N.Y. Private Housing Finance Law § 501: Proceedings to acquire

§ 501. Proceedings to acquire. 1. A housing company or a

limited-profit housing company electing to acquire through a

municipality, may petition the municipality to institute proceedings

under any applicable general, special or local law, to acquire property

described in the petition for a project. The resolution granting the

petition shall set forth the amount to be paid by the housing company or

limited-profit housing company to the municipality for such property or

in lieu thereof that the housing company or limited-profit housing

company shall pay to the municipality all sums expended or required to

be expended by the municipality in the acquisition thereof, and the time

of payment and manner of securing payment thereof, and may require that

the municipality shall receive, before proceeding with the acquisition

of such property, such assurances as to payment or reimbursement by the

housing company or limited-profit housing company or otherwise as the

municipality may deem advisable. Upon the passage of a resolution by the

local legislative body of the municipality granting the petition, the

housing company or limited-profit housing company shall cause two copies

of surveys or maps of the property described in the petition to be made,

one of which shall be filed in the office of the housing company or

limited-profit housing company, one in the office of the corporation

counsel or chief law officer of the municipality. The filing of such

copies of surveys or maps shall be conclusive evidence of the acceptance

by the housing company or limited-profit housing company of the terms

and conditions of such resolution. The municipality may proceed in

accordance with the provisions of the eminent domain procedure law. When

title to the property shall have vested in the municipality, it shall

convey the same to the housing company or limited-profit housing company

upon payment by the housing company or limited-profit housing company of

the sums and the giving of the security required by the resolution

granting the petition. As soon as title shall have vested in the

municipality, the housing company or limited-profit housing company may,

upon the authorization of the mayor, enter upon the property taken, take

over and dispose of existing improvements, and carry out the terms of

the project with respect thereto. Whenever in connection with

acquisition proceedings, requirement is made in any applicable general,

special or local law for the performance of an act by a department or

officer of the municipality, it shall be regarded for the purposes of

this section as compliance therewith if with the approval of the mayor

such act is performed by the housing company or limited-profit housing

company or by persons specially designated by it.

2. In any proceedings for the assessment of compensation and damages

for property taken or to be taken by condemnation by or for a housing

company or limited-profit housing company, the following provisions

shall be applicable:

(a) Evidence of the price and other terms upon any sale or the rent

received or reserved, whichever is less, and other terms upon any

option, lease or tenancy relating to any of the property taken or to be

taken or to any similar property in the vicinity when the option, sale

or lease was given, occurred or the tenancy existed, within a reasonable

time of the trial, shall be admissible on direct examination. At any

stage of the proceeding, the court or tribunal may require such prior

notice to be given of an intention to introduce evidence as to the sale,

option, leasing or tenancy of property other than the property directly

involved in the proceeding and of particulars relating thereto as it may

deem necessary to prevent surprise.

(b) The deposition of any person, whether or not a party, may be taken

in the manner provided by article thirty-one of the civil practice law

and rules, and the provisions of this section. Such deposition may be

taken upon any question or issue in the proceeding, including the facts

as to any sale, option, lease or tenancy admissible in evidence pursuant

to this subdivision. The deposition may be taken at the instance of the

housing company or limited-profit housing company, the municipality or

of any owner or at the direction of the court, at any time during the

pendency of the action or proceeding. At least five days' notice, or if

service is through the mails, at least eight days' notice, shall be

given of the taking of the testimony, if on the part of an owner, to the

housing company or limited-profit housing company and to all other

owners who have appeared in the proceeding; if by the housing company or

limited-profit housing company or a municipality, to all owners who have

appeared in the proceeding.

(c) Any time during the pendency of such action or proceedings, a

housing company or limited-profit housing company, municipality or an

owner may apply to the court for an order directing an owner or the

housing company or limited-profit housing company or the municipality,

as the case may be, to show cause why further proceedings should not be

expedited, and the court may upon such application make an order

requiring that the hearings proceed and that any other steps be taken

with all possible expedition.

(d) For the purposes of this article, the award of compensation shall

not be increased by reason of any increase in the value of the property

caused by the clearance, reconstruction or proposed clearance or

reconstruction for the purposes of this chapter of the property or of

the area in which the property is situated. No allowance shall be made

for improvements begun on property after notice to the owner of such

property of the institution of the proceedings to condemn such property.

(e) Evidence shall be admissible bearing upon the insanitary, unsafe

or substandard condition of the premises, or the illegal use thereof, or

the enhancement of rentals from such illegal use, and such evidence may

be considered in fixing the compensation to be paid, notwithstanding

that no steps to remedy or abate such conditions have been taken by the

department or officers having jurisdiction. If a violation order is on

file against the premises in any such department, it shall constitute

prima facie evidence of the existence of the condition specified in such

order.

(f) If any of the property included within the project is devoted to a

public use, it may nevertheless be acquired provided that no property

belonging to the municipality or to any government may be acquired

without its consent, and no property belonging to a public utility

corporation may be acquired without the approval of the commission or

other officer or tribunal having regulatory power over such corporation.

(g) Upon the trial, evidence of the price and other terms upon a sale

or assignment or of a contract for the sale or assignment of a mortgage,

award, proposed award, transfer of a tax lien or lien of a judgment

relating to property taken, shall be relevant, material and competent,

upon the issue of value or damage and shall be admissible on direct

examination.

(h) Upon the trial a statement, affidavit, deposition, report,

transcript of testimony in an action or proceeding, or appraisal made or

given by any owner or prior owner of the premises taken, or by any

person on his behalf, to any court, governmental bureau, department or

agency respecting the value of the property for tax purposes, shall be

relevant, material and competent upon the issue of value or damage and

shall be admissible on direct examination.

(i) The term "owner," as used in this section, shall include a person

having an estate, interest or easement in the property to be acquired or

a lien, charge or encumbrance thereon.

3. The term "housing company", as used in this section, shall include

a housing development fund company organized pursuant to the provisions

of article eleven of this chapter.