BILL NO A07911
SAME AS SAME AS S05777
SPONSOR Magnarelli (MS)
COSPNSR Lupardo, McDonald, Ramos, Santabarbara, Fahy, Steck, Skartados,
MLTSPNSR Crespo, Englebright, Magee, Simon
Amd SS1608 & 1609, N-PC L
Relates to the acquisition and disposition of property by land banks; provides
for no filing or recording fees for land banks.
BILL NO A07911
05/29/2015 referred to local governments
06/02/2015 reported referred to ways and means
06/15/2015 reported referred to rules
06/15/2015 rules report cal.483
06/15/2015 ordered to third reading rules cal.483
06/17/2015 substituted by s5777
S05777 AMEND= VALESKY
06/03/2015 REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
06/11/2015 COMMITTEE DISCHARGED AND COMMITTED TO RULES
06/11/2015 ORDERED TO THIRD READING CAL.1513
06/11/2015 PASSED SENATE
06/11/2015 DELIVERED TO ASSEMBLY
06/11/2015 referred to ways and means
06/17/2015 substituted for a7911
06/17/2015 ordered to third reading rules cal.483
06/17/2015 passed assembly
06/17/2015 returned to senate
10/14/2015 DELIVERED TO GOVERNOR
10/26/2015 SIGNED CHAP.407
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7911 REVISED MEMO 06/30/2015
SPONSOR: Magnarelli (MS)
TITLE OF BILL: An act to amend the not-for-profit corporation law, in
relation to the acquisition and disposition of property by land banks
This bill exempts New York State Land Banks from recording fees and §
2897 of the Public Authorities Law.
SUMMARY OF PROVISIONS:
Section 1: Amends § 1608(a) of the Not-For-Profit Corporation Law to
exempt Land Banks from recording fees.
Section 2: Adds new paragraph (a-1) to § 1609 of the Not-For-Profit
Corporation Law, exempting land banks from the property disposition
requirements of § 2897 of the Public Authorities Law.
Section 3: Establishes the effective date.
Land Banks were authorized in 2011 by the State Legislature as a new
tool to help municipalities contend with tax delinquent, abandoned and
blighted properties. As part of their work, Land Banks incur substantial
fees recording documents with County Clerks. This can amount to hundreds
of thousands of dollars a year, and forces them to divert funds from
their primary purpose.
This legislation will exempt Land Banks from these fees and allow them
to devote more funds to their primary mission. Many of these properties
would remain tax delinquent and abandoned if not for land bank inter-
vention. Any fees lost to counties and the State will be made up for
when these properties are redeveloped and returned to the tax rolls.
Additionally, communities will benefit when these properties are
returned to a useful purpose.
Additionally, § 1609 of the Land Bank Act, entitled "Disposition of
Property", sets forth detailed requirements concerning the disposition
of property by land banks. As local public authorities, land banks are
simultaneously required to comply with § 2897 of the Public Authorities
Law, similarly entitled "Disposal of Public Authority Property". The
public authority disposition provisions overlap, contradict and impair
the disposition provisions in the Land Bank Act as the public authority
provisions are designed to address the sale of property by a public
authority which is not regularly engaged in the disposition of real
Inherent in the primary mission and purpose of land banks is the regular
disposition of property in the ordinary course of its day to day oper-
ations. § 1609 of the Land Bank Act correctly anticipated such activity
and vested a land bank, its board of directors and its foreclosing
governmental units with, among other powers, the authority to establish
the terms and conditions of the consideration received by a land bank
for the transfer of its property, to establish hierarchical rankings of
priorities for the use of property conveyed by a land bank and to impose
specified voting and approval requirements of its board of directors.
The requirement that land banks comply with both disposition statutes
impedes the efficient and effective return of vacant, abandoned, and
tax-delinquent properties to productive use, and was likely not the
intent of the drafters of the Land Bank Act. An amendment to the Land
Bank Act is proposed stating that § 1609 is intended to supersede § 2897
of the Public Authorities Law.
To be determined.
STATE OF NEW YORK
2015-2016 Regular Sessions
May 29, 2015
Introduced by M. of A. MAGNARELLI, LUPARDO, McDONALD -- read once and
referred to the Committee on Local Governments
AN ACT to amend the not-for-profit corporation law, in relation to the
acquisition and disposition of property by land banks
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of section 1608 of the not-for-profit corpo-
2 ration law, as added by chapter 257 of the laws of 2011, is amended to
3 read as follows:
4 (a) The real property of a land bank and its income and operations are
5 exempt from all taxation by the state of New York and by any of its
6 political subdivisions. Notwithstanding any other general, special or
7 local law relating to fees of clerks, no clerk shall charge or collect a
8 fee for filing, recording or indexing any paper, document, map or
9 proceeding filed, recorded or indexed for a land bank, or an officer
10 thereof acting in an official capacity, nor for furnishing a transcript,
11 certification or copy of any paper, document, map or proceeding to be
12 used for land bank purposes.
13 § 2. Section 1609 of the not-for-profit corporation law is amended by
14 adding a new paragraph (a-1) to read as follows:
15 (a-1) This section governing the disposition of property by land banks
16 shall supersede section twenty-eight hundred ninety-seven of the public
17 authorities law in the governance of property dispositions by land banks
18 and, as such, notwithstanding any other general, special or local law to
19 the contrary, section twenty-eight hundred ninety-seven of the public
20 authorities law shall not apply to land banks.
21 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.