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THE TOWN OF BABYLON INDUSTRIAL DEVELOPMENT AGENCY PROPERLY DETERMINED THAT A SENIOR HOUSING PROJECT WAS ENTITLED TO FINANCIAL ASSISTANCE UNDER THE NEW YORK STATE INDUSTRIAL DEVELOPMENT AGENCY ACT (SECOND DEPT).

The Second Department, in a matter of first impression, in a full-fledged opinion by Justice Duffy, determined a senior housing project was entitled to financial assistance under the authority of the New York State Industrial Development Agency Act, affirming the ruling of the Town of Babylon Industrial Development Agency:

The issue on appeal, an issue of first impression for this Court, is whether the respondent Town of Babylon Industrial Development Agency (hereinafter the Babylon IDA) operated within its statutory authority pursuant to the New York State Industrial Development Agency Act (hereinafter the Act) (article 18-A of the General Municipal Law) when it adopted a resolution … determining that a planned affordable senior housing project is included in the type of projects eligible for certain financial assistance and benefits under the Act … . The petitioners appeal from a judgment of the Supreme Court … denying a petition pursuant to CPLR article 78 to review the resolution and dismissing the proceeding. … [W]e affirm on the ground that the court properly determined that the Babylon IDA operated within its statutory authority in granting financial assistance pursuant to the Act. … [T]he determination by the Babylon IDA that a plan to construct affordable senior housing constitutes a “project” as defined in General Municipal Law § 854(4) entitled to financial assistance and benefits under the Act because, among other things, the proposed construction will promote employment opportunities and combat economic deterioration, was rationally based and neither arbitrary and capricious or an abuse of discretion, nor affected by an error of law. The interpretation by the Babylon IDA of the relevant language of the Act comports with the plain meaning of the text contained in the Act as well as the legislative intent of the Act and related authority. Matter of Wyandanch Union Free Sch. Dist. v Town of Babylon Indus. Dev. Agency, 2026 NY Slip Op 00252, Second Dept 1-21-26

 

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