STATE OF NEW YORK
________________________________________________________________________
9265
IN ASSEMBLY
February 9, 2012
___________
Introduced by M. of A. HOOPER -- read once and referred to the Committee
on Local Governments
AN ACT to amend the county law and the New York state urban development
corporation act, in relation to creating land banks for the acquisi-
tion, management, planning and reuse of vacant and abandoned property
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The county law is amended by adding a new section 55 to
2 read as follows:
3 § 55. Authorization to create a land bank. 1. As used in this section,
4 a "land bank" is a public corporation established to assist or engage in
5 the process of the effective conversion of vacant, abandoned and tax-
6 delinquent properties to productive use. Vacant and/or abandoned proper-
7 ty shall be deemed to be residential, commercial, and industrial build-
8 ings and empty lots that either threaten public safety including public
9 nuisances; and/or have been subject to the neglect of fundamental duties
10 of property ownership including, but not limited to, failure to pay
11 taxes or utility bills, defaults on mortgages, and liens against proper-
12 ty. Such process may, consistent with municipal land use and strategic
13 plans include, but need not be limited to, acquisition of land, leasing
14 and sales of land and structures, expedited foreclosure and title clear-
15 ance, administration, inventory and assessment of existing parcels and
16 structures, planning for reuse consistent with local plans and reinvest-
17 ment strategies, property maintenance, rehabilitation and management,
18 demolition, disassembly and salvage and providing for assistance for
19 nonprofit organizations involved in the rehabilitation and redevelopment
20 of properties.
21 2. The legislative body of any county may adopt a resolution calling
22 upon the state urban development corporation to establish a subsidiary
23 corporation to perform the functions of a land bank pursuant to section
24 twelve of the New York state urban development corporation act. When
25 authorized by resolution of a county legislative body, the municipality
26 may transfer vacant and/or abandoned property to such a land bank corpo-
27 ration operating within its jurisdiction.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14368-01-2
A. 9265 2
1 § 2. Section 3 of section 1 of chapter 174 of the laws of 1968,
2 constituting the New York state urban development corporation act, is
3 amended by adding a new subdivision 31 to read as follows:
4 (31) "Land bank" is a public corporation established to assist or
5 engage in the process of the effective conversion of vacant, abandoned
6 and tax-delinquent properties to productive use. Vacant and/or abandoned
7 property shall be deemed to be residential, commercial, and industrial
8 buildings and empty lots that either threaten public safety including
9 public nuisances; and/or have been subject to the neglect of fundamental
10 duties of property ownership including but not limited to failure to pay
11 taxes or utility bills, defaults on mortgages, and liens against proper-
12 ty. Such process may, consistent with municipal land use and strategic
13 plans, include, but need not be limited to acquisition of land, leasing
14 and sales of land and structures, expedited foreclosure and title clear-
15 ance, administration, inventory and assessment of existing parcels and
16 structures, planning for reuse consistent with local plans and rein-
17 vestment strategies, property maintenance, rehabilitation and manage-
18 ment, demolition, disassembly and salvage and providing for assistance
19 for nonprofit organizations involved in the rehabilitation and redevel-
20 opment of properties.
21 § 3. Section 12 of section 1 of chapter 174 of the laws of 1968,
22 constituting the New York state urban development corporation act, is
23 amended by adding a new subdivision 1-a to read as follows:
24 (1-a) (a) Upon receipt of a resolution approved by a majority of the
25 legislative body of any county, the corporation shall establish a
26 subsidiary corporation to perform the functions of a land bank pursuant
27 to subdivision thirty-one of section three of this act. The directors of
28 such subsidiary shall include two appointees by both the chief elected
29 officer and legislative body of the county petitioning for the creation
30 of the subsidiary corporation. Members of the subsidiary shall be
31 persons who have demonstrated special interest, experience, or education
32 in urban and/or regional planning, real estate, community development,
33 neighborhood preservation, historic preservation, finance or related
34 areas. The corporation may condition the creation of a subsidiary land
35 bank on an agreement from the petitioning county to deed not less than
36 fifty percent of the vacant and abandoned property held by the munici-
37 pality to the subsidiary land bank.
38 (b) Notwithstanding any other provision of law, a subsidiary land bank
39 may institute a proceeding pursuant to article 19-A of the real property
40 actions and proceedings law.
41 (c) Notwithstanding any other provision of law, a subsidiary land bank
42 with agreement therefor from the county where property is located, may
43 borrow against future tax revenue increases. In addition, upon receiving
44 such agreement a subsidiary land bank may also borrow against future
45 savings associated with the decrease in costs on a block or multiple
46 blocks cleared and reverting to green space.
47 (d) Notwithstanding any other provision of law, a subsidiary land bank
48 may, upon such terms as it deems appropriate, convey title to any prop-
49 erty to which it obtains title pursuant to a proceeding pursuant to the
50 provisions of paragraph (a) of this subdivision or of article 19-A of
51 the real property actions and proceedings law to a private purchaser
52 provided such purchaser resides at the property as his or her primary
53 residence for a period of no less than two years. During the initial two
54 years after the conveyance to the private purchaser, the property shall
55 be exempt from ad valorem real estate taxes, provided the purchaser
56 continues to reside at the property as provided in this paragraph.
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1 Thereafter, or earlier if the purchaser ceases to reside at the property
2 as his or her primary residence, the property shall be placed back on
3 the tax rolls and shall be subject to full taxation, unless it is other-
4 wise eligible for credits against such taxation.
5 § 4. This act shall take effect immediately.
