The commissioner shall have the power to operate or cause to be operated community residential facilities for the mentally disabled. Within amounts available therefor and subject to regulations established by him and notwithstanding any other provisions of this article, he may provide state aid to local governments and to voluntary agencies (i) in an amount not to exceed fifty percent for acquisition or construction of such community residences, and (ii) in an amount not to exceed fifty percent for the total operating costs of community residences except community residences for the mentally ill. Such state aid to voluntary agencies shall not be granted unless there has been prior approval of the proposed community residence by the local governmental unit.
N.Y. Mental Hyg. Law § 41.33