2023 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.