(1) "Bonds" and "notes". The bonds and notes respectively issued by
the corporation pursuant to this act.
(2) "Comptroller". The comptroller of the state.
(3) "Corporation". The corporate governmental agency created by
section four of this act.
(4) "Housing Company". A company organized pursuant to the provisions
of either article two, four, five or eleven of the private housing
finance law.
(5) "Local Development Corporation". A corporation incorporated or
reincorporated pursuant to the provisions of article fourteen of the
not-for-profit corporation law.
(6) PROJECT: A specific work or improvement including lands,
buildings, improvements, real and personal properties or any interest
therein, acquired, owned, constructed, reconstructed, rehabilitated or
improved by the corporation or any subsidiary thereof, whether or not
still owned or financed by the corporation or any subsidiary thereof,
including a residential project, an industrial project, a land use
improvement project, a civic project, an industrial effectiveness
project, a small and medium-sized business assistance project, a fruit
growing, fruit processing, or winery business project, or an economic
development project, all as defined herein, or any combination thereof,
which combination shall hereinafter be called and known as a
"multi-purpose project". The term "project" as used herein shall include
projects, or any portion of a project.
(a) "Residential project". A project or that portion of a
multi-purpose project designed and intended for the purpose of providing
housing accommodations for persons or families of low income and such
facilities as may be incidental or appurtenant thereto.
(b) "Industrial project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for manufacturing, warehousing, research, business or other industrial
or commercial purposes, including but not limited to machinery and
equipment deemed necessary for the operation thereof (excluding raw
material, work in process or stock in trade).
(c) "Land Use Improvement project". A plan or undertaking for the
clearance, replanning, reconstruction and rehabilitation or a
combination of these and other methods, of a substandard and insanitary
area, and for recreational or other facilities incidental or appurtenant
thereto, pursuant to and in accordance with article eighteen of the
constitution and this act. The terms "clearance, replanning,
reconstruction and rehabilitation" shall include renewal, redevelopment,
conservation, restoration or improvement or any combination thereof as
well as the testing and reporting of methods and techniques for the
arrest, prevention and elimination of slums and blight.
(d) "Civic project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for educational, cultural, recreational, community, municipal, public
service or other civic purposes.
(e) "Industrial effectiveness project". A project or that portion of a
multi-purpose project designed and intended for the purpose of (i)
improving the productivity and competitiveness of an industrial firm or
group of industrial firms through such means as, but not limited to, the
redesign of production facilities, the introduction of new production
processes and management systems, the expansion or diversification of
product lines, the development of new markets, and labor and management
cooperative efforts to enhance productivity; (ii) implementing a
corporate restructuring or turnaround plan for an industrial firm; (iii)
effecting the transfer of the ownership and control of a viable
industrial firm to its employees, managers or other investors resident
in the state; or (iv) enhancing the opportunity for an industrial firm
to create or retain jobs, thereby promoting fuller employment and
economic development in the state.
(f) "Small and medium-sized business assistance project". A project
designed and intended for the purpose of providing assistance to
industrial firms that employ five hundred or fewer employees within the
state on a full-time basis.
(g) Economic development project. The acquisition, construction,
reconstruction, rehabilitation, or improvement of a project financed
pursuant to the empire state economic development fund which will
achieve the purposes of facilitating the creation or retention of jobs
or increasing business activity within a municipality or region of the
state.
(h) "fruit growing, fruit processing, or winery business project". A
project or that portion of a multi-purpose project designed and intended
for the purpose of establishing, maintaining, or expanding fruit growing
acreage or operations, or for providing facilities for the production,
manufacture, processing, warehousing, research, or distribution and sale
of fresh fruits or the processing of such fruits into juices, wines, or
other food products. As specified in paragraph (b-1) of subdivision 6 of
section 16-l of this act, such project costs may include, but not be
limited to, the cost of buildings, machinery, equipment, New York raw
fruits, New York unprocessed or partially processed fruits, root stock,
other personal property, materials, working capital, or stock in trade
required to establish such project.
* (6) "Project". A specific work or improvement including lands,
buildings, improvements, real and personal properties or any interest
therein, acquired, owned, constructed, reconstructed, rehabilitated or
improved by the corporation or any subsidiary thereof, whether or not
still owned or financed by the corporation or any subsidiary thereof,
including a residential project, an industrial project, a land use
improvement project, a civic project, an industrial effectiveness
project, a small and medium-sized business assistance project, or an
infrastructure project, all as defined herein, or any combination
thereof, which combination shall hereinafter be called and known as a
"multi-purpose project". The term "project" as used herein shall include
projects, or any portion of a project.
(a) "Residential project". A project or that portion of a
multi-purpose project designed and intended for the purpose of providing
housing accommodations for persons or families of low income and such
facilities as may be incidental or appurtenant thereto.
(b) "Industrial project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for manufacturing, warehousing, research, business or other industrial
or commercial purposes, including but not limited to machinery and
equipment deemed necessary for the operation thereof (excluding raw
material, work in process or stock in trade).
(c) "Land Use Improvement project". A plan or undertaking for the
clearance, replanning, reconstruction and rehabilitation or a
combination of these and other methods, of a substandard and insanitary
area, and for recreational or other facilities incidental or appurtenant
thereto, pursuant to and in accordance with article eighteen of the
constitution and this act. The terms "clearance, replanning,
reconstruction and rehabilitation" shall include renewal, redevelopment,
conservation, restoration or improvement or any combination thereof as
well as the testing and reporting of methods and techniques for the
arrest, prevention and elimination of slums and blight.
(d) "Civic project". A project or that portion of a multi-purpose
project designed and intended for the purpose of providing facilities
for educational, cultural, recreational, community, municipal, public
service or other civic purposes.
(e) "Industrial effectiveness project". A project or that portion of a
multi-purpose project designed and intended for the purpose of (i)
improving the productivity and competitiveness of an industrial firm or
a group of industrial firms through such means as, but not limited to,
the redesign of production facilities, the introduction of new
production processes and management systems, the expansion or
diversification of product lines, the development of new markets, and
labor and management cooperative efforts to enhance productivity; (ii)
implementing a corporate restructuring or turnaround plan for an
industrial firm; (iii) effecting the transfer of the ownership and
control of a viable industrial firm to its employees, managers or other
investors resident in the state; or (iv) enhancing the opportunity for
an industrial firm to create or retain jobs, thereby promoting fuller
employment and economic development in the state.
(f) "Small and medium-sized business assistance project". A project
designed and intended for the purpose of providing assistance to
industrial firms that employ five hundred or fewer employees within the
state on a full-time basis.
(g) "Infrastructure project". Capital improvements to publicly-owned
real property under the jobs for the new, New York bond act pursuant to
article fifteen of the economic development law involving site clearance
or preparation or the demolition, construction or reconstruction of
basic utilities, systems or facilities, which, while not used directly
for the production of goods or services, are required as the foundation
for or to promote, stimulate or support economic activity resulting in
the retention or creation of permanent private-sector jobs.
* NB Not implemented due to defeat of the Jobs for the new, New York
bond act in November, 1992
(7) "Project cost". The sum total of all costs incurred by the
corporation in carrying out all works and undertakings which the
corporation deems reasonable and necessary for the development of a
project. These shall include but are not necessarily limited to the
costs of all necessary studies, surveys, plans and specifications,
architectural, engineering or other special services, acquisition of
land and any buildings thereon, site preparation and development,
construction, reconstruction, rehabilitation, improvement and the
acquisition of such machinery and equipment as may be deemed necessary
in connection therewith (other than raw materials, work in process or
stock in trade); the necessary expenses incurred in connection with the
initial occupancy of the project; an allocable portion of the
administrative and operating expenses of the corporation; the cost of
financing the project, including interest on bonds and notes issued by
the corporation to finance the project from the date thereof to the date
when the corporation shall determine that the project be deemed
substantially occupied; and the cost of such other items, including any
indemnity and surety bonds and premiums on insurance, legal fees, fees
and expenses of trustees, depositories and paying agents for the bonds
and notes issued by the corporation; and relocation costs, all as the
corporation shall deem necessary.
(8) "Real property". Lands, structures, franchises and interests in
land, including lands under water and riparian rights, space rights and
air rights and any and all other things and rights usually included
within said term. Real property shall also mean and include any and all
interests in such property less than full title, such as easements,
incorporeal hereditaments and every estate, interest or right, legal or
equitable, including terms for years and liens thereon by way of
judgments, mortgages or otherwise, and also all claims for damages for
such real estate.
(9) "State". The state of New York.
(10) "State agency". Any officer, department, board, commission,
bureau, division, public corporation, agency or instrumentality of the
state.
(11) "Subsidiary". A corporation created in accordance with section
twelve of this act.
(12) "Substandard or insanitary area". The term "substandard or
insanitary area" shall mean and be interchangeable with a slum,
blighted, deteriorated or deteriorating area, or an area which has a
blighting influence on the surrounding area, whether residential,
non-residential, commercial, industrial, vacant or land in highways,
waterways, railway and subway tracks and yards, bridge and tunnel
approaches and entrances, or other similar facilities, over which air
rights and easements or other rights of user necessary for the use and
development of such air rights, to be developed as air rights sites for
the elimination of the blighting influence, or any combination thereof
and may include land, buildings or improvements, or air rights and
concomitant easements or other rights of user necessary for the use and
development of such air rights not in themselves substandard or
insanitary.
(13) "Municipality." Any county, city, town or village.
(14) "Local governing body". The board of supervisors, county
legislature, board of aldermen, common council, commission, or other
elective governing board or body now or hereafter vested by state
statute, charter or other law with jurisdiction to initiate and adopt
local law whether or not such local laws or ordinances require the
approval of the elective chief executive officer or other official or
body to become effective, and except that with respect to a city having
a population of one million or more the term "local governing body"
shall mean the board of estimate.
(15) "Public corporation". A municipal corporation, district
corporation, or public benefit corporation, as all such terms are
defined in section three of the general corporation law, or any agency
or instrumentality of the foregoing.
(16) "New community." A plan or undertaking for the development of
housing together with such civic, industrial and commercial facilities
and other ancillary facilities as the corporation may determine
necessary, including the implementation thereof through one or more
projects of the corporation and through such participation by private
enterprise as may be necessary or desirable to carry out the development
of such new community.
(17) "Eligible business". For purposes of section sixteen-a of this
act, a business that is resident in this state, and employs one hundred
or less persons on a full-time basis.
(18) "Regional corporation". For purposes of section sixteen-a of this
act, a not-for-profit or public benefit corporation or consortium of
such entities that has formed a not-for-profit corporation, that has
jurisdiction within at least two entire contiguous counties.
(19) "Minority business enterprise". A business enterprise which is at
least fifty-one percent owned, or in the case of a publicly-owned
business at least fifty-one percent of the common stock or other voting
interests of which is owned, by one or more minority persons and such
ownership interest is real, substantial and continuing. The minority
ownership must have and exercise the authority to independently control
the day-to-day business decisions of the entity. Minority persons shall
mean persons who are:
(a) Black;
(b) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban,
Central or South American descent of either Indian or Hispanic origin,
regardless of race;
(c) Asian and Pacific Islander persons having origins in the Far East,
Southeast Asia, the Indian sub-continent or the Pacific Islands; or
(d) American Indian or Alaskan Native persons having origins in any of
the original peoples of North America and maintaining identifiable
tribal affiliations through membership and participation or community
identification.
(20) "Women business enterprise". A business enterprise which is at
least fifty-one percent owned, or in the case of a publicly-owned
business at least fifty-one percent of the common stock or other voting
interests of which is owned, by United States citizens or permanent
resident noncitizens who are women, regardless of race or ethnicity, and
such ownership interest is real, substantial and continuing and such
women have and exercise the authority to independently control the day
to day business decisions of the enterprises.
(21) "Industrial firm". A manufacturing firm involved with extracting,
smelting, recovering, developing, preparing, compounding, converting,
assembling or producing in any manner minerals, raw materials, products
or substances of any kind or nature, and shall include facilities
related thereto for storage, warehousing or distribution, for research
and development or for the discovery of new, and the refinement of
known, substances, processes and products.
(22) "Eligible reservist". A member of a reserve component of the
armed forces ordered to active duty during a period of military
conflict.
(23) "Owner, manager or key employee". A person who:
(a) has at least a twenty percent ownership interest in the small or
medium-sized business; or
(b) is a manager responsible for the day-to-day operations of such
small or medium-sized business concern; or
(c) is an employee of such small or medium-sized business concern with
a significant responsibility whose duties cannot be assumed by another
person without substantial impairment to the economic health of the
business, as determined by the corporation.
(24) "Period of military conflict". A period:
(a) of war declared by the Congress; or
(b) of national emergency declared by the Congress or by the
President; or
(c) in which a member of a reserve component of the armed forces is
ordered to active duty pursuant to section 673b of title 10 of the
United States Code.
(25) "Upstate Empire State Development Corporation" shall be defined
for purposes of sections sixteen-q and sixteen-s of this act, as a
subsidiary of the urban development corporation established under
section twelve of this act.
(26) "Upstate Chairman" shall be defined for purposes of sections
sixteen-q and sixteen-s of this act, as the chairman of the upstate
empire state development corporation, a subsidiary of the urban
development corporation established under section twelve of this act.
(27) "Downstate" shall be defined by the chairman subject to approval
by the board of directors of the urban development corporation.
(28) "Upstate" shall be defined by the chairman, in consultation with
the chairman of the upstate empire state development corporation,
subject to approval by the board of directors of the urban development
corporation.
(29) "Upstate Agricultural Economic Development Project." For purposes
of section sixteen-s of this act, a project or that portion of a
multi-purpose project shall be designed and intended for the purpose of
establishing, maintaining, or expanding agricultural acreage or
operations, or for providing facilities and/or markets for the
production, manufacturing, processing, warehousing, laboratory
diagnostics, research, or distribution and sale of crops, livestock and
livestock products as defined in subdivision 2 of section 301 of the
agriculture and markets law. Such project costs may include, but not be
limited to, the cost of land, buildings, machinery, equipment, processed
or partially processed agricultural commodities, root stock, livestock,
other personal property, materials, working capital, or stock in trade
required to establish such project.
(30) "Energy conservation and efficiency projects." A project or that
portion of a multi-purpose project designed and intended for the purpose
of reducing energy consumption and improving energy efficiency of
building envelopes, building systems or manufacturing or industrial
systems by retrofitting or modernizing manufacturing, industrial or
commercial facilities. Energy conservation and efficiency projects may
include, but not be limited to: (a) energy audits performed by an energy
auditor approved by the New York state energy research and development
authority as defined in section eighteen hundred fifty-one of the public
authorities law; (b) insulation of the building structure or systems
within the building; (c) windows or doors, caulking or weather
stripping, multi-glazed windows or doors, heat absorbing or heat
reflective glazed and coated window or door systems, additional glazing,
reductions in glass area or other window and door system modifications
that reduce energy consumption; (d) automated or computerized energy
control systems; (e) heating, ventilating or air conditioning system
modifications or replacements; (f) replacement or modification of
lighting fixtures to increase the energy efficiency of the lighting
system without increasing the overall illumination of a facility, unless
an increase in illumination is necessary to conform to the applicable
state or local building code or nationally accepted standards for the
lighting system after the proposed modifications are made; (g) energy
recovery systems; (h) solar energy generating or heating and cooling
systems or other renewable energy systems; (i) cogeneration or combined
heat and power systems that produce steam, chilled water or forms of
energy such as heat, as well as electricity, for use primarily within a
building or complex of buildings; (j) energy conservation measures that
provide long-term operating cost reductions; and (k) maintenance and
operation of mechanical systems that provide long-term operating cost
reductions.
§ 4. New York state urban development corporation. (1) There is hereby
created the New York state urban development corporation. The
corporation shall be a corporate governmental agency of the state,
constituting a political subdivision and public benefit corporation. Its
membership shall consist of nine directors as follows: the
superintendent of financial services, the chairman of the New York state
science and technology foundation, and seven directors to be appointed
by the governor with the advice and consent of the senate. From the
seven directors appointed by him, the governor shall designate the
chairman of the corporation and two others who shall all serve at the
pleasure of the governor. Of the four remaining directors, one of such
directors first appointed by the governor after the effective date of
this subdivision as amended shall serve for a term ending January first
next succeeding his appointment, one of such directors shall serve for a
term ending one year from such date, one of such directors shall serve
for a term ending two years from such date, and one of such directors
shall serve for a term ending three years from such date. Their
successors shall serve for terms of four years each. Directors shall
continue in office until their successors have been appointed and
qualified. In the event of a vacancy occurring in the office of a
director by death, resignation or otherwise, the governor shall appoint
a successor with the advice and consent of the senate to serve for the
balance of the unexpired term. The governor shall appoint the president
of the corporation, with the advice and consent of the senate, who shall
be the chief executive officer of the corporation and who shall serve at
the pleasure of the governor. Such president may be one of the directors
appointed by the governor.
(1-a) The superintendent of financial services and the chairman of the
New York state science and technology foundation each may designate a
person from his department to represent him at all meetings of the
corporation from which such director may be absent. Any representative
so designated shall have the power to attend and to vote at any meeting
of the corporation from which the director so designating him is absent,
with the same force and effect as if the director designating him were
present and voting. Such designation shall be by written notice filed
with the chairman of the corporation by the director making the
designation. The designation of each such person shall continue until
revoked at any time by written notice to the chairman by the director
making the designation. Such designation shall not limit the power of
the director making the designation to attend and vote in person at any
meeting of the corporation.
(2) The directors, other than the chairman, shall serve without salary
or other compensation, but each director, including the chairman, shall
be entitled to reimbursement for actual and necessary expenses incurred
in the performance of his or her official duties. Anything to the
contrary contained herein notwithstanding, the president of the
corporation, whether or not he or she is a director, and the chairman if
he or she is not the president shall be entitled to receive such salary
as the directors may determine for their services as chief executive
officer and chairman respectively.
(3) Such directors other than the superintendent of financial
services, the chairman of the New York state science and technology
foundation, and any director who serves as president of the corporation
may engage in private employment, or in a profession or business. The
corporation, its directors, officers and employees shall be subject to
the provisions of sections seventy-three and seventy-four of the public
officers law.
(3-a) The state shall save harmless and indemnify any person who shall
have served as a director, officer or employee of the corporation
against financial loss or litigation expense arising in connection with
any claim, demand, suit or judgment, or the defense thereof, based on a
cause of action, whenever accrued, involving allegations that pecuniary
harm was sustained by any person as a result of any transaction of the
corporation taking place on or after the effective date of the New York
state project finance agency act. In the event any such claim, demand,
suit or judgment shall occur, a director, officer or employee of the
corporation shall be saved harmless and indemnified by the state under
this subdivision unless such individual is found by a final judicial
determination not to have acted in good faith, for a purpose which he
reasonably believed to be in the best interests of the corporation or
not to have had reasonable cause to believe that his conduct was lawful.
In any suit described in the first sentence of this subdivision, any
director, officer or employee made a party defendant to such suit shall
be entitled to be represented by private counsel of his choice;
provided, however, that the attorney general is authorized, as a
condition to indemnification of the fees and expenses of such
representation, to require that appropriate groups of such individuals
be represented by the same counsel; and provided further, that with the
approval of the attorney general or of a court (obtained by application
substantially as provided in section seven hundred twenty-five of the
business corporation law), indemnification for such fees and expenses
shall be paid from time to time during the pendency of such suit. The
provisions of this subdivision shall be in addition to and shall not
supplant any indemnification or other benefits heretofore or hereafter
conferred upon directors, officers and employees of the corporation by
section seventeen of the public officers law, by action of the
corporation, or otherwise. The provisions of this subdivision shall
inure only to directors, officers and employees of the corporation,
shall not enlarge or diminish the rights of any other party, and shall
not impair, limit or modify the rights and obligations of any insurer
under any policy of insurance.
(4) The directors of the corporation shall serve ex officio as
directors of the corporation for urban development and research of New
York, created by the New York state urban development and research
corporation act, and of the urban development guarantee fund of New
York, created by the urban development guarantee fund of New York act.
The chairman of the corporation shall serve as chairman of the
corporation for urban development and research of New York and of the
urban development guarantee fund of New York.
(5) Notwithstanding any inconsistent provisions of law, general,
special or local, no officer or employee of the state or of any civil
division thereof, shall be deemed to have forfeited or shall forfeit his
office or employment by reason of his acceptance of membership on the
corporation created by this section; provided, however, a director who
holds such other public office or employment shall receive no additional
compensation or allowance for services rendered pursuant to this act,
but shall be entitled to reimbursement for his actual and necessary
expenses incurred in the performance of such services.
(6) The governor shall appoint a business advisory council for urban
development, to advise and make recommendations to the corporation with
respect to development policies and programs and to encourage maximum
participation in projects of the corporation by the private sector of
the economy, including members of the council and firms and corporations
with which they are affliated. Such council shall consist of not more
than twenty-five members, who shall serve at the pleasure of the
governor, and who shall be broadly representative of commerce and
industry, the financial community and the construction and housing
industries. Such members shall serve without salary, but shall be
entitled to reimbursement for their actual and necessary expenses
incurred in the performance of their duties.
(7) The corporation shall establish one or more community advisory
committees to consider and advise the corporation upon matters submitted
to them by the corporation concerning the development of any area or any
project, and may establish rules and regulations with respect to such
committees. The corporation or its successor shall publish and maintain
a list of all community advisory committee members, and community
advisory committee meeting agendas, materials, and minutes on its
website. Meeting agendas and materials shall be posted on such website
at least one business day in advance of community advisory committee
meetings. All upcoming meeting times and locations shall be posted on
such website at least one week in advance. Community advisory committee
meetings shall be accessible for the public to view and attend live. The
members of such community advisory committees shall serve, at the
pleasure of the corporation, without salary, but shall be entitled to
reimbursement for their actual and necessary expenses incurred in the
performance of their duties. Notwithstanding any inconsistent provision
of law, general, special or local, no officer or employee of the state
or of any civil division thereof, shall be deemed to have forfeited or
shall forfeit his or her office or employment by reason of his or her
acceptance of membership on such community advisory committee.
(8) The governor may remove any director appointed by him or her for
inefficiency, neglect of duty or misconduct in office after giving him
or her a copy of the charges against him or her, and an opportunity to
be heard, in person or by counsel, in his or her defense, upon not less
than ten days' notice. If any such director shall be removed, the
governor shall file in the office of the department of state a complete
statement of charges made against such director and his or her findings
thereon, together with a complete record of the proceeding. The
foregoing provisions shall not apply in the case of the chairperson and
any other director who serves at the pleasure of the governor.
(9) The corporation and its corporate existence shall continue until
terminated by law, provided, however, that no such law shall take effect
so long as the corporation shall have bonds, notes and other obligations
outstanding, unless adequate provision has been made for the payment
thereof in the documents securing the same. Upon termination of the
existence of the corporation, all its rights and properties shall pass
to and be vested in the state.
(10) A majority of the directors of the corporation then in office
shall constitute a quorum for the transaction of any business or the
exercise of any power or function of the corporation, except as
otherwise provided in section sixteen, subdivision two, hereof. The
corporation may delegate to one or more of its directors, or its
officers, agents and employees, such powers and duties as it may deem
proper.
(11) The corporation shall take affirmative action in working with
construction firms, contractors and subcontractors, labor unions and
manufacturing and industrial firms, to the end that residents of areas
in which projects are to be located shall be afforded participation in
the construction work on projects of the corporation, and in the
business operations of tenants and occupants of industrial projects
undertaken by the corporation.
§ 5. Powers of the corporation. Except as otherwise limited by this
act, the corporation shall have power:
(1) To sue and be sued;
(2) To have a seal and alter the same at pleasure;
(3) To make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and functions under this
act;
(4) To make and alter by-laws for its organization and internal
management and, subject to agreements with noteholders or bondholders,
to make rules and regulations with respect to its projects, operations,
properties and facilities, which rules and regulations shall be filed
with the department of state in the manner provided by section one
hundred two of the executive law;
(5) To acquire, hold and dispose of personal property for its
corporate purposes;
(6) To appoint officers, agents and employees, prescribe their duties
and qualifications and fix their compensation;
(7) To acquire or contract to acquire from any person, firm,
corporation, municipality, federal or state agency, by grant, purchase,
condemnation or otherwise, leaseholds, real, personal or mixed property
or any interest therein; to own, hold, clear, improve and rehabilitate,
and to sell, assign, exchange, transfer, convey, lease, mortgage, or
otherwise dispose of or encumber the same;
(8) To create subsidiaries, as provided in section twelve of this act.
(9) To acquire, construct, reconstruct, rehabilitate, improve, alter
or repair or provide for the construction, reconstruction, improvement,
alteration or repair of any project.
(10) To arrange or contract with a municipality for the planning,
replanning, opening, grading or closing of streets, roads, roadways,
alleys or other places, or for the furnishing of facilities or for the
acquisition by a municipality of property or property rights or for the
furnishing of property or services in connection with a project.
(11) To sell, lease, assign, transfer, convey, exchange, mortgage, or
otherwise dispose of or encumber any project, and in the case of the
sale of any project, to accept a purchase money mortgage in connection
therewith; and to lease, repurchase or otherwise acquire and hold any
project which the corporation has theretofore sold, leased or otherwise
conveyed, transferred or disposed of.
(12) To grant options to purchase any project or to renew any leases
entered into by it in connection with any of its projects, on such terms
and conditions as it may deem advisable.
(13) To prepare or cause to be prepared plans, specifications, designs
and estimates of cost for the construction, reconstruction,
rehabilitation, improvement, alteration or repair of any project, and
from time to time to modify such plans, specifications, designs or
estimates.
(14) To manage any project, whether then owned or leased by the
corporation, and to enter into agreements with the state or any
municipality or any agency or instrumentality thereof, or with any
person, firm, partnership or corporation, either public or private, for
the purpose of causing any project to be managed.
(15) To provide advisory, consultative, training and educational
services, technical assistance and advice to any person, firm,
partnership or corporation, either public or private, in order to carry
out the purposes of this act.
(16) To lend or donate monies, whether secured or unsecured, to any
subsidiary corporation, and to purchase, sell or pledge the shares,
bonds or other obligations or securities thereof, on such terms and
conditions as the corporation may deem advisable.
(17) To make mortgage loans, secured by a first mortgage lien,
including temporary loans or advances, to any subsidiary corporation
which is a housing company, and to undertake commitments therefor. Any
such commitment, mortgage or bonds or notes secured thereby may contain
such terms and conditions not inconsistent with the provisions of this
act as the corporation may deem necessary or desirable to secure
repayment of its loan, the interest, if any, thereon and other charges
in connection therewith.
(18) Subject to the provisions of any contract with noteholders or
bondholders to consent to the modification, with respect to rate of
interest, time of payments of any installment of principal or interest,
security, or any other term, of any mortgage, mortgage loan, mortgage
loan commitment, contract or agreement of any kind to which the
corporation is a party.
(19) In connection with any property on which it has made a mortgage
loan, to foreclose on any such property or commence any action to
protect or enforce any right conferred upon it by any law, mortgage,
contract or other agreement, and to bid for and purchase such property
at any foreclosure or at any other sale, or acquire or take possession
of any such property; and in such event the corporation may complete,
administer, pay the principal of and interest on any obligations
incurred in connection with such property, dispose of, and otherwise
deal with such property, in such manner as may be necessary or desirable
to protect the interests of the corporation therein.
(20) To borrow money and to issue its negotiable bonds and notes and
to provide for the rights of the holders thereof.
(21) As security for the payment of the principal of and interest on
any bonds so issued and any agreements made in connection therewith, to
mortgage and pledge any or all of its projects, whether then owned or
thereafter acquired, and to pledge the revenues and receipts therefrom
or from any thereof, and to assign or pledge the lease or leases on any
portion or all of said projects and to assign or pledge the income
received by virtue of said lease or leases.
(22) To invest any funds of the corporation including funds held in
reserve or sinking funds, or any monies (including proceeds from the
sale of any bonds or notes of the corporation) not required for
immediate use or disbursement, at the discretion of the corporation, in
(a) obligations of the state or of the United States government, (b)
obligations the principal and interest of which are guaranteed by the
state or the United States government, (c) obligations of agencies and
instrumentalities of the state or of the United States, or (d)
certificates of deposit of banks or trust companies in this state,
secured by obligations described in clauses (a), (b) or (c) of this
subdivision.
(23) To procure insurance against any loss in connection with its
property and other assets and operations in such amounts and from such
insurers as it deems desirable.
(24) To engage the services of consultants on a contract basis for
rendering professional and technical assistance and advice.
(25) To contract for and to accept any gifts or grants or loans of
funds or property or financial or other aid in any form from the federal
government or any agency or instrumentality thereof, or from the state
or any agency or instrumentality thereof, or from any other source and
to comply, subject to the provisions of this act, with the terms and
conditions thereof.
* (26) To make loans, whether secured or unsecured, in connection with
the corporation's participation in a project (as defined in this act),
to any person or entity, whether public or private, and to issue
commitments for such loans, provided that such loans and commitments are
made or issued in compliance with guidelines established by the board of
directors of the corporation; to provide for the repayment of such loans
on terms and conditions that the directors of the corporation deem
advisable and to receive and hold real property or personal property as
security for the repayment of such loans.
* NB Repealed July 1, 2024
(27) To use a portion of appropriated funds generally designated as
high risk targeted investment funds to establish a loan fund to be used
to make loans to business enterprises located within empire zones
designated pursuant to article eighteen-B of the general municipal law.
(28) To do any and all things necessary or convenient to carry out its
purposes and exercise the powers given and granted in this act.
(29) Subject to any agreement with noteholders or bondholders, to
enter into agreements to pay annual sums in lieu of taxes to any
municipality or political subdivision of the state, in respect of any
real property which is owned by the corporation or any subsidiary
thereof and is located in such municipality or political subdivision.
(30) To provide priority assistance to projects involving industry
clusters. The term "industry cluster" shall mean a geographic
concentration of competitive firms or establishments in the same
industry that either have close buy-sell relationships with other
industries in the region, use common technologies, or share a
specialized labor pool that provides firms with a competitive advantage
over the same industry in other places.
§ 6. Sale or lease of land use improvement projects. (1) The
corporation may sell or lease for a term not exceeding ninety-nine years
all or any portion of the real or personal property constituting a land
use improvement project to any person, firm, partnership or corporation,
either public or private, upon such terms and conditions as may be
approved by the corporation, whenever the corporation shall find that
such sale or lease is in conformity with a plan or undertaking for the
clearance, replanning, reconstruction or rehabilitation of sub-standard
and insanitary areas in the municipality in which the project is
located. Such sale or lease may be made:
(a) to any housing company, without public bidding, public sale or
public notice;
(b) to any local development corporation, without public bidding,
public sale or public notice;
(c) to any other person, firm, partnership or corporation, without
public bidding or public sale, provided there is published in at least
one newspaper of general circulation in the municipality in which the
project is located a notice which shall include a statement of the
identity of the proposed purchaser or lessee and of his proposed use or
reuse of the land use improvement project area or applicable portion
thereof, the price or rental to be paid by such purchaser or lessee, all
other essential conditions of such sale or lease, and a statement that a
public hearing upon such sale or lease will be held before the
corporation at a specified time and place on a date not less than ten
days after such publication, and provided further that such public
hearing is held in accordance with such notice.
* § 6-a. Sale or lease of infrastructure projects. (1) Notwithstanding
the provisions of any general, special or local law, subject to any
agreement with noteholders or bondholders, the corporation may sell or
lease any infrastructure project, without public bidding or public sale,
for such price or rental and upon such terms as may be agreed upon
between the corporation and such purchaser or lessee, either prior to,
at the date of, or subsequent to the completion of the project by the
corporation, provided, however, that in the case of a lease, the term
thereof shall not exceed ninety-nine years. Where such contract for sale
or lease is entered into after the commencement of construction and
prior to the physical completion of the improvement to be conveyed or
leased, the corporation may complete the construction and development of
such improvement prior to the actual conveyance or lease.
(2) Except with respect to projects sold or leased to the state or any
agency or instrumentality thereof, to any municipality or agency or
instrumentality thereof, or to any public corporation, before any sale
or lease of all or a substantial part of a project as authorized by
subdivision one of this section is consummated, there shall be published
in at least one newspaper of general circulation in the municipality in
which the project is located a notice which shall include a statement of
the identity of the proposed purchaser or lessee, the price or rental to
be paid, all other essential conditions of such sale or lease, and a
statement that a public hearing upon such sale or lease will be held
before the corporation at a specified time and place on a date not less
than ten days after such publication, and such hearing shall be held in
accordance with such notice.
(3) The responsibilities of the corporation in connection with the
implementation of this section may include requesting and receiving
title to real property from the commissioner of general services
pursuant to section thirteen-a of this act. Such transfers shall be on
such terms as the commissioner of general services and the chairman of
the corporation shall determine, and shall, subject to any agreement
with noteholders and bondholders, include a reversionary interest to the
state and the terms on which the property may subsequently be
transferred.
* NB Not implemented due to defeat of the Jobs for the new, New York
bond act in November, 1992
§ 7. Sale or lease of residential projects. (1) The corporation may
sell or lease for a term not exceeding ninety-nine years a residential
project only to a housing company or to a municipality or housing
authority. It may enter into a contract for such sale or lease either
prior to, at the date of, or subsequent to the completion of the project
by the corporation. Where such contract for sale or lease is entered
into after the commencement of construction and prior to the physical
completion of the improvement to be conveyed or leased, the corporation
may complete the construction and development of such improvement prior
to the actual conveyance or lease.
(2) Any such sale or lease pursuant to subdivision one of this section
may be made without public bidding, public sale or public notice,
pursuant to such negotiated contract, agreement or lease and containing
such provisions, limitations, requirements, terms and conditions, as the
corporation, within its discretion, may determine to be necessary or
desirable.
§ 8. Sale or lease of industrial projects. (1) Notwithstanding the
provisions of any general, special or local law, subject to any
agreement with noteholders or bondholders, the corporation may sell or
lease any industrial project, without public bidding or public sale, for
such price or rental and upon such terms as may be agreed upon between
the corporation and such purchaser or lessee, either prior to, at the
date of, or subsequent to the completion of the project by the
corporation, provided, however, that in the case of a lease, the term
thereof shall not exceed ninety-nine years. Where such contract for sale
or lease is entered into after the commencement of construction and
prior to the physical completion of the improvement to be conveyed or
leased, the corporation may complete the construction and development of
such improvement prior to the actual conveyance or lease.
(2) Before any sale or lease of all or a substantial part of a project
as authorized by subdivision one of this section is consummated, there
shall be published in at least one newspaper of general circulation in
the municipality in which the project is located a notice which shall
include a statement of the identity of the proposed purchaser or lessee,
the price or rental to be paid, all other essential conditions of such
sale or lease, and a statement that a public hearing upon such sale or
lease will be held before the corporation at a specified time and place
on a date not less than ten days after such publication, and such
hearing shall be held in accordance with such notice; provided, however,
that if the corporation determines that trade secrets or other
confidential information about the prospective purchaser's or lessee's
business operations, products, processes or designs would otherwise be
revealed by such public notice and public hearing, the requirements of
this subdivision may be waived by unanimous vote of the directors of the
corporation.
§ 9. Sale or lease of civic projects. (1) Subject to any agreement
with noteholders or bondholders, the corporation may sell or lease for a
term not exceeding ninety-nine years any civic project to the state or
any agency or instrumentality thereof, to any municipality or agency or
instrumentality thereof, to any public corporation, or to any other
entity which is carrying out a community, municipal, public service or
other civic purpose.
(2) Any such sale or lease pursuant to subdivision one of this section
may be made without public bidding, public sale or public notice, upon
such terms and conditions as the corporation, within its discretion, may
determine to be necessary or desirable. The corporation may enter into a
contract for a sale or lease as authorized by subdivision one of this
section either prior to, at the date of, or subsequent to the completion
of the project by the corporation. Where such contract for sale or lease
is entered into after the commencement of construction and prior to the
physical completion of the improvement to be sold or leased, the
corporation may complete the construction and development of such
improvement prior to the actual conveyance or lease.
§ 9-a. Financial assistance for small and medium-sized business
assistance projects. The corporation may provide loans for small and
medium-sized business assistance projects for costs associated with:
(1) The renovation or rehabilitation of industrial plants that are
economically inefficient due to the need for changes in design,
construction, technology or production processes; the renovation or
rehabilitation of existing facilities for reuse as an industrial
facility; the acquisition of real property and related improvements; new
construction; working capital; and the acquisition of modern production
technology, including machinery, equipment and computerized design and
control systems, required to improve production processes, expand
existing or enter new markets, or to otherwise remain competitive. The
corporation shall determine the terms and interest rates of such loans,
except that no loan shall exceed fifty percent of project costs, or
seven hundred fifty thousand dollars, whichever is less, no loan shall
have an interest rate lower than three percent, and no loan shall have a
term that exceeds the estimated useful life of the asset;
(2) Site acquisition, construction, renovation or acquisition of
permanently installed equipment necessary to establish or expand a child
day care facility located on the work site of the industrial firm
sponsoring the child day care facility or at a proximate site where a
consortia of industrial firms are sponsoring the child day care
facility. Such loans shall be made upon a determination by the
corporation that such facility is necessary to improve or maintain the
productivity of the company or companies. Such loans shall only be made
for child day care facilities: (a) that will be used primarily by the
children of employees of the company or companies sponsoring the
facility; (b) that will not be operated for profit; (c) that demonstrate
an ability to obtain, from the appropriate governmental agencies, all
necessary approvals and licenses required to operate the facility; and
(d) that demonstrate an ability to prevent access by children to any
equipment in facilities which could be injurious to their health or
safety. The corporation shall determine the terms and interest rates of
such loans, except that no loan shall exceed sixty percent of project
costs, or two hundred fifty thousand dollars, whichever is less, no loan
shall have an interest rate lower than three percent, and no loan shall
have a term longer than ten years.
§ 9-b. For any positions opened as a result of assistance provided
pursuant to section nine-a of this act, industrial firms so assisted
shall first consider persons eligible to participate in federal job
training partnership act (P.L. 97-300) programs who shall be referred to
the industrial firm by administrative entities of service delivery areas
created pursuant to such act or by the job service division of the
department of labor.
§ 9-c. Rules and regulations. The corporation shall, assisted by the
commissioner of economic development and in consultation with the
department of economic development, promulgate rules and regulations in
accordance with the state administrative procedure act. Such rules and
regulations shall be consistent with the program plan required by
subdivision nineteen of section one hundred of the economic development
law.
§ 9-d. Reports and evaluation. (1) Reporting. The corporation shall,
on or before October 1, 1988 and on or before each October first
thereafter, submit a report to the governor and the legislature on the
operations and accomplishments of the small and medium-sized business
assistance program. The report to be submitted on October 1, 2005 and on
or before each October first thereafter shall be consolidated with the
annual program report of the corporation required under the provisions
of subdivision (b) of section thirty of this act, as amended.
(2) Evaluation. (a) The corporation shall submit to the director of
the budget, the chairperson of the senate finance committee and the
chairperson of the assembly ways and means committee an evaluation of
the small and medium-sized business assistance program prepared by an
entity independent of the corporation. Such an evaluation shall be
submitted by September 1, 2005 and by September first every four years
thereafter.
(b) Between evaluation due dates, the corporation shall maintain the
necessary records and data required to satisfy such evaluation
requirements and to satisfy information requests received from the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee between
such evaluation due dates.
§ 9-e. Creating a Puerto Rican and Latino business development center.
The corporation shall provide, with the assistance of the commissioner
of economic development and in consultation with such commissioner, a
Puerto Rican and Latino business development center for the purposes of
rendering technical assistance and market information to not-for-profit
service providers and the private businesses servicing Puerto Rican and
Latino communities.
§ 9-f. Special assistance for small and medium-sized businesses which
are adversely affected by the absence of eligible reservists ordered to
active duty with the armed forces. (1) In addition to loans for small
and medium-sized business assistance projects authorized by this act,
the corporation is hereby authorized to make loans to assist a small or
medium-sized business concern which is likely to suffer economic injury
as the result of the owner, manager or key employee of such small or
medium-sized business concern who is an eligible reservist being ordered
to active military duty during a period of military conflict. The
corporation shall determine the term and interest rate of such loans
except that no loan shall exceed one hundred fifty thousand dollars, no
loan shall have an interest rate greater than five percent and no loan
shall have a term that exceeds a number of years which in the opinion of
the corporation is necessary for the small or medium-sized business
concern to recover financially from the absence of such eligible
reservist. Any such loan shall be secured by a security agreement
chattel paper, loan agreement or such other instruments or documents
deemed necessary or convenient by the corporation to secure the loan. In
determining the economic need for a loan authorized by this section, the
corporation shall consider the decline in income or gross receipts of
the business during the period of active military duty of the eligible
reservist. Such loans shall be made in an expeditious manner to enable
the small or medium-sized business concern to recover forthwith from
such absence. Loans made pursuant to this section shall be used for
working capital by the small or medium-sized business concern. The
corporation shall render such other assistance and services as it deems
advisable and proper in connection with such loans and the purpose
therefor.
(2)(a) With respect to any loan granted to a small or medium-sized
business concern pursuant to this act, the corporation may temporarily
suspend the repayment obligation of any small or medium-sized business
concern if any person liable thereon is or if any owner, manager or key
employee is an eligible reservist called to active duty in the military
service subsequent to the disbursement of the proceeds of such loan and
such business concern has suffered or is likely to suffer economic
injury as a result of such order. The suspension, if approved, shall be
effective on the date the corporation is notified that the eligible
reservist has commenced active duty status or, at the election of the
corporation it shall be made effective at any time subsequent to the
date such eligible reservist entered active duty status, and shall
continue for ninety days after such person is discharged or released
from active duty.
(b) Within thirty days after the return to non-active duty status of
any person to whom this subdivision may apply, the corporation shall
arrange a meeting with the affected small or medium-sized business to
arrange repayment of the loan. The corporation is authorized to extend
the terms of any loan or to set a repayment schedule for such loans made
for a period of up to one year for each sixty days of active duty, but
not to exceed five years.
(c) If the corporation determines that such small or medium-sized
business concern meets the criteria of this subdivision, it may, in its
discretion, reduce or eliminate the assistance provided herein if it
determines such business has the financial ability to meet the terms and
conditions of the obligation without substantially disrupting business
operations. Any such determination shall be made only after affording
the applicant the opportunity to present information in person or
through others in support of the request for assistance.
(3) Nothing in this section shall preclude a small or medium-sized
business concern which is ineligible for assistance pursuant to the
provisions of this section from qualifying for any other assistance
pursuant to article 13 of the military law or the Federal Soldiers' and
Sailors' Civil Relief Act of 1940, as amended.
(4) The corporation is directed to liberally construe the provisions
of this section to benefit eligible small and medium-sized business
concerns in recovering from any demonstrated economic loss caused by the
active military service of the eligible reservist.
§ 10. Findings of the corporation. Notwithstanding any other provision
of this act, the corporation shall not be empowered to undertake the
acquisition, construction, reconstruction, rehabilitation or improvement
of a project unless the corporation finds:
(a) in the case of a residential project:
(1) That there exists, in the area in which the project is to be
located, or in an area reasonably accessible to such area, a need for
safe and sanitary housing accommodations for persons or families of low
income, which the operations of private enterprise cannot provide;
(2) That the project has been approved as a project of a housing
company pursuant to the provisions of the private housing finance law.
(b) in the case of an industrial project:
(1) That the area in which the project is to be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area, wherein there exists a condition of
substantial and persistent unemployment or underemployment;
(2) That the acquisition or construction and operation of such project
will prevent, eliminate or reduce unemployment or underemployment in
such area;
(3) That such project shall consist of a building or buildings which
are suitable for manufacturing, warehousing or research or other
industrial, business or commercial purposes.
(4) That adequate provision has been, or will be made for the payment
of the cost of the acquisition, construction, operation, maintenance and
upkeep of such project.
(5) That the acquisition and construction, proposed leasing, operation
and use of such project will aid in the development, growth and
prosperity of the state and the area in which such project is located;
(6) That the plans and specifications assure adequate light, air,
sanitation and fire protection.
(c) in the case of a land use improvement project:
(1) That the area in which the project is to be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area and tends to impair or arrest the sound
growth and development of the municipality;
(2) That the project consists of a plan or undertaking for the
clearance, replanning, reconstruction and rehabilitation of such area
and for recreational and other facilities incidental or appurtenant
thereto;
(3) That the plan or undertaking affords maximum opportunity for
participation by private enterprise, consistent with the sound needs of
the municipality as a whole.
(d) in the case of a civic project:
(1) That there exists in the area in which the project is to be
located, a need for the educational, cultural, recreational, community,
municipal, public service or other civic facility to be included in the
project;
(2) That the project shall consist of a building or buildings or other
facilities which are suitable for educational, cultural, recreational,
community, municipal, public service or other civic purposes;
(3) That such project will be leased to or owned by the state or an
agency or instrumentality thereof, a municipality or an agency or
instrumentality thereof, a public corporation, or any other entity which
is carrying out a community, municipal, public service or other civic
purpose, and that adequate provision has been, or will be, made for the
payment of the cost of acquisition, construction, operation, maintenance
and upkeep of the project;
(4) That the plans and specifications assure or will assure adequate
light, air, sanitation and fire protection.
(e) in the case of an industrial effectiveness project:
(1) That a feasibility study or productivity assessment exists
demonstrating the potential for future profitability of the firm
requesting financial assistance and such study or assessment has been
reviewed and approved by the commissioner of economic development;
(2) That for loans to implement a corporate restructuring or
turnaround plan, the management of the industrial firm requesting
assistance is capable and the firm has a sound business development plan
that includes measures to ensure labor and management cooperation and to
effect changes required to continue as a successful business;
(3) That the requested financial assistance is not available from
other public or private financing sources; and
(4) That the area in which the project is to be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area, wherein there exists a condition of
substantial and persistent unemployment or underemployment.
(f) in the case of a small and medium-sized business assistance
project:
(1) That the area in which the project will be located is a
substandard or insanitary area, or is in danger of becoming a
substandard or insanitary area, wherein there exists a condition of
substantial and persistent unemployment or underemployment;
(2) That the project demonstrates market, management and financial
feasibility and has a clear likelihood of success;
(3) That the industrial firm provides at least a ten percent equity
contribution and such contribution is not derived from other
governmental sources;
(4) That the requested financial assistance is not available from
other public or private financing sources on terms compatible with the
successful completion of the project;
(5) That the project will not result in the relocation of any
industrial firm from one municipality within the state to another
municipality, except under one of the following conditions: (i) when an
industrial firm is relocating within a municipality with a population of
at least one million where the governing body of such municipality
approves such relocation; or (ii) the corporation notifies each
municipality from which such industrial firm will be relocated and each
municipality agrees to such relocation; and
(6) That the project is not for the purpose of refinancing any portion
of the total project cost or other existing loans or debts of the
project sponsor or owner.
(g) in the case of all projects, that there is a feasible method for
the relocation of families and individuals displaced from the project
area into decent, safe and sanitary dwellings, which are or will be
provided in the project area or in other areas not generally less
desirable in regard to public utilities and public and commercial
facilities, at rents or prices within the financial means of such
families or individuals, and reasonably accessible to their places of
employment. Insofar as is feasible, the corporation shall offer housing
accommodations to such families and individuals in residential projects
of the corporation. The corporation may render to business and
commercial tenants and to families or other persons displaced from the
project area, such assistance as it may deem necessary to enable them to
relocate.
(h) in the case of all projects, the corporation shall state the basis
for its findings.
§ 11. Construction contracts. (1) Construction contracts let by the
corporation shall be in conformity with the applicable provisions of
section one hundred thirty-five of the state finance law, provided,
however, that construction contracts let by subsidiaries of the
corporation which are housing companies shall be governed by the
applicable provisions of the private housing finance law; provided
further, however, that in the case of industrial projects, whenever the
corporation determines that trade secrets or other confidential
information about the prospective project occupant's business
operations, products, processes or designs would be revealed by public
bidding, the requirements of section one hundred thirty-five of the
state finance law with respect to public bidding may be waived. In such
event, separate specifications shall be prepared for, and separate and
independent contracts shall be entered into, for the following three
subdivisions of work to be performed: (a) plumbing and gas fitting; (b)
steam heating, hot water heating, ventilating and air conditioning
apparatus; and (c) electric wiring and standard illuminating fixtures.
(2) The corporation may, in its discretion, assign contracts for
supervision and coordination to the successful bidder for any
subdivision of work for which the corporation receives bids. Any
construction contract awarded by the corporation shall contain such
other terms and conditions as the corporation may deem desirable. The
corporation shall not award any construction contract except to the
lowest bidder who, in its opinion, is qualified to perform the work
required and who is responsible and reliable. The corporation may,
however, reject any or all bids or waive any informality in a bid if it
believes that the public interest will be promoted thereby. The
corporation may reject any bid if, in its judgment, the business and
technical organization, plant, resources, financial standing, or
experience of the bidder justifies such rejection in view of the work to
be performed.
§ 12. Subsidiaries: how created. (1) The corporation shall have the
right to exercise and perform its powers and functions through one or
more subsidiary corporations. The corporation by resolution may direct
any of its directors, officers or employees to organize a subsidiary
corporation pursuant to either the business corporation law, the
not-for-profit corporation law or articles two, four or eleven of the
private housing finance law. Such resolution shall prescribe the
purposes for which such subsidiary corporation is to be formed.
Such corporation shall be deemed a subsidiary corporation whenever and
so long as (i) more than half of any voting shares of such subsidiary
are owned or held by the corporation, or (ii) a majority of the
directors, trustees or members of such subsidiary are designees of the
corporation.
(2) The corporation may transfer to any subsidiary corporation any
moneys, real or personal or mixed property or any project in order to
carry out the purposes of this act. Each such subsidiary corporation
shall have all the privileges, immunities, tax exemptions and other
exemptions of the corporation to the extent the same are not
inconsistent with the statute or statutes pursuant to which such
subsidiary was incorporated.
(3) Notwithstanding any provision of this act to the contrary, the
superintendent of financial services and the chairman of the New York
state science and technology foundation shall not serve as a director,
trustee or member of any such subsidiary corporation.
(4) No officer or director of the corporation shall receive any
additional compensation, either direct or indirect, other than
reimbursement for actual and necessary expenses incurred in the
performance of his duties, by reason of his serving as a member,
director, or trustee of any subsidiary corporation.
§ 13. Acquisition of real property. The corporation, upon making a
finding that it is necessary or convenient to acquire any real property
for its immediate or future use, may acquire such property in any lawful
manner, pursuant to the provisions of the eminent domain procedure law,
notwithstanding that such property may already be devoted to a public
use, nor shall such property thereafter be taken for any other public
use without the consent of the corporation.
Prior to the commencement of condemnation proceedings, the corporation
shall cause a survey and map to be made of the property to be condemned
and file the same in its office. There shall be annexed thereto a
certificate, executed by such officer or employee as the corporation may
designate, stating that the property described in such survey and map is
necessary for corporate purposes.
§ 13-a. Conveyance of state lands. The commissioner of general
services shall have power, in his discretion, from time to time to grant
and convey to the corporation, upon such terms and conditions including
consideration as the commissioner of general services may fix and
determine, unappropriated state lands, lands under water, abandoned
canal lands and salt springs lands which the corporation shall certify
to be necessary or convenient for its corporate purposes. Certification
shall be evidenced by a formal request from the President of the
corporation.
§ 14. Acquisition of real property from a municipality or an urban
renewal agency. (1) Notwithstanding anything to the contrary contained
in article fifteen or article fifteen-A of the general municipal law or
in any general, special or local law applicable to the sale of real
property by a municipality or an urban renewal agency, a municipality or
an urban renewal agency may, in addition to employing any other lawful
method of utilizing or disposing of any real property and appurtenances
thereto or any interest therein owned by such municipality or urban
renewal agency or acquired by such municipality or urban renewal agency
pursuant to article fifteen of article fifteen-A of the general
municipal law, sell, lease for a term not exceeding ninety-nine years,
or otherwise dispose of any such real property and appurtenances thereto
or any interest therein to the corporation for the effectuation of any
of the purposes of an urban renewal program, without public auction, or
sealed bids or public notice.
(2) Notwithstanding the provisions of any general, special or local
law or charter, any municipality, by resolution of its local governing
body, is hereby empowered without referendum, public auction, sealed
bids or public notice, to sell, lease for a term not exceeding
ninety-nine years, grant or convey to the corporation any real property
owned by it which the corporation shall certify to be necessary or
convenient for its corporate purposes. Any such sale, lease, grant or
conveyance shall be made with or without consideration and upon such
terms and conditions as may be agreed upon by such municipality and the
corporation. Certification shall be evidenced by a formal request from
the president of the corporation. Before any such sale, lease, grant or
conveyance may be made to the corporation, a public hearing shall be
held by the local governing body to consider the same. Notice of such
hearing shall be published at least ten days before the date set for the
hearing in such publication and in such manner as may be designated by
the local governing body.
§ 15. Special provisions relating to residential projects. (1)
Notwithstanding any provision of law to the contrary, whenever a
residential project is owned by or leased to a subsidiary which is a
limited profit housing company, or is sold or leased to a limited profit
housing company, such project shall be deemed to be a state-aided
project, as defined in section two of the private housing finance law,
unless such project is aided by a municipal mortgage loan, in which
event such project shall be deemed to be a municipally-aided project.
(2) Notwithstanding any provision of law to the contrary, but subject
to any agreement with noteholders or bondholders, any city, town or
village and any housing authority is hereby authorized to purchase or
lease for a term not exceeding ninety-nine years a residential project.
(3) Notwithstanding any other provision of this act, projects of a
subsidiary organized pursuant to articles two, four or eleven of the
private housing finance law shall be exempt from real property taxes to
the extent and in the manner provided by applicable law.
(4) In order to increase the availability of housing accommodations
for persons and families of low income, the corporation shall undertake
to utilize the state capital grant low rent assistance program, pursuant
to section forty-four-a of the private housing finance law, in
residential projects of the corporation.
(5) Notwithstanding any inconsistent provision of this act or of any
general or special law, no plan for a proposed residential project in a
town or incorporated village which has not been affirmed by the
corporation prior to May first, nineteen hundred seventy-three, shall be
affirmed if, within thirty days after the public hearing held pursuant
to subdivision two of section sixteen of this act or within thirty days
after June first, nineteen hundred seventy-three, whichever date is
later, the local governing body of such town or village submits in
writing to the corporation formal objections to the proposed residential
project, unless and until such objections are withdrawn and subject to
the following conditions and limitations:
(a) The foregoing shall not apply to residential projects initiated
after June first, nineteen hundred seventy-three, if such local
governing body has, prior to submission, either approved such plan or
executed any agreement with the corporation relating to such plan upon
which the corporation has relied in authorizing expenditures of funds or
contracts, unless such town or village reimburses the corporation for
all of its expenditures and indemnifies the corporation for liabilities
ensuing from cancellation of any contract, net of the proceeds of any
resale of property acquired by the corporation for such project.
(b) The corporation may affirm, in any event, plans for residential
projects in the new community known as Audubon, in the town of Amherst,
county of Erie or in the new community known as Lysander New Community,
in the town of Lysander, county of Onondaga, and the provisions of this
first paragraph of this subdivision shall not be applicable to any of
such projects.
§ 16. Cooperation with municipalities. (1) In effectuating the
purposes of this act, the corporation and community advisory committees
created pursuant to section four of this act shall work closely, consult
and cooperate with local elected officials and community leaders at the
earliest practicable time. The corporation shall give primary
consideration to local needs and desires and shall foster local
initiative and participation in connection with the planning and
development of its projects. Wherever possible, activities of the
corporation shall be coordinated with local urban renewal and other
community projects, and the corporation shall assist localities in
carrying out such projects. Consideration shall also be given to local
and regional goals and policies as expressed in urban renewal, community
renewal and local comprehensive land use plans and regional plans.
(2) Except with respect to a project consisting in whole or in part of
real property acquired by the corporation pursuant to section fourteen
of this act, before commencing the acquisition, construction,
reconstruction, rehabilitation, alteration or improvement of any
project: (a) upon adoption of the general project plan, the corporation
shall file a copy of such plan, including the findings required pursuant
to section ten of this act, in its corporate offices and in the office
of the clerk of any municipality in which the project is to be located.
Upon request, any other person shall be furnished with a digest of such
plan; (b) pursuant to authorization from the chief executive officer of
the corporation, which authorization may be given prior to the adoption
of such plan by the corporation, the corporation shall: (i) publish in
one newspaper of general circulation within the municipality, (ii)
provide to the chief executive officer of the municipality within which
the project is located, and (iii) in any city having a population of one
million or more, provide to any community board in which the project
will be located, a notice that such plan will be filed upon its adoption
by the corporation and that digests thereof will be available, which
notice shall also state that a public hearing will be held to consider
the plan at a specified time and place on a date not less than ten days
after such publication; (c) the corporation shall conduct a public
hearing pursuant to such notice, provided that such public hearing shall
not take place before the adoption or the filing of such plan by the
corporation; (d) upon a written finding of the chief executive officer
of the corporation that no substantive negative testimony or comment has
been received at such public hearing, such plan shall be effective at
the conclusion of such hearing; provided, however, that if any
substantive negative testimony or comment is received at such public
hearing, the corporation may, after due consideration of such testimony
and comment, affirm, modify or withdraw the plan in the manner provided
for the initial filing of such plan in paragraph (a) of this
subdivision.
(3) After consultation with local officials, as provided in
subdivision one of this section, the corporation and any subsidiary
thereof shall, in constructing, reconstructing, rehabilitating, altering
or improving any project, comply with the requirements of local laws,
ordinances, codes, charters or regulations applicable to such
construction, reconstruction, rehabilitation, alteration or improvement,
provided however, that when, in the discretion of the corporation, such
compliance is not feasible or practicable, the corporation and any
subsidiary thereof shall comply with the requirements of the state
building construction code, formulated by the state building code
council pursuant to article eighteen of the executive law, applicable to
such construction, reconstruction, rehabilitation, alteration or
improvement. In those circumstances where, in the discretion of the
corporation, such compliance with local laws, ordinances, codes,
charters or regulations is not feasible or practicable, and in the case
of any project where the corporation intends to acquire real property
pursuant to section thirteen of this act, the requirements of
subdivision two of this section shall be complied with; provided,
however, that (a) the corporation shall provide a copy of the plan to
the chief executive officer of any municipality within which the project
is to be located, the chairman of the planning board or commission of
any such municipality, or if there is no planning board or commission,
to the presiding officer of the local governing body and in any city
having a population of one million or more, to any community board in
which the project is located, and the public hearing to consider the
plan required pursuant thereto shall be held on thirty days notice
following adoption of the plan by the corporation; (b) any person shall
have the opportunity to present written comments on the plan within
thirty days after the public hearing; (c) any municipality within which
the project is to be located, by majority vote of its planning board or
commission, or in the event there is no planning board or commission, by
majority vote of its local governing body, may recommend approval,
disapproval or modification of the plan, which recommendation shall be
submitted in writing to the corporation within thirty days after such
hearing; and (d) after due consideration of such testimony and comments
and municipal recommendations, if any, the corporation may affirm,
modify or withdraw the plan in the manner provided for the initial
filing of such plan in paragraph (a) of subdivision two of this section,
provided, however that in the event any such municipality has
recommended disapproval or modification of the plan, as provided herein,
the corporation may affirm the plan only by a vote of two-thirds of the
directors thereof then in office. No municipality shall have power to
modify or change the drawings, plans or specifications for the
construction, reconstruction, rehabilitation, alteration or improvement
of any project of the corporation or of any subsidiary thereof, or the
construction, plumbing, heating, lighting or other mechanical branch of
work necessary to complete the work in question, nor to require that any
person, firm or corporation employed on any such work shall perform any
such work in any other or different manner than that provided by such
plans and specifications, nor to require that any such person, firm or
corporation obtain any other or additional authority, approval, permit
or certificate from such municipality in relation to the work being
done, and the doing of any such work by any person, firm or corporation
in accordance with the terms of such drawings, plans, specifications or
contracts shall not subject said person, firm or corporation to any
liability or penalty, civil or criminal, other than as may be stated in
such contracts or incidental to the proper enforcement thereof; nor
shall any municipality have power to require the corporation or any
subsidiary thereof, or lessee therefrom or successor in interest
thereto, to obtain any other or additional authority, approval, permit,
certificate or certificate of occupancy from such municipality as a
condition of owning, using, maintaining, operating or occupying any
project acquired, constructed, reconstructed, rehabilitated, altered or
improved by the corporation or by any subsidiary thereof. The foregoing
provisions shall not preclude any municipality from exercising the right
of inspection for the purpose of requiring compliance by any such
project with local requirements for operation and maintenance, affecting
the health, safety and welfare of the occupants thereof, provided,
however, that such compliance does not require changes, modifications or
additions to the original construction of such project.
(4) Each municipality or political subdivision, including but not
limited to a county, city, town, village or district, in which any
project of the corporation or of any subsidiary thereof is located,
shall provide for such project, whether then owned by the corporation,
any subsidiary thereof or any successor in interest thereto, police,
fire, sanitation, health protection and other municipal services of the
same character and to the same extent as those provided for other
residents of such municipality or political subdivision.
(5) Notwithstanding the provisions of any general, special or local
law or charter, any municipality or any public corporation is hereby
empowered to purchase or lease for a term not exceeding ninety-nine
years a civic project, upon such terms and conditions as may be agreed
upon by such municipality or such public corporation and the
corporation. No agreement for such purchase or lease shall be deemed to
be a contract for public work or purchase within the meaning of the
general municipal law. Nothing contained in this subdivision shall be
deemed to amend or supersede any other provision of law requiring a vote
of the qualified voters of any school district upon a proposed
expenditure of funds or incurring of indebtedness by such school
district.
(6) In carrying out any project, the corporation and its subsidiaries
shall be empowered to enter into contractual agreements with
municipalities and public corporations with respect to the furnishing of
any community, municipal or public facilities or services necessary or
desirable for such project, and any municipality or public corporation
is hereby authorized and empowered, notwithstanding any other law, to
enter into such contractual agreements with the corporation and its
subsidiaries and to do all things necessary to carry out its obligations
under the same.
§ 16-a. Regional revolving loan program. (1) The corporation shall
establish a fund to be known as the "regional revolving loan trust fund"
and shall pay into such fund any monies made available to the
corporation for such fund from any source. The monies held in or
credited to the fund shall be expended solely for the purposes set forth
in this section. The corporation shall not commingle the monies of such
fund with any other monies of the corporation or any monies held in
trust by the corporation.
(2) The corporation shall allocate any monies made available for such
fund for the purpose of making grants to regional corporations. The
grants shall be allocated as follows:
(a) fifty percent divided equally among the regions;
(b) fifty percent according to a formula weighted in favor of those
regions with the greatest levels of economic distress as determined by
poverty rates, number of persons receiving public assistance,
unemployment rates, rate of employment decline and such other indicators
of economic distress as the corporation deems appropriate; and
(c) in the event a regional corporation advises the corporation that
it does not require all or a portion of the funds to be distributed
pursuant to this subdivision, such funds shall be re-distributed by the
corporation equally among the other regional corporations.
(3) In accordance with the rules and regulations of the corporation,
each regional corporation shall establish two special accounts for
monies received by the regional corporation pursuant to the provisions
of this section. The grant monies received from the corporation,
earnings on such monies, and any principal repayments shall be deposited
in a loan fund account; any interest earned by the regional corporation
on loans will be deposited in a separate interest repayment account. A
regional corporation shall be authorized to provide financing assistance
to eligible projects. Any interest earned from its loans may be used by
a regional corporation for the cost of administering the programs
authorized by this section.
(3-a) Notwithstanding subdivision three of this section, where
applicable, the corporation is authorized to enter into agreements as
may be necessary for the administration and reporting of funds repaid,
received, expended or collected in a manner consistent with the
provisions in section sixteen-t of this act. The use of such funds by
the corporation shall be consistent with the terms, conditions and
restrictions set forth in subdivision four of this section, to provide
financial assistance to eligible regional corporations as defined in
subdivision eighteen of section three of this act. Outstanding expenses,
loans and other obligations executed prior to the effective date of this
subdivision shall be subject to the terms and conditions of the original
contract or contracts.
(4) Regional corporations shall be selected by the corporation from
among eligible applicants to administer a regional revolving loan
program. An eligible applicant shall:
(a) represent at least two entire contiguous counties;
(b) have available to it staff with sufficient expertise to analyze
applications for financial assistance, to regularly monitor financial
assistance to clients, and have made arrangements to provide management
or technical assistance to clients;
(c) have an effective plan to market its services to small businesses
through such entities as chambers of commerce, industry trade
associations, banks, local development corporations, community based
organizations and industrial development agencies; and
(d) have established a loan committee composed of five or more persons
experienced in commercial lending or in the operation of a for-profit
business and a staff person of the regional office of the department of
economic development. Such loan committee shall review every application
to the regional corporation for financial assistance pursuant to this
section, shall determine the feasibility of the transaction proposed in
the application and shall recommend to the board of directors or other
governing body of the regional corporation such action as the committee
deems appropriate.
(5) Applications to the corporation for certification or
recertification as a regional corporation shall:
(a) describe the applicant corporation, including its organization,
membership, loan committee, staff, and sources of other funds, if any;
(b) identify the geographic region to be served;
(c) explain the methods and criteria to be used in determining firms
eligible for financial assistance from the regional revolving loan
program;
(d) describe the means for coordinating financial assistance available
from the regional revolving loan program with financial assistance
available from other public funding sources within the region and how
such program will be used to leverage private financing for projects;
(e) at any time, the corporation may consider proposals to reconfigure
geographic areas served by regional corporations; and
(f) contain such other information as the corporation deems
appropriate.
(6) The corporation shall select, from among eligible applicants,
regional corporations to administer revolving loan programs, on the
basis of:
(a) the ability of the regional corporation to administer the
financial assistance programs authorized under this section;
(b) the extent of coordination with other publicly supported financial
assistance programs available within the region represented by the
regional corporation;
(c) the degree of public and private support within the region for the
applicant regional corporation; and
(d) the ability of the regional corporation to provide financial and
other assistance to businesses located in distressed areas within the
region.
(6-a) The corporation shall, every five years, recertify that each
regional corporation has complied with the terms and conditions of this
section. In the event a regional corporation is not recertified, or its
certification is withdrawn pursuant to subdivision nineteen of this
section, then the corporation shall give written notice to such regional
corporation which shall thereafter neither make new loans nor undertake
new obligations except upon written approval of the corporation. The
corporation may thereafter certify another regional corporation in the
manner provided in this section for the selection of regional
corporations. Upon the certification of a successor regional
corporation, all remaining loan funds, records and accounts of the
regional corporation not recertified shall be transferred to the
corporation and the regional corporation not recertified shall cease to
function pursuant to this section. The corporation shall transfer
returned funds to a successor regional corporation, or in the event no
successor regional corporation is formed, equally to other existing
regional corporations.
(7) A regional corporation certified by the corporation shall use the
funds received from the corporation, subject to the terms, conditions
and restrictions set forth in this section, to provide financial
assistance to eligible businesses as defined in subdivision seventeen of
section three of this act, for projects that demonstrate a substantial
likelihood of providing increases in net new permanent jobs or retaining
jobs in businesses that need such financial assistance to remain viable.
(8) The decision to approve or reject an application for financial
assistance pursuant to the provisions of this section shall be made by a
majority of the directors of the regional corporation, and such decision
shall be final. No member of the board or other governing body of a
regional corporation shall participate in a decision on a project
application when such member is a party to or has a financial interest
in such project. Any member who cannot participate in a decision on a
project application for such reason shall not be counted as a member of
the board or other governing body for purposes of determining the number
of members required for a majority vote on such application.
(9) No employee or officer of any regional corporation shall be a
party to or have any financial interest in any project that receives
financial assistance pursuant to this section.
(10) A regional corporation, in approving applications for financial
assistance, shall give priority to projects:
(a) that will provide increases in net new permanent jobs;
(b) located in economically distressed areas as defined by the
corporation or employing persons who live in such areas;
(c) of minority or women-owned enterprises or enterprises owned by
dislocated workers, such workers as defined in the Workforce Investment
Act (P.L. 105-220); and
(d) of businesses in the early stages of development that have been
denied access to credit.
(11) The funds allocated to each regional corporation pursuant to this
section may be used to guarantee the repayment of a working capital loan
provided by a banking organization to finance an eligible project.
Guarantees may be provided for up to ninety percent of the required
total project financing, provided that no more than one hundred thousand
dollars may be guaranteed for any project. Guarantees may be made for
the following types of financing: short and medium term loans for
working capital, revolving lines of credit, and seasonal inventory and
accounts receivable loans. Guarantees may be made for up to ninety
percent of the required total financing up to a maximum of one hundred
fifty thousand dollars for interim financing where another lender or
guarantor will provide permanent financing within one hundred eighty
days. In no event may a loan guarantee be for a term longer than five
years. Any loan made by a banking organization that is guaranteed
pursuant to this subdivision shall be secured by a security agreement,
chattel paper, loan agreement, or such other instruments or documents
deemed necessary or convenient by the regional corporation to secure the
loan. Any guarantee made pursuant to this subdivision shall be backed by
a minimum reserve within the account established by each regional
corporation of at least twenty-five percent of the amount guaranteed
that is outstanding.
(11-a) A regional corporation, in addition to receiving funds as
provided in this section, may also apply for and accept funds from any
other source for the purpose of furthering its goals and objectives.
Such funds may be used in the same manner as funds received from the
corporation to carry out the purposes of this section.
(12) The funds of each regional corporation derived pursuant to this
section may be used to provide loans for working capital for eligible
projects; provided that the amount of the loan does not exceed ninety
percent of the total project cost, or one hundred thousand dollars,
whichever is less. The interest rate and the terms on such loans shall
be determined by the regional corporation, but in no event shall the
interest rate be less than five percent. The term of any loan shall not
exceed five years. All loans shall be secured by lien positions on
collateral at the highest level of priority that can accommodate the
borrower's ability to raise sufficient debt and equity capital for the
project.
(13) A regional corporation shall not provide any financial assistance
authorized by this section unless the following conditions are met:
(a) the applicant has demonstrated that there is little prospect of
obtaining the project financing requested from other public sources of
funding within the region, including local revolving loan funds, and
that there is little prospect of obtaining adequate project financing
from private sources of capital, or in the case of a loan guarantee,
that there is little prospect of obtaining project financing without the
guarantee; except that in the case of local revolving loan funds,
financial assistance from the regional revolving loan fund account may
be provided for a project in conjunction with financial assistance from
a local revolving loan fund, provided that assistance from the regional
revolving loan fund is no greater than that provided by the local
revolving loan fund, and that a project qualifying for financial
assistance available from a local revolving loan fund is not denied such
assistance;
(b) the applicant has a minimum equity interest of at least ten
percent in the business or project;
(c) there is a reasonable prospect of repayment;
(d) the project is located in the region represented by the regional
corporation;
(e) the project will comply with any applicable environmental rules or
regulations;
(f) the applicant has certified that it will not discriminate against
any employee or any applicant for employment because of race, religion,
color, national origin, sex, or age;
(g) a staff member or a representative of the regional corporation
acting in an official capacity has personally visited the project site
and/or the applicant's place of business; and
(h) financial commitments for the project have been obtained from
other public and private sources.
(14) Grants made by the corporation pursuant to this section shall not
be made available for:
(a) projects that would result in the relocation of any business
operation from one municipality within the state to another, except
under one of the following conditions: (i) when a business is relocating
within a municipality with a population of at least one million where
the governing body of such municipality approves such relocation; or
(ii) the regional corporation notifies each municipality from which such
business operation will be relocated and each municipality agrees to
such relocation;
(b) projects of newspapers, broadcasting or other news media; medical
facilities, libraries, community or civic centers; or public
infrastructure improvements;
(c) refinancing any portion of the total project cost or other
existing loans or debts of an applicant, except for the purpose of
transferring to the employees or to other local interests ownership of a
company that would otherwise depart from or cease or substantially
reduce operations in the state;
(d) providing funds, directly or indirectly, for payment,
distribution, or as a loan, to owners, partners or shareholders of the
applicant enterprise, except as ordinary income for services rendered;
and
(e) retail projects, except where the regional corporation finds there
will be an increase in net new permanent jobs.
(15) A regional corporation may charge application, commitment and
loan guarantee fees pursuant to a schedule of fees adopted by the
regional corporation and approved by the corporation.
(16) The regional corporations shall submit annual reports for the
previous fiscal year to the corporation describing the financial
assistance provided pursuant to this section, including: the number of
projects assisted; the amount and type of assistance provided; a
description of the projects; the number of jobs created or retained; the
status of outstanding loans, guarantees, earnings and account balances;
and such other information as the corporation may require.
(17) The corporation shall, assisted by the commissioner of economic
development and in consultation with the department of economic
development, promulgate rules and regulations in accordance with the
state administrative procedure act setting forth procedures to be
followed by, and the responsibilities and obligations of, regional
corporations and the corporation. Such rules and regulations shall be
consistent with the program plan required by subdivision nineteen of
section one hundred of the economic development law.
(18) For any positions opened as a result of assistance provided in
this section, businesses so assisted shall first consider unemployed or
low income individuals eligible to participate in programs funded
through the Workforce Investment Act (P.L. 105-220) who shall be
referred to the business by local workforce investment boards created
pursuant to such act or by the job service division of the department of
labor.
(19) The corporation shall annually conduct an audit of each regional
corporation to ensure conformity of all aspects of program
administration and of financial assistance transactions with the
substantive and procedural provisions of this section. In the event that
the corporation finds instances of substantive noncompliance by a
regional corporation with any of the provisions of this section and such
instances were, or should have been, known to be in noncompliance, the
regional corporation shall return, within thirty days, upon demand by
the corporation, all uncommitted grant funds on hand and provide an
accounting of the loans currently outstanding.
The corporation may withdraw a regional corporation's certification:
(a) when a member of a board of directors or other governing body, an
officer or an employee of said regional corporation is party to or has
financial interests in loan projects;
(b) when said regional corporation fails to comply with the
requirements for project loans pursuant to this section; or
(c) when a regional corporation makes no loans within the previous
fiscal year and there is more than one hundred thousand dollars
remaining in its loan fund account.
The corporation shall transfer funds returned from a decertified
regional corporation to a successor regional corporation, or, if there
be none, distribute such funds equally among other existing regional
corporations. Outstanding loans and other obligations payable to such a
decertified regional corporation shall be assigned to its successor
regional corporation, or to the corporation or an agent designated by
the corporation upon such terms and conditions as the corporation shall
determine.
(20) Reporting. (a) The lending organization shall submit to the
corporation annual reports stating: the number of program loans made;
the amount of program funding used for loans; the use of loan proceeds
by the borrower; the number of jobs created or retained; the status of
each outstanding program loan, including fund balance; and such other
information as the corporation may require.
(b) The corporation shall, on or before October 1, 1988 and on or
before each October first thereafter, submit a report to the governor
and the legislature on the operations and accomplishments of the
regional revolving loan program. Such report shall include a summary of
the information contained in the reports submitted pursuant to
subdivision sixteen of this section and of the results of the audits
performed by the corporation pursuant to subdivision nineteen of this
section, and shall set forth the status of the regional revolving loan
program for the previous fiscal year, including grants to the regional
corporations, earnings and account balances as reported to the
corporation. The report to be submitted on October 1, 2005 and on or
before each October first thereafter shall be consolidated with the
annual program report of the corporation required under the provisions
of subdivision (b) of section thirty of this act, as amended.
(c) Beginning April 1, 2019, the corporation shall publish on its
website the information contained in the annual reports required under
paragraphs (a) and (b) of this subdivision in aggregate form omitting
borrower identifiable information.
(21) Evaluation. (a) The corporation shall submit to the director of
the division of the budget, the chairperson of the senate finance
committee, and the chairperson of the assembly ways and means committee
an evaluation of this program prepared by an entity independent of the
corporation. Such evaluation shall be submitted by September 1, 2005 and
by September first every four years thereafter.
(b) Between evaluation due dates, the corporation shall maintain the
necessary records and data required to satisfy such evaluation
requirements and to satisfy information requests received from the
director of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways and means committee between
such evaluation due dates.
(22) The corporation shall recertify existing regional corporations
or, in the event a regional corporation's certification has been
withdrawn, seek successor corporations among eligible applicants after
April first, two thousand two.
§ 16-b. Job retention and defense industry working capital loan
program. (1) Program established. The corporation shall establish the
job retention and defense industry working capital loan program for the
purpose of establishing an economic development working capital
revolving loan fund to be administered by the corporation. Such fund
shall be used to provide financial assistance in the form of working
capital loans or loan guarantees to companies at imminent risk of
reducing employment including, but not limited to, companies in the
defense sector or in the form of grants for the benefit of communities
whose employment is or could be impacted by a planned or potential major
military base closing and/or downsizing or for the benefit of
communities whose employment is impacted by the downsizing of a
community's major employer or employers including, but not limited to,
communities impacted by cutbacks in defense contracts.
(2) Application criteria. In addition to such other criteria as the
corporation may adopt in rules and regulations for the consideration of
applications for loans or loan guarantees pursuant to subdivision one of
this section, the corporation shall:
(a) determine that the company is unable to obtain sufficient funding
on reasonable terms from other public or private sources to permit the
company's planned investment to proceed without the required assistance;
(b) give priority to those applications for assistance from companies
located in highly distressed areas as defined pursuant to subdivision
(a) of section nine hundred fifty-eight of article eighteen-b of the
general municipal law;
(c) consider whether the loan or loan guarantee will result in a
reasonable likelihood of success in meeting the purposes for which it
was sought by the applicant company;
(d) assess the demonstrated need for such assistance, established by a
showing of a short-term lack of liquidity of an existing solvent
business;
(e) request from a company a commitment to a business plan to turn
around the financial condition of the business;
(f) expect the existence of a completed company evaluation, or
commitment to undertake such an evaluation, by the industrial
effectiveness program, or its equivalent thereof; and
(g) require companies receiving assistance pursuant to this section to
first consider for any new position opened as a result of assistance,
persons eligible to participate in federal job training partnership act
programs (P.L. 97-3400) (29 U.S.C.A. SS 801 seq.) who shall be referred
to the company by administrative entities of service delivery areas
created pursuant to such act by the job service division of the
department of labor.
(3) Funds. The fund shall consist of such amounts as may be
appropriated, any repayment of the principal amount of any loan made
from the fund, and any interest earned by the corporation from the
investment of moneys of the fund.
(4) Nonapplication of certain provisions. The provisions of section
ten and subdivision two of section sixteen of this act shall not apply
to assistance provided under this program.
(5) Reports. The chairman of the corporation shall submit to the
director of the budget, the speaker of the assembly and the temporary
president of the senate an evaluation of the effectiveness of the
program prepared by an entity independent of the corporation. The
corporation shall select the program evaluator through a request for
proposal process. Such evaluation shall determine whether the assistance
provided has enhanced the economic conditions of assisted companies or
communities, and shall make recommendations for improvements which would
make the program more effective. Such evaluation shall be submitted by
September first, nineteen hundred ninety-five and September first every
two years thereafter.
§ 16-c. Minority- and women-owned business development and lending
program.
(1) Minority- and women-owned business development and lending
program.
(a) There is hereby created a minority- and women-owned
business development and lending program for the purpose of providing
financial and technical assistance to minority and women-entrepreneurs.
(b) For the purposes of this section the following words or terms
shall mean as follows:
(i) "minority-owned business enterprise" or "minority-owned business"
shall mean the same as "minority business enterprise" as defined in
subdivision three of section two hundred ten of the economic development
law.
(ii) "women-owned business enterprise" or "women-owned business" shall
mean the same as "women-owned business enterprise" as defined in
subdivision five of section two hundred ten of the economic development
law.
(iii) "incubator" shall mean a facility providing low-cost space,
technical assistance and support services, including, but not limited
to, central services shared by tenants of the facility, to minority- and
women-owned business enterprises.
(c) Assistance shall not be provided under this section for:
(i) the purchase or rehabilitation of real property for speculative
purposes;
(ii) payment of any tax or employee benefit arrearage;
(iii) residential construction, renovation or development
construction, except for assistance to minority and women contractors
under subdivision four of this section;
(iv) educational institutions and proprietary education firms, except
licensed child care facilities;
(v) hospitals or residential health care facilities;
(vi) overnight lodging facilities;
(vii) refinancing of commercial or business related debt or equity
invested in a commercial or business related enterprise or commercial or
business related project, unless the corporation finds the terms of the
original debt to be unreasonable as provided in subparagraph (ix) of
paragraph (d) of this subdivision.
(d) The corporation is authorized to:
(i) establish programs in conjunction with locally, and community
based entities to decentralize lending for small loans and loans to
start up minority- and women-owned businesses;
(ii) establish a comprehensive program for minority and women
contractors, which may include assistance through loans, bonding
assistance and technical assistance;
(iii) establish a program to provide loans to established minority-
and women-owned businesses and for minority- and women-owned businesses,
including loans to such businesses seeking to acquire or expand a
franchise;
(iv) provide loan guarantees to financial institutions and make linked
deposits into federally and state chartered credit unions for the
purpose of encouraging private financial institutions to make loans to
minority- and women-owned businesses;
(v) establish a program to create incubators to assist small and high
risk minority- and women-owned businesses to grow and prosper;
(vi) promote equity investment in minority- and women-owned
businesses;
(vii) establish a comprehensive technical assistance program in
cooperation with the department of economic development to assist
minority- and women-owned businesses and potential minority and
women-entrepreneurs;
(viii) notwithstanding any provision of law to the contrary, establish
a minority- and women-owned business investment fund to provide critical
financial support to foster the development of new and emerging ideas
and products of minority- and women-owned business enterprises as well
as to promote the long-term financial performance and success of early
stage enterprises that are minority- and women-owned start-ups. The
selection of an eligible applicant and beneficiary companies for the
minority- and women-owned business investment fund shall be selected by
the process established pursuant to subdivisions two through four of
section sixteen-u of this act. Minority- or women-owned business
enterprises who participate in such minority- and women-owned business
investment fund under this subdivision shall not be precluded from
qualifying for any other assistance, grant or loan made available from
the state; and
(ix) provide for the refinancing of commercial or business related
debt or equity invested in an enterprise or project, provided that the
corporation determines the terms of the original debt to be
unreasonable. The applicant must submit a written justification to the
corporation for each loan explaining why the current loan is not on
reasonable terms. Unreasonable terms of debt may include but are not
limited to:
(1) a demand or balloon maturity feature in the existing note;
(2) the current maturity is not appropriate for the original purpose
of the loan;
(3) the existing debt being refinanced is on a revolving line or a
credit card;
(4) the interest rate is deemed unreasonable by the corporation; or
(5) the loan is over-collateralized.
(2) Minority and women revolving loan trust fund. For the purpose of
establishing programs in conjunction with locally and community based
entities to decentralize lending for small loans and loans to start up
minority- and women-owned businesses, the corporation shall establish
minority and women revolving loan trust fund accounts and related
administrative expenses trust fund accounts.
(a) Each minority and women revolving loan trust fund account shall be
administered by one or more of the following types of entities that
provide services to community businesses and have as one of their
primary purposes the provision of services and assistance to minority-
and women-owned businesses:
(i) empire zone capital corporations established pursuant to section
nine hundred sixty-four of the general municipal law;
(ii) community-based local development corporations or industrial
development agencies that serve a municipality in which an empire zone
has been established pursuant to article eighteen-B of the general
municipal law and have as their primary purpose assistance to minority-
and women-owned businesses located or to be located in such empire zone;
or
(iii) local and community development corporations, industrial
development agencies, or other not-for-profit entities, representative
of the community.
(b) To be eligible to administer a minority and women revolving loan
trust fund account, the entity must also: (i) have staff with sufficient
expertise to analyze applications for financial assistance, to regularly
monitor financial assistance to clients, and to provide management or
technical assistance to clients; and (ii) have established a loan
committee composed of six or more persons experienced in business
management, commercial lending or in the operation of a for-profit
business, at least one-half of whom shall be experienced in commercial
lending, at least one-third of whom shall be minority persons and at
least one-third of whom shall be women. Such loan committee shall review
every application, determine the feasibility of the proposed project and
the likelihood of repayment of the requested financing and shall
recommend to the governing body of the entity such action on the
application as the loan committee deems appropriate. The corporation
shall identify entities eligible to administer minority and women
revolving loan trust fund accounts through a competitive statewide
request for proposal process.
(c) Any entity selected to administer a minority and women revolving
loan trust fund account shall be eligible to draw funds from the account
as needed to provide the following types of financial assistance to
minority- and women-owned businesses upon certification to and
acceptance by the corporation that such assistance complies with rules
and regulations promulgated by the corporation: (i) working capital
loans, provided that the amount of the loan does not exceed thirty-five
thousand dollars and the term of the loan does not exceed five years;
and (ii) loans for the acquisition and/or improvement of real property
and for the acquisition of machinery and equipment provided that the
amount of the loan does not exceed fifty thousand dollars and the term
of the loan does not exceed the useful life of the equipment or
property.
(d) (i) Notwithstanding any provision of law to the contrary, the
corporation may establish an administrative expenses trust fund account
for the benefit of each entity selected to administer a minority and
women revolving loan trust fund account. The initial deposit of funds to
an administrative expenses trust fund account shall be an amount
determined by the corporation but shall not exceed twenty-five thousand
dollars.
(ii) An entity selected to administer a minority and women revolving
loan trust fund account may use the funds in the administrative expenses
trust fund account for costs incurred by it in the start up and
administration of the financial assistance program authorized pursuant
to this subdivision.
(iii) The corporation shall deposit into each administrative expenses
trust fund account:
(A) all income earned from the moneys on deposit in the corresponding
minority and women revolving loan trust fund account during the first
year of the entity's administration of said account; and
(B) beginning with its second year in administering a minority and
women revolving loan trust fund account, said amounts may be used for
costs incurred by the entity in administering the minority and women
revolving loan trust fund account; and
(C) repayments of interest on loans made from the corresponding
minority and women revolving loan trust fund account.
(iv) Funds from the administrative expenses trust fund account may be
used for costs incurred at any time by an administering entity in its
administration of a minority and women revolving loan trust fund account
pursuant to this section.
(v) Funds deposited in an administrative expenses trust fund account
shall be disbursed by the corporation to the entity that administers the
corresponding minority and women revolving loan trust fund account on a
periodic basis and shall be expended by the entity in accordance with an
annual budget and any updates of same, approved by the corporation.
(e) Any entity selected to administer a minority and women revolving
loan trust fund account shall pay to the corporation for deposit any
repayments received in connection with financial assistance provided
from its account. Payments consisting of the repayment of the principal
amount of a loan shall be deposited by the corporation into the minority
and women revolving loan trust fund account from which the loan was
made. The interest earned by the corporation from the investment of
moneys in each minority and women revolving loan trust fund account
during and after the second year of a selected entity's administration
of said account shall be deposited by the corporation into the
corresponding minority and women revolving loan trust fund account and
used to provide the financial assistance to minority- and women-owned
businesses as authorized pursuant to this section.
(f) The provisions of subdivisions eight, nine, and fourteen through
nineteen of section sixteen-a of this act pertaining to the regional
revolving loan trust fund shall also be applicable to the minority and
women revolving loan trust fund, provided that: where the term "regional
corporation" appears therein it shall be interpreted to mean an entity
selected to administer a minority and women revolving loan trust fund
account, and "regional revolving loans trust fund" shall mean a minority
and women revolving loan trust fund, and where the term "this section"
appears therein it shall mean this section sixteen-c.
(g) The corporation may provide funds from an appropriation for the
minority- and women-owned business development and lending pr