City Business Improvement Districts

NYC Admin. Code tit. 25, ch. 4

in effect

NYC Admin. Code § 25-401 Authorization for the establishment of city business improvement districts.

§ 25-401 Authorization for the establishment of city business improvement districts. Pursuant to the provisions of section nine hundred eighty of the general municipal law, business improvement districts shall be established and extended as hereinafter provided.

NYC Admin. Code § 25-402 Definitions.

§ 25-402 Definitions. As used in this chapter: (a) "Average full valuation of taxable real property" means the valuation obtained by taking the assessed valuation of taxable real property in the district as it appears upon the last completed and four preceding assessment rolls of the city and dividing each by the applicable state equalization rate as determined by the state board of equalization and assessment pursuant to article twelve of the real property tax law for each of the assessment rolls and dividing the sum of the quotients thus obtained by five. (b) "District" means a business improvement district established pursuant to this chapter. (c) "District charge" means a levy imposed on behalf of a district as provided in the district plan. (d) "District management association" means the association established pursuant to section 25-414 of this chapter. (e) "District plan" or "plan" means a proposal as defined in section 25-405 of this chapter. (f) "Owner" means owner of record. (g) "Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

NYC Admin. Code § 25-403 Contents of the district plan.

§ 25-403 Contents of the district plan. The district plan shall contain the following; (a) a map of the district; (b) the written report or reports of the city council containing: (l) a description of the boundaries of the district proposed for establishment or extension in a manner sufficient to identify the lands included; (2) a description of the present and proposed uses of such lands; (3) the improvements proposed and the maximum cost thereof; (4) the total annual amount proposed to be expended for improvements, maintenance and operation; (5) the proposed source or sources of financing; (6) the proposed time for implementation and completion of the district plan; (7) any proposed rules and regulations to be applicable to the district; (8) a list of the properties to be benefited, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property, in proportion to the benefit received by such property, to defray the cost thereof, including operation and maintenance. Notwithstanding any inconsistent provision of section 25-407 of this chapter, the plan may provide that all or any class or category of real property which is exempt by law from real property taxation and which would not benefit from the establishment or extension of the district may nevertheless be included within the boundaries of the district but such property shall not be subject to any district charge; (9) a statement identifying the district management association for the district; and (10) any other item or matter required to be incorporated therein by the city council. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-404 Powers of the city council.

§ 25-404 Powers of the city council. Upon establishment of a district pursuant to the provisions of this chapter, the city council shall have authority to exercise the following powers with respect to such district, subject to the provisions of this chapter: (a) To provide for district improvements located on or within municipally or district owned or leased property which will restore or promote business activity in the district: (1) construction and installation of landscaping, planting, and park areas; (2) construction of lighting and heating facilities; (3) construction of physically aesthetic and decorative safety fixtures, equipment and facilities; (4) construction of improvements to enhance security of persons and property within the district; (5) construction of pedestrian overpasses, underpasses and connections between buildings; (6) closing, opening, widening or narrowing of existing streets; (7) construction of ramps, sidewalks, plazas, and pedestrian malls; (8) rehabilitation or removal of existing structures as required; (9) removal and relocation of utilities and vaults as required; (10) construction of parking lot and parking garage facilities; and (11) construction of fixtures, equipment, facilities and appurtenances as may enhance the movement, convenience and enjoyment of the public and be of economic benefit to surrounding properties such as: bus stop shelters; benches and street furniture; booths, kiosks, display cases, and exhibits; signs; receptacles; canopies; pedestrian shelters and fountains. (b) To provide for the operation and maintenance of any district improvement; (c) To provide for additional maintenance or other additional services required for the enjoyment and protection of the public and the promotion and enhancement of the district whether or not in conjunction with improvements authorized by this section, including: (1) enhanced sanitation services; (2) services promoting and advertising activities within the district; (3) marketing education for businesses within the district; (4) decorations and lighting for seasonal and holiday purposes; and (5) services to enhance the security of persons and property within the district. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-405 District plan.

§ 25-405 District plan. (a) The mayor may provide for the preparation of a district plan, upon his or her own initiative, or at the request of an individual or agency designated by him or her, or at the request of the city council, or upon the written petition, signed and acknowledged, of (1) the owners of at least fifty-one percent of the assessed valuation of all the taxable real property within the boundaries of the district proposed for establishment or extension, as shown upon the latest completed assessment roll of the city, and (2) at least fifty-one percent of the owners of real property within the area included in the district proposed for establishment or extension. (b) The establishment or extension of a district shall be based upon the district plan filed in the office of the city clerk, except as provided in subdivision (c) of this section. (c) The district plan shall first be submitted to the city planning commission which shall forward a copy within five days to the city council and to the council member or members representing the council district or districts in which the proposed district is located, to the community board or boards for the community district or districts in which the proposed district is located, and to the respective borough board and borough president, if the plan involves properties located in two or more community districts. Each community board shall notify the public of the proposed plan in accordance with the requirements established by the city planning commission, and may conduct a public hearing and submit a written recommendation to the city planning commission not later than thirty days after receipt of the plan. The city planning commission shall review the plan and recommendations, and, after a public hearing, prepare a report. The city planning commission shall submit its report to the mayor, to the affected borough president, to the city council and to the council member or members representing the council district or districts in which the proposed district is located, together with copies of any recommendation of a community board, within sixty days from the date of expiration of the community board's period for reviewing the plan and submitting recommendations. This report shall certify the city planning commission's unqualified approval, disapproval or qualified approval with recommendations for modifications of the district plan. A copy of this report together with the original district plan shall be transmitted for filing with the city clerk. In the event the city planning commission shall fail to submit its report within ninety-five days of receipt of the original district plan, it shall be required to immediately transmit the original plan to the city clerk for filing and no report of the city planning commission shall be necessary. (d) All district plans shall conform with the requirements of this chapter. The mayor may determine that the plan or any part of the plan, shall be prepared by, or under the supervision of city officers and employees to be designated by the mayor, or by persons or firms to be employed for that purpose. Except as otherwise provided in this chapter, the expense incurred for the preparation of the plan or part of the plan shall be a city charge. (e) If the city shall thereafter establish or extend the district or provide the improvements or additional services or contract for the required services, the expense incurred by the city for the preparation of the plan or any part of the plan shall be deemed to be part of the cost of the improvement, or the rendering of additional services, and the city shall be reimbursed in the amount paid, or the portion of that amount which the city council, at a public hearing held pursuant to this chapter, shall allocate against the district. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-406 Notice and hearing

§ 25-406 Notice and hearing (a) After the filing of the district plan in the office of the city clerk, the city council may adopt a resolution and shall enter the same in the minutes of its proceedings. This resolution shall contain a copy of the district plan, any report of the city planning commission or board, the fact that a district plan is on file in the city clerk's office for public inspection and the time when and the place where the city council will meet and hold a public hearing to hear all persons interested in the subject thereof. (b) The resolution shall also contain a statement that any owner of real property, deemed benefited and therefore within the district, objecting to the plan must file an objection at the office of the city clerk within thirty days of the conclusion of the hearing on forms made available by the clerk, and, further, that if (1) owners of at least fifty-one percent of the assessed valuation of all the benefited real property situated within the boundaries of the district proposed for establishment or extension, as shown upon the latest completed assessment roll of the city, or (2) at least fifty-one percent of the owners of benefited real property within the area included in the district proposed for establishment or extension, so file their objections, the district will not be established or extended. (c) The city council shall cause a copy of the resolution or a summary thereof to be published at least once in the City Record or a newspaper in general circulation in the city, the first publication to be not less than ten nor more than thirty days before the day set for the hearing required by this section. In addition, not less than ten nor more than thirty days before the date set for the hearing, the city council shall cause a copy of the resolution or a summary thereof to be mailed to each owner of real property within the proposed district at the address shown on the latest city assessment roll, to such other persons as are registered with the city to receive tax bills concerning real property within the proposed district, and to the tenants of each building within the proposed district. If the city council publishes or mails a summary of the resolution, such summary shall include the business address of the city clerk, a statement that copies of the resolution shall be made available free of charge to the public, the improvements proposed and the maximum cost thereof, the total annual amount proposed to be expended for improvements, maintenance and operation, and a statement indicating the rights of owners to object pursuant to subdivision (b) of this section. (d) The resolution may further state the place, other than the city clerk's office, where the district plan may be inspected in advance of the hearing, if the city council determines that, in the public interest, any additional place of inspection is necessary or desirable. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-407 Establishment or extension of the district.

§ 25-407 Establishment or extension of the district. (a) Not earlier than thirty days after the conclusion of the last day of the public hearing held pursuant to section 25-406 of this chapter, the city council shall determine: (1) whether the notice of hearing for all hearings required to be held was published and mailed as required by law and is otherwise sufficient; (2) except as otherwise provided in section 25-403 of this chapter, whether all the real property within the boundaries of the proposed district or extension will benefit from the establishment or extension of the district; (3) whether all the real property benefited is included within the limits of the proposed district or extension; and (4) whether the establishment or extension of the district is in the public interest. (b) (1) If the city council shall determine the question of paragraph four of subdivision (a) of this section in the negative, or if the requisite number of owners shall have filed their objections as provided in section 25-406 of this chapter, the city council shall adopt a resolution disapproving the establishment or extension of the district, stating the reasons for its determination and enter the same in the minutes of its proceedings. Thereafter no plan for the establishment or extension of a district to include any part of the property proposed to be included in the disapproved district may be prepared as provided in section 25-405 of this chapter until the expiration of at least one year from the date of disapproval. (2) If the city council shall find that notice was incorrectly or insufficiently given or that, except as otherwise provided in section 25-403 of this chapter, any part or portion of the real property within the boundaries of the proposed district or extension is not benefited thereby or that certain property benefited thereby has not been included therein, it shall call a further hearing at a definite place and time not less than ten nor more than thirty days after this determination. In the resolution calling such hearing, it shall specify the necessary changes, if any, to the boundaries of the proposed district or extension to be made in order that, except as otherwise provided in section 25-403 of this chapter, all of the real property and only that real property as is deemed benefited shall be included within the boundaries of the proposed district or extension. Such a further hearing shall also be required in the event that the city council proposes to amend the district plan to reduce improvements or services or provide additional improvements or services not included in the original plan prior to the establishment of the district. Notice of the further hearing shall be published and mailed in the manner provided in section 25-406 of this chapter, except that, where boundaries are to be altered, this notice shall also specify the manner in which it is proposed to alter the boundaries of the proposed district or extension. The further hearing shall be conducted in the same manner as the original hearing. (c) If and when the city council shall determine in the affirmative all of the questions set forth in subdivision (a) of this section, and provided that the requisite number of owners shall not have objected as provided in section 25-406 of this chapter, it may adopt a local law approving the establishment or extension of the district as the boundaries shall be finally determined and the construction of the improvement or providing of the service in the district. Such local law shall become effective only upon compliance with section 25-408 of this chapter. (d) Upon the recommendation of the district management association and after a public hearing, the city council may adopt a local law at any time prior to or after the establishment of a district to change the method of assessment as set forth in the plan. Notice of such public hearing and a description of the proposed change shall be given in the manner set forth in section 25-406 of this chapter. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-408 Review by the state comptroller.

§ 25-408 Review by the state comptroller. (a) The state comptroller shall review as provided in this section: (1) the establishment or extension of a district; and (2) the amendment of a district plan pursuant to subdivision (c) of section 25-410 of this chapter. (b) Within twenty days after the adoption of a local law by the city council pursuant to section 25-407 or subdivision (c) of section 25-410 of this chapter the mayor shall forward the following information to the state comptroller at Albany, New York: (1) an itemized statement of the then outstanding indebtedness of the city for all purposes, as evidenced by bonds, bond anticipation notes, capital notes, deferred payment notes and budget notes; the amount of budgetary appropriations for the payment of any outstanding indebtedness, whether or not appropriations have been realized as cash; the amount of indebtedness proposed to be contracted for the improvement, and the amounts, purposes and probable date of issuance of any bonds, bond anticipation notes, capital notes, deferred payments notes and budget notes which the city has authorized to be issued but which in fact have not been issued to date; (2) a statement of the total assessed valuation of the taxable real property situated in the proposed district or extension of a district, as shown on the latest completed and four preceding assessment rolls of the city and of the amount of city real property taxes levied against such property in the preceding fiscal year; (3) a statement of the average full valuation of the taxable real property of the city determined in accordance with the provisions of paragraph seven-a of section 2.00 of the local finance law; and (4) a statement, the form of which shall be determined by the state comptroller, attesting that the provisions of this chapter have been met, signed and verified by the mayor. (c) The state comptroller shall review the information submitted pursuant to paragraphs one, two and three of subdivision (b) above to determine that the tax and debt limitations provided in section 25-412 of this chapter will not be exceeded by the establishment or extension of the district. (d) The state comptroller shall notify the city of his or her determination within sixty days of the receipt of the items specified in subdivision (b) of this section. Unless the state comptroller determines within such time that the tax and debt limitations provided in section 25-412 of this chapter will be exceeded by the establishment or extension of the district or that the statement required by paragraph four of subdivision (b) of this section does not comply with the provisions of such paragraph, the city may proceed with the establishment or extension of the district upon receipt of the notice from the state comptroller of his or her determination. (e) Upon the city's compliance with any other requirements established by law, the local law adopted pursuant to section 25-407 of this chapter shall become effective. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-409 Publication; filing; judicial review.

§ 25-409 Publication; filing; judicial review. (a) The city clerk shall cause a certified copy of the local law adopted pursuant to the provisions of this chapter establishing or extending any district, or increasing the maximum total amount proposed to be expended for the improvement in any district or extension, or changing the method of assessment, or authorizing the district to incur debt to provide for additional improvements or services within the district, to be duly recorded in the city clerk's office within ten days after such local law becomes effective. When so recorded this local law shall be presumptive evidence of the regularity of the proceedings for the establishment or extension of the district, of the proceedings instituted for the construction of any improvement and of all other actions taken in relation to it. (b) Within ten days after the local law becomes effective, the city clerk shall, in addition to any other filing required by law, cause a certified copy thereof to be filed in the office of the state comptroller at Albany, New York, and within two weeks thereafter shall cause a copy of the local law or a summary thereof to be published at least once in the City Record or a newspaper of general circulation in the city. (c) This local law shall be final and conclusive unless a proceeding to review is commenced in accordance with this subdivision. Any person aggrieved by any local law adopted pursuant to this chapter may seek judicial review of the local law in the manner provided by article seventy-eight of the civil practice law and rules, provided the proceeding is commenced within thirty days from the date of the publication of the copy or summary of the local law pursuant to subdivision (b) of this section. No review shall be had unless the petitioner shall give an undertaking approved by the supreme court, or a justice thereof, as to form, amount and sufficiency of sureties, that, in the event of failure to modify the local law, he or she will pay to the city all costs and expenses as are incurred by it on account of the proceedings, as shall be determined by the court. In the event that upon this review there shall be any modification by the court of the local law, the court shall direct the modification by judgment which shall be final and conclusive, and the city clerk shall cause the judgment to be recorded and filed in the same places and manner as was the local law which was modified. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-410 Amendments to the district plan.

§ 25-410 Amendments to the district plan. (a) At any time after the establishment or extension of a district pursuant to the provisions of this chapter, the district plan upon which the establishment or extension was based, may, upon the recommendation of the district management association, be amended by the city council after compliance with the procedures set forth in this section. (b) Amendments to the district plan which provide for additional improvements or services or any change in the method of assessment upon which the district charge is based, or an increase only in the amount to be expended annually for improvements, services, maintenance and operation may be adopted by local law, provided that the city council shall, after a public hearing, determine that it is in the public interest to authorize the additional improvements, services or increase in the maximum annual amount and that the tax and debt limits prescribed in section 25-412 of this chapter will not be exceeded. The city council shall give notice of the hearing by publication of a notice in at least one newspaper having general circulation in the district specifying the time when and the place where the hearing will be held and stating the increase proposed in the maximum amount to be expended annually. This notice shall be published once at least ten days prior to the date specified for the hearing. (c) Amendments to the district plan which provide for the district to incur indebtedness in order to provide for additional improvements or which provide for an increase in the total maximum amount to be expended for improvements in the district, may be adopted by local law, provided that the city council shall, after a public hearing, determine that it is in the public interest to authorize the district to incur indebtedness to provide for additional improvements or to increase the maximum total amount to be expended for improvements in the district and that the tax and debt limits prescribed in section 25-412 of this chapter will not be exceeded. Notice of the hearing shall be published and mailed in the manner provided in section 25-406 of this chapter. The local law adopted pursuant to this subdivision shall not be effective until reviewed by the state comptroller in accordance with section 25-408 of this chapter. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-411 Expense of the district.

§ 25-411 Expense of the district. (a) The expense incurred in the construction or operation of any improvement or provision of additional services in a district pursuant to this chapter shall be financed in accordance with the district plan upon which the establishment or extension of the district was based. Services for which district property owners are charged pursuant to the plan must be in addition to or an enhancement of those provided by the city prior to the district's establishment. The expense and cost apportioned to benefited real property in accordance with the plan shall be a charge upon each benefited parcel of real property within the district. (b) The charge upon benefited real property pursuant to this chapter shall be imposed as provided in the district plan. If the formula includes an ad valorem component, this component shall be determined by the assessed value of each parcel as entered on the latest completed assessment roll used by the city for the levy of general city taxes. The charge shall be determined, levied and collected in the same manner, at the same time and by the same officers, as general city taxes are levied and collected. (c) When a district has been established pursuant to this chapter, the city may, for the purpose of providing funds for making capital improvements within such district, issue and sell bonds or other municipal obligations as provided in the local finance law and other applicable laws and statutes. Principal and interest payments on these bonds or other municipal obligations may be made in whole or in part from the proceeds of charges imposed upon benefited real property within the district.

NYC Admin. Code § 25-412 Tax and debt limitations.

§ 25-412 Tax and debt limitations. (a) The aggregate amount of outstanding indebtedness that is incurred to provide funds for capital improvements pursuant to this chapter shall be chargeable against the city's constitutional debt limit and may not exceed ten percent of the amount allowable under that limit. The aggregate amount of outstanding indebtedness that is incurred to provide funds for capital improvements pursuant to this chapter and that is chargeable against the property within the district may not exceed seven percent of the average full valuation of taxable real property in the district. (b) The district charge, exclusive of debt service, levied in a given year against real property in a district may not exceed twenty percent of the total general city taxes levied in that year against the taxable real property in the district. The district charge so levied shall be included in the total amount, if any, that the city is permitted by law to raise in that year by a tax on real property.

NYC Admin. Code § 25-413 Expenditure of district funds.

§ 25-413 Expenditure of district funds. (a) The proceeds of any charge imposed pursuant to this chapter shall be held by the comptroller and shall be separately accounted for in the books and records of the city. None of the proceeds collected pursuant to this chapter shall be used for any purposes other than those set forth in the district plan. These funds may be paid out for district purposes in accordance with the general procedures for payment of other city expenditures. (b) All contracts for improvements, goods or services to be provided in the district shall be subject to all applicable provisions of the law relating to the letting of contracts by the city.

NYC Admin. Code § 25-414 District management association.

§ 25-414 District management association. (a) There shall be a district management association for each district established pursuant to the provisions of this chapter (which shall pursuant to the not-for-profit corporation law have one or more classes of membership, voting or nonvoting) for the purpose of carrying out such activities as may be prescribed in the plan. Notwithstanding any inconsistent provision of paragraph (e) of section six hundred eleven of the not-for-profit corporation law, the certificate of incorporation or by-laws of such association shall provide for voting representation of owners of property and tenants within the district, and may provide that the votes of members who are property owners be weighted in proportion to the assessment levied or to be levied against the properties within the district, provided that in no case shall the total number of votes assigned to any one such member or to any number of such members under common ownership or control exceed thirty-three and one-third percent of the total number of votes which may be cast. (b) The board of directors of the association shall be composed of representatives of owners and tenants within the district, provided, however, that not less than a majority of its members shall represent owners and provided further that tenants of commercial space and dwelling units within the district shall also be represented on the board. The board shall include, in addition, four members, one member appointed by each of the following: the mayor, the comptroller, the borough president of the borough in which the district is located and the council member representing the council district in which the proposed district is located, or if the proposed district is located in more than one council district, by the speaker of the city council after consultation with the council members representing the council districts in which the proposed district is located. The additional four members shall serve as the incorporators of the association pursuant to the not-for-profit corporation law. The association may be incorporated prior to the effective date of any district established pursuant to this chapter. (c) In addition to such other powers as are conferred on it by law, the district management association may make recommendations to the city council with respect to any matter involving or relating to the district. (d) For such consideration as it may deem appropriate and consistent with the powers granted pursuant to section 25-404 of this chapter, the city council may license or grant to the district management association the right to undertake or permit commercial activities or other private uses of the streets or other parts of the district in which the city has any real property interest. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-415 Dissolution.

§ 25-415 Dissolution. (a) Any district established or extended pursuant to the provisions of this chapter, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be dissolved by local law of the city council upon its own motion or upon the written petition of (1) the owners of at least fifty-one percent or more of the total assessed valuation of all benefited real property included in the boundaries of the district and (2) at least fifty-one percent of the owners of benefited real property within the area included in the district. The city council shall request and consider the recommendations of the district management association concerning any proposed dissolution; provided that if the association has not submitted recommendations to the city council within sixty days after request therefor, the city council may adopt any such proposed dissolution without consider- ing such recommendations. In the event of dissolution, all assets of the district shall revert to the city. (b) A certified copy of the order of dissolution shall be filed with the state comptroller at Albany, New York. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-416 Existing districts.

§ 25-416 Existing districts. Any special improvement or assessment districts, or any business improvement districts established pursuant to article two-B of the general city law, or any districts having filed an application with the state comptroller as provided in such article prior to the effective date of chapter two hundred eight-two of the laws of nineteen hundred eighty-nine, shall be subject to the provisions of this chapter but shall not be required to comply with any provisions of this chapter which are contrary to or more restrictive than those under which the district was established or proposed to be established as evidenced by an application filed with the state comptroller prior to the effective date of chapter two hundred eight-two of the laws of nineteen hundred eighty-nine. Any reference to article two-B of the general city law or any section thereof in any state or local law, plan or agreement shall be deemed to be a reference to article nineteen-A of the general municipal law, or the appropriate provision of such article. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

NYC Admin. Code § 25-417 Severability.

§ 25-417 Severability. If any provision of any section of this chapter or the application thereof to any person or circumstance shall be adjudged invalid by any court of competent jurisdiction, such order or judgment shall be confined in its operation to the controversy in which it was rendered and shall not affect or invalidate the remainder of any provisions of any section of this chapter or the application of any part thereof to any other person or circumstance and to this end the provisions of each section of this chapter are hereby declared to be severable. Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1990/082.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCadmin/0-0-0-46097Fetched: 10/24/2026