§ 460 — Lease and other agreements

§ 460. Lease and other agreements. 1. Any agreement entered into\nbetween the fund and the owner or developer of a proposed combined\noccupancy structure pursuant to section four hundred fifty-four of this\nchapter shall provide for (i) the construction, acquisition,\nreconstruction, rehabilitation or improvement of one or more combined\noccupancy structures, and the purchase or acquisition of the original\nfurnishings, equipment, machinery and apparatus to be used in the school\nportion of a combined occupancy structure upon completion of the work,\n(ii) the reconveyance, retransfer or leasing of all or any portion\nthereof and of the real property or interest therein related thereto,\nincluding real property originally acquired by the board of education in\nthe name of the city of New York, upon the completion of construction,\nacquisition, reconstruction, rehabilitation or improvement upon such\nterms and conditions as may be agreed upon in those instances where\nthere has been a prior conveyance, transfer or lease by the Fund to the\nowner or developer, (iii) the leasing or subleasing of such combined\noccupancy structures and property, or separately of the school and\nnon-school portions thereof, by the fund upon completion for a term not\nexceeding ninety-nine years and upon such terms and conditions including\nannual rental as may be agreed upon, and (iv) the conveyance to the\nboard of education in the name of the city of New York of title to the\nschool portion of any such combined occupancy structures at the\nexpiration of the term of the lease, or any renewal or extension\nthereof, or upon earlier payment in full of the total amount specified\ntherein, without additional charge therefore. The board of education\nshall approve any such agreement.\n 2. a. Any lease, sublease or other agreement entered into between the\nfund and the owner or developer of a proposed combined occupancy\nstructure shall provide for payment to the fund of the fair market value\nof such easements, space rights, air rights or other fee or leasehold\ninterests as are to be held or retained by such owner or developer or\nhis successor in interest under the terms of such agreement; provided\nthat where subsidized housing, as hereinafter defined, is intended to be\nbuilt in or on said easements, space rights, air rights or other fee or\nleasehold interests, the appropriate document may provide, in the\ndiscretion of the fund, for payment to the fund of less than the fair\nmarket value of such easements, space rights, air rights, or other fee\nor leasehold interests. As used in this paragraph, subsidized housing\nshall mean dwelling units aided by one or more federal, state or\nmunicipal programs designed to provide low or moderate income housing.\n b. Whenever the easements, space rights, air rights or other fee or\nleasehold interests held or retained by such owner or developer, if\nother than the New York city housing authority, and/or the non-school\nimprovements constructed or erected therein or thereon, shall be exempt\nfrom real property taxes pursuant to the provisions of section four\nhundred sixty-eight of this article, such lease, sublease or other\nagreement shall also provide for the payment to the fund of annual or\nother periodic amounts equal to the amount of real property taxes that\nwould otherwise have been paid or payable with respect to such\neasements, space rights, air rights or other fee or leasehold interests,\nand with respect to the non-school improvements constructed or erected\ntherein or thereon, over the term of such lease, sublease or other\nagreement. Where such lease, sublease, or other agreement provides for\nthe annual or other periodic payment of a fixed sum or sums as a tax\nequivalency payment during the term of such a lease, sublease, or other\nagreement, or any part thereof, the sum or sums to be paid may be either\ngreater or less than the actual amount of real property taxes that would\notherwise have been paid or payable with respect to the said property\nrights affected, if said property rights were not exempt, provided the\ncity shall approve such provision. In the event provision is made for\nthe annual or other periodic payment of a fixed sum or sums as a tax\nequivalency payment, such lease, sublease, or other agreement may\nfurther provide, upon approval by the city of such provision, that (i)\nsuch lessee, sublessee or vendee shall be required to pay such fixed sum\nor sums to the fund during the term of such lease, sublease, or other\nagreement regardless of whether the said property rights are exempt from\nreal property taxes, (ii) if for any year during such term an ad valorem\ntax shall be levied and paid by such lessee, sublessee or vendee on the\nsaid property rights, such lessee, sublessee or vendee shall receive a\ncredit against any taxes thereafter payable by it to the city the amount\nof such ad valorem tax paid by it, and (iii) in the event during such\nterm a substitute tax, in place either in whole or in part of a real\nproperty tax on said property rights, is levied and paid by such lessee,\nsublessee or vendee, such lessee, sublessee, or vendee shall receive a\ncredit against any taxes thereafter payable by it to the city for the\namount of such substitute tax paid by it.\n c. (1) Notwithstanding the provisions of section fifty-two of the\npublic housing law, whenever the New York city housing authority is such\nowner or developer, such lease, sublease or other agreement shall also\nprovide for the payment by such authority to the fund or the city of\nsuch amount, for any year or years, as payment in lieu of real property\ntaxes on the non-school portion constituting a project, as defined by\nthe public housing law, as may be agreed upon among the fund, the city\nand the authority, and as may be approved by the commissioner of the\nstate division of housing and community renewal if such project is a\nstate project as defined in the public housing law, and by the federal\ngovernment if such project is a federal project as defined in the public\nhousing law.\n (2) For any of the purposes of the public housing law, including,\nspecifically, section seventy-three thereof, and notwithstanding any\nother provision in the public housing law for establishing the amount of\ntaxes paid or payable with respect to a project for such year and the\nresulting amount of tax exemption, in computing the amount of tax\nexemption granted to such non-school portion constituting a project, as\ndefined by the public housing law, the amount of such payment in lieu of\ntaxes paid or payable with respect thereto for any year shall be deemed\nto be the amount of taxes paid or payable for such year.\n 3. Any lease, sublease or other agreement entered into between the\nfund and the city of New York or the board of education pursuant to\nsection four hundred fifty-four of this chapter shall provide for (i)\nthe construction, acquisition, reconstruction, rehabilitation or\nimprovement of one or more combined occupancy structures and (ii) the\nleasing or subleasing of the school portion of such structures to the\ncity or the board for a term not exceeding ninety-nine years, upon such\nterms and conditions as may be agreed upon.\n 4. Every lease, sublease or other agreement executed pursuant to this\narticle shall be subject to the approval of the commissioner of general\nservices and the director of management and budget with respect to all\nrentals or other payments to be made thereunder by the city of New York,\nthe board of education or by the owner or developer of a combined\noccupancy structure and shall contain a clause that any agreement of the\ncity of New York thereunder shall be deemed executory to the extent of\nthe moneys available to the city therefor and no liability on account\nthereof shall be incurred by the city beyond the moneys available for\nthe purpose thereof.\n