§ 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\nuse of land held for charitable purposes. 1. Where land is held, whether\nor not in trust, for benevolent, charitable, educational, public or\nreligious purposes and the use of such land is restricted to such\npurpose or to a particular application of or means of carrying out such\npurpose by a special limitation or condition subsequent created in the\nconveyance or devise under which the land is so held, or by an agreement\nto convey, reconvey or surrender the land or the estate so held upon a\ncontingency relating to its use, an action may be brought in the supreme\ncourt to obtain relief from such restriction as provided in this\nsection.\n 2. No action for the relief provided in this section shall be\ncommenced until the expiration of two years from the creation of the\nspecial limitation or condition subsequent, or the making of the\nagreement. The attorney-general shall be a party to such action.\n 3. In determining whether relief shall be granted, and the nature of\nsuch relief, the court shall consider and shall make findings with\nrespect to the following:\n (a) whether the primary purpose of the special limitation, condition\nsubsequent or agreement to convey, reconvey or surrender was to restrict\nthe use of the land;\n (b) whether the purpose of the restriction was to ensure that the\nsubstantial value of the land or of the estate subject to the special\nlimitation, condition subsequent or agreement, rather than the land\nitself, or such estate itself, be devoted to and employed for a\nbenevolent, charitable, educational, public or religious purpose.\n If the findings with respect to (a) and (b) are such as to make the\nfollowing matters relevant or appropriate for consideration, the court\nshall also consider and make findings with respect to the following:\n (c) whether the existence of the restriction is substantially impeding\nthe owner of the land, or of the estate subject to the special\nlimitation, condition subsequent or agreement, in the furtherance of the\nbenevolent, charitable, educational, public or religious purposes for\nwhich the land is held;\n (d) whether the person or persons who would have a right of entry,\npossessory estate resulting from the occurrence of a reverter, or right\nto conveyance, reconveyance or surrender of the land or estate in the\nevent of breach of the restriction at the time of the action will suffer\nsubstantial damage by reason of extinguishment or modification of the\nrestriction, and, in such event, whether damages or restitution of the\nland, or its value, in whole or in part, should be awarded to such\nperson or persons.\n 4. The judgment of the court may include, in the discretion of the\ncourt, an adjudication (a) that the restriction is discharged in whole\nor in part, or that its tenor is modified as provided in the judgment;\n(b) that the holder of the land or estate therein subject to the\nrestriction be authorized or directed to convey, lease, mortgage or\notherwise dispose of the land or estate therein free of the restriction\nand that the purchaser under such disposition shall take free of the\nrestriction; (c) directing the use to which the avails of any such\ndisposition shall be put; (d) declaring the interests that the owners of\nthe possibility of reverter or right of entry, or persons having an\ninterest pursuant to the agreement, shall have in any property paid for\nin whole or in part with the proceeds of the disposition; (e) awarding\ndamages for such injury as a party to the action may sustain by reason\nof extinguishment or modification of the restriction. The judgment may\ninclude such other provisions as will in the opinion of the court\nfurther the benevolent, charitable, educational, public or religious\npurposes for which the land is held and such other provisions as equity\nmay require.\n 5. This section shall apply to a special limitation or condition\nsubsequent created or agreement made either before or after September 1,\n1958, except that it shall not apply (a) where a right of entry or right\nto a conveyance, reconveyance or surrender of the property has accrued\nor a reverter has occurred prior to that date, or (b) where the\nconveyance creating the restriction was made by or the agreement\ncreating the restriction was made with the United States, the state of\nNew York or any governmental unit, subdivision or agency of the United\nStates or the state of New York.\n