NY Pub Hsg L § 58 (2021)
2021 New York Laws PBG - Public Housing Article 3 - Municipal Housing Authorities 58 - Sale or Lease of Municipal Projects by Authorities.

§  58.  Sale  or  lease  of  municipal  projects by authorities. 1. An   authority, subject to the approval of the local legislative body of  the   municipality  in  which such authority has territorial jurisdiction, may   sell or lease any municipal project of such authority to any corporation   created pursuant to article two of the private housing finance law on  a   co-operative  basis,  and an authority may enter into a contract for the   sale of or sell or lease a  municipal  project  to  such  a  corporation   either  prior  to,  at  the  date  of,  or  subsequent  to  the physical   completion of such project and, in the event of a sale or lease  of  any   such project prior to the physical completion thereof, the authority may   agree  to complete and may complete construction and development of such   project. No such corporation to which such a municipal project  is  sold   or leased as provided in this section shall pay a dividend on any of its   stock or pay interest on any of its income debentures.2.  Any  sale or lease of a municipal project by an authority pursuant   to subdivision one of this section may be made without  public  bidding,   public  sale  or  public  offering pursuant to such negotiated contract,   agreement   or   lease,   containing   such   provisions,   limitations,   requirements,  terms and conditions, as the authority selling or leasing   such project, in its  discretion,  may  determine  to  be  necessary  or   desirable;  provided,  that,  in  the  event  of  a  sale of a municipal   project, the purchase price to be paid to the authority on or  prior  to   date  of transfer of title to such project by the authority, or upon the   physical completion of such project, shall not be less than  the  amount   required  by  the  authority to pay and retire, or to make provision for   the payment and retirement of, all bonds, notes  and  other  obligations   issued  by the authority to finance the project cost, and to pay or make   provision for the payment of all obligations incurred or to be  incurred   by the authority as part of the project cost.3. Notwithstanding  the  provisions of section thirty-three of article   two of the private housing finance law, the real property in a municipal   project sold or leased as provided in subdivision one of  this  section,   when  the  transfer  thereunder  becomes effective, shall be exempt from   local  and  municipal  taxes,   other   than   assessments   for   local   improvements,  to such extent as may be granted by the local legislative   body of any municipality in which such  project  is  located;  provided,   however, that any corporation to which such project is so sold or leased   shall  pay  to  each  municipality  in  which a project is located, with   respect to each such project, local and municipal taxes in  amounts  not   less  than  the  sum or sums contracted to be paid by the authority as a   payment in lieu of taxes with respect to  such  project  and  which  the   authority  would be obligated to pay to the municipality had it not sold   or leased the project to such a corporation.  The  tax  exemption  shall   operate  and  continue  so  long  as capital loans of the corporation to   which such project shall have been sold or leased are  outstanding,  but   in no event shall such exemption for a municipal project located outside   a city of one million or more persons continue for a period of more than   thirty  years,  commencing  in  each instance from the date on which the   benefits of such exemption became available to and  effective  for  such   corporation.Notes,  bonds,  mortgages  and other obligations of such a corporation   are declared to be  issued  for  a  public  purpose  and  to  be  public   instrumentalities  and,  together with interest thereon, shall be exempt   from tax.4. The provisions of section thirteen of article two  of  the  private   housing  finance  law  requiring  the  approval  by  the commissioner of   housing of the persons incorporating a  limited-profit  housing  company   and  the  provisions  of  section fourteen of article two of the private    housing finance law requiring the consent of the commissioner of housing   to the filing of the certificate of incorporation of such a  company  in   the office of the secretary of state and the amendment thereof shall not   apply  to  a  corporation created pursuant to article two of the private   housing finance law on a cooperative basis for the purchase or lease  of   a  municipal  project  pursuant  to  this  section; nor shall any of the   provisions of article two of the private housing finance law  conferring   upon the commissioner of housing any powers in respect of limited-profit   housing  companies  apply to such a corporation. The application of this   subdivision shall be limited to corporations undertaking a project  with   the  aid  of  a  municipal loan under article two of the private housing   finance law.5. Any project that received a tax exemption under this  section  may,   upon  the  expiration  of  the  tax  exemption  period,  be  granted  an   additional tax exemption period of up to fifty years, or until such time   as the project is no longer operated under the restrictions and for  the   purposes set forth in this article, whichever is sooner.