This month, the Authorities Budget Office issued regulations to increase the accountability, and to improve the efficiency and transparency, of the operations of Industrial Development Agencies (“IDAs”) within New York state.

Effective December 5, 2018, Part 250 (the “Regulations”) was added to Title 19 of the New York Codes, Rules, and Regulations. The Regulations mainly reiterate the statutory requirements of Section 859-a of the General Municipal Law regarding the prerequisites to the provision of financial assistance by IDAs.

In March 2013, the addition of Section 875 to the New York State Industrial Development Agency Act (the “Act”) required an IDA, among other things, to report and make available on the Internet copies of its resolutions and agreements appointing an agent or project operator in relation to any project. In June 2016, the Act was amended to require IDAs to develop a standard application form to be used in accepting applications for financial assistance.

The regulations now require each IDA to post and make publicly accessible the following on its website:

1. Developed standard application form

2. Evaluation criteria for granting financial assistance

3. Uniform Project Agreements and all attachments, appendixes and other relevant records that set forth the terms and conditions under which financial assistance shall be provided, including but not limited to completed project application forms submitted by all project applicants

4. Policy for suspension or termination of financial assistance, or a modification of any payment in lieu of tax agreement (PILOT)

5. Recapture policy

6. Annual report on active projects with respect to achieving the goals of job creation or retention