N.Y. Comp. Codes R. & Regs. tit. 8, § 155.14 – Leasing of unneeded board of cooperative educational services facilities.

(a) As used in this section, the term unneeded board of cooperative educational services facilities shall mean any land, classrooms, offices or buildings, or portions thereof, owned by a board of cooperative educational services which such board has determined will not be needed during the term of the proposed lease.
(b) Pursuant to section 1950(4)(p) of the Education Law, a board of cooperative educational services may lease unneeded facilities to public or private agencies, individuals, partnerships or corporations with the approval of the commissioner.
(c) In order to obtain approval by the Commissioner of Education to lease unneeded facilities:
1. (1) the board of cooperative educational services shall file three executed copies of the lease agreement with the commissioner at least 30 days prior to the beginning date of the proposed lease period. Such lease agreement shall include, but need not be limited to:
  1. (i) the amount of rental, which shall not be less than fair market value as determined by the board of cooperative educational services;
  2. (ii) the term of the lease, which shall not exceed five years, and any provisions relating to the renewal of such lease;
  3. (iii) a statement of the operation and maintenance services, if any, to be provided by the board of cooperative educational services for the facility during the term of the lease;
  4. (iv) a requirement that any improvements to the leased property by the tenant be approved by the board of cooperative educational services;
  5. (v) indemnification of the board of cooperative educational services against loss or liability as a result of a tenant's occupancy of a leased facility;
  6. (vi) a statement that such lease agreement will not become effective until approved by the Commissioner of Education; and
  7. (vii) any other clauses or appendices which the Commissioner of Education deems to be in the best interest of the board of cooperative educational services.
2. (2) such lease agreement shall be accompanied by a copy of the resolution of the board of cooperative educational services authorizing such lease, stating the purpose for which the tenant intends to use the leased facility, and providing:
  1. (i) that the board of cooperative educational services has made a study and does not anticipate a need for the leased property during the term of the proposed lease;
  2. (ii) that the annual amount of rental payment is not less than the fair market rental value as determined by such board of cooperative educational services; and
  3. (iii) that such lease is in the best educational and financial interest of the board.
(d) Income received by the board of cooperative educational services from the lease of unneeded facilities shall be included as revenue in such board's administrative budget.
(e) Nothing contained in this section shall prevent the board of cooperative educational services from:
1. (1) entering into a lease agreement which provides for the cancellation of such lease by such board; and
2. (2) including, in the lease agreement, requirements concerning the condition of the leased facilities at the conclusion of the lease.
(f) The commissioner may approve a lease of unneeded board of cooperative educational services facilities which does not satisfy all of the provisions of subdivision (c) of this section upon a finding that the conditions of such lease are substantially equivalent to such provisions.