1. The Laws of New York
  2. Unconsolidated Laws
  3. Urban Development Corporation Act 174/68


Section 12 Subsidiaries: how created

Urban Development Corporation Act 174/68 (UDA)

(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 corporation.

  * 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.