Senate Bill S8494

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8494
 
                             I N  S E N A T E
 
                             February 6, 2024
                                ___________
 
 Introduced  by Sens. CLEARE, BRISPORT, GONZALEZ, HOYLMAN-SIGAL, JACKSON,
   SALAZAR -- read twice and ordered printed,  and  when  printed  to  be
   committed to the Committee on Finance
 
 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:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "permanently affordable social housing for New Yorkers act".
   §  2.  Legislative  findings and declaration; statement of policy. The
 legislature hereby finds and declares that safe, sanitary, plentiful and
 affordable housing accommodations are necessary for the  public  health,
 general welfare, and economy of the state. The legislature further finds
 and declares that a shortage of available affordable housing in communi-
 ties  across New York undermines the economy of the state as a whole and
 that a state program to leverage  private,  local,  state,  and  federal
 funds to build new, high-quality housing for working families is desper-
 ately  needed  in  order  to cure the shortfall in supply created by the
 private market. While the private housing market  has  failed  to  build
 enough  housing  to  create affordability across all levels of income in
 New York, private landlords have also seized  upon  the  opportunity  to
 rapaciously  extract rents and profit at the expense of New Yorkers, who
 have witnessed extraordinary increases in the cost of living  in  recent
 years,  the largest component of which is the cost of housing, which has
 increased at annual rates far in excess of gains to wages or income  for
 working-class New Yorkers.
   Whereas  the  legislature  has  previously  authorized the creation of
 transportation  authorities,  port  authorities,  and  water  and  sewer
 authorities,  among  others,  to  manage  the  construction,  operation,
 financing, and improvement of various forms of state infrastructure  and
 public  services,  and to insulate the provision of such services to New
 Yorkers from both the vicissitudes of political administrations and  the
 greed of private ownership; and whereas social housing, being permanent-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13689-03-4
 S. 8494                             2
 
 ly  affordable  and democratically controlled, represents a superior and
 more economical form of housing provision when compared  to  alternative
 methods  of  housing  subsidy; and whereas prior forms of social housing
 sponsored  by  the legislature, including the creation of limited equity
 cooperatives and the Mitchell-Lama  program,  have  been  successful  in
 creating  and preserving high-quality, affordable housing for New York's
 residents; and whereas many areas of the state suffer  from  housing  in
 dire  need  of  rehabilitation  and  retrofitting; and whereas the state
 continues to present the possibility of freedom and economic  livelihood
 to  individuals displaced from distant lands by climate change, geopoli-
 tics, and forces of history; the legislature further finds and  declares
 the necessity of creating a durable and scalable program for the ongoing
 construction,  rehabilitation  and maintenance of permanently affordable
 housing statewide through the creation of a new state  authority  tasked
 with such purpose.
   It  shall be the policy of the state to encourage the construction and
 maintenance of permanently affordable, democratically controlled,  high-
 quality  housing statewide through the creation of a new state authority
 charged with such responsibility.  The policy of the state, in  creating
 such an authority and program, shall be to combine all available sources
 of   funding   whenever  possible  and  direct  subsidies  towards  both
 construction  and  acquisition,  in  which  the  authority  through  its
 stewardship  may  hold such subsidy permanently in trust.  The policy of
 the state shall further be to create such authority with  a  vision  for
 governance  that  empowers its residents to participate in decision-mak-
 ing, creates a sense of shared responsibility  and  public  stewardship,
 and  generates a positive feedback cycle for the authority in the imple-
 mentation and modification of policies. Besides  the  promotion  of  new
 construction,  the  policy  of the state shall further be to promote the
 preservation of existing affordable housing through  the  conversion  of
 private  housing  to social housing models, under the stewardship of the
 authority, through acquisitions made by  the  authority  in  partnership
 with  tenants,  wherever  tenants  of  a building shall seek to purchase
 their building at a fair market value from its owner. In  creating  this
 authority,  the  policy  of  the  state shall further be to minimize the
 number of New Yorkers who suffer to sleep outside or in shelters without
 a permanent residence through the allocation of vouchers  and  units  to
 homeless  and  migrant  New  Yorkers; to provide high-quality housing at
 affordable rates to New Yorkers at extremely  low,  very  low,  and  low
 income  levels who otherwise are unable to find high-quality or afforda-
 ble housing in the private market; to deepen the role of  government  in
 the  stabilization  of  the housing market and the role of government in
 sponsoring new construction; and to deepen the proactive involvement  of
 the state in urban planning, collaboration with local governments, agen-
 cies, and residents, and innovation in housing design and construction.
   §  3.  Definitions.  For  the  purposes  of this act, unless otherwise
 expressly stated or the context or subject  matter  otherwise  requires,
 the following terms shall have the following meanings:
   1.  "Alternative project delivery contract" means any project delivery
 method  authorized  by  this  act, including construction manager build,
 construction manager at risk, and design-build, pursuant to which one or
 more contracts for the provision of design  or  construction  management
 and  construction  services  are awarded pursuant to an open and compet-
 itive method of procurement, as specified in  section  fifteen  of  this
 act.
 S. 8494                             3
 
   2. "Best value" means the basis for awarding contracts for services to
 a  proposer  that  optimizes  quality,  cost  and  efficiency, price and
 performance criteria, and which may include, but is not limited to:
   a. the quality of the proposer's performance on previous projects;
   b. the timeliness of the proposer's performance on previous projects;
   c.  the level of customer satisfaction with the proposer's performance
 on previous projects;
   d. the proposer's record of performing previous projects on budget and
 ability to minimize cost overruns;
   e. the proposer's ability to limit change orders;
   f. the proposer's ability to prepare appropriate project plans;
   g. the proposer's technical capacities;
   h. the individual qualifications of the proposer's key personnel;
   i. the proposer's ability to assess and manage risk and minimize  risk
 impact;
   j. the proposer's financial capability;
   k.  the  proposer's  ability  to  comply with applicable requirements,
 including the provisions of articles one hundred forty-five, one hundred
 forty-seven and one hundred forty-eight of the education law;
   l. the proposer's past record of compliance with federal  laws,  state
 and  local  laws,  rules  and regulations, licensing requirements, where
 applicable, and executive orders, including, but not limited to, section
 three of the federal housing  and  urban  development  act  of  nineteen
 hundred  sixty-eight,  as  amended,  or any successor provision, chapter
 seventy-nine of the  New  York  city  charter,  as  applicable,  article
 fifteen-A  of the executive law and any other applicable laws concerning
 minority- and women-owned business enterprise participation,  the  labor
 law, and any other applicable labor and prevailing wage laws;
   m.  the  proposer's record of complying with existing labor standards,
 maintaining harmonious labor relations, protecting the health and safety
 of workers, and payment of prevailing wages in accordance  with  article
 eight of the labor law;
   n.  a  quantitative  factor to be used in evaluation of bids or offers
 for awarding of contracts for bidders or offerors that are certified  as
 minority-  or  women-owned  business  enterprises  pursuant  to  article
 fifteen-A of the executive law or certified pursuant to section thirteen
 hundred four of the New York city charter as  minority-  or  women-owned
 business  enterprises,  or where the bidder is a joint venture including
 at least one such certified firm. Where  the  corporation  identifies  a
 quantitative  factor  pursuant  to this paragraph, the corporation shall
 specify that businesses certified as minority- or  women-owned  business
 enterprises  pursuant  to article fifteen-A of the executive law as well
 as those certified as  minority-  or  women-owned  business  enterprises
 pursuant  to section thirteen hundred four of the New York city charter,
 or joint ventures including at least one such certified firm, are eligi-
 ble to qualify for such factor.  Nothing  in  this  paragraph  shall  be
 construed  to  require that such businesses be concurrently certified as
 minority- or women-owned business enterprises  under  such  article  and
 such section to qualify for such quantitative factor; and
   o.  a  quantitative  factor to be used in evaluation of bids or offers
 for awarding of contracts for bidders or offerors that provide  economic
 opportunities  for  low  and  very low-income persons in accordance with
 section three of the federal housing and urban development act of  nine-
 teen hundred sixty-eight, as amended, or chapter seventy-nine of the New
 York  city  charter,  as  applicable, or any successor provision.   Such
 S. 8494                             4
 
 basis shall reflect, wherever possible, objective and quantifiable anal-
 ysis.
   3. "Board" means the board of the corporation.
   4. "Bonds" and "notes" mean the bonds and notes respectively issued by
 the corporation.
   5. "Clearinghouse" means the website and processes created pursuant to
 section eight of this act.
   6. "Civic project" means a project or that portion of a project desig-
 nated  and  intended  for the purpose of providing facilities for educa-
 tional, cultural, recreational, community, or other civic purposes.
   7. "Comptroller" means the comptroller of the state.
   8. "Construction manager build" means a project delivery method where-
 by a construction manager, following a declaration of a disaster by  the
 governor or state of emergency by the mayor pursuant to article two-B of
 the  executive  law  or chapter one of title three of the administrative
 code of the city of New York, or following an independent cost  estimate
 and  a concurrence by the corporation that construction work is required
 at a residential project to remedy  defects  to  bring  the  residential
 project into decent, safe, and sanitary condition:
   a.  serves  as  part  of  a  team in conjunction with the owner in the
 design phase of the project;
   b. under the oversight of the owner, acts  as  the  single  source  of
 responsibility  to bid, select and hold construction contracts on behalf
 of the owner during the construction phase; and
   c. manages the construction project on behalf of the owner.
   9. "Construction manager at risk"  means  a  project  delivery  method
 whereby a construction manager:
   a.  serves  as  part  of  a  team in conjunction with the owner in the
 design phase of the project;
   b. during the construction  phase,  acts  as  general  contractor  for
 agreed  upon  compensation  as  set forth in the construction manager at
 risk agreement; and
   c. assumes the risk of construction costs exceeding an  amount  speci-
 fied in the construction manager at risk agreement.
   10.  "Corporation" means the New York state social housing development
 authority created by section four of this act.
   11. "Cost plus" means  compensating  a  contractor  for  the  cost  to
 complete a contract by reimbursing actual costs for labor, equipment and
 materials plus an additional amount for overhead and profit.
   12.  "Design-build" means a project delivery method for the design and
 construction of a project with a single entity,  which  may  be  a  team
 composed of separate entities.
   13. "Distressed" means, with respect to an asset that: (i) the obligor
 thereof  is  subject  to a bankruptcy, insolvency, liquidation, or other
 similar action or proceeding; (ii) the obligor  thereof  has  failed  to
 make  any  payment  of  principal or interest with respect to such asset
 when due (whether at scheduled maturity or any accelerated date of matu-
 rity or any other date fixed for payment or prepayment thereof or other-
 wise) beyond any period of grace provided with  respect  thereto;  (iii)
 such  asset  is classified by the lender as "non-performing" pursuant to
 generally accepted accounting principles; (iv) such asset is in a  phys-
 ically  distressed condition, as shall be defined by the corporation; or
 (v) such asset is under lien for unpaid municipal arrears.
   14. "Energy efficiency and housing quality standards" means  standards
 promulgated  by  the corporation, which shall specify minimum energy and
 water efficiency requirements for residential real  property  under  the
 S. 8494                             5
 
 control of the corporation, in addition to other health and safety stan-
 dards  identified  in  this act or by the corporation through subsequent
 regulation, including  without  limitation  compliance  with  the  state
 building code.
   15.  "Environmental  hazard  and  housing quality inspection" means an
 inspection, conducted in-person and on-site, by an employee or agent  of
 the  corporation, which shall identify a property's degree of compliance
 with the corporation's energy efficiency and housing  quality  standards
 and  any  other applicable building codes, as well as the work necessary
 to bring such building or property into compliance with such  codes  and
 standards.
   16.  "Environmental  hazard  and  housing  quality retrofit" means the
 process by which the corporation shall bring a building or property into
 compliance with the corporation's energy efficiency and housing  quality
 standards  and  any  other applicable codes or standards.  Environmental
 hazard and housing quality retrofits shall proceed as  expeditiously  as
 necessary  to  ensure  the  safety and well-being of occupants, provided
 that they may occur in stages and upon timelines  that  the  corporation
 deems convenient. Such retrofit may include, without limitation:
   a.  Replacing or upgrading, as the case may be, appliances, equipment,
 and appurtenances thereto, which have reached the end  of  their  useful
 lives or where such replacement or upgrade would help such property meet
 the corporation's energy efficiency and housing quality standards;
   b. Weatherization;
   c.  Remediation  of  any and all environmental hazards present in such
 building or upon such property, including pests, mold,  asbestos,  lead,
 or  any  other  harmful  contaminants, as well as brownfield remediation
 when necessary;
   d. Upgrading of a building's accessibility for individuals with  disa-
 bilities; and
   e.  Curing  of any and all other existing violations of building codes
 or other applicable health and safety standards.
   17. "Excess cash flow" means surplus funds derived from the  rents  or
 other  income  of  a  project  after  all  annual operating costs of the
 project have  been  paid,  including  its  maintenance  and  operations,
 management fees, debt service, and reserve contributions.
   18.  "Ground lease" means the written instrument pursuant to which the
 corporation transfers to another  party  its  leasehold  interest  in  a
 project and ancillary personal property.
   19.  "Housing  company"  means  a  company  organized  pursuant to the
 provisions of article two,  four,  or  eleven  of  the  private  housing
 finance law.
   20. "Land use improvement project" means a plan or undertaking for the
 clearance, replanning, reconstruction, or rehabilitation or any combina-
 tion of these and other methods, of an underdeveloped or unsanitary area
 or  property,  including sites designated as brownfields or which other-
 wise may pose environmental risks to public health in  need  of  remedi-
 ation,  for the purpose of creating a permanently affordable residential
 project.
   21. "Local governing body" means  the  board  of  supervisors,  county
 legislature,  board  of aldermen, common council, commission, city coun-
 cil, or other elective governing board or body now or  hereafter  vested
 by  state  statute,  charter, or other law with jurisdiction to initiate
 and adopt other local laws whether or not such local laws or  ordinances
 require  the  approval  of the elective chief executive officer or other
 official or body to become effective.
 S. 8494                             6
 
   22. "Mixed-income" means a  designation  for  a  residential  project,
 which shall include a mix of affordability levels for units available in
 such  project  such  that  a proportion of the units in such project are
 reserved for households with low, very  low,  or  extremely  low  annual
 incomes,  and  another  proportion  are  available  to  individuals with
 incomes between eighty percent and one hundred sixty-five percent of the
 area median income. For the purposes of this act, "low," "very low," and
 "extremely low" annual incomes and "area median income" shall  have  the
 same  meanings as such terms are defined by the secretary of the federal
 department of housing and urban development.  The  proportions  reserved
 for  each  income  category shall be determined at the discretion of the
 corporation on a per-project basis, and in making such determination the
 corporation shall seek to maximize the  overall  affordability  of  such
 residential project in relation to the socio-economic characteristics of
 the  community  in  which  it  is  sited, considering without limitation
 factors such as local median incomes, rates of unemployment,  and  esti-
 mated need among various segments of the population, while ensuring such
 project  can operate in a financially solvent manner for the duration of
 the mortgage or financing securing such  project  after  accounting  for
 expected subsidies and operating revenues.  In any mixed-income residen-
 tial  project  constructed  by  the corporation, the quality of any unit
 shall not materially differ between units affordable at various  levels,
 nor  shall  access  to  services and facilities within such project, nor
 shall units affordable at various levels be  segmented  apart  from  one
 another or be outwardly identifiable according to affordability level.
   23.  "Mixed-use"  means  a designation for a project and real property
 within or upon which a residential  project  exists  in  addition  to  a
 project designated for commercial purpose or use, which for the purposes
 of  this act shall mean the buying, selling, or other provision of goods
 and services, or other lawful business or commercial activities.
   24. "Municipality" means any county, city, town, or village.
   25. "One hundred percent affordable" means a designation for  a  resi-
 dential project exclusively intended for households earning below eighty
 percent of the area median income, as calculated by the secretary of the
 federal department of housing and urban development.
   26.  "Permanently  affordable"  means  a designation for a residential
 project, the affordability of which is preserved through  the  inclusion
 of  an affordability covenant in the deed to such land and, where appli-
 cable, any ground lease to the improvements on such land. Such  afforda-
 bility  covenant shall limit the profit that may be taken on the sale or
 resale of leasehold interests to such residential project  or  any  part
 thereof or dwelling unit therein and the shares, stock, or equity of any
 corporations  holding  a  leasehold interest in such project, where such
 shares include or represent a possessory interest to a dwelling unit  in
 such  project,  to  a rate of two percent per annum compounded annually.
 Increases to rents or fees charged to  residents  within  a  permanently
 affordable unit shall be limited to no more than two percent per year.
   27.  "Project"  means  a specific work or improvement including lands,
 buildings, improvements, real and personal properties  or  any  interest
 therein,  acquired,  owned, constructed, reconstructed, rehabilitated or
 improved by the corporation or any subsidiary thereof, including a resi-
 dential project, a land use improvement project, or a civil project,  or
 any combination thereof.  The term "project" or any variation thereof as
 used herein shall include entire projects, or any portion of a project.
   28.  "Project  cost"  means the sum total of all costs incurred by the
 corporation in carrying out all works and undertakings, which the corpo-
 S. 8494                             7
 
 ration deems reasonable and necessary for the development of a  project.
 Project  costs  shall  include,  but are not necessarily limited to, the
 costs of all  necessary  studies,  surveys,  plans  and  specifications,
 architectural,  engineering  or  other  special services, acquisition of
 land and  any  buildings  thereon,  site  preparation  and  development,
 construction, reconstruction, rehabilitation, improvement and the acqui-
 sition  of  such  machinery  and equipment as may be deemed necessary in
 connection therewith (other than raw materials, work in process or stock
 in trade); the  necessary  expenses  incurred  in  connection  with  the
 initial  occupancy  of the project, an allocable portion of the adminis-
 trative and operating expenses of the corporation, the cost of financing
 the project, including interest on bonds and notes issued by the  corpo-
 ration to finance the project from the date thereof to the date when the
 corporation  shall  determine  that  the project be deemed substantially
 occupied, and the cost of such other items, including any indemnity  and
 surety bonds and payments on insurance, legal fees, fees and expenses of
 trustees,  depositories and paying agents for the bonds and notes issued
 by the corporation, and relocation costs, all as the  corporation  shall
 deem necessary.
   29. "Project labor agreement" shall have the same meaning as described
 in section two hundred twenty-two of the labor law.
   30.  "Real property" means lands, structures, franchises and interests
 in land, including lands under water and riparian rights,  space  rights
 and  air rights and any and all other things and rights usually included
 within such term. Real property shall also mean and include any and  all
 interests  in  such  property  less  than full title, such as easements,
 incorporeal hereditaments and every estate, interest or right, legal  or
 equitable,  including  terms for years and liens thereon by way of judg-
 ments, mortgages or otherwise, and also all claims for damages for  such
 real estate.
   31.  "Resident"  means  a  person  whose lawful primary residence is a
 dwelling unit in any residential project or real property owned, leased,
 or managed by the corporation.
   32. "Residential project" means a  project  or  that  portion  thereof
 designed  and  intended  for  the  purpose of providing housing accommo-
 dations and such facilities as may be incidental or appurtenant thereto.
   33. "Short-sale" means a sale of a residential real property  that  is
 subject  to  a  mortgage,  deed,  trust, or other security interest that
 secures a residential mortgage loan that: (i) will result in proceeds in
 an amount that is less than the remaining amount due under the  mortgage
 loan;  and  (ii) requires authorization by any securitization vehicle or
 other investment vehicle or holder of the mortgage loan, or the servicer
 acting on behalf of such a vehicle or holder.
   34. "Special purpose housing" means a residential project  constructed
 for  the  purpose of providing affordable or subsidized housing accommo-
 dations on an expedited schedule at the request of a state agency, local
 government, or the governor.  Special  purpose  housing  projects  shall
 utilize modular housing solutions, or any other available and comparable
 means,  to  deliver  housing  accommodations  in  a  rapid and efficient
 manner. The delivery of special purpose housing may be exempted  at  the
 discretion of the board from certain community feedback processes estab-
 lished  by  the  corporation  for  the construction or approval of other
 residential projects. The delivery of a special purpose housing  project
 shall be contingent upon the negotiation of partial or total funding and
 financing agreements with local, state, or federal authorities.
   35. "State" means the state of New York.
 S. 8494                             8
 
   36.  "State  agency"  means any office, department, board, commission,
 bureau, division, public corporation, agency, or instrumentality of  the
 state.
   37.  "Subsidiary"  means  a  corporation  created  in  accordance with
 section twenty of this act.
   38. "Underdeveloped" means a real property or part thereof whose high-
 est and best use, as determined at the sole  discretion  of  the  corpo-
 ration,  is  as  a  permanently  affordable residential project or civic
 project which, after a comprehensive  review  of  any  relevant  factors
 undertaken  by  the  corporation, the corporation finds is not currently
 employed in its highest and best use and can feasibly  be  converted  to
 such use by the corporation.
   39. "Voting process" means the democratic process whereby residents of
 a  residential  project shall make decisions affecting the governance or
 management of such residential project through a popular election facil-
 itated and certified by the corporation, which process shall  be  deter-
 mined as a matter of regulation by the corporation.
   40.  "Weatherization" means without limitation all improvements neces-
 sary to protect a home from the elements and improve  the  energy  effi-
 ciency of heating and cooling systems, such as: sealing bypasses and air
 ducts;  installing  or  replacing  dampers  in exhaust ducts; protecting
 pipes from corrosion and freezing; installing footing drains, foundation
 waterproofing membranes, interior perimeter drains, sump pumps, gutters,
 downspout extensions, downward-sloping grading, French  drains,  swales,
 and  other  appurtenances  to protect a building from both surface water
 and groundwater; providing proper ventilation to unconditioned spaces to
 protect a building from the effects of condensation; installing, replac-
 ing, or upgrading roofing, building wrap, siding, flashing, skylights or
 solar tubes; installing, upgrading, or replacing insulation;  installing
 storm doors and storm windows; replacing drafty doors with tightly seal-
 ing,  foam-core doors; retrofitting older windows with a stop or parting
 bead across the  sill;  or  replacing  older  windows  with  low-energy,
 double-glazed windows.
   §  4. New York State social housing development authority. 1. There is
 hereby created the New York state social housing development  authority.
 The  authority  shall  be  a corporate governmental agency of the state,
 constituting a political subdivision and public benefit corporation.
   2. The corporation shall have a duty to increase the supply of afford-
 able 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. The residential
 projects under the management or  control  of  the  corporation  or  its
 subsidiaries  shall  be  and  forever remain permanently affordable. The
 corporation shall take all actions necessary or convenient to ensure the
 high quality of  residential  real  property  under  its  management  or
 control  as  well  as  the  maintenance and improvement of conditions or
 abatement of nuisances therein.
   3. The membership of the corporation shall consist of a board  with  a
 size  of  nineteen  members.  The  corporation shall be governed and its
 powers shall be exercised by such board.    The  board  shall  establish
 rules  and  requirements relative to the attendance and participation of
 members in its meetings, regular or special, and shall meet  in  regular
 session  according to a schedule adopted by the board, at a frequency no
 less often than once per month, and also may meet in special session  as
 convened  by the chairman or upon written notice signed by a majority of
 the sitting members. The board  shall  elect  annually  from  among  its
 S. 8494                             9
 
 members  a chairman, vice-chairman, treasurer, and other officers as the
 board may determine and shall establish their duties as may be regulated
 by the rules of the board.
   a.  The  first  eleven  members  shall  be  appointed in the following
 manner.  Three members shall be appointed by the governor, three members
 shall be appointed by the speaker of the  assembly,  and  three  members
 shall be appointed by the temporary president of the senate. The commis-
 sioner  of the department of housing and community renewal and the comp-
 troller shall have ex officio seats on the board.  The  remaining  eight
 members  of  the  board shall be elected by the residents of residential
 projects owned or managed by the corporation.  Appointments and  member-
 ship shall be subject to the following restrictions:
   (i) One of each of the three members appointed by the speaker  of  the
 assembly,  governor,  and temporary president of the senate respectively
 shall represent the interests of employee organizations in the state;
   (ii) One of each of the three members appointed by the speaker of  the
 assembly,  governor,  and temporary president of the senate respectively
 shall represent the interests of affordable housing advocates, community
 land trusts, and homeless New Yorkers in the state;
   (iii) One of each of the three members appointed by the speaker of the
 assembly, governor, and temporary president of the  senate  respectively
 professional  or technical expertise in architecture, affordable housing
 construction and financing, urban planning, or engineering; and
   (iv) The remaining eight members shall  be  residents  of  residential
 projects owned or managed by the corporation.
   b.  The  members  of the board shall receive no compensation for their
 services but shall be entitled to receive  their  actual  and  necessary
 expenses  incurred  in  the  performance  of their duties. Except for ex
 officio board members, any member of the board may  be  removed  by  the
 governor for cause, after an opportunity to be heard in their defense. A
 majority  of  the  members  of the board, not including vacancies, shall
 constitute a quorum for the transaction of any business or the  exercise
 of  any power or function of the corporation.  The corporation may dele-
 gate to one or more of its members, or its officers, agents and  employ-
 ees, such powers and duties as it may deem proper.
   c.  Except  for  the ex officio board members, no member of the board,
 besides possession of  a  primary  residence  or  a  share  representing
 possession  in part or whole thereof, may own, nor profit from, any real
 property or share thereof, directly or  indirectly;  provided,  however,
 that  beneficial  ownership in any real property besides a primary resi-
 dence may be placed in a blind trust for  the  duration  of  a  member's
 tenure  on  the  board. A member's term on the board may not begin until
 such member's economic or legal interests,  if  any,  in  real  property
 located  in  New  York state besides a primary residence shall have been
 placed in a blind trust.   Legal expenses incurred by  the  creation  or
 administration  of  a blind trust for a member of the board necessary to
 comply with the requirements of this subdivision may  be  reimbursed  by
 the  corporation  upon  the  submission of receipts associated with such
 expenses to the board and the board's  approval  of  such  reimbursement
 request, which shall be made in writing and subject to disclosure pursu-
 ant to article six of the public officers law.
   d. The chairman of the board, or the president of the corporation, may
 request  and  receive  from  any  department,  division,  board, bureau,
 commission or other agency of the state  or  any  political  subdivision
 thereof or any public authority such assistance, information and data as
 S. 8494                            10
 
 shall  enable  the  corporation  or  the board properly to carry out its
 functions, powers and duties.
   e. The board shall appoint the president of the corporation, who shall
 be its executive officer, upon advice and consent of the senate, and may
 also  appoint  a  secretary, counsel and legal staff, technical experts,
 and such other agents and employees, permanent or temporary, as  it  may
 determine  necessary,  prescribe  their  powers  and  duties,  fix their
 compensation and provide for  reimbursement  of  their  expenses  within
 amounts appropriated therefor. The board may, from time to time, create,
 abolish,  transfer  and  consolidate  bureaus and other units within the
 corporation or the board not expressly established  by  law  as  it  may
 determine  necessary  for  the efficient operation of the corporation or
 the board.
   f. The corporation and its corporate existence  shall  continue  until
 terminated  by  law, consistent with the requirements of section twenty-
 four of this act; provided, however, that no such law shall take  effect
 so long as the corporation shall have bonds, notes and other obligations
 outstanding,  unless  adequate  provision  has been made for the payment
 thereof in the documents securing the same.
   g. Upon termination of the existence of the  corporation,  its  rights
 and properties shall pass to and be vested in the state.
   h. Except for the ex officio board members, members of the board shall
 hold  office  for terms of five years; provided that of the nine members
 first appointed, three shall serve for a term of two years, three  shall
 serve for a term of three years and three shall serve for a term of five
 years  commencing  January  first  next succeeding their appointment. No
 member shall serve for more than ten years. Any member chosen to fill  a
 vacancy  created other than by expiration of term shall be appointed for
 the unexpired term of the member whom they are to  succeed.    Vacancies
 caused  by  expiration  of term or otherwise shall be filled in the same
 manner as original appointments. With the exception of any seat  belong-
 ing  to residents, if a seat on the board is vacant for a period exceed-
 ing ninety days, the members of the board may temporarily fill such seat
 with a person chosen by a majority of the board.
   i. Any public officer shall be eligible to serve as a board member and
 the acceptance of the appointment shall  neither  terminate  nor  impair
 such public office.
   j. Meetings of the board shall be subject to the requirements of arti-
 cle  seven of the public officers law. Each member of the board shall be
 considered a public officer for the purposes of  sections  seventy-three
 and  seventy-four  of  the  public officers law and shall file financial
 disclosures and oaths of office pursuant to such law.
   k. Members of the board shall not be personally liable on the bonds or
 other obligations of the corporation and the rights of  creditors  shall
 be solely against the corporation.
   l. The corporation shall hold elections at its residential projects to
 fill the eight seats on the board belonging to residents commencing four
 years after the establishment of voting processes applicable to residen-
 tial projects owned by the corporation.
   § 5. Powers of the corporation. 1. To sue and be sued.
   2. To have a seal and alter the same at its pleasure.
   3.  To  make and execute contracts and all other instruments necessary
 or convenient for the exercise of its powers and  functions  under  this
 act.
   4. To make and alter by-laws for its organization and internal manage-
 ment and, subject to agreements with noteholders or bondholders, to make
 S. 8494                            11
 
 rules  and regulations with respect to its projects, operations, proper-
 ties and facilities, which rules and regulations shall be filed with the
 department of state in the manner provided by section one hundred two of
 the executive law.
   5. To acquire, hold and dispose of personal property for its corporate
 purposes.
   6.  To  appoint officers, agents and employees, prescribe their duties
 and qualifications and fix their compensation.
   7. To acquire or contract to acquire from  any  person,  firm,  corpo-
 ration,  municipality,  federal  or  state  agency,  by grant, purchase,
 condemnation or otherwise, leaseholds, real, personal or mixed  property
 or  any interest therein; to own, hold, clear, improve and rehabilitate,
 and to sell, assign, exchange, transfer,  convey,  lease,  mortgage,  or
 otherwise dispose of or encumber the same.
   8.  To exercise the power of eminent domain for the acquisition of any
 vacant property whose acquisition shall be  reasonably  related  to  the
 completion of a project approved by the corporation.
   9. To acquire, construct, reconstruct, rehabilitate, improve, alter or
 repair  or  provide  for  the construction, reconstruction, improvement,
 alteration or repair of any project.
   10. To arrange or contract  with  a  municipality  for  the  planning,
 replanning,  opening,  grading  or  closing of streets, roads, roadways,
 alleys or other places, or for the furnishing of facilities or  for  the
 acquisition  by a municipality of property or property rights or for the
 furnishing of property or services in connection with a project.
   11. To sell, lease, assign, transfer, convey, exchange,  mortgage,  or
 otherwise  dispose  of  or  encumber any project, and in the case of the
 sale of any project, to accept a purchase money mortgage  in  connection
 therewith;  and  to  lease, repurchase or otherwise acquire and hold any
 project which the corporation has theretofore sold, leased or  otherwise
 conveyed, transferred or disposed of.
   12.  To  grant  options to purchase any project or to renew any leases
 entered into by it in connection with any of its projects, on such terms
 and conditions as it may deem advisable.
   13. To prepare or cause to be prepared plans, specifications,  designs
 and  estimates  of  cost for the construction, reconstruction, rehabili-
 tation, improvement, alteration or repair of any project, and from  time
 to time to modify such plans, specifications, designs or estimates.
   14.  To manage any project, whether then owned or leased by the corpo-
 ration, and to enter into agreements with the state or any  municipality
 or  any  agency  or  instrumentality  thereof, or with any person, firm,
 partnership or corporation, either public or private, for the purpose of
 causing any project to be managed.
   15.  To  provide  advisory,  consultative,  training  and  educational
 services,  technical assistance and advice to any person, firm, partner-
 ship or corporation, either public or private, in order to carry out the
 purposes of this act.
   16. To lend or donate monies, whether secured  or  unsecured,  to  any
 subsidiary  corporation,  and  to  purchase,  sell or pledge the shares,
 bonds or other obligations or securities  thereof,  on  such  terms  and
 conditions as the corporation may deem advisable.
   17.  To make mortgage loans, secured by a first mortgage lien, includ-
 ing temporary loans or advances, to any subsidiary corporation which  is
 a  housing  company,  and  to  undertake  commitments therefor. Any such
 commitment, mortgage or bonds or notes secured thereby may contain  such
 terms and conditions not inconsistent with the provisions of this act as
 S. 8494                            12

 the  corporation  may deem necessary or desirable to secure repayment of
 its loan, the interest, if any, thereon and other charges in  connection
 therewith.
   18.  Subject  to  the  provisions  of any contract with noteholders or
 bondholders to consent to the modification,  with  respect  to  rate  of
 interest,  time of payments of any installment of principal or interest,
 security, or any other term, of any mortgage,  mortgage  loan,  mortgage
 loan  commitment,  contract or agreement of any kind to which the corpo-
 ration is a party.
   19. In connection with any property on which it has  made  a  mortgage
 loan,  to  foreclose  on  any  such  property  or commence any action to
 protect or enforce any right conferred upon it  by  any  law,  mortgage,
 contract  or  other agreement, and to bid for and purchase such property
 at any foreclosure or at any other sale, or acquire or  take  possession
 of  any  such  property; and in such event the corporation may complete,
 administer, pay  the  principal  of  and  interest  on  any  obligations
 incurred  in  connection  with  such property, dispose of, and otherwise
 deal with such property, in such manner as may be necessary or desirable
 to protect the interests of the corporation therein.
   20. To borrow money and to issue its negotiable bonds and notes and to
 provide for the rights of the holders thereof.
   21. As security for the payment of the principal of  and  interest  on
 any  bonds so issued and any agreements made in connection therewith, to
 mortgage and pledge any or all of its projects, whether  then  owned  or
 thereafter  acquired,  and to pledge the revenues and receipts therefrom
 or from any thereof, and to assign or pledge the lease or leases on  any
 portion  or  all  of  said  projects  and to assign or pledge the income
 received by virtue of said lease or leases.
   22. To invest any funds of the corporation  including  funds  held  in
 reserve  or  sinking  funds,  or any monies (including proceeds from the
 sale of any bonds or notes of the corporation) not required for  immedi-
 ate  use  or disbursement, at the discretion of the corporation, in: (i)
 obligations of the state or of the United States government; (ii)  obli-
 gations  the principal and interest of which are guaranteed by the state
 or the United States  government;  (iii)  obligations  of  agencies  and
 instrumentalities  of the state or of the United States; or (iv) certif-
 icates of deposit of banks or trust companies in this state, secured  by
 any obligations described in this subdivision.
   23. To procure insurance against any loss in connection with its prop-
 erty  and  other  assets  and  operations  in such amounts and from such
 insurers as it deems desirable.
   24. To engage the services of consultants  on  a  contract  basis  for
 rendering professional and technical assistance and advice.
   25.  To  contract  for  and  to accept any gifts or grants or loans of
 funds or property or financial or other aid in any form from the federal
 government or any agency or instrumentality thereof, or from  the  state
 or  any  agency or instrumentality thereof, or from any other source and
 to comply, subject to the provisions of this act,  with  the  terms  and
 conditions thereof.
   26.  To  make  loans, whether secured or unsecured, in connection with
 the corporation's participation in a project, to any person  or  entity,
 whether  public  or  private,  and  to issue commitments for such loans,
 provided that such loans and commitments are made or issued  in  compli-
 ance with guidelines established by the board of directors of the corpo-
 ration;  to  provide for the repayment of such loans on terms and condi-
 tions that the directors  of  the  corporation  deem  advisable  and  to
 S. 8494                            13
 
 receive  and hold real property or personal property as security for the
 repayment of such loans.
   27. Subject to any agreement with noteholders or bondholders, to enter
 into  agreements to pay annual sums in lieu of taxes to any municipality
 or political subdivision of the state, in respect of any  real  property
 which  is  owned  by  the  corporation  or any subsidiary thereof and is
 located in such municipality or political subdivision.
   28. To issue and enforce a subpoena and a subpoena duces tecum, admin-
 ister oaths and examine persons  under  oath,  in  accordance  with  and
 pursuant  to  the  civil  practice law and rules, in relation to matters
 relevant to projects or activities of  the  corporation,  including  the
 acquisition of property.
   29. To form subsidiary legal or corporate entities pursuant to section
 twenty of this act.
   30.  To  provide  for the administration and oversight of elections by
 residents concerning matters internal to the  corporation  or  affecting
 residents.
   31.  To  authorize,  create, supervise, augment, consolidate, or, upon
 the resolution of the corporation, dissolve internal  governance  bodies
 composed of residents; and to certify and effectuate, to the best of the
 corporation's ability, the decisions or elections of such bodies.
   32.  To do all things necessary or helpful for the promotion of democ-
 racy and democratic  participation  in  internal  governance  structures
 among residents.
   33.  To visit and cause to be inspected any real property in the state
 in order to carry out the functions, powers, and duties  of  the  corpo-
 ration, provided that entry onto such real property shall be conditioned
 upon the permission of the owner or tenants, as applicable.
   34.  To do any and all things necessary or convenient to carry out its
 corporate purposes and for exercise of the powers given and  granted  to
 it in this act.
   §  6. Rules and regulations. 1. The corporation shall promulgate rules
 and regulations in accordance with the  state  administrative  procedure
 act in order to implement the provisions of this act.
   2. Such rules and regulations shall be first promulgated no later than
 one  year  after the effective date of this act, and thereafter may from
 time to time be amended, modified, or repealed.
   3. The announcement of any amendment, modification, or repeal of rules
 and  regulations  shall  be  conspicuously  posted  in  any  residential
 projects  owned, leased or managed by the corporation. Residents of such
 residential projects shall be notified of the time, places and modes  by
 which  residents  may  submit  comments or testimony in relation to such
 proposed changes to the rules and regulations of the corporation.
   § 7. Acquisition of real property. 1. The  corporation  shall  acquire
 real  property for rehabilitation and conversion to, or construction of,
 residential projects through whatever  lawful  means  are  necessary  or
 convenient  for  such  purposes  upon a determination by the corporation
 that such real property is necessary for its present or future corporate
 purposes. The corporation may acquire the same in the name of the  state
 by  dedication, by agreement, or by eminent domain, and payment therefor
 shall be made by the corporation from the proceeds of sale of its bonds,
 notes or other obligations, or from other available moneys therefor. The
 authority shall hold such property in the name of the  state  and  shall
 have  the  right  to  possess  and  use  such property for its corporate
 purposes so long as its corporate existence shall continue. Any property
 S. 8494                            14
 
 held by the corporation shall not  be  converted  or  seized  for  other
 public use without the prior consent of the corporation.
   2.  Upon  a request by the corporation, signed by the president of the
 corporation, a municipality in the state  shall  identify  each  vacant,
 tax-foreclosed  property,  or  distressed  property held by such munici-
 pality and submit to the corporation a list of such properties.  Such  a
 list  shall be certified by counsel for the municipality. State agencies
 shall comply in an identical manner.
   3. The corporation may acquire property  from  the  state,  a  munici-
 pality,  or a state agency, notwithstanding if such property may already
 be devoted to public use.  Such governmental entity may offer such  real
 property to the corporation, or the corporation may request the transfer
 of  property after having identified such property as useful, necessary,
 or convenient to its purposes, which shall be certified in the form of a
 written request by the president of the  corporation.    Notwithstanding
 any  law  to  the  contrary,  a governmental entity may sell, convey, or
 otherwise dispose of such property  and  appurtenances  thereto  or  any
 interest therein to the corporation without public auction, sealed bids,
 or  public notice. Notwithstanding any local law or charter, any govern-
 mental entity, by resolution of its governing body, is hereby empowered,
 without referendum, public auction, or sealed bids to sell,  convey,  or
 otherwise  dispose  of  any  property  and  appurtenances thereto or any
 interest therein to the corporation.  Any such sale, grant or conveyance
 shall be made with or without consideration and upon  terms  and  condi-
 tions  as  may be agreed upon between the governmental entity and corpo-
 ration.
   4. a. Upon identifying a vacant  or  underdeveloped  property  on  the
 private market or at public auction, which property is necessary for the
 corporation's  purposes,  the  corporation  may  make  an  offer for the
 purchase of such property at a fair market value.
   b. If such property is not for sale or auction but  is  necessary  for
 the  corporation's purposes, the president shall certify the same to the
 board in writing and the board may authorize  the  acquisition  of  such
 property  by  means  of  eminent  domain.  Prior  to the commencement of
 condemnation proceedings, the corporation shall cause a survey  and  map
 to  be  made  of  the  property to be condemned and file the same in its
 office. There shall be annexed thereto a certificate, executed  by  such
 officer  or  employee as the corporation may designate, stating that the
 property described in such survey and map  is  necessary  for  corporate
 purposes.
   5.  The  corporation shall prioritize the acquisition of real property
 for construction or conversion into a residential  project  based  on  a
 rubric,  to  be promulgated by the corporation, containing criteria that
 include the regional housing needs of such community, as  determined  by
 the  corporation  in  coordination  with  the  department of housing and
 community renewal. In prioritizing the  acquisition  of  any  individual
 site  or  property,  the corporation may further consider: the potential
 number of permanently affordable housing units that could be created  by
 such acquisition or through any project on such site; the feasibility of
 any  potential  project on such site, which for the purposes of this act
 shall mean an assessment of the comparative and holistic project  costs,
 challenges,  objectives, and timeline associated with the development of
 a project or part thereof;  associated  greenhouse  gas  emissions;  and
 proximity to forms of public or multi-modal transit.
   6.  The corporation shall develop policies and procedures for engaging
 with local community members, elected officials, and  other  leaders  in
 S. 8494                            15
 
 the  determination  of  project  sites and the evaluation of development
 proposals and shall incorporate community feedback into the  development
 of project proposals.
   7.  The  corporation shall perform an environmental hazard and housing
 quality inspection at the site of any proposed acquisition, prior to the
 closing of any sale or conveyance of title to the corporation, to estab-
 lish the property's conditions, rehabilitation needs,  and  decarboniza-
 tion  potential.  Such  inspection shall further identify the property's
 level of occupancy,  potential  suitability  for  redevelopment,  and  a
 review,  where  applicable,  of  documented  code  violations and recent
 construction,  upgrades,  or   modifications.   At   the   corporation's
 discretion,  such  inspections may be performed by any agent or employee
 of the corporation or one of its  subsidiaries,  including  any  private
 firm  contracted  by the corporation for the purposes of such inspection
 and review.
   8. Notwithstanding any law to  the  contrary,  the  corporation  shall
 qualify  as,  and  may  act in the capacity of, a qualified purchaser or
 fiscal sponsor on behalf of tenants  of  any  building,  or  any  tenant
 organization representing such tenants, who seek to purchase such build-
 ing  from its current owner, through exercising a right of first refusal
 or by any other lawful means,  and  shall  create  a  process  therefor;
 provided, however, that such a purchase on behalf of tenants or a tenant
 organization representing such tenants shall occur on the condition that
 such  building  enters  into  the corporation's portfolio of permanently
 affordable residential projects, with all conditions applicable thereto.
   9. Notwithstanding any state or local law to the contrary, the  corpo-
 ration  shall have priority in the acquisition of properties from a land
 bank created pursuant to article sixteen of  the  not-for-profit  corpo-
 ration law for the purposes of any project.
   10.  The  corporation  shall have the authority to purchase or receive
 tax liens on any real property sold by any governmental entity or  poli-
 tical  subdivision  of  the  state,  with or without consideration. Upon
 receipt of tax liens from such entity, the corporation  shall  take  all
 steps  necessary to prevent the involuntary displacement of any existing
 residents of the property under lien.
   11.  The corporation may acquire distressed properties  in  accordance
 with the terms and provisions of section nine of this act.
   § 8. Clearinghouse. The corporation shall establish a clearinghouse to
 facilitate the execution of its mandate pursuant to this act. The clear-
 inghouse shall aggregate and make publicly available information related
 to real estate assets held by the corporation, including without limita-
 tion  residential  projects  available  to  the public for occupancy and
 opportunities for contractors, housing companies, and  other  interested
 parties  to submit bids for projects or pre-qualify for future projects,
 and for the submission of offers of sale pursuant  to  section  nine  of
 this act.  Prospective tenants shall be able to submit relevant documen-
 tation on the clearinghouse in order to apply for occupancy of an avail-
 able  or  soon-to-be-available  dwelling unit in any residential project
 owned by the corporation. The clearinghouse shall be accessible by means
 of a public website and on such website the corporation shall maintain a
 portal for use by residents and publish  other  information  as  may  be
 useful, convenient or in the public interest.
   §  9.  Authority  opportunity  to  purchase.  1.  Definitions. For the
 purposes of this section, the following terms shall have  the  following
 meanings,  unless  otherwise  expressly stated or the context or subject
 matter otherwise requires:
 S. 8494                            16
 
   a. "Sale" shall mean, but not be limited to:
   (i)  the execution of any agreement pursuant to which the owner of the
 property agrees to some, but not all, of the following:
   (1) Relinquishing possession of the property;
   (2) Extending an option to purchase the property for a sum certain  at
 the  end  of  the assignment, lease, or encumbrance and providing that a
 portion of the payments received pursuant to  the  agreement  is  to  be
 applied to the purchase price;
   (3) Assigning all rights and interests in all contracts that relate to
 the property;
   (4) Requiring that the costs of all taxes and other government charges
 assessed  and  levied against the property during the term of the agree-
 ment are to be paid by the lessee either directly or through a surcharge
 paid to the owner;
   (5) Extending an option to purchase an ownership interest in the prop-
 erty, which may be exercised at any time after execution of  the  agree-
 ment  but  which  shall be exercised before the expiration of the agree-
 ment; or
   (6) Requiring the assignee or lessee to maintain personal  injury  and
 property damage liability insurance on the property that names the owner
 as the additional insured.
   (ii) (1) A master lease which meets some, but not all, of the criteria
 described  in  subparagraph (i) of this paragraph or which is similar in
 effect; and
   (2) The transfer of an ownership interest in a  corporation,  partner-
 ship,  limited  liability  company,  association, trust, or other entity
 which owns a property as its sole or principal asset, which, in  effect,
 results  in the transfer of the property pursuant to subparagraph (i) of
 this paragraph. For the purposes of this  clause,  the  term  "principal
 asset"  means  the  value  of the accommodation relative to the entity's
 other holdings.
   b. Notwithstanding anything herein to the contrary, "sell"  or  "sale"
 shall not include:
   (i)  A transfer, even though for consideration, by a decedent's estate
 to members of the decedent's family if the  consideration  arising  from
 the  transfer will pass from the decedent's estate to, or solely for the
 benefit of, charity. For purposes of this subparagraph, "members of  the
 decedent's family" means:
   (1)  A  surviving  spouse  or domestic partner of the decedent, lineal
 descendants of the decedent, or spouses of  lineal  descendants  of  the
 decedent;
   (2)  A  trust  for the primary benefit of the persons listed in clause
 (1) of this subparagraph; and
   (3) A partnership, corporation, or  other  entity  controlled  by  the
 individuals  listed  in  clause  (1)  of  this subparagraph or the trust
 described in clause (2) of this subparagraph;
   (ii) An inter-vivos transfer, even though for  consideration,  between
 spouses,  parent  and  child,  siblings,  grandparent and grandchild, or
 domestic partners;
   (iii) A transfer of legal title or an interest in  an  entity  holding
 legal title to a property pursuant to a bona fide deed of trust or mort-
 gage, and thereafter any transfer by foreclosure sale or deed in lieu of
 foreclosure pursuant to a bona fide deed of trust or mortgage;
   (iv)  Any  transfer  of  a property directly caused by a change in the
 form of the entity owning the property, provided that  the  transfer  is
 without consideration;
 S. 8494                            17
 
   (v)  The  transfer  of interests in a partnership or limited liability
 company that owns the property as its sole or principal asset; provided,
 that the sole purpose of the transfer is to admit one  or  more  limited
 partners  or  investor  members  who will make capital contributions and
 receive  tax  benefits  pursuant  to  26  U.S.C.  §  42, or a comparable
 program.
   c. "Bona fide offer of sale" means an offer of sale for a property  or
 interest  therein  that  is  either for a price and other material terms
 that are at least as favorable as those accepted by a  purchaser  in  an
 arm's  length third-party contract, or in the absence of an arm's length
 third-party contract, an offer of sale with a price and  other  material
 terms  comparable  to that at which a willing seller and a willing buyer
 would sell and purchase the property, or the appraised value.
   d. "Matter-of-right" means a land use, development density, or  struc-
 tural  dimension to which a property owner is entitled by current zoning
 regulations or law.
   e. "Highest and best use" means the reasonably probable legal use of a
 property that  is  physically  possible,  appropriately  supported,  and
 financially  feasible and that results in the highest value of the prop-
 erty.
   2. Notwithstanding  any  law  to  the  contrary,  with  respect  to  a
 distressed  property containing three or more dwelling units that is not
 owned or managed by a federal, state,  or  local  government  or  tribal
 authority,  before the owner may sell the property, or issue a notice to
 vacate for purposes of demolition or discontinuance of use as a  housing
 accommodation,  and  before a mortgagee or obligee may foreclose on such
 property or the mortgage, lien, or encumbrance  on  such  property,  and
 before  a  tax  district  may commence an in rem proceeding against such
 property, the owner, mortgagee, obligee, tax district,  or  other  fore-
 closing  party  shall provide the corporation an opportunity to purchase
 the property or the debt securing such property, along with  rights  and
 title  related  thereto, at a price and upon terms that represent a bona
 fide offer of sale. The corporation shall have a right of first  refusal
 on  such sale or conveyance. An offer of sale submitted pursuant to this
 section shall be submitted on a form to be  promulgated  by  the  corpo-
 ration and shall contain all information as therein may be required. The
 corporation  shall  issue written acknowledgement of receipt of an offer
 of sale.
   a. In order to exercise its right of first refusal,  upon  a  determi-
 nation  by  the corporation that a property may be useful for the corpo-
 ration's purposes, the corporation shall notify the owner with a written
 statement of interest certified by  the  president  of  the  corporation
 within thirty days of receipt of the offer of sale.
   b.  The  corporation  shall have not less than one hundred twenty days
 from receipt of the offer of sale to  negotiate  a  contract  for  sale.
 Both  parties  shall  bargain  in  good faith. For every day of delay in
 receiving relevant information as required by this section, the  negoti-
 ation  period  shall  be  extended  by one day. The following constitute
 prima facie evidence of bargaining without good faith:
   (i) The failure to offer a price or term to the corporation that is at
 least as favorable as that offered to a third-party within  the  periods
 of time specified by this section without a reasonable justification for
 such failure;
   (ii)  The  failure  to  make  a  contract  with  the corporation which
 substantially conforms  with  the  price  and  terms  of  a  third-party
 S. 8494                            18
 
 contract  within the periods of time specified by this section without a
 reasonable justification for such failure; or
   (iii)  The  intentional  failure  of  either  party to comply with the
 provisions of this act.
   (iv) In the event of a transfer of interest in a partnership or corpo-
 ration or in the event of a master lease or agreement that is considered
 a sale within the meaning of this section, but which does not involve  a
 transfer  of  record  title  to  the  real  property, the owner shall be
 bargaining in good faith if the owner offers the corporation the  oppor-
 tunity to acquire record title to the real property or offers the corpo-
 ration  the  opportunity  to  match  the  type  of transfer or agreement
 entered into with the third-party. With respect to either type of offer,
 all provisions of this section apply;
   (v) The owner shall not require the corporation to pay  a  deposit  of
 more  than  five  percent of the contract sales price in order to make a
 contract.
   c. If the owner sells or contracts to sell the property  to  a  third-
 party  for  a  price  equal to or greater than ten percent less than the
 price offered to the corporation or for other terms which would  consti-
 tute bargaining without good faith, the owner shall comply anew with all
 requirements of this section.
   d.  Upon  the  execution of a contract for sale, the corporation shall
 have sixty days to complete settlement.
   3. Whenever an offer of sale is made pursuant  to  this  section,  the
 following terms shall apply:
   a.  The  sales price contained in the offer of sale shall be less than
 or equal to a price and other material terms comparable to that at which
 a willing seller and a willing buyer would sell and purchase the proper-
 ty, or the appraised value of the property  as  determined  pursuant  to
 this subdivision.
   b.  An appraised value shall only be based on rights an owner has as a
 matter-of-right as of the date of  the  offer,  including  any  existing
 right  an  owner  may  have  to  convert  the  property  to another use;
 provided, however, that an appraised value may take  into  consideration
 the highest and best use of the property.
   c.  The owner of the property shall have the burden of proof to estab-
 lish that an offer of sale is a bona fide offer of sale.
   d. The corporation may challenge the offer presented by  an  owner  as
 not  being  a bona fide offer of sale and request a determination of the
 appraised value of the property. The owner  and  the  corporation  shall
 thereafter  have  fourteen  days to jointly select an appraiser for such
 property. If the owner and corporation are unable to jointly agree on an
 appraiser,  the  corporation  may  appoint  an  independent  third-party
 appraiser from a list of pre-qualified entities within seven days, which
 appraiser  shall  be  a  state  certified real estate appraiser or state
 licensed real estate appraiser with a certificate or license  sufficient
 to  appraise  the  property  in  question. The owner and the corporation
 shall pay one-third and two-thirds of the cost of the appraisal, respec-
 tively.  The owner shall give such appraiser unfettered  access  to  the
 property for the purposes of such appraisal and shall provide all infor-
 mation requested by the appraiser for the valuation and appraisal of the
 property  within  seven  days,  upon  a  request  for information by the
 appraiser. The appraisal shall be conducted expeditiously in  accordance
 with  standard  industry practices. Beginning with the day upon which an
 appraisal is requested pursuant to this paragraph, for  each  day  until
 such  appraisal  is  complete,  the period of negotiation established by
 S. 8494                            19
 
 paragraph b of subdivision one of this section shall be extended by  one
 day.
   e.  The  determination  of the appraised value of the property made by
 any appraiser pursuant to paragraph d of this subdivision  shall  become
 the sale price of the bona fide offer of sale for the property unless:
   (i)  the  owner  or foreclosing party and the corporation agree upon a
 different sale price of the property;
   (ii) the owner or foreclosing party withdraws the  offer  of  sale  or
 discontinues  the  action  or  proceeding to foreclose on such property,
 vacate or demolish such property, or any  other  action  triggering  the
 corporation's right of first refusal pursuant to subdivision one of this
 section; provided, however, that the owner or foreclosing property shall
 reimburse  the corporation for the corporation's share of the cost of an
 appraisal conducted pursuant to paragraph d of this subdivision.
   § 10. Tenants rights and protections. 1. In any municipality or county
 with a rent guidelines board created pursuant to  the  emergency  tenant
 protection  act  of nineteen seventy-four, residential projects owned by
 the corporation and operated as rentals shall be placed under the juris-
 diction of the rent stabilization law  and  all  local  laws  and  codes
 applicable  thereto.  Such residential projects shall be registered with
 relevant agencies as rent stabilized and residents of  such  residential
 projects  shall  be proffered rent stabilized leases and entitled to all
 the rights and protections thereof.  Notwithstanding any other provision
 of this act, increases in rents charged for a dwelling unit in  a  resi-
 dential  project owned by the corporation and subject to rent stabiliza-
 tion shall not exceed increases permitted by the applicable rent  guide-
 lines board for that year.
   2.  In any municipality or county that does not have a rent guidelines
 board created pursuant to the emergency tenant protection act  of  nine-
 teen  seventy-four,  the  board  of  the  corporation  shall promulgate,
 through regulation, a list  of  rights  and  protections  applicable  to
 tenants of residential projects owned by the corporation and operated as
 rentals,  which  list  shall  be  substantially  similar  to  rights and
 protections afforded to residents  of  housing  units  subject  to  rent
 stabilization  pursuant  to the emergency tenant protection act of nine-
 teen seventy-four, namely including the right to lease renewal on  terms
 of one or two years at the tenant's discretion, protection from eviction
 without  just  cause,  and  the  right  to  receive  timely  repairs and
 services. Such rights and  protections  shall  be  enumerated  in  plain
 language  in residential leases to any units entitled to such rights and
 protections.
   3. In any dwelling unit or residential project  designated  as  perma-
 nently affordable, any increase in annual rents or fees greater than two
 percent  per  year  shall  be  reviewed and approved by the corporation,
 which shall reject any application for an annual increase  greater  than
 two  percent if such increase is not necessary to meet present or antic-
 ipated maintenance and operating expenses  for  such  project  and  such
 expenses are deemed superfluous.
    4.  In  a permanently affordable unit, the initial annual rent or sum
 of fees charged to a household shall be set at  twenty-five  percent  of
 such household's annual income.
   5.  The  corporation  shall  neither demand nor permit any requirement
 that the income of residents be recertified after residents  have  occu-
 pied a unit; provided, however, that the addition of any new resident to
 a unit shall require the certification of the income of such resident.
 S. 8494                            20
 
   6.  Residents  shall  be afforded the opportunity to correct, clarify,
 supplement, or defend any documents or information submitted in relation
 to income certification, residency applications, or other  requirements,
 if  the accuracy or validity of such documents or information comes into
 question.
   7. The corporation shall create an internal bureau for the administra-
 tive  filing  and  resolution of resident complaints and petitions. Such
 complaints or petitions shall be shared with and reviewed by any elected
 resident body representing residents in the residential  project  whence
 such  complaint  or  petition  originated,  and  such body shall issue a
 recommendation and opinion thereupon. Such complaint or  petition  shall
 then be transmitted to an examiner employed by the corporation who shall
 consider  the  recommendation  received by the elected resident body and
 render an initial decision upon such recommendation, the facts, and  the
 rules  and regulations of the corporation. A tenant may appeal an unsat-
 isfactory decision received in response to such complaint or petition to
 a supervisor of the bureau who may adjudicate such appeal on  advice  of
 counsel.  A  final  appeal  may  be taken to an administrative law judge
 employed by the corporation, whereupon any further challenge to a  deci-
 sion  rendered  by the corporation shall be made in a court of competent
 jurisdiction pursuant to article seventy-eight of the civil practice law
 and rules. Copies of any decisions rendered by the corporation shall  be
 transmitted  to  the complainant or petitioner as well as to the elected
 resident body of the residential project whence such complaint or  peti-
 tion originated.
   a. The corporation shall promulgate, through regulation, a process for
 the  receipt  and timely resolution of such complaints or petitions, and
 the corporation shall utilize information gained through complaints  and
 petitions  to  improve its own rules and regulations as well as relevant
 operations within its residential  projects,  both  through  a  holistic
 review  of  complaints  and petitions received and in direct response to
 specific complaints or petitions where such improvements are feasible.
   b. The corporation may proscribe  certain  matters  from  adjudication
 through  the bureau where such matters are not a subject governed by the
 corporation's rules and regulations, are deemed irrelevant to the corpo-
 ration's operations, or where such matters are governed or controlled by
 statutes outside the scope of this act or  inapplicable  to  the  corpo-
 ration.
   c.  The subjects of complaints shall be limited to allegations against
 the corporation, its subsidiaries, or any of its employees,  agents,  or
 contractors  for  any violation of the corporation's own rules and regu-
 lations, agreements, or codes of conduct.
   d. The subjects of petitions shall be limited to requests for improve-
 ments or interventions in any residential project  by  the  corporation,
 requests  to change contractors and the basis thereupon for such change,
 and suggestions for the improvement of any service or operation  by  the
 corporation.  The  denial  of any petition in whole or part shall not be
 with prejudice against any suggestion or request included in such  peti-
 tion.
   8. The corporation shall biannually survey residents of projects owned
 by  the  corporation  regarding  its  performance, residents' quality of
 life, and other  subjects  relevant  to  the  corporation's  operations;
 provided, however, that responses to such surveys shall be voluntary and
 anonymous.  The  aggregated  data  and findings of such surveys shall be
 made publicly accessible on the corporation's website.
 S. 8494                            21
 
   § 11. New and converted residential housing. 1. The corporation  shall
 create  programs  for  the construction of new high-quality, permanently
 affordable residential projects, the  acquisition,  rehabilitation,  and
 conversion  of  existing  real  property  into  high-quality permanently
 affordable residential projects, and the construction of special purpose
 housing  projects.    The  corporation  shall  affix permanently binding
 affordability covenants into deeds to all  properties  it  acquires  and
 shall  retain  title  to  such  real  properties for the duration of its
 corporate existence. Such affordability covenants shall regulate permis-
 sible rental increases and the conditions upon which equity may be taken
 in a sale of an interest in such property and shall limit the taking  of
 equity in such circumstances. All new and converted residential projects
 shall be designated as permanently affordable.
   2. Within these programs, the corporation shall, at its discretion and
 in  its best judgment, designate some projects to be leased by qualified
 housing companies and others to be leased as rentals by the  corporation
 or one of its subsidiaries. For any project selected to be operated by a
 housing company, the corporation may partner with local financial insti-
 tutions  to originate affordable financing for the mortgage of shares to
 prospective residents of such residential project. The corporation shall
 sell renewable ninety-nine year leasehold interests to qualified housing
 companies and shall contract property management services  for  residen-
 tial projects operated as rentals and leased directly by the corporation
 or its subsidiaries.
   3.  The  corporation may designate new projects as mixed-income or one
 hundred percent affordable. For residential  projects  acquired  by  the
 corporation  that  are  occupied  at  the point of sale or transfer, the
 corporation may elect not to impose mixed-income or one hundred  percent
 affordable  designations where the imposition of such requirements would
 conflict with rents charged and paid by tenants already  occupying  such
 project or otherwise risk the financial viability of such acquisition.
   4.  For  real  properties acquired by the corporation that do not meet
 the corporation's energy efficiency and housing quality  standards,  the
 corporation  shall  create a plan to bring such property into compliance
 by means of an environmental hazard and  housing  quality  retrofit.  If
 such property is occupied at the point of sale or conveyance, the corpo-
 ration  shall  create  such  plan in consultation with tenants currently
 occupying such building or any elected resident body  representing  such
 tenants.
   5.  In  soliciting bids for construction and rehabilitation contracts,
 and in awarding such contracts, the corporation shall consider,  without
 limitation:    community needs and demands; architectural and historical
 congruity and sensitivity of design with the neighborhood in which  such
 structure will be situated; innovation in design; the inclusion of civic
 projects  in  such  design;  the  number of permanently affordable units
 created; greenhouse gas emissions; and any other  factors  warranted  by
 the type of project or contract delivery utilized.
   6.  Across the portfolio of the corporation, no more than one-third of
 the corporation's units shall be designated for households earning  more
 than  one  hundred  percent  of the area median income, and no less than
 twenty-five percent may be  designated  for  households  earning  thirty
 percent or less of the area median income.
   7. Projects undertaken by the corporation may be financed with:
   a.  The proceeds of bonds or notes issued by the corporation, provided
 to each project in the form of a repayable  loan  at  an  interest  rate
 sufficient  to repay creditors. The loan shall be sized to ensure a debt
 S. 8494                            22
 
 service coverage ratio of no less than one and fifteen  hundredths  from
 the project's underwritten cash flow, including the anticipated payments
 from  any vouchers issued by the corporation to such project or received
 by any other source.
   b.  A  subordinate  grant  from  the corporation sized to fill the gap
 between the project's cost and the bond-financed loan authorized  pursu-
 ant to paragraph a of this subdivision. Such grant shall be considered a
 permanent contribution by the corporation to such project.
   c.  Additional  financing  from  outside  of the corporation's budget,
 provided that:
   (i) Such financing does not place a lien on title to the property;
   (ii) Such financing does not place financial obligations on the  prop-
 erty that would unduly burden the corporation; and
   (iii) Such financing does not place a regulatory burden on the proper-
 ty  inconsistent  with the corporation's rules, regulations, by-laws, or
 related provisions of this act.
   d. Any other financing from  the  corporation's  budget  necessary  to
 ensure the successful completion of the project.
   8.  The corporation shall consult with the state department of housing
 and community renewal and the New York state energy research and  devel-
 opment  authority  in  the development of the corporation's energy effi-
 ciency and housing quality standards, processes for completing  environ-
 mental  hazard  and housing quality retrofits, and the identification of
 projects that may be eligible for grants or assistance  from  either  or
 both  agencies.    The  department of economic development shall consult
 with the corporation to anticipate housing  needs  created  by  projects
 sponsored  by  the department or its subsidiaries and to create plans to
 meet such needs where necessary.
   9. It shall be unlawful to knowingly submit false documents or  infor-
 mation to the corporation for any purpose, and the corporation may refer
 fraud  to  appropriate  authorities  at its discretion. It shall also be
 unlawful to use any dwelling unit or project  belonging  to  the  corpo-
 ration for the purposes of short-term rentals.
   §  12.  Compliance  with  building  codes and local ordinances. 1. The
 corporation's projects shall conform to building codes and standards  of
 the state and to the corporation's energy efficiency and housing quality
 standards.  A list of applicable standards shall be issued by the corpo-
 ration and updated regularly.
   2. Any local law, resolution, or ordinance  regulating  height,  bulk,
 floor  to  area  ratio, setback, lot size, parking regulations, building
 codes, permitting, land use, or other related matters shall not apply to
 any project of the corporation that is designated as permanently afford-
 able, mixed-income,  one  hundred  percent  affordable,  or  as  special
 purpose  housing;  provided, however, that any local law, resolution, or
 ordinance designating land  for  manufacturing  purposes  shall  not  be
 abridged by the corporation.
   3.  Any  local law, resolution, or ordinance prohibiting or regulating
 mixed-use development or construction shall not apply to any project  of
 the  corporation that is designated as permanently affordable, mixed-in-
 come, one hundred percent affordable, or as special purpose housing.
   § 13. Resident democracy. 1. Residents of  every  residential  project
 owned  by  the  corporation  shall  elect a body of representatives from
 among the residents of the residential project pursuant  to  the  corpo-
 ration's  voting process, by-laws, and rules and regulations promulgated
 and maintained by the corporation for the creation of  elected  resident
 bodies.  Each adult member of each household in such residential project
 S. 8494                            23
 
 shall be guaranteed exactly one vote.   The corporation,  through  regu-
 lation,  shall  determine what proportion of eligible adults in residen-
 tial projects must cast a vote in order for the results of such election
 to be valid.
   2.  An  elected  resident body representing tenants in any residential
 project shall reserve the right to terminate the contract for any  prop-
 erty  management service at such residential project through approval of
 a written resolution by a majority of a quorum of such elected  resident
 body.  Such  elected  resident body may hire another property management
 service from a list of qualified contractors promulgated by  the  corpo-
 ration  through  an  identical  process upon terms the corporation deems
 acceptable.
   3. The corporation shall create a process  whereby  residents  of  any
 residential  project owned by the corporation may apply to be elected to
 an open resident position on the corporation's board.  Candidates  shall
 be  elected  at-large  by  all  eligible  residents  within  residential
 projects belonging to the corporation's portfolio.
   § 14. Contracts with the corporation. 1. No member, officer,  employee
 or  agent of the corporation shall profit from contracts entered into by
 the corporation, and potential conflicts of interest between any member,
 officer, employee or agent of the corporation shall be  reported,  in  a
 form to be promulgated by the corporation, to its board and counsel.
   2.  Construction performed under a contract entered into by the corpo-
 ration, a subsidiary of the corporation, or any  third-party  acting  on
 behalf of the corporation or a subsidiary of the corporation pursuant to
 this  act  shall  be  deemed a public work to be performed in accordance
 with the provisions of article eight of the labor law, including without
 limitation the prevailing wage requirements set  forth  in  section  two
 hundred  twenty  of  the  labor  law  and the reporting, monitoring, and
 enforcement provisions of article eight of the labor law, except for any
 projects receiving  federal  aid  which  are  already  required  to  pay
 prevailing wages pursuant to federal requirements.
   3.  Any  contract  entered  into  through a competitive sealed bidding
 process or pursuant to any form of contract delivery enumerated in  this
 section,  and  undertaken  pursuant  to a project labor agreement, shall
 include a clause requiring the  selected  alternative  project  delivery
 contractor  or the contractor selected on the basis of its sealed bid to
 obligate every tier of contractor working on the public work  to  comply
 with  the  project labor agreement required pursuant to this subdivision
 and shall include project  labor  agreement  compliance  monitoring  and
 enforcement provisions consistent with any such project labor agreement.
   4.  Construction  or  building  services  performed  under  a contract
 entered into by the corporation, a subsidiary of the corporation,  or  a
 third-party  acting  on behalf of the corporation or a subsidiary of the
 corporation pursuant to this act may be exempted by the corporation from
 the prevailing wage requirements of  article  eight  of  the  labor  law
 through the use of a project labor agreement. Any project with a project
 cost  of  ten  million  dollars  or more shall require compliance by the
 corporation with section two hundred twenty-two of the labor law.
   5. a. In each contract for construction,  reconstruction,  alteration,
 repair,  improvement  or maintenance of a project undertaken pursuant to
 this act, the corporation shall ensure that  such  contract  contains  a
 provision that the structural iron and structural steel used or supplied
 in  the  performance of the contract or any subcontract thereto and that
 is permanently incorporated into the public work, shall be  produced  or
 made  in whole or substantial part in the United States, its territories
 S. 8494                            24
 
 or possessions. In the case of a structural  iron  or  structural  steel
 product,  all  manufacturing shall take place in the United States, from
 the initial melting stage through the application  of  coatings,  except
 metallurgical processes involving the refinement of steel additives. For
 the  purposes of this subdivision, "permanently incorporated" shall mean
 an iron or steel product that is required to remain in place at the  end
 of the project contract, in a fixed location, affixed to the public work
 to  which it was incorporated.  Iron and steel products that are capable
 of being moved from one location to another are not permanently incorpo-
 rated into a public work.
   b. The provisions of paragraph a of this subdivision shall  not  apply
 if  the  corporation  determines,  in  its  sole  discretion,  that  the
 provisions would not be in the public interest, would result  in  unrea-
 sonable costs, or that obtaining such steel or iron in the United States
 would  increase  the  cost of the contract by an unreasonable amount, or
 such iron or steel, including without  limitation  structural  iron  and
 structural  steel,  cannot  be  produced or made in the United States in
 sufficient and reasonably available quantities and of satisfactory qual-
 ity.
   6. The corporation shall establish and maintain  procurement  policies
 that shall set forth the methods and procedures by which the corporation
 shall procure contracts for goods and services, including but not limit-
 ed  to  services  for design, development, construction, reconstruction,
 improvement, modernization, rehabilitation, repair, maintenance,  build-
 ing  services, and operations related to property owned or leased by the
 corporation, in a manner consistent with the  provisions  of  this  act.
 Such policies shall specifically include:
   a.  A competitive sealed bidding process for the award of contracts in
 which sealed bids are publicly solicited or solicited  from  a  list  of
 prequalified  bidders and opened and a contract is awarded to the lowest
 responsive, responsible bidder;
   b. Processes for awarding  contracts  for  goods  and  services  using
 alternatives  to  competitive  sealed  bidding  where competitive sealed
 bidding is not practicable or not advantageous, in which case the corpo-
 ration shall use the most competitive  method  of  procurement  that  is
 appropriate  under the circumstances to select the proposer offering the
 best value to the corporation and the residents of the project;
   c. A process for prequalifying bidders and proposers based  on  crite-
 ria, which may include an entity's experience, past performance, ability
 to undertake work, financial capability, responsibility, reliability and
 status  as  a  certified  minority-  or  women-owned business enterprise
 pursuant to article fifteen-A of the executive law or  section  thirteen
 hundred four of the New York city charter;
   d.  Reasonable  procedures  to  secure the meaningful participation of
 minority- and women-owned  business  enterprises  in  the  corporation's
 procurement  process.  The  corporation  may  use  the  same measures to
 enhance minority- and women-owned business enterprise  participation  as
 are  available pursuant to applicable local law, including section 6-129
 of the administrative code of the city of New York;
   e. Processes for awarding alternative project delivery contracts, in a
 manner consistent with the terms of section fifteen of this act;
   f. Procedures for  the  fair  and  equitable  resolution  of  contract
 disputes,  for  appeals  of  responsiveness  and responsibility determi-
 nations by the corporation, and for appeals of prequalification determi-
 nations;
 S. 8494                            25
 
   g. A process for making purchases off  contracts  procured  by  public
 agencies and public entities, provided that such contract exists between
 a vendor and (i) the United States General Services Administration, (ii)
 the state of New York or any of its political subdivisions, (iii) anoth-
 er  public  authority  or  public corporation of the state, (iv) another
 public housing agency or public housing authority, or (v) any purchasing
 cooperative where the lead purchasing entity is any  of  the  foregoing,
 provided  that  in  any  case  when the corporation under this paragraph
 determines that obtaining such item  thereby  would  be  in  the  public
 interest  and  provide for greater economy and efficiency and sets forth
 the reasons for such determination. Such rationale  shall  include,  but
 not  be  limited  to,  a  determination  of need, a consideration of the
 procurement method by which the contract was awarded, an explanation why
 a competitive procurement or the use of a centralized  contract  let  by
 the  commissioner  of  the office of general services is not in the best
 interest of the corporation, and the reasonableness of cost; and
   h. A mechanism for procurements without a formal  competitive  process
 where:
   (i)  The existence of an emergency involving danger to life, safety or
 property requires immediate action and cannot await a competitive  proc-
 ess  for  goods  or services to be purchased, including, but not limited
 to, services for construction,  reconstruction,  rehabilitation,  alter-
 ation,  renovation, maintenance or repairs, which are essential to effi-
 cient operation or the adequate provision of service by the  corporation
 and  as  a  consequence  of unforeseen circumstance such purchase cannot
 await a competitive process;
   (ii) A procurement's value does not exceed fifty thousand dollars;
   (iii) The corporation receives no responsive bids  or  only  a  single
 responsive  bid  in  response  to a solicitation for competitive bids or
 proposals;
   (iv) A procurement's value  does  not  exceed  five  hundred  thousand
 dollars  and  is made from a business certified as a minority- or women-
 owned business enterprise pursuant to article fifteen-A of the executive
 law and section thirteen hundred four of  the  New  York  city  charter.
 Nothing  in this paragraph shall be construed to require that such busi-
 ness be concurrently certified  as  minority-  or  women-owned  business
 enterprises  under  article  fifteen-A  of the executive law and section
 thirteen hundred four of the New York city charter to be awarded such  a
 contract;
   (v)  A  duly appointed representative of the corporation determines in
 writing that, based on a  market  analysis,  only  one  source  for  the
 required  goods  or services, including but not limited to, services for
 construction, reconstruction,  rehabilitation,  alteration,  renovation,
 maintenance and repairs, are available; or
   (vi)  The  contract  is a contract between the corporation and another
 governmental entity.
   i. The provisions of sections one hundred six-b of the general munici-
 pal law and one hundred fifty-one-a of  the  public  housing  law  shall
 apply to the corporation.
   j.  The  corporation  shall be required to comply with any procurement
 procedure set forth in this act unless a federal  requirement  conflicts
 with such procedure.
   §  15.  Alternative project delivery contracts. 1. Notwithstanding any
 provision of law to the contrary, including but not limited  to  section
 seventy-two hundred ten of the education law, for any project undertaken
 pursuant  to  a project labor agreement the corporation, a subsidiary of
 S. 8494                            26
 
 the corporation, or a third-party acting on behalf of the corporation or
 a subsidiary of the corporation may  use  alternative  project  delivery
 contracts.
   a.  A contractor selected by the corporation to enter into an alterna-
 tive project delivery contract may be selected through a two-step  meth-
 od, as follows:
   (i)  Step  one.  The  first  step shall be the generation of a list of
 responding entities that have demonstrated  the  general  capability  to
 perform  the  alternative  project  delivery  contract.  Such list shall
 consist of a specified number of responding entities, as  determined  by
 the  corporation,  and  shall  be generated based upon the corporation's
 review of responses to a publicly advertised request for qualifications.
 The corporation's request for qualifications  shall  include  a  general
 description  of  the public work, the maximum number of responding enti-
 ties to be included on such list, the selection criteria to be used  and
 the  relative  weight  of  each  criteria  in generating such list. Such
 selection criteria shall include the qualifications  and  experience  of
 the  entity or team of entities, organization, demonstrated responsibil-
 ity, ability of the entity or team of entities or of a member or members
 of the entity or team of entities to  comply  with  applicable  require-
 ments,  including the provisions of articles one hundred forty-five, one
 hundred forty-seven and one hundred forty-eight of  the  education  law,
 past  record of compliance with the labor law, and such other qualifica-
 tions the corporation deems appropriate, which may include but  are  not
 limited  to  project  understanding,  financial capability and record of
 past performance. The corporation shall evaluate and rate all responding
 entities to the request for qualifications. Based upon such ratings, the
 corporation shall list the responding  entities  that  shall  receive  a
 request for proposals in accordance with subparagraph (ii) of this para-
 graph.  To the extent consistent with applicable federal law, the corpo-
 ration shall consider, when  awarding  any  contract  pursuant  to  this
 section,  the  participation of: (1) responding entities that are certi-
 fied as minority- or women-owned business enterprises pursuant to  arti-
 cle  fifteen-A  of the executive law, or certified pursuant to local law
 as minority- or women-owned business  enterprises;  (2)  small  business
 concerns  identified  pursuant to subdivision (b) of section one hundred
 thirty-nine-g of the state finance law; and (3) business  concerns  that
 provide  economic  opportunities  for low and very low-income persons in
 accordance with section three of the federal housing and urban  develop-
 ment  act of nineteen hundred sixty-eight, as amended, or chapter seven-
 ty-nine of the New York city charter, as applicable,  or  any  successor
 provision.  In  addition,  nothing  in  this  section shall be deemed to
 supersede any  prequalification  policies  adopted  by  the  corporation
 pursuant to this section.
   (ii)  Step two. The second step shall be the selection of the proposal
 which is the best value to the corporation. The corporation shall  issue
 a  request  for  proposals to the responding entities listed pursuant to
 subparagraph (i) of this paragraph. If such a responding entity consists
 of a team of separate entities, the entities that comprise such  a  team
 shall  remain unchanged from the responding entity as listed pursuant to
 subparagraph (i) of this paragraph  unless  otherwise  approved  by  the
 corporation. The request for proposals shall set forth the public work's
 scope of work, and other requirements, as determined by the corporation,
 which  may  include  separate  goals  for  work under the contract to be
 performed by businesses certified as minority- or  women-owned  business
 enterprises  pursuant  to  article  fifteen-A  of  the executive law, or
 S. 8494                            27
 
 certified pursuant to local law as  minority-  or  women-owned  business
 enterprises,  or  goals  established  pursuant  to  section three of the
 federal housing and urban development act  of  nineteen  hundred  sixty-
 eight,  as  amended,  or  any  successor provision, if applicable.   The
 request for proposals shall also specify the  criteria  to  be  used  to
 evaluate the responses and the relative weight of each of such criteria.
 Such criteria shall include: the quality of the proposal's solution; the
 qualifications  and  experience  of  the  proposer; the proposal's cost,
 which may include factors that may be considered individually or in  the
 aggregate,  such as the proposed cost of design phase work, the proposed
 cost  of  construction  phase  work,  or  cost   factors   relating   to
 construction  phase work, as applicable; and other factors deemed perti-
 nent by the corporation, which may include, but shall not be limited to,
 the proposal's  manner  and  schedule  of  project  implementation,  the
 proposer's  ability  to  complete  the work in a timely and satisfactory
 manner, maintenance costs of the completed public work,  maintenance  of
 traffic  approach,  and community impact.  The corporation may engage in
 negotiations or other discussions with all qualified vendors  that  have
 expressed  interest,  provided  that the corporation maintains a written
 record of the conduct of negotiations or discussions and the  basis  for
 every  determination  to  continue  or suspend negotiations, and further
 provided that if the corporation determines for a particular contract or
 for a particular type of contract that it is in the  corporation's  best
 interest to negotiate or enter into discussions with fewer proposers, it
 may make such a determination in writing. If the corporation enters into
 such  negotiations,  the corporation shall allow all proposers to revise
 their proposals upon conclusion of  negotiations,  and  the  corporation
 shall  evaluate  the  proposers'  revised  proposals  using the criteria
 included in the request for proposals. Any contract awarded pursuant  to
 this  section shall be awarded to a responsive and responsible proposer,
 which, in consideration of these and  other  specified  criteria  deemed
 pertinent,  offers  the best value as determined by the corporation. The
 request for proposals shall include a  statement  that  proposers  shall
 designate  in  writing those portions of the proposal that contain trade
 secrets or other proprietary information that are  to  remain  confiden-
 tial,  so  that the material designated as confidential shall be readily
 separable from the  proposal.  Nothing  in  this  subdivision  shall  be
 construed  to  prohibit  the corporation from negotiating final contract
 terms and conditions including cost. All proposals  submitted  shall  be
 scored according to the criteria listed in the request for proposals and
 such  final scores shall be published on the corporation's website after
 the date upon which such contract may be implemented.
   b. The  corporation,  in  awarding  an  alternative  project  delivery
 contract  to  a contractor offering the best value may use the following
 types of contracts:
   (i) A cost-plus  not  to  exceed  guaranteed  maximum  price  form  of
 contract in which the corporation shall be entitled to monitor and audit
 all  costs.  In  establishing the schedule and process for determining a
 guaranteed maximum price, the contract between the corporation  and  the
 contractor shall include terms specifying the price for the design phase
 of  the  work,  the  scope  of the work, and any applicable cost factors
 relating to construction phase work that were included in  the  contrac-
 tor's  proposal.  A fair and reasonable guaranteed maximum price for the
 construction phase of the work, or portions of the construction phase of
 the work, may be agreed to as one or more amendments  to  such  contract
 based on developments in the design of the project that occur after such
 S. 8494                            28
 
 contract is executed. Each guaranteed maximum price amendment shall: (1)
 describe the scope of the portion of the construction phase work subject
 to  the  amendment,  the  cost  of performing such work, and the maximum
 costs  of any contingencies related to such work; (2) include a detailed
 line item cost breakdown; (3) include a list of all drawings, specifica-
 tions and other information on which the  guaranteed  maximum  price  is
 based;  (4)  include  the  dates  of substantial and final completion on
 which the guaranteed maximum price is  based,  as  applicable;  and  (5)
 include  a  schedule  of  unit  prices. The corporation shall maintain a
 written record of each guaranteed maximum price amendment,  which  shall
 include  a  summary  of the negotiation process and a description of the
 relevant developments in the design of  the  project,  independent  cost
 estimates  prepared  by  or  on  behalf  of the corporation, as required
 pursuant to a policy established by the  corporation,  the  contractor's
 actual  cost  schedules  and unit prices, and any other factors that the
 corporation considered. If the corporation  and  the  contractor  cannot
 agree  upon  a  guaranteed  maximum  price  for  one or more portions of
 construction phase work, the corporation may direct  the  contractor  to
 assign  all or a portion of the duties and rights under such alternative
 project delivery contract to another responsive and responsible proposer
 pursuant to subparagraph (ii) of paragraph a of  this  subdivision  that
 offered the best value of the remaining proposers and that will agree to
 accept  such  assignment.    This  subparagraph  shall  not be deemed to
 prohibit the use of any contract terms or  procedures  pursuant  to  any
 other provision of law, including but not limited to provisions included
 in this article;
   (ii)  A  lump  sum contract in which the contractor agrees to accept a
 set dollar amount for a contract which comprises a  single  bid  without
 providing  a  cost breakdown for all costs such as for equipment, labor,
 materials, as well as such contractor's profit for completing all  items
 of work comprising the public work;
   (iii)  Incentive  payments  identified in the text of the contract for
 performance objectives; or
   (iv) A combination of elements of the contract types authorized pursu-
 ant to this paragraph.
   2. All alternative project delivery contracts entered into pursuant to
 this section shall include a  clause  requiring  that  any  professional
 services  regulated  by  articles  one  hundred  forty-five, one hundred
 forty-seven and one hundred forty-eight of the education  law  shall  be
 performed  and  stamped and sealed, where appropriate, by a professional
 licensed in accordance with the appropriate article.
   3. The submission of a proposal or responses or the  execution  of  an
 alternative project delivery contract pursuant to this section shall not
 be  construed  to be a violation of section sixty-five hundred twelve of
 the education law.
   4. Each alternative project delivery  contract  entered  into  by  the
 corporation  pursuant  to  this section shall comply with the objectives
 and goals  relating  to  the  performance  of  design  and  construction
 services  by  minority- and women-owned business enterprises pursuant to
 section 6-129 of the administrative code of the city of  New  York,  or,
 for  projects  or public works receiving federal aid, applicable federal
 requirements for disadvantaged business  enterprises  or  minority-  and
 women-owned  business enterprises and section three of the federal hous-
 ing and urban  development  act  of  nineteen  hundred  sixty-eight,  as
 amended, or chapter seventy-nine of the New York city charter, as appli-
 cable or any successor provision.
 S. 8494                            29
 
   5. a. Notwithstanding any provision of law to the contrary, all rights
 or   benefits,   including  terms  and  conditions  of  employment,  and
 protection of civil service and  collective  bargaining  status  of  all
 employees  of  the  corporation  solely in connection with the use of an
 alternative  project delivery contract pursuant to this section shall be
 preserved and protected.
   b. The use of alternative project delivery contracts pursuant to  this
 section  shall  not  result  in  the:  (i) displacement of any currently
 employed worker of  the  corporation  or  loss  of  position,  including
 partial  displacement  such  as a reduction in the hours of non-overtime
 work, wages or employment benefits,  or  result  in  the  impairment  of
 existing  collective bargaining agreements to which the corporation is a
 party; or (ii) transfer of existing  duties  and  functions  related  to
 maintenance  and operations currently performed by existing employees of
 the corporation to a contractor.
   c. Employees of the corporation serving in positions in newly  created
 titles  shall  be  assigned  to the appropriate bargaining unit. Nothing
 contained in this section shall be construed to affect: (i) the existing
 rights of employees of the corporation pursuant to an  existing  collec-
 tive  bargaining agreement; (ii) the existing representational relation-
 ships among employee organizations representing employees of the  corpo-
 ration;  or  (iii)  the bargaining relationships between the corporation
 and such employee organizations.
   d. Without limiting contractors' obligations under alternative project
 delivery contracts to issue their own initial certifications of substan-
 tial completion and final completion, public  employees  of  the  corpo-
 ration shall review and determine whether the work performed by contrac-
 tors  is  acceptable  and  has  been  performed  in  accordance with the
 applicable alternative project delivery contracts, and  if  such  public
 employees  so determine, such public employees shall accept contractors'
 substantial or final completion  of  the  public  works  as  applicable.
 Performance  by  public  employees  of  the  corporation  of  any review
 described in this subdivision shall not be construed to modify or  limit
 contractors'  obligations  to perform the work in strict accordance with
 the applicable alternative project delivery contract or the contractors'
 or any subcontractors' obligations or liabilities under any law.
   § 16. Technical assistance. The corporation shall create  an  internal
 office dedicated to creating educational materials and providing techni-
 cal  assistance to residents of its residential projects, housing compa-
 nies, tenants, tenant organizations, not-for-profit corporations operat-
 ing in the state of New York, and the general public concerning resident
 elections, the organization, management, and operation of housing  coop-
 eratives, community land trusts, and tenant organizations, and the meth-
 od  by  which  tenants, tenant organizations, or owners of distressed or
 non-distressed properties may engage with the corporation concerning the
 acquisition of real property, among other subjects  deemed  relevant  by
 the  corporation.  Such  assistance  shall  include  standard  forms and
 templates that comply with state law and  the  corporation's  rules  and
 regulations.
   §  17. Vouchers. In order to provide more deeply affordable housing to
 residents, the corporation may enter into agreements with the management
 of residential projects owned by the corporation, whether  or  not  such
 management  is  an employee or subsidiary of the corporation or a third-
 party, for the issuance of vouchers by the corporation to  such  manage-
 ment,  subject to the conditions of this section. Such vouchers shall be
 issued to a residential project's management on a monthly basis.  Vouch-
 S. 8494                            30
 
 er payments and associated contracts shall be non-transferable and  non-
 assignable  and  shall  remain  tied to the dwelling unit for which they
 were initially issued. Voucher payments shall  be  used  exclusively  to
 defray  maintenance and operating costs or debt service payments on such
 dwelling unit, if any.  Any excess remainder between the sum of a vouch-
 er payment, the rent collected for such unit, and the  costs  associated
 with such unit shall be transmitted back to the corporation forthwith.
   §  18.  Additional  provisions related to acquisition. The corporation
 shall make temporary relocation assistance available to  any  households
 of a building slated to be demolished by the corporation in favor of new
 construction  or  scheduled  for  rehabilitation in any manner that will
 necessarily displace such households. Such assistance  shall  be  in  an
 amount  to  be  determined  by  the corporation and corresponding to the
 necessary and actual expenses incurred by such households as a result of
 such temporary relocation. Such households shall have  priority  in  the
 selection of tenants for the lease of units available in any residential
 project  newly  constructed  or rehabilitated on the site of such house-
 holds' former home or in any other  residential  project  owned  by  the
 corporation,  which shall be similar in size to the unit from which such
 household was initially displaced.
   § 19. Reports and evaluations. The corporation  shall  submit  to  the
 governor,  the  temporary president of the senate and the speaker of the
 assembly, no later than thirty days  following  the  submission  of  the
 annual independent audit report pursuant to section twenty-eight hundred
 two of the public authorities law, a complete detailed report or reports
 setting forth, to the extent such matters are not fully addressed in the
 annual independent audit report, the following:
   1. Its financial reports, including:
   a.  Audited  financials  in accordance with all applicable regulations
 and following generally accepted accounting  principles  as  defined  in
 subdivision ten of section two of the state finance law;
   b. Grant and subsidy programs;
   c. Operating and financial risks;
   d.  Current  ratings  of its bonds issued by recognized municipal bond
 rating agencies and notice changes in such ratings;
   e. Long-term liabilities, including leases and employee benefit plans;
 and
   2. An assessment of the effectiveness of its internal  control  struc-
 ture and procedures, including:
   a.  Descriptions  of  the  corporation and its major units and subsid-
 iaries;
   b. The number of employees, and  minority  and  women  employees,  for
 each;
   c. An organizational chart;
   d. Its charter, if any, and by-laws;
   e.  The  extent  of  participation by minority- and women-owned enter-
 prises in corporation contracts and services in accordance with  article
 fifteen-A of the executive law; and
   f.  A  listing of material changes in internal operations and programs
 during the reporting year.
   § 20. Subsidiaries. 1. The corporation shall have the right to  manage
 properties or projects within its portfolio, and to exercise and perform
 its powers and functions related thereto, through one or more subsidiary
 corporations or legal entities. The corporation by resolution may direct
 any  of  its  members,  officers  or  employees to organize a subsidiary
 corporation or legal entity whenever, in  the  sole  discretion  of  the
 S. 8494                            31
 
 corporation,  it is necessary or convenient to carry out such functions,
 powers, and duties.
   2.  Each  such  subsidiary  corporation  shall  be wholly owned by the
 corporation and shall be organized pursuant to the business  corporation
 law,  the  not-for-profit corporation law or the private housing finance
 law.
   3. The corporation may transfer  to  any  subsidiary  corporation  any
 money,  real  or  personal  or  mixed  property  or may convey to it any
 project in order to carry out the  purposes  and  functions  related  to
 property management. Each such subsidiary corporation shall have all the
 privileges,  immunities,  tax  exemptions  and  other  exemptions of the
 corporation to the extent the same are not inconsistent with the statute
 or statutes pursuant to which such subsidiary was incorporated.   Except
 as  may be inconsistent with the provisions of this act, such subsidiary
 shall have all the rights and powers granted by any other statute pursu-
 ant to which such subsidiary corporation was organized.
   4. No member or officer of the corporation  shall  receive  any  addi-
 tional compensation, either direct or indirect, other than reimbursement
 for  actual  and  necessary expenses incurred in the performance of such
 person's duties, by reason of such person's serving as a member,  direc-
 tor, trustee or officer of any subsidiary corporation.
   5.  The  board of a subsidiary shall be comprised wholly of the corpo-
 ration's members, officers, or employees,  insofar  as  such  employees'
 official  duties  are  pertinent  or  useful to projects managed by such
 subsidiary.
   § 21. Monies of the corporation. 1. All  monies  of  the  corporation,
 except as otherwise authorized or provided in this act, shall be paid to
 the  commissioner  of  taxation and finance as agent of the corporation,
 who shall not commingle such monies with any other monies.  Such  monies
 shall be deposited in a separate bank account or accounts. The monies in
 such  accounts shall be paid out on checks signed by the commissioner of
 taxation and finance on requisition of the chairman or treasurer of  the
 board  or  president  of  the  corporation  or  of such other officer or
 employee or officers or employees as the corporation shall authorize  to
 make  such requisition.   All deposits of such monies shall, if required
 by the commissioner of taxation  and  finance  or  the  corporation,  be
 secured  by obligations of the United States or of the state of a market
 value equal at all times to the amount of the deposit, and all banks and
 trust companies are authorized to give such security for such deposits.
   Notwithstanding the provisions of this section, the corporation  shall
 have power to contract with the holders of any of its notes or bonds, as
 to  the  custody,  collection,  securing, investment, and payment of any
 monies of the corporation, of any monies held in trust or otherwise  for
 the  payment  of notes or bonds, and to carry out such contract.  Monies
 held in trust or otherwise for the payment of notes or bonds or  in  any
 way  to secure notes or bonds and deposits of such monies may be secured
 in the same manner as monies of the corporation, and all banks and trust
 companies are authorized to give such security for such deposits.
   2. Subject to agreements with  noteholders  and  bondholders  and  the
 approval of the comptroller, the corporation shall prescribe a system of
 accounts.
   3. The comptroller, or his legally authorized representative, is here-
 by  authorized  and empowered from time to time to examine the books and
 accounts of  the  corporation  including  its  receipts,  disbursements,
 contracts,  reserve  funds,  sinking  funds,  investments, and any other
 matters relating to its financial standing. Such an examination shall be
 S. 8494                            32
 
 conducted by the comptroller at least once  in  every  five  years;  the
 comptroller  is  authorized, however, to accept from the corporation, in
 lieu of such an examination, an external examination of  its  books  and
 accounts made at the request of the corporation.
   4.  The  corporation shall submit to the governor, chair of the senate
 finance committee, chair of the assembly ways and  means  committee  and
 the comptroller, within thirty days of the receipt thereof by the corpo-
 ration,  a copy of the report of every external examination of the books
 and accounts of the corporation other than copies of the reports of such
 examinations made by the comptroller.
   5. The corporation  shall  manage  the  expenses  and  income  of  its
 projects  across  its portfolio, and the excess cash flow of any project
 shall be utilized to augment the cash flow of all other projects in  any
 manner or system the corporation deems convenient for its purposes.
   § 22. Bonds and notes of the corporation. 1. Subject to the provisions
 of  section  nineteen  of this act, the corporation shall have the power
 and is hereby authorized from time to time to issue its negotiable bonds
 and notes in  conformity  with  applicable  provisions  of  the  uniform
 commercial  code  in  such  principal amounts, as, in the opinion of the
 corporation, shall be necessary to provide sufficient funds for  achiev-
 ing  any of its corporate purposes, including the payment of interest on
 bonds and notes of the corporation, establishment of reserves to  secure
 such  bonds  and  notes,  and  all other expenditures of the corporation
 incident to and necessary or  convenient  to  carry  out  its  corporate
 purposes and powers.
   2.  All  such bonds shall be designated on their face, "New York State
 Social Housing Development Authority". The state shall not be liable  on
 notes  or  bonds of the corporation. Such notes and bonds shall not be a
 debt of the state and such notes and bonds shall  contain  on  the  face
 thereof a statement to such effect.
   3. All bonds and notes issued by the corporation may be secured by the
 full faith and credit of the corporation or may be payable solely out of
 the  revenues  and  receipts derived from the lease, mortgage or sale by
 the corporation of its projects or of any thereof, all as may be  desig-
 nated  in  the  proceedings  of the corporation under which the bonds or
 notes shall be authorized to be issued. Such  bonds  and  notes  may  be
 executed  and  delivered by the corporation at any time and from time to
 time, may be in such form and denominations and of such tenor and  matu-
 rities, may be in bearer form or in registered form, as to principal and
 interest or as to principal alone, all as the corporation may determine.
   4. Bonds may be payable in such installments and at such time or times
 not  exceeding fifty years from the date thereof, as shall be determined
 by the corporation.
   5. Notes, or any renewals thereof, may be payable in such installments
 and at such time or times as shall be determined by the corporation, not
 exceeding ten years from the date of the original issue of such notes.
   6. Bonds and notes may be payable at  such  place  or  places  whether
 within  or  without  the  state, may bear interest at such rate or rates
 payable at such time or times and at such place or places and  evidenced
 in  such  manner, and may contain such provisions not inconsistent here-
 with, all as shall be provided in the  proceedings  of  the  corporation
 under which the bonds or notes shall be authorized to be issued.
   7.  If  deemed  advisable by the corporation, there may be retained in
 the proceedings under which any bonds or notes of  the  corporation  are
 authorized  to  be issued an option to redeem all or any part thereof as
 may be specified in such proceedings, at such price or prices and  after
 S. 8494                            33

 such  notice  or  notices and on such terms and conditions as may be set
 forth in such proceedings and as may be recited in the face of the bonds
 or notes, but nothing herein contained shall be construed to  confer  on
 the  corporation any right or option to redeem any bonds or notes except
 as may be provided in the proceedings under which they shall be issued.
   8. Any bonds or notes of the corporation may be sold at such price  or
 prices,  at public or private sale, in such manner and from time to time
 as may be determined by the corporation, and the corporation may pay all
 expenses, premiums and commissions which it may deem necessary or advan-
 tageous in connection with the issuance and sale thereof.  No  bonds  or
 notes  of  the  corporation may be sold at private sale, however, unless
 such sale and the terms thereof have been approved in  writing  by:  (i)
 the  comptroller  where such sale is not to the comptroller, or (ii) the
 state director of the budget, where such sale is to the comptroller.
   9. Any moneys of the corporation, including proceeds from the sale  of
 any  bonds  or  notes, and revenues, receipts and income from any of its
 projects or mortgages, may be invested  and  reinvested  in  such  obli-
 gations,  securities  and  other investments as shall be provided in the
 resolution or resolutions under which such bonds or  notes  are  author-
 ized.
   10.  Issuance  by  the  corporation  of one or more series of bonds or
 notes for one or more purposes shall not preclude it from issuing  other
 bonds or notes in connection with the same project or any other project,
 but  the  proceedings  whereunder  any  subsequent bonds or notes may be
 issued shall recognize and protect any prior pledge or mortgage made for
 any prior issue of bonds or notes unless in the proceedings  authorizing
 such  prior  issue  the  right  is reserved to issue subsequent bonds or
 notes on a parity with such prior issue.
   11. The corporation is authorized to provide for the issuance  of  its
 bonds  or  notes  for the purpose of refunding any bonds or notes of the
 corporation then outstanding, including the payment  of  any  redemption
 premium thereon and any interest accrued or to accrue to the earliest or
 subsequent  date  of  redemption,  purchase or maturity of such bonds or
 notes, and, if deemed advisable by the corporation, for  the  additional
 purpose  of  paying all or any part of the cost of acquiring, construct-
 ing, reconstructing, rehabilitating, or improving any  project,  or  the
 making  of  any  mortgage  loan on any project. The proceeds of any such
 bonds or notes issued for the purpose of refunding outstanding bonds  or
 notes,  may,  in  the  discretion  of the corporation, be applied to the
 purchase or retirement at maturity or  redemption  of  such  outstanding
 bonds  or  notes  either  on their earliest or any subsequent redemption
 date, and may, pending such application,  be  placed  in  escrow  to  be
 applied to such purchase or retirement at maturity or redemption on such
 date  as  may  be  determined  by  the  corporation.  Any  such escrowed
 proceeds, pending such use, may be  invested  and  reinvested  in  obli-
 gations  of or guaranteed by the United States of America, or in certif-
 icates of deposit or time deposits secured in such manner as the  corpo-
 ration  shall  determine,  maturing  at  such  time or times as shall be
 appropriate to assure the prompt payment, as to principal, interest  and
 redemption  premium,  if any, on the outstanding bonds or notes to be so
 refunded. The interest, income and profits, if any, earned  or  realized
 on  any  such  investment  may  also  be  applied  to the payment of the
 outstanding bonds or notes to be so refunded. After  the  terms  of  the
 escrow  have  been  fully satisfied and carried out, any balance of such
 proceeds and interest, income and profits, if any, earned or realized on
 the investments thereof may be returned to the corporation for use by it
 S. 8494                            34
 
 in any lawful manner. The portion of the proceeds of any such  bonds  or
 notes issued for the additional purpose of paying all or any part of the
 cost  of  acquiring,  constructing,  reconstructing,  rehabilitating, or
 improving  any  project,  or  the  making  of  any  mortgage loan on any
 project, may be invested and reinvested in obligations of or  guaranteed
 by  the  United  States  of America, maturing not later than the time or
 times when such proceeds will be needed for the purpose of paying all or
 any part of such cost, or the making of  any  such  mortgage  loan.  The
 interest, income and profits, if any, earned or realized on such invest-
 ments  may be applied to the payment of all or any part of such cost, or
 the making of any such mortgage loan, or may be used by the  corporation
 in  any  lawful  manner.  All  such  bonds  or notes shall be issued and
 secured and shall be subject to the provisions of this act in  the  same
 manner  and to the same extent as any other bonds or notes issued pursu-
 ant to this act.
   § 23. Debt service reserve funds. 1. The corporation  may  create  and
 establish  one or more reserve funds to be known as debt service reserve
 funds and may pay into such reserve funds: (i) any  moneys  appropriated
 and made available by the state for the purposes of such funds; (ii) any
 proceeds of sale of bonds and notes to the extent provided in the resol-
 ution of the corporation authorizing the issuance thereof; and (iii) any
 other  moneys  which  may  be  made available to the corporation for the
 purposes of such funds from any other source or sources. The moneys held
 in or credited to any debt service reserve fund established  under  this
 subdivision,  except  as  hereinafter provided, shall be used solely for
 the payment of the principal of bonds of the corporation secured by such
 reserve fund, as the same mature, the purchase  of  such  bonds  of  the
 corporation, the payment of interest on such bonds of the corporation or
 the  payment  of  any  redemption  premium required to be paid when such
 bonds are redeemed prior to maturity; provided, however, that moneys  in
 any  such  fund  shall  not  be  withdrawn therefrom at any time in such
 amount as would reduce the amount of such fund to less than the  maximum
 amount  of  principal  and  interest  maturing  and  becoming due in any
 succeeding calendar year on the bonds of the corporation then  outstand-
 ing  and  secured by such reserve fund, except for the purpose of paying
 principal and interest on the bonds of the corporation secured  by  such
 reserve  fund  maturing  and  becoming  due and for the payment of which
 other moneys of the corporation are not available. Any income or  inter-
 est  earned  by, or increment to, any such debt service reserve fund due
 to the investment thereof may  be  transferred  to  any  other  fund  or
 account  of  the corporation to the extent it does not reduce the amount
 of such debt service reserve fund below the maximum amount of  principal
 and  interest  maturing and becoming due in any succeeding calendar year
 on all bonds of the corporation then outstanding  and  secured  by  such
 reserve fund.
   2.  The  corporation  shall not issue bonds at any time if the maximum
 amount of principal and interest maturing and becoming due in a succeed-
 ing calendar year on the bonds outstanding and then  to  be  issued  and
 secured  by  a  debt service reserve fund will exceed the amount of such
 reserve fund at the time of issuance, unless  the  corporation,  at  the
 time  of issuance of such bonds, shall deposit in such reserve fund from
 the proceeds of the bonds so to be issued, or otherwise, an amount which
 together with the amount then in such reserve fund,  will  be  not  less
 than  the maximum amount of principal and interest maturing and becoming
 due in any succeeding calendar year on the bonds then to be  issued  and
 S. 8494                            35
 
 on  all  other  bonds of the corporation then outstanding and secured by
 such reserve fund.
   3.  To  assure the continued operation and solvency of the corporation
 for the carrying out of the public purposes of this  act,  provision  is
 made  in  subdivision  one  of this section for the accumulation in each
 debt service reserve fund of an amount equal to the  maximum  amount  of
 principal  and  interest  maturing  and  becoming  due in any succeeding
 calendar year on all bonds  of  the  corporation  then  outstanding  and
 secured  by  such reserve fund.   In order further to assure the mainte-
 nance of such debt service reserve funds, there shall be annually appor-
 tioned and paid to the corporation for  deposit  in  each  debt  service
 reserve  fund such sum, if any, as shall be certified by the chairman of
 the corporation to the governor and state  director  of  the  budget  as
 necessary to restore such reserve fund to an amount equal to the maximum
 amount  of  principal  and  interest  maturing  and  becoming due in any
 succeeding calendar year on the bonds of the corporation then  outstand-
 ing  and  secured  by such reserve fund. The chairman of the corporation
 shall annually, on or before December first, make  and  deliver  to  the
 governor  and  state  director of the budget his certificate stating the
 sum, if any, required to restore each such debt service reserve fund  to
 the amount aforesaid, and the sum or sums so certified, if any, shall be
 apportioned  and  paid  to the corporation during the then current state
 fiscal year.
   4. In computing any debt service reserve fund for the purposes of this
 section, securities in which all or a portion of such reserve fund shall
 be invested shall be valued at par, or if purchased at less than par, at
 their cost to the corporation.
   § 24. Dissolution of the corporation. 1. The corporation may  only  be
 dissolved  after a unanimous decision by the board, and a concurrent law
 effecting the same passed by the members of  the  assembly  and  senate,
 which  shall  be  signed  by  the  governor. The board shall give ninety
 calendar days' advance notice of any consideration of  a  resolution  to
 dissolve the corporation, which the corporation shall publish in a news-
 paper  of  general  circulation  in every city with a population greater
 than five hundred thousand people, post prominently and continuously  on
 the  homepage  of  any  website  maintained  by the corporation, send by
 certified mail to the trustee of any outstanding  bonds  of  the  corpo-
 ration,  and  post conspicuously in the common spaces of any residential
 projects owned by the corporation or its  subsidiaries.    Residents  of
 residential  projects owned by the corporation or its subsidiaries shall
 be given adequate opportunity to comment on such resolution  in  advance
 of its consideration.
   2.  Upon  dissolution  of the corporation, any residential projects or
 real property formerly owned by the corporation shall be held  in  trust
 by  the  department of housing and community renewal, which shall assume
 the former corporation's responsibilities in relation to  such  residen-
 tial  projects  or  real  properties  until such time as the legislature
 shall create a process by which such properties are fairly and responsi-
 bly disposed of to residents or third-parties.
   § 25. Court proceedings. Any action or proceeding to which the  corpo-
 ration  or  the people of the state of New York may be parties, in which
 any question arises as to the validity of this act, shall  be  preferred
 over  all other civil causes except election causes in all courts of the
 state of New York and shall be heard and determined in preference to all
 other civil business pending therein except election  causes,  irrespec-
 tive  of  position on the calendar. The same preference shall be granted
 S. 8494                            36
 
 upon application of counsel to the corporation in any action or proceed-
 ing questioning the validity of this act in which they may be allowed to
 intervene.  The venue of any such action or proceeding shall be laid  in
 the county in which the principal office of the corporation is located.
   §  26.  Actions  against  the  corporation. 1. Except in an action for
 wrongful death, no action or proceeding shall  be  prosecuted  or  main-
 tained  against the corporation for personal injury or damage to real or
 personal property alleged to have been sustained by reason of the negli-
 gence or wrongful act of the corporation or of any member of the  board,
 officer,  agent  or employee thereof, unless: (i) it shall appear by and
 as an allegation in the complaint or moving  papers  that  a  notice  of
 claim  shall  have been made and served upon the corporation, within the
 time limit prescribed by and in compliance with section fifty-e  of  the
 general  municipal  law; (ii) it shall appear by and as an allegation in
 the complaint or moving papers that at least thirty  days  have  elapsed
 since  the service of such notice and that adjustment or payment thereof
 has been neglected or refused; and (iii) the action or proceeding  shall
 be  commenced  within  the  period provided under section fifty-i of the
 general municipal law. An action against the  corporation  for  wrongful
 death shall be commenced in accordance with the notice of claim and time
 limitation  provisions  of  title  eleven  of article nine of the public
 authorities law.
   2. Wherever a notice of claim is served upon the corporation, it shall
 have the right to demand an examination of the claimant relative to  the
 occurrence  and  extent  of  the  injuries or damages for which claim is
 made, in accordance with the provisions of section fifty-h of the gener-
 al municipal law.
   3. The corporation may require any person presenting for settlement an
 account or claim for any cause whatsoever against the corporation to  be
 sworn  before  a member of the board, counsel or an attorney, officer or
 employee thereof designated for such purpose, concerning such account or
 claim and when so sworn, to answer orally as to any  facts  relative  to
 such  account  or  claim.  The corporation shall have power to settle or
 adjust any claims in favor of or against the corporation.
   4. The rate of interest to be paid by the corporation upon  any  judg-
 ment  for  which  it is liable, other than a judgment on bonds, notes or
 other obligations, shall not exceed the rate of  interest  on  judgments
 and  accrued  claims  against  municipal  authorities as provided in the
 general municipal law. Interest on payments of principal or interest  on
 any  bonds,  notes  or  other obligations in default shall accrue at the
 rate specified in the general municipal  law  until  paid  or  otherwise
 satisfied.
   § 27. Limited liability. 1. As used in this section, the term "employ-
 ee" shall mean the members of the board, president, officers, employees,
 or  a  former  employee,  their  estate or judicially appointed personal
 representative.
   2. Neither the members of the board nor any officers  or  employee  of
 the  corporation acting on behalf thereof, while acting within the scope
 of such person's authority, shall be subject to any liability  resulting
 from carrying out any of the powers expressly given in this act.
   3. At the request of the employee, and upon compliance by the employee
 with  the  provisions of this section, the corporation shall provide for
 the defense of an employee in any civil  action  or  proceeding  in  any
 state or federal court, arising out of any alleged act or omission which
 the  corporation finds occurred while the employee was acting within the
 scope of their public employment and in the discharge  of  their  public
 S. 8494                            37
 
 duties  and was not in violation of any rule or regulation of the corpo-
 ration at the time the alleged act or omission occurred.  This  duty  to
 provide  for  a  defense  and indemnification shall not arise where such
 civil action or proceeding is brought by or on behalf of the corporation
 against the employee.
   4.  The corporation shall indemnify and hold harmless its employees in
 the amount of any civil judgment obtained against such employees in  any
 state  or  federal  court, or in the amount of any settlement of a claim
 approved by the corporation provided that the act or omission from which
 such judgment or settlement arose occurred while the employee was acting
 within the scope of their public employment  and  in  the  discharge  of
 their  public  duties and was not in violation of any rule or regulation
 of the corporation at the time the alleged damages were  sustained.  The
 duty to indemnify and hold harmless prescribed by this section shall not
 arise  where  the injury or damage resulted from an intentional wrongdo-
 ing, or recklessness on the  part  of  the  employee.  Nothing  in  this
 section shall authorize the corporation to indemnify or hold harmless an
 employee  with respect to punitive or exemplary damages, fines or penal-
 ties.
   5. The duty to defend and indemnify and hold  harmless  prescribed  by
 this  section shall be conditioned upon: (i) delivery by the employee to
 the president or general counsel of the corporation at the office of the
 corporation of the original or a copy of any summons, complaint,  claim,
 process,  notice,  demand or pleading within ten days after the employee
 is served with such document; and  (ii)  the  full  cooperation  of  the
 employee  in  the defense of such action or proceeding and in defense of
 any action or proceeding against the corporation based upon the same act
 or omission, and in the prosecution of any appeal. Such  delivery  shall
 be  deemed  a  request  by the employee that the corporation provide for
 their defense pursuant to this section. In the  event  that  the  corpo-
 ration  shall  assume  an employee's defense and thereafter the employee
 fails or refuses to cooperate in the formation or presentation of  their
 defense,  the  court shall permit the corporation to withdraw its repre-
 sentation ten days after giving written notice to the  employee  of  its
 intention to discontinue such representation.
   6. In the event that the act or omission upon which the court proceed-
 ing  against  the employee is based was or is also the basis of a disci-
 plinary proceeding by the corporation against  the  employee,  represen-
 tation  and  indemnification  by  the  corporation, as set forth in this
 section, may be withheld: (i) until  such  disciplinary  proceeding  has
 been  resolved;  and  (ii)  unless  the  resolution  of the disciplinary
 proceeding exonerated the employee as to such act or omission.
   7. Subject to the conditions set forth in this section, such  employee
 shall be entitled to representation by the general counsel of the corpo-
 ration  or  by any attorney or attorneys designated by the general coun-
 sel; provided, however, that  the  employee  shall  be  entitled  to  be
 represented  by  private  counsel of their choice in any civil action or
 proceeding whenever the corporation determines that representation would
 be inappropriate, or whenever a court, upon appropriate motion or other-
 wise by a special proceeding, determines that  a  conflict  of  interest
 exists  and  that  the employee is entitled to be represented by private
 counsel of the employee's choice. The general counsel of the corporation
 shall notify the employee in writing  of  such  determination  that  the
 employee  is  entitled  to  be represented by private counsel. Provided,
 however, that the corporation may require, as a condition to payment  of
 the fees and expenses of such representation, that appropriate groups of
 S. 8494                            38
 
 such employees be represented by the same counsel. Reasonable attorneys'
 fees  and  litigation  expenses shall be paid by the corporation to such
 private counsel from time to time during the pendency of a civil  action
 or proceeding.
   8. Any dispute with respect to representation of multiple employees by
 a  single counsel or the reasonableness of attorneys' fees or the amount
 of litigation expenses shall be resolved by the court upon motion or  by
 way of a special proceeding.
   9.  The  benefits  of  this  section  shall inure only to employees as
 defined in this section and shall not enlarge or diminish the rights  of
 any  other party nor shall any provision of this section be construed to
 affect, alter or repeal any provision of the workers' compensation law.
   10. The provisions of this section shall not be construed in  any  way
 to  impair,  alter,  limit  or  modify the rights and obligations of any
 insurer under any policy of insurance.
   11. Except as otherwise specifically provided  in  this  section,  the
 provisions  of this section shall not be construed in any way to impair,
 alter, limit, modify, abrogate or restrict any immunity available to  or
 conferred  upon  any  unit,  entity,  member, officer or employee of the
 corporation, or any right to defense or indemnification provided for any
 member, officer or employee by, in accordance with, or by reason of, any
 other provision of state, federal or local law or common law.
   12. Every action or proceeding instituted pursuant to  the  provisions
 of  this  section  shall  be commenced pursuant to section twenty-six of
 this act and subject to any condition or limitation set  forth  in  such
 section.
   13.  The  provisions  of  this  section shall apply to the actions and
 proceedings set forth herein notwithstanding any inconsistent provisions
 of state or local law.
   § 28. Public employer. For the purposes of  article  fourteen  of  the
 civil  service  law,  the  corporation  shall  be  deemed to be a public
 employer and as such shall negotiate with and enter into written  agree-
 ments  with  employee organizations representing the staff of the corpo-
 ration that have been certified or recognized under  such  article.  The
 state  public  employment relations board shall have exclusive jurisdic-
 tion for the purpose of administering the provisions of such article and
 the provisions of section two hundred twelve of such article  shall  not
 be applicable to any such negotiations.
   §  29.  Made  in New York. To the greatest degree possible, the corpo-
 ration shall  strive  to  procure  materials  for  the  construction  of
 projects  which  are manufactured in whole or part in the state. If such
 materials cannot be procured that are manufactured in whole or  part  in
 the  state,  the  corporation  shall,  to  the greatest degree possible,
 strive to procure materials for the construction of projects  which  are
 produced in the United States.
   §  30.  Public records and public meetings. 1. The board shall promul-
 gate policies for compliance with articles six and seven of  the  public
 officers law and may update such policies at its discretion.
   2.  Meetings of the board and notes and minutes recorded thereof shall
 be public record.  The board shall publish a schedule for  its  meetings
 at  least  ninety days in advance of such meetings, and shall publish an
 agenda for any meeting at least two weeks in advance  of  such  meeting.
 Meetings  shall  be recorded and broadcast online in a manner accessible
 by the general public and such recordings shall remain online,  together
 with the associated agendas and minutes for review by the general public
 after such meetings have occurred.
 S. 8494                            39
 
   §  31.  Tax exemption. 1. It is hereby determined that the creation of
 the corporation and the carrying out of its corporate purposes is in all
 respects for the benefit of the people of the state of New York and is a
 public purpose.  Accordingly,  the  corporation  shall  be  regarded  as
 performing  an  essential  governmental  function in the exercise of the
 powers conferred upon it by this act, and the corporation shall  not  be
 required  to  pay  any fees, taxes, special ad valorem levies or assess-
 ments of any kind, including, but not limited to, franchise taxes, sales
 taxes or other taxes, upon or with respect to any property owned  by  it
 or  under  its  jurisdiction,  control  or supervision, or upon the uses
 thereof, or upon or with respect to  its  activities  or  operations  in
 furtherance of the powers conferred upon it by this act, or upon or with
 respect  to any fares, tolls, rentals, rates, charges, fees, revenues or
 other income received by the corporation.
   2. Any bonds, notes or other obligations issued pursuant to  this  act
 together  with  the  income  therefrom shall at all times be exempt from
 taxation.
   3. The state hereby covenants with the purchasers and with all  subse-
 quent  holders  and  transferees  of  bonds,  notes or other obligations
 issued by the corporation pursuant to this act, in consideration of  the
 acceptance  of  and  payment  for the bonds, notes or other obligations,
 that the bonds, notes or other obligations  of  the  corporation  issued
 pursuant  to this act and the income therefrom and all revenues, monies,
 and other property pledged to pay or  to  secure  the  payment  of  such
 bonds,  notes or other obligations shall at all times be free from taxa-
 tion.
   4. Notwithstanding any provision in this section to the contrary,  the
 corporation  may pay, or may enter into agreements with any municipality
 to pay, a sum or sums,  annually  or  otherwise,  or  to  provide  other
 considerations  to  such  municipality, with respect to real property of
 the corporation located within such municipality and provided  that  any
 such  payment  or  agreement  to pay shall be subject to approval by the
 corporation.
   § 32. Construction. This act, being necessary for the welfare  of  the
 state  and its inhabitants, shall be liberally construed so as to effec-
 tuate its purposes.
   § 33. Inconsistent provisions of other laws superseded. Insofar as the
 provisions of this act are inconsistent with the provisions of any other
 act, general or special, the provisions of this act  shall  be  control-
 ling.
   § 34. Severability. If any provision of this act or its application to
 any person or circumstance is held unconstitutional or invalid, in whole
 or  in  part, by any court, such holding of unconstitutionality or inva-
 lidity shall in no way affect or impair any other provision of this  act
 or  the application of any such provision to any other person or circum-
 stance, and to this end the provisions of this act are severable.
   § 35. Appropriation. The sum of sixty million  dollars  ($60,000,000),
 or  so  much  thereof as may be necessary, is hereby appropriated to the
 corporation out of any moneys in the state treasury in the general  fund
 and  made  immediately  available  for  the  purpose of carrying out the
 provisions of this act, namely  in  the  creation,  administration,  and
 staffing  of the corporation.  Such moneys shall be payable on the audit
 and warrant of the state comptroller on vouchers certified  or  approved
 in the manner prescribed by law.
   § 36. This act shall take effect immediately.