NY Pub Auth L § 1823 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 8 - New York Job Development Authority Subtitle I General Provisions Sub Title 4 - Subtitle Iv Financial Assistance Generally 1823 - Further Restrictions on Loans and Loan Guarantees.

§ 1823. Further restrictions on loans and loan guarantees. In addition to other provisions of this title limiting the power of the authority to make  loans to local development corporations in respect of a particular project, and to guarantee  loans  made  by  banking  organizations,  the following restrictions shall also apply:   1.  No  funds of the authority shall be used in respect of any project if the completion thereof would result in the removal of  an  industrial or  manufacturing  plant  or  research and development facility or other eligible business facility of the project occupant from one area of  the state  to another area of the state or in the abandonment of one or more plants or facilities of the project occupant located within  the  state, provided, however, that neither restriction shall apply if the authority shall  determine  on  the  basis  of  the application before it that the project is reasonably necessary to discourage the project occupant  from removing such other plant or facility to a location outside the state or is  reasonably  necessary  to  preserve  the competitive position of the project occupant in its respective industry.   2. No funds of the authority shall be used in respect of  any  project if  the  authority would be required to operate, service or maintain the project pursuant to any lease or other agreement except upon foreclosure or except upon the occurrence of a default in the payment  or  terms  of any loan guaranteed by the authority, provided, however, notwithstanding any  other provision of this subtitle, the authority may take title to a project under a financing lease which does not require the authority  to operate,  service or maintain the project itself, and which provides for payments in lieu of property taxes  as  approved  by  the  local  taxing jurisdiction  which  are  equal to or less than any property taxes which would have been due had the authority not taken title to  the  property. Nothing  shall  prevent the authority from transferring such property to the project occupant or its designee at the end  of  the  term  of  such financing.   3.  No  funds  of the authority shall be used for a project unless the applicant shows to the satisfaction of the authority that funds equal to the amount of the proposed loan from the authority  are  not  reasonably available from other sources at a comparable cost of borrowing.   4. No funds of the authority shall be used in violation of any further restrictions  imposed  by general rule or regulation of the authority in relation to assisted projects and the authority is hereby authorized  to adopt  rules and regulations containing such restrictions as it may deem necessary or appropriate to effectuate its corporate purposes.   5. No provision of  this  title  shall  prevent  the  inclusion  in  a mortgage,  lease or other agreement relating to an assisted project of a provision granting the project  occupant  the  right  to  purchase  such project upon such terms and conditions as the authority may approve.   6.  No  funds of the authority shall be loaned or used for any project unless the applicant demonstrates to the authority that such project has a valid permit or permits for  the  following,  when  such  permits  are required  pursuant  to  applicable  federal,  state  or  local  law: the generation, treatment, storage and disposal  of  hazardous  wastes;  the discharge  of  pollutants  into  the  waters of the state, or, if such a plant or facility is in violation thereof, that the project contemplated includes the elimination of any such violation or violations.   7. Loans in economically distressed areas and to companies in need  of special  assistance.  (a)  Loans by the authority pursuant to paragraphs (a) and (b) of subdivision two of section eighteen hundred three of this chapter may exceed forty percent but shall not exceed sixty  percent  of the cost of the project for:  (i)  projects  which are or will be located in empire zones designated pursuant to article eighteen-b of the general municipal law or in  areas that meet, in accordance with the most recent census data available, the following criteria:  (A)  the  area must have a poverty rate of at least twenty percent for the year to which the data relate; and  (B) the area must have an unemployment rate of at  least  one  hundred twenty-five  percent  of the statewide unemployment rate for the year to which the data relate;  (ii) projects involving companies in need  of  special  assistance  as determined  by  the  findings  of the members of the authority that such companies are unable to obtain  a  sufficient  amount  of  financing  at prevailing  market  rates  of interest for businesses of similar size in the same industry in New York state.  (b) In determining eligibility for loans involving companies  in  need of  special assistance pursuant to subparagraph (ii) of paragraph (a) of this subdivision, the members of the authority shall consider:  (i) the applicant's potential for creating jobs in New York state;  (ii) the benefits derived from the project in the community  in  which the project is or will be located;  (iii)  the interaction of a project with economic development programs administered by the department of economic  development,  the  New  York state  urban  development corporation and the New York state science and technology foundation;  (iv) the meaningful participation of minority and women-owned business enterprises and minority group members and women in a project;  (v) the degree  to  which  the  project  will  support  apprenticeship training;  (vi)  compliance  with  the  provisions  of  section  eighteen hundred twenty-six of this chapter with regard to the project occupant; and  (vii) in consultation with the department of economic development, the eligibility  of  the  applicant  for  assistance  under  the  industrial effectiveness   program  pursuant  to  article  seven  of  the  economic development law.  (c) In addition to the rules and regulations promulgated  with  regard to loans made by the authority under other provisions of this title, the members  of  the  authority  shall also promulgate rules and regulations pertaining to the  loans  made  under  subparagraphs  (i)  and  (ii)  of paragraph  (a)  of  this subdivision by December first, nineteen hundred ninety-two.  (d) On an annual basis, the authority shall compile and publish:  (i) in consultation with the department  of  economic  development,  a listing  of economically distressed areas as defined in subparagraph (i) of paragraph (a) of this subdivision.  (ii) the criteria for determining the eligibility of a project that is in need of special assistance under subparagraph (ii) of  paragraph  (a) of this subdivision.  (e)  All  otherwise  applicable  requirements and restrictions of this title shall apply to projects that are described  in  paragraph  (a)  of this  subdivision, provided, however, that in the case of projects which involve the relocation of economic activity  from  another  municipality within  New  York  state, the authority shall also find that the project occupant has made reasonable efforts to carry out the project within the municipality  from  which  the  project  occupant  intends  to  move  an industrial,   or   manufacturing  plant,  or  research  and  development facility, or other eligible business facility.