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
________________________________________________________________________
1408
2017-2018 Regular Sessions
IN SENATE
January 9, 2017
___________
Introduced by Sens. AVELLA, KLEIN, STAVISKY -- read twice and ordered
printed, and when printed to be committed to the Committee on Local
Government
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01285-01-7
S. 1408 2
1 on an assessment roll as a dwelling unit in other than condomin-
2 ium form of ownership; and (c) residential real property
3 consisting of one family house structures owned by the occupant,
4 situated on land held in cooperative ownership by owner occupi-
5 ers, provided that; (i) such house structures and land consti-
6 tuted bungalow colonies in existence prior to nineteen hundred
7 forty; and (ii) the land is held in cooperative ownership for
8 the sole purpose of maintaining one family residences for
9 members own use; and (d) all vacant land located within a
10 special assessing unit which is a city (i) other than such land
11 in the borough of Manhattan, provided that any such vacant land
12 which is not zoned residential must be situated immediately
13 adjacent to property improved with a residential structure as
14 defined in subparagraphs (a) and (b) of this paragraph, be owned
15 by the same owner as such immediately adjacent residential prop-
16 erty immediately prior to and since January 1, 1989, and have a
17 total area not exceeding 10,000 square feet; and (ii) located in
18 the borough of Manhattan north of or adjacent to the north side
19 of 110th street provided such vacant land was classified within
20 this class on the assessment roll with a taxable status date of
21 January 5, 2008 and the owner of such land has entered into a
22 recorded agreement with a governmental entity on or before
23 December 31, 2008 requiring construction of housing affordable
24 to persons or families of low income in accordance with the
25 provisions of the private housing finance law. Notwithstanding
26 the foregoing, such vacant land shall be classified according to
27 its use on the assessment roll with a taxable status date imme-
28 diately following commencement of construction, provided
29 further, that construction pursuant to an approved plan for
30 affordable housing shall commence no later than December 31,
31 2010; and (e) all vacant land located within a special assessing
32 unit which is not a city, provided that such vacant land which
33 is not zoned residential must be situated immediately adjacent
34 to real property defined in subparagraph (a), (b) or (c) of this
35 paragraph and be owned by the same person or persons who own the
36 real property defined in such subparagraph immediately prior to
37 and since January 1, 2003;
38 Class one-a: all other residential real property held in condominium
39 or cooperative form of ownership which is not designated as
40 class one; the department of finance of any city enacting a
41 local law pursuant to this section shall reclassify class one-a
42 properties used primarily to generate rental income to class
43 two. The department of finance of any city enacting a local law
44 pursuant to this section shall have, in addition to any other
45 functions, powers and duties which have been or may be conferred
46 on it by law, the power to make and promulgate rules to carry
47 out the purposes of this section including, but not limited to,
48 rules defining the class one-a properties primarily used to
49 generate rental income, and relating to the timing, form and
50 manner of any certification required to be submitted under this
51 section. If a property previously reclassified from class one-a
52 to class two ceases to be used primarily to generate rental
53 income, the department shall reclassify such property to class
54 one-a. The department shall use a five-year period when deter-
55 mining whether a property is used primarily to generate rental
56 income;
S. 1408 3
1 Class two: all other residential real property which is not designated
2 as class one or class one-a, except hotels and motels and other
3 similar commercial property;
4 Class three: utility real property and property subject to former
5 section four hundred seventy of this chapter;
6 Class four: all other real property which is not designated as class
7 one, class one-a, class two, or class three.
8 § 1-a. The real property tax law is amended by adding a new section
9 1803-c to read as follows:
10 § 1803-c. Calculation of shares. 1. For the calendar year two thou-
11 sand eighteen, notwithstanding the provisions of sections eighteen
12 hundred three, eighteen hundred three-a, and eighteen hundred three-b of
13 this article to the contrary, the New York city commissioner of finance
14 shall establish a new class one-a pursuant to subdivision one of section
15 eighteen hundred two of this article and shall calculate shares for
16 class one, class one-a, class two, class three and class four where the
17 base year used in the calculation of the current base proportion shall
18 be the 2017 assessment roll and the sum of class one-a and class two
19 shall not exceed the prior year adjusted base proportion for such class-
20 es.
21 2. After two thousand nineteen, assessment rolls prepared according to
22 January 1, 2019, the adjusted base proportions for class one and class
23 one-a, shall not exceed each class' prior adjusted base proportion by
24 more than five percent.
25 3. In a city having a population of one million or more, such city's
26 tax fixing resolution shall set a tax rate for class one-a in the same
27 manner as all class shares are calculated pursuant to sections eighteen
28 hundred three, eighteen hundred three-a and eighteen hundred three-b of
29 this article.
30 4. The assessment ratio for class one-a shall be six percent.
31 § 2. Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4
32 of section 307-a of the real property tax law, as added by section 1 of
33 part G of chapter 63 of the laws of 2003, are amended to read as
34 follows:
35 1. Generally. Notwithstanding any provision of any general, special
36 or local law to the contrary, any city with a population of one million
37 or more is hereby authorized and empowered to adopt and amend local laws
38 in accordance with this section imposing an additional tax on certain
39 class one and class one-a properties, as such properties are defined in
40 section eighteen hundred two of this chapter, excluding vacant land.
41 (c) "Net real property tax" means the real property tax assessed on a
42 class one or class one-a property after deduction for any exemption or
43 abatement received pursuant to this chapter.
44 4. Property subject to additional tax. Such surcharge shall be imposed
45 on class one and class one-a property, excluding vacant land, that
46 provides rental income and is not the primary residence of the owner or
47 owners of such class one or class one-a property, or the primary resi-
48 dence of the parent or child of such owner or owners.
49 § 3. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
50 erty tax law, as added by chapter 273 of the laws of 1996, is amended
51 and a new paragraph (i) is added to read as follows:
52 (f) "Property" means real property designated as class [two] one-a,
53 pursuant to section eighteen hundred two of this chapter, held in the
54 cooperative or condominium form of ownership.
55 (i) "Market value" shall be calculated by the New York city department
56 of finance based upon comparable sales.
S. 1408 4
1 § 4. Paragraphs (d-1), (d-2), (d-3) and (d-4) of subdivision 2 of
2 section 467-a of the real property tax law, as amended by section 62 of
3 part A of chapter 20 of the laws of 2015, are amended and seven new
4 paragraphs (d-7), (d-8), (d-9), (d-10), (d-11), (d-12) and (d-13) are
5 added to read as follows:
6 (d-1) In the fiscal years commencing in calendar years two thousand
7 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
8 ing units in property whose average unit assessed value is less than or
9 equal to fifty thousand dollars shall receive a partial abatement of the
10 real property taxes attributable to or due on such dwelling units of
11 twenty-five percent, twenty-six and one-half percent and twenty-eight
12 and one-tenth percent respectively. In the fiscal years commencing in
13 calendar years two thousand fifteen[,] and two thousand sixteen[, two
14 thousand seventeen and two thousand eighteen] eligible dwelling units in
15 property whose average unit assessed value is less than or equal to
16 fifty thousand dollars shall receive a partial abatement of the real
17 property taxes attributable to or due on such dwelling units of twenty-
18 eight and one-tenth percent.
19 (d-2) In the fiscal years commencing in calendar years two thousand
20 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
21 ing units in property whose average unit assessed value is more than
22 fifty thousand dollars, but less than or equal to fifty-five thousand
23 dollars, shall receive a partial abatement of the real property taxes
24 attributable to or due on such dwelling units of twenty-two and one-half
25 percent, twenty-three and eight-tenths percent and twenty-five and two-
26 tenths percent respectively. In the fiscal years commencing in calendar
27 years two thousand fifteen[,] and two thousand sixteen[, two thousand
28 seventeen and two thousand eighteen] eligible dwelling units in property
29 whose average unit assessed value is more than fifty thousand dollars,
30 but less than or equal to fifty-five thousand dollars, shall receive a
31 partial abatement of the real property taxes attributable to or due on
32 such dwelling units of twenty-five and two-tenths percent.
33 (d-3) In the fiscal years commencing in calendar years two thousand
34 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
35 ing units in property whose average unit assessed value is more than
36 fifty-five thousand dollars, but less than or equal to sixty thousand
37 dollars, shall receive a partial abatement of the real property taxes
38 attributable to or due on such dwelling units of twenty percent, twen-
39 ty-one and two-tenths percent, and twenty-two and five-tenths percent
40 respectively. In the fiscal years commencing in calendar years two thou-
41 sand fifteen[,] and two thousand sixteen[, two thousand seventeen and
42 two thousand eighteen] eligible dwelling units in property whose average
43 unit assessed value is more than fifty-five thousand dollars, but less
44 than or equal to sixty thousand dollars, shall receive a partial abate-
45 ment of the real property taxes attributable to or due on such dwelling
46 units of twenty-two and five-tenths percent.
47 (d-4) In the fiscal years commencing in calendar years two thousand
48 twelve, two thousand thirteen, two thousand fourteen, two thousand
49 fifteen[,] and two thousand sixteen[, two thousand seventeen and two
50 thousand eighteen,] eligible dwelling units in property whose average
51 unit assessed value is more than sixty thousand dollars shall receive a
52 partial abatement of the real property taxes attributable to or due on
53 such dwelling units of seventeen and one-half percent.
54 (d-7) Eligible dwelling units in property whose average unit market
55 value is less than or equal to six hundred fifty thousand dollars shall
56 receive a partial abatement of real property taxes attributable to or
S. 1408 5
1 due on such dwelling units, not to exceed thirty-three percent in the
2 fiscal year commencing in calendar year two thousand eighteen and there-
3 after.
4 (d-8) Eligible dwelling units in property whose average unit market
5 value is between six hundred fifty thousand one dollars to seven hundred
6 fifty thousand dollars shall receive a partial abatement of the real
7 property taxes attributable to or due on such dwelling units, not to
8 exceed twenty-two and five-tenths percent in the fiscal year commencing
9 in calendar year two thousand eighteen and thereafter.
10 (d-9) Eligible dwelling units in property whose average unit market
11 value is between seven hundred fifty thousand one and one million five
12 hundred thousand dollars shall receive a partial abatement of the real
13 property taxes attributable to or due on such dwelling units, not to
14 exceed seventeen and five-tenths percent in the fiscal year commencing
15 in calendar year two thousand eighteen and thereafter.
16 (d-10) Eligible dwelling units in property whose average unit market
17 value is between one million five hundred thousand one dollars and two
18 million six hundred sixty-six thousand six hundred sixty-seven dollars
19 shall receive a partial abatement of the real property taxes attribut-
20 able to or due on such dwelling units, not to exceed thirteen and thir-
21 teen-hundredths percent in the fiscal year commencing in calendar year
22 two thousand eighteen and thereafter.
23 (d-11) Eligible dwelling units in property whose average unit market
24 value is between two million six hundred sixty-six thousand six hundred
25 sixty-eight dollars and three million eight hundred thirty-three thou-
26 sand three hundred thirty-three dollars shall receive a partial abate-
27 ment of the real property taxes attributable to or due on such dwelling
28 units, not to exceed eight and seventy-five hundredth percent in the
29 fiscal year commencing in calendar year two thousand eighteen and there-
30 after.
31 (d-12) Eligible dwelling units in property whose average unit market
32 value is between three million eight hundred thirty-three thousand three
33 hundred thirty-four dollars and five million dollars shall receive a
34 partial abatement of the real property taxes attributable to or due on
35 such dwelling units, not to exceed four and thirty-eight hundredths
36 percent in the fiscal year commencing in calendar year two thousand
37 eighteen and thereafter.
38 (d-13) Eligible dwelling units in property whose average unit market
39 value is five million dollars or more shall receive a partial abatement
40 of the real property taxes attributable to or due on such dwelling
41 units, not to exceed zero percent in the fiscal year commencing in
42 calendar year two thousand eighteen and thereafter.
43 § 4-a. The real property tax law is amended by adding a new section
44 467-a-1 to read as follows:
45 § 467-a-1. Enhanced partial abatement for certain condominiums and
46 cooperative residences. 1. In addition to the partial abatement received
47 pursuant to section four hundred sixty-seven-a of this article, in the
48 fiscal year commencing in calendar year two thousand eighteen, eligible
49 units in property whose average unit market value is less than six
50 hundred fifty thousand dollars shall receive an enhanced abatement equal
51 to the excess above two percent of the difference between the prior
52 year's property tax and the current year's property tax.
53 2. 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 nineteen, eligible units in property
56 whose average unit market value is less than six hundred fifty thousand
S. 1408 6
1 dollars shall receive an enhanced abatement equal to the excess above
2 four percent of the difference between the prior year's property tax and
3 the current year's property tax.
4 3. In addition to the partial abatement received pursuant to section
5 four hundred sixty-seven-a of this article, in the fiscal year commenc-
6 ing in calendar year two thousand twenty and thereafter, eligible units
7 in property whose average unit market value is less than six hundred
8 fifty thousand dollars shall receive an enhanced abatement equal to the
9 excess above six percent of the difference between the prior year's
10 property tax and the current year's property tax. The enhanced condomin-
11 ium and cooperative abatement shall not be eligible for units where the
12 commissioner determines that renovation or construction within the unit
13 or building has produced a substantial yearly increase in the unit's
14 assessed value.
15 § 5. Subdivision 7 of section 499-aaa of the real property tax law, as
16 added by chapter 461 of the laws of 2008, is amended to read as follows:
17 7. "Eligible building" shall mean a class one, class one-a, class two
18 or class four real property, as defined in subdivision one of section
19 eighteen hundred two of this chapter, located within a city having a
20 population of one million or more persons. No building shall be eligible
21 for more than one tax abatement pursuant to this title.
22 § 6. Subdivision 7 of section 499-aaaa of the real property tax law,
23 as added by chapter 473 of the laws of 2008, is amended to read as
24 follows:
25 7. "Eligible building" shall mean a class one, class one-a, class two
26 or class four real property, as defined in subdivision one of section
27 eighteen hundred two of this chapter, located within a city having a
28 population of one million or more persons. No building shall be eligible
29 for more than one tax abatement pursuant to this title.
30 § 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
31 ty tax law, as added by chapter 714 of the laws of 1982, is amended to
32 read as follows:
33 (b) in a special assessing unit, the determination, pursuant to
34 section eighteen hundred two of this chapter, of whether real property
35 is included in class one, one-a, two, three or four.
36 § 8. Subdivision 10 of section 523-b of the real property tax law, as
37 added by chapter 593 of the laws of 1998, is amended to read as follows:
38 10. On or before April first, each year the commission shall mail to
39 each applicant, who has filed an application for the correction of the
40 assessment, a notice of the commission's determination of such appli-
41 cant's assessment. Such notice shall also contain the statement as to
42 the final determination of the assessment review commission, or a state-
43 ment that the commission has not yet made a determination as to the
44 final assessed valuation which shall be made as soon as the petitioners
45 application is reviewed or heard. If the applicants property is a prop-
46 erty defined in subdivision one of section eighteen hundred two of this
47 chapter as "Class 1", the commissions determination shall contain the
48 statement: "If you are dissatisfied with the determination of the
49 Assessment Review Commission and you are the owner of a one, two or
50 three family residential structure or residential real property not more
51 than three stories in height held in condominium form of ownership,
52 provided that no dwelling unit therein previously was on an assessment
53 roll as a dwelling unit in other than condominium form of ownership, and
54 you reside at such residence, you may seek judicial review of your
55 assessment either under title one of article seven of the real property
56 tax law or under small claims assessment review law provided by title
S. 1408 7
1 one-A of article seven of the real property tax law." Such notice shall
2 also state that the last date to file petitions for judicial review and
3 the location where small claims assessment review petitions may be
4 obtained.
5 Each applicant that has filed an application of a property as defined
6 in subdivision one of section eighteen hundred two of this chapter as
7 "Class 1-a", "Class 2", "Class 3" or "Class 4", shall receive a notice
8 as to the final determination of the assessment review commission or a
9 statement that the commission has not yet made a determination as to the
10 final assessed valuation which shall be made as soon as the petitioners
11 application is reviewed or heard. Such applicants determinations shall
12 contain the statement: "If you are dissatisfied with the determination
13 of the Assessment Review Commission you may seek judicial review of your
14 assessment under title one of article seven of the real property tax
15 law." Such notice shall also state the last date to file petitions for
16 judicial review. A final determination when rendered shall contain the
17 same statement. Failure to mail any such notice or failure of the appli-
18 cant to receive the same shall not affect the validity of the assess-
19 ment.
20 § 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
21 ty tax law, as added by chapter 714 of the laws of 1982, is amended to
22 read as follows:
23 (b) In a special assessing unit, the determination, pursuant to
24 section eighteen hundred two of this chapter, of whether real property
25 is included in class one, one-a, two, three or four.
26 § 10. Subparagraph 2 of paragraph (a) of subdivision 3 of section 720
27 of the real property tax law, as amended by chapter 679 of the laws of
28 1986, is amended to read as follows:
29 (2) "Major type of property" in special assessing units, for assess-
30 ments on rolls completed after December thirty-first, nineteen hundred
31 eighty-one, shall mean classes one, one-a, two, three and four as
32 defined in subdivision one of section eighteen hundred two of this chap-
33 ter.
34 § 11. The opening paragraph of subdivision 1 of section 1805 of the
35 real property tax law, as amended by chapter 935 of the laws of 1984, is
36 amended and two new subdivisions 1-a and 1-b are added to read as
37 follows:
38 The assessor of any special assessing unit shall not increase the
39 assessment of any individual parcel classified in class one or class
40 one-a in any one year, as measured from the assessment on the previous
41 year's assessment roll, by more than six percent and shall not increase
42 such assessment by more than twenty percent in any five-year period. The
43 first such five-year period shall be measured from the individual
44 assessment appearing on the assessment roll completed in nineteen
45 hundred eighty; provided that if such parcel would not have been subject
46 to the provisions of this subdivision in nineteen hundred eighty had
47 this subdivision then been in effect, the first such five-year period
48 shall be measured from the first year after nineteen hundred eighty in
49 which this subdivision applied to such parcel or would have applied to
50 such parcel had this subdivision been in effect in such year.
51 If, in respect to any individual parcel classified in class one on the
52 assessment roll completed and applicable for the year nineteen hundred
53 eighty-two, the assessment for the year nineteen hundred eighty-one
54 exceeds by more than twenty percent the assessment for the year nineteen
55 hundred eighty, such assessor shall compute the actual assessments to be
S. 1408 8
1 entered on assessment rolls applicable to the years nineteen hundred
2 eighty-two through nineteen hundred ninety as follows:
3 1-a. Assessment rolls computed for class one-a shall include any
4 outstanding phased-in increases accrued prior to the effective date of
5 the chapter of the laws of two thousand seventeen which added this
6 subdivision pursuant to subdivision three of this section.
7 1-b. Class one-a parcels shall be assessed in a method comparable to
8 class one parcels.
9 § 12. Subdivisions e and f of section 11-208.1 of the administrative
10 code of the city of New York, subdivision e as amended by local law
11 number 41 of the city of New York for the year 1986 and subdivision f as
12 amended by chapter 385 of the laws of 2006, are amended to read as
13 follows:
14 e. As used in this section, the term "income-producing property" means
15 property owned for the purpose of securing an income from the property
16 itself, but shall not include property with an assessed value of forty
17 thousand dollars or less, or residential property containing ten or
18 fewer dwelling units or property classified in class one, one-a or two
19 as defined in article eighteen of the real property tax law containing
20 six or fewer dwelling units and one retail store.
21 f. Except in accordance with proper judicial order or as otherwise
22 provided by law, it shall be unlawful for the commissioner, any officer
23 or employee of the department, the president or a commissioner or
24 employee of the tax commission, any person engaged or retained by the
25 department or the tax commission on an independent contract basis, or
26 any person, who, pursuant to this section, is permitted to inspect any
27 income and expense statement or to whom a copy, an abstract or a portion
28 of any such statement is furnished, to divulge or make known in any
29 manner except as provided in this subdivision, the amount of income
30 and/or expense or any particulars set forth or disclosed in any such
31 statement required under this section. The commissioner, the president
32 of the tax commission, or any commissioner or officer or employee of the
33 department or the tax commission charged with the custody of such state-
34 ments shall not be required to produce any income and expense statement
35 or evidence of anything contained in them in any action or proceeding in
36 any court, except on behalf of the department or the tax commission.
37 Nothing herein shall be construed to prohibit the delivery to an owner
38 or his or her duly authorized representative of a certified copy of any
39 statement filed by such owner pursuant to this section or to prohibit
40 the publication of statistics so classified as to prevent the identifi-
41 cation of particular statements and the items thereof, or making known
42 aggregate income and expense information disclosed with respect to prop-
43 erty classified as class four as defined in article eighteen of the real
44 property tax law without identifying information about individual leas-
45 es, or making known a range as determined by the commissioner within
46 which the income and expenses of a property classified as class one-a or
47 class two falls, or the inspection by the legal representatives of the
48 department or of the tax commission of the statement of any owner who
49 shall bring an action to correct the assessment. Any violation of the
50 provisions of this subdivision shall be punished by a fine not exceeding
51 one thousand dollars or by imprisonment not exceeding one year, or both,
52 at the discretion of the court, and if the offender be an officer or
53 employee of the department or the tax commission, the offender shall be
54 dismissed from office.
S. 1408 9
1 § 13. Subdivision a of section 11-238 of the administrative code of
2 the city of New York, as amended by local law number 27 of the city of
3 New York for the year 2006, is amended to read as follows:
4 a. Imposition of surcharge. A real property tax surcharge is hereby
5 imposed on class one and class one-a property, as defined in section
6 eighteen hundred two of the real property tax law, excluding vacant
7 land, that provides rental income and is not the primary residence of
8 the owner or owners of such class one or class one-a property, or the
9 primary residence of the parent or child of such owner or owners, in an
10 amount equal to zero percent of the net real property taxes for fiscal
11 years beginning on or after July first, two thousand six. As used in
12 this section, "net real property tax" means the real property tax
13 assessed on class one property after deduction for any exemption or
14 abatement received pursuant to the real property tax law or this title.
15 § 14. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of
16 the administrative code of the city of New York, subdivisions a, a-1,
17 a-2 and a-3 as amended and subdivisions a-4 and a-5 as added by local
18 law number 15 of the city of New York for the year 2011, are amended to
19 read as follows:
20 a. A tax lien or tax liens on a property or any component of the
21 amount thereof may be sold by the city as authorized by subdivision b of
22 this section, when such tax lien or tax liens shall have remained unpaid
23 in whole or in part for one year, provided, however, that a tax lien or
24 tax liens on any class one property or on class [two] one-a property
25 [that is a residential condominium or residential cooperative], as such
26 classes of property are defined in subdivision one of section eighteen
27 hundred two of the real property tax law, may be sold by the city only
28 when the real property tax component of such tax lien or tax liens shall
29 have remained unpaid in whole or in part for three years or, in the case
30 of any 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], as such
33 class of property is defined in subdivision one of section eighteen
34 hundred two of the real property tax law, for two years, and equals or
35 exceeds the sum of five thousand dollars or, in the case of abandoned
36 class one property or abandoned class [two] one-a property [that is a
37 residential condominium or residential cooperative], for eighteen
38 months, and after such sale, shall be transferred, in the manner
39 provided by this chapter, and provided, further, however, that (i) the
40 real property tax component of such tax lien may not be sold pursuant to
41 this subdivision on any residential real property in class one that is
42 receiving an exemption pursuant to section 11-245.3 or 11-245.4 of this
43 title, or pursuant to section four hundred fifty-eight of the real prop-
44 erty tax law with respect to real property purchased with payments
45 received as prisoner of war compensation from the United States govern-
46 ment, or pursuant to paragraph (b) or (c) of subdivision two of section
47 four hundred fifty-eight-a of the real property tax law, or where the
48 owner of such residential real property in class one is receiving bene-
49 fits in accordance with department of finance memorandum 05-3, or any
50 successor memorandum thereto, relating to active duty military person-
51 nel, or where the owner of such residential real property in class one
52 has been allowed a credit pursuant to subsection (e) of section six
53 hundred six of the tax law for the calendar year in which the date of
54 the first publication, pursuant to subdivision a of section 11-320 of
55 this chapter, of the notice of sale, occurs or for the calendar year
56 immediately preceding such date and (ii) the sewer rents component,
S. 1408 10
1 sewer surcharges component or water rents component of such tax lien may
2 not be sold pursuant to this subdivision on any one family residential
3 real property in class one or on any two or three family residential
4 real property in class one that is receiving an exemption pursuant to
5 section 11-245.3 or 11-245.4 of this title, or pursuant to section four
6 hundred fifty-eight of the real property tax law with respect to real
7 property purchased with payments received as prisoner of war compen-
8 sation from the United States government, or pursuant to paragraph (b)
9 or (c) of subdivision two of section four hundred fifty-eight-a of the
10 real property tax law, or where the owner of any two or three family
11 residential real property in class one is receiving benefits in accord-
12 ance with department of finance memorandum 05-3, or any successor memo-
13 randum thereto, relating to active duty military personnel, or where the
14 owner of any two or three family residential real property in class one
15 has been allowed a credit pursuant to subsection (e) of section six
16 hundred six of the tax law for the calendar year in which the date of
17 the first publication, pursuant to subdivision a of section 11-320 of
18 this chapter, of the notice of sale, occurs or for the calendar year
19 immediately preceding such date. A tax lien or tax liens on any property
20 classified as a class two property, except [a class two property that is
21 a residential condominium or residential cooperative, or] a class two
22 residential property owned by a company organized pursuant to article XI
23 of the state private housing finance law [that is not a residential
24 condominium or a residential cooperative], or class three property, as
25 such classes of property are defined in subdivision one of section eigh-
26 teen hundred two of the real property tax law, shall not be sold by the
27 city unless such tax lien or tax liens include a real property tax
28 component as of the date of the first publication, pursuant to subdivi-
29 sion a of section 11-320 of this chapter, of the notice of sale.
30 Notwithstanding any provision of this subdivision to the contrary, any
31 such tax lien or tax liens that remain unpaid in whole or in part after
32 such date may be sold regardless of whether such tax lien or tax liens
33 include a real property tax component. A tax lien or tax liens on a
34 property classified as a class four property, as such class of property
35 is defined in subdivision one of section eighteen hundred two of the
36 real property tax law, shall not be sold by the city unless such tax
37 lien or tax liens include a real property tax component or sewer rents
38 component or sewer surcharges component or water rents component or
39 emergency repair charges component, where such emergency repair charges
40 accrued on or after January first, two thousand six and are made a lien
41 pursuant to section 27-2144 of this code, as of the date of the first
42 publication, pursuant to subdivision a of section 11-320 of this chap-
43 ter, of the notice of sale, provided, however, that any tax lien or tax
44 liens that remain unpaid in whole or in part after such date may be sold
45 regardless of whether such tax lien or tax liens include a real property
46 tax component, sewer rents component, sewer surcharges component, water
47 rents component or emergency repair charges component. For purposes of
48 this subdivision, the words "real property tax" shall not include an
49 assessment or charge upon property imposed pursuant to section 25-411 of
50 the administrative code. A sale of a tax lien or tax liens shall
51 include, in addition to such lien or liens that have remained unpaid in
52 whole or in part for one year, or, in the case of any class one property
53 or class [two] one-a property [that is a residential condominium or
54 residential cooperative], when the real property tax component of such
55 lien or liens has remained unpaid in whole or in part for three years,
56 or, in the case of any class two residential property owned by a company
S. 1408 11
1 organized pursuant to article XI of the state private housing finance
2 law [that is not a residential condominium or a residential cooper-
3 ative], when the real property tax component of such lien or liens has
4 remained unpaid in whole or in part for two years, and equals or exceeds
5 the sum of five thousand dollars, any taxes, assessments, sewer rents,
6 sewer surcharges, water rents, any other charges that are made a lien
7 subject to the provisions of this chapter, the costs of any advertise-
8 ments and notices given pursuant to this chapter, any other charges that
9 are due and payable, a surcharge pursuant to section 11-332 of this
10 chapter, and interest and penalties thereon or such component of the
11 amount thereof as shall be determined by the commissioner of finance.
12 The commissioner of finance may promulgate rules defining "abandoned"
13 property, as such term is used in this subdivision.
14 a-1. A subsequent tax lien or tax liens on a property or any component
15 of the amount thereof may be sold by the city pursuant to this chapter,
16 provided, however, that notwithstanding any provision in this chapter to
17 the contrary, such tax lien or tax liens may be sold regardless of
18 whether such tax lien or tax liens have remained unpaid in whole or in
19 part for one year and, notwithstanding any provision in this chapter to
20 the contrary, in the case of any class one property or class [two] one-a
21 property [that is a residential condominium or residential cooperative]
22 or, beginning January first, two thousand twelve, in the case of any
23 class two residential property owned by a company organized pursuant to
24 article XI of the state private housing finance law [that is not a resi-
25 dential condominium or a residential cooperative], such tax lien or tax
26 liens may be sold if the real property tax component of such tax lien or
27 tax liens has remained unpaid in whole or in part for one year, 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 resi-
30 dential real property in class one that is receiving an exemption pursu-
31 ant 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 and (ii) the sewer rents component, sewer surcharges component
46 or water rents component of such tax lien may not be sold pursuant to
47 this subdivision on any one family residential real property in class
48 one or on any two or three family residential real property in class one
49 that is receiving an exemption pursuant to section 11-245.3 or 11-245.4
50 of this title, or pursuant to section four hundred fifty-eight of the
51 real property tax law with respect to real property purchased with
52 payments received as prisoner of war compensation from the United States
53 government, or pursuant to paragraph (b) or (c) of subdivision two of
54 section four hundred fifty-eight-a of the real property tax law, or
55 where the owner of any two or three family residential real property in
56 class one is receiving benefits in accordance with department of finance
S. 1408 12
1 memorandum 05-3, or any successor memorandum thereto, relating to active
2 duty military personnel, or where the owner of any two or three family
3 residential real property in class one has been allowed a credit pursu-
4 ant to subsection (e) of section six hundred six of the tax law for the
5 calendar year in which the date of the first publication, pursuant to
6 subdivision a of section 11-320 of this chapter, of the notice of sale,
7 occurs or for the calendar year immediately preceding such date. For
8 purposes of this subdivision, the term "subsequent tax lien or tax
9 liens" shall mean any tax lien or tax liens on property that become such
10 on or after the date of sale of any tax lien or tax liens on such prop-
11 erty that have been sold pursuant to this chapter, provided that the
12 prior tax lien or tax liens remain unpaid as of the date of the first
13 publication, pursuant to subdivision a of section 11-320 of this chap-
14 ter, of the notice of sale of the subsequent tax lien or tax liens. A
15 subsequent tax lien or tax liens on any property classified as a class
16 two property, except [a class two property that is a residential condo-
17 minium or residential cooperative, or] a class two residential property
18 owned by a company organized pursuant to article XI of the state private
19 housing finance law [that is not a residential condominium or a residen-
20 tial cooperative], or class three property, as such classes of property
21 are defined in subdivision one of section eighteen hundred two of the
22 real property tax law, shall not be sold by the city unless such tax
23 lien or tax liens include a real property tax component 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. Notwithstanding any provision of
26 this subdivision to the contrary, any such tax lien or tax liens that
27 remain unpaid in whole or in part after such date may be sold regardless
28 of whether such tax lien or tax liens include a real property tax compo-
29 nent. A subsequent tax lien or tax liens on a property classified as a
30 class four property, as such class of property is defined in subdivision
31 one of section eighteen hundred two of the real property tax law, shall
32 not be sold by the city unless such tax lien or tax liens include a real
33 property tax component or sewer rents component or sewer surcharges
34 component or water rents component or emergency repair charges compo-
35 nent, where such emergency repair charges accrued on or after January
36 first, two thousand six and are made a lien pursuant to section 27-2144
37 of this code, as of the date of the first publication, pursuant to
38 subdivision a of section 11-320 of this chapter, of the notice of sale,
39 provided, however, that any tax lien or tax liens that remain unpaid in
40 whole or in part after such date may be sold regardless of whether such
41 tax lien or tax liens include a real property tax component, sewer rents
42 component, sewer surcharges component, water rents component or emergen-
43 cy repair charges component. For purposes of this subdivision, the words
44 "real property tax" shall not include an assessment or charge upon prop-
45 erty imposed pursuant to section 25-411 of the administrative code.
46 Nothing in this subdivision shall be deemed to limit the rights
47 conferred by section 11-332 of this chapter on the holder of a tax lien
48 certificate with respect to a subsequent tax lien.
49 a-2. In addition to any sale authorized pursuant to subdivision a or
50 subdivision a-1 of this section and notwithstanding any provision of
51 this chapter to the contrary, beginning on December first, two thousand
52 seven, the water rents, sewer rents and sewer surcharges components of
53 any tax lien on any class of real property, as such real property is
54 classified in subdivision one of section eighteen hundred two of the
55 real property tax law, may be sold by the city pursuant to this chapter,
56 where such water rents, sewer rents or sewer surcharges component of
S. 1408 13
1 such tax lien, as of the date of the first publication, pursuant to
2 subdivision a of section 11-320 of this chapter, of the notice of sale:
3 (i) shall have remained unpaid in whole or in part for one year and (ii)
4 equals or exceeds the sum of one thousand dollars or, beginning on March
5 first, two thousand eleven, in the case of any two or three family resi-
6 dential real property in class one, for one year, and equals or exceeds
7 the sum of two thousand dollars, or, beginning on January first, two
8 thousand twelve, in the case of any class two residential property owned
9 by a company organized pursuant to article XI of the state private hous-
10 ing finance law [that is not a residential condominium or a residential
11 cooperative], as such class of property is defined in subdivision one of
12 section eighteen hundred two of the real property tax law, for two
13 years, and equals to exceeds the sum of five thousand dollars; provided,
14 however, that such water rents, sewer rents or sewer surcharges compo-
15 nent of such tax lien may not be sold pursuant to this subdivision on
16 any one family residential real property in class one or on any two or
17 three family residential real property in class one that is receiving an
18 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or
19 pursuant to section four hundred fifty-eight of the real property tax
20 law with respect to real property purchased with payments received as
21 prisoner of war compensation from the United States government, or
22 pursuant to paragraph (b) or (c) of subdivision two of section four
23 hundred fifty-eight-a of the real property tax law, or where the owner
24 of any two or three family residential real property in class one is
25 receiving benefits in accordance with department of finance memorandum
26 05-3, or any successor memorandum thereto, relating to active duty mili-
27 tary personnel, or where the owner of any two or three family residen-
28 tial real property in class one has been allowed a credit pursuant to
29 subsection (e) of section six hundred six of the tax law for the calen-
30 dar year in which the date of the first publication, pursuant to subdi-
31 vision a of section 11-320 of this chapter, of the notice of sale,
32 occurs or for the calendar year immediately preceding such date. After
33 such sale, any such water rents, sewer rents or sewer surcharges compo-
34 nent of such tax lien may be transferred in the manner provided by this
35 chapter.
36 a-3. In addition to any sale authorized pursuant to subdivision a or
37 subdivision a-1 of this section and notwithstanding any provision of
38 this chapter to the contrary, beginning on December first, two thousand
39 seven, a subsequent tax lien on any class of real property, as such real
40 property is classified in subdivision one of section eighteen hundred
41 two of the real property tax law, may be sold by the city pursuant to
42 this chapter, regardless of whether such subsequent tax lien, or any
43 component of the amount thereof, shall have remained unpaid in whole or
44 in part for one year, and regardless of whether such subsequent tax
45 lien, or any component of the amount thereof, equals or exceeds the sum
46 of one thousand dollars or beginning on March first, two thousand elev-
47 en, in the case of any two or three family residential real property in
48 class one, a subsequent tax lien on such property may be sold by the
49 city pursuant to this chapter, regardless of whether such subsequent tax
50 lien, or any component of the amount thereof, shall have remained unpaid
51 in whole or in part for one year, and regardless of whether such subse-
52 quent tax lien, or any component of the amount thereof, equals or
53 exceeds the sum of two thousand dollars, or, beginning on January first,
54 two thousand twelve, in the case of any class two residential property
55 owned by a company organized pursuant to article XI of the state private
56 housing finance law [that is not a residential condominium or a residen-
S. 1408 14
1 tial cooperative], as such class of property is defined in subdivision
2 one of section eighteen hundred two of the real property tax law, a
3 subsequent tax lien on such property may be sold by the city pursuant to
4 this chapter, regardless of whether such subsequent tax lien, or any
5 component of the amount thereof, shall have remained unpaid in whole or
6 in part for two years, and regardless of whether such subsequent tax
7 lien, or any component of the amount thereof, equals or exceeds the sum
8 of five thousand dollars; provided, however, that such subsequent tax
9 lien may not be sold pursuant to this subdivision on any one family
10 residential real property in class one or on any two or three family
11 residential real property in class one that is receiving an exemption
12 pursuant to section 11-245.3 or 11-245.4 of this title, or pursuant to
13 section four hundred fifty-eight of the real property tax law with
14 respect to real property purchased with payments received as prisoner of
15 war compensation from the United States government, or pursuant to para-
16 graph (b) or (c) of subdivision two of section four hundred
17 fifty-eight-a of the real property tax law, or where the owner of any
18 two or three family residential real property in class one is receiving
19 benefits in accordance with department of finance memorandum 05-3, or
20 any successor memorandum thereto, relating to active duty military
21 personnel, or where the owner of any two or three family residential
22 real property in class one has been allowed a credit pursuant to
23 subsection (e) of section six hundred six of the tax law for the calen-
24 dar year in which the date of the first publication, pursuant to subdi-
25 vision a of section 11-320 of this chapter, of the notice of sale,
26 occurs or for the calendar year immediately preceding such date. After
27 such sale, any such subsequent tax lien, or any component of the amount
28 thereof, may be transferred in the manner provided by this chapter. For
29 purposes of this subdivision, the term "subsequent tax lien" shall mean
30 the water rents, sewer rents or sewer surcharges component of any tax
31 lien on property that becomes such on or after the date of sale of any
32 water rents, sewer rents or sewer surcharges component of any tax lien
33 on such property that has been sold pursuant to this chapter, provided
34 that the prior tax lien remains unpaid as of 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 of the subsequent tax lien. Nothing in this
37 subdivision shall be deemed to limit the rights conferred by section
38 11-332 of this chapter on the holder of a tax lien certificate with
39 respect to a subsequent tax lien.
40 a-4. In addition to any sale authorized pursuant to subdivision a,
41 a-1, a-2 or a-3 of this section and notwithstanding any provision of
42 this chapter to the contrary, beginning on March first, two thousand
43 eleven, the emergency repair charges component or alternative enforce-
44 ment expenses and fees component, where such emergency repair charges
45 accrued on or after January first, two thousand six and are made a lien
46 pursuant to section 27-2144 of this code, or where such alternative
47 enforcement expenses and fees are made a lien pursuant to section
48 27-2153 of this code, of any tax lien on any class of real property, as
49 such real property is defined in subdivision one of section eighteen
50 hundred two of the real property tax law, may be sold by the city pursu-
51 ant to this chapter, where such emergency repair charges component or
52 alternative enforcement expenses and fees component of such tax lien, as
53 of the date of the first publication, pursuant to subdivision a of
54 section 11-320 of this chapter, of the notice of sale: (i) shall have
55 remained unpaid in whole or in part for one year, and (ii) equals or
56 exceeds the sum of one thousand dollars or, beginning on January first,
S. 1408 15
1 two thousand twelve, in the case of any class two residential property
2 owned by a company organized pursuant to article XI of the state private
3 housing finance law [that is not a residential condominium or a residen-
4 tial cooperative], as such class of property is defined in subdivision
5 one of section eighteen hundred two of the real property tax law, for
6 two years, and equals or exceeds the sum of five thousand dollars;
7 provided, however, that such emergency repair charges component or
8 alternative enforcement expenses and fees component of such tax lien may
9 not be sold pursuant to this subdivision on any one, two or three family
10 residential real property in class one, except a three family residen-
11 tial property in class one where such property is subject to the
12 provisions of section 27-2153 of this code and is not the primary resi-
13 dence of the owner. After such sale, any such emergency repair charges
14 component or alternative enforcement expenses and fees component of such
15 tax lien may be transferred in the manner provided by this chapter.
16 a-5. In addition to any sale authorized pursuant to subdivision a,
17 a-1, a-2 or a-3 of this section and notwithstanding any provision of
18 this chapter to the contrary, beginning on March first, two thousand
19 eleven, a subsequent tax lien on any class of real property, or begin-
20 ning on January first, two thousand twelve in the case of any class two
21 residential property owned by a company organized pursuant to article XI
22 of the state private housing finance law [that is not a residential
23 condominium or a residential cooperative], a subsequent tax lien on such
24 property, may be sold by the city pursuant to this chapter, regardless
25 of the length of time such subsequent tax lien, or any component of the
26 amount thereof, shall have remained unpaid, and regardless of the amount
27 of such subsequent tax lien. After such sale, any such subsequent tax
28 lien, or any component of the amount thereof, may be transferred in the
29 manner provided by this chapter. For purposes of this subdivision, the
30 term "subsequent tax lien" shall mean the emergency repair charges
31 component or alternative enforcement expenses and fees component, where
32 such emergency repair charges accrued on or after January first, two
33 thousand six and are made a lien pursuant to section 27-2144 of this
34 code, or where such alternative enforcement expenses and fees are made a
35 lien pursuant to section 27-2153 of this code, of any tax lien on prop-
36 erty that becomes such on or after the date of sale of any emergency
37 repair charges component or alternative enforcement expenses and fees
38 component, of any tax lien on such property that has been sold pursuant
39 to this chapter, provided that the prior tax lien remains unpaid as of
40 the date of the first publication, pursuant to subdivision a of section
41 11-320 of this chapter, of the notice of sale of the subsequent tax
42 lien. Nothing in this subdivision shall be deemed to limit the rights
43 conferred by section 11-332 of this chapter on the holder of a tax lien
44 certificate with respect to a subsequent tax lien.
45 § 15. Subparagraph (i) of paragraph 2 of subdivision b and subpara-
46 graph (ii) of paragraph 1 of subdivision h of section 11-320 of the
47 administrative code of the city of New York, subparagraph (i) of para-
48 graph 2 of subdivision b as amended by local law number 147 of the city
49 of New York for the year 2013 and subparagraph (ii) of paragraph 1 of
50 subdivision h as added by local law number 15 of the city of New York
51 for the year 2011, are amended to read as follows:
52 (i) Such notices shall also include, with respect to any property
53 owner in class one, class one-a or class two, as such classes of proper-
54 ty are defined in subdivision one of section eighteen hundred two of the
55 real property tax law, an exemption eligibility checklist. The exemption
56 eligibility checklist shall also be posted on the website of the depart-
S. 1408 16
1 ment no later than the first business day after March fifteenth of every
2 year prior to the date of sale, and shall continue to be posted on such
3 website until ten days prior to the date of sale. Within ten business
4 days of receipt of a completed exemption eligibility checklist from such
5 property owner, provided that such receipt occurs prior to the date of
6 sale of any tax lien or tax liens on his or her property, the department
7 of finance shall review such checklist to determine, based on the infor-
8 mation provided by the property owner, whether such property owner could
9 be eligible for any exemption, credit or other benefit that would enti-
10 tle them to be excluded from a tax lien sale and, if the department
11 determines that such property owner could be eligible for any such
12 exemption, credit or other benefit, shall mail such property owner an
13 application for the appropriate exemption, credit or other benefit. If,
14 within twenty business days of the date the department mailed such
15 application, the department has not received a completed application
16 from such property owner, the department shall mail such property owner
17 a second application, and shall telephone the property owner, if the
18 property owner has included his or her telephone number on the exemption
19 eligibility checklist.
20 (ii) all class two residential property owned by a company organized
21 pursuant to article XI of the state private housing finance law [that is
22 not a residential condominium or a residential cooperative] on which any
23 tax lien has been sold pursuant to subdivision a, a-2 or a-4 of section
24 11-319 of this title.
25 § 16. Subdivision (a) of section 11-354 of the administrative code of
26 the city of New York, as amended by local law number 37 of the city of
27 New York for the year 1996, is amended to read as follows:
28 (a) Notwithstanding any other provision of law and notwithstanding any
29 omission to hold a tax lien sale, whenever any tax, assessment, sewer
30 rent, sewer surcharge, water rent, any charge that is made a lien
31 subject to the provisions of this chapter or chapter four of this title,
32 or interest and penalties thereon, has been due and unpaid for a period
33 of at least one year from the date on which the tax, assessment or other
34 legal charge represented thereby became a lien, or in the case of any
35 class one property or any class [two] one-a property [that is a residen-
36 tial condominium or residential cooperative], as such classes of proper-
37 ty are defined in subdivision one of section eighteen hundred two of the
38 real property tax law, or in the case of a multiple dwelling owned by a
39 company organized pursuant to article XI of the private housing finance
40 law with the consent and approval of the department of housing preserva-
41 tion and development, for a period of at least three years from the date
42 on which the tax, assessment or other legal charge became a lien, the
43 city, as owner of a tax lien, may maintain an action in the supreme
44 court to foreclose such lien. Such action shall be governed by the
45 procedures set forth in section 11-335 of this chapter; provided, howev-
46 er, that such parcel shall only be sold to the highest responsible
47 bidder. Such purchaser shall be deemed qualified as a responsible bidder
48 pursuant to such criteria as are established in rules promulgated by the
49 commissioner of finance after consultation with the commissioner of
50 housing preservation and development.
51 § 17. The opening paragraph of subdivision 4 of section 11-401 of the
52 administrative code of the city of New York, as added by local law
53 number 37 of the city of New York for the year 1996, is amended to read
54 as follows:
55 "Distressed property." Any parcel of class one, class one-a or class
56 two real property that is subject to a tax lien or liens with a lien or
S. 1408 17
1 liens to value ratio, as determined by the commissioner of finance,
2 equal to or greater than fifteen percent and that meets one of the
3 following two criteria:
4 § 18. Subdivisions a and b of section 11-401.1 of the administrative
5 code of the city of New York, as added by local law number 37 of the
6 city of New York for the year 1996, are amended to read as follows:
7 a. The commissioner of finance shall, not less than sixty days preced-
8 ing the date of the sale of a tax lien or tax liens, submit to the
9 commissioner of housing preservation and development a description by
10 block and lot, or by such other identification as the commissioner of
11 finance may deem appropriate, of any parcel of class one, class one-a or
12 class two real property on which there is a tax lien that may be fore-
13 closed by the city. The commissioner of housing preservation and devel-
14 opment shall determine, and direct the commissioner of finance, not less
15 than ten days preceding the date of the sale of a tax lien or tax liens,
16 whether any such parcel is a distressed property as defined in subdivi-
17 sion four of section 11-401 of this chapter. Any tax lien on a parcel so
18 determined to be a distressed property shall not be included in such
19 sale. In connection with a subsequent sale of a tax lien or tax liens,
20 the commissioner of finance may, not less than sixty days preceding the
21 date of the sale, resubmit to the commissioner of housing preservation
22 and development a description by block and lot, or by such other iden-
23 tification as the commissioner of finance may deem appropriate, of any
24 parcel of class one, class one-a or class two real property that was
25 previously determined to be a distressed property pursuant to this para-
26 graph and on which there is a tax lien that may be included in such
27 sale. The commissioner of housing preservation and development shall
28 determine, and direct the commissioner of finance, not less than ten
29 days preceding the date of the sale, whether such parcel remains a
30 distressed property. If the commissioner of housing preservation and
31 development determines that the parcel is not a distressed property,
32 then the tax lien on the parcel may be included in the sale.
33 b. The commissioner of housing preservation and development may peri-
34 odically review whether a parcel of class one, class one-a or class two
35 real property that is subject to subdivision c of this section or subdi-
36 vision j of section 11-412.1 of this chapter remains a distressed prop-
37 erty. If the commissioner determines that the parcel is not a distressed
38 property as defined in subdivision four of section 11-401 of this chap-
39 ter, then the parcel shall not be subject to such subdivisions.
40 § 19. Subdivision b of section 11-404 of the administrative code of
41 the city of New York, as amended by local law number 37 of the city of
42 New York for the year 1996, is amended to read as follows:
43 b. A tax lien on any class one property or any class [two] one-a prop-
44 erty [that is a residential condominium or residential cooperative], as
45 such classes of property are defined in subdivision one of section eigh-
46 teen hundred two of the real property tax law, and on any multiple
47 dwelling owned by a company organized pursuant to article XI of the
48 private housing finance law with the consent and approval of the depart-
49 ment of housing preservation and development, shall not be foreclosed in
50 the manner provided in this chapter until such tax lien has been due and
51 unpaid for a period of at least three years from the date on which the
52 tax, assessment or other legal charge represented thereby became a lien.
53 § 20. Paragraph 5 of subdivision c of section 11-405 of the adminis-
54 trative code of the city of New York, as added by local law number 37 of
55 the city of New York for the year 1996, is amended to read as follows:
S. 1408 18
1 (5) Notwithstanding paragraph one, two or three of this subdivision,
2 with respect to installment agreements duly made, executed and filed on
3 or after the date on which this paragraph takes effect, the commissioner
4 of finance may also exclude or thereafter remove from such list any
5 parcel of class one, class one-a or class two real property, other than
6 a parcel described in paragraph four of this subdivision, as to which an
7 agreement has been duly made, executed and filed with such commissioner
8 for the payment of the delinquent taxes, assessments or other legal
9 charges, and the interest and penalties thereon, in installments. The
10 first installment thereof shall be paid upon the filing of the install-
11 ment agreement with the commissioner and shall be in an amount equal to
12 not less than fifteen percent of the total amount of such delinquent
13 taxes, assessments or other legal charges and the interest and penalties
14 thereon. The remaining installments, which shall be twice the number of
15 unpaid quarters of real estate taxes or the equivalent thereof, but
16 which shall in no event exceed thirty-two in number, shall be payable
17 quarterly on the first days of July, October, January and April. For the
18 purposes of calculating the number of such remaining installments,
19 unpaid real estate taxes that are due and payable on other than a quar-
20 terly basis shall be deemed to be payable on a quarterly basis.
21 § 21. Section 581 of the real property tax law is REPEALED.
22 § 22. Subdivision 1 of section 339-y of the real property law, as
23 amended by chapter 218 of the laws of 1986, subparagraph (ii) of para-
24 graph (d) as amended by chapter 223 of the laws of 1989, paragraph (e)
25 as added by chapter 135 of the laws of 1996 and paragraph (f) as added
26 by chapter 293 of the laws of 1997, is amended to read as follows:
27 1. (a) With respect to all property submitted to the provisions of
28 this article other than property which is the subject of a qualified
29 leasehold condominium, each unit and its common interest, not including
30 any personal property, shall be deemed to be a parcel and shall be
31 subject to separate assessment and taxation by each assessing unit,
32 school district, special district, county or other taxing unit, for all
33 types of taxes authorized by law including but not limited to special ad
34 valorem levies and special assessments, except that the foregoing shall
35 not apply to a unit held under lease or sublease unless the declaration
36 requires the unit owner to pay all taxes attributable to his unit.
37 Neither the building, the property nor any of the common elements shall
38 be deemed to be a parcel.
39 (b) [In no event shall the aggregate of the assessment of the units
40 plus their common interests exceed the total valuation of the property
41 were the property assessed as a parcel.
42 (c)] For the purposes of this and the next succeeding section the
43 terms "assessing unit", "assessment", "parcel", "special ad valorem
44 levy", "special assessment", "special district", "taxation" and "taxes"
45 shall have the meanings specified in section one hundred two of the real
46 property tax law.
47 [(d) The provisions of paragraph (b) of this subdivision shall not
48 apply to such real property classified within:
49 (i) on and after January first, nineteen hundred eighty-six, class one
50 of section one thousand eight hundred two of the real property tax law;
51 or
52 (ii) on and after January first, nineteen hundred eighty-four, the
53 homestead class of an approved assessing unit which has adopted the
54 provisions of section one thousand nine hundred three of the real prop-
55 erty tax law, or the homestead class of the portion outside an approved
56 assessing unit of an eligible split school district which has adopted
S. 1408 19
1 the provisions of section nineteen hundred three-a of the real property
2 tax law; provided, however, that, in an approved assessing unit which
3 adopted the provisions of section one thousand nine hundred three of the
4 real property tax law prior to the effective date of this subdivision,
5 paragraph (b) of this subdivision shall apply to all such real property
6 (i) which is classified within the homestead class pursuant to paragraph
7 one of subdivision (e) of section one thousand nine hundred one of the
8 real property tax law and (ii) which, regardless of classification, was
9 on the assessment roll prior to the effective date of this subdivision
10 unless the governing body of such approved assessing unit provides by
11 local law adopted after a public hearing, prior to the taxable status
12 date of such assessing unit next occurring after December thirty-first,
13 nineteen hundred eighty-three, that such paragraph (b) shall not apply
14 to such real property to which this clause applies. Provided further,
15 however, real property subject to the provisions of this subparagraph
16 shall be assessed pursuant to subdivision two of section five hundred
17 eighty-one of the real property tax law.
18 (e)] (c) On the first assessment roll with a taxable status date on or
19 after the effective date of a declaration filed with the recording offi-
20 cer and on every assessment roll thereafter, the assessor shall enter
21 each unit as a parcel, as provided in paragraph (a) of this subdivision,
22 based upon the condition and ownership of each such unit on the appro-
23 priate valuation and taxable status dates. Units owned by a developer
24 may be entered as a single parcel with a parcel description correspond-
25 ing to the entire development, including the land under such develop-
26 ment, and excluding those units appearing separately. Upon the first
27 assessment roll where each unit is separately assessed, only an individ-
28 ual unit and its common interest shall constitute a parcel.
29 [(f) The provisions of paragraph (b) of this subdivision shall not
30 apply to a converted condominium unit in a municipal corporation other
31 than a special assessing unit, which has adopted, prior to the taxable
32 status date of the assessment roll upon which its taxes will be levied,
33 a local law or, for a school district, a resolution providing that the
34 provisions of paragraph (b) of this subdivision shall not apply to a
35 converted condominium unit within that municipal corporation. A
36 converted condominium unit for purposes of this paragraph shall mean a
37 dwelling unit held in condominium form of ownership that has previously
38 been on an assessment roll as a dwelling unit in other than condominium
39 form of ownership, and has not been previously subject to the provisions
40 of paragraph (b) of this subdivision.]
41 § 23. This act shall take effect on the first of January next succeed-
42 ing the date on which it shall have become a law and shall apply to
43 assessment rolls prepared pursuant to a taxable status date occurring on
44 or after such date; provided, however, that effective immediately, the
45 addition, amendment and/or repeal of any rule or regulation necessary
46 for the implementation of this act on its effective date are authorized
47 and directed to be made and completed on or before such effective date.
