S T A T E   O F   N E W   Y O R K
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                                  9460

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
  tee on Real Property Taxation

AN ACT to amend the general city law and chapter 602 of the laws of 1993
  amending the real property tax law relating to the enforcement of  the
  collection  of delinquent real property taxes and to the collection of
  taxes by banks, in relation to the collection of delinquent real prop-
  erty taxes and providing for the repeal of such provisions upon  expi-
  ration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general city law is amended by  adding  a  new  section
21-a to read as follows:
  S  21-A.  COLLECTION  OF  DELINQUENT  TAX LIENS.   NOTWITHSTANDING ANY
PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY AND UNTIL
DECEMBER THIRTY-FIRST, TWO THOUSAND THIRTEEN, ANY CITY MAY ENTER INTO  A
CONTRACT  TO  SELL  SOME  OR  ALL OF THE DELINQUENT TAX LIENS HELD BY IT
WHICH  HAVE  BEEN  ATTACHED  TO  REAL  PROPERTY  ON  OR  BEFORE  JANUARY
THIRTY-FIRST,  TWO THOUSAND FOURTEEN, TO A PRIVATE PARTY, SUBJECT TO THE
FOLLOWING CONDITIONS:
  1. PRIOR TO ANY SALE, THE CITY COUNCIL SHALL HOLD A PUBLIC HEARING, ON
NOTICE OF AT LEAST FORTY-FIVE DAYS, ANNOUNCING THE INTENTION OF THE CITY
TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A  THIRD  PARTY.  SUCH
HEARING SHALL NOT BE HELD MORE THAN NINETY DAYS PRIOR TO SUCH SALE.
  2.  UPON  THE  APPROVAL OF THE CITY COUNCIL AND BY ADOPTION OF A LOCAL
LAW, ANY CITY SHALL BE AUTHORIZED TO SELL DELINQUENT TAX LIENS  AND  THE
CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE AMOUNT OF THE
TAX LIENS SOLD.
  3.  PROPERTY OWNERS SHALL BE GIVEN AT LEAST THIRTY DAYS ADVANCE NOTICE
OF SUCH SALE IN THE SAME FORM AND MANNER AS IS PROVIDED  BY  SUBDIVISION
TWO  OF  SECTION  ELEVEN  HUNDRED  NINETY  OF THE REAL PROPERTY TAX LAW.
FAILURE TO PROVIDE SUCH NOTICE  OR  THE  FAILURE  OF  THE  ADDRESSEE  TO
RECEIVE THE SAME SHALL INVALIDATE ANY SALE OF A TAX LIEN OR TAX LIENS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14787-02-9

A. 9460                             2

  4.  THE  CITY  SHALL  SET  THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  5.  THE TAX LIEN PURCHASER MUST, THIRTY DAYS PRIOR TO THE COMMENCEMENT
OF ANY FORECLOSURE ACTION, PROVIDE TO THE CITY A LIST  OF  LIENS  TO  BE
FORECLOSED.  THE CITY MAY, AT ITS SOLE OPTION AND DISCRETION, REPURCHASE
A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE TAX LIEN PURCHASER. THE
REPURCHASE PRICE SHALL BE THE AMOUNT  OF  THE  LIEN  OR  LIENS  AND  MAY
INCLUDE  ANY  ACCRUED  INTEREST  AND REASONABLE AND NECESSARY COLLECTION
FEES INCURRED BY THE TAX LIEN PURCHASER. THE TAX  LIEN  PURCHASER  SHALL
PROVIDE  THE  FORECLOSURE  LIST  TO  THE  CITY ALONG WITH THE APPLICABLE
REPURCHASE PRICE OF EACH LIEN, BY CERTIFIED MAIL,  AND  THE  CITY  SHALL
HAVE  THIRTY  DAYS  FROM RECEIPT TO NOTIFY THE TAX LIEN PURCHASER OF ITS
OPTION TO PURCHASE ONE OR MORE  OF  THE  LIENS.  IF  THE  CITY  OPTS  TO
PURCHASE  THE  LIEN,  IT  SHALL  PROVIDE  PAYMENT  WITHIN THIRTY DAYS OF
RECEIPT OF THE REPURCHASE PRICE OF SAID LIEN OR LIENS. IF THE CITY SHALL
FAIL TO OPT TO REPURCHASE THE LIEN OR LIENS THE TAX LIEN PURCHASER SHALL
HAVE THE RIGHT TO COMMENCE A FORECLOSURE ACTION ONLY AFTER THE PURCHASER
HAS GIVEN WRITTEN NOTICE TO THE PROPERTY OWNER AT THE LAST KNOWN ADDRESS
AS LISTED ON THE ASSESSMENT ROLL OF THE CITY THAT  SAID  PROPERTY  OWNER
HAS  THE  RIGHT  TO  ENTER  INTO  A PAYMENT PLAN OF AT LEAST TWENTY-FOUR
MONTHS BUT NO LONGER THAN FORTY-EIGHT MONTHS TO  REPAY  THE  TAX  AMOUNT
OWED.  THE  TAX  LIEN  PURCHASER SHALL HAVE THE RIGHT TO CHARGE THE SAME
INTEREST AS WAS ACCRUING ON THE  TAX  LIEN  CERTIFICATE.  THE  TAX  LIEN
PURCHASER SHALL NOT BE ALLOWED TO CHARGE ANY OTHER FEES, COSTS OR CHARG-
ES EXCEPT THOSE EXPRESSLY ALLOWED HEREIN UNDER THIS SECTION.
  6.  THE  SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL NOT OPERATE
TO SHORTEN THE OTHERWISE APPLICABLE  REDEMPTION  PERIOD  OR  CHANGE  THE
OTHERWISE APPLICABLE INTEREST RATE.
  7. UPON THE EXPIRATION OF THE REDEMPTION PERIOD PRESCRIBED BY LAW, THE
PURCHASER  OF  A  DELINQUENT TAX LIEN, OR ITS SUCCESSORS OR ASSIGNS, MAY
FORECLOSE THE LIEN AS IN AN ACTION AS PROVIDED IN SECTION ELEVEN HUNDRED
NINETY-FOUR OF THE REAL PROPERTY TAX LAW. THE PROCEDURE IN  SUCH  ACTION
SHALL  BE  THE  SAME  PROCEDURE AS PRESCRIBED BY ARTICLE THIRTEEN OF THE
REAL PROPERTY ACTIONS AND PROCEEDINGS LAW FOR THE FORECLOSURE  OF  MORT-
GAGES.  AT ANY TIME FOLLOWING THE COMMENCEMENT OF AN ACTION TO FORECLOSE
A LIEN, THE AMOUNT REQUIRED TO REDEEM THE LIEN, OR THE  AMOUNT  RECEIVED
UPON SALE OF A PROPERTY, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION
COSTS AND LEGAL FEES.
  8.  IN  EACH  YEAR  SUBSEQUENT  TO THE TAX LIEN SALE, AND NO MORE THAN
SIXTY DAYS AFTER THE ANNUAL ANNIVERSARY OF SUCH SALE, THE  CITY  COUNCIL
OR  THEIR  DESIGNEE  SHALL PREPARE A REPORT ON THE STATUS AND RESULTS OF
SUCH SALE. SUCH REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, INFOR-
MATION ON THE TOTAL DOLLAR AMOUNT RECEIVED BY THE MUNICIPALITY  IN  SUCH
SALE,  THE  NUMBER  OF  FORECLOSURES  CONDUCTED  BY THE THIRD PARTY, THE
NUMBER OF PAYMENT PLANS ENTERED INTO BY TAXPAYERS AND THE STATUS  THERE-
OF, THE NUMBER, IF ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE
NUMBER  OF  PROPERTIES  TAKEN BACK BY THE CITY PURSUANT TO THE TERMS AND
CONDITIONS OF THE CONTRACT OF SALE, THE NUMBER, IF  ANY,  OF  COMPLAINTS
RECEIVED  BY  THE  CITY ON THE CONDUCT OF THE ACTIONS OF THE THIRD PARTY
AND ANY OTHER INFORMATION THE CITY COUNCIL DEEMS NECESSARY  AND  PROPER.
SUCH  REPORT  SHALL  BE  FILED WITH THE STATE COMPTROLLER FOR HIS OR HER
REVIEW. THE STATE  COMPTROLLER  SHALL  ANNUALLY  PREPARE  A  REPORT  FOR
SUBMISSION  TO  THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE
SPEAKER OF THE ASSEMBLY, AND TO THE RESPECTIVE MINORITY LEADERS IN  BOTH
THE SENATE AND ASSEMBLY WHICH DETAILS THE EXPERIENCES OF ALL CITIES THAT
PARTICIPATED IN SUCH PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED

A. 9460                             3

FOR  IN  SECTION  THREE  OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINE
THAT ADDED THIS SECTION.
  9. THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN OF THE REAL PROPERTY
TAX  LAW SHALL APPLY SO FAR AS IS PRACTICABLE TO A CONTRACT FOR THE SALE
OF TAX LIENS PURSUANT TO THIS SECTION.
  S 2. Section 6 of chapter 602 of the laws of 1993  amending  the  real
property tax law relating to the enforcement of the collection of delin-
quent  real  property  taxes and to the collection of taxes by banks, is
amended by adding a new subdivision (d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW
TO THE CONTRARY AND UNTIL DECEMBER 31, 2013, ANY VILLAGE MAY ENTER  INTO
A  CONTRACT  TO  SELL SOME OR ALL OF THE DELINQUENT TAX LIENS HELD BY IT
WHICH HAVE BEEN ATTACHED TO REAL PROPERTY ON OR BEFORE JANUARY 31, 2014,
TO A PRIVATE PARTY, SUBJECT TO THE FOLLOWING CONDITIONS:
  (1) PRIOR TO ANY SALE, THE BOARD OF TRUSTEES SHALL HOLD A PUBLIC HEAR-
ING, ON NOTICE OF AT LEAST 45 DAYS,  ANNOUNCING  THE  INTENTION  OF  THE
VILLAGE TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A THIRD PARTY.
SUCH HEARING SHALL NOT BE HELD MORE THAN 90 DAYS PRIOR TO SUCH SALE.
  (2)  UPON  THE  APPROVAL OF THE BOARD OF TRUSTEES AND BY ADOPTION OF A
LOCAL LAW, THE BOARD SHALL AUTHORIZE THE SALE  OF  SAID  DELINQUENT  TAX
LIENS AND THE CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE
AMOUNT OF THE TAX LIENS SOLD.
  (3)  PROPERTY OWNERS SHALL BE GIVEN AT LEAST 30 DAYS ADVANCE NOTICE OF
SUCH SALE IN THE SAME FORM AND MANNER AS IS PROVIDED BY SUBDIVISION 2 OF
SECTION 1190 OF THE REAL PROPERTY  TAX  LAW.  FAILURE  TO  PROVIDE  SUCH
NOTICE OR THE FAILURE OF THE ADDRESSEE TO RECEIVE THE SAME SHALL INVALI-
DATE ANY SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY OF THE TAXES OR
INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
  (4)  THE VILLAGE SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  (5) THE TAX LIEN PURCHASER MUST, 30 DAYS PRIOR TO THE COMMENCEMENT  OF
ANY  FORECLOSURE  ACTION,  PROVIDE  TO THE VILLAGE A LIST OF LIENS TO BE
FORECLOSED. THE VILLAGE MAY, AT ITS SOLE OPTION AND  DISCRETION,  REPUR-
CHASE A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE TAX LIEN PURCHAS-
ER.  THE  REPURCHASE  PRICE SHALL BE THE AMOUNT OF THE LIEN OR LIENS AND
MAY INCLUDE ANY ACCRUED INTEREST AND REASONABLE AND NECESSARY COLLECTION
FEES INCURRED BY THE TAX LIEN PURCHASER. THE TAX  LIEN  PURCHASER  SHALL
PROVIDE  THE  FORECLOSURE  LIST TO THE VILLAGE ALONG WITH THE APPLICABLE
REPURCHASE PRICE OF EACH LIEN, BY CERTIFIED MAIL, AND THE VILLAGE  SHALL
HAVE 30 DAYS FROM RECEIPT TO NOTIFY THE TAX LIEN PURCHASER OF ITS OPTION
TO  PURCHASE  ONE  OR MORE OF THE LIENS. IF THE VILLAGE OPTS TO PURCHASE
THE LIEN, IT SHALL PROVIDE PAYMENT WITHIN 30  DAYS  OF  RECEIPT  OF  THE
REPURCHASE PRICE OF SAID LIEN OR LIENS. IF THE VILLAGE SHALL FAIL TO OPT
TO  REPURCHASE  THE  LIEN OR LIENS THE TAX LIEN PURCHASER SHALL HAVE THE
RIGHT TO COMMENCE A FORECLOSURE ACTION  ONLY  AFTER  THE  PURCHASER  HAS
GIVEN  WRITTEN NOTICE TO THE PROPERTY OWNER AT THE LAST KNOWN ADDRESS AS
LISTED ON THE ASSESSMENT ROLL OF THE VILLAGE THAT  SAID  PROPERTY  OWNER
HAS  THE RIGHT TO ENTER INTO A PAYMENT PLAN OF AT LEAST 24 MONTHS BUT NO
LONGER THAN 48 MONTHS TO  REPAY  THE  TAX  AMOUNT  OWED.  THE  TAX  LIEN
PURCHASER SHALL HAVE THE RIGHT TO CHARGE THE SAME INTEREST AS WAS ACCRU-
ING  ON  THE  TAX  LIEN CERTIFICATE. THE TAX LIEN PURCHASER SHALL NOT BE
ALLOWED TO CHARGE ANY OTHER FEES, COSTS OR CHARGES EXCEPT THOSE EXPRESS-
LY ALLOWED HEREIN UNDER THIS SUBDIVISION.
  (6) THE SALE OF A TAX LIEN PURSUANT  TO  THIS  SUBDIVISION  SHALL  NOT
OPERATE  TO SHORTEN THE OTHERWISE APPLICABLE REDEMPTION PERIOD OR CHANGE
THE OTHERWISE APPLICABLE INTEREST RATE.

A. 9460                             4

  (7) UPON THE EXPIRATION OF THE REDEMPTION PERIOD  PRESCRIBED  BY  LAW,
THE  PURCHASER  OF  A DELINQUENT TAX LIEN, OR ITS SUCCESSORS OR ASSIGNS,
MAY FORECLOSE THE LIEN AS IN AN ACTION AS PROVIDED IN  SECTION  1194  OF
THE  REAL  PROPERTY  TAX  LAW. THE PROCEDURE IN SUCH ACTION SHALL BE THE
SAME  PROCEDURE AS PRESCRIBED BY ARTICLE 13 OF THE REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW FOR  THE  FORECLOSURE  OF  MORTGAGES.  AT  ANY  TIME
FOLLOWING  THE COMMENCEMENT OF AN ACTION TO FORECLOSE A LIEN, THE AMOUNT
REQUIRED TO REDEEM THE LIEN, OR THE AMOUNT RECEIVED UPON SALE OF A PROP-
ERTY, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION  COSTS  AND  LEGAL
FEES.
  (8)  IN EACH YEAR SUBSEQUENT TO THE TAX LIEN SALE, AND NO MORE THAN 60
DAYS AFTER THE ANNUAL  ANNIVERSARY  OF  SUCH  SALE,  THE  VILLAGE  SHALL
PREPARE  A  REPORT  ON  THE STATUS AND RESULTS OF SUCH SALE. SUCH REPORT
SHALL INCLUDE, BUT NEED NOT BE LIMITED  TO,  INFORMATION  ON  THE  TOTAL
DOLLAR  AMOUNT  RECEIVED BY THE MUNICIPALITY IN SUCH SALE, THE NUMBER OF
FORECLOSURES CONDUCTED BY THE THIRD PARTY, THE NUMBER OF  PAYMENT  PLANS
ENTERED  INTO  BY  THE  TAXPAYERS AND THE STATUS THEREOF, THE NUMBER, IF
ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE NUMBER OF  PROPER-
TIES  TAKEN  BACK BY THE VILLAGE PURSUANT TO THE TERMS AND CONDITIONS OF
THE CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS RECEIVED BY  THE
VILLAGE  ON  THE CONDUCT OF THE ACTIONS OF THE THIRD PARTY AND ANY OTHER
INFORMATION THE VILLAGE DEEMS NECESSARY AND PROPER. SUCH REPORT SHALL BE
FILED WITH THE STATE COMPTROLLER FOR HIS OR HER REVIEW. THE STATE  COMP-
TROLLER  SHALL ANNUALLY PREPARE A REPORT FOR SUBMISSION TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  AND
TO THE RESPECTIVE MINORITY LEADERS IN BOTH THE SENATE AND ASSEMBLY WHICH
DETAILS  THE  EXPERIENCES  OF  ALL  VILLAGES  THAT  PARTICIPATED IN SUCH
PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED FOR IN SECTION THREE
OF THE CHAPTER OF THE LAWS OF TWO THOUSAND NINE THAT ADDED THIS SUBDIVI-
SION.
  (9) THE PROVISIONS OF TITLE 5 OF ARTICLE 11 OF THE REAL  PROPERTY  TAX
LAW  SHALL  APPLY SO FAR AS IS PRACTICABLE TO A CONTRACT FOR THE SALE OF
TAX LIENS PURSUANT TO THIS SUBDIVISION.
  S 3. The  state  comptroller  in  preparing  its  annual  report  that
outlines  the  experiences  of all cities and villages that have partic-
ipated in a program to collect delinquent tax liens as provided  for  in
section 21-a of the general city law and subdivision (d) of section 6 of
chapter 602 of the laws of 1993, shall include the following information
as  provided  for in this section. Such report shall briefly outline the
reports submitted by all participating municipalities, the  cost  effec-
tiveness  of  such program to enhance real property tax collections, the
aggregate amount of tax revenue collected minus expenses, the number  of
foreclosures  conducted  by  third  parties, the number of payment plans
entered into by taxpayers, the number and severity of  complaints  about
the  foreclosure process, the number of properties taken back by partic-
ipating municipalities, any complaints received by participating munici-
palities from tax lien debtors and the general  public,  and  any  other
items  or  suggestions  that  the state comptroller may make to increase
consumer protections to assist real property owners who have  delinquent
tax  liens  pending  to retain their real property. Such report shall be
issued by the state comptroller by July first of each year.
  S 4. This act shall take effect immediately and shall  expire  January
31,  2014 when upon such date the provisions of this act shall be deemed
repealed.