N.Y. GMU Law § 507 — New York Code / Act GMU / Article 15 / Section 507
Disposition of property
Status: in_force

§ 507. Disposition of property. 1. In addition to employing any other\nlawful method of utilizing or disposing of any real property, and\nappurtenances thereto or any interest therein owned by a municipality or\nacquired by it pursuant to section five hundred six of this article, a\nmunicipality may sell, lease for a term not exceeding ninety-nine years,\nor otherwise dispose of any such real property and appurtenances\nthereto, to any person, firm or corporation at the highest marketable\nprice or rental at public auction or by sealed bids pursuant to the\nprovisions of any general, special or local laws applicable to the sale\nor disposition of real property by said municipality.\n  2. Notwithstanding anything to the contrary contained in this article\nand notwithstanding the provisions of any general, special or local law\napplicable to the sale of real property by a municipality, such real\nproperty and appurtenances thereto may be sold, leased for a term not\nexceeding ninety-nine years or otherwise disposed of for the\neffectuation of any of the purposes of the urban renewal program in\naccordance with the urban renewal plan:\n  (a) to any limited profit housing company organized pursuant to the\nprovisions of article two of the private housing finance law without\npublic auction or sealed bids;\n  (b) to any limited dividend housing company organized pursuant to\narticle four of the private housing finance law or redevolpment company\norganized pursuant to article five of the private housing finance law,\nwithout public auction or sealed bids provided that notice of such sale,\nlease or other disposition is published and a public hearing is held\nbefore the governing body not less than ten days after such publication;\n  (c) to any person, firm or corporation designated by the agency and\napproved by the governing body as a qualified and eligible sponsor in\naccordance with established rules and procedures prescribed by the\nagency, provided that (1) the agency has published, in at least one\nnewspaper of general circulation in the municipality at least ten days\nprior to such sale, lease or other disposition, a notice which shall\ninclude a statement of the identity of the proposed sponsor and of his\nproposed use or reuse of the urban renewal area or of the applicable\nportion thereof; such notice shall be in such form and manner as may be\nprescribed by the agency and, in the case of projects aided by a state\nloan, periodic subsidy or capital grant or in which application has been\nmade for such loan, subsidy or grant, as approved by the commissioner;\n(2) such proposed sponsor agrees to pay the minimum price or rental\nfixed by the agency for such real property; (3) such proposed sponsor\nmatches any bid higher than the said minimum price or rental, and (4)\nsuch sale, lease or other disposition shall require effectuation of the\npurpose thereof within a definite and reasonable period of time. In the\nevent that such qualified and eligible sponsor does not agree to pay the\nminimum price or rental fixed by the agency or fails to match any higher\nbid than such minimum price or rental, a municipality may, in its sole\ndiscretion and only if consistent with the urban renewal plan, sell or\nlease for a term not exceeding ninety-nine years any such real property\nand appurtenances thereto, to any person, firm or corporation, the\nproperty acquired from such person, firm or corporation or substantially\nequivalent property within the urban renewal area, provided that such\nformer owner (1) agrees to pay the said minimum price or rental and (2)\nmatches any higher bid than said minimum price or rental, and\n  (d) to any person, firm or corporation designated by the agency as a\nqualified and eligible sponsor pursuant to the provisions of clause (1)\nof subsection (c) of this subdivision without public auction or sealed\nbids, provided that (1) the price or rental to be paid by such sponsor\nfor such property and all other essential terms and conditions of such\nsale, lease or other disposition shall be included in the notice\npublished by the agency pursuant to the said clause (1) of subsection\n(c) of this subdivision, (2) that such sale, lease or other disposition\nbe approved by the governing body after a public hearing held not less\nthan ten days after the publication of such notice, and (3) such sale,\nlease or other disposition shall, in the case of projects aided by a\nstate loan, periodic subsidy or capital grant or in which application\nhas been made for such loan, subsidy or grant, be approved by the\ncommissioner.\n  (e) for the effectuation of any of the purposes of the urban renewal\nprogram and in accordance with the urban renewal plan, a municipality\nmay grant, sell, convey or lease, without public hearing or public\nletting, to a public utility subject to the jurisdiction of the public\nservice commission, for construction and maintenance of public utility\nsystems, and the conduct and operation thereof, for such length of time\nas it may deem advisable, franchises, easements or rights of ways, in,\nover, below, along or across any lands acquired by the municipality\npursuant to this article, upon such terms and conditions, for such\nconsideration and subject to such restrictions as in the judgment of its\ngoverning body shall seem proper, provided, the governing body shall\nfirst determine that the use and enjoyment for such purposes of such\nlands is not inconsistent with the purposes and provisions of the urban\nrenewal plan.\n  3. Any deed, lease or instrument by which real property and\nappurtenances thereto, or air rights and concomitant easements or other\nrights of user necessary for the use and development of such air rights\nover streets, alleys, highways or other public rights of way, railway or\nsubway tracks, bridge or tunnel approaches or entrances, or other\nsimilar facilities, or air rights sites and necessary sitework, the\nfoundations and platforms constructed or to be constructed in connection\ntherewith, or any interest therein is conveyed or disposed of pursuant\nto this section shall contain provisions requiring the purchaser, lessee\nor grantee to replan, clear, rehabilitate, restore, renew, conserve,\nimprove, reconstruct or redevelop such property in accordance with the\nurban renewal plan as approved by the governing body and within a\ndefinite and reasonable period of time subject to the terms of the\ncontract relating thereto between the municipality and the sponsor, and\nprovisions insuring the use of such real property for purposes\nconsistent with such urban renewal plan.\n  4. (a) Leases authorized by this section may contain provisions\nsubordinating the fee interest of a municipality to a sponsor for\npurposes of pledging or assigning such fee interest to the primary\nleasehold mortgagee of said lease, provided that the amount to which the\nfee is subordinated shall not exceed the lessee's cost of completing its\nobligation to replan, clear, rehabilitate, restore, renew, conserve,\nimprove, reconstruct or redevelop such property in accordance with the\nlease provisions.\n  (b) A municipality may execute such instruments as may be required to\nimplement the provisions of this subdivision.\n  (c) Leases and such other instruments as may be required shall contain\nprovisions stating that (1) the municipality shall assume no liability\nfor any debt underlying the pledge or assignment of the fee interest;\n(2) the municipality, at its option, may satisfy any obligation for\nwhich the fee interest is assigned or pledged; and (3) no foreclosure\naction shall be maintained against such subordinated fee interest until\nthe obligation of the sponsor to replan, clear, rehabilitate, restore,\nrenew, conserve, improve, reconstruct or redevelop such property has\nbeen completed in accordance with the lease provisions.\n  (d) A municipality shall not subordinate its fee interest, as\nauthorized by this subdivision, to any leasehold mortgagee if the\nmunicipal fee interest is to be assigned or pledged to another\ngovernmental agency, public authority or public benefit corporation\ncreated and organized for the purpose of providing primary or secondary\nfinancial assistance for commercial, industrial or business development.\n  5. In a city having a population of one million or more, the governing\nbody may, as part of its review of the land use impact and implications\nof a disposition of property for residential use proposed to be made\npursuant to this section, incorporate into its approval any or all of\nthe following: (i) the number of residential units; (ii) whether such\nunits are home ownership units, rental units or condominium or\ncooperative units; (iii) the estimated initial rents or selling prices\nfor such units; (iv) income restrictions, if any, on renters or\npurchasers of such units; and (v) the basis on which the consideration\nfor the sale or lease of the property is to be determined; provided,\nhowever, that this subdivision shall not apply to the extent an approved\nurban renewal plan incorporates such items.\n