A07848 Summary:

BILL NOA07848A
 
SAME ASSAME AS S05776
 
SPONSORLupardo
 
COSPNSRMagnarelli, McDonald, Santabarbara, Steck, Hunter
 
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 NOA07848A
 
05/28/2015referred to local governments
06/09/2015amend and recommit to local governments
06/09/2015print number 7848a
01/06/2016referred to local governments
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A07848 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7848A
 
SPONSOR: Lupardo (MS)
  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 envi- ronmental 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 § 1608 of the not-for-profit corporation law. § 1608-a relates to access to real prop- erty to acquisition. § 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 dili- gence into the environmental condition of such parcel prior to owner- ship. 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:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7848--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 28, 2015
                                       ___________
 
        Introduced  by  M.  of A. LUPARDO, MAGNARELLI, McDONALD, SANTABARBARA --
          read once and referred  to  the  Committee  on  Local  Governments  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
 
        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  § 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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11251-03-5

        A. 7848--A                          2
 
     1  to  all  parties  having right, title, or interest in, or lien upon such
     2  parcel, move, at a special term in the court in  which  the  foreclosure
     3  proceeding  was  initiated,  or  if such proceeding is an administrative
     4  proceeding pursuant to the provisions of a county charter, city charter,
     5  administrative code, or special law when applicable under section eleven
     6  hundred  four of the real property tax law, then such motion shall be at
     7  a special term of the supreme court in the county in which  such  parcel
     8  is  located, for an order granting the land bank the temporary incidents
     9  of ownership of such parcel for the sole purpose of  enabling  the  land
    10  bank and its agents to enter the parcel to conduct visual inspection and
    11  such  further environmental investigation of the parcel as the land bank
    12  deems necessary in  order  to  determine  whether  hazardous  materials,
    13  hazardous  substances  or other contaminants were previously released or
    14  disposed of on such parcel. Such inspection may include  invasive  test-
    15  ing,  including  but  not  limited to sampling of surface and subsurface
    16  soil and/or groundwater, as is considered by  an  environmental  profes-
    17  sional to be necessary and consistent with good commercial and customary
    18  practice  for  conducting  all appropriate inquiries into the former use
    19  and condition of such parcel. Following any such invasive  testing,  the
    20  land  bank  shall  return  the parcel, to the extent practicable, to the
    21  condition it was in before the investigation.
    22    (c) Unless prior to the return date of the motion brought pursuant  to
    23  this  section  the  property  has  been redeemed by the party having the
    24  right of redemption, the court shall enter an order granting such relief
    25  to the land bank. Such order shall be granted upon such terms and condi-
    26  tions as the court shall deem just and proper to permit  the  inspection
    27  to  occur  unhindered  as  well as to protect the interests of all other
    28  parties having an ownership interest in the parcel. Such order shall act
    29  as a stay to the foreclosure action on such parcel of property until the
    30  inspection has been completed and a report of the investigation has been
    31  filed with the court.
    32    (d) Such temporary incidents of ownership in the parcel  by  the  land
    33  bank shall not be sufficient or construed to constitute actual ownership
    34  of  the  parcel  for  purposes of any applicable environmental law which
    35  confers liability for damages caused by the  release  of  any  hazardous
    36  material,  substance  or  contaminant,  unless such release was actually
    37  caused by the land bank.
    38    (e) Within thirty days following the  completion  of  the  inspection,
    39  including  receipt  of  a  final  report  received from an environmental
    40  professional conducting the inspection, if any, the land bank shall file
    41  any such report, or a description of the results of the inspection if no
    42  formal environmental investigation of the parcel  was  undertaken,  with
    43  the  court  on  notice to the court and all other parties of record, and
    44  the stay of the foreclosure shall be lifted (unless lifted earlier by  a
    45  prior court order), and all incidents of temporary ownership of the land
    46  bank that was awarded to such land bank, shall cease to exist, and noth-
    47  ing  in this subdivision shall preclude the land bank that conducted the
    48  inspection from making a determination not to  acquire  the  parcel,  or
    49  preclude  the taxing jurisdiction that commenced the foreclosure action,
    50  from withdrawing the parcel from foreclosure pursuant to section  eleven
    51  hundred  thirty-eight  of  the  real property tax law or pursuant to the
    52  provisions of a county charter, city charter,  administrative  code,  or
    53  special  law  when  applicable  under section eleven hundred four of the
    54  real property tax law.
    55  § 1608-b. Liability exemption and defenses.

        A. 7848--A                          3
 
     1    Notwithstanding any general, special or local law or ordinance to  the
     2  contrary,  in  carrying  out  the powers, duties and goals identified in
     3  this article with respect to the acquisition and  ownership  of  vacant,
     4  abandoned or tax delinquent real property, no land bank organized pursu-
     5  ant to this title shall incur liability from any statutory claims of the
     6  state  relating to the presence, release or disposal of hazardous waste,
     7  hazardous substances, petroleum or other contaminants on real  property,
     8  by  virtue of its acquisition and ownership of any property contaminated
     9  by such  hazardous  waste,  hazardous  substances,  petroleum  or  other
    10  contaminants, provided that the following conditions are met:
    11    (a)  Such  property  constituted  vacant,  abandoned or tax delinquent
    12  property and was acquired by  the  land  bank  to  effect  the  purposes
    13  described in section sixteen hundred one of this article;
    14    (b)  The  release  or  disposal  of  the  hazardous  waste,  hazardous
    15  substances, petroleum or other contaminants occurred before the acquisi-
    16  tion of the property by the land bank;
    17    (c) The land bank did not  cause  or  contribute  to  the  release  or
    18  threatened  release of the hazardous waste or petroleum from or onto the
    19  property, or generate, transport, or dispose of such hazardous waste  or
    20  petroleum,  or  arrange for, or cause the generation, transportation, or
    21  disposal of hazardous waste, from or onto the site; and
    22    (d) Such property was acquired  by  the  land  bank  either  directly,
    23  through  foreclosure  of  a  tax  lien, or, was acquired from any public
    24  corporation,  as  defined  in  section   sixty-five   of   the   general
    25  construction law, following the involuntary acquisition of ownership and
    26  control by such public corporation, including but not limited to:
    27    (1)  Acquisitions  by  a public corporation in its sovereign capacity,
    28  including but  not  limited  to  acquisitions  pursuant  to  abandonment
    29  proceedings or bequest;
    30    (2)  Acquisitions  by  a public corporation, or its agent, acting as a
    31  conservator or receiver pursuant to a clear and direct statutory mandate
    32  or regulatory authority;
    33    (3) Acquisitions of assets through foreclosure and its equivalents, or
    34  otherwise, by a public corporation in  the  course  of  administering  a
    35  loan,  loan  guarantee,  tax lien, or tax forbearance agreement, or loan
    36  insurance program; or
    37    (4) Acquisitions by a public corporation pursuant to seizure,  injunc-
    38  tion,  condemnation,  or forfeiture authority; provided that such owner-
    39  ship or control is not retained primarily for investment purposes.
    40    § 2. This act shall take effect immediately.
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