Section 2

Citation: Section 2
Parent Document: United Housing Foundation, Inc. v. Forman, 421 U.S. 837 (1975)
Jurisdiction: United States (federal)
Effective Date: 1975-10-06
Original Source: https://www.courtlistener.com/opinion/109272/united-housing-foundation-inc-v-forman/ ↗

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The Housing Finance Agency is a “public benefit corporation” under New York law, N. Y. Priv. Hous. Fin. Law §43 (1) (1962 and Supp. 1974-1975), empowered “[t]o sue and be sued,” §44 (1). The agency is authorized to accept funds from the State, the Fed*867eral Government, or “any other source,” § 44 (16), but it also is empowered to issue notes, bonds, or other obligations to obtain financing, §§ 44 (7) and 46. Significantly, the State is not liable on the agency’s notes or bonds, and such obligations do not constitute debts of the State. § 46 (8). The agency is therefore not an “alter ego” of the State; rather it is an independent body not entitled to assert the Eleventh Amendment. See Cowles v. Mercer County, 7 Wall. 118 (1869); P. Bator, P. Mishkin, D. Shapiro & H. Wechsler, Hart & Wechsler’s The Federal Courts and the Federal System 690 (2d ed. 1973). Compare Matherson v. Long Island State Park Comm’n, 442 F. 2d 566 (CA2 1971), and Zeidner v. Wuljorst, 197 F. Supp. 23, 25 (EDNY 1961), with Whitten v. State University Construction Fund, 493 F. 2d 177 (CA1 1974), and Charles Simkin & Sons, Inc. v. State University Construction Fund, 352 F. Supp. 177 (SDNY), aff'd mem., 486 F. 2d 1393 (CA2 1973).

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