2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 4 - Dormitory Authority › 1678 - Powers of the Authority.

§ 1678. Powers of the authority. The authority shall have power
1. To sue and be sued;
2. To have a seal and alter the same at pleasure;
3.  To  acquire  in the name of the state by purchase or condemnation,
gift or devise real property or rights of easement on terms necessary or
convenient for its corporate purposes; to acquire, hold and  dispose  of
personal property for its corporate purposes;
4. To make by-laws for the management and regulation of its affairs;
5.   To   appoint   officers,  agents  and  employees  and  fix  their
compensation, provided, however, that the appointment of  the  executive
director  shall  be  subject to confirmation by the senate in accordance
with section twenty-eight hundred fifty-two of this chapter;
6. To make contracts and  to  execute  all  instruments  necessary  or
convenient;
7.  To  prepare or cause to be prepared plans, specifications, designs
and estimates of costs for the construction and equipment of dormitories
and appurtenant facilities for the  institutions  specified  in  section
sixteen hundred seventy-six, and from time to time to modify such plans,
specifications, designs or estimates;
8.  By  contract  or  contracts  or by its own employees to construct,
acquire, reconstruct, rehabilitate and improve, and furnish  and  equip,
dormitories   and   necessary   and   usual   attendant  facilities  for
state-operated institutions and statutory and  contract  colleges  under
the  jurisdiction  of  the  state  university  of  New  York pursuant to
agreement with the state university construction fund created by section
three hundred seventy-one of the education law;
9. To maintain, reconstruct and operate  such  dormitories  until  the
cost thereof and the outstanding bonds thereon have been liquidated;
10.  To  fix  and  collect  rentals  and  other charges for the use of
dormitories  and  judicial  facilities,  court  facilities  or  combined
occupancy   structures or any parts thereof; to contract with holders of
its bonds to fix such rentals and charges at rates at  least  sufficient
to  pay  for  all  costs  of  operation,  maintenance and repairs of the
dormitories  and  judicial  facilities,  court  facilities  or  combined
occupancy  structures,  and  the  interest  on  and  amortization of, or
payment of its bonds issued to finance dormitories, judicial facilities,
court  facilities  or  combined  occupancy  structures;  to  provide  by
contract  for  the  promulgation, by the appropriate officer or body, in
relation to any institution described  in  subdivision  two  of  section
sixteen hundred seventy-six of this title, of such reasonable and proper
rules  and  regulations as may be necessary to assure the maximum use of
the facilities of any dormitory at all times;
11. To borrow money and to issue negotiable  bonds  or  notes  and  to
provide for the rights of the holders thereof;
12. To do all things necessary or convenient to carry out the purposes
of this authority.
13.   In  connection  with  court  facilities  or  combined  occupancy
structures:
(a) To acquire by purchase, condemnation, gift, devise, lease or other
agreement such real property or an interest  therein as may be necessary
or  convenient  for  the  acquisition,   construction,   reconstruction,
rehabilitation, improvement or provision of court facilities or combined
occupancy structures;
(b)  To prepare or cause to be prepared plans, specifications, designs
and estimates of costs for  the  design,  construction,  reconstruction,
rehabilitation  or improvement of court facilities or combined occupancy
structures, and the equipping and furnishing thereof;
(c) To  prepare  or  cause  to  be  prepared  a  facility  design  and
performance  plan with each participating municipality relating to court
facilities and combined occupancy  structures  in  any  case  where  the
authority  and  the  participating  municipality  have  agreed  that the
authority  will  award  contracts for the design and construction of the
project. Such plan shall set forth the terms and  conditions  associated
with the construction management process, including, but not limited to,
provisions   relating  to  the  selection  of  architects,  construction
consultants,  construction  managers  and  contractors,   the   relative
responsibilities  of  the  authority  and the participating municipality
with respect to the initial project  budget  and  the  court  facilities
program,  the  preparation  of working drawings and budgets, the project
construction   process,   beneficial    occupancy    including    formal
notifications,  punch  lists and acceptance by all parties, notification
of construction completion, project close-out, and the  commencement  of
responsibility  for  maintenance  of  the facility. Such plan shall also
include provisions relating to the responsibility of  the  authority  to
require  appropriate  performance and surety bonds, the diligent pursuit
by  the  authority  of  remedies  against  architects,  contractors  and
sureties   deemed   to  be  in  default  in  the  performance  of  their
obligations, and, generally, the management of the construction  process
in  a  professional  manner  in  accordance with prevailing construction
industry standards. The authority shall submit the facility  design  and
performance  plan to the chief administrator for submission to the court
facilities capital review  board  in  accordance  with  section  sixteen
hundred eighty-c of this chapter;
(d)  To  design, construct, reconstruct, rehabilitate or improve court
facilities or combined occupancy structures and to enter into  contracts
to  cause  court  facilities  or  combined  occupancy  structures  to be
designed, constructed, reconstructed, rehabilitated or improved;
(e)  To  enter  into  leases,  subleases  or  other  agreements   with
participating  municipalities  in  connection  with court facilities and
jointly with participating  municipalities  and  other  persons,  firms,
associations,  corporations  or  agencies,  including  public bodies, in
accordance with section sixteen hundred eighty-b of this article;
(f) To sell, convey, lease, sublease or otherwise  transfer  any  real
property  or interest therein held by the authority to any person, firm,
association, corporation or agency, including a  public  body,  for  the
purpose  of  constructing  or  otherwise  providing  thereon  a combined
occupancy  structure,  provided  that,  simultaneously  therewith,   the
authority  enters  into  an  agreement  for  the reconveyance, purchase,
lease, sublease or other acquisition  of  the  court  facilities  to  be
contained in such combined occupancy structures.
Any contract undertaken or financed by the dormitory authority for any
construction, reconstruction, rehabilitation or improvement of any court
facilities  or  combined  occupancy  structures  shall  comply  with the
provisions of sections one hundred one and  one  hundred  three  of  the
general municipal law.
14.  To adopt resolutions providing for a program of self-insurance to
pay for uninsured losses incurred by the dormitory authority  by  reason
of  a  deductible  feature  in  a  policy or policies of insurance or to
prevent a default in the compliance with any provision of any agreement,
lease or resolution of the authority  relating  to  or  authorizing  the
issuance  of obligations of the authority. When such program is approved
by the superintendent of financial services of the state  of  New  York,
such  program  shall  for  all  purposes  of compliance by the dormitory
authority with any provision of an agreement, lease or resolution of the
authority relating to or authorizing the issuance of obligations of  the

authority  be  deemed  to  be an insurance policy issued by an insurance
company authorized to do business in the state of New York. The approval
of the superintendent shall be based upon such  standards  as  he  shall
from  time  to  time  determine  to  be appropriate in light of the said
program, including but not limited to reasonable requirements  regarding
the  amounts  and  kinds  of coverage provided and the minimum financing
maintained, and provided that the superintendent  shall  determine  that
such program will not be prejudicial to the best interests of the people
of this state.
15. The authority shall, notwithstanding any other law, have the power
to  mortgage,  pledge  or  assign  any  real or personal property of any
dormitory or board of cooperative educational services  school  facility
as  and  to  the extent authorized by any agreement or lease between the
authority and any educational institution as defined in section  sixteen
hundred  eighty  of  this  title or any board of cooperative educational
services  to  secure  any  and  all  liabilities  of  such   educational
institution  or  board  of  cooperative  educational services under such
agreement or lease in respect of such dormitory or board of  cooperative
educational  services  facility  not  theretofore paid or discharged, or
other real or personal property of the  authority.  Any  such  mortgage,
pledge  or  assignment  by  the  authority,  unless  otherwise  provided
therein, shall be superior to any right an educational institution or  a
board  of  cooperative educational services may have with respect to the
property subject to  such  mortgage,  pledge  or  assignment,  and  upon
foreclosure  of  any  such mortgage or enforcement of any such pledge or
assignment any such right shall be extinguished.
16. To acquire and to enter into commitments to acquire any  federally
guaranteed  security  and  to pledge or otherwise use any such federally
guaranteed security in such manner as the authority deems  in  its  best
interest  to secure or otherwise provide a source of repayment on any of
its bonds issued on behalf of any hospital designated as an  educational
institution  in section sixteen hundred eighty of this title or to enter
into any appropriate  agreement  with  any  hospital  designated  as  an
educational  institution in section sixteen hundred eighty of this title
whereby the authority may make a loan  to  any  such  hospital  for  the
purpose  of  acquiring  and  entering  into  commitments  to acquire any
federally guaranteed security. Any agreement entered  into  pursuant  to
this  subdivision may contain such provisions which are deemed necessary
or desirable by the authority for the  security  or  protection  of  the
authority  or  the  holders  of  such bonds; provided, however, that the
authority, prior to making any such  acquisition,  commitment  or  loan,
shall  first determine, and shall first enter into an agreement with any
such hospital or any other appropriate  institution  or  corporation  to
require,  that  the  proceeds  derived  from the acquisition of any such
federally guaranteed security will be used for the purpose of  providing
or   refinancing  any  dormitory  for  any  hospital  designated  as  an
educational institution in section sixteen hundred eighty of this title,
including any facility, real property,  equipment  and  appurtenant  and
related facilities.
17.  To  make and undertake commitments to make education loans to any
independent institution for higher  education  located  in  this  state,
recognized and approved by the regents of the university of the state of
New  York, which provides a course of study leading to the granting of a
post-secondary degree, for the purpose of enabling any such  institution
for higher education to make student loans to any student attending such
independent  institution  for  higher education, the parents of any such
student or both for the purpose of financing the cost of  attendance  by
such  student  at  such independent institution for higher education, to

make and to commit to make direct loans to a student or the parents of a
student or both for the purpose of financing the cost of  attendance  by
such  student  at  a  public  institution  for  higher education, and to
purchase,  acquire or take by assignment or otherwise student loans from
such an independent institution for  higher  education.  Each  loan  and
purchase  of  a  student  loan  by  the  authority  authorized  by  this
subdivision  shall  be  premised  upon  an  agreement,  agreements,   or
supplements  thereto,  between  the  authority  and such institution for
higher education, such student or the parents of the  student  or  both,
which agreement, agreements, or supplements thereto, may make provisions
as  to  payment,  security,  payment  of  any  expenses  or costs of the
authority and any other matters deemed appropriate by the authority.
All provisions of this title not inconsistent with the  provisions  of
this  subdivision  shall  be applicable with respect to any bonds of the
authority issued to obtain funds for any purpose authorized  under  this
subdivision,  and  with  respect  to the powers of the authority and any
such institution for higher education provided, however, that the use of
any such powers in order to effectuate the purpose  of  section  sixteen
hundred  seventy-nine of this chapter be expressed by guidelines subject
to the review of the advisory committee pursuant  to  paragraph  ten  of
section  sixteen  hundred  seventy-nine  of  this  chapter. Bonds of the
authority issued for the purposes of this subdivision shall be deemed to
be issued for the financing and construction of  a  project  within  the
meaning of section fifty-one of this chapter.
18.  To make and undertake commitments to make HEAL education loans to
any independent institution for higher education located in this  state,
which  is  an  eligible institution pursuant to title IV, part C, of the
"Health Professions Educational Assistance  Act  of  1976",  as  now  or
hereafter  amended,  for the purpose of enabling any such institution to
make HEAL student loans, to make and to commit to make HEAL direct loans
to an eligible student attending a public or independent institution for
higher education, and to purchase, acquire  or  take  by  assignment  or
otherwise HEAL student loans, and to sell and commit to sell HEAL direct
loans,  HEAL  education loans and HEAL student loans purchased, acquired
or taken by assignment or otherwise  by  the  authority  to  the  extent
necessary  to  assure  the  marketability  of  and  the  adequacy of the
security for the bonds of the authority. Each loan  and  purchase  of  a
HEAL  student loan by the authority authorized by this subdivision shall
be premised upon  an  agreement,  agreements,  or  supplements  thereto,
between  the authority and such institution for higher education or such
student, which agreement, agreements, or supplements  thereto,  may,  to
the  extent permitted by federal law and regulations, make provisions as
to payment, security, payment of any expenses or costs of the  authority
and any other matters deemed appropriate by the authority. The authority
shall  be deemed to be and is authorized to act as an eligible lender as
defined in title IV, part C,  of  the  "Health  Professions  Educational
Assistance  Act  of  1976", as now or hereafter amended, for purposes of
the health education assistance loan program authorized thereunder.
All provisions of this title not inconsistent with the  provisions  of
this  subdivision  shall  be applicable with respect to any bonds of the
authority issued to obtain funds for any purpose authorized  under  this
subdivision,  and  with  respect  to the powers of the authority and any
such institution for higher education, provided, however, that  the  use
of  any  such  powers  in  order  to  effectuate the purpose of sections
sixteen hundred seventy-nine and sixteen hundred seventy-nine-a of  this
chapter be expressed by guidelines subject to the review of the advisory
committee  pursuant  to  subdivision  ten  of  section  sixteen  hundred
seventy-nine of this chapter. Bonds of  the  authority  issued  for  the

purposes  of  this  subdivision  shall  be  deemed  to be issued for the
financing and construction of a project within the  meaning  of  section
fifty-one of this chapter.
19.  By  contract  or  contracts  or  by  its own employees to design,
contruct, acquire, reconstruct, rehabilitate and  improve,  and  furnish
and equip, or otherwise provide judicial facilities.
All  provisions  of this title not inconsistent with the provisions of
this subdivision shall be applicable with respect to any  bonds  of  the
authority  issued  to obtain funds for any purpose authorized under this
subdivision, and with respect to the powers of the authority;  provided,
however,  that  the  authority  shall  not  undertake  the  provision of
judicial facilities authorized by this subdivision unless the  governing
body  of  any  county, within the tenth judicial district, that does not
contain a city for whose use judicial  facilities  are  to  be  provided
consents thereto.
20.  To  enter  into  a contract or contracts with the commissioner of
health for the purpose of implementing the health facility restructuring
pool pursuant to section twenty-eight  hundred  fifteen  of  the  public
health law, and to receive, hold, invest and pay out moneys deposited in
the  restructuring  pool.  In  connection therewith, the authority shall
exercise all of its powers under article eight of this chapter.
21. (a) To enter into one or more agreements with the state university
of New York to provide financial assistance on behalf of the  state,  as
provided in subdivision eight of section six thousand three hundred four
of  the  education  law, to the local sponsors of community colleges for
the design, acquisition, construction, reconstruction, rehabilitation or
improvement of one or more facilities for  locally  sponsored  community
colleges  and  the furnishing or equipping of such facilities. Each such
agreement shall provide for annual payments to the  dormitory  authority
from  the  state aid or other financial assistance provided to the local
sponsor of such community college and paid into  the  community  college
tuition   and   instructional   fund  pursuant  to  paragraph  (iii)  of
subdivision two of section ninety-seven-p of the state finance law,  and
contain  such  other  terms  and conditions as may be agreed upon by the
parties thereto, including, but not limited to, provisions  relating  to
the  establishment of reserve funds and indemnities. Each such agreement
shall be subject to the approval of the director of the budget.
(b) Any such agreement entered into pursuant to this  subdivision  may
provide  that  the  provisions  thereof shall remain in force and effect
until the issue of bonds of the dormitory authority to which it relates,
together with interest thereon, interest on any unpaid  installments  of
interest and the fees and expenses of the dormitory authority, are fully
met  and  discharged,  and  any  payments to be made by the state may be
pledged by the dormitory authority to secure such bonds.
(c) No agreement entered  into  pursuant  to  this  section  shall  be
construed to limit or diminish the power of the dormitory authority with
respect  to  a  locally  sponsored  community  college  with  respect to
providing  construction  related  services  in   connection   with   the
construction,  reconstruction,  improvement,  renovation, development or
expansion of locally sponsored community college facilities.
23. To make  equipment  loans  pursuant  to  section  sixteen  hundred
seventy-nine-b  of  this  article and, in connection with such equipment
loans, to enter into all necessary or useful agreements with respect  to
such loans.
24.  To  acquire  bonds,  notes  or  other  obligations  of any school
district or city of the state issued  to  finance  or  refinance  school
district capital facilities and school district capital equipment and to
make  loan  commitments  and loans to school districts and to cities for

such purposes, and to enter into arrangements with school districts  and
cities for the purchase of such bonds, notes or other obligations.
* 25.
(a)  To  form  one  or  more  subsidiaries for the purpose of
limiting the potential liability of the authority  when  exercising  the
powers  and  duties  conferred  upon  the  authority  by this article in
connection with the exercise of remedies by the  authority  against  any
borrower  regulated  under article twenty-eight of the public health law
that has defaulted in  its  obligations  under  its  loan  agreement  or
mortgage  with  the authority and for which an event of default has been
declared by the authority. Each such subsidiary created pursuant to this
subdivision may exercise and  perform  one  or  more  of  the  purposes,
powers,  duties, functions, rights and responsibilities of the authority
(other than the issuance of indebtedness) in connection  with  real  and
personal  property  with  respect to which the authority holds or held a
mortgage, security interest or other collateral interest including:  (i)
bidding   for,   taking,   holding,  selling,  conveying,  assigning  or
transferring  title  to  such  property;  (ii)  entering  into   leases,
subleases, operating agreements, security agreements, loan agreements or
other  encumbrances  or  arrangements  with  regard to such property and
acting  in  a  manner  consistent  with  the  rights,   obligations   or
responsibilities  of  the  owner  of  such  property  pursuant  to  such
agreements or encumbrances; (iii) assuming  any  indebtedness  or  other
liabilities  secured  by  such  property.    Notwithstanding  any  other
provision of law to the contrary, but in all instances  subject  to  the
provisions  of  any  contract with bondholders, the transfer of title to
any such subsidiary or any other actions taken by the authority or  such
subsidiary  to  enforce  the  authority's  rights  under  the  mortgage,
security interest or other collateral interest or to  protect,  acquire,
manage  or  dispose  of  the  property shall be deemed to be a corporate
purpose of the authority and shall not impair the validity of any bonds,
notes or other obligations of  the  authority  to  which  the  mortgage,
security interest or other collateral interest relates.
(b)   Each  such  subsidiary  authorized  by  paragraph  (a)  of  this
subdivision shall be  established  in  the  form  of  a  public  benefit
corporation  by  executing  and  filing  with  the  secretary of state a
certificate of incorporation which shall identify the authority  as  the
entity  organizing  such  subsidiary  and  set  forth  the  name of such
subsidiary public benefit corporation, its duration, the location of its
principal  office  and  its  corporate  purposes  as  provided  in  this
subdivision  and  which  certificate may be amended from time to time by
the filing of amendments thereto with the secretary of state. Each  such
subsidiary  shall be organized as a public benefit corporation, shall be
a body politic  and  corporate,  and  shall  have  all  the  privileges,
immunities,  tax  exemptions  and other exemptions of the authority. The
members of each such subsidiary shall be the same as the members of  the
authority  and  the  provisions  of  subdivision  two of section sixteen
hundred ninety-one of this title shall in all  respects  apply  to  such
members when acting in such capacity.
(c)  Nothing  in  this  subdivision  shall  be construed to impose any
liabilities, obligations or responsibilities of any such subsidiary upon
the  authority  and  the  authority   shall   have   no   liability   or
responsibility  therefor unless the authority expressly agrees to assume
the same.
(d) Each such subsidiary created pursuant to this subdivision shall be
subject  to  any  other  provision  of  this   chapter   pertaining   to
subsidiaries of public authorities.
(e)  Notwithstanding  any  other  provision  of  law  to the contrary,
including but not limited to  title  five-A  of  article  nine  of  this

chapter,  the Atlantic Avenue Healthcare Property Holding Corporation is
hereby authorized and empowered to sell, exchange, lease,  transfer  and
convey  certain  real  property  located  at  483-503  Herkimer  Street,
1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,
all  in  Brooklyn,  New York as directed by the commissioner of New York
state division of homes and  community  renewal,  upon  such  terms  and
conditions as such commissioner may fix and determine.
Such   sale,   exchange,  lease,  transfer  and  conveyance  shall  be
consistent with and made pursuant to  a  plan  to  increase  access  and
quality  of  health  care  services  and  preventative  care  and create
affordable housing approved  by  the  commissioner  of  New  York  state
division  of homes and community renewal, the commissioner of health and
the director of the division of the  budget  to  transform  the  Central
Brooklyn  region. Such plan shall include any combination of initiatives
intended to: increase access to open spaces, transform  health  care  by
increasing  access  and quality of health care services and preventative
care, create affordable  housing,  improve  youth  development,  prevent
community  violence,  address social determinants of health, and provide
any ancillary services thereto.
Notwithstanding the foregoing, no such sale, exchange, transfer, lease
or conveyance shall be permitted pursuant to this section, unless in the
opinion of bond counsel to the authority, such sale, exchange, transfer,
lease or conveyance  does  not  impair  the  tax-exempt  status  of  any
outstanding  bonds or other obligations, if any, issued by the authority
to finance or refinance the subject property. For the purposes  of  such
opinion,   the   valuation  of  such  property  being  sold,  exchanged,
transferred, leased or conveyed may reflect the terms and conditions set
forth in the plan.
(f) The description in paragraph (e) of this subdivision of the  lands
to   be  transferred  and  conveyed  is  not  intended  to  be  a  legal
description, but is  intended  only  to  identify  the  premises  to  be
conveyed. As a condition of transfer and conveyance, the Atlantic Avenue
Healthcare Property Holding Corporation shall receive an accurate survey
and  description  of  the  lands generally described in paragraph (e) of
this subdivision, which may be used in the conveyance thereof.
* NB Effective until July 1, 2026
* 25. (a) To form  a  subsidiary  for  the  purpose  of  limiting  the
potential  liability  of  the  authority  when exercising the powers and
duties conferred upon the authority by article eight of this chapter  in
connection  with the exercise of remedies by the authority against North
General Hospital, an eligible secured borrower (as  defined  in  chapter
five  hundred  ninety  of  the  laws of two thousand two) located in the
borough of Manhattan, New York that has  defaulted  in  its  obligations
under its loan agreement or mortgage with the authority and for which an
event  of  default  has  been declared by the authority. Such subsidiary
created pursuant to this subdivision may exercise  and  perform  one  or
more   of   the   purposes,   powers,   duties,  functions,  rights  and
responsibilities  of  the  authority  other   than   the   issuance   of
indebtedness, in connection with real and personal property with respect
to  which  the  authority holds or held a mortgage, security interest or
other collateral interest including: (i) bidding for,  taking,  holding,
selling,  conveying,  assigning  or transferring title to such property;
(ii) entering into leases,  subleases,  operating  agreements,  security
agreements,  loan  agreements or other encumbrances or arrangements with
regard to such property and acting  in  a  manner  consistent  with  the
rights,  obligations  or  responsibilities of the owner of such property
pursuant  to  such  agreements  or  encumbrances;  (iii)  assuming   any
indebtedness   or   other   liabilities   secured   by   such  property.

Notwithstanding any other provision of law to the contrary, but  in  all
instances  subject  to  the provisions of any contract with bondholders,
the transfer of title to such subsidiary or any other actions  taken  by
the  authority or the subsidiary to enforce the authority's rights under
the mortgage, security interest  or  other  collateral  interest  or  to
protect,  acquire,  manage or dispose of the property shall be deemed to
be a corporate purpose  of  the  authority  and  shall  not  impair  the
validity  of  any  bonds, notes or other obligations of the authority to
which the mortgage,  security  interest  or  other  collateral  interest
relates.
(b)  Such  subsidiary  authorized by paragraph (a) of this subdivision
shall be established in the form of  a  public  benefit  corporation  by
executing  and  filing  with  the  secretary  of  state a certificate of
incorporation  which  shall  identify  the  authority  as   the   entity
organizing  such  subsidiary  and  set forth the name of such subsidiary
public benefit corporation, its duration, the location of its  principal
office  and  its  corporate purposes as provided in this subdivision and
which certificate may be amended from time to  time  by  the  filing  of
amendments thereto with the secretary of state. Such subsidiary shall be
organized  as  a public benefit corporation, shall be a body politic and
corporate, and shall have all the privileges, immunities, tax exemptions
and other exemptions of the authority. The members  of  such  subsidiary
shall  be the same as the members of the authority and the provisions of
subdivision two of section sixteen  hundred  ninety-one  of  this  title
shall  in  all  respects  apply  to  such  members  when  acting in such
capacity.
(c) Nothing in this subdivision  shall  be  construed  to  impose  any
liabilities, obligations or responsibilities of such subsidiary upon the
authority  and  the  authority shall have no liability or responsibility
therefor unless the authority expressly agrees to assume the same.
(d) Such subsidiary created pursuant  to  this  subdivision  shall  be
subject   to   any   other  provision  of  this  chapter  pertaining  to
subsidiaries of public authorities.
(e) Notwithstanding any  other  provision  of  law  to  the  contrary,
including  but  not  limited  to  title  five-A  of article nine of this
chapter, the Atlantic Avenue Healthcare Property Holding Corporation  is
hereby  authorized  and empowered to sell, exchange, lease, transfer and
convey  certain  real  property  located  at  483-503  Herkimer  Street,
1028-1038 Broadway, 528 Prospect Place and/or 1366 East New York Avenue,
all  in  Brooklyn,  New York as directed by the commissioner of New York
state division of homes and  community  renewal,  upon  such  terms  and
conditions as such commissioner may fix and determine.
Such   sale,   exchange,  lease,  transfer  and  conveyance  shall  be
consistent with and made pursuant to  a  plan  to  increase  access  and
quality  of  health  care  services  and  preventative  care  and create
affordable housing approved  by  the  commissioner  of  New  York  state
division  of homes and community renewal, the commissioner of health and
the director of the division of the  budget  to  transform  the  Central
Brooklyn  region. Such plan shall include any combination of initiatives
intended to: increase access to open spaces, transform  health  care  by
increasing  access  and quality of health care services and preventative
care, create affordable  housing,  improve  youth  development,  prevent
community  violence,  address social determinants of health, and provide
any ancillary services thereto.
Notwithstanding the foregoing, no such sale, exchange, transfer, lease
or conveyance shall be permitted pursuant to this section, unless in the
opinion of bond counsel to the authority, such sale, exchange, transfer,
lease or conveyance  does  not  impair  the  tax-exempt  status  of  any

outstanding  bonds or other obligations, if any, issued by the authority
to finance or refinance the subject property. For the purposes  of  such
opinion,   the   valuation  of  such  property  being  sold,  exchanged,
transferred, leased or conveyed may reflect the terms and conditions set
forth in the plan.
(f)  The description in paragraph (e) of this subdivision of the lands
to  be  transferred  and  conveyed  is  not  intended  to  be  a   legal
description,  but  is  intended  only  to  identify  the  premises to be
conveyed. As a condition of transfer and conveyance, the Atlantic Avenue
Healthcare Property Holding Corporation shall receive an accurate survey
and description of the lands generally described  in  paragraph  (e)  of
this subdivision, which may be used in the conveyance thereof.
* NB Effective July 1, 2026
* 26.  To  enter  into  a design and construction management agreement
with the department of environmental conservation, pursuant to which one
or more facilities  are  to  be  designed,  constructed,  reconstructed,
rehabilitated,  improved, furnished or equipped for such department. Any
such design and construction management agreement entered into  pursuant
to this subdivision shall provide for the following: the scope of design
and  construction  management  services to be provided by the authority,
the manner in which those services will be  provided,  the  fees  to  be
charged  by  the authority and the sources of funds for the projects. No
design-build contract as defined in chapter fifty-six of the laws of two
thousand eleven shall be awarded pursuant to this subdivision.
* NB Repealed April 1, 2025
* 27. To enter into a design  and  construction  management  agreement
with the office of parks, recreation and historic preservation, pursuant
to  which  one  or  more  facilities  are  to  be designed, constructed,
reconstructed, rehabilitated, improved, furnished or equipped  for  such
office.  Any  such  design and construction management agreement entered
into pursuant to this subdivision shall provide for the  following:  the
scope  of  design and construction management services to be provided by
the authority, the manner in which those services will be provided,  the
fees  to  be  charged  by the authority and the sources of funds for the
projects. No design-build contract as defined in  chapter  fifty-six  of
the  laws  of  two  thousand  eleven  shall  be awarded pursuant to this
subdivision.
* NB Repealed April 1, 2025
28. To enter into a construction management  agreement  with  the  New
York  city  housing  authority, pursuant to which one or more facilities
owned or operated by the New York city housing authority located in  the
city  of  New  York  are  to  be constructed, reconstructed, demolished,
improved, modernized, renovated or expanded for such authority.
* 29. Notwithstanding any law to the contrary, to  establish  a  pilot
program  for  the  award  of  contracts  up  the  maximum  dollar amount
specified in paragraph (e) of this subdivision, for the  procurement  of
goods  or  services  from,  or  for  the  construction,  reconstruction,
rehabilitation or improvement of  facilities  by,  small  businesses  as
defined  in  section  one hundred thirty-one of the economic development
law and minority-owned and women-owned business enterprises  as  defined
in  section  three hundred ten of the executive law, notwithstanding the
expiration of such section pursuant to subdivision (h)  of  section  one
hundred  twenty-one  of  chapter  two  hundred  sixty-one of the laws of
nineteen  hundred  eight-eight,  as  amended,  in  accordance  with  the
following provisions:
(a)  Procurements  made pursuant to this subdivision shall be governed
by the authority's procurement policy and guidelines adopted pursuant to
section  twenty-eight  hundred  seventy-nine  of  this   chapter,   with

participation  in  the  pilot  program  confined to small businesses, as
defined in section one hundred thirty-one of  the  economic  development
law, and minority-owned and women-owned business enterprises, as defined
in section three hundred ten of the executive law.
(b) Procurements made pursuant to this subdivision shall be designated
as   such  by  the  authority,  in  its  sole  discretion,  pursuant  to
pre-established criteria contained in the  authority's  procurement  and
policy  guidelines  described in paragraph (a) of this subdivision. Such
designation shall be made prior to the  advertisement  and  request  for
bids  or proposals, and any such advertisement or request shall indicate
this designation clearly.
(c) If the total number of parties responding and  considered  capable
of meeting the specifications and terms of the advertisement and request
for bids or proposals is less than three, or if the authority determines
that  acceptance of any bid or proposal will result in the payment of an
unreasonable  price,  the  authority  shall  reject  all  responses  and
withdraw  the  designation  made  pursuant  to  paragraph  (b)  of  this
subdivision.
(d) Procurements made pursuant to this subdivision may  be  undertaken
in conjunction with section one hundred forty-seven of the state finance
law   authorizing   a   mentor-protege   program   to  foster  long-term
relationships between approved mentor firms and small business  concerns
and  minority  and  women-owned businesses certified pursuant to article
fifteen-A of the executive law.
(e) The total value of contracts awarded pursuant to this  subdivision
shall  not  exceed the greater of twenty million dollars or five percent
of the value of all contracts awarded by the authority in a given fiscal
year.
The  authority  shall  submit  a  report,  no  later  than   September
thirtieth,  two  thousand  twenty-four,  and annually thereafter, to the
governor, the temporary president of the senate and the speaker  of  the
assembly  regarding procurements made pursuant to this subdivision. Such
report shall include a description of each procurement made pursuant  to
this subdivision, information regarding the procurement process for each
such  procurement  contract,  including  the list of responding entities
that demonstrated the capability to meet the specifications and terms of
the procurement made pursuant to this subdivision  if  such  procurement
did  not  use  lowest  responsible  bidding,  the project identification
number and a description for each such project, the completion  date  or
projected  completion  date  as  applicable  for  each such project, the
status of each such project, the total cost or projected cost  and  cost
modifications   of   each   such   project  procured  pursuant  to  this
subdivision, indication of whether the party awarded a contract pursuant
to this subdivision served as a general contractor or  subcontractor  in
fulfilling  the  contract,  and the total dollar value of monies paid to
minority-owned and women-owned business  enterprises  pursuant  to  this
subdivision  itemized  by year and including the total dollar values for
the five years preceding the respective annual  report's  release  date.
For  annual  reports  any new procurements and changes during the period
covered by the report shall be identified separately.
* NB Repealed July 1, 2027
30. To enter into one or more agreements with the office  of  cannabis
management,  the  cannabis  control board, or the private debt or equity
fund, selected pursuant to subdivision thirty-two of  this  section,  in
which  the  state  or any state agency, public authority, public benefit
corporation, or division thereof has invested  and  is  formed  for  the
limited   purpose   of   funding   the  capital  costs  associated  with
establishing conditional  adult-use  cannabis  retail  dispensaries  for

operation  by  social equity licensees duly licensed pursuant to article
two of the cannabis law, for the following purposes:
(a)  (i)  To  acquire  by  lease or sublease such real property or any
interest therein as may be necessary or convenient for the construction,
reconstruction, rehabilitation, improvement, or provision of conditional
adult-use cannabis retail dispensaries for operation  by  social  equity
licensees, as agent, and (ii) to acquire by purchase or other agreement,
personal  property  or  interest  therein  as  may  be necessary for the
acquisition, construction, reconstruction,  rehabilitation,  improvement
or provision of such dispensaries, whether as principal or agent;
(b) To prepare or cause to be prepared, whether as principal or agent,
plans,  specifications,  designs, and estimates of costs for the design,
construction, reconstruction, rehabilitation, improvement, furnishing or
equipping of conditional  adult-use  cannabis  retail  dispensaries  for
operation by social equity licensees;
(c)  To  design, construct, reconstruct, rehabilitate, or to cause the
design, construction,  rehabilitation  or  improvement  of,  whether  as
principal  or  agent, conditional adult-use cannabis retail dispensaries
for operation by social equity licensees and to enter into contracts  to
cause  such  facilities  to  be  designed,  constructed,  reconstructed,
rehabilitated, improved, furnished, or equipped;
(d) To enter, as lessor or as  agent  for  the  lessor,  into  leases,
subleases,   or  other  agreements  with  the  social  equity  licensees
operating for the conditional adult-use  cannabis  retail  dispensaries;
provided  that (i) the authority shall only enter in lease agreements as
agent  of  the  private  debt  or  equity  fund  selected  pursuant   to
subdivision  thirty-two  of this section, (ii) any general terms of such
lease agreement, and any material deviations or changes  therefrom,  are
approved by the office of cannabis management; and
(e) To enter, as lender or as agent to the lender, into a non-recourse
loan  or other agreements with the social equity licensees operating the
conditional adult-use cannabis retail dispensaries,  provided  that  any
general  terms  of  such  non-recourse loan agreements, and any material
deviations or changes therefrom, are approved by the office of  cannabis
management  and that the terms of the non-recourse loan agreement do not
include a penalty for early termination but will allow for the inclusion
of a make-whole provision and  shall  not,  at  the  time  the  loan  is
established,  exceed  the  prime lending rate plus one-half the interest
rate specified under  subdivision  one  of  section  fourteen-a  of  the
banking  law,  nor  include  terms or conditions that would allow for an
equity position in the social equity  licensee's  conditional  adult-use
cannabis retail dispensary business or that would entitle a share in, or
claim to, any revenue or profit generated by such business.
31.  (a)  To form one or more subsidiaries for the purpose of limiting
the potential liability of the authority when exercising the powers  and
duties  conferred  upon  the  authority  by  subdivision  thirty of this
section in connection with certain  work  performed  on  behalf  of  the
office  of  cannabis  management,  the  cannabis  control  board, or the
private debt or equity fund in which the  state  or  any  state  agency,
public  authority,  public  benefit corporation, or division thereof has
invested and has been selected pursuant  to  subdivision  thirty-two  of
this  section.  Such subsidiary created pursuant to this subdivision may
exercise and perform one  or  more  of  the  purposes,  powers,  duties,
functions,  rights  and responsibilities of the authority other than the
issuance of indebtedness, in connection with real and personal  property
with respect to which the authority holds title or a leasehold interest,
in  its  own  name  or  as  agent  for  the  titleholder  or leaseholder
including, but not limited to: (i) entering into leases,  subleases,  or

other  arrangements  with regard to such property and acting in a manner
consistent with the  rights,  obligations  or  responsibilities  of  the
owner,  landlord  or  tenant  of such property pursuant to such lease or
sublease  agreements;  (ii)  servicing non-recourse loan payments; (iii)
furnishing property management  services;  and  (iv)  providing  general
operational and administrative support services.
(b)  Such  subsidiary  authorized by paragraph (a) of this subdivision
shall be established in the form of  a  public  benefit  corporation  by
executing  and  filing  with  the  secretary  of  state a certificate of
incorporation  which  shall  identify  the  authority  as   the   entity
organizing  such  subsidiary  and  set forth the name of such subsidiary
public benefit corporation, its duration, the location of its  principal
office  and  its  corporate purposes as provided in this subdivision and
which certificate may be amended from time to  time  by  the  filing  of
amendments thereto with the secretary of state. Such subsidiary shall be
organized  as  a public benefit corporation, shall be a body politic and
corporate, and shall have all the privileges, immunities, tax exemptions
and other exemptions of the authority. The members  of  such  subsidiary
shall  be the same as the members of the authority and the provisions of
subdivision two of section sixteen  hundred  ninety-one  of  this  title
shall  in  all  respects  apply  to  such  members  when  acting in such
capacity.
(c) Nothing in this subdivision  shall  be  construed  to  impose  any
liabilities,  obligations,  or  responsibilities of such subsidiary upon
the  authority  and  the  authority   shall   have   no   liability   or
responsibility  therefor unless the authority expressly agrees to assume
the same.
(d) Such subsidiary created pursuant  to  this  subdivision  shall  be
subject   to   any   other  provision  of  this  chapter  pertaining  to
subsidiaries of public authorities.
32. (a) (i) To select a private debt or equity  fund  formed  for  the
sole  purpose  of  funding  the capital costs, including closely related
ancillary  and  administrative  costs,  associated   with   establishing
conditional  adult-use  cannabis  retail  dispensaries  for operation by
social equity licensees deemed to be eligible by the office of  cannabis
management  for  financing  through such fund or related costs, provided
that any partnership agreement between the fund and the authority, shall
be subject to the written approval or resolution of the cannabis control
board, the board of the dormitory authority, and  the  director  of  the
division  of the budget, and the selection of such general partner shall
be made in consultation with the office of cannabis management.
(ii)  The  organizational  structure  and  investment  policy  of  the
selected  fund  and  the  provisions  of the partnership agreement shall
satisfy the following parameters and requirements:
(1) The fund shall have a public  policy  committee  composed  of  the
chair of the cannabis control board, executive director of the office of
cannabis  management,  and  the  president  of  the  authority, or their
representatives, who shall guide the decisions of the selected  fund  to
achieve  the  public policy goals of the state, which includes providing
advice and direction to the fund where matters implicate  public  policy
and  confirming  the  fund's  adherence  to  its  public  purpose, which
includes compliance with stated objectives or mission  of  the  cannabis
law  and  the  marihuana regulation and taxation act, generally and more
specifically, to provide social equity  conditional  adult-use  cannabis
retail   dispensary   licensees   with   the  opportunity  of  acquiring
commercially viable retail operations;
(2) Such committee shall:
(A) review and approve of the fund's investment policy  statement  and
any changes thereto;
(B)  review  and  approve  any  changes to the use and distribution of
investment funds;
(C) review and approve the fund's strategic plan,  particularly  those
pertaining  to  the  investor  class, the establishment, management, and
liquidation of investments by the fund;
(D)  monitor  the  fund's  risk  profile,  investment  activity,   and
performance;
(E)  approve  the  maximum  amount  of  promised return on investment,
management fees, and compensation of the general partner;
(F) review and  approve  any  changes  or  amendments  to  the  fund's
organizational  structure,  partnership agreements, and the fund manager
or servicer's agreement to ensure that  they  are  consistent  with  the
fund's public purpose;
(G)  take reasonable steps, at the direction of the office of cannabis
management,  to  provide  geographic  equity   and   representation   in
establishing such conditional adult-use cannabis retail dispensaries for
operation  by  social  equity  licensees,  to the extent practicable, in
support of the public purpose of the fund and further, at the  direction
of  the  office  of cannabis management that the site selection for such
dispensaries comports with the requirements of the cannabis law and  the
marihuana  regulation  and  taxation  act, and its rules and regulations
governing the location of conditional adult-use  cannabis  dispensaries;
and
(H)  confirm  that any real property leases and loan agreements issued
by or on  behalf  of  the  fund  shall  be  provided  to  social  equity
licensees, duly licensed pursuant to article two of the cannabis law;
(3)  The general partner and the fund shall to the extent allowable by
section one of article five of the  state  constitution,  authorize  the
comptroller  of  the  state,  or  the  comptroller's  legally authorized
representatives, to access, examine, or audit the accounts and books  of
the  fund including its receipts, disbursements, contracts, investments,
and any other items directly relating  to  its  financial  standing  and
cooperate  with  any such financial examination or financial audit on an
annual basis. The general partner shall agree to cause the key  officers
to  be  available  to  discuss  the  fund  and  the  partnership and its
activities at the time of the audit;
(4) The general partner shall agree to cause the key  officers  to  be
available  to discuss the fund and the partnership and its activities at
the request of the public policy committee;
(5) Any real property subleased out by the fund  to  a  social  equity
licensee  shall  be  at  the same rate on which the fund has leased such
property;
(6) The fund shall not be authorized to borrow any money or  to  incur
any  indebtedness,  including  guarantees,  except  when approved by the
public policy committee;
(7) The fund shall not be voluntarily  terminated  early  without  the
prior consent of the public policy committee;
(8)  The fund shall have a conflict-of-interest policy approved by the
public policy committee;
(9) Any loan  agreement  the  fund  enters  into  with  social  equity
licensees shall be a non-recourse loan and shall allow prepayment of the
debt  without  any  penalty  imposed  by the fund but will allow for the
inclusion of a make-whole provision and shall not, at the time that  the
non-recourse  loan  is  established,  exceed the prime lending rate plus
one-half the maximum interest rate specified under  subdivision  one  of
section fourteen-a of the banking law;
(10)  The  fund shall not accept more than two hundred million dollars
in total investment  over  the  course  of  its  life  and  the  state's
contribution to the fund shall not exceed fifty million dollars; and
(11)  The  fund  shall  not take any equity positions in, issue equity
loans to, or enter into revenue or profit sharing  agreements  with  any
social  equity  adult-use cannabis retail dispensary business or include
any terms and conditions in an agreement  with  such  business  to  that
effect;  the  fund shall also not include any excessive penalties within
the loan agreements; and
(12) Any  other  requirement  as  the  dormitory  authority  may  deem
appropriate,  in consultation with the office of cannabis management, or
the cannabis control board.
(b) (i) After the funding of  the  private  debt  or  equity  fund  as
provided  pursuant  to  this subdivision, the authority shall prepare an
annual report beginning on December thirtieth, two  thousand  twenty-two
and  annually thereafter, which report shall include, but not be limited
to:
(1) the number of conditional adult-use cannabis  retail  dispensaries
assisted by the authority pursuant to this subdivision;
(2)  the  geographic distribution of sites designated by the office of
cannabis management  and  prepared  by  the  authority  for  conditional
adult-use  cannabis retail dispensaries for operation by licensed social
equity businesses; and
(3) any other such data and information, including  information  about
subsidiary or subsidiaries created pursuant to subdivision thirty-one of
this section.
(4)  Additionally, for the first report, the authority shall report on
the procurement and selection of the general partner.
(ii) Such report shall be published on  the  authority's  website  and
presented to the governor, the temporary president of the senate and the
speaker  of the assembly, no later than December thirtieth, two thousand
twenty-two and annually thereafter; and
(iii) The authority shall further submit a  copy  of  the  partnership
agreement  between  the  fund  and  the  authority, to the governor, the
temporary president of the senate, and the speaker of  the  assembly  no
later than fifteen days after such agreement has been fully executed.