Extends provisions of law relating to the acquisition and disposition of real property by the metropolitan transportation authority

◆ The sponsor's argument

Why Leroy Comrie says this is needed

On June 24, 2019, Public Authorities Law § 1267, MTA's condemnation statute, was amended to specify an interest rate to be paid of six percent, effective for three years concluding in June 2022. This was extended in June 2022 for an additional 3 years. This rate is the same rate paid by municipal corporations, including the City of New York, under General Municipal Law § 3-a (2), which provides that " The rate of interest to be paid upon any judgment or accrued claim against the municipal corporation arising out of condemnation proceedings...shall not exceed six per centum." Absent an extension, MTA's rate of interest will revert to the statutory rate of nine per centum pursuant to Uncon- solidated Laws § 2501 (see also CPLR § 5004). When MTA condemns a property to support a capital project, it pays an estimate of fair market value. That value is often disputed by the prop- erty owner. When a settlement is eventually reached, the property owner is owed interest on the difference between the final settlement and the initial compensation. At an interest rate of 9%, property owners have an incentive to delay reaching a settlement. Thus, the current 6% interest rate expedites settlements and reduces MTA's costs in connection with its capital projects. Further, the 6% interest rate that MTA proposes to extend is well above current market interest rates and thus cannot be questioned on the grounds of equity. This bill requests a three-year extension in line with past extenders.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.