Rpld §581, amd RPT L, generally; amd §§11-208.1, 11-238, 11-319, 11-320, 11-354, 11-401, 11-401.1, 11-404 &
11-405, NYC Ad Cd; amd §339-y, RP L
Classifies properties held in condominium and cooperative form for assessment purposes as class one-a properties; requires that the annual tax rate percentage change for class one-a properties does not exceed the annual tax rate percentage change for class one properties.
STATE OF NEW YORK
________________________________________________________________________
8939
IN ASSEMBLY
January 19, 2022
___________
Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, the administrative code of
the city of New York and the real property law, in relation to classi-
fying properties held in condominium and cooperative form for assess-
ment purposes as class one-a properties; and to repeal certain
provisions of the real property tax law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 1802 of the real property tax law,
2 as separately amended by chapters 123 and 529 of the laws of 1990, para-
3 graph class one as amended by chapter 332 of the laws of 2008, is
4 amended to read as follows:
5 1. All real property, for the purposes of this article, in a special
6 assessing unit shall be classified as follows:
7 Class one: (a) all one, two and three family residential real proper-
8 ty, including such dwellings used in part for nonresidential
9 purposes but which are used primarily for residential purposes,
10 except such property held in cooperative or condominium forms of
11 ownership other than (i) property defined in subparagraphs (b)
12 and (c) of this paragraph and (ii) property which contains no
13 more than three dwelling units held in condominium form of
14 ownership and which was classified within this class on a previ-
15 ous assessment roll; and provided that, notwithstanding the
16 provisions of paragraph (g) of subdivision twelve of section one
17 hundred two of this chapter, a mobile home or a trailer shall
18 not be classified within this class unless it is owner-occupied
19 and separately assessed; and (b) residential real property not
20 more than three stories in height held in condominium form of
21 ownership, provided that no dwelling unit therein previously was
22 on an assessment roll as a dwelling unit in other than condomin-
23 ium form of ownership; and (c) residential real property
24 consisting of one family house structures owned by the occupant,
25 situated on land held in cooperative ownership by owner occupi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03633-02-2
A. 8939 2
1 ers, provided that; (i) such house structures and land consti-
2 tuted bungalow colonies in existence prior to nineteen hundred
3 forty; and (ii) the land is held in cooperative ownership for
4 the sole purpose of maintaining one family residences for
5 members own use; and (d) all vacant land located within a
6 special assessing unit which is a city (i) other than such land
7 in the borough of Manhattan, provided that any such vacant land
8 which is not zoned residential must be situated immediately
9 adjacent to property improved with a residential structure as
10 defined in subparagraphs (a) and (b) of this paragraph, be owned
11 by the same owner as such immediately adjacent residential prop-
12 erty immediately prior to and since January 1, 1989, and have a
13 total area not exceeding 10,000 square feet; and (ii) located in
14 the borough of Manhattan north of or adjacent to the north side
15 of 110th street provided such vacant land was classified within
16 this class on the assessment roll with a taxable status date of
17 January 5, 2008 and the owner of such land has entered into a
18 recorded agreement with a governmental entity on or before
19 December 31, 2008 requiring construction of housing affordable
20 to persons or families of low income in accordance with the
21 provisions of the private housing finance law. Notwithstanding
22 the foregoing, such vacant land shall be classified according to
23 its use on the assessment roll with a taxable status date imme-
24 diately following commencement of construction, provided
25 further, that construction pursuant to an approved plan for
26 affordable housing shall commence no later than December 31,
27 2010; and (e) all vacant land located within a special assessing
28 unit which is not a city, provided that such vacant land which
29 is not zoned residential must be situated immediately adjacent
30 to real property defined in subparagraph (a), (b) or (c) of this
31 paragraph and be owned by the same person or persons who own the
32 real property defined in such subparagraph immediately prior to
33 and since January 1, 2003;
34 Class one-a: all other residential real property held in condominium
35 or cooperative form of ownership which is not designated as
36 class one; the department of finance of any city enacting a
37 local law pursuant to this section shall reclassify class one-a
38 properties used primarily to generate rental income to class
39 two. The department of finance of any city enacting a local law
40 pursuant to this section shall have, in addition to any other
41 functions, powers and duties which have been or may be conferred
42 on it by law, the power to make and promulgate rules to carry
43 out the purposes of this section including, but not limited to,
44 rules defining the class one-a properties primarily used to
45 generate rental income, and relating to the timing, form and
46 manner of any certification required to be submitted under this
47 section. If a property previously reclassified from class one-a
48 to class two ceases to be used primarily to generate rental
49 income, the department shall reclassify such property to class
50 one-a. The department shall use a five-year period when deter-
51 mining whether a property is used primarily to generate rental
52 income;
53 Class two: all other residential real property which is not designated
54 as class one or class one-a, except hotels and motels and other
55 similar commercial property;
A. 8939 3
1 Class three: utility real property and property subject to former
2 section four hundred seventy of this chapter;
3 Class four: all other real property which is not designated as class
4 one, class one-a, class two, or class three.
5 § 2. The real property tax law is amended by adding a new section
6 1803-c to read as follows:
7 § 1803-c. Calculation of shares. 1. For the calendar year two thou-
8 sand twenty, notwithstanding the provisions of sections eighteen hundred
9 three, eighteen hundred three-a, and eighteen hundred three-b of this
10 article to the contrary, the New York city commissioner of finance shall
11 establish a new class one-a pursuant to subdivision one of section eigh-
12 teen hundred two of this article and shall calculate shares for class
13 one, class one-a, class two, class three and class four where the base
14 year used in the calculation of the current base proportion shall be the
15 2017 assessment roll and the sum of class one-a and class two shall not
16 exceed the prior year adjusted base proportion for such classes.
17 2. After two thousand twenty-one, assessment rolls prepared according
18 to January 1, 2023, the adjusted base proportions for class one and
19 class one-a, shall not exceed each class' prior adjusted base proportion
20 by more than five percent.
21 3. In a city having a population of one million or more, such city's
22 tax fixing resolution shall set a tax rate for class one-a in the same
23 manner as all class shares are calculated pursuant to sections eighteen
24 hundred three, eighteen hundred three-a and eighteen hundred three-b of
25 this article.
26 4. The assessment ratio for class one-a shall be six percent.
27 § 3. Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4
28 of section 307-a of the real property tax law, as added by section 1 of
29 part G of chapter 63 of the laws of 2003, are amended to read as
30 follows:
31 1. Generally. Notwithstanding any provision of any general, special
32 or local law to the contrary, any city with a population of one million
33 or more is hereby authorized and empowered to adopt and amend local laws
34 in accordance with this section imposing an additional tax on certain
35 class one and class one-a properties, as such properties are defined in
36 section eighteen hundred two of this chapter, excluding vacant land.
37 (c) "Net real property tax" means the real property tax assessed on a
38 class one or class one-a property after deduction for any exemption or
39 abatement received pursuant to this chapter.
40 4. Property subject to additional tax. Such surcharge shall be imposed
41 on class one and class one-a property, excluding vacant land, that
42 provides rental income and is not the primary residence of the owner or
43 owners of such class one or class one-a property, or the primary resi-
44 dence of the parent or child of such owner or owners.
45 § 4. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
46 erty tax law, as added by chapter 273 of the laws of 1996, is amended
47 and a new paragraph (m) is added to read as follows:
48 (f) "Property" means real property designated as class [two] one-a,
49 pursuant to section eighteen hundred two of this chapter, held in the
50 cooperative or condominium form of ownership.
51 (m) "Market value" shall be calculated by the New York city department
52 of finance based upon comparable sales.
53 § 5. Paragraphs (d-1), (d-2), (d-3) and (d-4) of subdivision 2 of
54 section 467-a of the real property tax law, as amended by chapter 184 of
55 the laws of 2021, are amended and seven new paragraphs (d-7), (d-8),
56 (d-9), (d-10), (d-11), (d-12) and (d-13) are added to read as follows:
A. 8939 4
1 (d-1) In the fiscal years commencing in calendar years two thousand
2 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
3 ing units in property whose average unit assessed value is less than or
4 equal to fifty thousand dollars shall receive a partial abatement of the
5 real property taxes attributable to or due on such dwelling units of
6 twenty-five percent, twenty-six and one-half percent and twenty-eight
7 and one-tenth percent respectively. In the fiscal years commencing in
8 calendar years two thousand fifteen through two thousand [twenty-two]
9 eighteen eligible dwelling units in property whose average unit assessed
10 value is less than or equal to fifty thousand dollars shall receive a
11 partial abatement of the real property taxes attributable to or due on
12 such dwelling units of twenty-eight and one-tenth percent.
13 (d-2) In the fiscal years commencing in calendar years two thousand
14 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
15 ing units in property whose average unit assessed value is more than
16 fifty thousand dollars, but less than or equal to fifty-five thousand
17 dollars, shall receive a partial abatement of the real property taxes
18 attributable to or due on such dwelling units of twenty-two and one-half
19 percent, twenty-three and eight-tenths percent and twenty-five and two-
20 tenths percent respectively. In the fiscal years commencing in calendar
21 years two thousand fifteen through two thousand [twenty-two] eighteen
22 eligible dwelling units in property whose average unit assessed value is
23 more than fifty thousand dollars, but less than or equal to fifty-five
24 thousand dollars, shall receive a partial abatement of the real property
25 taxes attributable to or due on such dwelling units of twenty-five and
26 two-tenths percent.
27 (d-3) In the fiscal years commencing in calendar years two thousand
28 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
29 ing units in property whose average unit assessed value is more than
30 fifty-five thousand dollars, but less than or equal to sixty thousand
31 dollars, shall receive a partial abatement of the real property taxes
32 attributable to or due on such dwelling units of twenty percent, twen-
33 ty-one and two-tenths percent, and twenty-two and five-tenths percent
34 respectively. In the fiscal years commencing in calendar years two thou-
35 sand fifteen through two thousand [twenty-two] eighteen eligible dwell-
36 ing units in property whose average unit assessed value is more than
37 fifty-five thousand dollars, but less than or equal to sixty thousand
38 dollars, shall receive a partial abatement of the real property taxes
39 attributable to or due on such dwelling units of twenty-two and five-
40 tenths percent.
41 (d-4) In the fiscal years commencing in calendar years two thousand
42 twelve through two thousand [twenty-two] eighteen, eligible dwelling
43 units in property whose average unit assessed value is more than sixty
44 thousand dollars shall receive a partial abatement of the real property
45 taxes attributable to or due on such dwelling units of seventeen and
46 one-half percent.
47 (d-7) Eligible dwelling units in property whose average unit market
48 value is less than or equal to six hundred fifty thousand dollars shall
49 receive a partial abatement of real property taxes attributable to or
50 due on such dwelling units, not to exceed thirty-three percent in the
51 fiscal year commencing in calendar year two thousand twenty-two and
52 thereafter.
53 (d-8) Eligible dwelling units in property whose average unit market
54 value is between six hundred fifty thousand one dollars to seven hundred
55 fifty thousand dollars shall receive a partial abatement of the real
56 property taxes attributable to or due on such dwelling units, not to
A. 8939 5
1 exceed twenty-two and five-tenths percent in the fiscal year commencing
2 in calendar year two thousand twenty-two and thereafter.
3 (d-9) Eligible dwelling units in property whose average unit market
4 value is between seven hundred fifty thousand one and one million five
5 hundred thousand dollars shall receive a partial abatement of the real
6 property taxes attributable to or due on such dwelling units, not to
7 exceed seventeen and five-tenths percent in the fiscal year commencing
8 in calendar year two thousand twenty-two and thereafter.
9 (d-10) Eligible dwelling units in property whose average unit market
10 value is between one million five hundred thousand one dollars and two
11 million six hundred sixty-six thousand six hundred sixty-seven dollars
12 shall receive a partial abatement of the real property taxes attribut-
13 able to or due on such dwelling units, not to exceed thirteen and thir-
14 teen-hundredths percent in the fiscal year commencing in calendar year
15 two thousand twenty-two and thereafter.
16 (d-11) Eligible dwelling units in property whose average unit market
17 value is between two million six hundred sixty-six thousand six hundred
18 sixty-eight dollars and three million eight hundred thirty-three thou-
19 sand three hundred thirty-three dollars shall receive a partial abate-
20 ment of the real property taxes attributable to or due on such dwelling
21 units, not to exceed eight and seventy-five hundredth percent in the
22 fiscal year commencing in calendar year two thousand twenty-two and
23 thereafter.
24 (d-12) Eligible dwelling units in property whose average unit market
25 value is between three million eight hundred thirty-three thousand three
26 hundred thirty-four dollars and five million dollars shall receive a
27 partial abatement of the real property taxes attributable to or due on
28 such dwelling units, not to exceed four and thirty-eight hundredths
29 percent in the fiscal year commencing in calendar year two thousand
30 twenty-two and thereafter.
31 (d-13) Eligible dwelling units in property whose average unit market
32 value is five million dollars or more shall receive a partial abatement
33 of the real property taxes attributable to or due on such dwelling
34 units, not to exceed zero percent in the fiscal year commencing in
35 calendar year two thousand twenty-two and thereafter.
36 § 6. The real property tax law is amended by adding a new section
37 467-a-1 to read as follows:
38 § 467-a-1. Enhanced partial abatement for certain condominiums and
39 cooperative residences. 1. In addition to the partial abatement received
40 pursuant to section four hundred sixty-seven-a of this article, in the
41 fiscal year commencing in calendar year two thousand twenty-two, eligi-
42 ble units in property whose average unit market value is less than six
43 hundred fifty thousand dollars shall receive an enhanced abatement equal
44 to the excess above two percent of the difference between the prior
45 year's property tax and the current year's property tax.
46 2. In addition to the partial abatement received pursuant to section
47 four hundred sixty-seven-a of this article, in the fiscal year commenc-
48 ing in calendar year two thousand twenty-three, eligible units in prop-
49 erty whose average unit market value is less than six hundred fifty
50 thousand dollars shall receive an enhanced abatement equal to the excess
51 above four percent of the difference between the prior year's property
52 tax and the current year's property tax.
53 3. In addition to the partial abatement received pursuant to section
54 four hundred sixty-seven-a of this article, in the fiscal year commenc-
55 ing in calendar year two thousand twenty-four and thereafter, eligible
56 units in property whose average unit market value is less than six
A. 8939 6
1 hundred fifty thousand dollars shall receive an enhanced abatement equal
2 to the excess above six percent of the difference between the prior
3 year's property tax and the current year's property tax. The enhanced
4 condominium and cooperative abatement shall not be eligible for units
5 where the commissioner determines that renovation or construction within
6 the unit or building has produced a substantial yearly increase in the
7 unit's assessed value.
8 § 7. Subdivision 7 of section 499-aaa of the real property tax law, as
9 added by chapter 461 of the laws of 2008, is amended to read as follows:
10 7. "Eligible building" shall mean a class one, class one-a, class two
11 or class four real property, as defined in subdivision one of section
12 eighteen hundred two of this chapter, located within a city having a
13 population of one million or more persons. No building shall be eligible
14 for more than one tax abatement pursuant to this title.
15 § 8. Subdivision 7 of section 499-aaaa of the real property tax law,
16 as added by chapter 473 of the laws of 2008, is amended to read as
17 follows:
18 7. "Eligible building" shall mean a class one, class one-a, class two
19 or class four real property, as defined in subdivision one of section
20 eighteen hundred two of this chapter, located within a city having a
21 population of one million or more persons. No building shall be eligible
22 for more than one tax abatement pursuant to this title.
23 § 9. Paragraph (b) of subdivision 3 of section 522 of the real proper-
24 ty tax law, as added by chapter 714 of the laws of 1982, is amended to
25 read as follows:
26 (b) in a special assessing unit, the determination, pursuant to
27 section eighteen hundred two of this chapter, of whether real property
28 is included in class one, one-a, two, three or four.
29 § 10. Subdivision 10 of section 523-b of the real property tax law, as
30 added by chapter 593 of the laws of 1998, is amended to read as follows:
31 10. On or before April first, each year the commission shall mail to
32 each applicant, who has filed an application for the correction of the
33 assessment, a notice of the commission's determination of such appli-
34 cant's assessment. Such notice shall also contain the statement as to
35 the final determination of the assessment review commission, or a state-
36 ment that the commission has not yet made a determination as to the
37 final assessed valuation which shall be made as soon as the petitioners
38 application is reviewed or heard. If the applicants property is a prop-
39 erty defined in subdivision one of section eighteen hundred two of this
40 chapter as "Class 1", the commissions determination shall contain the
41 statement: "If you are dissatisfied with the determination of the
42 Assessment Review Commission and you are the owner of a one, two or
43 three family residential structure or residential real property not more
44 than three stories in height held in condominium form of ownership,
45 provided that no dwelling unit therein previously was on an assessment
46 roll as a dwelling unit in other than condominium form of ownership, and
47 you reside at such residence, you may seek judicial review of your
48 assessment either under title one of article seven of the real property
49 tax law or under small claims assessment review law provided by title
50 one-A of article seven of the real property tax law." Such notice shall
51 also state that the last date to file petitions for judicial review and
52 the location where small claims assessment review petitions may be
53 obtained.
54 Each applicant that has filed an application of a property as defined
55 in subdivision one of section eighteen hundred two of this chapter as
56 "Class 1-a", "Class 2", "Class 3" or "Class 4", shall receive a notice
A. 8939 7
1 as to the final determination of the assessment review commission or a
2 statement that the commission has not yet made a determination as to the
3 final assessed valuation which shall be made as soon as the petitioners
4 application is reviewed or heard. Such applicants determinations shall
5 contain the statement: "If you are dissatisfied with the determination
6 of the Assessment Review Commission you may seek judicial review of your
7 assessment under title one of article seven of the real property tax
8 law." Such notice shall also state the last date to file petitions for
9 judicial review. A final determination when rendered shall contain the
10 same statement. Failure to mail any such notice or failure of the appli-
11 cant to receive the same shall not affect the validity of the assess-
12 ment.
13 § 11. Paragraph (b) of subdivision 3 of section 701 of the real prop-
14 erty tax law, as added by chapter 714 of the laws of 1982, is amended to
15 read as follows:
16 (b) In a special assessing unit, the determination, pursuant to
17 section eighteen hundred two of this chapter, of whether real property
18 is included in class one, one-a, two, three or four.
19 § 12. Subparagraph 2 of paragraph (a) of subdivision 3 of section 720
20 of the real property tax law, as amended by chapter 679 of the laws of
21 1986, is amended to read as follows:
22 (2) "Major type of property" in special assessing units, for assess-
23 ments on rolls completed after December thirty-first, nineteen hundred
24 eighty-one, shall mean classes one, one-a, two, three and four as
25 defined in subdivision one of section eighteen hundred two of this chap-
26 ter.
27 § 13. The opening paragraph of subdivision 1 of section 1805 of the
28 real property tax law, as amended by chapter 935 of the laws of 1984, is
29 amended and two new subdivisions 1-a and 1-b are added to read as
30 follows:
31 The assessor of any special assessing unit shall not increase the
32 assessment of any individual parcel classified in class one or class
33 one-a in any one year, as measured from the assessment on the previous
34 year's assessment roll, by more than six percent and shall not increase
35 such assessment by more than twenty percent in any five-year period. The
36 first such five-year period shall be measured from the individual
37 assessment appearing on the assessment roll completed in nineteen
38 hundred eighty; provided that if such parcel would not have been subject
39 to the provisions of this subdivision in nineteen hundred eighty had
40 this subdivision then been in effect, the first such five-year period
41 shall be measured from the first year after nineteen hundred eighty in
42 which this subdivision applied to such parcel or would have applied to
43 such parcel had this subdivision been in effect in such year.
44 1-a. Assessment rolls computed for class one-a shall include any
45 outstanding phased-in increases accrued prior to the effective date of
46 this subdivision pursuant to subdivision three of this section.
47 1-b. Class one-a parcels shall be assessed in a method comparable to
48 class one parcels.
49 § 14. Subdivisions e and f of section 11-208.1 of the administrative
50 code of the city of New York, subdivision e as amended by local law
51 number 41 of the city of New York for the year 1986 and subdivision f as
52 amended by chapter 385 of the laws of 2006, are amended to read as
53 follows:
54 e. As used in this section, the term "income-producing property" means
55 property owned for the purpose of securing an income from the property
56 itself, but shall not include property with an assessed value of forty
A. 8939 8
1 thousand dollars or less, or residential property containing ten or
2 fewer dwelling units or property classified in class one, one-a or two
3 as defined in article eighteen of the real property tax law containing
4 six or fewer dwelling units and one retail store.
5 f. Except in accordance with proper judicial order or as otherwise
6 provided by law, it shall be unlawful for the commissioner, any officer
7 or employee of the department, the president or a commissioner or
8 employee of the tax commission, any person engaged or retained by the
9 department or the tax commission on an independent contract basis, or
10 any person, who, pursuant to this section, is permitted to inspect any
11 income and expense statement or to whom a copy, an abstract or a portion
12 of any such statement is furnished, to divulge or make known in any
13 manner except as provided in this subdivision, the amount of income
14 and/or expense or any particulars set forth or disclosed in any such
15 statement required under this section. The commissioner, the president
16 of the tax commission, or any commissioner or officer or employee of the
17 department or the tax commission charged with the custody of such state-
18 ments shall not be required to produce any income and expense statement
19 or evidence of anything contained in them in any action or proceeding in
20 any court, except on behalf of the department or the tax commission.
21 Nothing herein shall be construed to prohibit the delivery to an owner
22 or his or her duly authorized representative of a certified copy of any
23 statement filed by such owner pursuant to this section or to prohibit
24 the publication of statistics so classified as to prevent the identifi-
25 cation of particular statements and the items thereof, or making known
26 aggregate income and expense information disclosed with respect to prop-
27 erty classified as class four as defined in article eighteen of the real
28 property tax law without identifying information about individual leas-
29 es, or making known a range as determined by the commissioner within
30 which the income and expenses of a property classified as class one-a or
31 class two falls, or the inspection by the legal representatives of the
32 department or of the tax commission of the statement of any owner who
33 shall bring an action to correct the assessment. Any violation of the
34 provisions of this subdivision shall be punished by a fine not exceeding
35 one thousand dollars or by imprisonment not exceeding one year, or both,
36 at the discretion of the court, and if the offender be an officer or
37 employee of the department or the tax commission, the offender shall be
38 dismissed from office.
39 § 15. Subdivision a of section 11-238 of the administrative code of
40 the city of New York, as amended by local law number 27 of the city of
41 New York for the year 2006, is amended to read as follows:
42 a. Imposition of surcharge. A real property tax surcharge is hereby
43 imposed on class one and class one-a property, as defined in section
44 eighteen hundred two of the real property tax law, excluding vacant
45 land, that provides rental income and is not the primary residence of
46 the owner or owners of such class one or class one-a property, or the
47 primary residence of the parent or child of such owner or owners, in an
48 amount equal to zero percent of the net real property taxes for fiscal
49 years beginning on or after July first, two thousand six. As used in
50 this section, "net real property tax" means the real property tax
51 assessed on class one property after deduction for any exemption or
52 abatement received pursuant to the real property tax law or this title.
53 § 16. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of
54 the administrative code of the city of New York, subdivisions a, a-2
55 and a-3 as amended by local law number 24 of the city of New York for
56 the year 2020, subdivision a-1 as amended and subdivision a-5 as added
A. 8939 9
1 by local law number 15 of the city of New York for the year 2011 and
2 subdivision a-4 as amended by local law number 4 of the city of New York
3 for the year 2017, are amended to read as follows:
4 a. A tax lien or tax liens on a property or any component of the
5 amount thereof may be sold by the city as authorized by subdivision b of
6 this section, when such tax lien or tax liens shall have remained unpaid
7 in whole or in part for one year, provided, however, that a tax lien or
8 tax liens on any class one property or on class [two] one-a property
9 [that is a residential condominium or residential cooperative], as such
10 classes of property are defined in subdivision one of section eighteen
11 hundred two of the real property tax law, may be sold by the city only
12 when the real property tax component of such tax lien or tax liens shall
13 have remained unpaid in whole or in part for three years and, in the
14 case of any such class one property that is not vacant land or any such
15 class two property that is a residential condominium or residential
16 cooperative, as such classes of property are defined in subdivision one
17 of section eighteen hundred two of the real property tax law, equals or
18 exceeds the sum of five thousand dollars, or, in the case of any class
19 two residential property owned by a company organized pursuant to arti-
20 cle XI of the state private housing finance law [that is not a residen-
21 tial condominium or a residential cooperative], as such class of proper-
22 ty is defined in subdivision one of section eighteen hundred two of the
23 real property tax law, for two years, and equals or exceeds the sum of
24 five thousand dollars or, in the case of abandoned class one property or
25 abandoned class [two] one-a property [that is a residential condominium
26 or residential cooperative], for eighteen months, and after such sale,
27 shall be transferred, in the manner provided by this chapter, and
28 provided, further, however, that (i) the real property tax component of
29 such tax lien may not be sold pursuant to this subdivision on any: (A)
30 residential real property in class one that is receiving an exemption
31 pursuant to section 11-245.3 or 11-245.4 of this title, or pursuant to
32 section four hundred fifty-eight of the real property tax law with
33 respect to real property purchased with payments received as prisoner of
34 war compensation from the United States government, or pursuant to para-
35 graph (b) or (c) of subdivision two of section four hundred
36 fifty-eight-a of the real property tax law, or where the owner of such
37 residential real property in class one is receiving benefits in accord-
38 ance with department of finance memorandum 05-3, or any successor memo-
39 randum thereto, relating to active duty military personnel, or where the
40 owner of such residential real property in class one has been allowed a
41 credit pursuant to subsection (e) of section six hundred six of the tax
42 law for the calendar year in which the date of the first publication,
43 pursuant to subdivision a of section 11-320 of this chapter, of the
44 notice of sale, occurs or for the calendar year immediately preceding
45 such date; or (B) real property that was granted an exemption pursuant
46 to section four hundred twenty-a, four hundred twenty-b, four hundred
47 forty-six, or four hundred sixty-two of the real property tax law in one
48 of the two fiscal years preceding the date of such sale, provided that:
49 (1) such exemption was granted to such real property upon the applica-
50 tion of a not-for-profit organization that owns such real property on or
51 after the date on which such real property was conveyed to such not-for-
52 profit organization; (2) the real property tax component of such lien
53 arose on or after the date on which such real property was conveyed to
54 such not-for-profit organization; and (3) such not-for-profit organiza-
55 tion is organized or conducted for one of the purposes described in
56 paragraph a or paragraph b of subdivision 1 of section 11-246 of this
A. 8939 10
1 chapter, and (ii) the sewer rents component, sewer surcharges component
2 or water rents component of such tax lien may not be sold pursuant to
3 this subdivision on any one family residential real property in class
4 one or on any two or three family residential real property in class one
5 that is receiving an exemption pursuant to section 11-245.3 or 11-245.4
6 of this title, or pursuant to section four hundred fifty-eight of the
7 real property tax law with respect to real property purchased with
8 payments received as prisoner of war compensation from the United States
9 government, or pursuant to paragraph (b) or (c) of subdivision two of
10 section four hundred fifty-eight-a of the real property tax law, or
11 where the owner of any two or three family residential real property in
12 class one is receiving benefits in accordance with department of finance
13 memorandum 05-3, or any successor memorandum thereto, relating to active
14 duty military personnel, or where the owner of any two or three family
15 residential real property in class one has been allowed a credit pursu-
16 ant to subsection (e) of section six hundred six of the tax law for the
17 calendar year in which the date of the first publication, pursuant to
18 subdivision a of section 11-320 of this chapter, of the notice of sale,
19 occurs or for the calendar year immediately preceding such date. A tax
20 lien or tax liens on any property classified as a class two property,
21 except [a class two property that is a residential condominium or resi-
22 dential cooperative], or a class two residential property owned by a
23 company organized pursuant to article XI of the state private housing
24 finance law [that is not a residential condominium or a residential
25 cooperative], or class three property, as such classes of property are
26 defined in subdivision one of section eighteen hundred two of the real
27 property tax law, shall not be sold by the city unless such tax lien or
28 tax liens include a real property tax component as of the date of the
29 first publication, pursuant to subdivision a of section 11-320 of this
30 chapter, of the notice of sale. Notwithstanding any provision of this
31 subdivision to the contrary, any such tax lien or tax liens that remain
32 unpaid in whole or in part after such date may be sold regardless of
33 whether such tax lien or tax liens include a real property tax compo-
34 nent. A tax lien or tax liens on a property classified as a class four
35 property, as such class of property is defined in subdivision one of
36 section eighteen hundred two of the real property tax law, shall not be
37 sold by the city unless such tax lien or tax liens include a real prop-
38 erty tax component or sewer rents component or sewer surcharges compo-
39 nent or water rents component or emergency repair charges component,
40 where such emergency repair charges accrued on or after January first,
41 two thousand six and are made a lien pursuant to section 27-2144 of this
42 code, as of the date of the first publication, pursuant to subdivision a
43 of section 11-320 of this chapter, of the notice of sale, provided,
44 however, that any tax lien or tax liens that remain unpaid in whole or
45 in part after such date may be sold regardless of whether such tax lien
46 or tax liens include a real property tax component, sewer rents compo-
47 nent, sewer surcharges component, water rents component or emergency
48 repair charges component. For purposes of this subdivision, the words
49 "real property tax" shall not include an assessment or charge upon prop-
50 erty imposed pursuant to section 25-411 of the administrative code. A
51 sale of a tax lien or tax liens shall include, in addition to such lien
52 or liens that have remained unpaid in whole or in part for one year, or,
53 in the case of any class one property or class [two] one-a property
54 [that is a residential condominium or residential cooperative], when the
55 real property tax component of such lien or liens has remained unpaid in
56 whole or in part for three years, or, in the case of any class two resi-
A. 8939 11
1 dential property owned by a company organized pursuant to article XI of
2 the state private housing finance law [that is not a residential condo-
3 minium or a residential cooperative], when the real property tax compo-
4 nent of such lien or liens has remained unpaid in whole or in part for
5 two years, and equals or exceeds the sum of five thousand dollars, any
6 taxes, assessments, sewer rents, sewer surcharges, water rents, any
7 other charges that are made a lien subject to the provisions of this
8 chapter, the costs of any advertisements and notices given pursuant to
9 this chapter, any other charges that are due and payable, a surcharge
10 pursuant to section 11-332 of this chapter, and interest and penalties
11 thereon or such component of the amount thereof as shall be determined
12 by the commissioner of finance. The commissioner of finance may promul-
13 gate rules defining "abandoned" property, as such term is used in this
14 subdivision.
15 a-1. A subsequent tax lien or tax liens on a property or any component
16 of the amount thereof may be sold by the city pursuant to this chapter,
17 provided, however, that notwithstanding any provision in this chapter to
18 the contrary, such tax lien or tax liens may be sold regardless of
19 whether such tax lien or tax liens have remained unpaid in whole or in
20 part for one year and, notwithstanding any provision in this chapter to
21 the contrary, in the case of any class one property or class [two] one-a
22 property [that is a residential condominium or residential cooperative]
23 or, beginning January first, two thousand twelve, in the case of any
24 class two residential property owned by a company organized pursuant to
25 article XI of the state private housing finance law [that is not a resi-
26 dential condominium or a residential cooperative], such tax lien or tax
27 liens may be sold if the real property tax component of such tax lien or
28 tax liens has remained unpaid in whole or in part for one year, and
29 provided, further, however, that (i) the real property tax component of
30 such tax lien may not be sold pursuant to this subdivision on any resi-
31 dential real property in class one that is receiving an exemption pursu-
32 ant to section 11-245.3 or 11-245.4 of this title, or pursuant to
33 section four hundred fifty-eight of the real property tax law with
34 respect to real property purchased with payments received as prisoner of
35 war compensation from the United States government, or pursuant to para-
36 graph (b) or (c) of subdivision two of section four hundred
37 fifty-eight-a of the real property tax law, or where the owner of such
38 residential real property in class one is receiving benefits in accord-
39 ance with department of finance memorandum 05-3, or any successor memo-
40 randum thereto, relating to active duty military personnel, or where the
41 owner of such residential real property in class one has been allowed a
42 credit pursuant to subsection (e) of section six hundred six of the tax
43 law for the calendar year in which the date of the first publication,
44 pursuant to subdivision a of section 11-320 of this chapter, of the
45 notice of sale, occurs or for the calendar year immediately preceding
46 such date and (ii) the sewer rents component, sewer surcharges component
47 or water rents component of such tax lien may not be sold pursuant to
48 this subdivision on any one family residential real property in class
49 one or on any two or three family residential real property in class one
50 that is receiving an exemption pursuant to section 11-245.3 or 11-245.4
51 of this title, or pursuant to section four hundred fifty-eight of the
52 real property tax law with respect to real property purchased with
53 payments received as prisoner of war compensation from the United States
54 government, or pursuant to paragraph (b) or (c) of subdivision two of
55 section four hundred fifty-eight-a of the real property tax law, or
56 where the owner of any two or three family residential real property in
A. 8939 12
1 class one is receiving benefits in accordance with department of finance
2 memorandum 05-3, or any successor memorandum thereto, relating to active
3 duty military personnel, or where the owner of any two or three family
4 residential real property in class one has been allowed a credit pursu-
5 ant to subsection (e) of section six hundred six of the tax law for the
6 calendar year in which the date of the first publication, pursuant to
7 subdivision a of section 11-320 of this chapter, of the notice of sale,
8 occurs or for the calendar year immediately preceding such date. For
9 purposes of this subdivision, the term "subsequent tax lien or tax
10 liens" shall mean any tax lien or tax liens on property that become such
11 on or after the date of sale of any tax lien or tax liens on such prop-
12 erty that have been sold pursuant to this chapter, provided that the
13 prior tax lien or tax liens remain unpaid as of the date of the first
14 publication, pursuant to subdivision a of section 11-320 of this chap-
15 ter, of the notice of sale of the subsequent tax lien or tax liens. A
16 subsequent tax lien or tax liens on any property classified as a class
17 two property, except [a class two property that is a residential condo-
18 minium or residential cooperative, or] a class two residential property
19 owned by a company organized pursuant to article XI of the state private
20 housing finance law [that is not a residential condominium or a residen-
21 tial cooperative], or class three property, as such classes of property
22 are defined in subdivision one of section eighteen hundred two of the
23 real property tax law, shall not be sold by the city unless such tax
24 lien or tax liens include a real property tax component as of the date
25 of the first publication, pursuant to subdivision a of section 11-320 of
26 this chapter, of the notice of sale. Notwithstanding any provision of
27 this subdivision to the contrary, any such tax lien or tax liens that
28 remain unpaid in whole or in part after such date may be sold regardless
29 of whether such tax lien or tax liens include a real property tax compo-
30 nent. A subsequent tax lien or tax liens on a property classified as a
31 class four property, as such class of property is defined in subdivision
32 one of section eighteen hundred two of the real property tax law, shall
33 not be sold by the city unless such tax lien or tax liens include a real
34 property tax component or sewer rents component or sewer surcharges
35 component or water rents component or emergency repair charges compo-
36 nent, where such emergency repair charges accrued on or after January
37 first, two thousand six and are made a lien pursuant to section 27-2144
38 of this code, as of the date of the first publication, pursuant to
39 subdivision a of section 11-320 of this chapter, of the notice of sale,
40 provided, however, that any tax lien or tax liens that remain unpaid in
41 whole or in part after such date may be sold regardless of whether such
42 tax lien or tax liens include a real property tax component, sewer rents
43 component, sewer surcharges component, water rents component or emergen-
44 cy repair charges component. For purposes of this subdivision, the words
45 "real property tax" shall not include an assessment or charge upon prop-
46 erty imposed pursuant to section 25-411 of the administrative code.
47 Nothing in this subdivision shall be deemed to limit the rights
48 conferred by section 11-332 of this chapter on the holder of a tax lien
49 certificate with respect to a subsequent tax lien.
50 a-2. In addition to any sale authorized pursuant to subdivision a or
51 subdivision a-1 of this section and notwithstanding any provision of
52 this chapter to the contrary, beginning on December first, two thousand
53 seven, the water rents, sewer rents and sewer surcharges components of
54 any tax lien on any class of real property, as such real property is
55 classified in subdivision one of section eighteen hundred two of the
56 real property tax law, may be sold by the city pursuant to this chapter,
A. 8939 13
1 where such water rents, sewer rents or sewer surcharges component of
2 such tax lien, as of the date of the first publication, pursuant to
3 subdivision a of section 11-320 of this chapter, of the notice of sale:
4 (i) shall have remained unpaid in whole or in part for one year and (ii)
5 equals or exceeds the sum of one thousand dollars or, beginning on March
6 first, two thousand eleven, in the case of any two or three family resi-
7 dential real property in class one, for one year, and equals or exceeds
8 the sum of two thousand dollars, or, beginning on January first, two
9 thousand twenty-one, in the case of any two or three family residential
10 real property in class one, for one year, and equals or exceeds the sum
11 of three thousand dollars, or, beginning on January first, two thousand
12 twelve, in the case of any class two residential property owned by a
13 company organized pursuant to article XI of the state private housing
14 finance law [that is not a residential condominium or a residential
15 cooperative], as such class of property is defined in subdivision one of
16 section eighteen hundred two of the real property tax law, for two
17 years, and equals or exceeds the sum of five thousand dollars; provided,
18 however, that such water rents, sewer rents or sewer surcharges compo-
19 nent of such tax lien may not be sold pursuant to this subdivision on
20 any one family residential real property in class one or on any two or
21 three family residential real property in class one that is receiving an
22 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or
23 pursuant to section four hundred fifty-eight of the real property tax
24 law with respect to real property purchased with payments received as
25 prisoner of war compensation from the United States government, or
26 pursuant to paragraph (b) or (c) of subdivision two of section four
27 hundred fifty-eight-a of the real property tax law, or where the owner
28 of any two or three family residential real property in class one is
29 receiving benefits in accordance with department of finance memorandum
30 05-3, or any successor memorandum thereto, relating to active duty mili-
31 tary personnel, or where the owner of any two or three family residen-
32 tial real property in class one has been allowed a credit pursuant to
33 subsection (e) of section six hundred six of the tax law for the calen-
34 dar year in which the date of the first publication, pursuant to subdi-
35 vision a of section 11-320 of this chapter, of the notice of sale,
36 occurs or for the calendar year immediately preceding such date. After
37 such sale, any such water rents, sewer rents or sewer surcharges compo-
38 nent of such tax lien may be transferred in the manner provided by this
39 chapter.
40 a-3. In addition to any sale authorized pursuant to subdivision a or
41 subdivision a-1 of this section and notwithstanding any provision of
42 this chapter to the contrary, beginning on December first, two thousand
43 seven, a subsequent tax lien on any class of real property, as such real
44 property is classified in subdivision one of section eighteen hundred
45 two of the real property tax law, may be sold by the city pursuant to
46 this chapter, regardless of whether such subsequent tax lien, or any
47 component of the amount thereof, shall have remained unpaid in whole or
48 in part for one year, and regardless of whether such subsequent tax
49 lien, or any component of the amount thereof, equals or exceeds the sum
50 of one thousand dollars or beginning on March first, two thousand elev-
51 en, in the case of any two or three family residential real property in
52 class one, a subsequent tax lien on such property may be sold by the
53 city pursuant to this chapter, regardless of whether such subsequent tax
54 lien, or any component of the amount thereof, shall have remained unpaid
55 in whole or in part for one year, and regardless of whether such subse-
56 quent tax lien, or any component of the amount thereof, equals or
A. 8939 14
1 exceeds the sum of two thousand dollars, or, beginning on January first,
2 two thousand twenty-one, in the case of any two or three family residen-
3 tial real property in class one, a subsequent tax lien on such property
4 may be sold by the city pursuant to this chapter, regardless of whether
5 such subsequent tax lien, or any component of the amount thereof, shall
6 have remained unpaid in whole or in part for one year, and regardless of
7 whether such subsequent tax lien, or any component of the amount there-
8 of, equals or exceeds the sum of three thousand dollars, or, beginning
9 on January first, two thousand twelve, in the case of any class two
10 residential property owned by a company organized pursuant to article XI
11 of the state private housing finance law [that is not a residential
12 condominium or a residential cooperative], as such class of property is
13 defined in subdivision one of section eighteen hundred two of the real
14 property tax law, a subsequent tax lien on such property may be sold by
15 the city pursuant to this chapter, regardless of whether such subsequent
16 tax lien, or any component of the amount thereof, shall have remained
17 unpaid in whole or in part for two years, and regardless of whether such
18 subsequent tax lien, or any component of the amount thereof, equals or
19 exceeds the sum of five thousand dollars; provided, however, that such
20 subsequent tax lien may not be sold pursuant to this subdivision on any
21 one family residential real property in class one or on any two or three
22 family residential real property in class one that is receiving an
23 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or
24 pursuant to section four hundred fifty-eight of the real property tax
25 law with respect to real property purchased with payments received as
26 prisoner of war compensation from the United States government, or
27 pursuant to paragraph (b) or (c) of subdivision two of section four
28 hundred fifty-eight-a of the real property tax law, or where the owner
29 of any two or three family residential real property in class one is
30 receiving benefits in accordance with department of finance memorandum
31 05-3, or any successor memorandum thereto, relating to active duty mili-
32 tary personnel, or where the owner of any two or three family residen-
33 tial real property in class one has been allowed a credit pursuant to
34 subsection (e) of section six hundred six of the tax law for the calen-
35 dar year in which the date of the first publication, pursuant to subdi-
36 vision a of section 11-320 of this chapter, of the notice of sale,
37 occurs or for the calendar year immediately preceding such date. After
38 such sale, any such subsequent tax lien, or any component of the amount
39 thereof, may be transferred in the manner provided by this chapter. For
40 purposes of this subdivision, the term "subsequent tax lien" shall mean
41 the water rents, sewer rents or sewer surcharges component of any tax
42 lien on property that becomes such on or after the date of sale of any
43 water rents, sewer rents or sewer surcharges component of any tax lien
44 on such property that has been sold pursuant to this chapter, provided
45 that the prior tax lien remains unpaid as of the date of the first
46 publication, pursuant to subdivision a of section 11-320 of this chap-
47 ter, of the notice of sale of the subsequent tax lien. Nothing in this
48 subdivision shall be deemed to limit the rights conferred by section
49 11-332 of this chapter on the holder of a tax lien certificate with
50 respect to a subsequent tax lien.
51 a-4. In addition to any sale authorized pursuant to subdivision a,
52 a-1, a-2 or a-3 of this section and notwithstanding any provision of
53 this chapter to the contrary, beginning on March first, two thousand
54 eleven, the emergency repair charges component or alternative enforce-
55 ment expenses and fees component, where such emergency repair charges
56 accrued on or after January first, two thousand six and are made a lien
A. 8939 15
1 pursuant to section 27-2144 of this code, or where such alternative
2 enforcement expenses and fees are made a lien pursuant to section
3 27-2153 of this code, of any tax lien on any class of real property, as
4 such real property is defined in subdivision one of section eighteen
5 hundred two of the real property tax law, may be sold by the city pursu-
6 ant to this chapter, where such emergency repair charges component or
7 alternative enforcement expenses and fees component of such tax lien, as
8 of the date of the first publication, pursuant to subdivision a of
9 section 11-320 of this chapter, of the notice of sale: (i) shall have
10 remained unpaid in whole or in part for one year, and (ii) equals or
11 exceeds the sum of one thousand dollars or, beginning on January first,
12 two thousand twelve, in the case of any class two residential property
13 owned by a company organized pursuant to article XI of the state private
14 housing finance law [that is not a residential condominium or a residen-
15 tial cooperative], as such class of property is defined in subdivision
16 one of section eighteen hundred two of the real property tax law, for
17 two years, and equals or exceeds the sum of five thousand dollars;
18 provided, however, that such emergency repair charges component or
19 alternative enforcement expenses and fees component of such tax lien may
20 only be sold pursuant to this subdivision on any one, two or three fami-
21 ly residential real property in class one, where such one, two or three
22 family residential property in class one is not the primary residence of
23 the owner. After such sale, any such emergency repair charges component
24 or alternative enforcement expenses and fees component of such tax lien
25 may be transferred in the manner provided by this chapter.
26 a-5. In addition to any sale authorized pursuant to subdivision a,
27 a-1, a-2 or a-3 of this section and notwithstanding any provision of
28 this chapter to the contrary, beginning on March first, two thousand
29 eleven, a subsequent tax lien on any class of real property, or begin-
30 ning on January first, two thousand twelve in the case of any class two
31 residential property owned by a company organized pursuant to article XI
32 of the state private housing finance law [that is not a residential
33 condominium or a residential cooperative], a subsequent tax lien on such
34 property, may be sold by the city pursuant to this chapter, regardless
35 of the length of time such subsequent tax lien, or any component of the
36 amount thereof, shall have remained unpaid, and regardless of the amount
37 of such subsequent tax lien. After such sale, any such subsequent tax
38 lien, or any component of the amount thereof, may be transferred in the
39 manner provided by this chapter. For purposes of this subdivision, the
40 term "subsequent tax lien" shall mean the emergency repair charges
41 component or alternative enforcement expenses and fees component, where
42 such emergency repair charges accrued on or after January first, two
43 thousand six and are made a lien pursuant to section 27-2144 of this
44 code, or where such alternative enforcement expenses and fees are made a
45 lien pursuant to section 27-2153 of this code, of any tax lien on prop-
46 erty that becomes such on or after the date of sale of any emergency
47 repair charges component or alternative enforcement expenses and fees
48 component, of any tax lien on such property that has been sold pursuant
49 to this chapter, provided that the prior tax lien remains unpaid as of
50 the date of the first publication, pursuant to subdivision a of section
51 11-320 of this chapter, of the notice of sale of the subsequent tax
52 lien. Nothing in this subdivision shall be deemed to limit the rights
53 conferred by section 11-332 of this chapter on the holder of a tax lien
54 certificate with respect to a subsequent tax lien.
55 § 17. Subparagraph (i) of paragraph 2 of subdivision b and subpara-
56 graph (ii) of paragraph 1 of subdivision h of section 11-320 of the
A. 8939 16
1 administrative code of the city of New York, subparagraph (i) of para-
2 graph 2 of subdivision b as amended by local law number 147 of the city
3 of New York for the year 2013 and subparagraph (ii) of paragraph 1 of
4 subdivision h as added by local law number 15 of the city of New York
5 for the year 2011, are amended to read as follows:
6 (i) Such notices shall also include, with respect to any property
7 owner in class one, class one-a or class two, as such classes of proper-
8 ty are defined in subdivision one of section eighteen hundred two of the
9 real property tax law, an exemption eligibility checklist. The exemption
10 eligibility checklist shall also be posted on the website of the depart-
11 ment no later than the first business day after March fifteenth of every
12 year prior to the date of sale, and shall continue to be posted on such
13 website until ten days prior to the date of sale. Within ten business
14 days of receipt of a completed exemption eligibility checklist from such
15 property owner, provided that such receipt occurs prior to the date of
16 sale of any tax lien or tax liens on his or her property, the department
17 of finance shall review such checklist to determine, based on the infor-
18 mation provided by the property owner, whether such property owner could
19 be eligible for any exemption, credit or other benefit that would enti-
20 tle them to be excluded from a tax lien sale and, if the department
21 determines that such property owner could be eligible for any such
22 exemption, credit or other benefit, shall mail such property owner an
23 application for the appropriate exemption, credit or other benefit. If,
24 within twenty business days of the date the department mailed such
25 application, the department has not received a completed application
26 from such property owner, the department shall mail such property owner
27 a second application, and shall telephone the property owner, if the
28 property owner has included his or her telephone number on the exemption
29 eligibility checklist.
30 (ii) all class two residential property owned by a company organized
31 pursuant to article XI of the state private housing finance law [that is
32 not a residential condominium or a residential cooperative] on which any
33 tax lien has been sold pursuant to subdivision a, a-2 or a-4 of section
34 11-319 of this title.
35 § 18. Subdivision (a) of section 11-354 of the administrative code of
36 the city of New York, as amended by local law number 37 of the city of
37 New York for the year 1996, is amended to read as follows:
38 (a) Notwithstanding any other provision of law and notwithstanding any
39 omission to hold a tax lien sale, whenever any tax, assessment, sewer
40 rent, sewer surcharge, water rent, any charge that is made a lien
41 subject to the provisions of this chapter or chapter four of this title,
42 or interest and penalties thereon, has been due and unpaid for a period
43 of at least one year from the date on which the tax, assessment or other
44 legal charge represented thereby became a lien, or in the case of any
45 class one property or any class [two] one-a property [that is a residen-
46 tial condominium or residential cooperative], as such classes of proper-
47 ty are defined in subdivision one of section eighteen hundred two of the
48 real property tax law, or in the case of a multiple dwelling owned by a
49 company organized pursuant to article XI of the private housing finance
50 law with the consent and approval of the department of housing preserva-
51 tion and development, for a period of at least three years from the date
52 on which the tax, assessment or other legal charge became a lien, the
53 city, as owner of a tax lien, may maintain an action in the supreme
54 court to foreclose such lien. Such action shall be governed by the
55 procedures set forth in section 11-335 of this chapter; provided, howev-
56 er, that such parcel shall only be sold to the highest responsible
A. 8939 17
1 bidder. Such purchaser shall be deemed qualified as a responsible bidder
2 pursuant to such criteria as are established in rules promulgated by the
3 commissioner of finance after consultation with the commissioner of
4 housing preservation and development.
5 § 19. The opening paragraph of subdivision 4 of section 11-401 of the
6 administrative code of the city of New York, as added by local law
7 number 152 of the city of New York for the year 2017, is amended to read
8 as follows:
9 "Distressed property." Any parcel of class one, class one-a or class
10 two real property that is subject to a tax lien or liens that result
11 from an environmental control board judgment against the owner of such
12 parcel for a building code violation with a lien or liens to value
13 ratio, as determined by the commissioner of finance, equal to or greater
14 than 25 percent or any parcel of class one, class one-a, or class two
15 real property that is subject to a tax lien or liens with a lien or
16 liens to value ratio, as determined by the commissioner of finance,
17 equal to or greater than fifteen percent and that meets one of the
18 following two criteria:
19 § 20. Subdivisions a and b of section 11-401.1 of the administrative
20 code of the city of New York, as added by local law number 37 of the
21 city of New York for the year 1996, are amended to read as follows:
22 a. The commissioner of finance shall, not less than sixty days preced-
23 ing the date of the sale of a tax lien or tax liens, submit to the
24 commissioner of housing preservation and development a description by
25 block and lot, or by such other identification as the commissioner of
26 finance may deem appropriate, of any parcel of class one, class one-a or
27 class two real property on which there is a tax lien that may be fore-
28 closed by the city. The commissioner of housing preservation and devel-
29 opment shall determine, and direct the commissioner of finance, not less
30 than ten days preceding the date of the sale of a tax lien or tax liens,
31 whether any such parcel is a distressed property as defined in subdivi-
32 sion four of section 11-401 of this chapter. Any tax lien on a parcel so
33 determined to be a distressed property shall not be included in such
34 sale. In connection with a subsequent sale of a tax lien or tax liens,
35 the commissioner of finance may, not less than sixty days preceding the
36 date of the sale, resubmit to the commissioner of housing preservation
37 and development a description by block and lot, or by such other iden-
38 tification as the commissioner of finance may deem appropriate, of any
39 parcel of class one, class one-a or class two real property that was
40 previously determined to be a distressed property pursuant to this para-
41 graph and on which there is a tax lien that may be included in such
42 sale. The commissioner of housing preservation and development shall
43 determine, and direct the commissioner of finance, not less than ten
44 days preceding the date of the sale, whether such parcel remains a
45 distressed property. If the commissioner of housing preservation and
46 development determines that the parcel is not a distressed property,
47 then the tax lien on the parcel may be included in the sale.
48 b. The commissioner of housing preservation and development may peri-
49 odically review whether a parcel of class one, class one-a or class two
50 real property that is subject to subdivision c of this section or subdi-
51 vision j of section 11-412.1 of this chapter remains a distressed prop-
52 erty. If the commissioner determines that the parcel is not a distressed
53 property as defined in subdivision four of section 11-401 of this chap-
54 ter, then the parcel shall not be subject to such subdivisions.
A. 8939 18
1 § 21. Subdivision b of section 11-404 of the administrative code of
2 the city of New York, as amended by local law number 37 of the city of
3 New York for the year 1996, is amended to read as follows:
4 b. A tax lien on any class one property or any class [two] one-a prop-
5 erty [that is a residential condominium or residential cooperative], as
6 such classes of property are defined in subdivision one of section eigh-
7 teen hundred two of the real property tax law, and on any multiple
8 dwelling owned by a company organized pursuant to article XI of the
9 private housing finance law with the consent and approval of the depart-
10 ment of housing preservation and development, shall not be foreclosed in
11 the manner provided in this chapter until such tax lien has been due and
12 unpaid for a period of at least three years from the date on which the
13 tax, assessment or other legal charge represented thereby became a lien.
14 § 22. Paragraph 5 of subdivision c of section 11-405 of the adminis-
15 trative code of the city of New York, as added by local law number 37 of
16 the city of New York for the year 1996, is amended to read as follows:
17 (5) Notwithstanding paragraph one, two or three of this subdivision,
18 with respect to installment agreements duly made, executed and filed on
19 or after the date on which this paragraph takes effect, the commissioner
20 of finance may also exclude or thereafter remove from such list any
21 parcel of class one, class one-a or class two real property, other than
22 a parcel described in paragraph four of this subdivision, as to which an
23 agreement has been duly made, executed and filed with such commissioner
24 for the payment of the delinquent taxes, assessments or other legal
25 charges, and the interest and penalties thereon, in installments. The
26 first installment thereof shall be paid upon the filing of the install-
27 ment agreement with the commissioner and shall be in an amount equal to
28 not less than fifteen percent of the total amount of such delinquent
29 taxes, assessments or other legal charges and the interest and penalties
30 thereon. The remaining installments, which shall be twice the number of
31 unpaid quarters of real estate taxes or the equivalent thereof, but
32 which shall in no event exceed thirty-two in number, shall be payable
33 quarterly on the first days of July, October, January and April. For the
34 purposes of calculating the number of such remaining installments,
35 unpaid real estate taxes that are due and payable on other than a quar-
36 terly basis shall be deemed to be payable on a quarterly basis.
37 § 23. Section 581 of the real property tax law is REPEALED.
38 § 24. Subdivision 1 of section 339-y of the real property law, as
39 amended by chapter 218 of the laws of 1986, subparagraph (ii) of para-
40 graph (d) as amended by chapter 223 of the laws of 1989, paragraph (e)
41 as added by chapter 135 of the laws of 1996 and paragraph (f) as added
42 by chapter 293 of the laws of 1997, is amended to read as follows:
43 1. (a) With respect to all property submitted to the provisions of
44 this article other than property which is the subject of a qualified
45 leasehold condominium, each unit and its common interest, not including
46 any personal property, shall be deemed to be a parcel and shall be
47 subject to separate assessment and taxation by each assessing unit,
48 school district, special district, county or other taxing unit, for all
49 types of taxes authorized by law including but not limited to special ad
50 valorem levies and special assessments, except that the foregoing shall
51 not apply to a unit held under lease or sublease unless the declaration
52 requires the unit owner to pay all taxes attributable to his unit.
53 Neither the building, the property nor any of the common elements shall
54 be deemed to be a parcel.
A. 8939 19
1 (b) [In no event shall the aggregate of the assessment of the units
2 plus their common interests exceed the total valuation of the property
3 were the property assessed as a parcel.
4 (c)] For the purposes of this and the next succeeding section the
5 terms "assessing unit", "assessment", "parcel", "special ad valorem
6 levy", "special assessment", "special district", "taxation" and "taxes"
7 shall have the meanings specified in section one hundred two of the real
8 property tax law.
9 [(d) The provisions of paragraph (b) of this subdivision shall not
10 apply to such real property classified within:
11 (i) on and after January first, nineteen hundred eighty-six, class one
12 of section one thousand eight hundred two of the real property tax law;
13 or
14 (ii) on and after January first, nineteen hundred eighty-four, the
15 homestead class of an approved assessing unit which has adopted the
16 provisions of section one thousand nine hundred three of the real prop-
17 erty tax law, or the homestead class of the portion outside an approved
18 assessing unit of an eligible split school district which has adopted
19 the provisions of section nineteen hundred three-a of the real property
20 tax law; provided, however, that, in an approved assessing unit which
21 adopted the provisions of section one thousand nine hundred three of the
22 real property tax law prior to the effective date of this subdivision,
23 paragraph (b) of this subdivision shall apply to all such real property
24 (i) which is classified within the homestead class pursuant to paragraph
25 one of subdivision (e) of section one thousand nine hundred one of the
26 real property tax law and (ii) which, regardless of classification, was
27 on the assessment roll prior to the effective date of this subdivision
28 unless the governing body of such approved assessing unit provides by
29 local law adopted after a public hearing, prior to the taxable status
30 date of such assessing unit next occurring after December thirty-first,
31 nineteen hundred eighty-three, that such paragraph (b) shall not apply
32 to such real property to which this clause applies. Provided further,
33 however, real property subject to the provisions of this subparagraph
34 shall be assessed pursuant to subdivision two of section five hundred
35 eighty-one of the real property tax law.
36 (e)] (c) On the first assessment roll with a taxable status date on or
37 after the effective date of a declaration filed with the recording offi-
38 cer and on every assessment roll thereafter, the assessor shall enter
39 each unit as a parcel, as provided in paragraph (a) of this subdivision,
40 based upon the condition and ownership of each such unit on the appro-
41 priate valuation and taxable status dates. Units owned by a developer
42 may be entered as a single parcel with a parcel description correspond-
43 ing to the entire development, including the land under such develop-
44 ment, and excluding those units appearing separately. Upon the first
45 assessment roll where each unit is separately assessed, only an individ-
46 ual unit and its common interest shall constitute a parcel.
47 [(f) The provisions of paragraph (b) of this subdivision shall not
48 apply to a converted condominium unit in a municipal corporation other
49 than a special assessing unit, which has adopted, prior to the taxable
50 status date of the assessment roll upon which its taxes will be levied,
51 a local law or, for a school district, a resolution providing that the
52 provisions of paragraph (b) of this subdivision shall not apply to a
53 converted condominium unit within that municipal corporation. A
54 converted condominium unit for purposes of this paragraph shall mean a
55 dwelling unit held in condominium form of ownership that has previously
56 been on an assessment roll as a dwelling unit in other than condominium
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1 form of ownership, and has not been previously subject to the provisions
2 of paragraph (b) of this subdivision.]
3 § 25. This act shall take effect on the first of January next succeed-
4 ing the date on which it shall have become a law and shall apply to
5 assessment rolls prepared pursuant to a taxable status date occurring on
6 or after such date. Effective immediately, the addition, amendment
7 and/or repeal of any rule or regulation necessary for the implementation
8 of this act on its effective date are authorized to be made and
9 completed on or before such effective date.
