S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10811

                          I N  A S S E M B L Y

                             April 21, 2010
                               ___________

Introduced by M. of A. PAULIN -- read once and referred to the Committee
  on Judiciary

AN  ACT to amend the eminent domain procedure law and the New York state
  urban development corporation act, in relation to defining blight; and
  to repeal certain provisions of the New York state  urban  development
  corporation act relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings and  intent.  The  legislature  hereby
finds  and  declares  that  eminent  domain, while a meaningful tool for
government to move forward on important projects, has come under a great
deal of criticism in recent years for  many  alleged  abuses  that  have
occurred  within  the  state  of  New  York. Traditionally, the right of
eminent domain, or the state's ability to seize private land was limited
for "public use". However, over the years, phrases such as "public  use"
and "blighted" have taken on more expansive meanings.
  Since  Kelo v. City of New London, the 2005 decision in which the U.S.
Supreme Court approved  the  forcible  transfer  of  property  from  one
private  owner  to another in the name of "economic development", forty-
three states have passed eminent domain reform legislation. New York has
thus far failed to take such action but continues  again  and  again  to
approve  eminent  domain  condemnation for projects that benefit private
entities at the public's expense. A 2009 report  by  the  Institute  for
Justice  entitled  "Building  Empires, Destroying Homes:  Eminent Domain
Abuse in New York" detailed widespread eminent domain  abuse  throughout
the state.
  Furthermore,  two  recent court decisions, Goldstein v. New York State
Urban Development Corporation and Kaur v. New York State Urban  Develop-
ment  Corporation demonstrate the need to balance the rights of property
owners without stifling positive economic development programs. Instead,
New Yorkers suffer under an inequitable system of  eminent  domain  laws
that  greatly  favors private developers partnered with public actors at
the expense of homeowners, businesses, and tenants.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15551-05-0
              

A. 10811                            2

  The use of "blight" as a basis for condemnation is vaguely defined and
in need of clarification. Under the  loose  standards  of  existing  law
practically  anything can qualify as blighted. Consequently it is imper-
ative that the legislature  enact  objective  criteria  to  ensure  that
blight  determinations are consistent, predictable, and based on factors
actually related to the public's health and safety. There also needs  to
be  better protections in place so that tenants and low income residents
are ensured that they are not excluded from the development process.
  As Judge Catterson notes for the majority in the Kaur decision, it has
been well documented that the urban renewal schemes  of  the  1950s  and
1960s  displaced  millions of people and destroyed hundreds of neighbor-
hoods. By and far, these programs disproportionately harmed  low  income
and  minority  families.  Legislative  reforms  are  needed to prevent a
repeat of these injustices. It is now time for  New  York  to  make  the
necessary  reforms  that  will  ensure  a  fair and equitable use of our
eminent domain laws.
  S 2. Section 103 of the eminent domain procedure  law  is  amended  by
adding  five  new  subdivisions  (H),  (I),  (J), (K) and (L) to read as
follows:
  (H) "BLIGHTED PROPERTY" AND "BLIGHTED  AREA"  MEAN  PROPERTY  THAT  IS
DECLARED BLIGHTED UNDER SECTION TWO HUNDRED FOUR-A OF THIS CHAPTER.
  (I)  "SLUM" MEANS PROPERTY THAT IS DECLARED BLIGHTED UNDER SECTION TWO
HUNDRED FOUR-A OF THIS CHAPTER.
  (J) "SUBSTANDARD AND  INSANITARY  PROPERTY"  MEANS  PROPERTY  THAT  IS
DECLARED BLIGHTED UNDER SECTION TWO HUNDRED FOUR-A OF THIS CHAPTER.
  (K)  "UNFIT  FOR HUMAN HABITATION" MEANS PREMISES WHICH HAVE IDENTIFI-
ABLE CONDITIONS THAT ENDANGER THE LIFE, HEALTH AND SAFETY OF THE OWNERS,
OCCUPANTS, OR THE PUBLIC. CONDITIONS RENDERING PROPERTY UNFIT FOR  HUMAN
HABITATION  INCLUDE,  BUT  ARE  NOT  LIMITED  TO, SUBSTANTIAL STRUCTURAL
DEFECTS OR DETERIORATION, VERMIN INFESTATION, LACK OF  NECESSARY  UTILI-
TIES, AND FIRE HAZARDS.
  (L) "ABANDONED PROPERTY" MEANS:
  (1) UNOCCUPIED PROPERTY WHICH HAS BEEN TAX DELINQUENT FOR AT LEAST TWO
YEARS; OR
  (2) A BUILDING:
  (A) THAT IS UNOCCUPIED BY OWNER OR TENANT;
  (B) THAT IS UNFIT FOR HABITATION;
  (C) THAT HAS DETERIORATED TO THE POINT WHERE:
  (I)  THE BUILDING IS STRUCTURALLY UNSOUND OR POSES AN IMMEDIATE THREAT
TO LIFE OR OTHER PROPERTY; OR
  (II) THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABI-
LITATION MARKET VALUE; AND
  (D) THE OWNER IS UNKNOWN OR THE OWNER  FAILS  TO  RESPOND  WITHIN  SIX
MONTHS TO A VIOLATION NOTICE FROM THE APPROPRIATE GOVERNING BODY REQUIR-
ING THE OWNER TO:
  (I)  REHABILITATE THE BUILDING TO CONFORM TO MINIMUM CODE HABITABILITY
REQUIREMENTS; OR
  (II) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS; OR
  (3) A VACANT LOT ON WHICH A BUILDING HAS BEEN DEMOLISHED AND FOR WHICH
A MUNICIPAL LIEN FOR DEMOLITION COSTS REMAINS UNPAID FOR SIX MONTHS.
  S 3. Paragraph 4 of subdivision (B) of  section  204  of  the  eminent
domain  procedure  law is amended and a new paragraph 5 is added to read
as follows:
  (4) such other factors as it considers relevant[.];
  (5) THE FINDINGS REQUIRED PURSUANT TO SUBDIVISION (D) OF  SECTION  TWO
HUNDRED FOUR-A OF THIS ARTICLE.

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  S  4.  The  eminent  domain  procedure  law is amended by adding a new
section 204-a to read as follows:
  S  204-A. BLIGHTED PROPERTIES AND AREAS. (A) SUBJECT TO THE EXCEPTIONS
LISTED IN PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION,  ANY  SINGLE
PROPERTY  MAY  BE  DECLARED  BLIGHTED  IF  IT MEETS ANY OF THE FOLLOWING
CONDITIONS:
  (1) ANY PREMISES, WHICH BECAUSE OF DILAPIDATION, DETERIORATION, STRUC-
TURAL DEFECTS, VERMIN INFESTATION, HEALTH HAZARDS, FIRE HAZARDS, LACK OF
UTILITIES, LACK OF FACILITIES OR EQUIPMENT REQUIRED BY STATUTE OR MUNIC-
IPAL CODE, NEGLECT, OR LACK OF MAINTENANCE:
  (A) IS UNFIT FOR HUMAN HABITATION;
  (B) HAS DETERIORATED TO THE POINT WHERE:
  (I) THE BUILDING IS STRUCTURALLY UNSOUND OR POSES AN IMMEDIATE  THREAT
TO LIFE OR OTHER PROPERTY; OR
  (II) THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABI-
LITATION MARKET VALUE; AND
  (C)  THE  OWNER  FAILS  TO REMEDY THE PROBLEM WITHIN A REASONABLE TIME
AFTER RECEIVING NOTICE OF VIOLATION BY THE  APPROPRIATE  GOVERNING  BODY
REQUIRING THE OWNER TO:
  (I)  REHABILITATE THE BUILDING TO CONFORM TO MINIMUM CODE HABITABILITY
REQUIREMENTS; OR
  (II) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS.
  (2) ANY ABANDONED PROPERTY AS DEFINED IN SUBDIVISION  (L)  OF  SECTION
ONE HUNDRED THREE OF THIS CHAPTER.
  (3)  PROPERTY  THAT  IS ENVIRONMENTALLY CONTAMINATED AND THAT REQUIRES
REMEDIATION FOR CURRENT OR FUTURE USE UNDER STATE OR FEDERAL LAW, IF THE
OWNER FAILS TO REMEDY THE PROBLEM WITHIN SIX MONTHS OF RECEIVING  NOTICE
OF VIOLATION FROM THE APPROPRIATE GOVERNING BODY.
  (4)  A  PREMISES  WHICH,  BECAUSE  OF  PHYSICAL  CONDITION  OR USE, IS
REGARDED AS A PUBLIC NUISANCE AT COMMON  LAW  OR  HAS  BEEN  DECLARED  A
PUBLIC NUISANCE UNDER A STATUTE OR AN APPLICABLE MUNICIPAL CODE, AND THE
OWNER  FAILS TO ABATE THE NUISANCE WITHIN SIX MONTHS OF RECEIVING NOTICE
OF VIOLATION FROM THE APPROPRIATE GOVERNING BODY.
  (5) ANY WELL, SHAFT, BASEMENT, EXCAVATION, OR UNSAFE FENCE  OR  STRUC-
TURE THAT, BECAUSE OF PHYSICAL CONDITION, USE OR OCCUPANCY, IS DEEMED AN
ATTRACTIVE  NUISANCE  TO  CHILDREN,  AND  THE  OWNER  FAILS TO ABATE THE
NUISANCE WITHIN SIX MONTHS AFTER RECEIVING NOTICE OF VIOLATION FROM  THE
APPROPRIATE GOVERNING BODY.
  (6)  VACANT  PROPERTY THAT HAS BECOME OVERGROWN WITH WEEDS, IS A PLACE
FOR THE ACCUMULATION OF TRASH AND DEBRIS, OR A HAVEN FOR VERMIN, IF  THE
OWNER  FAILS  TO  REMEDY  THE  PROBLEM WITHIN SIX MONTHS AFTER RECEIVING
NOTICE OF VIOLATION BY THE  APPROPRIATE  GOVERNING  BODY  REQUIRING  THE
OWNER TO REHABILITATE THE PROPERTY TO CONFORM WITH MINIMUM CODE REQUIRE-
MENTS.
  (7) DEFECTIVE OR UNUSUAL CONDITIONS OF TITLE THAT MAKE THE FREE TRANS-
FER OR ALIENATION OF THE PROPERTY IMPOSSIBLE.
  (8) OCCUPIED OR UNOCCUPIED PROPERTY THAT HAS TAX DELINQUENCIES EXCEED-
ING THE VALUE OF THE PROPERTY.
  (9) PROPERTY THAT IS USED FOR PERVASIVE AND PERSISTENT CRIMINAL ACTIV-
ITY. FOR PURPOSES OF THIS SECTION, SUCH ACTIVITY SHALL BE DEFINED AS TWO
OR MORE CONVICTIONS OF ANY PERSON OR PERSONS HAD, WITHIN A PERIOD OF ONE
YEAR, FOR ANY OF THE FOLLOWING PENAL LAW OFFENSES ARISING OUT OF CONDUCT
ENGAGED IN AT THE PROPERTY:
  (A)  SALE  OF  A  CONTROLLED  SUBSTANCE  DESCRIBED IN SECTIONS 220.31,
220.34, 220.39, 220.41, OR 220.43 OF THE PENAL LAW; OR

A. 10811                            4

  (B) OFFENSES RELATED TO THE CRIME  OF  PROSTITUTION  AS  DESCRIBED  IN
ARTICLE TWO HUNDRED THIRTY OF THE PENAL LAW; OR
  (C)  OFFENSES RELATED TO THE CRIME OF GAMBLING AS DESCRIBED IN ARTICLE
TWO HUNDRED TWENTY-FIVE OF THE PENAL LAW; OR
  (D) ENTERPRISE CORRUPTION AS DEFINED IN ARTICLE FOUR HUNDRED SIXTY  OF
THE PENAL LAW.
  (10) PROPERTY THAT DOES NOT OTHERWISE MEET ANY OF THE CONDITIONS LIST-
ED IN THIS SECTION MAY NOT BE DECLARED BLIGHTED.
  (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE FOLLOWING EXCEPTIONS SHALL APPLY:
  (1)  PROPERTY SHALL IN NO CASE BE DECLARED BLIGHTED IF IT MEETS ONE OR
MORE OF THE FOLLOWING CRITERIA:
  (A) VACANT AND UNIMPROVED PROPERTY LOCATED IN ANY  RURAL  OR  SUBURBAN
AREA WHICH IS NOT SERVED BY EXISTING UTILITIES.
  (B)  PROPERTY WHICH SATISFIES THE DEFINITION OF "FARM WOODLAND", "LAND
USED IN AGRICULTURAL PRODUCTION", "UNIQUE AND IRREPLACEABLE AGRICULTURAL
LAND", OR "VIABLE AGRICULTURAL LAND", AS  THOSE  TERMS  ARE  DEFINED  IN
SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW.
  (2) FOR PURPOSES OF THIS SECTION, IF A DEVELOPER OR CONDEMNOR INVOLVED
IN  A  REDEVELOPMENT  PROJECT  HAS  CAUSED OR BROUGHT ABOUT BY ACTION OR
INACTION OR MAINTAINED FOR MORE THAN SEVEN YEARS A CONDITION  LISTED  IN
SUBDIVISION  (A)  OF THIS SECTION WITHIN THE PROPOSED PROJECT AREA, THAT
CONDITION MAY NOT BE USED IN THE DETERMINATION OF BLIGHT.
  (3) FOR PURPOSES OF THIS SECTION, IF PROPERTY LOCATED IN AN  URBANIZED
AREA  GENERALLY  SERVED  BY MUNICIPAL INFRASTRUCTURE AND UTILITIES MEETS
ONE OR MORE OF THE CONDITIONS LISTED IN SUBDIVISION (A) OF THIS  SECTION
DUE  TO FAILURE ON THE PART OF THE APPROPRIATE GOVERNING BODY TO PROVIDE
NECESSARY UTILITY SERVICES AND/OR INFRASTRUCTURE, THAT CONDITION MAY NOT
BE USED IN THE DETERMINATION OF BLIGHT.
  (C) MULTIPLE PROPERTIES AND PROJECT AREAS MAY BE DECLARED BLIGHTED  IF
THEY MEET ANY OF THE FOLLOWING CONDITIONS:
  (1)  FOR  PURPOSES  OF ACQUIRING MULTIPLE UNITS OF PROPERTY BY EMINENT
DOMAIN, AN AREA MAY BE DECLARED GENERALLY BLIGHTED ONLY IF:
  (A) THE AREA IS LOCATED IN AN URBAN OR SUBURBAN AREA GENERALLY  SERVED
BY EXISTING UTILITIES AND INFRASTRUCTURE; AND
  (B)  SEVENTY-FIVE  PERCENT  OF  THE INDIVIDUAL PARCELS IN THE AREA ARE
DECLARED BLIGHTED UNDER SUBDIVISION (A) OF THIS SECTION.
  (2) A CONDEMNOR MAY USE EMINENT DOMAIN TO ACQUIRE ANY UNIT OF PROPERTY
WITHIN A BLIGHTED PROJECT AREA.
  (3) PROPERTIES OWNED BY A DEVELOPER OR CONDEMNOR INVOLVED IN  A  REDE-
VELOPMENT  PROJECT MAY BE INCLUDED IN ANY BLIGHTED PROJECT AREA DETERMI-
NATION.
  (4) FOR PURPOSES OF THIS SECTION, A BUILDING CONTAINING MULTIPLE UNITS
SHALL BE TREATED AS A SINGLE PROPERTY.
  (D) THE FOLLOWING FINDINGS SHALL BE  REQUIRED  BEFORE  A  PROPERTY  OR
PROJECT AREA MAY BE DECLARED BLIGHTED:
  (1)  TO  DECLARE ANY SINGLE PROPERTY BLIGHTED, THE CONDEMNOR MUST MAKE
WRITTEN FINDINGS IDENTIFYING THE SPECIFIC CONDITIONS  WHICH  RENDER  THE
PROPERTY BLIGHTED UNDER SUBDIVISION (A) OF THIS SECTION.
  (2)  TO  DECLARE  MULTIPLE  PROPERTIES  OR PROJECT AREAS BLIGHTED, THE
CONDEMNOR MUST MAKE WRITTEN FINDINGS DEMONSTRATING THAT THE REQUIREMENTS
OF SUBDIVISION (C) OF THIS SECTION HAVE BEEN MET.  TO  DEMONSTRATE  THAT
SEVENTY-FIVE PERCENT OF THE PARCELS IN THE AREA ARE INDIVIDUALLY BLIGHT-
ED,  EACH BLIGHTED PARCEL MUST BE IDENTIFIED AND THE SPECIFIC CONDITIONS
RENDERING IT BLIGHTED UNDER SUBDIVISION (A)  OF  THIS  SECTION  MUST  BE
IDENTIFIED.

A. 10811                            5

  (E)  ANY  DECLARATION MADE PURSUANT TO SUBDIVISION (D) OF THIS SECTION
SHALL BE VALID FOR A PERIOD OF TEN YEARS.
  S  5.  Section  2  of  section  1  of chapter 174 of the laws of 1968,
constituting the New York state urban development corporation  act,  the
ninth undesignated paragraph as added by chapter 280 of the laws of 1984
and  the  tenth  undesignated paragraph as amended by chapter 747 of the
laws of 2005, is amended to read as follows:
  S 2. Statement of legislative findings  and  purposes.  It  is  hereby
found and declared that there exists in [urban] SOME areas of this state
a  condition of substantial and persistent unemployment and underemploy-
ment which causes hardship to  many  individuals  and  families,  wastes
vital  human  resources,  increases the public assistance burdens of the
state and municipalities, impairs the security of family life,  contrib-
utes  to the growth of crime and delinquency, prevents many of our youth
from finishing their  educations,  impedes  the  economic  and  physical
development  of  municipalities  and  adversely  affects the welfare and
prosperity of all the people of the state.  [Many  existing  industrial,
manufacturing and commercial facilities in such urban areas are obsolete
and  inefficient,  dilapidated, and without adequate mass transportation
facilities and public services. Many of such  facilities  are  underuti-
lized  or in the process of being vacated, creating additional unemploy-
ment. Technological advances and  the  provision  of  modern,  efficient
facilities  in  other states will speed the obsolescence and abandonment
of existing facilities causing serious injury  to  the  economy  of  the
state.  Many  existing and planned industrial, manufacturing and commer-
cial facilities are, moreover, far from or not easily accessible to  the
places  of residence of substantial numbers of unemployed persons.  As a
result, problems of chronic unemployment are not  being  alleviated  but
are  aggravated. New industrial, manufacturing and commercial facilities
are required to attract and house new industries and thereby  to  reduce
the  hazards  of unemployment. The unaided efforts of private enterprise
have not met and cannot meet the needs of providing such facilities  due
to problems encountered in assembling suitable building sites]
  IT  IS  FURTHER FOUND AND DECLARED THAT THE UNAIDED EFFORTS OF PRIVATE
INDUSTRIAL,  MANUFACTURING  AND  COMMERCIAL  BUSINESSES  ARE  NEGATIVELY
AFFECTED  BY  AGING  AND INEFFICIENT FACILITIES, DIFFICULTIES IN FINDING
SUITABLE BUILDING SITES FOR NEW  FACILITIES,  lack  of  adequate  public
services, the unavailability of private capital for development [in such
urban  areas],  and the inability of private enterprise alone to plan[,]
AND finance DEVELOPMENT and TO  coordinate  [industrial  and  commercial
development] SUCH DEVELOPMENT with [residential developments for persons
and  families  of  low  income and with] AFFORDABLE HOUSING DEVELOPMENT,
COMMUNITY DEVELOPMENT PROGRAMS, public services and mass  transportation
facilities.
  It  is  further  found  and  declared that there exist in many munici-
palities within this  state  [residential,  nonresidential,  commercial,
industrial  or vacant areas, and combinations thereof, which are slum or
blighted, or which are  becoming  slum  or  blighted  areas  because  of
substandard,   insanitary,  deteriorated  or  deteriorating  conditions,
including obsolete and dilapidated buildings and  structures,  defective
construction,  outmoded  design,  lack  of proper sanitary facilities or
adequate fire or safety protection, excessive  land  coverage,  insuffi-
cient  light and ventilation, excessive population density, illegal uses
and conversions, inadequate  maintenance,  buildings  abandoned  or  not
utilized  in  whole  or substantial part, obsolete systems of utilities,
poorly or improperly designed street patterns and intersections,  inade-

A. 10811                            6

quate  access to areas, traffic congestion hazardous to the public safe-
ty, lack of suitable off-street parking, inadequate loading and  unload-
ing  facilities, impractical street widths, sizes and shapes, blocks and
lots  of  irregular  form,  shape  or insufficient size, width or depth,
unsuitable topography, subsoil or other  physical  conditions,  all  of]
BLIGHTED PROPERTIES AND BLIGHTED AREAS, WHICH ARE CHARACTERIZED BY PREM-
ISES  UNFIT FOR HUMAN HABITATION AND DANGEROUS TO LIFE AND PROPERTY, AND
which hamper or impede proper and economic development of such areas and
which impair or arrest the sound growth of the area, community or  muni-
cipality, and the state as a whole.
  It is further found and declared that there is a serious need through-
out the state for adequate educational, recreational, cultural and other
community  facilities, the lack of which threatens and adversely affects
the health, safety[, morals] and welfare of the people of the state.
  It is further  found  and  declared  that  there  continues  to  exist
throughout  the  state  a seriously inadequate supply of [safe and sani-
tary] DECENT dwelling accommodations for persons  and  families  of  low
income.  This condition is contrary to the public interest and threatens
the health, safety, welfare, comfort and security of the people  of  the
state.  The  ordinary operations of private enterprise cannot provide an
adequate  supply  of  safe  and  sanitary  dwelling  accommodations  [at
rentals] which persons and families of low income can afford.
  IT  IS  FURTHER  FOUND  AND  DECLARED  THAT THERE IS AN URGENT NEED TO
PROTECT AND ENHANCE THE QUALITY OF THE NATURAL ENVIRONMENT, TO ENCOURAGE
THE DEVELOPMENT AND EXPANSION OF EXISTING  AND  ALTERNATIVE  SOURCES  OF
ENERGY  AND  THE  CONSERVATION  OF  ENERGY, AND TO ABATE AND PREVENT THE
GENERATION OF HAZARDOUS WASTE, TOXIC BY-PRODUCTS,  AND  OTHER  TYPES  OF
ENVIRONMENTAL POLLUTION.
  It  is  hereby  declared  to  be  the policy of the state to promote a
vigorous and growing economy, to  prevent  economic  stagnation  and  to
encourage  the  creation  of  new  job opportunities in order to protect
against the hazards of unemployment, reduce the level of public  assist-
ance  to now indigent individuals and families, increase revenues to the
state and to its municipalities and to achieve  stable  and  diversified
local  economies. In furtherance of these goals, it is the policy of the
state to retain  existing  industries  and  to  attract  new  industries
through  the  acquisition,  construction,  FINANCING, reconstruction and
rehabilitation of industrial and  manufacturing  plants  and  commercial
facilities,  and  to  develop  sites  for  new industrial and commercial
building. It is further declared to  be  the  policy  of  the  state  to
promote the development of such plants and facilities, reasonably acces-
sible  to residential facilities, in those areas where substantial unem-
ployment or underemployment exists, to the end that the  industrial  and
commercial  development [of our urban areas] will proceed in sound fash-
ion and in coordination with development of housing, mass transportation
and public services, and that job opportunities  will  be  available  in
those areas where people lack jobs.
  It  is  further  declared to be the policy of the state to promote the
safety, health[, morals] and welfare of the people of the state  and  to
promote  the  sound growth and development of our municipalities through
the [correction of such substandard, insanitary, blighted,  deteriorated
or  deteriorating  conditions, factors and characteristics by the clear-
ance, replanning, reconstruction, redevelopment, rehabilitation,  resto-
ration  or  conservation of such areas,] REDEVELOPMENT OF BLIGHTED AREAS
and [of areas reasonably accessible thereto] the undertaking  of  public
and  private  improvement  programs  [related  thereto],  including  the

A. 10811                            7

provision of educational, recreational and cultural facilities, and  the
encouragement  of participation in these programs by private enterprise.
IN FURTHERANCE OF THESE GOALS, IT IS THE POLICY OF THE STATE  TO  ENGAGE
AND EMPOWER THE PUBLIC THROUGH EDUCATIONAL PROGRAMS, COMMUNITY OUTREACH,
AND  AN OPEN AND INCLUSIVE REDEVELOPMENT PLANNING PROCESS; TO COORDINATE
REDEVELOPMENT PROJECTS AND IMPROVEMENT PROGRAMS  WITH  LOCAL  GOVERNMENT
PLANNING  GOALS;  TO  RESPECT  COMMUNITIES' EXISTING SOCIAL AND CULTURAL
FABRIC AND TO LIMIT RESIDENTIAL AND  BUSINESS  DISPLACEMENT  TO  MAXIMUM
EXTENT  POSSIBLE;  TO  REUSE  EXISTING  RESOURCES AND INFRASTRUCTURE AND
RECYCLE MATERIALS AND STRUCTURES; TO  ENCOURAGE  ENERGY  EFFICIENCY  AND
SUSTAINABLE  BUILDING; TO CONSERVE UNDEVELOPED LAND AND ENCOURAGE INFILL
AND BROWNFIELD DEVELOPMENT; TO IMPROVE OR RESTORE NATURAL  SYSTEMS  SUCH
AS  STREAMBEDS, DRAINAGE COURSES, WETLANDS, RIVERS, AND OTHER ECOLOGICAL
FEATURES, AND TO ENCOURAGE THE CREATION OF PUBLICLY AVAILABLE OPEN SPAC-
ES; TO ENSURE THAT ENVIRONMENTAL POLLUTION DOES NOT  DISPARATELY  AFFECT
AREAS WITH A SUBSTANTIAL NUMBER OF MINORITY OR LOW INCOME HOUSEHOLDS; TO
INCORPORATE  CULTURAL  RESOURCES  AND LANDSCAPES INTO PROJECT DESIGNS BY
PRESERVING AND REHABILITATING BUILDINGS  WITH  CULTURAL,  HISTORICAL  OR
ARCHITECTURAL SIGNIFICANCE, ENCOURAGING ADAPTIVE REUSE AS AN ALTERNATIVE
TO DEMOLITION AND NEW CONSTRUCTION, AND ENCOURAGING COMPATIBLE DESIGN OF
NEW CONSTRUCTION; TO ENCOURAGE THE RETENTION AND CONSTRUCTION OF AFFORD-
ABLE HOUSING THROUGH INCENTIVES, LOANS, AND OTHER PROGRAMS; TO ENCOURAGE
DEVELOPMENT  THAT  IS ACCESSIBLE AND INVITING TO PEDESTRIANS, BICYCLISTS
AND TRANSIT USERS, AND TO DISCOURAGE  DEVELOPMENT  THAT  IS  RELIANT  ON
PERSONAL   AUTOMOBILE  TRANSPORTATION;  TO  INCREASE  OPPORTUNITIES  FOR
PRIVATE ENTERPRISE, ESPECIALLY FOR SMALL BUSINESSES,  LOCAL  BUSINESSES,
AND  BUSINESSES  OWNED  BY MINORITIES AND WOMEN, THROUGH PROCEDURES THAT
ARE FAIR, OPEN, EQUITABLE, TRANSPARENT, AND DEMONSTRATED TO BE THE  BEST
CHOICE  FOR  THE  PUBLIC  INTEREST; TO PROVIDE SUFFICIENT GUARANTEES AND
PROTECTIONS IN THE EVENT THAT PRIVATE DEVELOPERS WITHDRAW  FROM  PARTIC-
IPATION  IN  A REDEVELOPMENT PROJECT OR IMPROVEMENT PROGRAM; TO INCREASE
EMPLOYMENT OPPORTUNITIES FOR  LOCAL  RESIDENTS,  ESPECIALLY  LOW  INCOME
RESIDENTS,  HOMELESS  PERSONS,  SINGLE  PARENTS,  FORMERLY  INCARCERATED
PERSONS, AND PERSONS WITH OTHER  BARRIERS  TO  EMPLOYMENT,  THROUGH  JOB
TRAINING,  LOCAL  HIRING AND OTHER ASSISTANCE PROGRAMS; AND TO ENCOURAGE
THE CREATION OF QUALITY JOBS THAT PROVIDE A LIVING WAGE, ADEQUATE HEALTH
BENEFITS, AND OPPORTUNITIES FOR ADVANCEMENT.
  It is further declared to be the policy of the state  to  promote  the
safety,  health[, morals] and welfare of the people of the state through
the provision of adequate, safe and sanitary dwelling accommodations and
facilities incidental or appurtenant thereto for persons and families of
low income.
  For these purposes, there should be created a  corporate  governmental
agency to be known as the "New York state urban development corporation"
which,  through  issuance  of  bonds and notes to the private, investing
public, by encouraging maximum participation by the  private  sector  of
the  economy,  including the sale or lease of the corporation's interest
in projects at the earliest time deemed feasible,  and  through  partic-
ipation  in  programs undertaken by the state, its agencies and subdivi-
sions, and by municipalities and the federal government, may provide  or
obtain  the  capital  resources  necessary to acquire, construct, recon-
struct, rehabilitate or improve such industrial, manufacturing,  commer-
cial,  educational,  recreational  and  cultural facilities, and housing
accommodations for persons and families of low  income,  and  facilities
incidental  or  appurtenant  thereto,  and  to carry out the [clearance,

A. 10811                            8

replanning, reconstruction and rehabilitation of  such  substandard  and
insanitary] REDEVELOPMENT OF BLIGHTED areas.
  It is further declared to be the policy of New York state to encourage
the development of research and development facilities and high technol-
ogy  industrial  incubator  space  at  institutions  of higher education
located in this state and authorized to confer degrees by law or by  the
board  of  regents,  or  on lands in reasonable proximity to such insti-
tutions provided that (i) in the case of research and development facil-
ities such facilities are for the cooperative use of one  or  more  such
institutions  and  one or more business corporations, research consortia
or other industrial organizations  involved  in  research,  development,
demonstration,  or other technologically oriented industrial activities;
and (ii) in the case of high technology industrial incubator space, such
space shall be for rental to business concerns which are in their  form-
ative  stages  and  which  are  involved  in high technology activities,
including but not limited to business concerns  initiated  by  students,
employees  of  such  institution,  including  faculty  members and other
persons or firms academically associated with such institution.
  It is hereby declared that the acquisition,  construction,  FINANCING,
reconstruction,  rehabilitation or improvement of such industrial, manu-
facturing and commercial facilities, and of such  cultural,  educational
and  recreational  facilities  including  but  not limited to facilities
identified as projects and called for to implement  a  state  designated
heritage  area  management  plan  as  provided  in title G of the parks,
recreation and historic preservation law;  the  [clearance,  replanning,
reconstruction  and  rehabilitation  of such substandard and insanitary]
REDEVELOPMENT OF BLIGHTED areas; and the provision of adequate, safe and
sanitary housing accommodations for persons and families of  low  income
and  such  facilities  as  may  be incidental or appurtenant thereto are
public uses and public purposes for which public money may be loaned and
private property may be acquired and tax exemption granted, and that the
powers and duties of the New York state urban development corporation as
hereinafter prescribed are necessary  and  proper  for  the  purpose  of
achieving the ends here recited.
  S  6.  Section  3  of  section  1  of chapter 174 of the laws of 1968,
constituting the New York state urban development  corporation  act,  is
amended by adding two new subdivisions 31 and 32 to read as follows:
  (31)  "BLIGHTED  PROPERTY"  AND  "BLIGHTED  AREA".  PROPERTY  THAT  IS
DECLARED BLIGHTED UNDER SECTION 204-A OF THE  EMINENT  DOMAIN  PROCEDURE
LAW.
  (32) "SLUM". PROPERTY THAT IS DECLARED BLIGHTED UNDER SECTION 204-A OF
THE EMINENT DOMAIN PROCEDURE LAW.
  S  7.  Subdivision  12 of section 3 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration  act,  is  REPEALED  and a new subdivision 12 is added to read as
follows:
  (12) "SUBSTANDARD AND INSANITARY PROPERTY". PROPERTY THAT IS  DECLARED
BLIGHTED UNDER SECTION 204-A OF THE EMINENT DOMAIN PROCEDURE LAW.
  S  8.  Subdivision  7  of section 5 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration act, is amended to read as follows:
  (7)  To  acquire  or contract to acquire from any person, firm, corpo-
ration, municipality, federal  or  state  agency,  by  grant,  purchase,
condemnation  or otherwise, leaseholds, real, personal or mixed property
or any interest therein, SUBJECT TO THE LIMITATIONS IN SECTION 204-A  OF
THE EMINENT DOMAIN PROCEDURE LAW; to own, hold, clear, improve and reha-

A. 10811                            9

bilitate,  and to sell, assign, exchange, transfer, convey, lease, mort-
gage, or otherwise dispose of or encumber the same;
  S  9.  Section  10  of  section  1 of chapter 174 of the laws of 1968,
constituting the New  York  state  urban  development  corporation  act,
subdivision  (d) as amended by chapter 847 of the laws of 1971, subdivi-
sions (e) and (f) as added and subdivisions (g) and (h) as relettered by
chapter 839 of the laws of 1987, is amended to read as follows:
  S 10. Findings of the corporation. Notwithstanding any other provision
of this act, the corporation shall not be  empowered  to  undertake  the
acquisition, construction, reconstruction, rehabilitation or improvement
of a project unless the corporation finds:
  (a) in the case of a residential project:
  (1)  That  there  exists,  in  the  area in which the project is to be
located, or in an area reasonably accessible to such area,  a  need  for
[safe  and  sanitary] DECENT housing accommodations for persons or fami-
lies of low income, which the operations of  private  enterprise  cannot
provide;
  (2)  That  the  project  has  been  approved as a project of a housing
company pursuant to the provisions of the private housing finance law.
  (b) in the case of an industrial project:
  (1) That the area  in  which  the  project  is  to  be  located  is  a
[substandard or insanitary area, or is in danger of becoming a substand-
ard or insanitary area] BLIGHTED AREA, AS THAT TERM IS DEFINED IN SUBDI-
VISION  (H)  OF SECTION 103 OF THE EMINENT DOMAIN PROCEDURE LAW, wherein
there exists a condition of substantial and persistent  unemployment  or
underemployment;
  (2) That the acquisition or construction and operation of such project
will  prevent,  eliminate  or  reduce unemployment or underemployment in
such area;
  (3) That such project shall consist of a building or  buildings  which
are  suitable for manufacturing, warehousing or research or other indus-
trial, business or commercial purposes[.];
  (4) That adequate provision has been, or will be made for the  payment
of the cost of the acquisition, construction, operation, maintenance and
upkeep of such project[.];
  (5) That the acquisition and construction, proposed leasing, operation
and use of such project will aid in the development, growth and prosper-
ity of the state and the area in which such project is located;
  (6)  That  the  plans  and  specifications assure adequate light, air,
sanitation and fire protection.
  (c) in the case of a land use improvement project:
  (1) That the area  in  which  the  project  is  to  be  located  is  a
[substandard or insanitary area, or is in danger of becoming a substand-
ard  or  insanitary  area and tends to impair or arrest the sound growth
and development of the municipality] BLIGHTED  AREA,  AS  THAT  TERM  IS
DEFINED  IN  SUBDIVISION (H) OF SECTION 103 OF THE EMINENT DOMAIN PROCE-
DURE LAW;
  (2) That the project consists of a plan or undertaking for the  clear-
ance, replanning, reconstruction and rehabilitation of such area and for
recreational and other facilities incidental or appurtenant thereto;
  (3)  That  the  plan  or  undertaking  affords maximum opportunity for
participation by private enterprise, consistent with the sound needs  of
the municipality as a whole.
  (d) in the case of a civic project:
  (1)  That THE AREA IN WHICH THE PROJECT IS TO BE LOCATED IS A BLIGHTED
AREA, AS THAT TERM IS DEFINED IN SUBDIVISION (H) OF SECTION 103  OF  THE

A. 10811                           10

EMINENT DOMAIN PROCEDURE LAW, WHEREIN there exists [in the area in which
the  project  is  to  be located,] a need for the educational, cultural,
recreational, community, municipal, public service or other civic facil-
ity to be included in the project;
  (2) That the project shall consist of a building or buildings or other
facilities  which  are suitable for educational, cultural, recreational,
community, municipal, public service or other civic purposes;
  (3) That such project will be leased to or owned by the  state  or  an
agency  or  instrumentality  thereof,  a  municipality  or  an agency or
instrumentality thereof, a public corporation, or any other entity which
is carrying out a community, municipal, public service  or  other  civic
purpose,  and that adequate provision has been, or will be, made for the
payment of the cost of acquisition, construction, operation, maintenance
and upkeep of the project;
  (4) That the plans and specifications assure or will  assure  adequate
light, air, sanitation and fire protection.
  (e) in the case of an industrial effectiveness project:
  (1)  That a feasibility study or productivity assessment exists demon-
strating the potential for future profitability of the  firm  requesting
financial  assistance and such study or assessment has been reviewed and
approved by the commissioner of economic development;
  (2) That for loans to implement a  corporate  restructuring  or  turn-
around plan, the management of the industrial firm requesting assistance
is  capable  and  the  firm  has  a sound business development plan that
includes measures to ensure labor  and  management  cooperation  and  to
effect changes required to continue as a successful business;
  (3)  That  the  requested  financial  assistance is not available from
other public or private financing sources; and
  (4) That the area  in  which  the  project  is  to  be  located  is  a
[substandard or insanitary area, or is in danger of becoming a substand-
ard or insanitary area] BLIGHTED AREA, AS THAT TERM IS DEFINED IN SUBDI-
VISION  (H)  OF SECTION 103 OF THE EMINENT DOMAIN PROCEDURE LAW, wherein
there exists a condition of substantial and persistent  unemployment  or
underemployment.
  (f)  in  the  case  of  a  small  and medium-sized business assistance
project:
  (1) That the area in which the project will be located is a [substand-
ard or insanitary area, or is in danger of  becoming  a  substandard  or
insanitary  area]  BLIGHTED AREA, AS THAT TERM IS DEFINED IN SUBDIVISION
(H) OF SECTION 103 OF THE EMINENT DOMAIN PROCEDURE  LAW,  wherein  there
exists  a condition of substantial and persistent unemployment or under-
employment;
  (2) That the project demonstrates  market,  management  and  financial
feasibility and has a clear likelihood of success;
  (3)  That the [industrial] firm provides at least a ten percent equity
contribution and such contribution is not  derived  from  other  govern-
mental sources;
  (4)  That  the  requested  financial  assistance is not available from
other public or private financing sources on terms compatible  with  the
successful completion of the project;
  (5)  That the project will not result in the relocation of any [indus-
trial] firm from one municipality within the state  to  another  munici-
pality,  OR  IN  THE  ABANDONMENT OF ONE OR MORE OF THE FIRMS' PLANTS OR
FACILITIES LOCATED WITHIN THE STATE, except under one of  the  following
conditions: (i) when [an industrial] A firm is relocating within a muni-
cipality  with  a population of at least one million where the governing

A. 10811                           11

body of such municipality approves such relocation; [or] (ii) the corpo-
ration notifies each municipality from which such [industrial] firm will
be relocated and each municipality agrees to such relocation;  OR  (III)
THE  CORPORATION  SHALL DETERMINE ON THE BASIS OF THE APPLICATION BEFORE
IT THAT THE PROJECT IS REASONABLY NECESSARY TO DISCOURAGE THE FIRM  FROM
RELOCATING  TO  A LOCATION OUTSIDE THE STATE AND TO PRESERVE THE COMPET-
ITIVE POSITION OF THE FIRM WITHIN ITS RESPECTIVE INDUSTRY; and
  (6) That the project is not for the purpose of refinancing any portion
of the total project cost or  other  existing  loans  or  debts  of  the
project sponsor or owner.
  (g)  in the case of all projects, that [there is a feasible method for
the relocation of families and individuals displaced  from  the  project
area into decent, safe and sanitary dwellings] THE DISPLACEMENT OF RESI-
DENTS AND BUSINESSES IS LIMITED TO THE MAXIMUM EXTENT POSSIBLE, AND THAT
ALL DISPLACED RESIDENTS AND BUSINESSES WILL BE AFFORDED ADEQUATE COMPEN-
SATION  AND/OR  ASSISTANCE  TO  BE RELOCATED TO SUBSTANTIALLY COMPARABLE
PROPERTIES, which are or will be [provided] LOCATED in the project  area
or in [other areas] AN AREA REASONABLY PROXIMATE TO THE PROJECT AREA AND
not  generally  less  desirable in regard to public utilities and public
and commercial facilities, at SUBSTANTIALLY COMPARABLE rents  or  prices
[within  the  financial  means  of  such  families  or individuals], and
reasonably accessible to their places  of  DWELLING  AND/OR  employment.
[Insofar  as is feasible, the] THE corporation shall offer SUBSTANTIALLY
COMPARABLE housing accommodations to  [such  families  and  individuals]
DISPLACED  RESIDENTS in [residential] projects [of the corporation] THAT
INCLUDE A RESIDENTIAL COMPONENT, AND INSOFAR AS IS FEASIBLE, THE  CORPO-
RATION  SHALL  OFFER  SUBSTANTIALLY  COMPARABLE INDUSTRIAL OR COMMERCIAL
ACCOMMODATIONS TO DISPLACED  BUSINESSES  IN  PROJECTS  THAT  INCLUDE  AN
INDUSTRIAL  OR COMMERCIAL COMPONENT. The corporation may render to busi-
ness and commercial tenants and [to families or other persons] displaced
[from the project area,] RESIDENTS ANY OTHER such assistance as  it  may
deem [necessary to enable them to relocate] APPROPRIATE.
  (h) in the case of all projects, the corporation shall state the basis
for its findings.
  S 10. This act shall take effect immediately.