Section 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.