N.Y. Not-for-Profit Corporation Law § 1609: Disposition of property

§ 1609. Disposition of property.

(a) The land bank shall hold in its own name, or in the name of a

lawfully organized subsidiary, all real property acquired by the land

bank irrespective of the identity of the transferor of such property.

(a-1) This section governing the disposition of property by land banks

shall supersede section twenty-eight hundred ninety-seven of the public

authorities law in the governance of property dispositions by land banks

and, as such, notwithstanding any other general, special or local law to

the contrary, section twenty-eight hundred ninety-seven of the public

authorities law shall not apply to land banks.

(b) The land bank shall maintain and make available for public review

and inspection a complete inventory of all real property dispositions by

the land bank. Such inventory shall include a complete copy of the sales

contract including all terms and conditions including, but not limited

to, any form of compensation received by the land bank or any other

party which is not included within the sale price.

(c) The land bank shall determine and set forth in policies and

procedures of the board of directors the general terms and conditions

for consideration to be received by the land bank for the transfer of

real property and interests in real property, which consideration may

take the form of monetary payments and secured financial obligations,

covenants and conditions related to the present and future use of the

property, contractual commitments of the transferee, and such other

forms of consideration as are consistent with state and local law.

(d) The land bank may convey, exchange, sell, transfer, lease as

lessor, grant, release and demise, pledge any and all interests in, upon

or to real property of the land bank.

(e) A foreclosing governmental unit may, in its local law, resolution

or ordinance creating a land bank, or, in the case of multiple

foreclosing governmental units creating a single land bank in the

applicable intergovernmental cooperation agreement, establish a

hierarchical ranking of priorities for the use of real property conveyed

by a land bank including but not limited to:

(1) use for purely public spaces and places, including community

gardens;

(2) use for affordable housing;

(3) use for retail, commercial and industrial activities;

(4) use as wildlife conservation areas; and

(5) such other uses and in such hierarchical order as determined by

the foreclosing governmental unit or units.

(f) A foreclosing governmental unit may, in its local law, resolution

or ordinance creating a land bank, or, in the case of multiple

foreclosing governmental units creating a single land bank in the

applicable intergovernmental cooperation agreement, require that any

particular form of disposition of real property, or any disposition of

real property located within specified jurisdictions, be subject to

specified voting and approval requirements of the board of directors.

Except and unless restricted or constrained in this manner, the board of

directors may delegate to officers and employees the authority to enter

into and execute agreements, instruments of conveyance and all other

related documents pertaining to the conveyance of real property by the

land bank.

(g) All property dispositions shall be listed on the property

disposition inventory established pursuant to paragraph (b) of this

section within one week of disposition. Such records shall remain

available for public inspection in the property disposition inventory

indefinitely.

(h) Failure to comply with the requirements in paragraph (g) of this

section shall subject the land bank to a civil penalty of one hundred

dollars per violation up to a maximum of ten thousand dollars for each

parcel, recoverable in an action brought by the attorney general or

district attorney. The attorney general or district attorney may also

seek rescission of the real property transaction.