S07770 Summary:

BILL NOS07770
 
SAME ASSAME AS UNI. A10737
 
SPONSORSTAVISKY
 
COSPNSRHASSELL-THOMPSON
 
MLTSPNSR
 
Amd SS1802, 1805, 467-a, 499-aaa, 499-aaaa, 522, 523-b, 701 & 720, RPT L; amd NYC Ad Cd, generally; amd SS163 & 164-b, NYC Chart
 
Relates to establishing a new classification for properties held in condominium and cooperative form for assessment purposes.
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S07770 Actions:

BILL NOS07770
 
06/18/2012REFERRED TO RULES
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S07770 Floor Votes:

There are no votes for this bill in this legislative session.
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S07770 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 7770                                                 A. 10737
 
                SENATE - ASSEMBLY
 
                                      June 18, 2012
                                       ___________
 
        IN  SENATE  --  Introduced  by  Sen.  STAVISKY -- read twice and ordered
          printed, and when printed to be committed to the Committee on Rules
 
        IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M.  of
          A.  Braunstein)  --  read  once  and referred to the Committee on Real
          Property Taxation
 
        AN ACT to amend the real property tax law, the  administrative  code  of

          the  city  of  New  York and the New York city charter, in relation to
          establishing a new classification of properties for properties held in
          condominium and cooperative form for assessment purposes
 
          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-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16271-01-2

        S. 7770                             2                           A. 10737
 
     1          ium  form  of  ownership;  and  (c)  residential  real  property
     2          consisting of one family house structures owned by the occupant,
     3          situated  on land held in cooperative ownership by owner occupi-
     4          ers,  provided  that; (i) such house structures and land consti-
     5          tuted bungalow colonies in existence prior to  nineteen  hundred

     6          forty;  and  (ii)  the land is held in cooperative ownership for
     7          the sole  purpose  of  maintaining  one  family  residences  for
     8          members  own  use;  and  (d)  all  vacant  land located within a
     9          special assessing unit which is a city (i) other than such  land
    10          in  the borough of Manhattan, provided that any such vacant land
    11          which is not zoned  residential  must  be  situated  immediately
    12          adjacent  to  property  improved with a residential structure as
    13          defined in subparagraphs (a) and (b) of this paragraph, be owned
    14          by the same owner as such immediately adjacent residential prop-
    15          erty immediately prior to and since January 1, 1989, and have  a
    16          total area not exceeding 10,000 square feet; and (ii) located in
    17          the  borough of Manhattan north of or adjacent to the north side

    18          of 110th street provided such vacant land was classified  within
    19          this  class on the assessment roll with a taxable status date of
    20          January 5, 2008 and the owner of such land has  entered  into  a
    21          recorded  agreement  with  a  governmental  entity  on or before
    22          December 31, 2008 requiring construction of  housing  affordable
    23          to  persons  or  families  of  low income in accordance with the
    24          provisions of the private housing finance  law.  Notwithstanding
    25          the foregoing, such vacant land shall be classified according to
    26          its  use on the assessment roll with a taxable status date imme-
    27          diately  following  commencement   of   construction,   provided
    28          further,  that  construction  pursuant  to  an approved plan for
    29          affordable housing shall commence no  later  than  December  31,

    30          2010; and (e) all vacant land located within a special assessing
    31          unit  which  is not a city, provided that such vacant land which
    32          is not zoned residential must be situated  immediately  adjacent
    33          to real property defined in subparagraph (a), (b) or (c) of this
    34          paragraph and be owned by the same person or persons who own the
    35          real  property defined in such subparagraph immediately prior to
    36          and since January 1, 2003;
    37    Class two: [all other] residential real property held  in  cooperative
    38          or  condominium  form  of  ownership  which is not designated as
    39          class one[, except hotels and motels and other  similar  commer-
    40          cial property];
    41    Class  three:  utility  real  property  and property subject to former

    42          section four hundred seventy of this chapter;
    43    Class four: all other real property which is not designated  as  class
    44          one, class two, [or] class three[.], or class five;
    45    Class  five:  all  other residential real property which is not desig-
    46          nated as class one, except hotels and motels and  other  similar
    47          commercial property, or class two.
    48    §  2.  The  opening  paragraph of subdivision 2 of section 1805 of the
    49  real property tax law, as amended by chapter 586 of the laws of 1992, is
    50  amended to read as follows:
    51    The assessment roll of a special assessing unit wholly contained with-
    52  in a city shall identify those parcels classified in class two or  class
    53  five which have fewer than eleven residential units. The assessor of any

    54  such  special  assessing  unit  shall not increase the assessment of any
    55  parcel so identified in any  one  year,  as  measured  from  the  actual
    56  assessment  on  the  previous year's assessment roll, by more than eight

        S. 7770                             3                           A. 10737
 
     1  percent and shall not increase  such  assessment  by  more  than  thirty
     2  percent  in  any five-year period. The first such five-year period shall
     3  be measured from the individual assessment appearing on  the  assessment
     4  roll  completed  in  nineteen  hundred eighty-one provided that, if such
     5  parcel would not have been subject to the provisions of this subdivision
     6  in nineteen hundred eighty-one had this subdivision then been in effect,
     7  the first such five-year period shall be measured from  the  first  year

     8  after  nineteen  hundred eighty-one in which this subdivision applied to
     9  such parcel or would have applied to such parcel  had  this  subdivision
    10  been in effect in such year.
    11    §  3.  Subdivision  6 of section 1805 of the real property tax law, as
    12  added by chapter 711 of the laws of 2005, is amended to read as follows:
    13    6. Notwithstanding any provision  of  law  to  the  contrary,  in  any
    14  special  assessing  unit  wholly contained within a city, beginning with
    15  the assessment roll completed in two thousand five and for  each  subse-
    16  quent assessment roll, the assessor shall not increase the assessment of
    17  any  existing  property  classified  in class two or class five that has
    18  fewer than eleven residential units, with respect  to  any  increase  in
    19  value attributable to additions to or improvements of such property that

    20  were  not  reflected on the assessment roll for a previous year, by more
    21  than one-third of the amount that such assessment would increase, in the
    22  absence of this subdivision, with  respect  to  any  increase  in  value
    23  attributable  to additions to or improvements of such property that were
    24  not reflected on the assessment roll for a previous year.  Notwithstand-
    25  ing the provisions of subdivision five of this section, the remainder of
    26  the  increase  in  value  attributable to such additions or improvements
    27  that were not reflected on the assessment roll for a previous year shall
    28  be subject to the limitations on increases provided in  subdivision  two
    29  of this section. This subdivision shall not apply to the construction of
    30  a  new building or structure. This subdivision shall not apply where, as
    31  a result of such additions to or improvements of the  existing  property

    32  classified  in  class five, there are more than ten residential units in
    33  such property.
    34    § 4. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
    35  erty tax law, as amended by chapter 273 of the laws of 1996, is  amended
    36  to read as follows:
    37    (f)  "Property"  means real property designated as class two, pursuant
    38  to section eighteen hundred two of this chapter[, held  in  the  cooper-
    39  ative or condominium form of ownership].
    40    § 5. Subdivision 7 of section 499-aaa of the real property tax law, as
    41  added by chapter 461 of the laws of 2008, is amended to read as follows:
    42    7.  "Eligible  building" shall mean a class one, class two [or], class
    43  four or class five real property,  as  defined  in  subdivision  one  of

    44  section  eighteen  hundred  two  of  this chapter, located within a city
    45  having a population of one million or more persons. No building shall be
    46  eligible for more than one tax abatement pursuant to this title.
    47    § 6. Subdivision 7 of section 499-aaaa of the real property  tax  law,
    48  as  added  by  chapter  473  of  the laws of 2008, is amended to read as
    49  follows:
    50    7. "Eligible building" shall mean a class one, class two  [or],  class
    51  four  or  class  five  real  property,  as defined in subdivision one of
    52  section eighteen hundred two of this  chapter,  located  within  a  city
    53  having a population of one million or more persons. No building shall be
    54  eligible for more than one tax abatement pursuant to this title.

        S. 7770                             4                           A. 10737
 

     1    § 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
     2  ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
     3  read as follows:
     4    (b)  in  a  special  assessing  unit,  the  determination, pursuant to
     5  section eighteen hundred two of this chapter, of whether  real  property
     6  is included in class one, two, three [or], four or five.
     7    §  8. Subdivision 10 of section 523-b of the real property tax law, as
     8  added by chapter 593 of the laws of 1998, is amended to read as follows:
     9    10. On or before April first, each year the commission shall  mail  to
    10  each  applicant,  who has filed an application for the correction of the
    11  assessment, a notice of the commission's determination  of  such  appli-
    12  cant's  assessment.  Such  notice shall also contain the statement as to

    13  the final determination of the assessment review commission, or a state-
    14  ment that the commission has not yet made  a  determination  as  to  the
    15  final  assessed valuation which shall be made as soon as the petitioners
    16  application is reviewed or heard. If the applicants property is a  prop-
    17  erty  defined in subdivision one of section eighteen hundred two of this
    18  chapter as "Class 1", the commissions determination  shall  contain  the
    19  statement:  "If  you  are  dissatisfied  with  the  determination of the
    20  Assessment Review Commission and you are the owner  of  a  one,  two  or
    21  three family residential structure or residential real property not more
    22  than  three  stories  in  height  held in condominium form of ownership,
    23  provided that no dwelling unit therein previously was on  an  assessment
    24  roll as a dwelling unit in other than condominium form of ownership, and

    25  you  reside  at  such  residence,  you  may seek judicial review of your
    26  assessment either under title one of article seven of the real  property
    27  tax  law  or  under small claims assessment review law provided by title
    28  one-A of article seven of the real property tax law." Such notice  shall
    29  also  state  [that]  the last date to file petitions for judicial review
    30  and the location where small claims assessment review petitions  may  be
    31  obtained.
    32    Each  applicant that has filed an application of a property as defined
    33  in subdivision one of section eighteen hundred two of  this  chapter  as
    34  "Class  2",  "Class  3"  [or],  "Class  4" or "Class 5", shall receive a
    35  notice as to the final determination of the assessment review commission
    36  or a statement that the commission has not yet made a  determination  as

    37  to the final assessed valuation which shall be made as soon as the peti-
    38  tioners application is reviewed or heard. Such applicants determinations
    39  shall  contain the statement: "If you are dissatisfied with the determi-
    40  nation of the Assessment Review Commission you may seek judicial  review
    41  of your assessment under title one of article seven of the real property
    42  tax  law."  Such notice shall also state the last date to file petitions
    43  for judicial review. A final determination when rendered  shall  contain
    44  the  same  statement.  Failure to mail any such notice or failure of the
    45  applicant to receive the same shall  not  affect  the  validity  of  the
    46  assessment.
    47    § 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
    48  ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
    49  read as follows:

    50    (b) In a  special  assessing  unit,  the  determination,  pursuant  to
    51  section  eighteen  hundred two of this chapter, of whether real property
    52  is included in class one, two, three [or], four or five.
    53    § 10. Subparagraph 2 of paragraph (a) of subdivision 3 of section  720
    54  of  the  real property tax law, as amended by chapter 679 of the laws of
    55  1986, is amended to read as follows:

        S. 7770                             5                           A. 10737
 
     1    (2) "Major type of property" in special assessing units,  for  assess-
     2  ments  on  rolls completed after December thirty-first, nineteen hundred
     3  eighty-one, shall mean classes one, two, three [and], four and  five  as
     4  defined in subdivision one of section eighteen hundred two of this chap-
     5  ter.

     6    §  11.  Subdivisions e and f of section 11-208.1 of the administrative
     7  code of the city of New York, subdivision e  as  amended  by  local  law
     8  number 41 of the city of New York for the year 1986 and subdivision f as
     9  amended  by  chapter  385  of  the  laws of 2006, are amended to read as
    10  follows:
    11    e. As used in this section, the term "income-producing property" means
    12  property owned for the purpose of securing an income from  the  property
    13  itself,  but  shall not include property with an assessed value of forty
    14  thousand dollars or less, or  residential  property  containing  ten  or
    15  fewer  dwelling  units  or property classified in class one [or], two or
    16  five as defined in  article  eighteen  of  the  real  property  tax  law
    17  containing six or fewer dwelling units and one retail store.

    18    f.  Except  in  accordance  with proper judicial order or as otherwise
    19  provided by law, it shall be unlawful for the commissioner, any  officer
    20  or  employee  of  the  department,  the  president  or a commissioner or
    21  employee of the tax commission, any person engaged or  retained  by  the
    22  department  or  the  tax commission on an independent contract basis, or
    23  any person, who, pursuant to this section, is permitted to  inspect  any
    24  income and expense statement or to whom a copy, an abstract or a portion
    25  of  any  such  statement  is  furnished, to divulge or make known in any
    26  manner except as provided in this  subdivision,  the  amount  of  income
    27  and/or  expense  or  any  particulars set forth or disclosed in any such
    28  statement required under this section. The commissioner,  the  president
    29  of the tax commission, or any commissioner or officer or employee of the

    30  department or the tax commission charged with the custody of such state-
    31  ments  shall not be required to produce any income and expense statement
    32  or evidence of anything contained in them in any action or proceeding in
    33  any court, except on behalf of the department  or  the  tax  commission.
    34  Nothing  herein  shall be construed to prohibit the delivery to an owner
    35  or his or her duly authorized representative of a certified copy of  any
    36  statement  filed  by  such owner pursuant to this section or to prohibit
    37  the publication of statistics so classified as to prevent the  identifi-
    38  cation  of  particular statements and the items thereof, or making known
    39  aggregate income and expense information disclosed with respect to prop-
    40  erty classified as class four as defined in article eighteen of the real
    41  property tax law without identifying information about individual  leas-

    42  es,  or  making  known  a range as determined by the commissioner within
    43  which the income and expenses of a property classified as class  two  or
    44  class  five falls, or the inspection by the legal representatives of the
    45  department or of the tax commission of the statement of  any  owner  who
    46  shall  bring  an  action to correct the assessment. Any violation of the
    47  provisions of this subdivision shall be punished by a fine not exceeding
    48  one thousand dollars or by imprisonment not exceeding one year, or both,
    49  at the discretion of the court, and if the offender  be  an  officer  or
    50  employee  of the department or the tax commission, the offender shall be
    51  dismissed from office.
    52    § 12. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319  of
    53  the  administrative  code  of the city of New York, subdivisions a, a-1,

    54  a-2 and a-3 as amended and subdivisions a-4 and a-5 as  added  by  local
    55  law  number 15 of the city of New York for the year 2011, are amended to
    56  read as follows:

        S. 7770                             6                           A. 10737
 
     1    a. A tax lien or tax liens on a  property  or  any  component  of  the
     2  amount thereof may be sold by the city as authorized by subdivision b of
     3  this section, when such tax lien or tax liens shall have remained unpaid
     4  in  whole or in part for one year, provided, however, that a tax lien or
     5  tax  liens on any class one property or [on] class two property [that is
     6  a residential condominium or residential cooperative], as  such  classes
     7  of  property  are defined in subdivision one of section eighteen hundred
     8  two of the real property tax law, may be sold by the city only when  the

     9  real  property  tax  component  of such tax lien or tax liens shall have
    10  remained unpaid in whole or in part for three years or, in the  case  of
    11  any  class  [two] five residential property owned by a company organized
    12  pursuant to article XI of the state private housing finance law [that is
    13  not a residential condominium or a  residential  cooperative],  as  such
    14  class  of  property  is  defined  in subdivision one of section eighteen
    15  hundred two of the real property tax law, for two years, and  equals  or
    16  exceeds  the  sum  of five thousand dollars or, in the case of abandoned
    17  class one property [or], abandoned class two property [that is  a  resi-
    18  dential  condominium  or  residential cooperative], for eighteen months,

    19  and after such sale, shall be transferred, in  the  manner  provided  by
    20  this chapter, and provided, further, however, that (i) the real property
    21  tax component of such tax lien may not be sold pursuant to this subdivi-
    22  sion  on any 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 such residential real property in class one is receiving benefits  in
    30  accordance  with department of finance memorandum 05-3, or any successor

    31  memorandum thereto, relating to active duty military personnel, or where
    32  the owner of such residential  real  property  in  class  one  has  been
    33  allowed  a  credit pursuant to subsection (e) of section six hundred six
    34  of the tax law for the calendar year in which  the  date  of  the  first
    35  publication,  pursuant  to subdivision a of section 11-320 of this chap-
    36  ter, of the notice of sale, occurs or for the calendar year  immediately
    37  preceding such date and (ii) the sewer rents component, sewer surcharges
    38  component  or  water  rents  component  of such tax lien may not be sold
    39  pursuant to this subdivision on any one family residential real property
    40  in class one or on any two or three family residential real property  in
    41  class one that is receiving an exemption pursuant to section 11-245.3 or
    42  11-245.4  of this title, or pursuant to section four hundred fifty-eight

    43  of the real property tax law with respect  to  real  property  purchased
    44  with  payments  received as prisoner of war compensation from the United
    45  States government, or pursuant to paragraph (b) or  (c)  of  subdivision
    46  two  of section four hundred fifty-eight-a of the real property tax law,
    47  or where the owner of any two or three family residential real  property
    48  in  class  one  is  receiving  benefits in accordance with department of
    49  finance memorandum 05-3, or any successor memorandum  thereto,  relating
    50  to  active  duty  military  personnel,  or where the owner of any two or
    51  three family residential real property in class one has been  allowed  a
    52  credit  pursuant to subsection (e) of section six hundred six of the tax
    53  law for the calendar year in which the date of  the  first  publication,
    54  pursuant  to  subdivision  a  of  section 11-320 of this chapter, of the

    55  notice of sale, occurs or for the calendar  year  immediately  preceding
    56  such  date.  A  tax  lien  or  tax liens on any property classified as a

        S. 7770                             7                           A. 10737
 
     1  [class two property, except a class two property that is  a  residential
     2  condominium or residential cooperative, or a class two residential prop-
     3  erty  owned  by  a company organized pursuant to article XI of the state
     4  private  housing  finance law that is not a residential condominium or a
     5  residential cooperative, or] class three property, or a class five prop-
     6  erty owned by a company organized pursuant to article XI  of  the  state
     7  private  housing  finance law as such classes of property are defined in

     8  subdivision one of section eighteen hundred two of the real property tax
     9  law, shall not be sold by the city unless such tax  lien  or  tax  liens
    10  include a real property tax component as of the date of the first publi-
    11  cation,  pursuant to subdivision a of section 11-320 of this chapter, of
    12  the notice of sale. Notwithstanding any provision of this subdivision to
    13  the contrary, any such tax lien or tax liens that remain unpaid in whole
    14  or in part after such date may be sold regardless of  whether  such  tax
    15  lien  or  tax liens include a real property tax component. A tax lien or
    16  tax liens on a property classified as a class  four  property,  as  such
    17  class  of  property  is  defined  in subdivision one of section eighteen
    18  hundred two of the real property tax law, shall not be sold by the  city
    19  unless  such tax lien or tax liens include a real property tax component

    20  or sewer rents component or sewer surcharges component  or  water  rents
    21  component  or  emergency  repair charges component, where such emergency
    22  repair charges accrued on or after January first, two thousand  six  and
    23  are made a lien pursuant to section 27-2144 of this code, as of the date
    24  of the first publication, pursuant to subdivision a of section 11-320 of
    25  this  chapter,  of  the  notice of sale, provided, however, that any tax
    26  lien or tax liens that remain unpaid in whole or in part after such date
    27  may be sold regardless of whether such tax lien or tax liens  include  a
    28  real  property  tax  component,  sewer rents component, sewer surcharges
    29  component, water rents component or emergency repair charges  component.
    30  For  purposes  of  this subdivision, the words "real property tax" shall
    31  not include an assessment or charge upon property  imposed  pursuant  to

    32  section  25-411  of the administrative code. A sale of a tax lien or tax
    33  liens shall include, in  addition  to  such  lien  or  liens  that  have
    34  remained unpaid in whole or in part for one year, or, in the case of any
    35  class  one  property or class two property [that is a residential condo-
    36  minium or residential cooperative], when the real property tax component
    37  of such lien or liens has remained unpaid in whole or in part for  three
    38  years,  or,  in  the  case  of any class [two] five residential property
    39  owned by a company organized pursuant to article XI of the state private
    40  housing finance law [that is not a residential condominium or a residen-
    41  tial cooperative], when the real property tax component of such lien  or
    42  liens  has remained unpaid in whole or in part for two years, and equals

    43  or exceeds the sum of five thousand  dollars,  any  taxes,  assessments,
    44  sewer  rents,  sewer surcharges, water rents, any other charges that are
    45  made a lien subject to the provisions of this chapter, the costs of  any
    46  advertisements  and  notices  given  pursuant to this chapter, any other
    47  charges that are due and payable, a surcharge pursuant to section 11-332
    48  of this chapter, and interest and penalties thereon or such component of
    49  the amount thereof  as  shall  be  determined  by  the  commissioner  of
    50  finance.  The  commissioner  of  finance  may  promulgate rules defining
    51  "abandoned" property, as such term is used in this subdivision.
    52    a-1. A subsequent tax lien or tax liens on a property or any component
    53  of the amount thereof may be sold by the city pursuant to this  chapter,
    54  provided, however, that notwithstanding any provision in this chapter to

    55  the  contrary,  such  tax  lien  or  tax liens may be sold regardless of
    56  whether such tax lien or tax liens have remained unpaid in whole  or  in

        S. 7770                             8                           A. 10737
 
     1  part  for one year and, notwithstanding any provision in this chapter to
     2  the contrary, in the case of any class one property or class two proper-
     3  ty [that is a residential condominium or  residential  cooperative]  or,
     4  beginning  January  first, two thousand twelve, in the case of any class
     5  [two] five residential property owned by a company organized pursuant to
     6  article XI of the state private housing finance law [that is not a resi-
     7  dential condominium or a residential cooperative], such tax lien or  tax

     8  liens may be sold if the real property tax component of such tax lien or
     9  tax  liens  has  remained  unpaid  in whole or in part for one year, and
    10  provided, further, however, that (i) the real property tax component  of
    11  such  tax lien may not be sold pursuant to this subdivision on any resi-
    12  dential real property in class one that is receiving an exemption pursu-
    13  ant to section 11-245.3 or  11-245.4  of  this  title,  or  pursuant  to
    14  section  four  hundred  fifty-eight  of  the  real property tax law with
    15  respect to real property purchased with payments received as prisoner of
    16  war compensation from the United States government, or pursuant to para-
    17  graph  (b)  or  (c)  of  subdivision  two  of   section   four   hundred
    18  fifty-eight-a  of  the real property tax law, or where the owner of such
    19  residential real property in class one is receiving benefits in  accord-

    20  ance  with department of finance memorandum 05-3, or any successor memo-
    21  randum thereto, relating to active duty military personnel, or where the
    22  owner of such residential real property in class one has been allowed  a
    23  credit  pursuant to subsection (e) of section six hundred six of the tax
    24  law for the calendar year in which the date of  the  first  publication,
    25  pursuant  to  subdivision  a  of  section 11-320 of this chapter, of the
    26  notice of sale, occurs or for the calendar  year  immediately  preceding
    27  such date and (ii) the sewer rents component, sewer surcharges component
    28  or  water  rents  component of such tax lien may not be sold pursuant to
    29  this subdivision on any one family residential real  property  in  class
    30  one or on any two or three family residential real property in class one
    31  that  is receiving an exemption pursuant to section 11-245.3 or 11-245.4

    32  of this title, or pursuant to section four hundred  fifty-eight  of  the
    33  real  property  tax  law  with  respect  to real property purchased with
    34  payments received as prisoner of war compensation from the United States
    35  government, or pursuant to paragraph (b) or (c) of  subdivision  two  of
    36  section  four  hundred  fifty-eight-a  of  the real property tax law, or
    37  where the owner of any two or three family residential real property  in
    38  class one is receiving benefits in accordance with department of finance
    39  memorandum 05-3, or any successor memorandum thereto, relating to active
    40  duty  military  personnel, or where the owner of any two or three family
    41  residential real property in class one has been allowed a credit  pursu-
    42  ant  to subsection (e) of section six hundred six of the tax law for the
    43  calendar year in which the date of the first  publication,  pursuant  to

    44  subdivision  a of section 11-320 of this chapter, of the notice of sale,
    45  occurs or for the calendar year immediately  preceding  such  date.  For
    46  purposes  of  this  subdivision,  the  term  "subsequent tax lien or tax
    47  liens" shall mean any tax lien or tax liens on property that become such
    48  on or after the date of sale of any tax lien or tax liens on such  prop-
    49  erty  that  have  been  sold pursuant to this chapter, provided that the
    50  prior tax lien or tax liens remain unpaid as of the date  of  the  first
    51  publication,  pursuant  to subdivision a of section 11-320 of this chap-
    52  ter, of the notice of sale of the subsequent tax lien or  tax  liens.  A
    53  subsequent  tax lien or tax liens on any property classified as a [class
    54  two property, except a class two property that is a  residential  condo-

    55  minium  or  residential cooperative, or a class two residential property
    56  owned by a company organized pursuant to article XI of the state private

        S. 7770                             9                           A. 10737

     1  housing finance law that is not a residential condominium or a  residen-
     2  tial  cooperative,  or]class  three  property,  or a class five property
     3  owned by a company organized pursuant to article XI of the state private
     4  housing finance law, as such classes of property are defined in subdivi-
     5  sion  one  of section eighteen hundred two of the real property tax law,
     6  shall not be sold by the city unless such tax lien or tax liens  include
     7  a  real  property tax component as of the date of the first publication,

     8  pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
     9  notice of sale. Notwithstanding any provision of this subdivision to the
    10  contrary,  any such tax lien or tax liens that remain unpaid in whole or
    11  in part after such date may be sold regardless of whether such tax  lien
    12  or  tax  liens  include  a real property tax component. A subsequent tax
    13  lien or tax liens on a property classified as a class four property,  as
    14  such class of property is defined in subdivision one of section eighteen
    15  hundred  two of the real property tax law, shall not be sold by the city
    16  unless such tax lien or tax liens include a real property tax  component
    17  or  sewer  rents  component or sewer surcharges component or water rents
    18  component or emergency repair charges component,  where  such  emergency
    19  repair  charges  accrued on or after January first, two thousand six and

    20  are made a lien pursuant to section 27-2144 of this code, as of the date
    21  of the first publication, pursuant to subdivision a of section 11-320 of
    22  this chapter, of the notice of sale, provided,  however,  that  any  tax
    23  lien or tax liens that remain unpaid in whole or in part after such date
    24  may  be  sold regardless of whether such tax lien or tax liens include a
    25  real property tax component, sewer  rents  component,  sewer  surcharges
    26  component,  water rents component or emergency repair charges component.
    27  For purposes of this subdivision, the words "real  property  tax"  shall
    28  not  include  an  assessment or charge upon property imposed pursuant to
    29  section 25-411 of the administrative code. Nothing in  this  subdivision
    30  shall  be deemed to limit the rights conferred by section 11-332 of this
    31  chapter on the holder of a tax lien certificate with respect to a subse-
    32  quent tax lien.

    33    a-2. In addition to any sale authorized pursuant to subdivision  a  or
    34  subdivision  a-1  of  this  section and notwithstanding any provision of
    35  this chapter to the contrary, beginning on December first, two  thousand
    36  seven,  the  water rents, sewer rents and sewer surcharges components of
    37  any tax lien on any class of real property, as  such  real  property  is
    38  classified  in  subdivision  one  of section eighteen hundred two of the
    39  real property tax law, may be sold by the city pursuant to this chapter,
    40  where such water rents, sewer rents or  sewer  surcharges  component  of
    41  such  tax  lien,  as  of  the date of the first publication, pursuant to
    42  subdivision a of section 11-320 of this chapter, of the notice of  sale:
    43  (i) shall have remained unpaid in whole or in part for one year and (ii)
    44  equals or exceeds the sum of one thousand dollars or, beginning on March

    45  first, two thousand eleven, in the case of any two or three family resi-
    46  dential  real property in class one, for one year, and equals or exceeds
    47  the sum of two thousand dollars, or, beginning  on  January  first,  two
    48  thousand twelve, in the case of any class [two] five residential proper-
    49  ty  owned  by  a  company  organized pursuant to article XI of the state
    50  private housing finance law [that is not a residential condominium or  a
    51  residential cooperative], as such class of property is defined in subdi-
    52  vision one of section eighteen hundred two of the real property tax law,
    53  for  two  years, and equals or exceeds the sum of five thousand dollars;
    54  provided,  however,  that  such  water  rents,  sewer  rents  or   sewer
    55  surcharges  component  of such tax lien may not be sold pursuant to this

    56  subdivision on any one family residential real property in class one  or

        S. 7770                            10                           A. 10737
 
     1  on  any  two or three family residential real property in class one that
     2  is receiving an exemption pursuant to section 11-245.3  or  11-245.4  of
     3  this  title, or pursuant to section four hundred fifty-eight of the real
     4  property  tax  law with respect to real property purchased with payments
     5  received as prisoner of war compensation from the United States  govern-
     6  ment,  or pursuant to paragraph (b) or (c) of subdivision two of section
     7  four hundred fifty-eight-a of the real property tax law,  or  where  the
     8  owner  of any two or three family residential real property in class one
     9  is receiving benefits in accordance with department of finance  memoran-

    10  dum  05-3,  or any successor memorandum thereto, relating to active duty
    11  military personnel, or where the owner of any two or three family  resi-
    12  dential real property in class one has been allowed a credit pursuant to
    13  subsection  (e) of section six hundred six of the tax law for the calen-
    14  dar year in which the date of the first publication, pursuant to  subdi-
    15  vision  a  of  section  11-320  of  this chapter, of the notice of sale,
    16  occurs or for the calendar year immediately preceding such date.   After
    17  such  sale, any such water rents, sewer rents or sewer surcharges compo-
    18  nent of such tax lien may be transferred in the manner provided by  this
    19  chapter.
    20    a-3.  In  addition to any sale authorized pursuant to subdivision a or
    21  subdivision a-1 of this section and  notwithstanding  any  provision  of
    22  this  chapter to the contrary, beginning on December first, two thousand

    23  seven, a subsequent tax lien on any class of real property, as such real
    24  property is classified in subdivision one of  section  eighteen  hundred
    25  two  of  the  real property tax law, may be sold by the city pursuant to
    26  this chapter, regardless of whether such subsequent  tax  lien,  or  any
    27  component  of the amount thereof, shall have remained unpaid in whole or
    28  in part for one year, and regardless  of  whether  such  subsequent  tax
    29  lien,  or any component of the amount thereof, equals or exceeds the sum
    30  of one thousand dollars or beginning on March first, two thousand  elev-
    31  en,  in the case of any two or three family residential real property in
    32  class one, a subsequent tax lien on such property may  be  sold  by  the
    33  city pursuant to this chapter, regardless of whether such subsequent tax
    34  lien, or any component of the amount thereof, shall have remained unpaid

    35  in  whole or in part for one year, and regardless of whether such subse-
    36  quent tax lien, or any  component  of  the  amount  thereof,  equals  or
    37  exceeds the sum of two thousand dollars, or, beginning on January first,
    38  two  thousand  twelve,  in  the case of any class [two] five residential
    39  property owned by a company organized pursuant  to  article  XI  of  the
    40  state private housing finance law [that is not a residential condominium
    41  or  a  residential cooperative], as such class of property is defined in
    42  subdivision one of section eighteen hundred two of the real property tax
    43  law, a subsequent tax lien on such property may  be  sold  by  the  city
    44  pursuant  to  this  chapter,  regardless  of whether such subsequent tax
    45  lien, or any component of the amount thereof, shall have remained unpaid

    46  in whole or in part for two years, and regardless of whether such subse-
    47  quent tax lien, or any  component  of  the  amount  thereof,  equals  or
    48  exceeds  the  sum of five thousand dollars; provided, however, that such
    49  subsequent tax lien may not be sold pursuant to this subdivision on  any
    50  one family residential real property in class one or on any two or three
    51  family  residential  real  property  in  class  one that is receiving an
    52  exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
    53  pursuant  to  section  four hundred fifty-eight of the real property tax
    54  law with respect to real property purchased with  payments  received  as
    55  prisoner  of  war  compensation  from  the  United States government, or
    56  pursuant to paragraph (b) or (c) of  subdivision  two  of  section  four


        S. 7770                            11                           A. 10737
 
     1  hundred  fifty-eight-a  of the real property tax law, or where the owner
     2  of any two or three family residential real property  in  class  one  is
     3  receiving  benefits  in accordance with department of finance memorandum
     4  05-3, or any successor memorandum thereto, relating to active duty mili-
     5  tary  personnel,  or where the owner of any two or three family residen-
     6  tial real property in class one has been allowed a  credit  pursuant  to
     7  subsection  (e) of section six hundred six of the tax law for the calen-
     8  dar year in which the date of the first publication, pursuant to  subdi-
     9  vision  a  of  section  11-320  of  this chapter, of the notice of sale,
    10  occurs or for the calendar year immediately preceding such date.   After
    11  such  sale, any such subsequent tax lien, or any component of the amount

    12  thereof, may be transferred in the manner provided by this chapter.  For
    13  purposes  of this subdivision, the term "subsequent tax lien" shall mean
    14  the water rents, sewer rents or sewer surcharges component  of  any  tax
    15  lien  on  property that becomes such on or after the date of sale of any
    16  water rents, sewer rents or sewer surcharges component of any  tax  lien
    17  on  such  property that has been sold pursuant to this chapter, provided
    18  that the prior tax lien remains unpaid as  of  the  date  of  the  first
    19  publication,  pursuant  to subdivision a of section 11-320 of this chap-
    20  ter, of the notice of sale of the subsequent tax lien. Nothing  in  this
    21  subdivision  shall  be  deemed  to limit the rights conferred by section
    22  11-332 of this chapter on the holder of  a  tax  lien  certificate  with
    23  respect to a subsequent tax lien.

    24    a-4.  In  addition  to  any sale authorized pursuant to subdivision a,
    25  a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
    26  this  chapter  to  the  contrary, beginning on March first, two thousand
    27  eleven, the emergency repair charges component or  alternative  enforce-
    28  ment  expenses  and  fees component, where such emergency repair charges
    29  accrued on or after January first, two thousand six and are made a  lien
    30  pursuant  to  section  27-2144  of  this code, or where such alternative
    31  enforcement expenses and fees  are  made  a  lien  pursuant  to  section
    32  27-2153  of this code, of any tax lien on any class of real property, as
    33  such real property is defined in subdivision  one  of  section  eighteen
    34  hundred two of the real property tax law, may be sold by the city pursu-
    35  ant  to  this  chapter, where such emergency repair charges component or

    36  alternative enforcement expenses and fees component of such tax lien, as
    37  of the date of the first  publication,  pursuant  to  subdivision  a  of
    38  section  11-320  of  this chapter, of the notice of sale: (i) shall have
    39  remained unpaid in whole or in part for one year,  and  (ii)  equals  or
    40  exceeds  the sum of one thousand dollars or, beginning on January first,
    41  two thousand twelve, in the case of any  class  [two]  five  residential
    42  property  owned  by  a  company  organized pursuant to article XI of the
    43  state private housing finance law [that is not a residential condominium
    44  or a residential cooperative], as such class of property is  defined  in
    45  subdivision one of section eighteen hundred two of the real property tax
    46  law,  for  two  years,  and  equals  or exceeds the sum of five thousand

    47  dollars; provided, however, that such emergency repair charges component
    48  or alternative enforcement expenses and fees component of such tax  lien
    49  may  not  be  sold pursuant to this subdivision on any one, two or three
    50  family residential real property in class one,  except  a  three  family
    51  residential  property in class one where such property is subject to the
    52  provisions of section 27-2153 of this code and is not the primary  resi-
    53  dence  of the owner.  After such sale, any such emergency repair charges
    54  component or alternative enforcement expenses and fees component of such
    55  tax lien may be transferred in the manner provided by this chapter.

        S. 7770                            12                           A. 10737
 
     1    a-5. In addition to any sale authorized  pursuant  to  subdivision  a,

     2  a-1,  a-2  or  a-3  of this section and notwithstanding any provision of
     3  this chapter to the contrary, beginning on  March  first,  two  thousand
     4  eleven,  a  subsequent tax lien on any class of real property, or begin-
     5  ning  on  January  first,  two  thousand twelve in the case of any class
     6  [two] five residential property owned by a company organized pursuant to
     7  article XI of the state private housing finance law [that is not a resi-
     8  dential condominium or a residential cooperative], a subsequent tax lien
     9  on such property, may be sold by the  city  pursuant  to  this  chapter,
    10  regardless of the length of time such subsequent tax lien, or any compo-
    11  nent  of  the amount thereof, shall have remained unpaid, and regardless
    12  of the amount of such subsequent tax lien. After  such  sale,  any  such

    13  subsequent  tax  lien,  or  any  component of the amount thereof, may be
    14  transferred in the manner provided by this chapter. For purposes of this
    15  subdivision, the term "subsequent tax lien"  shall  mean  the  emergency
    16  repair  charges  component  or alternative enforcement expenses and fees
    17  component, where such emergency repair charges accrued on or after Janu-
    18  ary first, two thousand six and are made  a  lien  pursuant  to  section
    19  27-2144 of this code, or where such alternative enforcement expenses and
    20  fees  are  made  a lien pursuant to section 27-2153 of this code, of any
    21  tax lien on property that becomes such on or after the date of  sale  of
    22  any  emergency  repair  charges  component  or  alternative  enforcement
    23  expenses and fees component, of any tax lien on such property  that  has
    24  been  sold  pursuant  to  this chapter, provided that the prior tax lien

    25  remains unpaid as of the date of  the  first  publication,  pursuant  to
    26  subdivision  a  of section 11-320 of this chapter, of the notice of sale
    27  of the subsequent tax lien. Nothing in this subdivision shall be  deemed
    28  to  limit  the rights conferred by section 11-332 of this chapter on the
    29  holder of a tax lien certificate with respect to a subsequent tax lien.
    30    § 13. Subparagraph (i) of paragraph 2 of subdivision  b  and  subpara-
    31  graph  (ii)  of  paragraph  1  of subdivision h of section 11-320 of the
    32  administrative code of the city of New  York,  as  added  by  local  law
    33  number 15 of the city of New York for the year 2011, are amended to read
    34  as follows:
    35    (i)  Such  notices  shall  also  include, with respect to any property
    36  owner in class one [or], class two or class five,  as  such  classes  of

    37  property  are defined in subdivision one of section eighteen hundred two
    38  of the real property tax law, an exemption eligibility checklist. Within
    39  ten business days of receipt of a completed exemption eligibility check-
    40  list from such property owner, provided that such receipt  occurs  prior
    41  to the date of sale of any tax lien or tax liens on his or her property,
    42  the  department  of  finance  shall  review such checklist to determine,
    43  based on the information provided by the property  owner,  whether  such
    44  property  owner  could  be  eligible  for any exemption, credit or other
    45  benefit that would entitle them to be excluded from a tax lien sale and,
    46  if the department determines that such property owner could be  eligible
    47  for any such exemption, credit or other benefit, shall mail such proper-
    48  ty  owner  an application for the appropriate exemption, credit or other

    49  benefit. If, within twenty business days  of  the  date  the  department
    50  mailed  such  application,  the  department has not received a completed
    51  application from such property owner, the  department  shall  mail  such
    52  property  owner  a  second application, and shall telephone the property
    53  owner, if the property owner has included his or her telephone number on
    54  the exemption eligibility checklist.
    55    (ii) all class [two] five residential  property  owned  by  a  company
    56  organized  pursuant  to  article XI of the state private housing finance

        S. 7770                            13                           A. 10737
 
     1  law [that is not a residential condominium or a residential cooperative]
     2  on which any tax lien has been sold pursuant to subdivision  a,  a-2  or
     3  a-4 of section 11-319 of this title.

     4    §  14. Subdivision (a) of section 11-354 of the administrative code of
     5  the city of New York, as amended by local law number 37 of the  city  of
     6  New York for the year 1996, is amended to read as follows:
     7    (a) Notwithstanding any other provision of law and notwithstanding any
     8  omission  to  hold  a tax lien sale, whenever any tax, assessment, sewer
     9  rent, sewer surcharge, water rent,  any  charge  that  is  made  a  lien
    10  subject to the provisions of this chapter or chapter four of this title,
    11  or  interest and penalties thereon, has been due and unpaid for a period
    12  of at least one year from the date on which the tax, assessment or other
    13  legal charge represented thereby became a lien, or in the  case  of  any
    14  class  one  property  or  any  class two property [that is a residential
    15  condominium or residential cooperative], as such classes of property are

    16  defined in subdivision one of section eighteen hundred two of  the  real
    17  property  tax  law,  or  in  the case of a class five property that is a
    18  multiple dwelling owned by a company organized pursuant to article XI of
    19  the private housing finance law with the consent  and  approval  of  the
    20  department  of  housing preservation and development, for a period of at
    21  least three years from the date on which the tax,  assessment  or  other
    22  legal  charge became a lien, the city, as owner of a tax lien, may main-
    23  tain an action in the supreme court to foreclose such lien. Such  action
    24  shall  be governed by the procedures set forth in section 11-335 of this
    25  chapter; provided, however, that such parcel shall only be sold  to  the
    26  highest  responsible bidder. Such purchaser shall be deemed qualified as
    27  a responsible bidder pursuant to such criteria  as  are  established  in

    28  rules promulgated by the commissioner of finance after consultation with
    29  the commissioner of housing preservation and development.
    30    §  15.  Subdivision  3  and  the opening paragraph of subdivision 4 of
    31  section 11-401 of the administrative code of the city of  New  York,  as
    32  added  by local law number 37 of the city of New York for the year 1996,
    33  are amended to read as follows:
    34    3. "Class." Any class of real property defined in subdivision  one  of
    35  section  eighteen  hundred  two  of  the  real property tax law, and any
    36  subclassification of class two or class five real  property  where  such
    37  subclassification  is established by rule of the commissioner of finance
    38  promulgated pursuant to this subdivision.
    39    Any parcel of class one [or], class two or class  five  real  property

    40  that  is  subject  to  a tax lien or liens with a lien or liens to value
    41  ratio, as determined by the commissioner of finance, equal to or greater
    42  than fifteen percent and that meets one of the following two criteria:
    43    § 16. Subdivisions a and b of section 11-401.1 of  the  administrative
    44  code  of  the  city  of New York, as added by local law number 37 of the
    45  city of New York for the year 1996, are amended to read as follows:
    46    a. The commissioner of finance shall, not less than sixty days preced-
    47  ing the date of the sale of a tax lien  or  tax  liens,  submit  to  the
    48  commissioner  of  housing  preservation and development a description by
    49  block and lot, or by such other identification as  the  commissioner  of
    50  finance  may  deem  appropriate, of any parcel of class one or class two
    51  real property on which there is a tax lien that may be foreclosed by the

    52  city. The commissioner of housing  preservation  and  development  shall
    53  determine,  and  direct  the  commissioner of finance, not less than ten
    54  days preceding the date of the sale of a tax lien or tax liens,  whether
    55  any  such parcel is a distressed property as defined in subdivision four
    56  of section 11-401 of this chapter. Any tax lien on a  parcel  so  deter-

        S. 7770                            14                           A. 10737
 
     1  mined to be a distressed property shall not be included in such sale. In
     2  connection  with  a  subsequent  sale  of  a  tax lien or tax liens, the
     3  commissioner of finance may, not less than sixty days preceding the date
     4  of  the  sale,  resubmit to the commissioner of housing preservation and
     5  development a description by block and lot, or by such other identifica-

     6  tion as the commissioner of finance may deem appropriate, of any  parcel
     7  of class one [or], class two or class five real property that was previ-
     8  ously  determined to be a distressed property pursuant to this paragraph
     9  and on which there is a tax lien that may be included in such sale.  The
    10  commissioner  of  housing  preservation and development shall determine,
    11  and direct the commissioner of finance, not less than ten days preceding
    12  the date of the sale, whether such parcel remains a distressed property.
    13  If the commissioner of housing preservation and  development  determines
    14  that  the  parcel is not a distressed property, then the tax lien on the
    15  parcel may be included in the sale.
    16    b. The commissioner of housing preservation and development may  peri-

    17  odically  review  whether a parcel of class one [or], class two or class
    18  five real property that is subject to subdivision c of this  section  or
    19  subdivision  j  of section 11-412.1 of this chapter remains a distressed
    20  property. If the commissioner  determines  that  the  parcel  is  not  a
    21  distressed  property as defined in subdivision four of section 11-401 of
    22  this chapter, then the parcel shall not be subject to such subdivisions.
    23    § 17. Subdivision b of section 11-404 of the  administrative  code  of
    24  the city of New York, as added by local law number 37 of the city of New
    25  York for the year 1996, is amended to read as follows:
    26    b.  A  tax  lien  on  any class one property or any class two property
    27  [that is a residential condominium or residential cooperative], as  such

    28  classes  of  property are defined in subdivision one of section eighteen
    29  hundred two of the real property tax law, and on any class five property
    30  that is a multiple dwelling owned by a  company  organized  pursuant  to
    31  article  XI  of  the  private  housing  finance law with the consent and
    32  approval of the department  of  housing  preservation  and  development,
    33  shall  not  be  foreclosed  in the manner provided in this chapter until
    34  such tax lien has been due and unpaid for a period  of  at  least  three
    35  years  from  the date on which the tax, assessment or other legal charge
    36  represented thereby became a lien.
    37    § 18. Paragraph 5 of subdivision c of section 11-405 of  the  adminis-
    38  trative code of the city of New York, as added by local law number 37 of
    39  the city of New York for the year 1996, is amended to read as follows:

    40    (5)  Notwithstanding  paragraph one, two or three of this subdivision,
    41  with respect to installment agreements duly made, executed and filed  on
    42  or after the date on which this paragraph takes effect, the commissioner
    43  of  finance  may  also  exclude  or thereafter remove from such list any
    44  parcel of class one [or], class two or class five real  property,  other
    45  than  a  parcel  described  in paragraph four of this subdivision, as to
    46  which an agreement has been duly made,  executed  and  filed  with  such
    47  commissioner  for  the  payment  of the delinquent taxes, assessments or
    48  other legal charges, and the interest and penalties thereon, in install-
    49  ments. The first installment thereof shall be paid upon  the  filing  of
    50  the  installment  agreement  with  the  commissioner  and shall be in an

    51  amount equal to not less than fifteen percent of  the  total  amount  of
    52  such delinquent taxes, assessments or other legal charges and the inter-
    53  est  and  penalties  thereon. The remaining installments, which shall be
    54  twice the number of unpaid quarters of real estate taxes or  the  equiv-
    55  alent  thereof, but which shall in no event exceed thirty-two in number,
    56  shall be payable quarterly on the first days of July,  October,  January

        S. 7770                            15                           A. 10737
 
     1  and  April. For the purposes of calculating the number of such remaining
     2  installments, unpaid real estate taxes that are due and payable on other
     3  than a quarterly basis shall be deemed to  be  payable  on  a  quarterly
     4  basis.
     5    §  19.  Subparagraph  (iii) of paragraph 3 of subdivision i of section

     6  11-409 of the administrative code of the city of New York, as  added  by
     7  local  law  number  37  of  the  city  of New York for the year 1996, is
     8  amended to read as follows:
     9    (iii) With respect to any parcel of class one [or], class two or class
    10  five real property, other than a parcel described in subparagraph (i) or
    11  (ii) of this paragraph, such agreement shall provide for the payment  in
    12  installments of the delinquent taxes, assessments and other legal charg-
    13  es, and the interest and penalties thereon, due and owing as of the date
    14  on  which  such  agreement  is  requested. The first installment thereof
    15  shall be paid upon the filing of  the  installment  agreement  with  the
    16  commissioner  of finance and shall be in an amount at least equal to, at
    17  the applicant's election, either thirty-five percent or fifty percent of

    18  the total amount of such delinquent taxes, assessments  or  other  legal
    19  charges  and  the interest and penalties thereon. The remaining install-
    20  ments, which shall be twice the number of unpaid quarters of real estate
    21  taxes or the equivalent thereof, but which  shall  in  no  event  exceed
    22  twenty  in number, shall be payable quarterly on the first days of July,
    23  October, January and April, together with interest at the rate or  rates
    24  determined  as  provided in subparagraph (iv) of this paragraph. For the
    25  purposes of calculating  the  number  of  such  remaining  installments,
    26  unpaid  real estate taxes that are due and payable on other than a quar-
    27  terly basis shall be deemed to be payable on a quarterly basis.
    28    § 20. The section heading of section 11-412.1  of  the  administrative
    29  code  of  the city of New York, as amended by local law number 37 of the

    30  city of New York for the year 1996, is amended to read as follows:
    31    Special procedures relating to final judgment and release of class one
    32  [and], class two or class five real property.
    33    § 21. Paragraph 1 of subdivision b, subdivisions c and d, paragraphs 1
    34  and 4 of subdivision e, and subdivisions f, g, h, i  and  j  of  section
    35  11-412.1 of the administrative code of the city of New York, as added by
    36  local  law  number  37  of  the  city of New York for the year 1996, are
    37  amended to read as follows:
    38    (1) The court shall make a final judgment  authorizing  the  award  of
    39  possession of any parcel of class one [or], class two or class five real
    40  property described in the list of delinquent taxes not redeemed or with-
    41  drawn  as  provided  in this chapter and as to which no answer is inter-

    42  posed as provided herein, and authorizing the commissioner of finance to
    43  prepare, execute and cause to be recorded a deed conveying either to the
    44  city or to a third party deemed qualified and designated by the  commis-
    45  sioner  of  housing preservation and development full and complete title
    46  to such lands. Any such conveyance to a third  party  shall  be  for  an
    47  existing use.
    48    c.  Following  the  expiration  of the four-month period prescribed in
    49  subdivision d of this section, but not more than eight months after  the
    50  date  on  which,  pursuant  to  subdivision b of this section, the final
    51  judgment authorizing the award of possession of a parcel  of  class  one
    52  [or], class two or class five real property was entered, the commission-
    53  er  of  finance  may  execute  a deed, pursuant to subdivision b of this

    54  section, with respect to such parcel. The owner  of  said  parcel  shall
    55  continue  to  have  all  of  the  rights, liabilities, responsibilities,
    56  duties and obligations of an owner of such parcel,  including,  but  not

        S. 7770                            16                           A. 10737
 
     1  limited to, maintaining such parcel in compliance with the housing main-
     2  tenance,  building and fire codes, and all other applicable laws, unless
     3  and until the commissioner of finance has prepared and executed  a  deed
     4  conveying  to  the  city  or to a third party full and complete title to
     5  such parcel. Upon the execution of such deed,  the  city  or  the  third
     6  party  shall  be seized of an estate in fee simple absolute in such land
     7  and all persons, including the state of New York, infants, incompetents,

     8  absentees and non-residents who may have had any right, title, interest,
     9  claim, lien or equity of redemption in  or  upon  such  lands  shall  be
    10  barred and forever foreclosed of all such right, title, interest, claim,
    11  lien  or  equity of redemption, except as otherwise provided in subdivi-
    12  sions e and f of this section. The appointment and tenure of  receivers,
    13  trustees  or  any  other persons, including administrators under article
    14  seven-A of the real property actions and proceedings law,  appointed  by
    15  an  order of a court to manage real property, shall terminate when title
    16  to such property vests in the city or a  third  party  pursuant  to  the
    17  provisions  of  this  chapter.  After  such termination, said receivers,
    18  trustees or administrators shall  be  accountable  to  the  courts  that
    19  appointed  them  for  the  faithful performance of their fiduciary obli-

    20  gations during the term of their appointment and to  the  city  or  such
    21  third  party  for  any  rents and income received by them for any period
    22  subsequent to the date of the vesting of title in the city or such third
    23  party.
    24    If the city serves a tenant in possession  of  a  dwelling  unit  with
    25  notice  of  termination  of  tenancy on grounds other than nonpayment of
    26  rent, the acceptance of rent for the first forty-five days after  termi-
    27  nation  of  tenancy  by  anyone other than an employee of the department
    28  designated by the department to receive such rent shall not be deemed or
    29  construed as a waiver of the city's right to initiate  and  prosecute  a
    30  proceeding to terminate the tenancy for good cause.
    31    d. Within four months after the date on which, pursuant to subdivision
    32  b  of  this  section,  the  final  judgment  authorizing  the  award  of

    33  possession of a parcel of class one [or], class two or class  five  real
    34  property  was  entered,  any person claiming to have an interest in such
    35  parcel shall have the right to make a payment  to  the  commissioner  of
    36  finance  consisting  of  all  taxes, assessments and other legal charges
    37  owing on said parcel, the lawful interest thereon to the date of payment
    38  and a penalty of five percent of said payment of taxes, assessments  and
    39  other legal charges and interest, which penalty may not exceed one thou-
    40  sand dollars. Such payment shall be made in cash or by certified or bank
    41  check.  Within  such  four-month period, such interested person may also
    42  request an installment agreement from the commissioner of finance.  Such
    43  agreement  shall  require,  in  addition  to full payment of the penalty

    44  specified in this subdivision at the  time  such  agreement  is  entered
    45  into,  the  payment  at  such time of a first installment equal to fifty
    46  percent of all taxes, assessments  and  other  legal  charges,  and  the
    47  lawful  interest  thereon, then owing on such parcel, and the payment of
    48  the balance of such taxes,  assessments  and  other  legal  charges  and
    49  interest  in four equal quarterly installments together with all current
    50  taxes, assessments and other legal charges that accrue during such peri-
    51  od. Upon receipt of payment in full of the amount specified in the first
    52  sentence of this subdivision, the commissioner of finance  shall  direct
    53  the  corporation  counsel  to  prepare  and cause to be entered an order
    54  discontinuing the in rem tax foreclosure action  as  to  said  property,
    55  cancelling the notice of pendency of such action as to said property and

    56  vacating  and setting aside the final judgment. Upon the execution of an

        S. 7770                            17                           A. 10737
 
     1  installment agreement and payment of the amounts due at  the  time  such
     2  agreement  is executed as provided in this subdivision, the commissioner
     3  of finance shall direct the corporation counsel to prepare and cause  to
     4  be  entered  an order vacating and setting aside the final judgment. The
     5  entry of either such order shall restore all parties, including  owners,
     6  mortgagees  and  any  and  all lienors, receivers and administrators and
     7  encumbrancers, to the status they held  immediately  before  such  final
     8  judgment  was  entered.    Where the commissioner of finance approves an
     9  application requesting an installment agreement pursuant to this  subdi-

    10  vision,  the  order  vacating and setting aside the final judgment shall
    11  provide that in the event of any default as to  the  payment  of  either
    12  quarterly  installments  or  current  taxes,  assessments or other legal
    13  charges during the term of  such  agreement,  all  payments  under  said
    14  agreement  shall  be  forfeited and the corporation counsel, immediately
    15  upon notification by the commissioner of finance of such default,  shall
    16  cause to be entered as to such property a supplemental judgment of fore-
    17  closure  in  the  in  rem  action  which  authorizes the commissioner of
    18  finance to prepare, execute and cause to be recorded  a  deed  conveying
    19  either  to  the city or to a third party full and complete title to such
    20  lands. Upon the entry of such supplemental judgment, the  provisions  of
    21  subdivisions  c through i of this section shall apply in the same manner

    22  as such subdivisions would have applied had no  payment  been  made  nor
    23  installment agreement executed during the four-month period specified in
    24  this subdivision.
    25    1. If the commissioner of finance has prepared, executed and caused to
    26  be  recorded  a  deed conveying to the city full and complete title to a
    27  parcel of class one [or], class two or class five real property acquired
    28  by in rem tax foreclosure, the city's interest in  such  parcel  may  be
    29  released  pursuant  to  this subdivision on the application of any party
    30  who has an interest in said parcel as either owner,  mortgagee,  lienor,
    31  or encumbrancer at the time of the city's acquisition thereof where such
    32  application  is  made  at any time up to sixteen months from the date on
    33  which the deed by which the city  acquired  title  to  said  parcel  was
    34  recorded.

    35    4. The provisions contained in subdivision g of section 11-424 of this
    36  chapter shall govern such an application, except as follows:
    37    (a)  where  such  provisions  are  inconsistent  with  the  provisions
    38  contained in this subdivision, the provisions contained in this subdivi-
    39  sion shall govern such application; and
    40    (b) where the in  rem  foreclosure  release  board  denies  a  written
    41  request  for  an installment agreement that was filed in connection with
    42  an application for release of the city's interest in a parcel  of  class
    43  one [or], class two or class five real property and such application was
    44  filed  within  thirty  days of the date of the city's acquisition of the
    45  property sought to be  released,  the  board  may,  in  its  discretion,
    46  authorize  a release of the city's interest, provided that the applicant

    47  thereafter pays all the amounts required to be paid pursuant to subdivi-
    48  sion d of section 11-424 of this chapter within thirty days of the  date
    49  on which a letter requesting such payment is mailed or delivered to such
    50  applicant.
    51    f. If the commissioner of finance has prepared, executed and caused to
    52  be  recorded  a  deed conveying to the city full and complete title to a
    53  parcel of class one [or], class two or class five real property acquired
    54  by in rem tax foreclosure and such parcel is entitled  to  an  exemption
    55  under any of the provisions of article four of the real property tax law
    56  during all or part of the period covered by the tax items appearing on a

        S. 7770                            18                           A. 10737
 
     1  list  of  delinquent  taxes,  the  owner  of such parcel may apply for a

     2  release of the  city's  interest  in  such  exempt  property  under  the
     3  provisions  of  subdivision  e of this section during the period of time
     4  set  forth  in  paragraph  one of such subdivision and for an additional
     5  period up to ten years from the date on which the deed by which the city
     6  acquired title to said property was recorded. The  application  of  such
     7  owner  shall  be  accompanied by the nonrefundable fee required by para-
     8  graph four of subdivision b of section 11-424 of this chapter and  shall
     9  contain,  in addition to the statements, searches and proofs required by
    10  subdivision e of this section, a statement that an exemption  under  the
    11  real  property  tax  law  is  being claimed. Such application shall also
    12  state either that it is accompanied by the written  certificate  of  the
    13  comptroller setting forth the precise period during which said property,

    14  while  owned by such application, and during the period after the city's
    15  acquisition up to the date of the certificate if said property was still
    16  being used for an exempt purpose after said acquisition, was entitled to
    17  an exemption and the exact nature and extent of such exemption  or  that
    18  an  application  for  such  written  certificate has been filed with the
    19  comptroller. On issuing such written certificate, the comptroller  shall
    20  cancel  those  tax items which have accrued during the period covered by
    21  the certificate to the extent the applicant is entitled to an  exemption
    22  as set forth in the certificate. A release of the city's interest may be
    23  authorized  only  at  the  discretion  of the in rem foreclosure release
    24  board and, except as otherwise provided in paragraph four of subdivision
    25  e of this section, subject to all the restrictions set forth in subdivi-

    26  sion g of section 11-424 of this chapter. A release to an exempt  appli-
    27  cant  shall  be  effected  only after said applicant has paid all of the
    28  amounts required to be paid by subdivision d of section 11-424  of  this
    29  chapter,  except  for those tax items which have been canceled, in whole
    30  or in part, pursuant to the  comptroller's  certificate,  within  thirty
    31  days  of  the  date  on which the letter requesting payment is mailed or
    32  delivered to the applicant.
    33    g. If the commissioner of finance has prepared, executed and caused to
    34  be recorded a deed conveying to the city or to a third  party  full  and
    35  complete  title  to  a parcel of class one [or], class two or class five
    36  real property  acquired  by  in  rem  tax  foreclosure,  the  provisions
    37  contained  in subdivisions f and i of section 11-424 of this chapter for

    38  the release of property so acquired  shall  not  be  available.  If  the
    39  commissioner of finance has prepared, executed and caused to be recorded
    40  a deed conveying to a third party full and complete title to a parcel of
    41  class one or class two real property acquired by in rem tax foreclosure,
    42  the provisions contained in subdivisions e and f of this section for the
    43  release of property so acquired shall not be available.
    44    h.  Every  deed given pursuant to the provisions of this section shall
    45  be presumptive evidence that the action and all proceedings therein  and
    46  all  proceedings  prior thereto from and including the assessment of the
    47  lands affected and all notices required  by  law  were  regular  and  in
    48  accordance  with  all  provisions  of  law  relating thereto. After four
    49  months from the date of entry of  the  final  judgment  authorizing  the

    50  award  of possession of any parcel of class one [or], class two or class
    51  five real property pursuant to  the  provisions  of  this  section,  the
    52  presumption shall be conclusive. No action to set aside such deed may be
    53  maintained  unless  the  action is commenced and a notice of pendency of
    54  the action is filed in the office of the property county clerk prior  to
    55  the  time  that  the presumption becomes conclusive as aforesaid. Should
    56  any lawsuit or proceeding be commenced to set aside a deed conveying  to

        S. 7770                            19                           A. 10737
 
     1  a  third  party a parcel of class one [or], class two or class five real
     2  property pursuant to the provisions of this section,  such  third  party

     3  shall send to the corporation counsel within ten days of their receipt a
     4  copy  of  any  papers  served  on  such  third  party in such lawsuit or
     5  proceeding.
     6    i. If the commissioner of finance does not execute a deed conveying to
     7  the city or to a third party a parcel of class one [or],  class  two  or
     8  class  five  real  property within eight months after the entry of final
     9  judgment authorizing the award of possession of such parcel pursuant  to
    10  subdivision  b of this section, the commissioner of finance shall direct
    11  the corporation counsel to prepare and cause  to  be  entered  an  order
    12  discontinuing the in rem foreclosure action as to said property, cancel-
    13  ing the notice of pendency of such action as to said property and vacat-
    14  ing and setting aside said final judgment. The entry of such order shall

    15  restore  all  parties,  including  owners,  mortgagees  and  any and all
    16  lienors, receivers and administrators and encumbrancers, to  the  status
    17  they held immediately before such final judgment was entered.
    18    j.  If  the  commissioner  of finance directs the corporation counsel,
    19  pursuant to subdivision i of this section, to prepare and  cause  to  be
    20  entered  an  order  discontinuing  the  in  rem  foreclosure action with
    21  respect to a parcel of class one [or], class  two  or  class  five  real
    22  property  determined  to  be  distressed pursuant to section 11-401.1 of
    23  this chapter, the commissioner of housing preservation  and  development
    24  shall  evaluate  the  parcel  determined  to be distressed and take such
    25  action as he or she deems appropriate under the  programs,  existing  at

    26  the time of such evaluation, that are designed to encourage the rehabil-
    27  itation and preservation of existing housing, and shall monitor or cause
    28  to  be monitored the status of the property. The commissioner of housing
    29  preservation and development shall maintain  a  register  of  properties
    30  determined to be distressed.
    31    §  22.  Section 11-412.2 of the administrative code of the city of New
    32  York, as added by local law number 37 of the city of New  York  for  the
    33  year 1996, is amended to read as follows:
    34    §  11-412.2 Council review of conveyance to a third party. The commis-
    35  sioner of finance shall, prior to the execution of a deed conveying full
    36  and complete title of any parcel of class one [or], class two  or  class
    37  five real property to a third party pursuant to subdivision c of section

    38  11-412.1 of this chapter, notify the council of the proposed conveyance.
    39  Within  forty-five  days  of  such  notification, the council may act by
    40  local law disapproving the proposed conveyance. In the event the council
    41  does not act by local law within such forty-five day period, the council
    42  shall be deemed to have approved the proposed  conveyance.  During  such
    43  forty-five day period or, if the city council acts by local law pursuant
    44  to  this section, during the period of time from the notification of the
    45  council to the presentation to the mayor of such local  law  and  during
    46  any  additional  period of time prescribed in section 37 of the charter,
    47  the eight-month period provided in  subdivisions  c  and  i  of  section
    48  11-412.1 of this chapter shall be tolled.
    49    § 23. Paragraph 1 of subdivision a of section 163 of the New York city

    50  charter,  as  amended by local law number 77 of the city of New York for
    51  the year 1984, is amended to read as follows:
    52    1. "Class designation"  shall  mean  the  determination,  pursuant  to
    53  section  eighteen  hundred  two of the real property tax law, of whether
    54  real property is included in class one, two, three [or], four or five.

        S. 7770                            20                           A. 10737
 
     1    § 24. Paragraph 1 of subdivision a of section 164-b of  the  New  York
     2  city  charter,  as  added by local law number 11 of the city of New York
     3  for the year 1984, is amended to read as follows:
     4    1. "Class designation" shall mean the determination, pursuant to arti-
     5  cle  eighteen  of the real property tax law, of whether real property is

     6  included in class one, two, three [or], four or five.
     7    § 25. This act shall take effect on the first of January next succeed-
     8  ing the date on which it shall have become a  law  and  shall  apply  to
     9  assessment rolls prepared pursuant to a taxable status date occurring on
    10  or  after  such date; provided, however, that effective immediately, the
    11  addition, amendment and/or repeal of any rule  or  regulation  necessary
    12  for  the implementation of this act on its effective date are authorized
    13  and directed to be made and completed on or before such effective date.
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