Information regarding Aid on Sale or Transfer of School Buildings
Chapter 58 of the Laws of 2011, Education Law 3602 subdivision 6.e.8 requires school districts to provide information to SED if a school building is sold or ownership is otherwise transferred to an entity other than the school district or city and such transfer results in the building no longer being operated by the school district. This legislation is effective as of April 1, 2011 and therefore pertains to school buildings sold on or after this date.
Within sixty days of the transfer of ownership, the school district is required to notify the SED State Aid Office in writing of such sale or transfer. In addition, districts will also be required to provide additional information via SAMS and submit documentation to the State Aid Office pertaining to the sale or transfer as outlined below.
SED shall re-compute the building aid, if any, payable for capital projects currently generating aid for these buildings. SED will deduct the revenues received by the school district or city as a result of such sale or transfer from the remaining project balance and based on such adjusted project cost, establish a new assumed amortization for the remaining useful life of the project. If the revenue received exceeds the remaining project balance for all projects, building aid will cease for the projects associated with the sold building. Building aid paid prior to the sale of the building will not be affected.
In the claim year after the sale or transfer occurs, the district is required to notify SED via the SAMS Form FB entry 175 and ST-3 Schedule A3 General Fund Revenues entry A2660 or Schedule F2 Debt Service Fund Revenues entry V2660 Sale of Real Property. Both forms include information that must be completed to indicate that a sale or transfer of a building has occurred and provide instructions regarding the documentation that must be submitted regarding the sale or transfer. The documentation submitted will include the building name and address, the sale price of the building, revenue received, date of sale, seller’s and purchaser’s signatures & any other pertinent documentation available. Additional documentation may be requested by SED staff.
For school buildings sold July 1, 20XX- June 30, 20YY (20XX-YY school year), the aid reduction will affect the 20YY-ZZ aid year and forward. The district must submit the required information on the 20YY-ZZ SAMS Form FB & ST-3.