Proceedings to Acquire.

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§ 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.


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