Relates to approval of leases

BILL NUMBER:S5675B

Title of bill

An act to amend the education law, in relation to approval of leases

Summary of provisions

The City proposes to amend section 2554(6) of the Education Law, which requires that the State Commissioner of Education approve a lease prior to its execution, as a condition of receiving the State's contribution to the cost of a leased instructional space. The bill will permit the Commissioner to approve a lease submitted for approval after execution upon a showing of good cause for the delay.

Reasons for support

Ordinarily, New York City's Department of Education (DOE) submits a signed lease resolution to the State Education Department (SED) in time to comply with the requirement for the Commissioner's approval prior to execution. However, in rare instances - due to a project's timetable and the need to ensure that buildings open by September - the DOE must execute a lease on the same day as the resolution. In those cases, DOE does not have an opportunity to notify SED in time for prior approval. In addition, negotiations to renew leases for already occupied space often involve lengthy discussions with the landlord, with delays beyond the control of the DOE; this can result in retroactive renewal leases. These instances prevent the DOE from receiving state funds to which it would otherwise be entitled.

The purpose of the proposed change is to enable SED to provide aid for leases in these circumstances, where the Commissioner finds that there is good cause for the failure to submit a lease for approval prior to execution.

Local fiscal impact

Estimated savings to NYC of $3 million.

Effective date

This act shall take effect April 1, 2013.