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This entry was published on 2016-04-08
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Subsidiaries: how created
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 12. Subsidiaries: how created. (1) The corporation shall have the
right to exercise and perform its powers and functions through one or
more subsidiary corporations. The corporation by resolution may direct
any of its directors, officers or employees to organize a subsidiary
corporation pursuant to either the business corporation law, the
not-for-profit corporation law or articles two, four or eleven of the
private housing finance law. Such resolution shall prescribe the
purposes for which such subsidiary corporation is to be formed.

Such corporation shall be deemed a subsidiary corporation whenever and
so long as (i) more than half of any voting shares of such subsidiary
are owned or held by the corporation, or (ii) a majority of the
directors, trustees or members of such subsidiary are designees of the

* The empire state new market corporation, a community development
entity certified by the United States Department of the Treasury
Community Development Financial Institutions Fund and a corporate
subsidiary of the corporation, by resolution, may direct any of its
directors, officers, or employees to form limited liability companies
pursuant to section 203 of the limited liability company law for the
sole purpose of certifying and performing as community development
entities that would be eligible to receive an allocation of tax credits
under the new markets tax credit program. No limited liability company
formed pursuant to this section shall merge or consolidate. Each limited
liability company shall act solely in relation to projects selected by
the corporation, or a corporate subsidiary of the corporation. Each
limited liability company shall be empowered to receive an allocation of
tax credits from a federal allocation to the corporation, or a corporate
subsidiary of the corporation, under the new markets tax credit program
and to do any other act or things incidental to or connected with the
foregoing purposes or in advancement thereof. The corporation, or a
corporate subsidiary of the corporation, shall be the managing member of
each limited liability company created by the corporation. In
determining which projects to allocate tax credits to under the new
markets tax credit program, the corporation shall prioritize projects
demonstrating one or more of the following goals or benefits: (a)
creating or retaining jobs in low income communities; (b) increasing the
provision of goods and services for low income community residents which
would otherwise not be available at the same price or quality; (c)
supporting minority and women-owned or controlled businesses; (d)
expanding housing opportunities for low income community persons; (e)
supporting environmentally sustainable outcomes; and (f) supporting
efforts that otherwise benefit low income community residents by
leveraging further investment in their communities. Provided further,
such projects shall be limited to projects that would be authorized
under this act and shall be subject to approval by the board of the
urban development corporation. The corporation shall publish information
regarding the process used to select projects to receive the new markets
tax credits and provide a copy to the temporary president of the senate,
the speaker of the assembly, the minority leader of the senate and the
minority leader of the assembly. The corporation shall strive for
regional diversity in the allocation of tax credits under the new
markets tax credit program. The corporation shall include in the
information required to be submitted annually in accordance with the
provisions of subdivision 1 of section 2800 of the public authorities
law information regarding assistance provided by it or its subsidiary
under the new markets tax credit program, and shall provide financial
information with respect to any subsidiary administering the program in
the corporation's financial reports, including its certified audited
financial statements.

* NB Repealed March 31, 2021

(2) The corporation may transfer to any subsidiary corporation any
moneys, real or personal or mixed property or any project in order to
carry out the purposes of this act. Each such subsidiary corporation
shall have all the privileges, immunities, tax exemptions and other
exemptions of the corporation to the extent the same are not
inconsistent with the statute or statutes pursuant to which such
subsidiary was incorporated.

(3) Notwithstanding any provision of this act to the contrary, the
superintendent of financial services and the chairman of the New York
state science and technology foundation shall not serve as a director,
trustee or member of any such subsidiary corporation.

(4) No officer or director of the corporation shall receive any
additional compensation, either direct or indirect, other than
reimbursement for actual and necessary expenses incurred in the
performance of his duties, by reason of his serving as a member,
director, or trustee of any subsidiary corporation.