§ 21.11. Special provisions relating to tax-equivalency payments. 1.\nThe trust shall use and apply in the following order the tax-equivalency\npayments it receives in respect of each combined-use facility:\n (a) the trust shall first pay the costs of administration of the trust\nallocable to such combined-use facility in accordance with generally\naccepted accounting principles consistently applied, including without\nlimitation, the costs of collecting such tax-equivalency payments, and\nestablish or maintain such reserves for the payment of such costs as the\ntrust deems necessary;\n (b) the trust shall then pay to the city, from and after the date on\nwhich the trust acquires any real property described in subdivision two\nof section 21.09 of this article or any other real propert
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§ 21.11. Special provisions relating to tax-equivalency payments. 1.\nThe trust shall use and apply in the following order the tax-equivalency\npayments it receives in respect of each combined-use facility:\n (a) the trust shall first pay the costs of administration of the trust\nallocable to such combined-use facility in accordance with generally\naccepted accounting principles consistently applied, including without\nlimitation, the costs of collecting such tax-equivalency payments, and\nestablish or maintain such reserves for the payment of such costs as the\ntrust deems necessary;\n (b) the trust shall then pay to the city, from and after the date on\nwhich the trust acquires any real property described in subdivision two\nof section 21.09 of this article or any other real property in or on\nwhich all or any part of a combined use facility is or is designed to be\ndeveloped after January first, nineteen hundred ninety-seven, as nearly\nas practicable in accordance with the applicable schedule for making\nreal property tax payments to the city with respect to such property,\nannual amounts equal to the total assessed valuation, for the fiscal\nyear of such acquisition, of any such acquired real property with\nrespect to which real property taxes were paid to the city during the\nfiscal year immediately preceding such acquisition, multiplied by the\nreal property tax rate applicable to such acquired property during each\nfiscal year in which such amounts are required to be paid; provided that\nthe amount paid by the trust pursuant to this paragraph during any\nfiscal year shall not be less than the amount paid by the trust pursuant\nto this paragraph during the immediately preceding fiscal year;\n (c) if, for any fiscal year of the city up to and including the fiscal\nyear ending ten years after the taxable status date next following the\ncompletion of construction of the non-institutional portion of such\nfacility, the amount required to be paid by the trust pursuant to\nparagraph (b) of this subdivision is less than ten per centum of the\naggregate amount of tax-equivalency payments received by the trust in\nrespect of such portion during the same fiscal year, then the trust\nshall pay to the city, in lieu of the amount required to be paid by the\ntrust pursuant to paragraph (b) of this subdivision, an amount equal to\nten per centum of the aggregate amount of such tax-equivalency payments;\n (d) the trust shall then pay to the city an amount equal to fifty per\ncentum of the increase in the amount of tax-equivalency payments\nreceived by the trust in respect of the non-institutional portion of\nsuch facility, during each fiscal year of the city following the fiscal\nyear beginning ten years after the taxable status date next following\nthe completion of construction of such portion, above the amount of the\ntax-equivalency payments received by it during the fiscal year beginning\nten years after such taxable status date, such payments to be made by\nthe trust at the end of each fiscal year of the city for which they are\nrequired to be made; to the extent that such increase has resulted from\na change in the assessed valuation or the real property tax rate applied\nto such portion;\n (e) with remaining amounts, to pay principal and interest on bonds,\nnotes and other obligations of the trust issued to finance development\nof all or any part of the institutional portion of such combined-use\nfacility, and establish or maintain reserves to pay or secure such\nbonds, notes or other obligations equal to no more than the sum required\nto be paid to such reserves so that the moneys then held in such\nreserves equal the aggregate amount of the then outstanding principal of\nsuch bonds plus any redemption premium thereon and any interest to\naccrue thereon to the earliest or subsequent date of payment or\nredemption thereof;\n (f) unless otherwise provided by a resolution of the board of estimate\nof the city, or successor body, beginning with the fiscal year of the\ntrust in which the trust has paid, redeemed or otherwise retired or\nprovided a reserve to redeem or otherwise retire all bonds, notes and\nobligations of the trust issued to finance development of all or any\npart of the institutional portion of such combined-use facility, the\ntrust shall then pay from time to time the costs of operating and\nmaintaining the institutional portion, developed by or on behalf of the\ntrust, of such combined-use facility, including without limitation, the\ncosts of lighting, heating, cooling, security, maintenance, repairs and\nnecessary replacements; provided that at the end of each fiscal year of\nthe city after commencement of payment of such costs, the trust shall\nhave sufficient funds to make the payments then required under\nparagraphs (b), (c) and (d) of this subdivision; and\n (g) the trust shall then pay to the city the entire remaining balance\nat the end of each fiscal year of the trust.\n The provisions of paragraphs (b), (c) and (d) of this subdivision\nshall be subject to any agreement under subdivision five of section\n20.13 of article twenty of this chapter.\n 2. Solely for purposes of determining the amount of the\ntax-equivalency payments required to be paid in respect of the real\nproperty, consisting of the non-institutional portion, or any part\nthereof, of a combined-use facility or in or on which all or any part of\nsuch portion prior to completion is designed to be and upon completion\nis developed for residential use, such real property shall be deemed to\nbe exempt from real property taxation as follows: during the period of\nconstruction of such portion, such exemption shall consist of full\nexemption, and for a period not to exceed ten years in the aggregate\nafter the taxable status date in the city next following the completion\nof such construction, such exemption shall consist of two years of full\nexemption, followed by two years of exemption from eighty percent of\nsuch taxation, followed by two years of exemption from sixty percent of\nsuch taxation, followed by two years of exemption from forty percent of\nsuch taxation, followed by two years of exemption from twenty percent of\nsuch taxation; provided that during such period of construction and such\nten-year period tax-equivalency payments shall be made with respect to\nsuch real property at least equal to the amount computed by multiplying\n(a) the amount which bears the same ratio to the assessed valuation, for\nthe fiscal year of the city prior to the commencement of such\nconstruction, of the land comprising the zoning lot or lots, exclusive\nof the real property described in subdivision two of section 21.09 of\nthis article on which all or any part of such combined-use facility is\nor is designed to be developed as the floor area used or designed to be\nused in the non-institutional portion of such facility for residential\nuse bears to the aggregate floor area permitted to be constructed on\nsuch lot or lots under applicable zoning regulations in effect at the\ntime of commencement of such construction by (b) the real property tax\nrate in the city for such fiscal year.\n 3. The exercise of the power granted to the trust by this article and\narticle twenty of this chapter to collect tax-equivalency payments from\nowners is in all respects for the general welfare and benefit of the\npeople of the state, and with respect to such owners, has the same\neffect as though such tax-equivalency payments were taxes as defined in\nthe real property tax law which had been duly levied and imposed upon\nsuch owners by the city.\n 4. If any owner shall fail to make tax-equivalency payments as\nrequired by this article and article twenty of this chapter, the trust\nshall have a lien on the real property in respect of which such payments\nwere required to be made as if the tax-equivalency payments were real\nproperty taxes and the trust were a tax district within the meaning of\nthe real property tax law. Such lien shall have all the priorities of a\nlien for taxes of such real property in favor of the city and shall be\nenforceable by the trust in the manner provided for the collection of\ntax liens in title two of such article eleven; provided that in place of\nany period of redemption provided by law no judgment of foreclosure\nshall be entered until three years after the date on which such owner\nfirst failed to make such payments; and provided further that from such\ndate interest shall accrue on such lien at the rate for late payment of\nreal property taxes in the city.\n