Section 4 - Contracts for single room housing projects(a) The corporation may enter into contracts with corporations incorporated under the not-for-profit corporation law for the carrying out by such corporations of a single room housing project.(b) Prior to entering into a contract pursuant to this section the corporation shall have made a finding that the corporation which proposes to contract with the corporation is a bona fide organization which shall have demonstrated by its past and current activities that it has the ability to preserve, repair, maintain, renovate, rehabilitate, manage or operate single room housing accommodations and that the project is to be substantially occupied by persons of lower income.(c) Each contract entered into pursuant to this section shall provide for payment to the corporation for single room housing project activities to be carried out by it. The full amount of the contract, or any appropriate portion thereof, as determined by the corporation, shall be available for payment at any time on or after the effective date of the contract.(d) No more than fifty percent of the total amount originally appropriated pursuant to this act in any fiscal year shall be allocated to projects located within any single municipality.N.Y. Special Needs Housing Act § 4