NY Arts & Cult Aff L § 21.11 (2021)
2021 New York Laws ACA - Arts and Cultural Affairs Title E - New York State Cultural Resources Act Article 21 - Trust for Cultural Resources of the City of New York 21.11 - Special Provisions Relating to Tax-Equivalency Payments.

§ 21.11. Special  provisions relating to tax-equivalency payments.  1. The trust shall use and apply in the following order the tax-equivalency payments it receives in respect of each combined-use facility:  (a) the trust shall first pay the costs of administration of the trust allocable to such combined-use facility  in  accordance  with  generally accepted  accounting  principles consistently applied, including without limitation, the costs of collecting such tax-equivalency  payments,  and establish or maintain such reserves for the payment of such costs as the trust deems necessary;  (b)  the  trust shall then pay to the city, from and after the date on which the trust acquires any real property described in subdivision  two of  section  21.09  of  this article or any other real property in or on which all or any part of a combined use facility is or is designed to be developed after January first, nineteen hundred ninety-seven, as  nearly as  practicable  in  accordance  with the applicable schedule for making real property tax payments to the city with respect  to  such  property, annual  amounts  equal  to  the total assessed valuation, for the fiscal year of such acquisition,  of  any  such  acquired  real  property  with respect  to  which  real property taxes were paid to the city during the fiscal year immediately preceding such acquisition,  multiplied  by  the real  property tax rate applicable to such acquired property during each fiscal year in which such amounts are required to be paid; provided that the amount paid by the trust  pursuant  to  this  paragraph  during  any fiscal year shall not be less than the amount paid by the trust pursuant to this paragraph during the immediately preceding fiscal year;  (c) if, for any fiscal year of the city up to and including the fiscal year  ending  ten years after the taxable status date next following the completion of construction of  the  non-institutional  portion  of  such facility,  the  amount  required  to  be  paid  by the trust pursuant to paragraph (b) of this subdivision is less than ten  per  centum  of  the aggregate  amount  of  tax-equivalency payments received by the trust in respect of such portion during the same  fiscal  year,  then  the  trust shall  pay to the city, in lieu of the amount required to be paid by the trust pursuant to paragraph (b) of this subdivision, an amount equal  to ten per centum of the aggregate amount of such tax-equivalency payments;  (d)  the trust shall then pay to the city an amount equal to fifty per centum of  the  increase  in  the  amount  of  tax-equivalency  payments received  by  the  trust  in respect of the non-institutional portion of such facility, during each fiscal year of the city following the  fiscal year  beginning  ten  years after the taxable status date next following the completion of construction of such portion, above the amount of  the tax-equivalency payments received by it during the fiscal year beginning ten  years  after  such taxable status date, such payments to be made by the trust at the end of each fiscal year of the city for which they  are required  to be made; to the extent that such increase has resulted from a change in the assessed valuation or the real property tax rate applied to such portion;  (e) with remaining amounts, to pay principal and  interest  on  bonds, notes  and  other obligations of the trust issued to finance development of all or any part of the institutional  portion  of  such  combined-use facility,  and  establish  or  maintain  reserves  to pay or secure such bonds, notes or other obligations equal to no more than the sum required to be paid to such reserves  so  that  the  moneys  then  held  in  such reserves equal the aggregate amount of the then outstanding principal of such  bonds  plus  any  redemption  premium  thereon and any interest to accrue thereon  to  the  earliest  or  subsequent  date  of  payment  or redemption thereof;  (f) unless otherwise provided by a resolution of the board of estimate of  the  city,  or successor body, beginning with the fiscal year of the trust in which the trust has paid,  redeemed  or  otherwise  retired  or provided  a  reserve  to redeem or otherwise retire all bonds, notes and obligations  of  the  trust  issued to finance development of all or any part of the institutional portion of  such  combined-use  facility,  the trust  shall  then  pay  from  time  to  time the costs of operating and maintaining the institutional portion, developed by or on behalf of  the trust,  of such combined-use facility, including without limitation, the costs of lighting, heating, cooling, security, maintenance, repairs  and necessary  replacements; provided that at the end of each fiscal year of the city after commencement of payment of such costs,  the  trust  shall have   sufficient  funds  to  make  the  payments  then  required  under paragraphs (b), (c) and (d) of this subdivision; and  (g) the trust shall then pay to the city the entire remaining  balance at the end of each fiscal year of the trust.   The  provisions  of  paragraphs  (b),  (c) and (d) of this subdivision shall be subject to any agreement  under  subdivision  five  of  section 20.13 of article twenty of this chapter.   2.   Solely   for   purposes   of   determining   the  amount  of  the tax-equivalency payments required to be paid  in  respect  of  the  real property,  consisting  of  the  non-institutional  portion,  or any part thereof, of a combined-use facility or in or on which all or any part of such portion prior to completion is designed to be and  upon  completion is  developed for residential use, such real property shall be deemed to be exempt from real property taxation as follows: during the  period  of construction  of  such  portion,  such  exemption  shall consist of full exemption, and for a period not to exceed ten  years  in  the  aggregate after  the taxable status date in the city next following the completion of such construction, such exemption shall consist of two years of  full exemption,  followed  by  two  years of exemption from eighty percent of such taxation, followed by two years of exemption from sixty percent  of such  taxation, followed by two years of exemption from forty percent of such taxation, followed by two years of exemption from twenty percent of such taxation; provided that during such period of construction and such ten-year period tax-equivalency payments shall be made with  respect  to such  real property at least equal to the amount computed by multiplying (a) the amount which bears the same ratio to the assessed valuation, for the  fiscal  year  of  the  city  prior  to  the  commencement  of  such construction,  of  the land comprising the zoning lot or lots, exclusive of the real property described in subdivision two of  section  21.09  of this  article  on which all or any part of such combined-use facility is or is designed to be developed as the floor area used or designed to  be used  in  the non-institutional portion of such facility for residential use bears to the aggregate floor area permitted  to  be  constructed  on such  lot  or  lots under applicable zoning regulations in effect at the time of commencement of such construction by (b) the real  property  tax rate in the city for such fiscal year.   3.  The exercise of the power granted to the trust by this article and article twenty of this chapter to collect tax-equivalency payments  from owners  is  in  all  respects for the general welfare and benefit of the people of the state, and with respect  to  such  owners,  has  the  same effect  as though such tax-equivalency payments were taxes as defined in the real property tax law which had been duly levied  and  imposed  upon such owners by the city.   4.  If  any  owner  shall  fail  to  make  tax-equivalency payments as required by this article and article twenty of this chapter,  the  trust shall have a lien on the real property in respect of which such payments  were  required  to  be made as if the tax-equivalency payments were real property taxes and the trust were a tax district within the  meaning  of the  real property tax law. Such lien shall have all the priorities of a lien  for  taxes of such real property in favor of the city and shall be enforceable by the trust in the manner provided for  the  collection  of tax liens in title two of such article eleven; provided that in place of any  period  of  redemption  provided  by law no judgment of foreclosure shall be entered until three years after the date on  which  such  owner first  failed to make such payments; and provided further that from such date interest shall accrue on such lien at the rate for late payment  of real property taxes in the city.