NY Educ L § 1726 (2021)
2021 New York Laws EDN - Education Title 2 - School District Organization Article 35 - Union Free School Districts 1726 - Lease and Lease-Purchase of Buildings.

§ 1726. Lease  and lease-purchase of buildings. 1. Notwithstanding any   inconsistent provision of law, the board of education of any union  free   school  district may enter into agreements pursuant to the provisions of   this section for the lease or lease-purchase  of  buildings  for  school   purposes, to be placed or erected on a site owned by the district.1-a.  Notwithstanding  any inconsistent provision of law, the board of   education of any union free school district  may  enter  into  agreement   with  the dormitory authority for the lease or lease-purchase for school   purposes from the dormitory  authority  of  a  dormitory  (or  any  part   thereof),  as  defined  in  section  sixteen  hundred seventy-six of the   public authorities law, including, if the agreement so  provides,  land,   buildings,  any  attendant  facilities,  and  equipment,  provided  such   dormitory (a) is  owned  by  or  in  the  possession  of  the  dormitory   authority,  and (b) was originally provided or financed by the authority   for an educational institution as defined in subdivision one of  section   sixteen  hundred  eighty  of  the  public  authorities law and (c) is no   longer being used by such educational institution.  Any  such  agreement   may  provide for the alteration, reconstruction or rehabilitation of any   such dormitory or part thereof by the school district or  the  authority   as capital items. The provisions of subdivisions three, four, six, eight   and  nine  of  this  section  shall  not apply to any agreement with the   dormitory  authority   authorized   by   this   subdivision,   provided,   nevertheless, that the lease or lease-purchase agreement may not be made   for  a  period in excess of the applicable period of probable usefulness   for  the  building  or  buildings,  as  so  altered,  reconstructed   or   rehabilitated,  and provided, further, that the plans and specifications   for  such  building  or  buildings,  as  so  altered,  reconstructed  or   rehabilitated,  shall  be  subject  to  approval  of the commissioner of   education, before such alteration, reconstruction or rehabilitation  may   be authorized by the board of education of such school district.2.  Before  executing any such agreement, the board of education shall   adopt a resolution determining  that  such  agreement  is  in  the  best   financial interests of the school district and stating the basis of that   determination.3. Such agreements shall be subject to the bidding requirements of the   general municipal law, except that the provisions of section one hundred   one   of  the  general  municipal  law  shall  not  apply  to  lease  or   lease-purchase of pre-manufactured items  delivered  to  the  site,  but   shall apply to installation and other work to be performed on the site.4.  No  agreement for the lease of a building or buildings may be made   for a term  of  more  than  five  years,  beginning  with  the  time  of   occupancy.  No  lease-purchase  agreement  may  be  made  for  a  period   exceeding the applicable period of probable usefulness pursuant  to  the   provisions  of  the local finance law. Nothing herein contained shall be   deemed to prohibit a board of education from entering into a renewal  of   such  lease  agreement  of  such building or buildings for like periods,   provided, however, that the total lease payments or the total amount  of   lease-purchase  agreement payments over the period of any such agreement   including all lease renewals, may not exceed the purchase price of  such   building  or  buildings,  together  with  interest  of not to exceed six   percent per annum on any unpaid balance.5. A board of education may not enter into any lease or lease-purchase   agreement authorized by this section without the  previous  approval  of   the voters of the district; provided that a board of education may, with   the  approval  of  the commissioner, lease necessary space in case of an   unforeseeable emergency.6. Any agreement by which a building is leased to  a  school  district   for  installation  on  land owned by the district must include provision    for the removal of such building by the lessor within ninety days  after   termination  of  the lease, unless such lease is renewed or title to the   building passes to the school district in accordance with the provisions   of this section.7.  The commissioner, with the approval of the director of the budget,   shall establish a uniform procedure for  allocation  of  payments  under   lease-purchase  agreements  for the purpose of determining operating aid   and aid for building purposes, respectively; provided, however, that  no   building  aid  shall  be  paid  unless and until the school district has   legally  committed  itself  to  the  purchase  in  accordance  with  the   provisions of this section.8.  Plans  and specifications and the proposed lease, lease renewal or   lease-purchase  agreement  for  buildings  to  be  leased  or  purchased   pursuant  to  the  provisions  of  this  section must be approved by the   commissioner before a board of education may authorize  or  execute  any   agreement, or renewal thereof, for such purposes.9.  The  term  "lease", as used in this section, shall include a lease   with an option to purchase; provided, however, that in  the  case  of  a   lease  with  an option to purchase, no part of any lease payments may be   counted against the purchase price, in case the option  to  purchase  is   exercised.10.  The  term  of  no lease agreement including renewals thereof, may   exceed the period of probable usefulness provided for such  building  or   buildings by the local finance law.11.  No  annual  installment  of lease-purchase payment may exceed any   other such installment under any such agreement by more than  fifty  per   centum thereof.12.  Any  school  district  entering into any lease-purchase agreement   under this section, shall pledge its full faith and credit for the  full   performance  of  all  obligations  under  such  agreement, including all   annual payments required to be made thereunder.13. The annual payments to be made by the school  district  under  any   such  agreement  shall  commence within two years after the execution of   any such agreement, or within thirty days from the  time  the  board  of   education  shall  have  approved  such building for occupancy, whichever   shall be later.14. The total amount of any unpaid annual payments of a lease-purchase   agreement in relation to the principal of any such indebtedness, in case   of a school district in a city as defined in the local finance law shall   be deemed to be indebtedness  of  the  school  district  for  a  capital   improvement  within the meaning of subparagraph (b) of subdivision three   of paragraph a of section 135.00 of the local finance law.15. The annual payments by  such  a  school  district  in  a  city  in   relation  to  such  indebtedness  and  interest  shall  be  deemed to be   "indebtedness" and "interest" within  the  meaning  of  section  ten  of   article eight of the state constitution.16.  No such agreement shall be renegotiated or amended in such manner   as to constitute a refunding  within  the  meaning  of  section  two  of   article eight of the state constitution.