N.Y. Comp. Codes R. & Regs. tit. 9 § 1646-4.1

Current through Register Vol. 46, No. 25, June 18, 2024

Section 1646-4.1 - Acquisition by private purchase

(a) The procedure for acquiring land requires the prior written approval of the option or contract for the purchase of each parcel or for the purchase of each interest therein and of the consideration to be paid therefor. Such approval will ordinarily be endorsed by the division on the signature sheet of the option or contract prior to the execution thereof by the local agency.

(b) Commitments for the acquisition of land by private purchase will not be reflected in the accounts until the accounts payable voucher authorizing the drawing of a check is prepared. Such commitments will automatically be reflected in column 8, estimated future commitments, of form DH-213, the Analysis of Expenditures--Budget Control Statement. Accounts payable vouchers representing costs of land acquired by private purchase which are chargeable to account 1440.1, Land Purchase Price, shall be supported by a closing statement prepared on the Real Estate Settlement Record, form DH-349, (see Exhibit 9 of Appendix S-11), the attorney's certificate of title and the letter of the division transmitting the approved option or contract. The approved option or contract shall be kept in a separate file. One accounts payable voucher may be prepared for the total purchase price of each parcel of land, or for several parcels under one option or contract and as many checks as may be required to liquidate the items constituting the distribution of the purchase price, as for owner's equities, mortgages, taxes, etc. may be drawn and appropriately recorded on the accounts payable voucher.

(c) In the event that the local agency acquires a mortgage on a parcel prior to acquiring the owner's equity, it is recommended that the consideration for the mortgage be charged, temporarily, to a mortgages receivable account, using one of the numbers in the 1120 group of accounts not otherwise assigned. The mortgages receivable account should be supported by a subsidiary ledger. Such mortgages are held alive until the mortgages are merged into the fee and the use of the mortgages receivable account and subsidiary ledger will more readily permit control over the billing of interest and amortization to the owners of the equities. When the owner's equity is subsequently acquired and the mortgage merged into the fee, the consideration for the mortgage, less any amortization received in the meanwhile, is transferred by journal voucher, to account 1440.1, Land Purchase Price. Interest on such mortgage held alive shall be credited to account 1420.2, Interest Income.

(d) Under certain circumstances, all or part of a cost chargeable to account 1440.1, Land Purchase Price, may be deposited by the local agency in escrow. Such disbursements shall be charged to account 1115, Special Deposits, pending the release of the money from escrow.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1646-4.1