A07848 Summary:

BILL NO    A07848 

SAME AS    No same as 

SPONSOR    Lupardo (MS)

COSPNSR    Magnarelli, McDonald

MLTSPNSR   

Add SS1608-a & 1608-b, N-PC L

Authorizes land banks to access real property prior to acquisition of the
property and relates to the liabilities and exemptions from liability of land
banks with relation to the acquisition and ownership of vacant, abandoned or
tax delinquent real property.
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A07848 Actions:

BILL NO    A07848 

05/28/2015 referred to local governments
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A07848 Votes:

There are no votes for this bill in this legislative session.
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A07848 Memo:

BILL NUMBER:A7848

TITLE OF BILL:

An act to amend the not-for-profit corporation law, in relation to
authorizing land banks to access real property prior to acquisition of
the property and to the liabilities and exemptions from liability of
land banks with relation to the acquisition and ownership of vacant,
abandoned or tax delinquent real property

PURPOSE:

The purpose of this bill is to provide land banks with access to
properties prior to the transfer of ownership to assess environmental
conditions. The bill also provides land banks with liability
protections from environmental conditions and contaminations after the
transfer of ownership that they would currently be held responsible
for.

SUMMARY OF PROVISIONS:

Section 1 of the bill adds sections 1608-a and 1608-b to S 1608 of the
not-for-profit corporation law. S 1608-a relates to access to real
property to acquisition. S 1608-b relates to liability exemption and
defenses.

Section 2 is the effective date.

JUSTIFICATION:

In 2011, the Land Bank act was signed into law in order to help
municipalities address blight and vacant properties. Since the land
banks have started operation, a number of concerns have been
identified that have impeded the work of the land banks.

Land banks typically acquire abandoned or tax delinquent properties
from absent or uncooperative owners. Often, they are unable to legally
access such properties prior to purchase and therefore cannot perform
due diligence into the environmental condition of such parcel prior to
ownership. That potentially prevents land banks from asserting
statutory defenses and exposes them to liability for the costs of
remediation.

Land banks are tasked with acquiring vacant, abandoned and delinquent
properties to facilitate their return to productive use, In the event
a land bank acquires environmentally contaminated real property, the
public assets of a land bank are potentially exposed to liability
which could include significant remediation costs.

This bill will provide land banks with temporary incidents of
ownership sufficient to authorize such access prior to transfer,
without incurring liability based upon ownership. It will also provide
liability protections to land banks similar to those which are already
available to municipalities, as land banks are not typical voluntary
buyers.

LEGISLATIVE HISTORY:


New bill.

FISCAL IMPLICATIONS:

Undetermined.

EFFECTIVE DATE:

The act shall take effect immediately.
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A07848 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         7848

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                     May 28, 2015
                                      ___________

       Introduced  by  M.  of A. LUPARDO, MAGNARELLI, McDONALD -- read once and
         referred to the Committee on Local Governments

       AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
         authorizing land banks to access real property prior to acquisition of
         the  property  and to the liabilities and exemptions from liability of
         land banks with relation to the acquisition and ownership  of  vacant,
         abandoned or tax delinquent real property

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. The not-for-profit corporation law is amended by adding two
    2  new sections 1608-a and 1608-b to read as follows:
    3  S 1608-A. ACCESS TO REAL PROPERTY PRIOR TO ACQUISITION.
    4    NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO  THE
    5  CONTRARY:
    6    (A) TO CARRY OUT THE POWERS, DUTIES AND GOALS IDENTIFIED IN THIS ARTI-
    7  CLE,  LAND  BANKS  SHALL BE AUTHORIZED, IN ACCORDANCE WITH THE PROCEDURE
    8  DESCRIBED IN THIS SECTION, TO ACCESS ANY TAX DELINQUENT PARCEL  OF  REAL
    9  PROPERTY  THAT  THE  LAND  BANK  INTENDS TO ACQUIRE FROM ANY FORECLOSING
   10  GOVERNMENTAL UNIT, IN ORDER TO DETERMINE THE PHYSICAL CONDITION  OF  ANY
   11  BUILDINGS  OR  STRUCTURES ON SUCH PARCEL, OR TO ASSESS THE ENVIRONMENTAL
   12  CONDITION OF SUCH PARCEL.  IF  DEEMED  APPROPRIATE,  SUCH  ACCESS  SHALL
   13  INCLUDE  THE  ABILITY TO ENGAGE AN ENVIRONMENTAL PROFESSIONAL TO CONDUCT
   14  ALL APPROPRIATE INQUIRIES INTO THE FORMER  USE  AND  OWNERSHIP  OF  SUCH
   15  PROPERTY,  IN  ORDER TO DETERMINE WHETHER HAZARDOUS MATERIALS, HAZARDOUS
   16  SUBSTANCES OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR DISPOSED OF
   17  ON SUCH PARCEL, CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY PRACTICE.
   18    (B) FOLLOWING THE COMMENCEMENT OF A PROCEEDING TO FORECLOSE A TAX LIEN
   19  BY THE TAXING DISTRICT HAVING ANY RIGHT, TITLE OR INTEREST  IN  OR  LIEN
   20  UPON ANY PARCEL, A LAND BANK MAY, UPON NOT LESS THAN TWENTY DAYS' NOTICE
   21  TO  ALL  PARTIES  HAVING RIGHT, TITLE, OR INTEREST IN, OR LIEN UPON SUCH
   22  PARCEL, MOVE, AT A SPECIAL TERM IN THE COURT IN  WHICH  THE  FORECLOSURE

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11251-01-5
       A. 7848                             2

    1  PROCEEDING  WAS  INITIATED,  OR  IF SUCH PROCEEDING IS AN ADMINISTRATIVE
    2  PROCEEDING PURSUANT TO THE PROVISIONS OF A COUNTY CHARTER, CITY CHARTER,
    3  ADMINISTRATIVE CODE, OR SPECIAL LAW WHEN APPLICABLE UNDER SECTION ELEVEN
    4  HUNDRED  FOUR OF THE REAL PROPERTY TAX LAW, THEN SUCH MOTION SHALL BE AT
    5  A SPECIAL TERM OF THE SUPREME COURT IN THE COUNTY IN WHICH  SUCH  PARCEL
    6  IS  LOCATED, FOR AN ORDER GRANTING THE LAND BANK THE TEMPORARY INCIDENTS
    7  OF OWNERSHIP OF SUCH PARCEL FOR THE SOLE PURPOSE OF  ENABLING  THE  LAND
    8  BANK AND ITS AGENTS TO ENTER THE PARCEL TO CONDUCT VISUAL INSPECTION AND
    9  SUCH  FURTHER ENVIRONMENTAL INVESTIGATION OF THE PARCEL AS THE LAND BANK
   10  DEEMS NECESSARY IN  ORDER  TO  DETERMINE  WHETHER  HAZARDOUS  MATERIALS,
   11  HAZARDOUS  SUBSTANCES  OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR
   12  DISPOSED OF ON SUCH PARCEL. SUCH INSPECTION MAY INCLUDE  INVASIVE  TEST-
   13  ING,  INCLUDING  BUT  NOT  LIMITED TO SAMPLING OF SURFACE AND SUBSURFACE
   14  SOIL AND/OR GROUNDWATER, AS IS CONSIDERED BY  AN  ENVIRONMENTAL  PROFES-
   15  SIONAL TO BE NECESSARY AND CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY
   16  PRACTICE  FOR  CONDUCTING  ALL APPROPRIATE INQUIRIES INTO THE FORMER USE
   17  AND CONDITION OF SUCH PARCEL. FOLLOWING ANY SUCH INVASIVE  TESTING,  THE
   18  LAND  BANK  SHALL  RETURN  THE PARCEL, TO THE EXTENT PRACTICABLE, TO THE
   19  CONDITION IT WAS IN BEFORE THE INVESTIGATION.
   20    (C) UNLESS PRIOR TO THE RETURN DATE OF THE MOTION BROUGHT PURSUANT  TO
   21  THIS  SECTION  THE  PROPERTY  HAS  BEEN REDEEMED BY THE PARTY HAVING THE
   22  RIGHT OF REDEMPTION, THE COURT SHALL ENTER AN ORDER GRANTING SUCH RELIEF
   23  TO THE LAND BANK. SUCH ORDER SHALL BE GRANTED UPON SUCH TERMS AND CONDI-
   24  TIONS AS THE COURT SHALL DEEM JUST AND PROPER TO PERMIT  THE  INSPECTION
   25  TO  OCCUR  UNHINDERED  AS  WELL AS TO PROTECT THE INTERESTS OF ALL OTHER
   26  PARTIES HAVING AN OWNERSHIP INTEREST IN THE PARCEL. SUCH ORDER SHALL ACT
   27  AS A STAY TO THE FORECLOSURE ACTION ON SUCH PARCEL OF PROPERTY UNTIL THE
   28  INSPECTION HAS BEEN COMPLETED AND A REPORT OF THE INVESTIGATION HAS BEEN
   29  FILED WITH THE COURT.
   30    (D) SUCH TEMPORARY INCIDENTS OF OWNERSHIP IN THE PARCEL  BY  THE  LAND
   31  BANK SHALL NOT BE SUFFICIENT OR CONSTRUED TO CONSTITUTE ACTUAL OWNERSHIP
   32  OF  THE  PARCEL  FOR  PURPOSES OF ANY APPLICABLE ENVIRONMENTAL LAW WHICH
   33  CONFERS LIABILITY FOR DAMAGES CAUSED BY THE  RELEASE  OF  ANY  HAZARDOUS
   34  MATERIAL,  SUBSTANCE  OR  CONTAMINANT,  UNLESS SUCH RELEASE WAS ACTUALLY
   35  CAUSED BY THE LAND BANK.
   36    (E) WITHIN THIRTY DAYS FOLLOWING THE  COMPLETION  OF  THE  INSPECTION,
   37  INCLUDING  RECEIPT  OF  A  FINAL  REPORT  RECEIVED FROM AN ENVIRONMENTAL
   38  PROFESSIONAL CONDUCTING THE INSPECTION, IF ANY, THE LAND BANK SHALL FILE
   39  ANY SUCH REPORT, OR A DESCRIPTION OF THE RESULTS OF THE INSPECTION IF NO
   40  FORMAL ENVIRONMENTAL INVESTIGATION OF THE PARCEL  WAS  UNDERTAKEN,  WITH
   41  THE  COURT  ON  NOTICE TO THE COURT AND ALL OTHER PARTIES OF RECORD, AND
   42  THE STAY OF THE FORECLOSURE SHALL BE LIFTED (UNLESS LIFTED EARLIER BY  A
   43  PRIOR COURT ORDER), AND ALL INCIDENTS OF TEMPORARY OWNERSHIP OF THE LAND
   44  BANK THAT WAS AWARDED TO SUCH LAND BANK, SHALL CEASE TO EXIST, AND NOTH-
   45  ING  IN THIS SUBDIVISION SHALL PRECLUDE THE LAND BANK THAT CONDUCTED THE
   46  INSPECTION FROM MAKING A DETERMINATION NOT THE ACQUIRE  THE  PARCEL,  OR
   47  PRECLUDE  THE TAXING JURISDICTION THAT COMMENCED THE FORECLOSURE ACTION,
   48  FROM WITHDRAWING THE PARCEL FROM FORECLOSURE PURSUANT TO SECTION  ELEVEN
   49  HUNDRED  THIRTY-EIGHT  OF  THE  REAL PROPERTY TAX LAW OR PURSUANT TO THE
   50  PROVISIONS OF A COUNTY CHARTER, CITY CHARTER,  ADMINISTRATIVE  CODE,  OR
   51  SPECIAL  LAW  WHEN  APPLICABLE  UNDER SECTION ELEVEN HUNDRED FOUR OF THE
   52  REAL PROPERTY TAX LAW.
   53  S 1608-B. LIABILITY EXEMPTION AND DEFENSES.
   54    NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO  THE
   55  CONTRARY,  IN  CARRYING  OUT  THE POWERS, DUTIES AND GOALS IDENTIFIED IN
   56  THIS ARTICLE WITH RESPECT TO THE ACQUISITION AND  OWNERSHIP  OF  VACANT,
       A. 7848                             3

    1  ABANDONED OR TAX DELINQUENT REAL PROPERTY, NO LAND BANK ORGANIZED PURSU-
    2  ANT TO THIS TITLE SHALL INCUR LIABILITY FROM ANY STATUTORY CLAIMS OF THE
    3  STATE  RELATING TO THE PRESENCE, RELEASE OR DISPOSAL OF HAZARDOUS WASTE,
    4  HAZARDOUS  SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS ON REAL PROPERTY,
    5  BY VIRTUE OF ITS ACQUISITION AND OWNERSHIP OF ANY PROPERTY  CONTAMINATED
    6  BY  SUCH  HAZARDOUS  WASTE,  HAZARDOUS  SUBSTANCES,  PETROLEUM  OR OTHER
    7  CONTAMINANTS, PROVIDED THAT THE FOLLOWING CONDITIONS ARE MET:
    8    (A) SUCH PROPERTY CONSTITUTED  VACANT,  ABANDONED  OR  TAX  DELINQUENT
    9  PROPERTY  AND  WAS  ACQUIRED  BY  THE  LAND  BANK TO EFFECT THE PURPOSES
   10  DESCRIBED IN SECTION SIXTEEN HUNDRED ONE OF THIS ARTICLE;
   11    (B)  THE  RELEASE  OR  DISPOSAL  OF  THE  HAZARDOUS  WASTE,  HAZARDOUS
   12  SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS OCCURRED BEFORE THE ACQUISI-
   13  TION OF THE PROPERTY BY THE LAND BANK;
   14    (C)  THE  LAND  BANK  DID  NOT  CAUSE  OR CONTRIBUTE TO THE RELEASE OR
   15  THREATENED RELEASE OF THE HAZARDOUS WASTE OR PETROLEUM FROM OR ONTO  THE
   16  PROPERTY,  OR GENERATE, TRANSPORT, OR DISPOSE OF SUCH HAZARDOUS WASTE OR
   17  PETROLEUM, OR ARRANGE FOR, OR CAUSE THE GENERATION,  TRANSPORTATION,  OR
   18  DISPOSAL OF HAZARDOUS WASTE, FROM OR ONTO THE SITE; AND
   19    (D)  SUCH  PROPERTY  WAS  ACQUIRED  BY  THE LAND BANK EITHER DIRECTLY,
   20  THROUGH FORECLOSURE OF A TAX LIEN, OR,  WAS  ACQUIRED  FROM  ANY  PUBLIC
   21  CORPORATION,   AS   DEFINED   IN   SECTION  SIXTY-FIVE  OF  THE  GENERAL
   22  CONSTRUCTION LAW, FOLLOWING THE INVOLUNTARY ACQUISITION OF OWNERSHIP AND
   23  CONTROL BY SUCH PUBLIC CORPORATION, INCLUDING BUT NOT LIMITED TO:
   24    (1) ACQUISITIONS BY A PUBLIC CORPORATION IN  ITS  SOVEREIGN  CAPACITY,
   25  INCLUDING  BUT  NOT  LIMITED  TO  ACQUISITIONS  PURSUANT  TO ABANDONMENT
   26  PROCEEDINGS OR BEQUEST;
   27    (2) ACQUISITIONS BY A PUBLIC CORPORATION, OR ITS AGENT,  ACTING  AS  A
   28  CONSERVATOR OR RECEIVER PURSUANT TO A CLEAR AND DIRECT STATUTORY MANDATE
   29  OR REGULATORY AUTHORITY;
   30    (3) ACQUISITIONS OF ASSETS THROUGH FORECLOSURE AND ITS EQUIVALENTS, OR
   31  OTHERWISE,  BY  A  PUBLIC  CORPORATION  IN THE COURSE OF ADMINISTERING A
   32  LOAN, LOAN GUARANTEE, TAX LIEN, OR TAX FORBEARANCE  AGREEMENT,  OR  LOAN
   33  INSURANCE PROGRAM; OR
   34    (4)  ACQUISITIONS BY A PUBLIC CORPORATION PURSUANT TO SEIZURE, INJUNC-
   35  TION, CONDEMNATION, OR FORFEITURE AUTHORITY; PROVIDED THAT  SUCH  OWNER-
   36  SHIP OR CONTROL IS NOT RETAINED PRIMARILY FOR INVESTMENT PURPOSES.
   37    S 2. This act shall take effect immediately.
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