2023 New York Laws › RAT - Rapid Transit › Article 4 - Construction and Operation by the Board of Transportation › 34 - Issue of Bonds by City.

§  34.  Issue  of  bonds  by city. a. For the purpose of providing the
  necessary means for such construction, or equipment,  or  both,  as  the
  case  may  be,  or  acquiring by purchase, at the public expense, of any
  such road or subsurface structures, and the necessary means to  pay  for
  property  rights which shall be acquired by the city for the purposes of
  the construction or the operation of any such road as provided  in  this
  chapter,  and the necessary means to pay awards made as provided in this
  chapter for damages for change of grade on any street  and  to  pay  the
  expenses  of  proceedings  to determine such damages, and of meeting the
  interest on obligations,  issued  for  the  purposes  of  this  section,
  accruing  thereon prior to the completion and readiness for operation of
  the portion of such road,  and  such  sub-surface  structures,  for  the
  purchase,  construction,  or  equipment  of which such obligations shall
  have been respectively issued, the mayor, from time to time, as the same
  shall be necessary, upon the requisition of the board of transportation,
  shall make available such  sums  as  may  be  necessary,  upon  vouchers
  certified by the board of transportation. In case any person shall claim
  to  be entitled to any money on account of a contract entered into under
  the terms of this chapter,  for  the  construction  of  any  part  of  a
  municipal  railroad  and the board of transportation shall fail, neglect
  or refuse to certify a proper or sufficient voucher for the  payment  of
  the  money  so  claimed,  a  proper or sufficient voucher shall not be a
  condition precedent to the liability of the city, but an action  may  be
  brought directly against the city for the recovery of such money as such
  person  may  be entitled to. This section shall not affect the powers of
  the board or its engineers, as set forth in this chapter or as they  may
  be  prescribed  in  any  contract  entered  into pursuant thereto, or to
  change or alter in any respect the existing rules of law as to the force
  or effect of any certificate which shall have been or may  hereafter  be
  made  under  any contract. This section shall be deemed to apply also to
  any  such  actions  instituted  before  May  sixth,   nineteen   hundred
  twenty-one.  If  bonds  are  issued by the city for the purposes of this
  section they may be made payable out of a sinking fund to be established
  and created out  of  the  annual  rentals  or  revenues  of  such  road,
  including  sub-surface  structures, as provided in this chapter. In case
  the board shall request the mayor to  have  any  part  of  the  work  of
  restoration   of   street   surfaces   or  property  incidental  to  the
  construction of any such road performed by or under the direction of any
  head of an agency of such city or any  subdivision  of  such  city,  the
  mayor  may set apart out of any appropriation theretofore made under the
  foregoing provisions of  this  section  such  amount  as  the  board  of
  transportation  may specify and shall make such amount available for the
  use of such head of such agency for the purposes of such restoration  of
  street surfaces or property.
b.  A  contract  for  the  construction of such road shall not be made
  unless and until the mayor shall have consented thereto and prescribed a
  limit to the amount of funds available for the purposes of this  section
  which  shall  be sufficient to meet the requirements of such contract in
  addition to all obligations theretofore incurred  and  to  be  satisfied
  from such funds. The board of transportation of the city of New York, in
  its  discretion,  may  request  the  mayor to make available either such
  amounts from time to time as it shall deem the progress of the  work  to
  require,  or  the  full  amount  sufficient  to pay the entire estimated
  expenses of executing any contract made pursuant to  this  chapter.  The
  certificate  of  the  comptroller,  mentioned  in section 93c-3.0 of the
  administrative code of the city of New York shall not  be  necessary  to
  make  any  such  contract binding on the city. Before finally fixing the
  terms and conditions of any contract for any of the  purposes  contained

  and  set  forth  in  this chapter, the board of transportation may set a
  date or  dates  for  a  public  hearing  upon  the  proposed  terms  and
  conditions thereof, at which citizens shall be entitled to appear and be
  heard.  No  such  hearing  shall  be held, however, until notice thereof
  shall have been published for  at  least  two  weeks  immediately  prior
  thereto  in  the city record, or other official publication of the city,
  and at least twice in two daily newspapers published in the city. In any
  case where such a public hearing has been scheduled,  it  shall  be  the
  duty  of  the board of transportation to cause as many copies of a draft
  of the proposed contract to be printed at least two weeks in advance  of
  such  hearing  as  may  be necessary. Such notice of such public hearing
  shall state where copies of such drafts may be obtained upon payment  of
  a  fee, to be fixed by such board, but not to exceed one dollar for each
  copy. The board, after the hearing to be held  as  above  required,  may
  alter,  modify  or  amend  such  draft  contract  in  any  manner in its
  discretion.
c. A railroad  owned  or  to  be  owned  by  the  city,  and  for  the
  construction  of  which with public money in whole or in part a contract
  was or is authorized by this chapter to be entered  into  as  aforesaid,
  shall  be  a  local improvement the cost of which railroad may be met in
  whole or in part by assessment on the  property  benefited.  The  board,
  with  the approval of the board of estimate and of the mayor, shall have
  power to determine whether all or any, and if any, what portion  of  the
  cost  and  expense  necessary  to be incurred for any such road shall be
  assessed upon property benefited thereby, and whether all or any, and if
  any, what portion of the cost and expense necessary to be  incurred,  or
  which  shall have been already necessarily incurred, for the acquisition
  of any property for the construction or operation of such railroad shall
  be assessed upon property benefited by such railroad. An assessment upon
  the property so benefited may be laid, confirmed, enforced and collected
  in accordance with such determination and pursuant to the provisions  of
  the  charter, administrative code of such city and other laws respecting
  assessments for local improvements in such city.
d. At any time after the consents have  been  obtained  for  any  such
  railroad  and  the  detailed plans and specifications therefor have been
  prepared as authorized and directed  by  this  chapter,  the  board  may
  certify  and  transmit to such board of estimate an estimate of the cost
  and expense necessary to  be  incurred  for  the  construction  of  such
  railroad,  and  for the acquisition of any property, including equipment
  other than rolling  stock,  that  shall  be  necessary  either  for  the
  construction  or the operation of such railroad, or from time to time an
  estimate of the cost and expense necessary to be incurred or a statement
  of the cost and expense which has  been  necessarily  incurred  for  the
  acquisition  of  any  property for the construction or operation of such
  railroad. With such estimate or statement the  board  of  transportation
  shall transmit a statement which shall show:
1.  The  proportion of such cost and expense, together with the amount
  thereof in money, which should be assessed upon the property benefited;
2. The  boundaries  of  the  district  in  such  city  upon  which  an
  assessment aggregating such amount should in the opinion of the board be
  levied, and
3. The amount so to be levied in every such district.
  Thereupon  the  board  with the approval of the board of estimate and of
  the mayor, shall have power to, and, if in their judgment the  interests
  of the public so require, after publishing a notice at least one week in
  advance  in  the  City  Record and in such other newspapers published in
  such city as such board of estimate with  the  approval  of  the  mayor,
  shall  designate  as sufficient, stating the time, place and subjects to

  be considered, and after a joint hearing, pursuant to such notice by and
  before the board of transportation and the board of estimate, which  may
  be  adjourned  from  time to time, in accordance with the charter, code,
  and  laws  aforesaid, they shall fix and determine the boundaries of the
  district upon which such assessment shall be levied, the whole amount or
  proportion of any such cost and expense to  be  assessed  upon  property
  benefited  by  such  improvement,  and  the amount or proportion of such
  whole assessment to  be  levied  in  such  district  benefited  by  such
  improvement,  and  take  such  other and further proceedings as shall be
  necessary to levy and collect such  assessment.  Such  decision  of  the
  board  of  transportation  so  approved by the board of estimate and the
  mayor, shall be final as to each matter  so  fixed  and  determined  and
  shall not be subject to review.
e.  The  board  of  estimate,  with  the  approval of the mayor, shall
  certify to the board of assessors of such city the amount of  such  cost
  and  expense  so directed to be assessed upon property benefited in each
  such district. Such board of assessors shall thereupon proceed forthwith
  to levy and assess  such  amount  upon  the  real  property  within  the
  district  benefited  thereby in proportion to the amount of such benefit
  and shall not be limited in the levying of such assessment  to  one-half
  of  the  fair  value of any house or lot or improved or unimproved land.
  Such assessment when laid shall be subject to,  and  protected  by,  all
  provisions   of  the  charter  and  administrative  code  of  such  city
  applicable to assessments for local improvements levied pursuant to such
  charter and code.
f. An assessment levied against any property in accordance  with  this
  section  shall  be  payable as follows, namely: one-tenth thereof within
  sixty days  from  the  date  of  the  confirmation  and  entry  of  each
  assessment  and the remainder of such assessment in nine installments as
  nearly equal in amount as may be with interest thereon from the date  of
  entry  and  confirmation at the rate of six per centum per annum in one,
  two, three, four, five, six, seven, eight and  nine  years  respectively
  thereafter,  but  all  installments not due may be paid at any time with
  interest to the date of payment. If any installment and interest thereon
  be not paid within three years after it shall become due and payable the
  entire assessment less such part thereof  as  shall  have  been  already
  paid, shall become due and payable and must be immediately collected, or
  the  tax  lien  therefor  sold  or  enforced in the same manner as other
  delinquent assessments are required to  be  collected  by  the  charter,
  administrative code and other laws of such city.
g. Obligations of the city issued in advance of the collection of such
  assessments  shall be payable out of the rapid transit construction fund
  as hereinafter directed  to  be  constituted.  They  shall  be  a  legal
  investment for the sinking funds of such city and for trustees and other
  fiduciaries charged with the investment of trust funds.
h.  All  moneys  derived  from  the  sale of such obligations, and all
  moneys derived from the collection of such  assessments  shall  be  kept
  separate  and  apart from all other funds of the city and shall be known
  as the rapid transit construction fund  of  such  railroad.  Unless  the
  assessment be made separately for the cost and expense of acquisition of
  property  as aforesaid, they shall be applied only to the following uses
  and, among such uses, only in the following order as nearly as may be:
1. To the cost and expenses of the construction of such  railroad  and
  the  acquisition  of property necessary for such construction, including
  equipment other than rolling stock;
2. To the acquisition of real property  necessary  for  the  operation
  thereof;
3. To the retirement of the obligations therefor.
In  case  an  assessment  is  made separately for the cost and expense
  incurred or to be incurred for the acquisition of any property  for  the
  construction  or  operation of any such railroad, the money derived from
  the sale of such obligations, and all moneys derived from the collection
  of  such  assessment  shall be applied only to pay or reimburse the cost
  and expense of acquisition of the property for which such assessment was
  made or to the retirement of the obligations issued in  advance  of  the
  collection of such assessment.
i. In case of default in the payment of any installment of interest or
  principal  of  any  such  obligations the holder thereof may require, if
  necessary, by peremptory order of mandamus, any tax lien  of  such  city
  for  the  amount  of any assessment upon the property benefited which is
  then due and payable, to be immediately sold or enforced  in  accordance
  with the charter, administrative code and other laws of such city. If at
  such time the tax lien so sold shall include, in addition to the lien of
  the  assessment  aforesaid,  any  lien  for  delinquent  taxes  or other
  lienable charges due to the city, and if it shall  become  necessary  to
  reduce  the  amount  of  the tax lien pursuant to such charter, code and
  laws of such city, the lien shall not be reduced so as to make  it  less
  in  value  than the amount of the assessment aforesaid with the interest
  thereon. Notwithstanding any reduction as aforesaid, the proceeds of the
  sale of such a lien, to the extent of the full amount of the  assessment
  and  interest, shall be paid into the rapid transit construction fund of
  the railroad aforesaid, and the balance, if any,  shall  be  applied  as
  proceeds of the rest of the tax lien.
j.  If any assessment shall be reduced for fraud, substantial error or
  other reason, the cost and expense aforesaid may be reassessed, and  the
  reassessment  shall  stand  as security for the obligations aforesaid to
  the same degree and in the same manner as if it  had  been  an  original
  assessment. In case any assessment is reduced below its original amount,
  however,  either  the amount to be expended in constructing the railroad
  aforesaid and for acquisition of property necessary for construction and
  operation thereof as aforesaid, or to be  expended  for  acquisition  of
  property,  if  the  assessment  reduced  is for cost and expense thereof
  separately, shall be correspondingly  reduced  or  else  the  difference
  between  the  original  assessment and the reassessment shall be paid by
  the city into the  rapid  transit  construction  fund  of  the  railroad
  aforesaid, either from current revenue or from sums to be made available
  as the board of estimate shall determine.
k.  If  the cost and expenses of construction of any such railroad and
  for acquisition of property necessary  for  construction  and  operation
  thereof  as aforesaid shall be only partially assessed as aforesaid upon
  the  property  benefited,  no  provisions  in  any  contract   for   the
  construction  thereof shall become operative until the board of estimate
  and the mayor shall have consented thereto and shall have  prescribed  a
  limit  to  the amount of city funds if any, available for the purpose of
  such contract as hereinbefore provided. No provisions  in  any  contract
  for  the  construction  of any railroad which construction is to be paid
  for wholly  or  partly  by  means  of  local  assessments  shall  become
  operative until the board of estimate shall have levied an assessment to
  provide for the construction thereof, and until either assessments shall
  have been paid in, or obligations issued in advance of the collection of
  such  assessments,  shall have been sold in sufficient amounts when paid
  for, to cover the cost and expense payable from  assessments  levied  as
  aforesaid  and  until  the  board  of  estimate and the mayor shall have
  consented to such a contract.
l. In a case where the moneys collected pursuant to such an assessment
  shall  be  insufficient  to  discharge  the  obligations  so  issued  as

  aforesaid,  or  if the amount arising on the sale of such obligations is
  insufficient to pay the expenses incurred for the construction  of  such
  railroad  and for acquisition of property necessary for construction and
  operation thereof as aforesaid, or incurred for acquisition of property,
  if  the  assessment  is  for  cost  and  expense thereof separately, the
  deficiency up to an amount not in excess of ten per centum of the  total
  amount  of  the  assessment  shall  be  paid by such city into the rapid
  transit construction fund, either from current revenue or from sums made
  available as the board of estimate and the mayor shall determine.