Relates to sales of real property by not-for-profit corporations; requires repayment of certain funds, grants and tax abatements where real property is sold to a for-profit corporation or other private entity.

---

A4508-2011 Actions

• Jan 4, 2012: referred to corporations, authorities and commissions
• Feb 3, 2011: referred to corporations, authorities and commissions

A4508-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    4508

                         2011-2012 Regular Sessions

                            I N  ASSEMBLY

                              February 3, 2011
                                 ___________

  Introduced  by M. of A. TITONE, JAFFEE, TOBACCO -- Multi-Sponsored by --
    M. of A. BOYLAND, CUSICK, MAISEL, REILLY, WEISENBERG -- read once  and
    referred to the Committee on Corporations, Authorities and Commissions

  AN  ACT  to amend the not-for-profit corporation law, in relation to the
    sale of real property

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.    Section  509  of the not-for-profit corporation law, as
  amended by chapter 145 of the laws  of  1991,  is  amended  to  read  as
  follows:

  S 509. Purchase, sale, mortgage and lease of real property.
    1.  No purchase of real property shall be made by a corporation and no
  corporation shall sell, mortgage or lease real property, unless  author-
  ized  by  the  vote  of two-thirds of the entire board, provided that if
  there are twenty-one or more directors, the vote of a  majority  of  the
  entire board shall be sufficient.
    2.  (A)  A  CORPORATION  WHICH SELLS REAL PROPERTY TO ANY ENTITY OTHER
  THAN THE STATE OR ANOTHER NOT-FOR-PROFIT CORPORATION WHICH IS SUBJECT TO
  THE PROVISIONS OF THIS CHAPTER SHALL REIMBURSE THE STATE AND/OR A  MUNI-
  CIPALITY  FOR  ANY CAPITAL FUNDING, GRANTS OR FINANCING RECEIVED THROUGH
  THE STATE OR A MUNICIPAL AGENCY OR PUBLIC BENEFIT CORPORATION WITHIN THE
  TEN YEARS PRECEDING SUCH SALE.
    (B) A SALE OF REAL PROPERTY BY A  NOT-FOR-PROFIT  CORPORATION  TO  ANY
  ENTITY  OTHER THAN THE STATE OR ANOTHER NOT-FOR-PROFIT CORPORATION WHICH
  IS SUBJECT TO THE PROVISIONS OF THIS CHAPTER SHALL NOT  BE  EXEMPT  FROM
  THE  PAYMENT  OF THE REAL PROPERTY TRANSFER TAX IMPOSED BY SECTION FOUR-
  TEEN HUNDRED TWO OF THE TAX LAW.
    (C) ANY CORPORATION WHICH HAS RECEIVED A REAL PROPERTY  TAX  ABATEMENT
  WITHIN THE LAST TEN YEARS FOR REAL PROPERTY TAXES ASSESSED ON SUCH PROP-
  ERTY  SHALL  REIMBURSE THE TAXING AUTHORITY THE TOTAL AMOUNT OF ANY SUCH
  ABATEMENT UPON THE SALE OF SUCH REAL PROPERTY TO ANY ENTITY  OTHER  THAN
  THE  STATE OR ANOTHER NOT-FOR-PROFIT CORPORATION WHICH IS SUBJECT TO THE
  PROVISIONS OF THIS CHAPTER.
    S 2. This act shall take effect immediately.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02723-01-1