior to the commencement of work, the program recipient must obtain all permits, certificates and approvals which may be required in connection with the performance and completion of the work.

The program recipient must retain for a period of six years after the date of closing on the loan all cancelled checks, receipts and contracts used in connection with the work on the project, and must produce them at the request of the department for the purpose of verifying the cost of the project.

If the program recipient fails to comply with the requirements of this Part, the program recipient may be disqualified from participating in the program, program assistance may be rescinded, and the applicant may be required to reimburse the department for all or a portion of the program assistance which the department has advanced.

Immediate repayment of all program assistance, plus interest and a penalty equal to 50 percent of the principal amount of the program assistance, will be required if all or any portion of a building, fixtures, machinery or equipment funded through a project is transferred out of New York State, prior to the expiration of the useful life of the building, fixtures, machinery or equipment. The useful life shall be negotiated between the applicant and the department prior to execution of the program assistance agreement.