Establishes the New York State social housing development authority as a public benefit corporation to increase the supply of permanently affordable housing in the state through the acquisition of land and renovation or rehabilitation of existing real property, and through the construction of new, permanently affordable housing.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9088
SPONSOR: Gallagher TITLE OF BILL:
An act in relation to creating a public benefit corporation for the
construction, acquisition, and rehabilitation of permanently affordable
housing; and making an appropriation therefor
PURPOSE OR GENERAL IDEA OF BILL:
To create a new state authority with the mandate to build, acquire,
rehabilitate, and preserve permanently affordable housing statewide.
SUMMARY OF SPECIFIC PROVISIONS:
Section one contains the short title.
Section two contains the legislative findings and declaration. Section
three contains the definitions.
Section four creates the New York State Social Housing Development
Authority and outlines the composition of its corporate board.
Section five describes the powers of the corporation.
Section six requires the issuance of rules and regulations within one
year of the creation of the corporation and adherence to the state
administrative procedure act.
Section seven describes the procedures by which the authority may
acquire land and property.
Section eight requires the creation of a website, online portal, and
clearinghouse for projects and opportunities for residents, property
owners, and third parties.
Section nine describes the procedures by which the authority can exer-
cise a right of first refusal on the disposition of distressed proper-
ties containing three or more units in the state.
Section ten describes tenants' rights and protections in properties
owned by the corporation; inter alia that units in jurisdictions with a
rent guidelines board shall be placed under rent stabilization, and that
units in a jurisdiction without a rent guidelines board shall be guaran-
teed substantially similar rights as those under rent stabilization.
Rent increases are limited to no more than two percent per year, with
exceptions, and income recertification is not required after initial
occupancy. Rents are limited to twenty five percent of a household's
income at initial occupancy. An internal bureau is created for the
receipt and processing of complaints and petitions by residents.
Section eleven requires that the corporation create programs for the
construction of new, permanently affordable residential projects, the
conversion of acquisitions into permanently affordable projects, and the
construction of special purpose housing. The authority is allowed to
manage projects itself or transfer a ground lease to a qualified housing
company, and to designate projects as cooperatives or rentals, and as
mixed-income or one hundred percent affordable. The corporation is
further directed to rehabilitate properties to bring them into compli-
ance with energy efficiency standards and applicable building codes.
Across the portfolio, at least twenty five percent of the residential
units owned by the corporation must be for households earning thirty
percent or less than the area median income, and no more than one third
may be designated for households earning at least one hundred percent of
the area median income. Provisions regarding the financing of projects
are outlined.
Section twelve permits the authority to supersede local zoning and plan-
ning laws for any project designated as permanently affordable and
requires compliance with the state building code.
Section thirteen requires the creation of procedures for the creation of
elected resident councils.
Section fourteen outlines standards for contracting with the corpo-
ration, including provisions requiring prevailing wages or project labor
agreements.
Section fifteen outlines alternative project delivery contracts, such as
best-value, design-build, and other types of project delivery.
Section sixteen creates an office of technical assistance.
Section seventeen permits the authority to issue vouchers to dwelling
units in residential projects owned or managed by the authority.
Section eighteen requires the provision of relocation assistance to any
individual displaced by a project of the corporation and guarantees a
right of return or preference for such individual in projects belonging
to the corporation.
Section nineteen requires the creation of annual reports and evalu-
ations.
Section twenty permits the creation of wholly-owned subsidiaries for the
purposes of project management.
Section twenty one regulates monies of the corporation.
Section twenty two regulates bonds of the corporation.
Section twenty three requires the creation of debt service reserve
funds.
Section twenty four provides for the dissolution of the corporation.
Section twenty five provides for court proceedings involving the corpo-
ration.
Section twenty six includes provisions for actions against the corpo-
ration.
Section twenty seven provides for limited liability of the corporation
and its employees.
Section twenty eight designates the corporation as a public employer.
Section twenty nine requires to the greatest degree possible that mate-
rials for construction are acquired from manufacturers based in the
state or the United States, in that order, unless neither option is
available.
Section thirty provides for public access to records and meetings of the
board.
Section thirty one designates the authority as tax exempt, but provides
that the authority may agree to pay sums in lieu of taxes.
Section thirty two requires the construction of the act liberally so as
to effectuate its purposes, being necessary for the welfare of the state
and its inhabitants.
Section thirty three supersedes inconsistent provisions of other laws.
Section thirty four requires the severability of any particular
provision found invalid by a court of competent jurisdiction from the
remainder of the act's provisions.
Section thirty five appropriates sixty million dollars for operating
expenses. Section thirty-six contains the effective date.
JUSTIFICATION:
New York state has a long and proud history of social housing. Hundreds
of thousands of units in limited-equity cooperatives, limited-profit
housing, and public housing were constructed throughout the twentieth
century, much of which was built with state assistance. This robust
social housing system has formed an essential part of New York's urban
fabric, helping millions of families affordably launch careers, raise
families, and retire in the Empire State.
Unfortunately, New York state has not significantly invested in the
construction of new forms of social housing since the demise of the
Mitchell-Lama program in the 1970s, and the state now confronts a hous-
ing affordability crisis that drives thou'sands of New Yorkers into
homelessness every year. Thousands more are forced to leave the state
for want of affordable housing, and the dream of homeownership or stable
housing is inconceivable for many who remain.
This bill proposes the creation of a new state authority charged with
building new, high-quality, permanently affordable social housing in the
form of both rentals and cooperatives. By partnering with tenant organ-
izations who wish to purchase their accommodations and convert them to
cooperatives, or by acquiring and rehabilitating existing distressed
housing, the authority can also keep people in their homes and perma-
nently preserve affordability where it already exists. The housing
crisis now faced by our state requires not only bold action but durable
solutions. The proposed Social Housing Development Authority (SHDA) can
complement existing affordable housing programs while offering unique
benefits and paying long-term dividends. A state authority can stream-
line and fast-track developments by incorporating all necessary powers
and functions under one roof, eliminating unnecessary expenses and
bureaucratic delays; it can muster the capital necessary to take on
large projects or acquisitions; it can cross-subsidize across its port-
folio; it can act as a public land bank or trust; it can undertake
projects with external organizations seeking to invest in social hous-
ing, for example pension funds; and it can partner with non-profits,
land trusts, and community benefit organizations seeking to manage
affordable housing. Over time, the existence of a public developer like
the SHDA would steadily expand the portfolio of permanently affordable
social housing in New York, stabilizing the explosive growth in rents
and land values and making New York a more livable state for present and
future residents.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Sixty million dollars for initial operating expenses. Other fiscal
implications to be determined.
EFFECTIVE DATE:
This bill is effective immediately.
STATE OF NEW YORK
________________________________________________________________________
9088
IN ASSEMBLY
February 6, 2024
___________
Introduced by M. of A. GALLAGHER, ANDERSON, SIMONE, SHRESTHA, MITAYNES,
FORREST, MAMDANI, L. ROSENTHAL, EPSTEIN -- read once and referred to
the Committee on Corporations, Authorities and Commissions
AN ACT in relation to creating a public benefit corporation for the
construction, acquisition, and rehabilitation of permanently afforda-
ble housing; and making an appropriation therefor
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "permanently affordable social housing for New Yorkers act".
3 § 2. Legislative findings and declaration; statement of policy. The
4 legislature hereby finds and declares that safe, sanitary, plentiful and
5 affordable housing accommodations are necessary for the public health,
6 general welfare, and economy of the state. The legislature further finds
7 and declares that a shortage of available affordable housing in communi-
8 ties across New York undermines the economy of the state as a whole and
9 that a state program to leverage private, local, state, and federal
10 funds to build new, high-quality housing for working families is desper-
11 ately needed in order to cure the shortfall in supply created by the
12 private market. While the private housing market has failed to build
13 enough housing to create affordability across all levels of income in
14 New York, private landlords have also seized upon the opportunity to
15 rapaciously extract rents and profit at the expense of New Yorkers, who
16 have witnessed extraordinary increases in the cost of living in recent
17 years, the largest component of which is the cost of housing, which has
18 increased at annual rates far in excess of gains to wages or income for
19 working-class New Yorkers.
20 Whereas the legislature has previously authorized the creation of
21 transportation authorities, port authorities, and water and sewer
22 authorities, among others, to manage the construction, operation,
23 financing, and improvement of various forms of state infrastructure and
24 public services, and to insulate the provision of such services to New
25 Yorkers from both the vicissitudes of political administrations and the
26 greed of private ownership; and whereas social housing, being permanent-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13689-03-4
A. 9088 2
1 ly affordable and democratically controlled, represents a superior and
2 more economical form of housing provision when compared to alternative
3 methods of housing subsidy; and whereas prior forms of social housing
4 sponsored by the legislature, including the creation of limited equity
5 cooperatives and the Mitchell-Lama program, have been successful in
6 creating and preserving high-quality, affordable housing for New York's
7 residents; and whereas many areas of the state suffer from housing in
8 dire need of rehabilitation and retrofitting; and whereas the state
9 continues to present the possibility of freedom and economic livelihood
10 to individuals displaced from distant lands by climate change, geopoli-
11 tics, and forces of history; the legislature further finds and declares
12 the necessity of creating a durable and scalable program for the ongoing
13 construction, rehabilitation and maintenance of permanently affordable
14 housing statewide through the creation of a new state authority tasked
15 with such purpose.
16 It shall be the policy of the state to encourage the construction and
17 maintenance of permanently affordable, democratically controlled, high-
18 quality housing statewide through the creation of a new state authority
19 charged with such responsibility. The policy of the state, in creating
20 such an authority and program, shall be to combine all available sources
21 of funding whenever possible and direct subsidies towards both
22 construction and acquisition, in which the authority through its
23 stewardship may hold such subsidy permanently in trust. The policy of
24 the state shall further be to create such authority with a vision for
25 governance that empowers its residents to participate in decision-mak-
26 ing, creates a sense of shared responsibility and public stewardship,
27 and generates a positive feedback cycle for the authority in the imple-
28 mentation and modification of policies. Besides the promotion of new
29 construction, the policy of the state shall further be to promote the
30 preservation of existing affordable housing through the conversion of
31 private housing to social housing models, under the stewardship of the
32 authority, through acquisitions made by the authority in partnership
33 with tenants, wherever tenants of a building shall seek to purchase
34 their building at a fair market value from its owner. In creating this
35 authority, the policy of the state shall further be to minimize the
36 number of New Yorkers who suffer to sleep outside or in shelters without
37 a permanent residence through the allocation of vouchers and units to
38 homeless and migrant New Yorkers; to provide high-quality housing at
39 affordable rates to New Yorkers at extremely low, very low, and low
40 income levels who otherwise are unable to find high-quality or afforda-
41 ble housing in the private market; to deepen the role of government in
42 the stabilization of the housing market and the role of government in
43 sponsoring new construction; and to deepen the proactive involvement of
44 the state in urban planning, collaboration with local governments, agen-
45 cies, and residents, and innovation in housing design and construction.
46 § 3. Definitions. For the purposes of this act, unless otherwise
47 expressly stated or the context or subject matter otherwise requires,
48 the following terms shall have the following meanings:
49 1. "Alternative project delivery contract" means any project delivery
50 method authorized by this act, including construction manager build,
51 construction manager at risk, and design-build, pursuant to which one or
52 more contracts for the provision of design or construction management
53 and construction services are awarded pursuant to an open and compet-
54 itive method of procurement, as specified in section fifteen of this
55 act.
A. 9088 3
1 2. "Best value" means the basis for awarding contracts for services to
2 a proposer that optimizes quality, cost and efficiency, price and
3 performance criteria, and which may include, but is not limited to:
4 a. the quality of the proposer's performance on previous projects;
5 b. the timeliness of the proposer's performance on previous projects;
6 c. the level of customer satisfaction with the proposer's performance
7 on previous projects;
8 d. the proposer's record of performing previous projects on budget and
9 ability to minimize cost overruns;
10 e. the proposer's ability to limit change orders;
11 f. the proposer's ability to prepare appropriate project plans;
12 g. the proposer's technical capacities;
13 h. the individual qualifications of the proposer's key personnel;
14 i. the proposer's ability to assess and manage risk and minimize risk
15 impact;
16 j. the proposer's financial capability;
17 k. the proposer's ability to comply with applicable requirements,
18 including the provisions of articles one hundred forty-five, one hundred
19 forty-seven and one hundred forty-eight of the education law;
20 l. the proposer's past record of compliance with federal laws, state
21 and local laws, rules and regulations, licensing requirements, where
22 applicable, and executive orders, including, but not limited to, section
23 three of the federal housing and urban development act of nineteen
24 hundred sixty-eight, as amended, or any successor provision, chapter
25 seventy-nine of the New York city charter, as applicable, article
26 fifteen-A of the executive law and any other applicable laws concerning
27 minority- and women-owned business enterprise participation, the labor
28 law, and any other applicable labor and prevailing wage laws;
29 m. the proposer's record of complying with existing labor standards,
30 maintaining harmonious labor relations, protecting the health and safety
31 of workers, and payment of prevailing wages in accordance with article
32 eight of the labor law;
33 n. a quantitative factor to be used in evaluation of bids or offers
34 for awarding of contracts for bidders or offerors that are certified as
35 minority- or women-owned business enterprises pursuant to article
36 fifteen-A of the executive law or certified pursuant to section thirteen
37 hundred four of the New York city charter as minority- or women-owned
38 business enterprises, or where the bidder is a joint venture including
39 at least one such certified firm. Where the corporation identifies a
40 quantitative factor pursuant to this paragraph, the corporation shall
41 specify that businesses certified as minority- or women-owned business
42 enterprises pursuant to article fifteen-A of the executive law as well
43 as those certified as minority- or women-owned business enterprises
44 pursuant to section thirteen hundred four of the New York city charter,
45 or joint ventures including at least one such certified firm, are eligi-
46 ble to qualify for such factor. Nothing in this paragraph shall be
47 construed to require that such businesses be concurrently certified as
48 minority- or women-owned business enterprises under such article and
49 such section to qualify for such quantitative factor; and
50 o. a quantitative factor to be used in evaluation of bids or offers
51 for awarding of contracts for bidders or offerors that provide economic
52 opportunities for low and very low-income persons in accordance with
53 section three of the federal housing and urban development act of nine-
54 teen hundred sixty-eight, as amended, or chapter seventy-nine of the New
55 York city charter, as applicable, or any successor provision. Such
A. 9088 4
1 basis shall reflect, wherever possible, objective and quantifiable anal-
2 ysis.
3 3. "Board" means the board of the corporation.
4 4. "Bonds" and "notes" mean the bonds and notes respectively issued by
5 the corporation.
6 5. "Clearinghouse" means the website and processes created pursuant to
7 section eight of this act.
8 6. "Civic project" means a project or that portion of a project desig-
9 nated and intended for the purpose of providing facilities for educa-
10 tional, cultural, recreational, community, or other civic purposes.
11 7. "Comptroller" means the comptroller of the state.
12 8. "Construction manager build" means a project delivery method where-
13 by a construction manager, following a declaration of a disaster by the
14 governor or state of emergency by the mayor pursuant to article two-B of
15 the executive law or chapter one of title three of the administrative
16 code of the city of New York, or following an independent cost estimate
17 and a concurrence by the corporation that construction work is required
18 at a residential project to remedy defects to bring the residential
19 project into decent, safe, and sanitary condition:
20 a. serves as part of a team in conjunction with the owner in the
21 design phase of the project;
22 b. under the oversight of the owner, acts as the single source of
23 responsibility to bid, select and hold construction contracts on behalf
24 of the owner during the construction phase; and
25 c. manages the construction project on behalf of the owner.
26 9. "Construction manager at risk" means a project delivery method
27 whereby a construction manager:
28 a. serves as part of a team in conjunction with the owner in the
29 design phase of the project;
30 b. during the construction phase, acts as general contractor for
31 agreed upon compensation as set forth in the construction manager at
32 risk agreement; and
33 c. assumes the risk of construction costs exceeding an amount speci-
34 fied in the construction manager at risk agreement.
35 10. "Corporation" means the New York state social housing development
36 authority created by section four of this act.
37 11. "Cost plus" means compensating a contractor for the cost to
38 complete a contract by reimbursing actual costs for labor, equipment and
39 materials plus an additional amount for overhead and profit.
40 12. "Design-build" means a project delivery method for the design and
41 construction of a project with a single entity, which may be a team
42 composed of separate entities.
43 13. "Distressed" means, with respect to an asset that: (i) the obligor
44 thereof is subject to a bankruptcy, insolvency, liquidation, or other
45 similar action or proceeding; (ii) the obligor thereof has failed to
46 make any payment of principal or interest with respect to such asset
47 when due (whether at scheduled maturity or any accelerated date of matu-
48 rity or any other date fixed for payment or prepayment thereof or other-
49 wise) beyond any period of grace provided with respect thereto; (iii)
50 such asset is classified by the lender as "non-performing" pursuant to
51 generally accepted accounting principles; (iv) such asset is in a phys-
52 ically distressed condition, as shall be defined by the corporation; or
53 (v) such asset is under lien for unpaid municipal arrears.
54 14. "Energy efficiency and housing quality standards" means standards
55 promulgated by the corporation, which shall specify minimum energy and
56 water efficiency requirements for residential real property under the
A. 9088 5
1 control of the corporation, in addition to other health and safety stan-
2 dards identified in this act or by the corporation through subsequent
3 regulation, including without limitation compliance with the state
4 building code.
5 15. "Environmental hazard and housing quality inspection" means an
6 inspection, conducted in-person and on-site, by an employee or agent of
7 the corporation, which shall identify a property's degree of compliance
8 with the corporation's energy efficiency and housing quality standards
9 and any other applicable building codes, as well as the work necessary
10 to bring such building or property into compliance with such codes and
11 standards.
12 16. "Environmental hazard and housing quality retrofit" means the
13 process by which the corporation shall bring a building or property into
14 compliance with the corporation's energy efficiency and housing quality
15 standards and any other applicable codes or standards. Environmental
16 hazard and housing quality retrofits shall proceed as expeditiously as
17 necessary to ensure the safety and well-being of occupants, provided
18 that they may occur in stages and upon timelines that the corporation
19 deems convenient. Such retrofit may include, without limitation:
20 a. Replacing or upgrading, as the case may be, appliances, equipment,
21 and appurtenances thereto, which have reached the end of their useful
22 lives or where such replacement or upgrade would help such property meet
23 the corporation's energy efficiency and housing quality standards;
24 b. Weatherization;
25 c. Remediation of any and all environmental hazards present in such
26 building or upon such property, including pests, mold, asbestos, lead,
27 or any other harmful contaminants, as well as brownfield remediation
28 when necessary;
29 d. Upgrading of a building's accessibility for individuals with disa-
30 bilities; and
31 e. Curing of any and all other existing violations of building codes
32 or other applicable health and safety standards.
33 17. "Excess cash flow" means surplus funds derived from the rents or
34 other income of a project after all annual operating costs of the
35 project have been paid, including its maintenance and operations,
36 management fees, debt service, and reserve contributions.
37 18. "Ground lease" means the written instrument pursuant to which the
38 corporation transfers to another party its leasehold interest in a
39 project and ancillary personal property.
40 19. "Housing company" means a company organized pursuant to the
41 provisions of article two, four, or eleven of the private housing
42 finance law.
43 20. "Land use improvement project" means a plan or undertaking for the
44 clearance, replanning, reconstruction, or rehabilitation or any combina-
45 tion of these and other methods, of an underdeveloped or unsanitary area
46 or property, including sites designated as brownfields or which other-
47 wise may pose environmental risks to public health in need of remedi-
48 ation, for the purpose of creating a permanently affordable residential
49 project.
50 21. "Local governing body" means the board of supervisors, county
51 legislature, board of aldermen, common council, commission, city coun-
52 cil, or other elective governing board or body now or hereafter vested
53 by state statute, charter, or other law with jurisdiction to initiate
54 and adopt other local laws whether or not such local laws or ordinances
55 require the approval of the elective chief executive officer or other
56 official or body to become effective.
A. 9088 6
1 22. "Mixed-income" means a designation for a residential project,
2 which shall include a mix of affordability levels for units available in
3 such project such that a proportion of the units in such project are
4 reserved for households with low, very low, or extremely low annual
5 incomes, and another proportion are available to individuals with
6 incomes between eighty percent and one hundred sixty-five percent of the
7 area median income. For the purposes of this act, "low," "very low," and
8 "extremely low" annual incomes and "area median income" shall have the
9 same meanings as such terms are defined by the secretary of the federal
10 department of housing and urban development. The proportions reserved
11 for each income category shall be determined at the discretion of the
12 corporation on a per-project basis, and in making such determination the
13 corporation shall seek to maximize the overall affordability of such
14 residential project in relation to the socio-economic characteristics of
15 the community in which it is sited, considering without limitation
16 factors such as local median incomes, rates of unemployment, and esti-
17 mated need among various segments of the population, while ensuring such
18 project can operate in a financially solvent manner for the duration of
19 the mortgage or financing securing such project after accounting for
20 expected subsidies and operating revenues. In any mixed-income residen-
21 tial project constructed by the corporation, the quality of any unit
22 shall not materially differ between units affordable at various levels,
23 nor shall access to services and facilities within such project, nor
24 shall units affordable at various levels be segmented apart from one
25 another or be outwardly identifiable according to affordability level.
26 23. "Mixed-use" means a designation for a project and real property
27 within or upon which a residential project exists in addition to a
28 project designated for commercial purpose or use, which for the purposes
29 of this act shall mean the buying, selling, or other provision of goods
30 and services, or other lawful business or commercial activities.
31 24. "Municipality" means any county, city, town, or village.
32 25. "One hundred percent affordable" means a designation for a resi-
33 dential project exclusively intended for households earning below eighty
34 percent of the area median income, as calculated by the secretary of the
35 federal department of housing and urban development.
36 26. "Permanently affordable" means a designation for a residential
37 project, the affordability of which is preserved through the inclusion
38 of an affordability covenant in the deed to such land and, where appli-
39 cable, any ground lease to the improvements on such land. Such afforda-
40 bility covenant shall limit the profit that may be taken on the sale or
41 resale of leasehold interests to such residential project or any part
42 thereof or dwelling unit therein and the shares, stock, or equity of any
43 corporations holding a leasehold interest in such project, where such
44 shares include or represent a possessory interest to a dwelling unit in
45 such project, to a rate of two percent per annum compounded annually.
46 Increases to rents or fees charged to residents within a permanently
47 affordable unit shall be limited to no more than two percent per year.
48 27. "Project" means a specific work or improvement including lands,
49 buildings, improvements, real and personal properties or any interest
50 therein, acquired, owned, constructed, reconstructed, rehabilitated or
51 improved by the corporation or any subsidiary thereof, including a resi-
52 dential project, a land use improvement project, or a civil project, or
53 any combination thereof. The term "project" or any variation thereof as
54 used herein shall include entire projects, or any portion of a project.
55 28. "Project cost" means the sum total of all costs incurred by the
56 corporation in carrying out all works and undertakings, which the corpo-
A. 9088 7
1 ration deems reasonable and necessary for the development of a project.
2 Project costs shall include, but are not necessarily limited to, the
3 costs of all necessary studies, surveys, plans and specifications,
4 architectural, engineering or other special services, acquisition of
5 land and any buildings thereon, site preparation and development,
6 construction, reconstruction, rehabilitation, improvement and the acqui-
7 sition of such machinery and equipment as may be deemed necessary in
8 connection therewith (other than raw materials, work in process or stock
9 in trade); the necessary expenses incurred in connection with the
10 initial occupancy of the project, an allocable portion of the adminis-
11 trative and operating expenses of the corporation, the cost of financing
12 the project, including interest on bonds and notes issued by the corpo-
13 ration to finance the project from the date thereof to the date when the
14 corporation shall determine that the project be deemed substantially
15 occupied, and the cost of such other items, including any indemnity and
16 surety bonds and payments on insurance, legal fees, fees and expenses of
17 trustees, depositories and paying agents for the bonds and notes issued
18 by the corporation, and relocation costs, all as the corporation shall
19 deem necessary.
20 29. "Project labor agreement" shall have the same meaning as described
21 in section two hundred twenty-two of the labor law.
22 30. "Real property" means lands, structures, franchises and interests
23 in land, including lands under water and riparian rights, space rights
24 and air rights and any and all other things and rights usually included
25 within such term. Real property shall also mean and include any and all
26 interests in such property less than full title, such as easements,
27 incorporeal hereditaments and every estate, interest or right, legal or
28 equitable, including terms for years and liens thereon by way of judg-
29 ments, mortgages or otherwise, and also all claims for damages for such
30 real estate.
31 31. "Resident" means a person whose lawful primary residence is a
32 dwelling unit in any residential project or real property owned, leased,
33 or managed by the corporation.
34 32. "Residential project" means a project or that portion thereof
35 designed and intended for the purpose of providing housing accommo-
36 dations and such facilities as may be incidental or appurtenant thereto.
37 33. "Short-sale" means a sale of a residential real property that is
38 subject to a mortgage, deed, trust, or other security interest that
39 secures a residential mortgage loan that: (i) will result in proceeds in
40 an amount that is less than the remaining amount due under the mortgage
41 loan; and (ii) requires authorization by any securitization vehicle or
42 other investment vehicle or holder of the mortgage loan, or the servicer
43 acting on behalf of such a vehicle or holder.
44 34. "Special purpose housing" means a residential project constructed
45 for the purpose of providing affordable or subsidized housing accommo-
46 dations on an expedited schedule at the request of a state agency, local
47 government, or the governor. Special purpose housing projects shall
48 utilize modular housing solutions, or any other available and comparable
49 means, to deliver housing accommodations in a rapid and efficient
50 manner. The delivery of special purpose housing may be exempted at the
51 discretion of the board from certain community feedback processes estab-
52 lished by the corporation for the construction or approval of other
53 residential projects. The delivery of a special purpose housing project
54 shall be contingent upon the negotiation of partial or total funding and
55 financing agreements with local, state, or federal authorities.
56 35. "State" means the state of New York.
A. 9088 8
1 36. "State agency" means any office, department, board, commission,
2 bureau, division, public corporation, agency, or instrumentality of the
3 state.
4 37. "Subsidiary" means a corporation created in accordance with
5 section twenty of this act.
6 38. "Underdeveloped" means a real property or part thereof whose high-
7 est and best use, as determined at the sole discretion of the corpo-
8 ration, is as a permanently affordable residential project or civic
9 project which, after a comprehensive review of any relevant factors
10 undertaken by the corporation, the corporation finds is not currently
11 employed in its highest and best use and can feasibly be converted to
12 such use by the corporation.
13 39. "Voting process" means the democratic process whereby residents of
14 a residential project shall make decisions affecting the governance or
15 management of such residential project through a popular election facil-
16 itated and certified by the corporation, which process shall be deter-
17 mined as a matter of regulation by the corporation.
18 40. "Weatherization" means without limitation all improvements neces-
19 sary to protect a home from the elements and improve the energy effi-
20 ciency of heating and cooling systems, such as: sealing bypasses and air
21 ducts; installing or replacing dampers in exhaust ducts; protecting
22 pipes from corrosion and freezing; installing footing drains, foundation
23 waterproofing membranes, interior perimeter drains, sump pumps, gutters,
24 downspout extensions, downward-sloping grading, French drains, swales,
25 and other appurtenances to protect a building from both surface water
26 and groundwater; providing proper ventilation to unconditioned spaces to
27 protect a building from the effects of condensation; installing, replac-
28 ing, or upgrading roofing, building wrap, siding, flashing, skylights or
29 solar tubes; installing, upgrading, or replacing insulation; installing
30 storm doors and storm windows; replacing drafty doors with tightly seal-
31 ing, foam-core doors; retrofitting older windows with a stop or parting
32 bead across the sill; or replacing older windows with low-energy,
33 double-glazed windows.
34 § 4. New York State social housing development authority. 1. There is
35 hereby created the New York state social housing development authority.
36 The authority shall be a corporate governmental agency of the state,
37 constituting a political subdivision and public benefit corporation.
38 2. The corporation shall have a duty to increase the supply of afford-
39 able housing in the state through the acquisition of land and renovation
40 or rehabilitation of existing real property, and through the
41 construction of new, permanently affordable housing. The residential
42 projects under the management or control of the corporation or its
43 subsidiaries shall be and forever remain permanently affordable. The
44 corporation shall take all actions necessary or convenient to ensure the
45 high quality of residential real property under its management or
46 control as well as the maintenance and improvement of conditions or
47 abatement of nuisances therein.
48 3. The membership of the corporation shall consist of a board with a
49 size of nineteen members. The corporation shall be governed and its
50 powers shall be exercised by such board. The board shall establish
51 rules and requirements relative to the attendance and participation of
52 members in its meetings, regular or special, and shall meet in regular
53 session according to a schedule adopted by the board, at a frequency no
54 less often than once per month, and also may meet in special session as
55 convened by the chairman or upon written notice signed by a majority of
56 the sitting members. The board shall elect annually from among its
A. 9088 9
1 members a chairman, vice-chairman, treasurer, and other officers as the
2 board may determine and shall establish their duties as may be regulated
3 by the rules of the board.
4 a. The first eleven members shall be appointed in the following
5 manner. Three members shall be appointed by the governor, three members
6 shall be appointed by the speaker of the assembly, and three members
7 shall be appointed by the temporary president of the senate. The commis-
8 sioner of the department of housing and community renewal and the comp-
9 troller shall have ex officio seats on the board. The remaining eight
10 members of the board shall be elected by the residents of residential
11 projects owned or managed by the corporation. Appointments and member-
12 ship shall be subject to the following restrictions:
13 (i) One of each of the three members appointed by the speaker of the
14 assembly, governor, and temporary president of the senate respectively
15 shall represent the interests of employee organizations in the state;
16 (ii) One of each of the three members appointed by the speaker of the
17 assembly, governor, and temporary president of the senate respectively
18 shall represent the interests of affordable housing advocates, community
19 land trusts, and homeless New Yorkers in the state;
20 (iii) One of each of the three members appointed by the speaker of the
21 assembly, governor, and temporary president of the senate respectively
22 professional or technical expertise in architecture, affordable housing
23 construction and financing, urban planning, or engineering; and
24 (iv) The remaining eight members shall be residents of residential
25 projects owned or managed by the corporation.
26 b. The members of the board shall receive no compensation for their
27 services but shall be entitled to receive their actual and necessary
28 expenses incurred in the performance of their duties. Except for ex
29 officio board members, any member of the board may be removed by the
30 governor for cause, after an opportunity to be heard in their defense. A
31 majority of the members of the board, not including vacancies, shall
32 constitute a quorum for the transaction of any business or the exercise
33 of any power or function of the corporation. The corporation may dele-
34 gate to one or more of its members, or its officers, agents and employ-
35 ees, such powers and duties as it may deem proper.
36 c. Except for the ex officio board members, no member of the board,
37 besides possession of a primary residence or a share representing
38 possession in part or whole thereof, may own, nor profit from, any real
39 property or share thereof, directly or indirectly; provided, however,
40 that beneficial ownership in any real property besides a primary resi-
41 dence may be placed in a blind trust for the duration of a member's
42 tenure on the board. A member's term on the board may not begin until
43 such member's economic or legal interests, if any, in real property
44 located in New York state besides a primary residence shall have been
45 placed in a blind trust. Legal expenses incurred by the creation or
46 administration of a blind trust for a member of the board necessary to
47 comply with the requirements of this subdivision may be reimbursed by
48 the corporation upon the submission of receipts associated with such
49 expenses to the board and the board's approval of such reimbursement
50 request, which shall be made in writing and subject to disclosure pursu-
51 ant to article six of the public officers law.
52 d. The chairman of the board, or the president of the corporation, may
53 request and receive from any department, division, board, bureau,
54 commission or other agency of the state or any political subdivision
55 thereof or any public authority such assistance, information and data as
A. 9088 10
1 shall enable the corporation or the board properly to carry out its
2 functions, powers and duties.
3 e. The board shall appoint the president of the corporation, who shall
4 be its executive officer, upon advice and consent of the senate, and may
5 also appoint a secretary, counsel and legal staff, technical experts,
6 and such other agents and employees, permanent or temporary, as it may
7 determine necessary, prescribe their powers and duties, fix their
8 compensation and provide for reimbursement of their expenses within
9 amounts appropriated therefor. The board may, from time to time, create,
10 abolish, transfer and consolidate bureaus and other units within the
11 corporation or the board not expressly established by law as it may
12 determine necessary for the efficient operation of the corporation or
13 the board.
14 f. The corporation and its corporate existence shall continue until
15 terminated by law, consistent with the requirements of section twenty-
16 four of this act; provided, however, that no such law shall take effect
17 so long as the corporation shall have bonds, notes and other obligations
18 outstanding, unless adequate provision has been made for the payment
19 thereof in the documents securing the same.
20 g. Upon termination of the existence of the corporation, its rights
21 and properties shall pass to and be vested in the state.
22 h. Except for the ex officio board members, members of the board shall
23 hold office for terms of five years; provided that of the nine members
24 first appointed, three shall serve for a term of two years, three shall
25 serve for a term of three years and three shall serve for a term of five
26 years commencing January first next succeeding their appointment. No
27 member shall serve for more than ten years. Any member chosen to fill a
28 vacancy created other than by expiration of term shall be appointed for
29 the unexpired term of the member whom they are to succeed. Vacancies
30 caused by expiration of term or otherwise shall be filled in the same
31 manner as original appointments. With the exception of any seat belong-
32 ing to residents, if a seat on the board is vacant for a period exceed-
33 ing ninety days, the members of the board may temporarily fill such seat
34 with a person chosen by a majority of the board.
35 i. Any public officer shall be eligible to serve as a board member and
36 the acceptance of the appointment shall neither terminate nor impair
37 such public office.
38 j. Meetings of the board shall be subject to the requirements of arti-
39 cle seven of the public officers law. Each member of the board shall be
40 considered a public officer for the purposes of sections seventy-three
41 and seventy-four of the public officers law and shall file financial
42 disclosures and oaths of office pursuant to such law.
43 k. Members of the board shall not be personally liable on the bonds or
44 other obligations of the corporation and the rights of creditors shall
45 be solely against the corporation.
46 l. The corporation shall hold elections at its residential projects to
47 fill the eight seats on the board belonging to residents commencing four
48 years after the establishment of voting processes applicable to residen-
49 tial projects owned by the corporation.
50 § 5. Powers of the corporation. 1. To sue and be sued.
51 2. To have a seal and alter the same at its pleasure.
52 3. To make and execute contracts and all other instruments necessary
53 or convenient for the exercise of its powers and functions under this
54 act.
55 4. To make and alter by-laws for its organization and internal manage-
56 ment and, subject to agreements with noteholders or bondholders, to make
A. 9088 11
1 rules and regulations with respect to its projects, operations, proper-
2 ties and facilities, which rules and regulations shall be filed with the
3 department of state in the manner provided by section one hundred two of
4 the executive law.
5 5. To acquire, hold and dispose of personal property for its corporate
6 purposes.
7 6. To appoint officers, agents and employees, prescribe their duties
8 and qualifications and fix their compensation.
9 7. To acquire or contract to acquire from any person, firm, corpo-
10 ration, municipality, federal or state agency, by grant, purchase,
11 condemnation or otherwise, leaseholds, real, personal or mixed property
12 or any interest therein; to own, hold, clear, improve and rehabilitate,
13 and to sell, assign, exchange, transfer, convey, lease, mortgage, or
14 otherwise dispose of or encumber the same.
15 8. To exercise the power of eminent domain for the acquisition of any
16 vacant property whose acquisition shall be reasonably related to the
17 completion of a project approved by the corporation.
18 9. To acquire, construct, reconstruct, rehabilitate, improve, alter or
19 repair or provide for the construction, reconstruction, improvement,
20 alteration or repair of any project.
21 10. To arrange or contract with a municipality for the planning,
22 replanning, opening, grading or closing of streets, roads, roadways,
23 alleys or other places, or for the furnishing of facilities or for the
24 acquisition by a municipality of property or property rights or for the
25 furnishing of property or services in connection with a project.
26 11. To sell, lease, assign, transfer, convey, exchange, mortgage, or
27 otherwise dispose of or encumber any project, and in the case of the
28 sale of any project, to accept a purchase money mortgage in connection
29 therewith; and to lease, repurchase or otherwise acquire and hold any
30 project which the corporation has theretofore sold, leased or otherwise
31 conveyed, transferred or disposed of.
32 12. To grant options to purchase any project or to renew any leases
33 entered into by it in connection with any of its projects, on such terms
34 and conditions as it may deem advisable.
35 13. To prepare or cause to be prepared plans, specifications, designs
36 and estimates of cost for the construction, reconstruction, rehabili-
37 tation, improvement, alteration or repair of any project, and from time
38 to time to modify such plans, specifications, designs or estimates.
39 14. To manage any project, whether then owned or leased by the corpo-
40 ration, and to enter into agreements with the state or any municipality
41 or any agency or instrumentality thereof, or with any person, firm,
42 partnership or corporation, either public or private, for the purpose of
43 causing any project to be managed.
44 15. To provide advisory, consultative, training and educational
45 services, technical assistance and advice to any person, firm, partner-
46 ship or corporation, either public or private, in order to carry out the
47 purposes of this act.
48 16. To lend or donate monies, whether secured or unsecured, to any
49 subsidiary corporation, and to purchase, sell or pledge the shares,
50 bonds or other obligations or securities thereof, on such terms and
51 conditions as the corporation may deem advisable.
52 17. To make mortgage loans, secured by a first mortgage lien, includ-
53 ing temporary loans or advances, to any subsidiary corporation which is
54 a housing company, and to undertake commitments therefor. Any such
55 commitment, mortgage or bonds or notes secured thereby may contain such
56 terms and conditions not inconsistent with the provisions of this act as
A. 9088 12
1 the corporation may deem necessary or desirable to secure repayment of
2 its loan, the interest, if any, thereon and other charges in connection
3 therewith.
4 18. Subject to the provisions of any contract with noteholders or
5 bondholders to consent to the modification, with respect to rate of
6 interest, time of payments of any installment of principal or interest,
7 security, or any other term, of any mortgage, mortgage loan, mortgage
8 loan commitment, contract or agreement of any kind to which the corpo-
9 ration is a party.
10 19. In connection with any property on which it has made a mortgage
11 loan, to foreclose on any such property or commence any action to
12 protect or enforce any right conferred upon it by any law, mortgage,
13 contract or other agreement, and to bid for and purchase such property
14 at any foreclosure or at any other sale, or acquire or take possession
15 of any such property; and in such event the corporation may complete,
16 administer, pay the principal of and interest on any obligations
17 incurred in connection with such property, dispose of, and otherwise
18 deal with such property, in such manner as may be necessary or desirable
19 to protect the interests of the corporation therein.
20 20. To borrow money and to issue its negotiable bonds and notes and to
21 provide for the rights of the holders thereof.
22 21. As security for the payment of the principal of and interest on
23 any bonds so issued and any agreements made in connection therewith, to
24 mortgage and pledge any or all of its projects, whether then owned or
25 thereafter acquired, and to pledge the revenues and receipts therefrom
26 or from any thereof, and to assign or pledge the lease or leases on any
27 portion or all of said projects and to assign or pledge the income
28 received by virtue of said lease or leases.
29 22. To invest any funds of the corporation including funds held in
30 reserve or sinking funds, or any monies (including proceeds from the
31 sale of any bonds or notes of the corporation) not required for immedi-
32 ate use or disbursement, at the discretion of the corporation, in: (i)
33 obligations of the state or of the United States government; (ii) obli-
34 gations the principal and interest of which are guaranteed by the state
35 or the United States government; (iii) obligations of agencies and
36 instrumentalities of the state or of the United States; or (iv) certif-
37 icates of deposit of banks or trust companies in this state, secured by
38 any obligations described in this subdivision.
39 23. To procure insurance against any loss in connection with its prop-
40 erty and other assets and operations in such amounts and from such
41 insurers as it deems desirable.
42 24. To engage the services of consultants on a contract basis for
43 rendering professional and technical assistance and advice.
44 25. To contract for and to accept any gifts or grants or loans of
45 funds or property or financial or other aid in any form from the federal
46 government or any agency or instrumentality thereof, or from the state
47 or any agency or instrumentality thereof, or from any other source and
48 to comply, subject to the provisions of this act, with the terms and
49 conditions thereof.
50 26. To make loans, whether secured or unsecured, in connection with
51 the corporation's participation in a project, to any person or entity,
52 whether public or private, and to issue commitments for such loans,
53 provided that such loans and commitments are made or issued in compli-
54 ance with guidelines established by the board of directors of the corpo-
55 ration; to provide for the repayment of such loans on terms and condi-
56 tions that the directors of the corporation deem advisable and to
A. 9088 13
1 receive and hold real property or personal property as security for the
2 repayment of such loans.
3 27. Subject to any agreement with noteholders or bondholders, to enter
4 into agreements to pay annual sums in lieu of taxes to any municipality
5 or political subdivision of the state, in respect of any real property
6 which is owned by the corporation or any subsidiary thereof and is
7 located in such municipality or political subdivision.
8 28. To issue and enforce a subpoena and a subpoena duces tecum, admin-
9 ister oaths and examine persons under oath, in accordance with and
10 pursuant to the civil practice law and rules, in relation to matters
11 relevant to projects or activities of the corporation, including the
12 acquisition of property.
13 29. To form subsidiary legal or corporate entities pursuant to section
14 twenty of this act.
15 30. To provide for the administration and oversight of elections by
16 residents concerning matters internal to the corporation or affecting
17 residents.
18 31. To authorize, create, supervise, augment, consolidate, or, upon
19 the resolution of the corporation, dissolve internal governance bodies
20 composed of residents; and to certify and effectuate, to the best of the
21 corporation's ability, the decisions or elections of such bodies.
22 32. To do all things necessary or helpful for the promotion of democ-
23 racy and democratic participation in internal governance structures
24 among residents.
25 33. To visit and cause to be inspected any real property in the state
26 in order to carry out the functions, powers, and duties of the corpo-
27 ration, provided that entry onto such real property shall be conditioned
28 upon the permission of the owner or tenants, as applicable.
29 34. To do any and all things necessary or convenient to carry out its
30 corporate purposes and for exercise of the powers given and granted to
31 it in this act.
32 § 6. Rules and regulations. 1. The corporation shall promulgate rules
33 and regulations in accordance with the state administrative procedure
34 act in order to implement the provisions of this act.
35 2. Such rules and regulations shall be first promulgated no later than
36 one year after the effective date of this act, and thereafter may from
37 time to time be amended, modified, or repealed.
38 3. The announcement of any amendment, modification, or repeal of rules
39 and regulations shall be conspicuously posted in any residential
40 projects owned, leased or managed by the corporation. Residents of such
41 residential projects shall be notified of the time, places and modes by
42 which residents may submit comments or testimony in relation to such
43 proposed changes to the rules and regulations of the corporation.
44 § 7. Acquisition of real property. 1. The corporation shall acquire
45 real property for rehabilitation and conversion to, or construction of,
46 residential projects through whatever lawful means are necessary or
47 convenient for such purposes upon a determination by the corporation
48 that such real property is necessary for its present or future corporate
49 purposes. The corporation may acquire the same in the name of the state
50 by dedication, by agreement, or by eminent domain, and payment therefor
51 shall be made by the corporation from the proceeds of sale of its bonds,
52 notes or other obligations, or from other available moneys therefor. The
53 authority shall hold such property in the name of the state and shall
54 have the right to possess and use such property for its corporate
55 purposes so long as its corporate existence shall continue. Any property
A. 9088 14
1 held by the corporation shall not be converted or seized for other
2 public use without the prior consent of the corporation.
3 2. Upon a request by the corporation, signed by the president of the
4 corporation, a municipality in the state shall identify each vacant,
5 tax-foreclosed property, or distressed property held by such munici-
6 pality and submit to the corporation a list of such properties. Such a
7 list shall be certified by counsel for the municipality. State agencies
8 shall comply in an identical manner.
9 3. The corporation may acquire property from the state, a munici-
10 pality, or a state agency, notwithstanding if such property may already
11 be devoted to public use. Such governmental entity may offer such real
12 property to the corporation, or the corporation may request the transfer
13 of property after having identified such property as useful, necessary,
14 or convenient to its purposes, which shall be certified in the form of a
15 written request by the president of the corporation. Notwithstanding
16 any law to the contrary, a governmental entity may sell, convey, or
17 otherwise dispose of such property and appurtenances thereto or any
18 interest therein to the corporation without public auction, sealed bids,
19 or public notice. Notwithstanding any local law or charter, any govern-
20 mental entity, by resolution of its governing body, is hereby empowered,
21 without referendum, public auction, or sealed bids to sell, convey, or
22 otherwise dispose of any property and appurtenances thereto or any
23 interest therein to the corporation. Any such sale, grant or conveyance
24 shall be made with or without consideration and upon terms and condi-
25 tions as may be agreed upon between the governmental entity and corpo-
26 ration.
27 4. a. Upon identifying a vacant or underdeveloped property on the
28 private market or at public auction, which property is necessary for the
29 corporation's purposes, the corporation may make an offer for the
30 purchase of such property at a fair market value.
31 b. If such property is not for sale or auction but is necessary for
32 the corporation's purposes, the president shall certify the same to the
33 board in writing and the board may authorize the acquisition of such
34 property by means of eminent domain. Prior to the commencement of
35 condemnation proceedings, the corporation shall cause a survey and map
36 to be made of the property to be condemned and file the same in its
37 office. There shall be annexed thereto a certificate, executed by such
38 officer or employee as the corporation may designate, stating that the
39 property described in such survey and map is necessary for corporate
40 purposes.
41 5. The corporation shall prioritize the acquisition of real property
42 for construction or conversion into a residential project based on a
43 rubric, to be promulgated by the corporation, containing criteria that
44 include the regional housing needs of such community, as determined by
45 the corporation in coordination with the department of housing and
46 community renewal. In prioritizing the acquisition of any individual
47 site or property, the corporation may further consider: the potential
48 number of permanently affordable housing units that could be created by
49 such acquisition or through any project on such site; the feasibility of
50 any potential project on such site, which for the purposes of this act
51 shall mean an assessment of the comparative and holistic project costs,
52 challenges, objectives, and timeline associated with the development of
53 a project or part thereof; associated greenhouse gas emissions; and
54 proximity to forms of public or multi-modal transit.
55 6. The corporation shall develop policies and procedures for engaging
56 with local community members, elected officials, and other leaders in
A. 9088 15
1 the determination of project sites and the evaluation of development
2 proposals and shall incorporate community feedback into the development
3 of project proposals.
4 7. The corporation shall perform an environmental hazard and housing
5 quality inspection at the site of any proposed acquisition, prior to the
6 closing of any sale or conveyance of title to the corporation, to estab-
7 lish the property's conditions, rehabilitation needs, and decarboniza-
8 tion potential. Such inspection shall further identify the property's
9 level of occupancy, potential suitability for redevelopment, and a
10 review, where applicable, of documented code violations and recent
11 construction, upgrades, or modifications. At the corporation's
12 discretion, such inspections may be performed by any agent or employee
13 of the corporation or one of its subsidiaries, including any private
14 firm contracted by the corporation for the purposes of such inspection
15 and review.
16 8. Notwithstanding any law to the contrary, the corporation shall
17 qualify as, and may act in the capacity of, a qualified purchaser or
18 fiscal sponsor on behalf of tenants of any building, or any tenant
19 organization representing such tenants, who seek to purchase such build-
20 ing from its current owner, through exercising a right of first refusal
21 or by any other lawful means, and shall create a process therefor;
22 provided, however, that such a purchase on behalf of tenants or a tenant
23 organization representing such tenants shall occur on the condition that
24 such building enters into the corporation's portfolio of permanently
25 affordable residential projects, with all conditions applicable thereto.
26 9. Notwithstanding any state or local law to the contrary, the corpo-
27 ration shall have priority in the acquisition of properties from a land
28 bank created pursuant to article sixteen of the not-for-profit corpo-
29 ration law for the purposes of any project.
30 10. The corporation shall have the authority to purchase or receive
31 tax liens on any real property sold by any governmental entity or poli-
32 tical subdivision of the state, with or without consideration. Upon
33 receipt of tax liens from such entity, the corporation shall take all
34 steps necessary to prevent the involuntary displacement of any existing
35 residents of the property under lien.
36 11. The corporation may acquire distressed properties in accordance
37 with the terms and provisions of section nine of this act.
38 § 8. Clearinghouse. The corporation shall establish a clearinghouse to
39 facilitate the execution of its mandate pursuant to this act. The clear-
40 inghouse shall aggregate and make publicly available information related
41 to real estate assets held by the corporation, including without limita-
42 tion residential projects available to the public for occupancy and
43 opportunities for contractors, housing companies, and other interested
44 parties to submit bids for projects or pre-qualify for future projects,
45 and for the submission of offers of sale pursuant to section nine of
46 this act. Prospective tenants shall be able to submit relevant documen-
47 tation on the clearinghouse in order to apply for occupancy of an avail-
48 able or soon-to-be-available dwelling unit in any residential project
49 owned by the corporation. The clearinghouse shall be accessible by means
50 of a public website and on such website the corporation shall maintain a
51 portal for use by residents and publish other information as may be
52 useful, convenient or in the public interest.
53 § 9. Authority opportunity to purchase. 1. Definitions. For the
54 purposes of this section, the following terms shall have the following
55 meanings, unless otherwise expressly stated or the context or subject
56 matter otherwise requires:
A. 9088 16
1 a. "Sale" shall mean, but not be limited to:
2 (i) the execution of any agreement pursuant to which the owner of the
3 property agrees to some, but not all, of the following:
4 (1) Relinquishing possession of the property;
5 (2) Extending an option to purchase the property for a sum certain at
6 the end of the assignment, lease, or encumbrance and providing that a
7 portion of the payments received pursuant to the agreement is to be
8 applied to the purchase price;
9 (3) Assigning all rights and interests in all contracts that relate to
10 the property;
11 (4) Requiring that the costs of all taxes and other government charges
12 assessed and levied against the property during the term of the agree-
13 ment are to be paid by the lessee either directly or through a surcharge
14 paid to the owner;
15 (5) Extending an option to purchase an ownership interest in the prop-
16 erty, which may be exercised at any time after execution of the agree-
17 ment but which shall be exercised before the expiration of the agree-
18 ment; or
19 (6) Requiring the assignee or lessee to maintain personal injury and
20 property damage liability insurance on the property that names the owner
21 as the additional insured.
22 (ii) (1) A master lease which meets some, but not all, of the criteria
23 described in subparagraph (i) of this paragraph or which is similar in
24 effect; and
25 (2) The transfer of an ownership interest in a corporation, partner-
26 ship, limited liability company, association, trust, or other entity
27 which owns a property as its sole or principal asset, which, in effect,
28 results in the transfer of the property pursuant to subparagraph (i) of
29 this paragraph. For the purposes of this clause, the term "principal
30 asset" means the value of the accommodation relative to the entity's
31 other holdings.
32 b. Notwithstanding anything herein to the contrary, "sell" or "sale"
33 shall not include:
34 (i) A transfer, even though for consideration, by a decedent's estate
35 to members of the decedent's family if the consideration arising from
36 the transfer will pass from the decedent's estate to, or solely for the
37 benefit of, charity. For purposes of this subparagraph, "members of the
38 decedent's family" means:
39 (1) A surviving spouse or domestic partner of the decedent, lineal
40 descendants of the decedent, or spouses of lineal descendants of the
41 decedent;
42 (2) A trust for the primary benefit of the persons listed in clause
43 (1) of this subparagraph; and
44 (3) A partnership, corporation, or other entity controlled by the
45 individuals listed in clause (1) of this subparagraph or the trust
46 described in clause (2) of this subparagraph;
47 (ii) An inter-vivos transfer, even though for consideration, between
48 spouses, parent and child, siblings, grandparent and grandchild, or
49 domestic partners;
50 (iii) A transfer of legal title or an interest in an entity holding
51 legal title to a property pursuant to a bona fide deed of trust or mort-
52 gage, and thereafter any transfer by foreclosure sale or deed in lieu of
53 foreclosure pursuant to a bona fide deed of trust or mortgage;
54 (iv) Any transfer of a property directly caused by a change in the
55 form of the entity owning the property, provided that the transfer is
56 without consideration;
A. 9088 17
1 (v) The transfer of interests in a partnership or limited liability
2 company that owns the property as its sole or principal asset; provided,
3 that the sole purpose of the transfer is to admit one or more limited
4 partners or investor members who will make capital contributions and
5 receive tax benefits pursuant to 26 U.S.C. § 42, or a comparable
6 program.
7 c. "Bona fide offer of sale" means an offer of sale for a property or
8 interest therein that is either for a price and other material terms
9 that are at least as favorable as those accepted by a purchaser in an
10 arm's length third-party contract, or in the absence of an arm's length
11 third-party contract, an offer of sale with a price and other material
12 terms comparable to that at which a willing seller and a willing buyer
13 would sell and purchase the property, or the appraised value.
14 d. "Matter-of-right" means a land use, development density, or struc-
15 tural dimension to which a property owner is entitled by current zoning
16 regulations or law.
17 e. "Highest and best use" means the reasonably probable legal use of a
18 property that is physically possible, appropriately supported, and
19 financially feasible and that results in the highest value of the prop-
20 erty.
21 2. Notwithstanding any law to the contrary, with respect to a
22 distressed property containing three or more dwelling units that is not
23 owned or managed by a federal, state, or local government or tribal
24 authority, before the owner may sell the property, or issue a notice to
25 vacate for purposes of demolition or discontinuance of use as a housing
26 accommodation, and before a mortgagee or obligee may foreclose on such
27 property or the mortgage, lien, or encumbrance on such property, and
28 before a tax district may commence an in rem proceeding against such
29 property, the owner, mortgagee, obligee, tax district, or other fore-
30 closing party shall provide the corporation an opportunity to purchase
31 the property or the debt securing such property, along with rights and
32 title related thereto, at a price and upon terms that represent a bona
33 fide offer of sale. The corporation shall have a right of first refusal
34 on such sale or conveyance. An offer of sale submitted pursuant to this
35 section shall be submitted on a form to be promulgated by the corpo-
36 ration and shall contain all information as therein may be required. The
37 corporation shall issue written acknowledgement of receipt of an offer
38 of sale.
39 a. In order to exercise its right of first refusal, upon a determi-
40 nation by the corporation that a property may be useful for the corpo-
41 ration's purposes, the corporation shall notify the owner with a written
42 statement of interest certified by the president of the corporation
43 within thirty days of receipt of the offer of sale.
44 b. The corporation shall have not less than one hundred twenty days
45 from receipt of the offer of sale to negotiate a contract for sale.
46 Both parties shall bargain in good faith. For every day of delay in
47 receiving relevant information as required by this section, the negoti-
48 ation period shall be extended by one day. The following constitute
49 prima facie evidence of bargaining without good faith:
50 (i) The failure to offer a price or term to the corporation that is at
51 least as favorable as that offered to a third-party within the periods
52 of time specified by this section without a reasonable justification for
53 such failure;
54 (ii) The failure to make a contract with the corporation which
55 substantially conforms with the price and terms of a third-party
A. 9088 18
1 contract within the periods of time specified by this section without a
2 reasonable justification for such failure; or
3 (iii) The intentional failure of either party to comply with the
4 provisions of this act.
5 (iv) In the event of a transfer of interest in a partnership or corpo-
6 ration or in the event of a master lease or agreement that is considered
7 a sale within the meaning of this section, but which does not involve a
8 transfer of record title to the real property, the owner shall be
9 bargaining in good faith if the owner offers the corporation the oppor-
10 tunity to acquire record title to the real property or offers the corpo-
11 ration the opportunity to match the type of transfer or agreement
12 entered into with the third-party. With respect to either type of offer,
13 all provisions of this section apply;
14 (v) The owner shall not require the corporation to pay a deposit of
15 more than five percent of the contract sales price in order to make a
16 contract.
17 c. If the owner sells or contracts to sell the property to a third-
18 party for a price equal to or greater than ten percent less than the
19 price offered to the corporation or for other terms which would consti-
20 tute bargaining without good faith, the owner shall comply anew with all
21 requirements of this section.
22 d. Upon the execution of a contract for sale, the corporation shall
23 have sixty days to complete settlement.
24 3. Whenever an offer of sale is made pursuant to this section, the
25 following terms shall apply:
26 a. The sales price contained in the offer of sale shall be less than
27 or equal to a price and other material terms comparable to that at which
28 a willing seller and a willing buyer would sell and purchase the proper-
29 ty, or the appraised value of the property as determined pursuant to
30 this subdivision.
31 b. An appraised value shall only be based on rights an owner has as a
32 matter-of-right as of the date of the offer, including any existing
33 right an owner may have to convert the property to another use;
34 provided, however, that an appraised value may take into consideration
35 the highest and best use of the property.
36 c. The owner of the property shall have the burden of proof to estab-
37 lish that an offer of sale is a bona fide offer of sale.
38 d. The corporation may challenge the offer presented by an owner as
39 not being a bona fide offer of sale and request a determination of the
40 appraised value of the property. The owner and the corporation shall
41 thereafter have fourteen days to jointly select an appraiser for such
42 property. If the owner and corporation are unable to jointly agree on an
43 appraiser, the corporation may appoint an independent third-party
44 appraiser from a list of pre-qualified entities within seven days, which
45 appraiser shall be a state certified real estate appraiser or state
46 licensed real estate appraiser with a certificate or license sufficient
47 to appraise the property in question. The owner and the corporation
48 shall pay one-third and two-thirds of the cost of the appraisal, respec-
49 tively. The owner shall give such appraiser unfettered access to the
50 property for the purposes of such appraisal and shall provide all infor-
51 mation requested by the appraiser for the valuation and appraisal of the
52 property within seven days, upon a request for information by the
53 appraiser. The appraisal shall be conducted expeditiously in accordance
54 with standard industry practices. Beginning with the day upon which an
55 appraisal is requested pursuant to this paragraph, for each day until
56 such appraisal is complete, the period of negotiation established by
A. 9088 19
1 paragraph b of subdivision one of this section shall be extended by one
2 day.
3 e. The determination of the appraised value of the property made by
4 any appraiser pursuant to paragraph d of this subdivision shall become
5 the sale price of the bona fide offer of sale for the property unless:
6 (i) the owner or foreclosing party and the corporation agree upon a
7 different sale price of the property;
8 (ii) the owner or foreclosing party withdraws the offer of sale or
9 discontinues the action or proceeding to foreclose on such property,
10 vacate or demolish such property, or any other action triggering the
11 corporation's right of first refusal pursuant to subdivision one of this
12 section; provided, however, that the owner or foreclosing property shall
13 reimburse the corporation for the corporation's share of the cost of an
14 appraisal conducted pursuant to paragraph d of this subdivision.
15 § 10. Tenants rights and protections. 1. In any municipality or county
16 with a rent guidelines board created pursuant to the emergency tenant
17 protection act of nineteen seventy-four, residential projects owned by
18 the corporation and operated as rentals shall be placed under the juris-
19 diction of the rent stabilization law and all local laws and codes
20 applicable thereto. Such residential projects shall be registered with
21 relevant agencies as rent stabilized and residents of such residential
22 projects shall be proffered rent stabilized leases and entitled to all
23 the rights and protections thereof. Notwithstanding any other provision
24 of this act, increases in rents charged for a dwelling unit in a resi-
25 dential project owned by the corporation and subject to rent stabiliza-
26 tion shall not exceed increases permitted by the applicable rent guide-
27 lines board for that year.
28 2. In any municipality or county that does not have a rent guidelines
29 board created pursuant to the emergency tenant protection act of nine-
30 teen seventy-four, the board of the corporation shall promulgate,
31 through regulation, a list of rights and protections applicable to
32 tenants of residential projects owned by the corporation and operated as
33 rentals, which list shall be substantially similar to rights and
34 protections afforded to residents of housing units subject to rent
35 stabilization pursuant to the emergency tenant protection act of nine-
36 teen seventy-four, namely including the right to lease renewal on terms
37 of one or two years at the tenant's discretion, protection from eviction
38 without just cause, and the right to receive timely repairs and
39 services. Such rights and protections shall be enumerated in plain
40 language in residential leases to any units entitled to such rights and
41 protections.
42 3. In any dwelling unit or residential project designated as perma-
43 nently affordable, any increase in annual rents or fees greater than two
44 percent per year shall be reviewed and approved by the corporation,
45 which shall reject any application for an annual increase greater than
46 two percent if such increase is not necessary to meet present or antic-
47 ipated maintenance and operating expenses for such project and such
48 expenses are deemed superfluous.
49 4. In a permanently affordable unit, the initial annual rent or sum
50 of fees charged to a household shall be set at twenty-five percent of
51 such household's annual income.
52 5. The corporation shall neither demand nor permit any requirement
53 that the income of residents be recertified after residents have occu-
54 pied a unit; provided, however, that the addition of any new resident to
55 a unit shall require the certification of the income of such resident.
A. 9088 20
1 6. Residents shall be afforded the opportunity to correct, clarify,
2 supplement, or defend any documents or information submitted in relation
3 to income certification, residency applications, or other requirements,
4 if the accuracy or validity of such documents or information comes into
5 question.
6 7. The corporation shall create an internal bureau for the administra-
7 tive filing and resolution of resident complaints and petitions. Such
8 complaints or petitions shall be shared with and reviewed by any elected
9 resident body representing residents in the residential project whence
10 such complaint or petition originated, and such body shall issue a
11 recommendation and opinion thereupon. Such complaint or petition shall
12 then be transmitted to an examiner employed by the corporation who shall
13 consider the recommendation received by the elected resident body and
14 render an initial decision upon such recommendation, the facts, and the
15 rules and regulations of the corporation. A tenant may appeal an unsat-
16 isfactory decision received in response to such complaint or petition to
17 a supervisor of the bureau who may adjudicate such appeal on advice of
18 counsel. A final appeal may be taken to an administrative law judge
19 employed by the corporation, whereupon any further challenge to a deci-
20 sion rendered by the corporation shall be made in a court of competent
21 jurisdiction pursuant to article seventy-eight of the civil practice law
22 and rules. Copies of any decisions rendered by the corporation shall be
23 transmitted to the complainant or petitioner as well as to the elected
24 resident body of the residential project whence such complaint or peti-
25 tion originated.
26 a. The corporation shall promulgate, through regulation, a process for
27 the receipt and timely resolution of such complaints or petitions, and
28 the corporation shall utilize information gained through complaints and
29 petitions to improve its own rules and regulations as well as relevant
30 operations within its residential projects, both through a holistic
31 review of complaints and petitions received and in direct response to
32 specific complaints or petitions where such improvements are feasible.
33 b. The corporation may proscribe certain matters from adjudication
34 through the bureau where such matters are not a subject governed by the
35 corporation's rules and regulations, are deemed irrelevant to the corpo-
36 ration's operations, or where such matters are governed or controlled by
37 statutes outside the scope of this act or inapplicable to the corpo-
38 ration.
39 c. The subjects of complaints shall be limited to allegations against
40 the corporation, its subsidiaries, or any of its employees, agents, or
41 contractors for any violation of the corporation's own rules and regu-
42 lations, agreements, or codes of conduct.
43 d. The subjects of petitions shall be limited to requests for improve-
44 ments or interventions in any residential project by the corporation,
45 requests to change contractors and the basis thereupon for such change,
46 and suggestions for the improvement of any service or operation by the
47 corporation. The denial of any petition in whole or part shall not be
48 with prejudice against any suggestion or request included in such peti-
49 tion.
50 8. The corporation shall biannually survey residents of projects owned
51 by the corporation regarding its performance, residents' quality of
52 life, and other subjects relevant to the corporation's operations;
53 provided, however, that responses to such surveys shall be voluntary and
54 anonymous. The aggregated data and findings of such surveys shall be
55 made publicly accessible on the corporation's website.
A. 9088 21
1 § 11. New and converted residential housing. 1. The corporation shall
2 create programs for the construction of new high-quality, permanently
3 affordable residential projects, the acquisition, rehabilitation, and
4 conversion of existing real property into high-quality permanently
5 affordable residential projects, and the construction of special purpose
6 housing projects. The corporation shall affix permanently binding
7 affordability covenants into deeds to all properties it acquires and
8 shall retain title to such real properties for the duration of its
9 corporate existence. Such affordability covenants shall regulate permis-
10 sible rental increases and the conditions upon which equity may be taken
11 in a sale of an interest in such property and shall limit the taking of
12 equity in such circumstances. All new and converted residential projects
13 shall be designated as permanently affordable.
14 2. Within these programs, the corporation shall, at its discretion and
15 in its best judgment, designate some projects to be leased by qualified
16 housing companies and others to be leased as rentals by the corporation
17 or one of its subsidiaries. For any project selected to be operated by a
18 housing company, the corporation may partner with local financial insti-
19 tutions to originate affordable financing for the mortgage of shares to
20 prospective residents of such residential project. The corporation shall
21 sell renewable ninety-nine year leasehold interests to qualified housing
22 companies and shall contract property management services for residen-
23 tial projects operated as rentals and leased directly by the corporation
24 or its subsidiaries.
25 3. The corporation may designate new projects as mixed-income or one
26 hundred percent affordable. For residential projects acquired by the
27 corporation that are occupied at the point of sale or transfer, the
28 corporation may elect not to impose mixed-income or one hundred percent
29 affordable designations where the imposition of such requirements would
30 conflict with rents charged and paid by tenants already occupying such
31 project or otherwise risk the financial viability of such acquisition.
32 4. For real properties acquired by the corporation that do not meet
33 the corporation's energy efficiency and housing quality standards, the
34 corporation shall create a plan to bring such property into compliance
35 by means of an environmental hazard and housing quality retrofit. If
36 such property is occupied at the point of sale or conveyance, the corpo-
37 ration shall create such plan in consultation with tenants currently
38 occupying such building or any elected resident body representing such
39 tenants.
40 5. In soliciting bids for construction and rehabilitation contracts,
41 and in awarding such contracts, the corporation shall consider, without
42 limitation: community needs and demands; architectural and historical
43 congruity and sensitivity of design with the neighborhood in which such
44 structure will be situated; innovation in design; the inclusion of civic
45 projects in such design; the number of permanently affordable units
46 created; greenhouse gas emissions; and any other factors warranted by
47 the type of project or contract delivery utilized.
48 6. Across the portfolio of the corporation, no more than one-third of
49 the corporation's units shall be designated for households earning more
50 than one hundred percent of the area median income, and no less than
51 twenty-five percent may be designated for households earning thirty
52 percent or less of the area median income.
53 7. Projects undertaken by the corporation may be financed with:
54 a. The proceeds of bonds or notes issued by the corporation, provided
55 to each project in the form of a repayable loan at an interest rate
56 sufficient to repay creditors. The loan shall be sized to ensure a debt
A. 9088 22
1 service coverage ratio of no less than one and fifteen hundredths from
2 the project's underwritten cash flow, including the anticipated payments
3 from any vouchers issued by the corporation to such project or received
4 by any other source.
5 b. A subordinate grant from the corporation sized to fill the gap
6 between the project's cost and the bond-financed loan authorized pursu-
7 ant to paragraph a of this subdivision. Such grant shall be considered a
8 permanent contribution by the corporation to such project.
9 c. Additional financing from outside of the corporation's budget,
10 provided that:
11 (i) Such financing does not place a lien on title to the property;
12 (ii) Such financing does not place financial obligations on the prop-
13 erty that would unduly burden the corporation; and
14 (iii) Such financing does not place a regulatory burden on the proper-
15 ty inconsistent with the corporation's rules, regulations, by-laws, or
16 related provisions of this act.
17 d. Any other financing from the corporation's budget necessary to
18 ensure the successful completion of the project.
19 8. The corporation shall consult with the state department of housing
20 and community renewal and the New York state energy research and devel-
21 opment authority in the development of the corporation's energy effi-
22 ciency and housing quality standards, processes for completing environ-
23 mental hazard and housing quality retrofits, and the identification of
24 projects that may be eligible for grants or assistance from either or
25 both agencies. The department of economic development shall consult
26 with the corporation to anticipate housing needs created by projects
27 sponsored by the department or its subsidiaries and to create plans to
28 meet such needs where necessary.
29 9. It shall be unlawful to knowingly submit false documents or infor-
30 mation to the corporation for any purpose, and the corporation may refer
31 fraud to appropriate authorities at its discretion. It shall also be
32 unlawful to use any dwelling unit or project belonging to the corpo-
33 ration for the purposes of short-term rentals.
34 § 12. Compliance with building codes and local ordinances. 1. The
35 corporation's projects shall conform to building codes and standards of
36 the state and to the corporation's energy efficiency and housing quality
37 standards. A list of applicable standards shall be issued by the corpo-
38 ration and updated regularly.
39 2. Any local law, resolution, or ordinance regulating height, bulk,
40 floor to area ratio, setback, lot size, parking regulations, building
41 codes, permitting, land use, or other related matters shall not apply to
42 any project of the corporation that is designated as permanently afford-
43 able, mixed-income, one hundred percent affordable, or as special
44 purpose housing; provided, however, that any local law, resolution, or
45 ordinance designating land for manufacturing purposes shall not be
46 abridged by the corporation.
47 3. Any local law, resolution, or ordinance prohibiting or regulating
48 mixed-use development or construction shall not apply to any project of
49 the corporation that is designated as permanently affordable, mixed-in-
50 come, one hundred percent affordable, or as special purpose housing.
51 § 13. Resident democracy. 1. Residents of every residential project
52 owned by the corporation shall elect a body of representatives from
53 among the residents of the residential project pursuant to the corpo-
54 ration's voting process, by-laws, and rules and regulations promulgated
55 and maintained by the corporation for the creation of elected resident
56 bodies. Each adult member of each household in such residential project
A. 9088 23
1 shall be guaranteed exactly one vote. The corporation, through regu-
2 lation, shall determine what proportion of eligible adults in residen-
3 tial projects must cast a vote in order for the results of such election
4 to be valid.
5 2. An elected resident body representing tenants in any residential
6 project shall reserve the right to terminate the contract for any prop-
7 erty management service at such residential project through approval of
8 a written resolution by a majority of a quorum of such elected resident
9 body. Such elected resident body may hire another property management
10 service from a list of qualified contractors promulgated by the corpo-
11 ration through an identical process upon terms the corporation deems
12 acceptable.
13 3. The corporation shall create a process whereby residents of any
14 residential project owned by the corporation may apply to be elected to
15 an open resident position on the corporation's board. Candidates shall
16 be elected at-large by all eligible residents within residential
17 projects belonging to the corporation's portfolio.
18 § 14. Contracts with the corporation. 1. No member, officer, employee
19 or agent of the corporation shall profit from contracts entered into by
20 the corporation, and potential conflicts of interest between any member,
21 officer, employee or agent of the corporation shall be reported, in a
22 form to be promulgated by the corporation, to its board and counsel.
23 2. Construction performed under a contract entered into by the corpo-
24 ration, a subsidiary of the corporation, or any third-party acting on
25 behalf of the corporation or a subsidiary of the corporation pursuant to
26 this act shall be deemed a public work to be performed in accordance
27 with the provisions of article eight of the labor law, including without
28 limitation the prevailing wage requirements set forth in section two
29 hundred twenty of the labor law and the reporting, monitoring, and
30 enforcement provisions of article eight of the labor law, except for any
31 projects receiving federal aid which are already required to pay
32 prevailing wages pursuant to federal requirements.
33 3. Any contract entered into through a competitive sealed bidding
34 process or pursuant to any form of contract delivery enumerated in this
35 section, and undertaken pursuant to a project labor agreement, shall
36 include a clause requiring the selected alternative project delivery
37 contractor or the contractor selected on the basis of its sealed bid to
38 obligate every tier of contractor working on the public work to comply
39 with the project labor agreement required pursuant to this subdivision
40 and shall include project labor agreement compliance monitoring and
41 enforcement provisions consistent with any such project labor agreement.
42 4. Construction or building services performed under a contract
43 entered into by the corporation, a subsidiary of the corporation, or a
44 third-party acting on behalf of the corporation or a subsidiary of the
45 corporation pursuant to this act may be exempted by the corporation from
46 the prevailing wage requirements of article eight of the labor law
47 through the use of a project labor agreement. Any project with a project
48 cost of ten million dollars or more shall require compliance by the
49 corporation with section two hundred twenty-two of the labor law.
50 5. a. In each contract for construction, reconstruction, alteration,
51 repair, improvement or maintenance of a project undertaken pursuant to
52 this act, the corporation shall ensure that such contract contains a
53 provision that the structural iron and structural steel used or supplied
54 in the performance of the contract or any subcontract thereto and that
55 is permanently incorporated into the public work, shall be produced or
56 made in whole or substantial part in the United States, its territories
A. 9088 24
1 or possessions. In the case of a structural iron or structural steel
2 product, all manufacturing shall take place in the United States, from
3 the initial melting stage through the application of coatings, except
4 metallurgical processes involving the refinement of steel additives. For
5 the purposes of this subdivision, "permanently incorporated" shall mean
6 an iron or steel product that is required to remain in place at the end
7 of the project contract, in a fixed location, affixed to the public work
8 to which it was incorporated. Iron and steel products that are capable
9 of being moved from one location to another are not permanently incorpo-
10 rated into a public work.
11 b. The provisions of paragraph a of this subdivision shall not apply
12 if the corporation determines, in its sole discretion, that the
13 provisions would not be in the public interest, would result in unrea-
14 sonable costs, or that obtaining such steel or iron in the United States
15 would increase the cost of the contract by an unreasonable amount, or
16 such iron or steel, including without limitation structural iron and
17 structural steel, cannot be produced or made in the United States in
18 sufficient and reasonably available quantities and of satisfactory qual-
19 ity.
20 6. The corporation shall establish and maintain procurement policies
21 that shall set forth the methods and procedures by which the corporation
22 shall procure contracts for goods and services, including but not limit-
23 ed to services for design, development, construction, reconstruction,
24 improvement, modernization, rehabilitation, repair, maintenance, build-
25 ing services, and operations related to property owned or leased by the
26 corporation, in a manner consistent with the provisions of this act.
27 Such policies shall specifically include:
28 a. A competitive sealed bidding process for the award of contracts in
29 which sealed bids are publicly solicited or solicited from a list of
30 prequalified bidders and opened and a contract is awarded to the lowest
31 responsive, responsible bidder;
32 b. Processes for awarding contracts for goods and services using
33 alternatives to competitive sealed bidding where competitive sealed
34 bidding is not practicable or not advantageous, in which case the corpo-
35 ration shall use the most competitive method of procurement that is
36 appropriate under the circumstances to select the proposer offering the
37 best value to the corporation and the residents of the project;
38 c. A process for prequalifying bidders and proposers based on crite-
39 ria, which may include an entity's experience, past performance, ability
40 to undertake work, financial capability, responsibility, reliability and
41 status as a certified minority- or women-owned business enterprise
42 pursuant to article fifteen-A of the executive law or section thirteen
43 hundred four of the New York city charter;
44 d. Reasonable procedures to secure the meaningful participation of
45 minority- and women-owned business enterprises in the corporation's
46 procurement process. The corporation may use the same measures to
47 enhance minority- and women-owned business enterprise participation as
48 are available pursuant to applicable local law, including section 6-129
49 of the administrative code of the city of New York;
50 e. Processes for awarding alternative project delivery contracts, in a
51 manner consistent with the terms of section fifteen of this act;
52 f. Procedures for the fair and equitable resolution of contract
53 disputes, for appeals of responsiveness and responsibility determi-
54 nations by the corporation, and for appeals of prequalification determi-
55 nations;
A. 9088 25
1 g. A process for making purchases off contracts procured by public
2 agencies and public entities, provided that such contract exists between
3 a vendor and (i) the United States General Services Administration, (ii)
4 the state of New York or any of its political subdivisions, (iii) anoth-
5 er public authority or public corporation of the state, (iv) another
6 public housing agency or public housing authority, or (v) any purchasing
7 cooperative where the lead purchasing entity is any of the foregoing,
8 provided that in any case when the corporation under this paragraph
9 determines that obtaining such item thereby would be in the public
10 interest and provide for greater economy and efficiency and sets forth
11 the reasons for such determination. Such rationale shall include, but
12 not be limited to, a determination of need, a consideration of the
13 procurement method by which the contract was awarded, an explanation why
14 a competitive procurement or the use of a centralized contract let by
15 the commissioner of the office of general services is not in the best
16 interest of the corporation, and the reasonableness of cost; and
17 h. A mechanism for procurements without a formal competitive process
18 where:
19 (i) The existence of an emergency involving danger to life, safety or
20 property requires immediate action and cannot await a competitive proc-
21 ess for goods or services to be purchased, including, but not limited
22 to, services for construction, reconstruction, rehabilitation, alter-
23 ation, renovation, maintenance or repairs, which are essential to effi-
24 cient operation or the adequate provision of service by the corporation
25 and as a consequence of unforeseen circumstance such purchase cannot
26 await a competitive process;
27 (ii) A procurement's value does not exceed fifty thousand dollars;
28 (iii) The corporation receives no responsive bids or only a single
29 responsive bid in response to a solicitation for competitive bids or
30 proposals;
31 (iv) A procurement's value does not exceed five hundred thousand
32 dollars and is made from a business certified as a minority- or women-
33 owned business enterprise pursuant to article fifteen-A of the executive
34 law and section thirteen hundred four of the New York city charter.
35 Nothing in this paragraph shall be construed to require that such busi-
36 ness be concurrently certified as minority- or women-owned business
37 enterprises under article fifteen-A of the executive law and section
38 thirteen hundred four of the New York city charter to be awarded such a
39 contract;
40 (v) A duly appointed representative of the corporation determines in
41 writing that, based on a market analysis, only one source for the
42 required goods or services, including but not limited to, services for
43 construction, reconstruction, rehabilitation, alteration, renovation,
44 maintenance and repairs, are available; or
45 (vi) The contract is a contract between the corporation and another
46 governmental entity.
47 i. The provisions of sections one hundred six-b of the general munici-
48 pal law and one hundred fifty-one-a of the public housing law shall
49 apply to the corporation.
50 j. The corporation shall be required to comply with any procurement
51 procedure set forth in this act unless a federal requirement conflicts
52 with such procedure.
53 § 15. Alternative project delivery contracts. 1. Notwithstanding any
54 provision of law to the contrary, including but not limited to section
55 seventy-two hundred ten of the education law, for any project undertaken
56 pursuant to a project labor agreement the corporation, a subsidiary of
A. 9088 26
1 the corporation, or a third-party acting on behalf of the corporation or
2 a subsidiary of the corporation may use alternative project delivery
3 contracts.
4 a. A contractor selected by the corporation to enter into an alterna-
5 tive project delivery contract may be selected through a two-step meth-
6 od, as follows:
7 (i) Step one. The first step shall be the generation of a list of
8 responding entities that have demonstrated the general capability to
9 perform the alternative project delivery contract. Such list shall
10 consist of a specified number of responding entities, as determined by
11 the corporation, and shall be generated based upon the corporation's
12 review of responses to a publicly advertised request for qualifications.
13 The corporation's request for qualifications shall include a general
14 description of the public work, the maximum number of responding enti-
15 ties to be included on such list, the selection criteria to be used and
16 the relative weight of each criteria in generating such list. Such
17 selection criteria shall include the qualifications and experience of
18 the entity or team of entities, organization, demonstrated responsibil-
19 ity, ability of the entity or team of entities or of a member or members
20 of the entity or team of entities to comply with applicable require-
21 ments, including the provisions of articles one hundred forty-five, one
22 hundred forty-seven and one hundred forty-eight of the education law,
23 past record of compliance with the labor law, and such other qualifica-
24 tions the corporation deems appropriate, which may include but are not
25 limited to project understanding, financial capability and record of
26 past performance. The corporation shall evaluate and rate all responding
27 entities to the request for qualifications. Based upon such ratings, the
28 corporation shall list the responding entities that shall receive a
29 request for proposals in accordance with subparagraph (ii) of this para-
30 graph. To the extent consistent with applicable federal law, the corpo-
31 ration shall consider, when awarding any contract pursuant to this
32 section, the participation of: (1) responding entities that are certi-
33 fied as minority- or women-owned business enterprises pursuant to arti-
34 cle fifteen-A of the executive law, or certified pursuant to local law
35 as minority- or women-owned business enterprises; (2) small business
36 concerns identified pursuant to subdivision (b) of section one hundred
37 thirty-nine-g of the state finance law; and (3) business concerns that
38 provide economic opportunities for low and very low-income persons in
39 accordance with section three of the federal housing and urban develop-
40 ment act of nineteen hundred sixty-eight, as amended, or chapter seven-
41 ty-nine of the New York city charter, as applicable, or any successor
42 provision. In addition, nothing in this section shall be deemed to
43 supersede any prequalification policies adopted by the corporation
44 pursuant to this section.
45 (ii) Step two. The second step shall be the selection of the proposal
46 which is the best value to the corporation. The corporation shall issue
47 a request for proposals to the responding entities listed pursuant to
48 subparagraph (i) of this paragraph. If such a responding entity consists
49 of a team of separate entities, the entities that comprise such a team
50 shall remain unchanged from the responding entity as listed pursuant to
51 subparagraph (i) of this paragraph unless otherwise approved by the
52 corporation. The request for proposals shall set forth the public work's
53 scope of work, and other requirements, as determined by the corporation,
54 which may include separate goals for work under the contract to be
55 performed by businesses certified as minority- or women-owned business
56 enterprises pursuant to article fifteen-A of the executive law, or
A. 9088 27
1 certified pursuant to local law as minority- or women-owned business
2 enterprises, or goals established pursuant to section three of the
3 federal housing and urban development act of nineteen hundred sixty-
4 eight, as amended, or any successor provision, if applicable. The
5 request for proposals shall also specify the criteria to be used to
6 evaluate the responses and the relative weight of each of such criteria.
7 Such criteria shall include: the quality of the proposal's solution; the
8 qualifications and experience of the proposer; the proposal's cost,
9 which may include factors that may be considered individually or in the
10 aggregate, such as the proposed cost of design phase work, the proposed
11 cost of construction phase work, or cost factors relating to
12 construction phase work, as applicable; and other factors deemed perti-
13 nent by the corporation, which may include, but shall not be limited to,
14 the proposal's manner and schedule of project implementation, the
15 proposer's ability to complete the work in a timely and satisfactory
16 manner, maintenance costs of the completed public work, maintenance of
17 traffic approach, and community impact. The corporation may engage in
18 negotiations or other discussions with all qualified vendors that have
19 expressed interest, provided that the corporation maintains a written
20 record of the conduct of negotiations or discussions and the basis for
21 every determination to continue or suspend negotiations, and further
22 provided that if the corporation determines for a particular contract or
23 for a particular type of contract that it is in the corporation's best
24 interest to negotiate or enter into discussions with fewer proposers, it
25 may make such a determination in writing. If the corporation enters into
26 such negotiations, the corporation shall allow all proposers to revise
27 their proposals upon conclusion of negotiations, and the corporation
28 shall evaluate the proposers' revised proposals using the criteria
29 included in the request for proposals. Any contract awarded pursuant to
30 this section shall be awarded to a responsive and responsible proposer,
31 which, in consideration of these and other specified criteria deemed
32 pertinent, offers the best value as determined by the corporation. The
33 request for proposals shall include a statement that proposers shall
34 designate in writing those portions of the proposal that contain trade
35 secrets or other proprietary information that are to remain confiden-
36 tial, so that the material designated as confidential shall be readily
37 separable from the proposal. Nothing in this subdivision shall be
38 construed to prohibit the corporation from negotiating final contract
39 terms and conditions including cost. All proposals submitted shall be
40 scored according to the criteria listed in the request for proposals and
41 such final scores shall be published on the corporation's website after
42 the date upon which such contract may be implemented.
43 b. The corporation, in awarding an alternative project delivery
44 contract to a contractor offering the best value may use the following
45 types of contracts:
46 (i) A cost-plus not to exceed guaranteed maximum price form of
47 contract in which the corporation shall be entitled to monitor and audit
48 all costs. In establishing the schedule and process for determining a
49 guaranteed maximum price, the contract between the corporation and the
50 contractor shall include terms specifying the price for the design phase
51 of the work, the scope of the work, and any applicable cost factors
52 relating to construction phase work that were included in the contrac-
53 tor's proposal. A fair and reasonable guaranteed maximum price for the
54 construction phase of the work, or portions of the construction phase of
55 the work, may be agreed to as one or more amendments to such contract
56 based on developments in the design of the project that occur after such
A. 9088 28
1 contract is executed. Each guaranteed maximum price amendment shall: (1)
2 describe the scope of the portion of the construction phase work subject
3 to the amendment, the cost of performing such work, and the maximum
4 costs of any contingencies related to such work; (2) include a detailed
5 line item cost breakdown; (3) include a list of all drawings, specifica-
6 tions and other information on which the guaranteed maximum price is
7 based; (4) include the dates of substantial and final completion on
8 which the guaranteed maximum price is based, as applicable; and (5)
9 include a schedule of unit prices. The corporation shall maintain a
10 written record of each guaranteed maximum price amendment, which shall
11 include a summary of the negotiation process and a description of the
12 relevant developments in the design of the project, independent cost
13 estimates prepared by or on behalf of the corporation, as required
14 pursuant to a policy established by the corporation, the contractor's
15 actual cost schedules and unit prices, and any other factors that the
16 corporation considered. If the corporation and the contractor cannot
17 agree upon a guaranteed maximum price for one or more portions of
18 construction phase work, the corporation may direct the contractor to
19 assign all or a portion of the duties and rights under such alternative
20 project delivery contract to another responsive and responsible proposer
21 pursuant to subparagraph (ii) of paragraph a of this subdivision that
22 offered the best value of the remaining proposers and that will agree to
23 accept such assignment. This subparagraph shall not be deemed to
24 prohibit the use of any contract terms or procedures pursuant to any
25 other provision of law, including but not limited to provisions included
26 in this article;
27 (ii) A lump sum contract in which the contractor agrees to accept a
28 set dollar amount for a contract which comprises a single bid without
29 providing a cost breakdown for all costs such as for equipment, labor,
30 materials, as well as such contractor's profit for completing all items
31 of work comprising the public work;
32 (iii) Incentive payments identified in the text of the contract for
33 performance objectives; or
34 (iv) A combination of elements of the contract types authorized pursu-
35 ant to this paragraph.
36 2. All alternative project delivery contracts entered into pursuant to
37 this section shall include a clause requiring that any professional
38 services regulated by articles one hundred forty-five, one hundred
39 forty-seven and one hundred forty-eight of the education law shall be
40 performed and stamped and sealed, where appropriate, by a professional
41 licensed in accordance with the appropriate article.
42 3. The submission of a proposal or responses or the execution of an
43 alternative project delivery contract pursuant to this section shall not
44 be construed to be a violation of section sixty-five hundred twelve of
45 the education law.
46 4. Each alternative project delivery contract entered into by the
47 corporation pursuant to this section shall comply with the objectives
48 and goals relating to the performance of design and construction
49 services by minority- and women-owned business enterprises pursuant to
50 section 6-129 of the administrative code of the city of New York, or,
51 for projects or public works receiving federal aid, applicable federal
52 requirements for disadvantaged business enterprises or minority- and
53 women-owned business enterprises and section three of the federal hous-
54 ing and urban development act of nineteen hundred sixty-eight, as
55 amended, or chapter seventy-nine of the New York city charter, as appli-
56 cable or any successor provision.
A. 9088 29
1 5. a. Notwithstanding any provision of law to the contrary, all rights
2 or benefits, including terms and conditions of employment, and
3 protection of civil service and collective bargaining status of all
4 employees of the corporation solely in connection with the use of an
5 alternative project delivery contract pursuant to this section shall be
6 preserved and protected.
7 b. The use of alternative project delivery contracts pursuant to this
8 section shall not result in the: (i) displacement of any currently
9 employed worker of the corporation or loss of position, including
10 partial displacement such as a reduction in the hours of non-overtime
11 work, wages or employment benefits, or result in the impairment of
12 existing collective bargaining agreements to which the corporation is a
13 party; or (ii) transfer of existing duties and functions related to
14 maintenance and operations currently performed by existing employees of
15 the corporation to a contractor.
16 c. Employees of the corporation serving in positions in newly created
17 titles shall be assigned to the appropriate bargaining unit. Nothing
18 contained in this section shall be construed to affect: (i) the existing
19 rights of employees of the corporation pursuant to an existing collec-
20 tive bargaining agreement; (ii) the existing representational relation-
21 ships among employee organizations representing employees of the corpo-
22 ration; or (iii) the bargaining relationships between the corporation
23 and such employee organizations.
24 d. Without limiting contractors' obligations under alternative project
25 delivery contracts to issue their own initial certifications of substan-
26 tial completion and final completion, public employees of the corpo-
27 ration shall review and determine whether the work performed by contrac-
28 tors is acceptable and has been performed in accordance with the
29 applicable alternative project delivery contracts, and if such public
30 employees so determine, such public employees shall accept contractors'
31 substantial or final completion of the public works as applicable.
32 Performance by public employees of the corporation of any review
33 described in this subdivision shall not be construed to modify or limit
34 contractors' obligations to perform the work in strict accordance with
35 the applicable alternative project delivery contract or the contractors'
36 or any subcontractors' obligations or liabilities under any law.
37 § 16. Technical assistance. The corporation shall create an internal
38 office dedicated to creating educational materials and providing techni-
39 cal assistance to residents of its residential projects, housing compa-
40 nies, tenants, tenant organizations, not-for-profit corporations operat-
41 ing in the state of New York, and the general public concerning resident
42 elections, the organization, management, and operation of housing coop-
43 eratives, community land trusts, and tenant organizations, and the meth-
44 od by which tenants, tenant organizations, or owners of distressed or
45 non-distressed properties may engage with the corporation concerning the
46 acquisition of real property, among other subjects deemed relevant by
47 the corporation. Such assistance shall include standard forms and
48 templates that comply with state law and the corporation's rules and
49 regulations.
50 § 17. Vouchers. In order to provide more deeply affordable housing to
51 residents, the corporation may enter into agreements with the management
52 of residential projects owned by the corporation, whether or not such
53 management is an employee or subsidiary of the corporation or a third-
54 party, for the issuance of vouchers by the corporation to such manage-
55 ment, subject to the conditions of this section. Such vouchers shall be
56 issued to a residential project's management on a monthly basis. Vouch-
A. 9088 30
1 er payments and associated contracts shall be non-transferable and non-
2 assignable and shall remain tied to the dwelling unit for which they
3 were initially issued. Voucher payments shall be used exclusively to
4 defray maintenance and operating costs or debt service payments on such
5 dwelling unit, if any. Any excess remainder between the sum of a vouch-
6 er payment, the rent collected for such unit, and the costs associated
7 with such unit shall be transmitted back to the corporation forthwith.
8 § 18. Additional provisions related to acquisition. The corporation
9 shall make temporary relocation assistance available to any households
10 of a building slated to be demolished by the corporation in favor of new
11 construction or scheduled for rehabilitation in any manner that will
12 necessarily displace such households. Such assistance shall be in an
13 amount to be determined by the corporation and corresponding to the
14 necessary and actual expenses incurred by such households as a result of
15 such temporary relocation. Such households shall have priority in the
16 selection of tenants for the lease of units available in any residential
17 project newly constructed or rehabilitated on the site of such house-
18 holds' former home or in any other residential project owned by the
19 corporation, which shall be similar in size to the unit from which such
20 household was initially displaced.
21 § 19. Reports and evaluations. The corporation shall submit to the
22 governor, the temporary president of the senate and the speaker of the
23 assembly, no later than thirty days following the submission of the
24 annual independent audit report pursuant to section twenty-eight hundred
25 two of the public authorities law, a complete detailed report or reports
26 setting forth, to the extent such matters are not fully addressed in the
27 annual independent audit report, the following:
28 1. Its financial reports, including:
29 a. Audited financials in accordance with all applicable regulations
30 and following generally accepted accounting principles as defined in
31 subdivision ten of section two of the state finance law;
32 b. Grant and subsidy programs;
33 c. Operating and financial risks;
34 d. Current ratings of its bonds issued by recognized municipal bond
35 rating agencies and notice changes in such ratings;
36 e. Long-term liabilities, including leases and employee benefit plans;
37 and
38 2. An assessment of the effectiveness of its internal control struc-
39 ture and procedures, including:
40 a. Descriptions of the corporation and its major units and subsid-
41 iaries;
42 b. The number of employees, and minority and women employees, for
43 each;
44 c. An organizational chart;
45 d. Its charter, if any, and by-laws;
46 e. The extent of participation by minority- and women-owned enter-
47 prises in corporation contracts and services in accordance with article
48 fifteen-A of the executive law; and
49 f. A listing of material changes in internal operations and programs
50 during the reporting year.
51 § 20. Subsidiaries. 1. The corporation shall have the right to manage
52 properties or projects within its portfolio, and to exercise and perform
53 its powers and functions related thereto, through one or more subsidiary
54 corporations or legal entities. The corporation by resolution may direct
55 any of its members, officers or employees to organize a subsidiary
56 corporation or legal entity whenever, in the sole discretion of the
A. 9088 31
1 corporation, it is necessary or convenient to carry out such functions,
2 powers, and duties.
3 2. Each such subsidiary corporation shall be wholly owned by the
4 corporation and shall be organized pursuant to the business corporation
5 law, the not-for-profit corporation law or the private housing finance
6 law.
7 3. The corporation may transfer to any subsidiary corporation any
8 money, real or personal or mixed property or may convey to it any
9 project in order to carry out the purposes and functions related to
10 property management. Each such subsidiary corporation shall have all the
11 privileges, immunities, tax exemptions and other exemptions of the
12 corporation to the extent the same are not inconsistent with the statute
13 or statutes pursuant to which such subsidiary was incorporated. Except
14 as may be inconsistent with the provisions of this act, such subsidiary
15 shall have all the rights and powers granted by any other statute pursu-
16 ant to which such subsidiary corporation was organized.
17 4. No member or officer of the corporation shall receive any addi-
18 tional compensation, either direct or indirect, other than reimbursement
19 for actual and necessary expenses incurred in the performance of such
20 person's duties, by reason of such person's serving as a member, direc-
21 tor, trustee or officer of any subsidiary corporation.
22 5. The board of a subsidiary shall be comprised wholly of the corpo-
23 ration's members, officers, or employees, insofar as such employees'
24 official duties are pertinent or useful to projects managed by such
25 subsidiary.
26 § 21. Monies of the corporation. 1. All monies of the corporation,
27 except as otherwise authorized or provided in this act, shall be paid to
28 the commissioner of taxation and finance as agent of the corporation,
29 who shall not commingle such monies with any other monies. Such monies
30 shall be deposited in a separate bank account or accounts. The monies in
31 such accounts shall be paid out on checks signed by the commissioner of
32 taxation and finance on requisition of the chairman or treasurer of the
33 board or president of the corporation or of such other officer or
34 employee or officers or employees as the corporation shall authorize to
35 make such requisition. All deposits of such monies shall, if required
36 by the commissioner of taxation and finance or the corporation, be
37 secured by obligations of the United States or of the state of a market
38 value equal at all times to the amount of the deposit, and all banks and
39 trust companies are authorized to give such security for such deposits.
40 Notwithstanding the provisions of this section, the corporation shall
41 have power to contract with the holders of any of its notes or bonds, as
42 to the custody, collection, securing, investment, and payment of any
43 monies of the corporation, of any monies held in trust or otherwise for
44 the payment of notes or bonds, and to carry out such contract. Monies
45 held in trust or otherwise for the payment of notes or bonds or in any
46 way to secure notes or bonds and deposits of such monies may be secured
47 in the same manner as monies of the corporation, and all banks and trust
48 companies are authorized to give such security for such deposits.
49 2. Subject to agreements with noteholders and bondholders and the
50 approval of the comptroller, the corporation shall prescribe a system of
51 accounts.
52 3. The comptroller, or his legally authorized representative, is here-
53 by authorized and empowered from time to time to examine the books and
54 accounts of the corporation including its receipts, disbursements,
55 contracts, reserve funds, sinking funds, investments, and any other
56 matters relating to its financial standing. Such an examination shall be
A. 9088 32
1 conducted by the comptroller at least once in every five years; the
2 comptroller is authorized, however, to accept from the corporation, in
3 lieu of such an examination, an external examination of its books and
4 accounts made at the request of the corporation.
5 4. The corporation shall submit to the governor, chair of the senate
6 finance committee, chair of the assembly ways and means committee and
7 the comptroller, within thirty days of the receipt thereof by the corpo-
8 ration, a copy of the report of every external examination of the books
9 and accounts of the corporation other than copies of the reports of such
10 examinations made by the comptroller.
11 5. The corporation shall manage the expenses and income of its
12 projects across its portfolio, and the excess cash flow of any project
13 shall be utilized to augment the cash flow of all other projects in any
14 manner or system the corporation deems convenient for its purposes.
15 § 22. Bonds and notes of the corporation. 1. Subject to the provisions
16 of section nineteen of this act, the corporation shall have the power
17 and is hereby authorized from time to time to issue its negotiable bonds
18 and notes in conformity with applicable provisions of the uniform
19 commercial code in such principal amounts, as, in the opinion of the
20 corporation, shall be necessary to provide sufficient funds for achiev-
21 ing any of its corporate purposes, including the payment of interest on
22 bonds and notes of the corporation, establishment of reserves to secure
23 such bonds and notes, and all other expenditures of the corporation
24 incident to and necessary or convenient to carry out its corporate
25 purposes and powers.
26 2. All such bonds shall be designated on their face, "New York State
27 Social Housing Development Authority". The state shall not be liable on
28 notes or bonds of the corporation. Such notes and bonds shall not be a
29 debt of the state and such notes and bonds shall contain on the face
30 thereof a statement to such effect.
31 3. All bonds and notes issued by the corporation may be secured by the
32 full faith and credit of the corporation or may be payable solely out of
33 the revenues and receipts derived from the lease, mortgage or sale by
34 the corporation of its projects or of any thereof, all as may be desig-
35 nated in the proceedings of the corporation under which the bonds or
36 notes shall be authorized to be issued. Such bonds and notes may be
37 executed and delivered by the corporation at any time and from time to
38 time, may be in such form and denominations and of such tenor and matu-
39 rities, may be in bearer form or in registered form, as to principal and
40 interest or as to principal alone, all as the corporation may determine.
41 4. Bonds may be payable in such installments and at such time or times
42 not exceeding fifty years from the date thereof, as shall be determined
43 by the corporation.
44 5. Notes, or any renewals thereof, may be payable in such installments
45 and at such time or times as shall be determined by the corporation, not
46 exceeding ten years from the date of the original issue of such notes.
47 6. Bonds and notes may be payable at such place or places whether
48 within or without the state, may bear interest at such rate or rates
49 payable at such time or times and at such place or places and evidenced
50 in such manner, and may contain such provisions not inconsistent here-
51 with, all as shall be provided in the proceedings of the corporation
52 under which the bonds or notes shall be authorized to be issued.
53 7. If deemed advisable by the corporation, there may be retained in
54 the proceedings under which any bonds or notes of the corporation are
55 authorized to be issued an option to redeem all or any part thereof as
56 may be specified in such proceedings, at such price or prices and after
A. 9088 33
1 such notice or notices and on such terms and conditions as may be set
2 forth in such proceedings and as may be recited in the face of the bonds
3 or notes, but nothing herein contained shall be construed to confer on
4 the corporation any right or option to redeem any bonds or notes except
5 as may be provided in the proceedings under which they shall be issued.
6 8. Any bonds or notes of the corporation may be sold at such price or
7 prices, at public or private sale, in such manner and from time to time
8 as may be determined by the corporation, and the corporation may pay all
9 expenses, premiums and commissions which it may deem necessary or advan-
10 tageous in connection with the issuance and sale thereof. No bonds or
11 notes of the corporation may be sold at private sale, however, unless
12 such sale and the terms thereof have been approved in writing by: (i)
13 the comptroller where such sale is not to the comptroller, or (ii) the
14 state director of the budget, where such sale is to the comptroller.
15 9. Any moneys of the corporation, including proceeds from the sale of
16 any bonds or notes, and revenues, receipts and income from any of its
17 projects or mortgages, may be invested and reinvested in such obli-
18 gations, securities and other investments as shall be provided in the
19 resolution or resolutions under which such bonds or notes are author-
20 ized.
21 10. Issuance by the corporation of one or more series of bonds or
22 notes for one or more purposes shall not preclude it from issuing other
23 bonds or notes in connection with the same project or any other project,
24 but the proceedings whereunder any subsequent bonds or notes may be
25 issued shall recognize and protect any prior pledge or mortgage made for
26 any prior issue of bonds or notes unless in the proceedings authorizing
27 such prior issue the right is reserved to issue subsequent bonds or
28 notes on a parity with such prior issue.
29 11. The corporation is authorized to provide for the issuance of its
30 bonds or notes for the purpose of refunding any bonds or notes of the
31 corporation then outstanding, including the payment of any redemption
32 premium thereon and any interest accrued or to accrue to the earliest or
33 subsequent date of redemption, purchase or maturity of such bonds or
34 notes, and, if deemed advisable by the corporation, for the additional
35 purpose of paying all or any part of the cost of acquiring, construct-
36 ing, reconstructing, rehabilitating, or improving any project, or the
37 making of any mortgage loan on any project. The proceeds of any such
38 bonds or notes issued for the purpose of refunding outstanding bonds or
39 notes, may, in the discretion of the corporation, be applied to the
40 purchase or retirement at maturity or redemption of such outstanding
41 bonds or notes either on their earliest or any subsequent redemption
42 date, and may, pending such application, be placed in escrow to be
43 applied to such purchase or retirement at maturity or redemption on such
44 date as may be determined by the corporation. Any such escrowed
45 proceeds, pending such use, may be invested and reinvested in obli-
46 gations of or guaranteed by the United States of America, or in certif-
47 icates of deposit or time deposits secured in such manner as the corpo-
48 ration shall determine, maturing at such time or times as shall be
49 appropriate to assure the prompt payment, as to principal, interest and
50 redemption premium, if any, on the outstanding bonds or notes to be so
51 refunded. The interest, income and profits, if any, earned or realized
52 on any such investment may also be applied to the payment of the
53 outstanding bonds or notes to be so refunded. After the terms of the
54 escrow have been fully satisfied and carried out, any balance of such
55 proceeds and interest, income and profits, if any, earned or realized on
56 the investments thereof may be returned to the corporation for use by it
A. 9088 34
1 in any lawful manner. The portion of the proceeds of any such bonds or
2 notes issued for the additional purpose of paying all or any part of the
3 cost of acquiring, constructing, reconstructing, rehabilitating, or
4 improving any project, or the making of any mortgage loan on any
5 project, may be invested and reinvested in obligations of or guaranteed
6 by the United States of America, maturing not later than the time or
7 times when such proceeds will be needed for the purpose of paying all or
8 any part of such cost, or the making of any such mortgage loan. The
9 interest, income and profits, if any, earned or realized on such invest-
10 ments may be applied to the payment of all or any part of such cost, or
11 the making of any such mortgage loan, or may be used by the corporation
12 in any lawful manner. All such bonds or notes shall be issued and
13 secured and shall be subject to the provisions of this act in the same
14 manner and to the same extent as any other bonds or notes issued pursu-
15 ant to this act.
16 § 23. Debt service reserve funds. 1. The corporation may create and
17 establish one or more reserve funds to be known as debt service reserve
18 funds and may pay into such reserve funds: (i) any moneys appropriated
19 and made available by the state for the purposes of such funds; (ii) any
20 proceeds of sale of bonds and notes to the extent provided in the resol-
21 ution of the corporation authorizing the issuance thereof; and (iii) any
22 other moneys which may be made available to the corporation for the
23 purposes of such funds from any other source or sources. The moneys held
24 in or credited to any debt service reserve fund established under this
25 subdivision, except as hereinafter provided, shall be used solely for
26 the payment of the principal of bonds of the corporation secured by such
27 reserve fund, as the same mature, the purchase of such bonds of the
28 corporation, the payment of interest on such bonds of the corporation or
29 the payment of any redemption premium required to be paid when such
30 bonds are redeemed prior to maturity; provided, however, that moneys in
31 any such fund shall not be withdrawn therefrom at any time in such
32 amount as would reduce the amount of such fund to less than the maximum
33 amount of principal and interest maturing and becoming due in any
34 succeeding calendar year on the bonds of the corporation then outstand-
35 ing and secured by such reserve fund, except for the purpose of paying
36 principal and interest on the bonds of the corporation secured by such
37 reserve fund maturing and becoming due and for the payment of which
38 other moneys of the corporation are not available. Any income or inter-
39 est earned by, or increment to, any such debt service reserve fund due
40 to the investment thereof may be transferred to any other fund or
41 account of the corporation to the extent it does not reduce the amount
42 of such debt service reserve fund below the maximum amount of principal
43 and interest maturing and becoming due in any succeeding calendar year
44 on all bonds of the corporation then outstanding and secured by such
45 reserve fund.
46 2. The corporation shall not issue bonds at any time if the maximum
47 amount of principal and interest maturing and becoming due in a succeed-
48 ing calendar year on the bonds outstanding and then to be issued and
49 secured by a debt service reserve fund will exceed the amount of such
50 reserve fund at the time of issuance, unless the corporation, at the
51 time of issuance of such bonds, shall deposit in such reserve fund from
52 the proceeds of the bonds so to be issued, or otherwise, an amount which
53 together with the amount then in such reserve fund, will be not less
54 than the maximum amount of principal and interest maturing and becoming
55 due in any succeeding calendar year on the bonds then to be issued and
A. 9088 35
1 on all other bonds of the corporation then outstanding and secured by
2 such reserve fund.
3 3. To assure the continued operation and solvency of the corporation
4 for the carrying out of the public purposes of this act, provision is
5 made in subdivision one of this section for the accumulation in each
6 debt service reserve fund of an amount equal to the maximum amount of
7 principal and interest maturing and becoming due in any succeeding
8 calendar year on all bonds of the corporation then outstanding and
9 secured by such reserve fund. In order further to assure the mainte-
10 nance of such debt service reserve funds, there shall be annually appor-
11 tioned and paid to the corporation for deposit in each debt service
12 reserve fund such sum, if any, as shall be certified by the chairman of
13 the corporation to the governor and state director of the budget as
14 necessary to restore such reserve fund to an amount equal to the maximum
15 amount of principal and interest maturing and becoming due in any
16 succeeding calendar year on the bonds of the corporation then outstand-
17 ing and secured by such reserve fund. The chairman of the corporation
18 shall annually, on or before December first, make and deliver to the
19 governor and state director of the budget his certificate stating the
20 sum, if any, required to restore each such debt service reserve fund to
21 the amount aforesaid, and the sum or sums so certified, if any, shall be
22 apportioned and paid to the corporation during the then current state
23 fiscal year.
24 4. In computing any debt service reserve fund for the purposes of this
25 section, securities in which all or a portion of such reserve fund shall
26 be invested shall be valued at par, or if purchased at less than par, at
27 their cost to the corporation.
28 § 24. Dissolution of the corporation. 1. The corporation may only be
29 dissolved after a unanimous decision by the board, and a concurrent law
30 effecting the same passed by the members of the assembly and senate,
31 which shall be signed by the governor. The board shall give ninety
32 calendar days' advance notice of any consideration of a resolution to
33 dissolve the corporation, which the corporation shall publish in a news-
34 paper of general circulation in every city with a population greater
35 than five hundred thousand people, post prominently and continuously on
36 the homepage of any website maintained by the corporation, send by
37 certified mail to the trustee of any outstanding bonds of the corpo-
38 ration, and post conspicuously in the common spaces of any residential
39 projects owned by the corporation or its subsidiaries. Residents of
40 residential projects owned by the corporation or its subsidiaries shall
41 be given adequate opportunity to comment on such resolution in advance
42 of its consideration.
43 2. Upon dissolution of the corporation, any residential projects or
44 real property formerly owned by the corporation shall be held in trust
45 by the department of housing and community renewal, which shall assume
46 the former corporation's responsibilities in relation to such residen-
47 tial projects or real properties until such time as the legislature
48 shall create a process by which such properties are fairly and responsi-
49 bly disposed of to residents or third-parties.
50 § 25. Court proceedings. Any action or proceeding to which the corpo-
51 ration or the people of the state of New York may be parties, in which
52 any question arises as to the validity of this act, shall be preferred
53 over all other civil causes except election causes in all courts of the
54 state of New York and shall be heard and determined in preference to all
55 other civil business pending therein except election causes, irrespec-
56 tive of position on the calendar. The same preference shall be granted
A. 9088 36
1 upon application of counsel to the corporation in any action or proceed-
2 ing questioning the validity of this act in which they may be allowed to
3 intervene. The venue of any such action or proceeding shall be laid in
4 the county in which the principal office of the corporation is located.
5 § 26. Actions against the corporation. 1. Except in an action for
6 wrongful death, no action or proceeding shall be prosecuted or main-
7 tained against the corporation for personal injury or damage to real or
8 personal property alleged to have been sustained by reason of the negli-
9 gence or wrongful act of the corporation or of any member of the board,
10 officer, agent or employee thereof, unless: (i) it shall appear by and
11 as an allegation in the complaint or moving papers that a notice of
12 claim shall have been made and served upon the corporation, within the
13 time limit prescribed by and in compliance with section fifty-e of the
14 general municipal law; (ii) it shall appear by and as an allegation in
15 the complaint or moving papers that at least thirty days have elapsed
16 since the service of such notice and that adjustment or payment thereof
17 has been neglected or refused; and (iii) the action or proceeding shall
18 be commenced within the period provided under section fifty-i of the
19 general municipal law. An action against the corporation for wrongful
20 death shall be commenced in accordance with the notice of claim and time
21 limitation provisions of title eleven of article nine of the public
22 authorities law.
23 2. Wherever a notice of claim is served upon the corporation, it shall
24 have the right to demand an examination of the claimant relative to the
25 occurrence and extent of the injuries or damages for which claim is
26 made, in accordance with the provisions of section fifty-h of the gener-
27 al municipal law.
28 3. The corporation may require any person presenting for settlement an
29 account or claim for any cause whatsoever against the corporation to be
30 sworn before a member of the board, counsel or an attorney, officer or
31 employee thereof designated for such purpose, concerning such account or
32 claim and when so sworn, to answer orally as to any facts relative to
33 such account or claim. The corporation shall have power to settle or
34 adjust any claims in favor of or against the corporation.
35 4. The rate of interest to be paid by the corporation upon any judg-
36 ment for which it is liable, other than a judgment on bonds, notes or
37 other obligations, shall not exceed the rate of interest on judgments
38 and accrued claims against municipal authorities as provided in the
39 general municipal law. Interest on payments of principal or interest on
40 any bonds, notes or other obligations in default shall accrue at the
41 rate specified in the general municipal law until paid or otherwise
42 satisfied.
43 § 27. Limited liability. 1. As used in this section, the term "employ-
44 ee" shall mean the members of the board, president, officers, employees,
45 or a former employee, their estate or judicially appointed personal
46 representative.
47 2. Neither the members of the board nor any officers or employee of
48 the corporation acting on behalf thereof, while acting within the scope
49 of such person's authority, shall be subject to any liability resulting
50 from carrying out any of the powers expressly given in this act.
51 3. At the request of the employee, and upon compliance by the employee
52 with the provisions of this section, the corporation shall provide for
53 the defense of an employee in any civil action or proceeding in any
54 state or federal court, arising out of any alleged act or omission which
55 the corporation finds occurred while the employee was acting within the
56 scope of their public employment and in the discharge of their public
A. 9088 37
1 duties and was not in violation of any rule or regulation of the corpo-
2 ration at the time the alleged act or omission occurred. This duty to
3 provide for a defense and indemnification shall not arise where such
4 civil action or proceeding is brought by or on behalf of the corporation
5 against the employee.
6 4. The corporation shall indemnify and hold harmless its employees in
7 the amount of any civil judgment obtained against such employees in any
8 state or federal court, or in the amount of any settlement of a claim
9 approved by the corporation provided that the act or omission from which
10 such judgment or settlement arose occurred while the employee was acting
11 within the scope of their public employment and in the discharge of
12 their public duties and was not in violation of any rule or regulation
13 of the corporation at the time the alleged damages were sustained. The
14 duty to indemnify and hold harmless prescribed by this section shall not
15 arise where the injury or damage resulted from an intentional wrongdo-
16 ing, or recklessness on the part of the employee. Nothing in this
17 section shall authorize the corporation to indemnify or hold harmless an
18 employee with respect to punitive or exemplary damages, fines or penal-
19 ties.
20 5. The duty to defend and indemnify and hold harmless prescribed by
21 this section shall be conditioned upon: (i) delivery by the employee to
22 the president or general counsel of the corporation at the office of the
23 corporation of the original or a copy of any summons, complaint, claim,
24 process, notice, demand or pleading within ten days after the employee
25 is served with such document; and (ii) the full cooperation of the
26 employee in the defense of such action or proceeding and in defense of
27 any action or proceeding against the corporation based upon the same act
28 or omission, and in the prosecution of any appeal. Such delivery shall
29 be deemed a request by the employee that the corporation provide for
30 their defense pursuant to this section. In the event that the corpo-
31 ration shall assume an employee's defense and thereafter the employee
32 fails or refuses to cooperate in the formation or presentation of their
33 defense, the court shall permit the corporation to withdraw its repre-
34 sentation ten days after giving written notice to the employee of its
35 intention to discontinue such representation.
36 6. In the event that the act or omission upon which the court proceed-
37 ing against the employee is based was or is also the basis of a disci-
38 plinary proceeding by the corporation against the employee, represen-
39 tation and indemnification by the corporation, as set forth in this
40 section, may be withheld: (i) until such disciplinary proceeding has
41 been resolved; and (ii) unless the resolution of the disciplinary
42 proceeding exonerated the employee as to such act or omission.
43 7. Subject to the conditions set forth in this section, such employee
44 shall be entitled to representation by the general counsel of the corpo-
45 ration or by any attorney or attorneys designated by the general coun-
46 sel; provided, however, that the employee shall be entitled to be
47 represented by private counsel of their choice in any civil action or
48 proceeding whenever the corporation determines that representation would
49 be inappropriate, or whenever a court, upon appropriate motion or other-
50 wise by a special proceeding, determines that a conflict of interest
51 exists and that the employee is entitled to be represented by private
52 counsel of the employee's choice. The general counsel of the corporation
53 shall notify the employee in writing of such determination that the
54 employee is entitled to be represented by private counsel. Provided,
55 however, that the corporation may require, as a condition to payment of
56 the fees and expenses of such representation, that appropriate groups of
A. 9088 38
1 such employees be represented by the same counsel. Reasonable attorneys'
2 fees and litigation expenses shall be paid by the corporation to such
3 private counsel from time to time during the pendency of a civil action
4 or proceeding.
5 8. Any dispute with respect to representation of multiple employees by
6 a single counsel or the reasonableness of attorneys' fees or the amount
7 of litigation expenses shall be resolved by the court upon motion or by
8 way of a special proceeding.
9 9. The benefits of this section shall inure only to employees as
10 defined in this section and shall not enlarge or diminish the rights of
11 any other party nor shall any provision of this section be construed to
12 affect, alter or repeal any provision of the workers' compensation law.
13 10. The provisions of this section shall not be construed in any way
14 to impair, alter, limit or modify the rights and obligations of any
15 insurer under any policy of insurance.
16 11. Except as otherwise specifically provided in this section, the
17 provisions of this section shall not be construed in any way to impair,
18 alter, limit, modify, abrogate or restrict any immunity available to or
19 conferred upon any unit, entity, member, officer or employee of the
20 corporation, or any right to defense or indemnification provided for any
21 member, officer or employee by, in accordance with, or by reason of, any
22 other provision of state, federal or local law or common law.
23 12. Every action or proceeding instituted pursuant to the provisions
24 of this section shall be commenced pursuant to section twenty-six of
25 this act and subject to any condition or limitation set forth in such
26 section.
27 13. The provisions of this section shall apply to the actions and
28 proceedings set forth herein notwithstanding any inconsistent provisions
29 of state or local law.
30 § 28. Public employer. For the purposes of article fourteen of the
31 civil service law, the corporation shall be deemed to be a public
32 employer and as such shall negotiate with and enter into written agree-
33 ments with employee organizations representing the staff of the corpo-
34 ration that have been certified or recognized under such article. The
35 state public employment relations board shall have exclusive jurisdic-
36 tion for the purpose of administering the provisions of such article and
37 the provisions of section two hundred twelve of such article shall not
38 be applicable to any such negotiations.
39 § 29. Made in New York. To the greatest degree possible, the corpo-
40 ration shall strive to procure materials for the construction of
41 projects which are manufactured in whole or part in the state. If such
42 materials cannot be procured that are manufactured in whole or part in
43 the state, the corporation shall, to the greatest degree possible,
44 strive to procure materials for the construction of projects which are
45 produced in the United States.
46 § 30. Public records and public meetings. 1. The board shall promul-
47 gate policies for compliance with articles six and seven of the public
48 officers law and may update such policies at its discretion.
49 2. Meetings of the board and notes and minutes recorded thereof shall
50 be public record. The board shall publish a schedule for its meetings
51 at least ninety days in advance of such meetings, and shall publish an
52 agenda for any meeting at least two weeks in advance of such meeting.
53 Meetings shall be recorded and broadcast online in a manner accessible
54 by the general public and such recordings shall remain online, together
55 with the associated agendas and minutes for review by the general public
56 after such meetings have occurred.
A. 9088 39
1 § 31. Tax exemption. 1. It is hereby determined that the creation of
2 the corporation and the carrying out of its corporate purposes is in all
3 respects for the benefit of the people of the state of New York and is a
4 public purpose. Accordingly, the corporation shall be regarded as
5 performing an essential governmental function in the exercise of the
6 powers conferred upon it by this act, and the corporation shall not be
7 required to pay any fees, taxes, special ad valorem levies or assess-
8 ments of any kind, including, but not limited to, franchise taxes, sales
9 taxes or other taxes, upon or with respect to any property owned by it
10 or under its jurisdiction, control or supervision, or upon the uses
11 thereof, or upon or with respect to its activities or operations in
12 furtherance of the powers conferred upon it by this act, or upon or with
13 respect to any fares, tolls, rentals, rates, charges, fees, revenues or
14 other income received by the corporation.
15 2. Any bonds, notes or other obligations issued pursuant to this act
16 together with the income therefrom shall at all times be exempt from
17 taxation.
18 3. The state hereby covenants with the purchasers and with all subse-
19 quent holders and transferees of bonds, notes or other obligations
20 issued by the corporation pursuant to this act, in consideration of the
21 acceptance of and payment for the bonds, notes or other obligations,
22 that the bonds, notes or other obligations of the corporation issued
23 pursuant to this act and the income therefrom and all revenues, monies,
24 and other property pledged to pay or to secure the payment of such
25 bonds, notes or other obligations shall at all times be free from taxa-
26 tion.
27 4. Notwithstanding any provision in this section to the contrary, the
28 corporation may pay, or may enter into agreements with any municipality
29 to pay, a sum or sums, annually or otherwise, or to provide other
30 considerations to such municipality, with respect to real property of
31 the corporation located within such municipality and provided that any
32 such payment or agreement to pay shall be subject to approval by the
33 corporation.
34 § 32. Construction. This act, being necessary for the welfare of the
35 state and its inhabitants, shall be liberally construed so as to effec-
36 tuate its purposes.
37 § 33. Inconsistent provisions of other laws superseded. Insofar as the
38 provisions of this act are inconsistent with the provisions of any other
39 act, general or special, the provisions of this act shall be control-
40 ling.
41 § 34. Severability. If any provision of this act or its application to
42 any person or circumstance is held unconstitutional or invalid, in whole
43 or in part, by any court, such holding of unconstitutionality or inva-
44 lidity shall in no way affect or impair any other provision of this act
45 or the application of any such provision to any other person or circum-
46 stance, and to this end the provisions of this act are severable.
47 § 35. Appropriation. The sum of sixty million dollars ($60,000,000),
48 or so much thereof as may be necessary, is hereby appropriated to the
49 corporation out of any moneys in the state treasury in the general fund
50 and made immediately available for the purpose of carrying out the
51 provisions of this act, namely in the creation, administration, and
52 staffing of the corporation. Such moneys shall be payable on the audit
53 and warrant of the state comptroller on vouchers certified or approved
54 in the manner prescribed by law.
55 § 36. This act shall take effect immediately.
