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A09088 Summary:

COSPNSRAnderson, Simone, Shrestha, Mitaynes, Forrest, Mamdani, Rosenthal L, Epstein, Carroll, Gonzalez-Rojas, De Los Santos, Simon, Lee, Alvarez, Reyes, Weprin, Otis, Gibbs, Raga, Bichotte Hermelyn
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.
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A09088 Actions:

02/06/2024referred to corporations, authorities and commissions
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A09088 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
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.
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A09088 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                    February 6, 2024
          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.

        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.
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