N.Y. Comp. Codes R. & Regs. tit. 14, § 575.7 – Standards pertaining to waiver of eligibility.

(a) Eligibility criteria may be waived for an individual who is determined to be eligible pursuant to section 575.6(b) of this Part, but who does not qualify for community support services under the permanent eligibility criteria of section 575.6(c) of this Part or the categorical eligibility criteria of section 575.6(d) of this Part.
(b) Waivers authorized pursuant to this section shall be permitted if it is determined by a nurse, psychiatrist, psychologist or social worker, as defined in section 575.4 of this Part, that exclusion from the community support services program shall result in:
1. (1) admission to an inpatient psychiatric facility;
2. (2) inappropriate removal of the individual from his or her current residential setting; or
3. (3) a marked decline in the individual's mental or physical condition.
(c) No more than 10 percent of the individuals receiving community support services from a core service agency or a provider of services which directly contracts with the Office of Mental Health shall be otherwise ineligible individuals for whom eligibility has been waived.