Governor Signs LaValle/Thiele Bill Defining Town Trustees as Municipal Corporations under Section 72-H of the General Municipal Law

Law permits local governments to transfer real property to town trustees at no or reduced cost

Governor Andrew Cuomo has signed a bill sponsored by Senator Ken LaValle and Assemblyman Fred W. Thiele, Jr. to include the Trustees of the Freeholders and Commonalty of the Town of Southampton, the Trustees of the Freeholders and Commonalty of the Town of East Hampton and the Trustees of the Freeholders and Commonalty of the Town of Southold as municipal corporations for the purposes of Section 72-h of the General Municipal Law.

Under Section 72-h of the General Municipal Law, local governments can transfer land to other local governments for public purposes at no or reduced cost. For example, the County of Suffolk often will transfer lands it obtains through tax foreclosure to other local governments for purposes such as affordable housing or open space, where the County has no use for such property, if the local government obtaining the property simply pays the back taxes. However, Section 72-h stated that land transfers could only be made to municipal corporations, which are defined as a County, Town, Village or Fire District.

Assemblyman Thiele stated, “The Trustees are clearly local elected government bodies. They will greatly benefit from the ability to receive land at no cost from the County or other local governments, to be placed under their stewardship.”

Senator Ken LaValle stated "This common sense legislation corrects an oversight in original law, making it easier for land to be transferred between local governments and thank the Governor for signing the legislation into law."

Eric Shultz, Southampton Town Trustees Board President noted, “The passage of this bill not only allows us to acquire sensitive wetland parcels but just as important, recognizes the Trustees as a municipal corporation which will strengthen our standing on other issues.”

The Southold Town Trustees stated, “This bill will enhance the opportunity for the Trustees to accept the donation of appropriate lands within our jurisdiction. The Southold Town Trustees appreciate the efforts of Senator LaValle and Assemblyman Thiele which acknowledge our longstanding commitment to the stewardship and protection of lands within Trustee jurisdiction.”

The Trustees of the Freeholders and Commonality of the Town of East Hampton noted, "This is a significant step forward in the recognition of the Trustees as a form of government. This new law will enable us to manage and preserve more property for the taxpayers of the Town of East Hampton."