3. In determining to enter into a contract with a neighborhood preservation company pursuant to this article, the commissioner shall investigate, to the extent which he shall deem necessary or appropriate, and determine;

1. (a) that the geographic boundaries proposed by the applicant for such a contract define a recognized or established neighborhood or area within the municipality;
2. (b) that the demographic and other relevant data pertaining to such neighborhood indicate that the neighborhood has sustained physical deterioration, decay, neglect or disinvestment, that a substantial proportion of the residential population that the neighborhood preservation company proposes to assist through its activities is of low income and that such neighborhood is in need of active intervention to effect its preservation, stabilization or improvement;
3. (c) that the activities proposed to be conducted by the neighborhood preservation company are reasonably calculated to have a positive effect on the preservation, stabilization or improvement of the neighborhood;
4. (d) that the neighborhood preservation company's officers, directors and members are fairly representative of the residents and other legitimate interests of the neighborhood, that they will carry out such a contract in a responsible manner and that at least thirty-three percent of the directors of the neighborhood preservation company are residents of the neighborhood;
5. (f) that the fees received or proposed to be received by the neighborhood preservation company from the management of housing accommodations are fair and reasonable;
6. (g) that the plan submitted by the neighborhood preservation company demonstrates that such company will, to the extent possible, give priority when hiring new employees to residents of the neighborhood who are either unemployed or not fully employed;
7. (h) that the neighborhood preservation company has a plan to facilitate, to the maximum extent feasible, the disposition of any buildings containing housing accommodations owned by the company to individual occupants thereof or to cooperative groups whose members shall be occupants thereof; and
8. (i) that the interests of occupants of any buildings containing housing accommodations owned by the neighborhood preservation company are adequately represented.

5. Prior to renewing or extending a contract or entering a succeeding contract with a neighborhood preservation company the division shall determine that:

1. (a) the company shall have substantially completed the neighborhood preservation activities specified in the contract to be renewed, extended, or succeeded;
2. (b) the company shall have received the sums, services, and funds specified in subdivision four of section nine hundred four of this article; and
3. (c) the activities carried out by the company pursuant to its contract shall have had a significant impact on the community's needs as specified in the contract.

6. Prior to terminating, not renewing or not extending a contract the division shall:

1. (a) determine that the company is in violation of the terms and conditions of the contract or that funds provided pursuant to the contract are being expended in a manner not consistent with the terms of the contract or the provisions of this article; or
2. (b) determine that necessary and appropriate technical assistance has been provided without significant improvement in the activities of the company; and
3. (c) provide the company with written notice, at least forty-five days in advance, of its intent to terminate, not renew or not extend the contract and provide the company with an opportunity to appear and be heard before the division with respect to the reasons for such proposed termination, non-renewal or non-extension. At the same time that a company is notified of the division's intent to terminate, not renew or not extend the contract, the division shall likewise inform the senate and assembly members who represent areas within such company's geographic boundaries.