In the case of coastal rehabilitation projects, a municipality or not-for-profit corporation, upon the approval of its governing body, may submit an application to the commissioner, in such form and containing such information as the commissioner may require, for state assistance payments toward the cost of a project which is within the state of New York and which is eligible for state assistance pursuant to this title. The commissioner shall review such project application and may approve, disapprove or recommend modifications thereto consistent with applicable law, criteria, standards or rules and regulations relative to such projects. Such criteria and standards shall include, but not be limited to: the consistency of the project with the Coastal Erosion Hazard Areas Act, article 34 of this chapter, notwithstanding paragraph d of subdivision three of section 34-0108 of this chapter; the official coastal policies of the state pursuant to article 42 of the executive law; the extent of natural damages to the coastal area and the suitability and feasibility of the project in relation to maintaining natural resource features and functions; the importance of the coastal area to recreational resources, fish and wildlife resources, and/or endangered or threatened species habitat; and the public benefits provided by the project.

Upon approval of a project application, a municipality or not-for-profit corporation shall enter into a contract, as further provided within this article, with the commissioner for state assistance payments toward the cost of such project to be received pursuant to this article.