N.Y. Comp. Codes R. & Regs. tit. 18, § 489.15 – Special needs funds.

(a) In accordance with standards established by the department, local districts must establish a process to periodically advance funds to operators of certified family-type homes for adults to meet one or more of the special needs of their residents who are receiving supplemental security income, additional State payments or home relief. Local districts must periodically advance payments to operators of certified family-type homes for adults for the following special needs items:
1. (1) up to $290 a year per resident for clothing, transportation, recreation and cultural activities;
2. (2) up to $500 a year per home for the provision of substitute care for scheduled and emergency absences of the operator; and
3. (3) up to $75 a year per home to be used for health and safety equipment.
(b) Local districts must establish a separate account for special needs funds and must administer payments to operators out of this account in accordance with procedures established by the department.
(c) In accordance with the provisions of section 153 of the Social Services Law, the department must pay local districts for 100 percent of the cost of special needs funds pursuant to subdivision (a) of this section from monies appropriated for such purpose.
(d) The department also must provide 100 percent reimbursement to local districts for the administrative costs related to the expenditure of special needs funds pursuant to subdivision (a) of this section to the extent that such costs do not exceed 10 percent of the special needs funds expended by local districts. Related administrative costs of local districts in excess of 10 percent of the special needs funds expended by local districts must be reimbursed by the department at a rate of 50 percent.
(e) The department will periodically make advances to local districts in anticipation of the expenditure of special needs funds pursuant to subdivision (a) of this section.
(f) Nothing contained in this section will be construed to require expenditures by local districts pursuant to subdivision (a) of this section in excess of the amounts made available to local districts by the department.
(g) State payments to local districts may only be made from and to the extent of monies appropriated to the department for the expenditure of special needs funds pursuant to subdivision (a) of this section.
(h) The department must periodically audit payments and the maintenance of the special needs accounts established by local districts in accordance with the provisions of subdivision (b) of this section.
(i) The department may prescribe forms to be utilized by local districts and family-type home operators in the implementation of this section. Failure of an operator to use forms prescribed by the department will result in withholding of additional payments pursuant to the provisions of this section.
(j) Social services districts must review the expenditure of special needs funds during their inspection visits of certified family-type homes for adults required by section 489.5(a)(2) of this Part to assure that such funds are spent in accordance with the provisions of subdivision (a) of this section.
(k) The department may require local districts to periodically submit reports on the implementation of this section on forms to be prescribed by the department.