What's happening
This bill amends the not-for-profit corporation law to allow land banks to lend money, make grants, and take property as loan security.
Why it matters
Expanding land bank authority to lend money and make grants. enables these entities to play a more active role in financing neighborhood revitalization, rather than just acquiring and disposing of property.
Allowing land banks to take and hold property as loan or grant security. gives them new tools to ensure repayment and compliance, potentially making their financial support more sustainable and less risky.
Empowering land banks in this way could attract new partnerships and funding sources. (e.g., banks, developers, community organizations), as these entities may be more willing to collaborate if land banks can provide loans, grants, and accept collateral.
This legislation may accelerate the redevelopment of blighted or underutilized properties. by enabling land banks to support property owners, developers, or nonprofits who lack access to traditional financing, thereby advancing the goals of neighborhood stabilization and economic development.
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Who cares
Headline styles
Let Land Banks Make Loans
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local governments
- Referred to local governments
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Expand Land Bank Powers
In Senate Committee · Corporations, Authorities And Commissions · Sponsor Neil D. Breslin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1896
2019-2020 Regular Sessions
IN ASSEMBLY
January 17, 2019
Introduced by M. of A. MAGNARELLI -- read once and referred to the Committee on Local Governments
AN ACT to amend the not-for-profit corporation law, in relation to land banks
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Clauses 21 and 22 of paragraph (a) of section 1607 of the not-for-profit corporation law, as amended by chapter 338 of the laws of 2016, are amended to read as follows:
(21) to organize a subsidiary for a project or projects which the land bank has the power to pursue under this article when the primary reason for which the subsidiary shall be organized shall be to limit the potential liability impact of the subsidiary's project or projects on the land bank or because state or federal law requires that the purpose of a subsidiary be undertaken through a specific corporate or business structure. All real property of a subsidiary organized under this article shall be maintained on the inventory lists required in this article of the land bank of which it is a subsidiary and the subsidiary shall make all reports and other disclosures as are required of land banks under this article and as local public authorities, unless the subsidiary's operations and finances are consolidated with those of the land bank of which it is a subsidiary. Subsidiaries organized under this article shall be established in the form of a New York charitable not-for-profit corporation or a New York single member limited liability company. Subsidiaries shall not have the authority to issue bonds, notes or other debts, provided, however, that such subsidiaries may issue notes or other debt to the land bank of which it is a subsidiary. The organizational documents filed to create a subsidiary under this article shall state that the land bank is organizing the subsidiary for the purposes set forth in this article and the name of the subsidiary shall be reasonably related to the name of the land bank of which it is a subsid-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00128-01-9
A. 1896 2
iary. The real property of a subsidiary organized under this article and its income and operations are exempt from all taxation by the state of New York and by any of its political subdivisions; [and]
(22) to lend money, to make grants and take and hold real and personal property as security for the payment of funds so loaned or for the performance and enforcement of grant agreements; and
(23) to do all other things necessary to achieve the objectives and purposes of the land bank or other laws that relate to the purposes and responsibility of the land bank.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.