(1) Grants will be limited to a maximum of $5,000 for each unit of affordable housing to be contructed or rehabilitated in conjunction with the infrastructure improvements relating thereto. Grant funds provided under the program may be used only to pay for eligible costs as defined herein. The agency shall determine the number of units in any project which are to be considered affordable housing units for the purpose of calculating the grant amount. In so doing the agency may rely on the definition of affordable housing unit used in the affordable housing program also providing funds for the affordable housing projects in conjunction with the IDDP.

(2) Not less than 45 percent of the total amount appropriated shall be made available for projects located in cities, towns or villages having a population of less than 20,000 persons; not less than 30 percent in localities having a population of 20,000 to 30,000 persons, with the remaining amount(s) available (not to exceed 25 percent of the total amount) in places with a population of more than 30,000 persons. Population of a city, town, or village shall be determined by reference to the 1980 United States Census of Population unless alternative methods of calculation are approved by the agency.

(1) An application shall have been made to a Federal, State or local entity to receive funds for the construction or rehabilitation of an affordable housing project which shall be the same project for which IDDP funds are applied. Such applications for an affordable housing project may include, but are not limited to, applications to the Farmer's Home Administration, the United States Department of Housing and Urban Development, the New York State Housing Finance Agency, the New York State Affordable Housing Corporation, the State of New York Mortgage Agency, the New York State Housing Trust Fund Corporation, the New York State Division of Housing and Community Renewal, the New York State Department of Social Services, or any local governing body. The funds to be applied for may be, but are not limited to, mortgage loan financing, Federal community development block grants, urban development action grants, section 8 assistance payments, rental rehabilitation grants, housing development grants, homeless housing assistance program funds, local subsidies in the form of cash grants and the like. Mortgage insurance does not qualify as funds for purposes of this Part.

(2) The application to receive funds for the affordable housing project shall be an application submitted by the eligible applicant. For purposes of this Part, the agency may, as it considers appropriate, deem an application to receive funds for an affordable housing project to have been submitted by an otherwise eligible applicant if the eligible applicant has endorsed the application by its execution and transmittal of a document or documents acceptable to the agency. In order to deem such application to have been submitted by the eligible applicant the agency may, whenever it considers it appropriate, require that the eligible applicant have an interest in the project such as a joint venture arrangement, partial ownership or partnership interest therein. Such application shall be deemed to have been made by an otherwise eligible applicant if it is the successor in interest in the application through an assignment thereof. In no event, however, shall an eligible applicant assign its application for IDDP funds (i) without the agency's consent or (ii) to anyone other than another eligible applicant. In the event that an application is made for an affordable housing project under a local government or community program, the criteria used by the local government or community to determine affordability shall be defined and must be acceptable by the agency.

(3) Funds for infrastructure improvements awarded under the program must reduce the cost of the new construction or rehabilitation of affordable housing projects below that cost otherwise attainable and such reduced cost must correspondingly reduce the cost of housing to the occupants of such housing.

(4) The funds made available under the program must be used to increase locally funded operating or capital expenditures instead of substituting for funds which the unit of local government would otherwise have allocated to provide infrastructure improvements through its normal budgetary process in the absence of the IDDP.

(5) The affordable housing project must not result in the permanent displacement of low- or moderate-income residents on the site of the infrastructure improvements except pursuant to a plan approved by the agency which provides for alternative housing which is affordable to the relocated household(s). Any temporary relocation of residents must also be carried out in accordance with a plan which will be subject to the approval of the agency and which provides for relocation within a reasonable distance from the project site and for a reasonable period of time.

(6) The eligible applicant must agree to comply with the agency's affirmative action and equal opportunity requirements established by statute.

(7) The eligible applicant must agree to comply with the requirements of SEQRA and SHPA.