(a) The commissioner may contract to make a State grant to a city within the budgetary appropriation therefor for payment to the city to reimburse up to a limit of 40 percent of the authorized charter expenditures or $25,000, whichever is less.

(b) Such records as shall be prescribed by the commissioner shall be maintained by the consultant and the city contracting for the project which records shall be kept on file for a period of three years after the completion of the project.