(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,