2023 New York Laws › RPA - Real Property Actions and Proceedings › Article 19 - Discharge or Extinguishment of Encumbrances, Claims and Interests › 1955 - Modification or Extinguishment of Certain Restrictions on the Use of Land Held for Charitable Purposes.

§  1955. Modification or extinguishment of certain restrictions on the
use of land held for charitable purposes. 1. Where land is held, whether
or not in trust, for  benevolent,  charitable,  educational,  public  or
religious  purposes  and  the  use  of  such  land is restricted to such
purpose or to a particular application of or means of carrying out  such
purpose  by  a special limitation or condition subsequent created in the
conveyance or devise under which the land is so held, or by an agreement
to convey, reconvey or surrender the land or the estate so held  upon  a
contingency relating to its use, an action may be brought in the supreme
court  to  obtain  relief  from  such  restriction  as  provided in this
section.
2. No action  for  the  relief  provided  in  this  section  shall  be
commenced  until  the  expiration  of two years from the creation of the
special limitation  or  condition  subsequent,  or  the  making  of  the
agreement. The attorney-general shall be a party to such action.
3.  In  determining whether relief shall be granted, and the nature of
such relief, the court shall  consider  and  shall  make  findings  with
respect to the following:
(a)  whether  the primary purpose of the special limitation, condition
subsequent or agreement to convey, reconvey or surrender was to restrict
the use of the land;
(b) whether the purpose of the restriction  was  to  ensure  that  the
substantial  value  of  the land or of the estate subject to the special
limitation, condition subsequent or  agreement,  rather  than  the  land
itself,  or  such  estate  itself,  be  devoted  to  and  employed for a
benevolent, charitable, educational, public or religious purpose.
If the findings with respect to (a) and (b) are such as  to  make  the
following  matters  relevant or appropriate for consideration, the court
shall also consider and make findings with respect to the following:
(c) whether the existence of the restriction is substantially impeding
the owner of  the  land,  or  of  the  estate  subject  to  the  special
limitation, condition subsequent or agreement, in the furtherance of the
benevolent,  charitable,  educational,  public or religious purposes for
which the land is held;
(d) whether the person or persons who would have  a  right  of  entry,
possessory  estate resulting from the occurrence of a reverter, or right
to conveyance, reconveyance or surrender of the land or  estate  in  the
event of breach of the restriction at the time of the action will suffer
substantial  damage  by  reason of extinguishment or modification of the
restriction, and, in such event, whether damages or restitution  of  the
land,  or  its  value,  in  whole  or in part, should be awarded to such
person or persons.
4. The judgment of the court may include, in  the  discretion  of  the
court,  an  adjudication (a) that the restriction is discharged in whole
or in part, or that its tenor is modified as provided in  the  judgment;
(b)  that  the  holder  of  the  land  or  estate therein subject to the
restriction be authorized or directed  to  convey,  lease,  mortgage  or
otherwise  dispose of the land or estate therein free of the restriction
and that the purchaser under such disposition shall  take  free  of  the
restriction;  (c)  directing  the  use  to  which the avails of any such
disposition shall be put; (d) declaring the interests that the owners of
the possibility of reverter or right of  entry,  or  persons  having  an
interest  pursuant to the agreement, shall have in any property paid for
in whole or in part with the proceeds of the disposition;  (e)  awarding
damages  for  such injury as a party to the action may sustain by reason
of extinguishment or modification of the restriction. The  judgment  may
include  such  other  provisions  as  will  in  the opinion of the court
further the benevolent, charitable,  educational,  public  or  religious

purposes  for which the land is held and such other provisions as equity
may require.
5.  This  section  shall  apply  to  a special limitation or condition
subsequent created or agreement made either before or after September 1,
1958, except that it shall not apply (a) where a right of entry or right
to a conveyance, reconveyance or surrender of the property  has  accrued
or  a  reverter  has  occurred  prior  to  that  date,  or (b) where the
conveyance creating  the  restriction  was  made  by  or  the  agreement
creating  the  restriction was made with the United States, the state of
New York or any governmental unit, subdivision or agency of  the  United
States or the state of New York.