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A07529 Summary:

COSPNSRLupardo, McDonald, Crespo, Gottfried, Fahy, Skartados, Hunter
Amd 1607 & 1609, N-PC L
Authorizes holding title of real property of a land bank in the name of a subsidiary; grants additional powers to land banks.
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A07529 Text:

                STATE OF NEW YORK
                               2015-2016 Regular Sessions
                   IN ASSEMBLY
                                      May 15, 2015
          FAHY,  SKARTADOS,  HUNTER  --  Multi-Sponsored by -- M. of A. MAGEE --
          read once and referred to the Committee on Local Governments -- recom-
          mitted to the Committee on Local Governments in accordance with Assem-
          bly Rule 3, sec. 2 --  committee  discharged,  bill  amended,  ordered
          reprinted  as  amended  and  recommitted  to  said  committee -- again
          reported from said committee with  amendments,  ordered  reprinted  as
          amended and recommitted to said committee
        AN  ACT  to amend the not-for-profit corporation law, in relation to the
          powers of a land bank
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Clauses 20 and 21 of paragraph (a) of section 1607 of the
     2  not-for-profit corporation law, as added by chapter 257 of the  laws  of
     3  2011, are amended to read as follows:
     4    (20)  to  enter in agreements with a foreclosing governmental unit for
     5  the distribution of revenues to the foreclosing  governmental  unit  and
     6  school district; [and]
     7    (21) to organize a subsidiary for a project or projects which the land
     8  bank  has the power to pursue under this article when the primary reason
     9  for which the subsidiary shall be organized shall be to limit the poten-
    10  tial liability impact of the subsidiary's project  or  projects  on  the
    11  land bank or because state or federal law requires that the purpose of a
    12  subsidiary be undertaken through a specific corporate or business struc-
    13  ture.  All  real  property  of a subsidiary organized under this article
    14  shall be maintained on the inventory lists required in this  article  of
    15  the  land bank of which it is a subsidiary and the subsidiary shall make
    16  all reports and other disclosures as are required of  land  banks  under
    17  this  article  and  as local public authorities, unless the subsidiary's
    18  operations and finances are consolidated with those of the land bank  of
    19  which  it  is  a  subsidiary.  Subsidiaries organized under this article
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 7529--B                          2
     1  shall be established in the form of a New York charitable not-for-profit
     2  corporation or a New  York  single  member  limited  liability  company.
     3  Subsidiaries shall not have the authority to issue bonds, notes or other
     4  debts,  provided,  however,  that  such  subsidiaries may issue notes or
     5  other debt to the land bank of which it is a subsidiary.  The  organiza-
     6  tional  documents  filed to create a subsidiary under this article shall
     7  state that the land bank is organizing the subsidiary for  the  purposes
     8  set  forth  in  this  article  and  the  name of the subsidiary shall be
     9  reasonably related to the name of the land bank of which it is a subsid-
    10  iary. The real property of a subsidiary organized under this article and
    11  its income and operations are exempt from all taxation by the  state  of
    12  New York and by any of its political subdivisions; and
    13    (22)  to  do  all other things necessary to achieve the objectives and
    14  purposes of the land bank or other laws that relate to the purposes  and
    15  responsibility of the land bank.
    16    §  2.  Paragraph (a) of section 1609 of the not-for-profit corporation
    17  law, as added by chapter 257 of the laws of 2011, is amended to read  as
    18  follows:
    19    (a)  The  land  bank  shall  hold in its own name, or in the name of a
    20  lawfully organized subsidiary, all real property acquired  by  the  land
    21  bank irrespective of the identity of the transferor of such property.
    22    § 3. This act shall take effect immediately.
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