NY Gen Mun L § 695 (2021)
2021 New York Laws GMU - General Municipal Article 16 - Urban Development Action Area Act 695 - Disposition of Property.

§  695. Disposition of property. 1. In addition to employing any other lawful  method  of  utilizing  or  disposing  of  an  eligible  area,  a municipality may sell, lease for a term not exceeding ninety-nine years, or  otherwise  dispose  of  any  such  real  property  and appurtenances thereto, to any person, firm or corporation at  the  highest  marketable price  or  rental  at  public  auction or by sealed bids pursuant to the provisions of any general, special or local laws applicable to the  sale or disposition of real property by such municipality.   2.  Notwithstanding  any  provision  to the contrary contained in this article or any other law, general, special or local, applicable  to  the sale  of  real  property  by  a  municipality,  such  real  property and appurtenances thereto may be sold,  leased  for  a  term  not  exceeding ninety-nine  years  or otherwise disposed of for the effectuation of any of the purposes of this article to:  (a) any person, firm or  corporation  designated  by  the  agency  and approved  by the governing body or, in a city having a population of one million or more, by the mayor, as a qualified and  eligible  sponsor  in accordance  with  established  rules  and  procedures  prescribed by the agency, provided that: (i) the agency has published,  in  at  least  one newspaper  of  general circulation in the municipality at least ten days prior to such sale, lease or other disposition,  a  notice  which  shall include  a project summary of the proposed urban development action area project and such notice shall be in the form and  manner  prescribed  by the  agency;  (ii) such proposed sponsor agrees to pay the minimum price or rental fixed by  the  agency  for  such  real  property;  (iii)  such proposed  sponsor  matches  any  bid  higher  than such minimum price or rental;  and  (iv)  such  sale,  lease  or  other  disposition  requires effectuation  of  the  urban  development  action  area project within a definite and reasonable period of time; or  (b) any person, firm or corporation designated  by  the  agency  as  a qualified  and eligible sponsor in accordance with established rules and procedures prescribed by the agency without  public  auction  or  sealed bids,  provided  that (i) the price or rental to be paid by such sponsor for such property and all other essential terms and conditions  of  such sale,  lease  or  other  disposition  shall  be  included  in the notice published by the agency pursuant to subparagraph (i) of paragraph (a) of this subdivision, (ii) such sale, lease or  other  disposition  requires the  effectuation  of  an  urban  development action area project with a definite and reasonable period of time, and (iii) that such sale,  lease or  other  disposition be approved by the governing body or, in any city having a population of one million or more, by the mayor, after a public hearing held not less than  ten  days  after  the  publication  of  such notice.   3.  A  municipality  may  not  transfer  pursuant  to this article any interest in any  eligible  area  to  any  person,  firm  or  corporation constituting  (i)  any  former  owner  in fee of all or part of the real property in which such interest is sought to be transferred  or  of  any other  real property which was acquired by the municipality through real property tax or other lien enforcement proceedings; (ii) any  spouse  of such  a former owner; (iii) any business entity substantially controlled by such a former owner; or (iv) any successor  in  interest  to  such  a former owner, except a purchaser from such successor in interest in good faith  and  for  value. The municipality shall require an affidavit from each person, firm or corporation to whom it proposes to sell or lease an interest in any such eligible area certifying that the proposed sale  or lease  does  not  violate  the provisions of this subdivision. Any deed, lease, or instrument which transfers an interest in  any  such  eligible area  in  violation  of  this  subdivision  shall  be  voidable  by  the  municipality, provided that a subsequent bona fide holder of an interest in the real property, whether as purchaser, lessee, or  mortgagee  shall not be affected by this subdivision three.   4.  Any  lease of real property and appurtenances thereto for a period in excess of one year including any renewals or options to renew or  for a  total  rental may be made only upon a written appraisal of the market value thereof  verified  by  an  appraiser  with  at  least  five  years experience  appraising real property, made within a period of sixty days prior to the authorization  to  enter  into  such  lease  given  by  the governing  body  or,  in  any city having a population of one million or more, by the mayor, and filed in the office of that body or officer  and made  available  for public examination and copying at least thirty days before such authorization. Any sale of real property  and  appurtenances thereto shall be made only upon a written appraisal of the value thereof by  an  appraiser  with  at  least five years experience appraising real property, made within six months prior to the authorization of such sale or other disposition by the governing body or,  in  any  city  having  a population of one million or more, by the mayor, and filed in the office of  that  body  or officer and made available for public examination and copying at least thirty days before such authorization.   5.  Any  deed,  lease  or  instrument  by  which  real  property   and appurtenances  thereto, or air rights and concomitant easements or other rights of users necessary for the use and development of such air rights over streets, alleys, highways or other public rights of way, railway or subway tracks, bridge  or  tunnel  approaches  or  entrances,  or  other similar  facilities,  or  air  rights  sites and necessary sitework, the foundations and platforms constructed or to be constructed in connection therewith, or any interest therein is conveyed or disposed  of  pursuant to this section shall contain provisions requiring the purchaser, lessee or  grantee  to  replan,  clear, rehabilitate, restore, renew, conserve, improve, reconstruct or redevelop such property in accordance  with  the urban  development action area project as approved by the governing body and within a definite and reasonable period of time subject to the terms of  the  contract  or  lease  or  deed  relating  thereto  between   the municipality  and the sponsor, and shall contain provisions insuring the use of such real  property  for  purposes  consistent  with  such  urban development action area project.   6.  (a)  Leases  authorized  by  this  section  may contain provisions subordinating the fee interest  of  a  municipality  to  a  sponsor  for purposes  of  pledging  or  assigning  such  fee interest to the primary leasehold mortgagee of such lease, provided that the amount to which the fee is subordinated shall not exceed the lessee's cost of completing its obligation to replan, clear,  rehabilitate,  restore,  renew,  conserve, improve,  reconstruct  or redevelop such property in accordance with the lease provisions.  (b) A municipality may execute such instruments as may be required  to implement the provisions of this subdivision.  (c) Leases and such other instruments as may be required shall contain provisions  stating that: (i) the municipality shall assume no liability for any debt underlying the pledge or assignment of  the  fee  interest; (ii)  the  municipality,  at  its option, may satisfy any obligation for which the fee interest is assigned or pledged; and (iii) no  foreclosure action  shall be maintained against such subordinated fee interest until the obligation of the sponsor to replan, clear,  rehabilitate,  restore, renew,  conserve,  improve,  reconstruct  or redevelop such property has been completed in accordance with the lease provisions.  (d) Notwithstanding any standards or procedures established  for  land disposition  by  general,  special  or local law or charter, if an urban  development action area project is to be developed on an  eligible  area and  consists  solely  of the rehabilitation or conservation of existing private or multiple dwellings or the construction of one  to  four  unit dwellings  or, until June thirtieth, two thousand twenty-four, for up to six urban development action area projects in  any  calendar  year,  the construction  of  up  to  ninety  dwelling units financed by the federal government and restricted to occupancy by the elderly or by persons with disabilities without any change in land use permitted by local zoning, a municipality may dispose of the real property  constituting  such  urban development action project to any person, firm, or corporation qualified pursuant  to this subdivision by resolution of its governing body or, in any city having a population of one million or more, by  action  of  the mayor,  provided  that  such  disposition  is  in  accordance  with  the requirements of this subdivision. Disposition of real property  acquired by  condemnation shall be in accordance with the requirements of section four hundred six of the eminent domain procedure law, if applicable.   7. In a city having a population of one million or  more,  within  one hundred  fifty  days  following receipt of a written submission from the agency requesting waiver of designation of an urban  development  action area  and  approval  of  an  urban  development action area project, the governing body  shall  (i)  approve  or  disapprove  by  resolution  the requested  waiver  of  designation  of  an urban development action area pursuant to section six hundred ninety-three of this article,  and  (ii) approve  or  disapprove  by  resolution  the  proposed urban development action area project pursuant to section six hundred ninety-four of  this article.  If  the  governing  body  fails to take such action within one hundred fifty days following receipt of such written submission from the agency, then (i) the waiver  of  designation  of  an  urban  development action area requested by the agency shall be deemed approved pursuant to section  six  hundred  ninety-three  of this article, and (ii) the urban development action area project proposed by the agency shall  be  deemed approved pursuant to section six hundred ninety-four of this article.