New York Senate Bill S04876

New York 2025-2026 Regular Session

• Introduced: 2/13/25
• Refer: 2/13/25
• Refer: 1/7/26

Caption

Authorizes land banks 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.

Summary

S04876 amends New York’s Not-for-Profit Corporation Law provisions governing land banks. The bill expands the powers of land banks by expressly authorizing them to lend money, make grants, and take and hold real and personal property as collateral or security to enforce repayment or grant conditions. It also adds a catch-all authority allowing land banks to do other acts necessary to carry out their statutory purposes. The bill retains existing rules about land bank subsidiaries, including requirements that subsidiaries be organized as New York charitable not-for-profit corporations or single-member LLCs, be used to limit liability or satisfy legal structure requirements, and keep their property and reporting tied to the parent land bank. The measure takes effect immediately and is framed as a technical but meaningful expansion of land bank financing and enforcement tools.

Impact

The bill would broaden the legal authority of land banks under the Not-for-Profit Corporation Law, specifically section 1607, by adding express power to issue loans and grants and to secure those transactions with property interests. This could affect how land banks structure redevelopment, acquisition, and rehabilitation projects, giving them more flexibility to finance property reuse and enforce grant or loan agreements. It also preserves the existing tax-exempt treatment of subsidiary property and operations and leaves the subsidiary framework largely intact while clarifying that land banks may use additional tools to advance their statutory mission.

Sentiment

Based on the bill text and available context, the measure appears to be generally supportive of land bank operations and redevelopment efforts, with no recorded votes or committee debate indicating opposition. The tone of the proposal is practical and administrative, suggesting it is intended to improve the effectiveness of land banks rather than to make a controversial policy shift. Because there are no transcripts or vote results provided, there is no evidence of formal support or resistance beyond the bill’s favorable framing.

Contention

The main potential point of contention is the expansion of land bank powers into lending, grantmaking, and taking security interests, which could raise questions about oversight, financial risk, and the scope of quasi-public authority. Some stakeholders might also scrutinize the use of subsidiaries and whether these entities should have broader transactional authority while retaining tax exemptions and limited liability protections. However, no specific objections, amendments, or opposing viewpoints are included in the provided materials.