New York Laws
Title 4 - Dormitory Authority
1678 - Powers of the Authority.

(a) To acquire by purchase, condemnation, gift, devise, lease or other
agreement such real property or an interest therein as may be necessary
or convenient for the acquisition, construction, reconstruction,
rehabilitation, improvement or provision of court facilities or combined
occupancy structures;
(b) To prepare or cause to be prepared plans, specifications, designs
and estimates of costs for the design, construction, reconstruction,
rehabilitation or improvement of court facilities or combined occupancy
structures, and the equipping and furnishing thereof;
(c) To prepare or cause to be prepared a facility design and
performance plan with each participating municipality relating to court
facilities and combined occupancy structures in any case where the
authority and the participating municipality have agreed that the
authority will award contracts for the design and construction of the
project. Such plan shall set forth the terms and conditions associated
with the construction management process, including, but not limited to,
provisions relating to the selection of architects, construction
consultants, construction managers and contractors, the relative
responsibilities of the authority and the participating municipality
with respect to the initial project budget and the court facilities
program, the preparation of working drawings and budgets, the project
construction process, beneficial occupancy including formal
notifications, punch lists and acceptance by all parties, notification
of construction completion, project close-out, and the commencement of
responsibility for maintenance of the facility. Such plan shall also
include provisions relating to the responsibility of the authority to
require appropriate performance and surety bonds, the diligent pursuit
by the authority of remedies against architects, contractors and
sureties deemed to be in default in the performance of their
obligations, and, generally, the management of the construction process
in a professional manner in accordance with prevailing construction
industry standards. The authority shall submit the facility design and
performance plan to the chief administrator for submission to the court
facilities capital review board in accordance with section sixteen
hundred eighty-c of this chapter;
(d) To design, construct, reconstruct, rehabilitate or improve court
facilities or combined occupancy structures and to enter into contracts
to cause court facilities or combined occupancy structures to be
designed, constructed, reconstructed, rehabilitated or improved;
(e) To enter into leases, subleases or other agreements with
participating municipalities in connection with court facilities and
jointly with participating municipalities and other persons, firms,
associations, corporations or agencies, including public bodies, in
accordance with section sixteen hundred eighty-b of this article;
(f) To sell, convey, lease, sublease or otherwise transfer any real
property or interest therein held by the authority to any person, firm,
association, corporation or agency, including a public body, for the
purpose of constructing or otherwise providing thereon a combined
occupancy structure, provided that, simultaneously therewith, the
authority enters into an agreement for the reconveyance, purchase,
lease, sublease or other acquisition of the court facilities to be
contained in such combined occupancy structures.
Any contract undertaken or financed by the dormitory authority for any
construction, reconstruction, rehabilitation or improvement of any court
facilities or combined occupancy structures shall comply with the
provisions of sections one hundred one and one hundred three of the
general municipal law.
14. To adopt resolutions providing for a program of self-insurance to
pay for uninsured losses incurred by the dormitory authority by reason
of a deductible feature in a policy or policies of insurance or to
prevent a default in the compliance with any provision of any agreement,
lease or resolution of the authority relating to or authorizing the
issuance of obligations of the authority. When such program is approved
by the superintendent of financial services of the state of New York,
such program shall for all purposes of compliance by the dormitory
authority with any provision of an agreement, lease or resolution of the
authority relating to or authorizing the issuance of obligations of the

authority be deemed to be an insurance policy issued by an insurance
company authorized to do business in the state of New York. The approval
of the superintendent shall be based upon such standards as he shall
from time to time determine to be appropriate in light of the said
program, including but not limited to reasonable requirements regarding
the amounts and kinds of coverage provided and the minimum financing
maintained, and provided that the superintendent shall determine that
such program will not be prejudicial to the best interests of the people
of this state.
15. The authority shall, notwithstanding any other law, have the power
to mortgage, pledge or assign any real or personal property of any
dormitory or board of cooperative educational services school facility
as and to the extent authorized by any agreement or lease between the
authority and any educational institution as defined in section sixteen
hundred eighty of this title or any board of cooperative educational
services to secure any and all liabilities of such educational
institution or board of cooperative educational services under such
agreement or lease in respect of such dormitory or board of cooperative
educational services facility not theretofore paid or discharged, or
other real or personal property of the authority. Any such mortgage,
pledge or assignment by the authority, unless otherwise provided
therein, shall be superior to any right an educational institution or a
board of cooperative educational services may have with respect to the
property subject to such mortgage, pledge or assignment, and upon
foreclosure of any such mortgage or enforcement of any such pledge or
assignment any such right shall be extinguished.
16. To acquire and to enter into commitments to acquire any federally
guaranteed security and to pledge or otherwise use any such federally
guaranteed security in such manner as the authority deems in its best
interest to secure or otherwise provide a source of repayment on any of
its bonds issued on behalf of any hospital designated as an educational
institution in section sixteen hundred eighty of this title or to enter
into any appropriate agreement with any hospital designated as an
educational institution in section sixteen hundred eighty of this title
whereby the authority may make a loan to any such hospital for the
purpose of acquiring and entering into commitments to acquire any
federally guaranteed security. Any agreement entered into pursuant to
this subdivision may contain such provisions which are deemed necessary
or desirable by the authority for the security or protection of the
authority or the holders of such bonds; provided, however, that the
authority, prior to making any such acquisition, commitment or loan,
shall first determine, and shall first enter into an agreement with any
such hospital or any other appropriate institution or corporation to
require, that the proceeds derived from the acquisition of any such
federally guaranteed security will be used for the purpose of providing
or refinancing any dormitory for any hospital designated as an
educational institution in section sixteen hundred eighty of this title,
including any facility, real property, equipment and appurtenant and
related facilities.
17. To make and undertake commitments to make education loans to any
independent institution for higher education located in this state,
recognized and approved by the regents of the university of the state of
New York, which provides a course of study leading to the granting of a
post-secondary degree, for the purpose of enabling any such institution
for higher education to make student loans to any student attending such
independent institution for higher education, the parents of any such
student or both for the purpose of financing the cost of attendance by
such student at such independent institution for higher education, to

make and to commit to make direct loans to a student or the parents of a
student or both for the purpose of financing the cost of attendance by
such student at a public institution for higher education, and to
purchase, acquire or take by assignment or otherwise student loans from
such an independent institution for higher education. Each loan and
purchase of a student loan by the authority authorized by this
subdivision shall be premised upon an agreement, agreements, or
supplements thereto, between the authority and such institution for
higher education, such student or the parents of the student or both,
which agreement, agreements, or supplements thereto, may make provisions
as to payment, security, payment of any expenses or costs of the
authority and any other matters deemed appropriate by the authority.
All provisions of this title not inconsistent with the provisions of
this subdivision shall be applicable with respect to any bonds of the
authority issued to obtain funds for any purpose authorized under this
subdivision, and with respect to the powers of the authority and any
such institution for higher education provided, however, that the use of
any such powers in order to effectuate the purpose of section sixteen
hundred seventy-nine of this chapter be expressed by guidelines subject
to the review of the advisory committee pursuant to paragraph ten of
section sixteen hundred seventy-nine of this chapter. Bonds of the
authority issued for the purposes of this subdivision shall be deemed to
be issued for the financing and construction of a project within the
meaning of section fifty-one of this chapter.
18. To make and undertake commitments to make HEAL education loans to
any independent institution for higher education located in this state,
which is an eligible institution pursuant to title IV, part C, of the
"Health Professions Educational Assistance Act of 1976", as now or
hereafter amended, for the purpose of enabling any such institution to
make HEAL student loans, to make and to commit to make HEAL direct loans
to an eligible student attending a public or independent institution for
higher education, and to purchase, acquire or take by assignment or
otherwise HEAL student loans, and to sell and commit to sell HEAL direct
loans, HEAL education loans and HEAL student loans purchased, acquired
or taken by assignment or otherwise by the authority to the extent
necessary to assure the marketability of and the adequacy of the
security for the bonds of the authority. Each loan and purchase of a
HEAL student loan by the authority authorized by this subdivision shall
be premised upon an agreement, agreements, or supplements thereto,
between the authority and such institution for higher education or such
student, which agreement, agreements, or supplements thereto, may, to
the extent permitted by federal law and regulations, make provisions as
to payment, security, payment of any expenses or costs of the authority
and any other matters deemed appropriate by the authority. The authority
shall be deemed to be and is authorized to act as an eligible lender as
defined in title IV, part C, of the "Health Professions Educational
Assistance Act of 1976", as now or hereafter amended, for purposes of
the health education assistance loan program authorized thereunder.
All provisions of this title not inconsistent with the provisions of
this subdivision shall be applicable with respect to any bonds of the
authority issued to obtain funds for any purpose authorized under this
subdivision, and with respect to the powers of the authority and any
such institution for higher education, provided, however, that the use
of any such powers in order to effectuate the purpose of sections
sixteen hundred seventy-nine and sixteen hundred seventy-nine-a of this
chapter be expressed by guidelines subject to the review of the advisory
committee pursuant to subdivision ten of section sixteen hundred
seventy-nine of this chapter. Bonds of the authority issued for the

purposes of this subdivision shall be deemed to be issued for the
financing and construction of a project within the meaning of section
fifty-one of this chapter.
19. By contract or contracts or by its own employees to design,
contruct, acquire, reconstruct, rehabilitate and improve, and furnish
and equip, or otherwise provide judicial facilities.
All provisions of this title not inconsistent with the provisions of
this subdivision shall be applicable with respect to any bonds of the
authority issued to obtain funds for any purpose authorized under this
subdivision, and with respect to the powers of the authority; provided,
however, that the authority shall not undertake the provision of
judicial facilities authorized by this subdivision unless the governing
body of any county, within the tenth judicial district, that does not
contain a city for whose use judicial facilities are to be provided
consents thereto.
20. To enter into a contract or contracts with the commissioner of
health for the purpose of implementing the health facility restructuring
pool pursuant to section twenty-eight hundred fifteen of the public
health law, and to receive, hold, invest and pay out moneys deposited in
the restructuring pool. In connection therewith, the authority shall
exercise all of its powers under article eight of this chapter.
21. (a) To enter into one or more agreements with the state university
of New York to provide financial assistance on behalf of the state, as
provided in subdivision eight of section six thousand three hundred four
of the education law, to the local sponsors of community colleges for
the design, acquisition, construction, reconstruction, rehabilitation or
improvement of one or more facilities for locally sponsored community
colleges and the furnishing or equipping of such facilities. Each such
agreement shall provide for annual payments to the dormitory authority
from the state aid or other financial assistance provided to the local
sponsor of such community college and paid into the community college
tuition and instructional fund pursuant to paragraph (iii) of
subdivision two of section ninety-seven-p of the state finance law, and
contain such other terms and conditions as may be agreed upon by the
parties thereto, including, but not limited to, provisions relating to
the establishment of reserve funds and indemnities. Each such agreement
shall be subject to the approval of the director of the budget.
(b) Any such agreement entered into pursuant to this subdivision may
provide that the provisions thereof shall remain in force and effect
until the issue of bonds of the dormitory authority to which it relates,
together with interest thereon, interest on any unpaid installments of
interest and the fees and expenses of the dormitory authority, are fully
met and discharged, and any payments to be made by the state may be
pledged by the dormitory authority to secure such bonds.
(c) No agreement entered into pursuant to this section shall be
construed to limit or diminish the power of the dormitory authority with
respect to a locally sponsored community college with respect to
providing construction related services in connection with the
construction, reconstruction, improvement, renovation, development or
expansion of locally sponsored community college facilities.
23. To make equipment loans pursuant to section sixteen hundred
seventy-nine-b of this article and, in connection with such equipment
loans, to enter into all necessary or useful agreements with respect to
such loans.
24. To acquire bonds, notes or other obligations of any school
district or city of the state issued to finance or refinance school
district capital facilities and school district capital equipment and to
make loan commitments and loans to school districts and to cities for

such purposes, and to enter into arrangements with school districts and
cities for the purchase of such bonds, notes or other obligations.
* 25.
(a) To form one or more subsidiaries for the purpose of
limiting the potential liability of the authority when exercising the
powers and duties conferred upon the authority by this article in
connection with the exercise of remedies by the authority against any
borrower regulated under article twenty-eight of the public health law
that has defaulted in its obligations under its loan agreement or
mortgage with the authority and for which an event of default has been
declared by the authority. Each such subsidiary created pursuant to this
subdivision may exercise and perform one or more of the purposes,
powers, duties, functions, rights and responsibilities of the authority
(other than the issuance of indebtedness) in connection with real and
personal property with respect to which the authority holds or held a
mortgage, security interest or other collateral interest including: (i)
bidding for, taking, holding, selling, conveying, assigning or
transferring title to such property; (ii) entering into leases,
subleases, operating agreements, security agreements, loan agreements or
other encumbrances or arrangements with regard to such property and
acting in a manner consistent with the rights, obligations or
responsibilities of the owner of such property pursuant to such
agreements or encumbrances; (iii) assuming any indebtedness or other
liabilities secured by such property. Notwithstanding any other
provision of law to the contrary, but in all instances subject to the
provisions of any contract with bondholders, the transfer of title to
any such subsidiary or any other actions taken by the authority or such
subsidiary to enforce the authority's rights under the mortgage,
security interest or other collateral interest or to protect, acquire,
manage or dispose of the property shall be deemed to be a corporate
purpose of the authority and shall not impair the validity of any bonds,
notes or other obligations of the authority to which the mortgage,
security interest or other collateral interest relates.
(b) Each such subsidiary authorized by paragraph (a) of this
subdivision shall be established in the form of a public benefit
corporation by executing and filing with the secretary of state a
certificate of incorporation which shall identify the authority as the
entity organizing such subsidiary and set forth the name of such
subsidiary public benefit corporation, its duration, the location of its
principal office and its corporate purposes as provided in this
subdivision and which certificate may be amended from time to time by
the filing of amendments thereto with the secretary of state. Each such
subsidiary shall be organized as a public benefit corporation, shall be
a body politic and corporate, and shall have all the privileges,
immunities, tax exemptions and other exemptions of the authority. The
members of each such subsidiary shall be the same as the members of the
authority and the provisions of subdivision two of section sixteen
hundred ninety-one of this title shall in all respects apply to such
members when acting in such capacity.
(c) Nothing in this subdivision shall be construed to impose any
liabilities, obligations or responsibilities of any such subsidiary upon
the authority and the authority shall have no liability or
responsibility therefor unless the authority expressly agrees to assume
the same.
(d) Each such subsidiary created pursuant to this subdivision shall be
subject to any other provision of this chapter pertaining to
subsidiaries of public authorities.
(e) Notwithstanding any other provision of law to the contrary,
including but not limited to title five-A of article nine of this

chapter, the Atlantic Avenue Healthcare Property Holding Corporation is
hereby authorized and empowered to sell, exchange, lease, transfer and
convey certain real property located at 483-503 Herkimer Street,
1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,
all in Brooklyn, New York as directed by the commissioner of New York
state division of homes and community renewal, upon such terms and
conditions as such commissioner may fix and determine.
Such sale, exchange, lease, transfer and conveyance shall be
consistent with and made pursuant to a plan to increase access and
quality of health care services and preventative care and create
affordable housing approved by the commissioner of New York state
division of homes and community renewal, the commissioner of health and
the director of the division of the budget to transform the Central
Brooklyn region. Such plan shall include any combination of initiatives
intended to: increase access to open spaces, transform health care by
increasing access and quality of health care services and preventative
care, create affordable housing, improve youth development, prevent
community violence, address social determinants of health, and provide
any ancillary services thereto.
Notwithstanding the foregoing, no such sale, exchange, transfer, lease
or conveyance shall be permitted pursuant to this section, unless in the
opinion of bond counsel to the authority, such sale, exchange, transfer,
lease or conveyance does not impair the tax-exempt status of any
outstanding bonds or other obligations, if any, issued by the authority
to finance or refinance the subject property. For the purposes of such
opinion, the valuation of such property being sold, exchanged,
transferred, leased or conveyed may reflect the terms and conditions set
forth in the plan.
(f) The description in paragraph (e) of this subdivision of the lands
to be transferred and conveyed is not intended to be a legal
description, but is intended only to identify the premises to be
conveyed. As a condition of transfer and conveyance, the Atlantic Avenue
Healthcare Property Holding Corporation shall receive an accurate survey
and description of the lands generally described in paragraph (e) of
this subdivision, which may be used in the conveyance thereof.
* NB Effective until July 1, 2024
* 25. (a) To form a subsidiary for the purpose of limiting the
potential liability of the authority when exercising the powers and
duties conferred upon the authority by article eight of this chapter in
connection with the exercise of remedies by the authority against North
General Hospital, an eligible secured borrower (as defined in chapter
five hundred ninety of the laws of two thousand two) located in the
borough of Manhattan, New York that has defaulted in its obligations
under its loan agreement or mortgage with the authority and for which an
event of default has been declared by the authority. Such subsidiary
created pursuant to this subdivision may exercise and perform one or
more of the purposes, powers, duties, functions, rights and
responsibilities of the authority other than the issuance of
indebtedness, in connection with real and personal property with respect
to which the authority holds or held a mortgage, security interest or
other collateral interest including: (i) bidding for, taking, holding,
selling, conveying, assigning or transferring title to such property;
(ii) entering into leases, subleases, operating agreements, security
agreements, loan agreements or other encumbrances or arrangements with
regard to such property and acting in a manner consistent with the
rights, obligations or responsibilities of the owner of such property
pursuant to such agreements or encumbrances; (iii) assuming any
indebtedness or other liabilities secured by such property.

Notwithstanding any other provision of law to the contrary, but in all
instances subject to the provisions of any contract with bondholders,
the transfer of title to such subsidiary or any other actions taken by
the authority or the subsidiary to enforce the authority's rights under
the mortgage, security interest or other collateral interest or to
protect, acquire, manage or dispose of the property shall be deemed to
be a corporate purpose of the authority and shall not impair the
validity of any bonds, notes or other obligations of the authority to
which the mortgage, security interest or other collateral interest
relates.
(b) Such subsidiary authorized by paragraph (a) of this subdivision
shall be established in the form of a public benefit corporation by
executing and filing with the secretary of state a certificate of
incorporation which shall identify the authority as the entity
organizing such subsidiary and set forth the name of such subsidiary
public benefit corporation, its duration, the location of its principal
office and its corporate purposes as provided in this subdivision and
which certificate may be amended from time to time by the filing of
amendments thereto with the secretary of state. Such subsidiary shall be
organized as a public benefit corporation, shall be a body politic and
corporate, and shall have all the privileges, immunities, tax exemptions
and other exemptions of the authority. The members of such subsidiary
shall be the same as the members of the authority and the provisions of
subdivision two of section sixteen hundred ninety-one of this title
shall in all respects apply to such members when acting in such
capacity.
(c) Nothing in this subdivision shall be construed to impose any
liabilities, obligations or responsibilities of such subsidiary upon the
authority and the authority shall have no liability or responsibility
therefor unless the authority expressly agrees to assume the same.
(d) Such subsidiary created pursuant to this subdivision shall be
subject to any other provision of this chapter pertaining to
subsidiaries of public authorities.
(e) Notwithstanding any other provision of law to the contrary,
including but not limited to title five-A of article nine of this
chapter, the Atlantic Avenue Healthcare Property Holding Corporation is
hereby authorized and empowered to sell, exchange, lease, transfer and
convey certain real property located at 483-503 Herkimer Street,
1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,
all in Brooklyn, New York as directed by the commissioner of New York
state division of homes and community renewal, upon such terms and
conditions as such commissioner may fix and determine.
Such sale, exchange, lease, transfer and conveyance shall be
consistent with and made pursuant to a plan to increase access and
quality of health care services and preventative care and create
affordable housing approved by the commissioner of New York state
division of homes and community renewal, the commissioner of health and
the director of the division of the budget to transform the Central
Brooklyn region. Such plan shall include any combination of initiatives
intended to: increase access to open spaces, transform health care by
increasing access and quality of health care services and preventative
care, create affordable housing, improve youth development, prevent
community violence, address social determinants of health, and provide
any ancillary services thereto.
Notwithstanding the foregoing, no such sale, exchange, transfer, lease
or conveyance shall be permitted pursuant to this section, unless in the
opinion of bond counsel to the authority, such sale, exchange, transfer,
lease or conveyance does not impair the tax-exempt status of any

outstanding bonds or other obligations, if any, issued by the authority
to finance or refinance the subject property. For the purposes of such
opinion, the valuation of such property being sold, exchanged,
transferred, leased or conveyed may reflect the terms and conditions set
forth in the plan.
(f) The description in paragraph (e) of this subdivision of the lands
to be transferred and conveyed is not intended to be a legal
description, but is intended only to identify the premises to be
conveyed. As a condition of transfer and conveyance, the Atlantic Avenue
Healthcare Property Holding Corporation shall receive an accurate survey
and description of the lands generally described in paragraph (e) of
this subdivision, which may be used in the conveyance thereof.
* NB Effective July 1, 2024
* 26. To enter into a design and construction management agreement
with the department of environmental conservation, pursuant to which one
or more facilities are to be designed, constructed, reconstructed,
rehabilitated, improved, furnished or equipped for such department. Any
such design and construction management agreement entered into pursuant
to this subdivision shall provide for the following: the scope of design
and construction management services to be provided by the authority,
the manner in which those services will be provided, the fees to be
charged by the authority and the sources of funds for the projects. No
design-build contract as defined in chapter fifty-six of the laws of two
thousand eleven shall be awarded pursuant to this subdivision.
* NB Repealed April 1, 2025
* 27. To enter into a design and construction management agreement
with the office of parks, recreation and historic preservation, pursuant
to which one or more facilities are to be designed, constructed,
reconstructed, rehabilitated, improved, furnished or equipped for such
office. Any such design and construction management agreement entered
into pursuant to this subdivision shall provide for the following: the
scope of design and construction management services to be provided by
the authority, the manner in which those services will be provided, the
fees to be charged by the authority and the sources of funds for the
projects. No design-build contract as defined in chapter fifty-six of
the laws of two thousand eleven shall be awarded pursuant to this
subdivision.
* NB Repealed April 1, 2025
28. To enter into a construction management agreement with the New
York city housing authority, pursuant to which one or more facilities
owned or operated by the New York city housing authority located in the
city of New York are to be constructed, reconstructed, demolished,
improved, modernized, renovated or expanded for such authority.
* 29. Notwithstanding any law to the contrary, to establish a pilot
program for the award of contracts up the maximum dollar amount
specified in paragraph (e) of this subdivision, for the procurement of
goods or services from, or for the construction, reconstruction,
rehabilitation or improvement of facilities by, small businesses as
defined in section one hundred thirty-one of the economic development
law and minority-owned and women-owned business enterprises as defined
in section three hundred ten of the executive law, notwithstanding the
expiration of such section pursuant to subdivision (h) of section one
hundred twenty-one of chapter two hundred sixty-one of the laws of
nineteen hundred eight-eight, as amended, in accordance with the
following provisions:
(a) Procurements made pursuant to this subdivision shall be governed
by the authority's procurement policy and guidelines adopted pursuant to
section twenty-eight hundred seventy-nine of this chapter, with

participation in the pilot program confined to small businesses, as
defined in section one hundred thirty-one of the economic development
law, and minority-owned and women-owned business enterprises, as defined
in section three hundred ten of the executive law.
(b) Procurements made pursuant to this subdivision shall be designated
as such by the authority, in its sole discretion, pursuant to
pre-established criteria contained in the authority's procurement and
policy guidelines described in paragraph (a) of this subdivision. Such
designation shall be made prior to the advertisement and request for
bids or proposals, and any such advertisement or request shall indicate
this designation clearly.
(c) If the total number of parties responding and considered capable
of meeting the specifications and terms of the advertisement and request
for bids or proposals is less than three, or if the authority determines
that acceptance of any bid or proposal will result in the payment of an
unreasonable price, the authority shall reject all responses and
withdraw the designation made pursuant to paragraph (b) of this
subdivision.
(d) Procurements made pursuant to this subdivision may be undertaken
in conjunction with section one hundred forty-seven of the state finance
law authorizing a mentor-protege program to foster long-term
relationships between approved mentor firms and small business concerns
and minority and women-owned businesses certified pursuant to article
fifteen-A of the executive law.
(e) The total value of contracts awarded pursuant to this subdivision
shall not exceed the greater of twenty million dollars or five percent
of the value of all contracts awarded by the authority in a given fiscal
year.
The authority shall submit a report, no later than September
thirtieth, two thousand twenty-four, and annually thereafter, to the
governor, the temporary president of the senate and the speaker of the
assembly regarding procurements made pursuant to this subdivision. Such
report shall include a description of each procurement made pursuant to
this subdivision, information regarding the procurement process for each
such procurement contract, including the list of responding entities
that demonstrated the capability to meet the specifications and terms of
the procurement made pursuant to this subdivision if such procurement
did not use lowest responsible bidding, the project identification
number and a description for each such project, the completion date or
projected completion date as applicable for each such project, the
status of each such project, the total cost or projected cost and cost
modifications of each such project procured pursuant to this
subdivision, indication of whether the party awarded a contract pursuant
to this subdivision served as a general contractor or subcontractor in
fulfilling the contract, and the total dollar value of monies paid to
minority-owned and women-owned business enterprises pursuant to this
subdivision itemized by year and including the total dollar values for
the five years preceding the respective annual report's release date.
For annual reports any new procurements and changes during the period
covered by the report shall be identified separately.
* NB Repealed July 1, 2027
30. To enter into one or more agreements with the office of cannabis
management, the cannabis control board, or the private debt or equity
fund, selected pursuant to subdivision thirty-two of this section, in
which the state or any state agency, public authority, public benefit
corporation, or division thereof has invested and is formed for the
limited purpose of funding the capital costs associated with
establishing conditional adult-use cannabis retail dispensaries for

operation by social equity licensees duly licensed pursuant to article
two of the cannabis law, for the following purposes:
(a) (i) To acquire by lease or sublease such real property or any
interest therein as may be necessary or convenient for the construction,
reconstruction, rehabilitation, improvement, or provision of conditional
adult-use cannabis retail dispensaries for operation by social equity
licensees, as agent, and (ii) to acquire by purchase or other agreement,
personal property or interest therein as may be necessary for the
acquisition, construction, reconstruction, rehabilitation, improvement
or provision of such dispensaries, whether as principal or agent;
(b) To prepare or cause to be prepared, whether as principal or agent,
plans, specifications, designs, and estimates of costs for the design,
construction, reconstruction, rehabilitation, improvement, furnishing or
equipping of conditional adult-use cannabis retail dispensaries for
operation by social equity licensees;
(c) To design, construct, reconstruct, rehabilitate, or to cause the
design, construction, rehabilitation or improvement of, whether as
principal or agent, conditional adult-use cannabis retail dispensaries
for operation by social equity licensees and to enter into contracts to
cause such facilities to be designed, constructed, reconstructed,
rehabilitated, improved, furnished, or equipped;
(d) To enter, as lessor or as agent for the lessor, into leases,
subleases, or other agreements with the social equity licensees
operating for the conditional adult-use cannabis retail dispensaries;
provided that (i) the authority shall only enter in lease agreements as
agent of the private debt or equity fund selected pursuant to
subdivision thirty-two of this section, (ii) any general terms of such
lease agreement, and any material deviations or changes therefrom, are
approved by the office of cannabis management; and
(e) To enter, as lender or as agent to the lender, into a non-recourse
loan or other agreements with the social equity licensees operating the
conditional adult-use cannabis retail dispensaries, provided that any
general terms of such non-recourse loan agreements, and any material
deviations or changes therefrom, are approved by the office of cannabis
management and that the terms of the non-recourse loan agreement do not
include a penalty for early termination but will allow for the inclusion
of a make-whole provision and shall not, at the time the loan is
established, exceed the prime lending rate plus one-half the interest
rate specified under subdivision one of section fourteen-a of the
banking law, nor include terms or conditions that would allow for an
equity position in the social equity licensee's conditional adult-use
cannabis retail dispensary business or that would entitle a share in, or
claim to, any revenue or profit generated by such business.
31. (a) To form one or more subsidiaries for the purpose of limiting
the potential liability of the authority when exercising the powers and
duties conferred upon the authority by subdivision thirty of this
section in connection with certain work performed on behalf of the
office of cannabis management, the cannabis control board, or the
private debt or equity fund in which the state or any state agency,
public authority, public benefit corporation, or division thereof has
invested and has been selected pursuant to subdivision thirty-two of
this section. Such subsidiary created pursuant to this subdivision may
exercise and perform one or more of the purposes, powers, duties,
functions, rights and responsibilities of the authority other than the
issuance of indebtedness, in connection with real and personal property
with respect to which the authority holds title or a leasehold interest,
in its own name or as agent for the titleholder or leaseholder
including, but not limited to: (i) entering into leases, subleases, or

other arrangements with regard to such property and acting in a manner
consistent with the rights, obligations or responsibilities of the
owner, landlord or tenant of such property pursuant to such lease or
sublease agreements; (ii) servicing non-recourse loan payments; (iii)
furnishing property management services; and (iv) providing general
operational and administrative support services.
(b) Such subsidiary authorized by paragraph (a) of this subdivision
shall be established in the form of a public benefit corporation by
executing and filing with the secretary of state a certificate of
incorporation which shall identify the authority as the entity
organizing such subsidiary and set forth the name of such subsidiary
public benefit corporation, its duration, the location of its principal
office and its corporate purposes as provided in this subdivision and
which certificate may be amended from time to time by the filing of
amendments thereto with the secretary of state. Such subsidiary shall be
organized as a public benefit corporation, shall be a body politic and
corporate, and shall have all the privileges, immunities, tax exemptions
and other exemptions of the authority. The members of such subsidiary
shall be the same as the members of the authority and the provisions of
subdivision two of section sixteen hundred ninety-one of this title
shall in all respects apply to such members when acting in such
capacity.
(c) Nothing in this subdivision shall be construed to impose any
liabilities, obligations, or responsibilities of such subsidiary upon
the authority and the authority shall have no liability or
responsibility therefor unless the authority expressly agrees to assume
the same.
(d) Such subsidiary created pursuant to this subdivision shall be
subject to any other provision of this chapter pertaining to
subsidiaries of public authorities.
32. (a) (i) To select a private debt or equity fund formed for the
sole purpose of funding the capital costs, including closely related
ancillary and administrative costs, associated with establishing
conditional adult-use cannabis retail dispensaries for operation by
social equity licensees deemed to be eligible by the office of cannabis
management for financing through such fund or related costs, provided
that any partnership agreement between the fund and the authority, shall
be subject to the written approval or resolution of the cannabis control
board, the board of the dormitory authority, and the director of the
division of the budget, and the selection of such general partner shall
be made in consultation with the office of cannabis management.
(ii) The organizational structure and investment policy of the
selected fund and the provisions of the partnership agreement shall
satisfy the following parameters and requirements:
(1) The fund shall have a public policy committee composed of the
chair of the cannabis control board, executive director of the office of
cannabis management, and the president of the authority, or their
representatives, who shall guide the decisions of the selected fund to
achieve the public policy goals of the state, which includes providing
advice and direction to the fund where matters implicate public policy
and confirming the fund's adherence to its public purpose, which
includes compliance with stated objectives or mission of the cannabis
law and the marihuana regulation and taxation act, generally and more
specifically, to provide social equity conditional adult-use cannabis
retail dispensary licensees with the opportunity of acquiring
commercially viable retail operations;
(2) Such committee shall:
(A) review and approve of the fund's investment policy statement and
any changes thereto;
(B) review and approve any changes to the use and distribution of
investment funds;
(C) review and approve the fund's strategic plan, particularly those
pertaining to the investor class, the establishment, management, and
liquidation of investments by the fund;
(D) monitor the fund's risk profile, investment activity, and
performance;
(E) approve the maximum amount of promised return on investment,
management fees, and compensation of the general partner;
(F) review and approve any changes or amendments to the fund's
organizational structure, partnership agreements, and the fund manager
or servicer's agreement to ensure that they are consistent with the
fund's public purpose;
(G) take reasonable steps, at the direction of the office of cannabis
management, to provide geographic equity and representation in
establishing such conditional adult-use cannabis retail dispensaries for
operation by social equity licensees, to the extent practicable, in
support of the public purpose of the fund and further, at the direction
of the office of cannabis management that the site selection for such
dispensaries comports with the requirements of the cannabis law and the
marihuana regulation and taxation act, and its rules and regulations
governing the location of conditional adult-use cannabis dispensaries;
and
(H) confirm that any real property leases and loan agreements issued
by or on behalf of the fund shall be provided to social equity
licensees, duly licensed pursuant to article two of the cannabis law;
(3) The general partner and the fund shall to the extent allowable by
section one of article five of the state constitution, authorize the
comptroller of the state, or the comptroller's legally authorized
representatives, to access, examine, or audit the accounts and books of
the fund including its receipts, disbursements, contracts, investments,
and any other items directly relating to its financial standing and
cooperate with any such financial examination or financial audit on an
annual basis. The general partner shall agree to cause the key officers
to be available to discuss the fund and the partnership and its
activities at the time of the audit;
(4) The general partner shall agree to cause the key officers to be
available to discuss the fund and the partnership and its activities at
the request of the public policy committee;
(5) Any real property subleased out by the fund to a social equity
licensee shall be at the same rate on which the fund has leased such
property;
(6) The fund shall not be authorized to borrow any money or to incur
any indebtedness, including guarantees, except when approved by the
public policy committee;
(7) The fund shall not be voluntarily terminated early without the
prior consent of the public policy committee;
(8) The fund shall have a conflict-of-interest policy approved by the
public policy committee;
(9) Any loan agreement the fund enters into with social equity
licensees shall be a non-recourse loan and shall allow prepayment of the
debt without any penalty imposed by the fund but will allow for the
inclusion of a make-whole provision and shall not, at the time that the
non-recourse loan is established, exceed the prime lending rate plus
one-half the maximum interest rate specified under subdivision one of
section fourteen-a of the banking law;
(10) The fund shall not accept more than two hundred million dollars
in total investment over the course of its life and the state's
contribution to the fund shall not exceed fifty million dollars; and
(11) The fund shall not take any equity positions in, issue equity
loans to, or enter into revenue or profit sharing agreements with any
social equity adult-use cannabis retail dispensary business or include
any terms and conditions in an agreement with such business to that
effect; the fund shall also not include any excessive penalties within
the loan agreements; and
(12) Any other requirement as the dormitory authority may deem
appropriate, in consultation with the office of cannabis management, or
the cannabis control board.
(b) (i) After the funding of the private debt or equity fund as
provided pursuant to this subdivision, the authority shall prepare an
annual report beginning on December thirtieth, two thousand twenty-two
and annually thereafter, which report shall include, but not be limited
to:
(1) the number of conditional adult-use cannabis retail dispensaries
assisted by the authority pursuant to this subdivision;
(2) the geographic distribution of sites designated by the office of
cannabis management and prepared by the authority for conditional
adult-use cannabis retail dispensaries for operation by licensed social
equity businesses; and
(3) any other such data and information, including information about
subsidiary or subsidiaries created pursuant to subdivision thirty-one of
this section.
(4) Additionally, for the first report, the authority shall report on
the procurement and selection of the general partner.
(ii) Such report shall be published on the authority's website and
presented to the governor, the temporary president of the senate and the
speaker of the assembly, no later than December thirtieth, two thousand
twenty-two and annually thereafter; and
(iii) The authority shall further submit a copy of the partnership
agreement between the fund and the authority, to the governor, the
temporary president of the senate, and the speaker of the assembly no
later than fifteen days after such agreement has been fully executed.

Structure New York Laws