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

                                  5489

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 25, 2011
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation  to  enforcement  of environmental control board judgments as
  tax liens

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

  Section  1. Section 28-204.6 of the administrative code of the city of
New York, as added by local law number 33 of the city of  New  York  for
the year 2007, is amended to read as follows:
  S28-204.6  Tax lien. [Enforcement of environmental control board judg-
ments against owners for certain  building  code  violations.]  Notwith-
standing any provision of law to the contrary, [an] ONE OR MORE environ-
mental  control  board  [judgment]  JUDGMENTS  against  an  owner for [a
building code violation with respect to a private  dwelling,  a  wooden-
framed  single  room  occupancy  multiple dwelling, or a dwelling with a
legal occupancy of three or fewer dwelling  units]  VIOLATIONS  OF  THIS
CODE,  THE  1968  CODE,  THE  ZONING  RESOLUTION  OR OTHER LAWS OR RULES
ENFORCED BY THE DEPARTMENT  TOTALING  TWENTY-FIVE  THOUSAND  DOLLARS  OR
MORE,  INCLUDING INTEREST ON SUCH JUDGMENTS, shall constitute a tax lien
on the property named in the violation with respect to which such  judg-
ment  OR  JUDGMENTS  was OR WERE rendered, as hereinafter provided. Such
liens shall  be  entered  and  enforced  as  provided  in  this  section
[28-204.6].
  S  2. Section 28-204.6.1 of the administrative code of the city of New
York, as added by local law number 33 of the city of New  York  for  the
year 2007, is amended to read as follows:
  S28-204.6.1  Record  of unpaid judgments. [There shall be filed in the
office of the department a record of all such  unpaid  judgments.]  WHEN
THE  AMOUNT  OF  UNPAID ENVIRONMENTAL CONTROL BOARD JUDGMENTS AGAINST AN
OWNER OF REAL PROPERTY TOTALS  TWENTY-FIVE  THOUSAND  DOLLARS  OR  MORE,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11650-02-1
              

S. 5489                             2

INCLUDING  INTEREST  ON  SUCH  JUDGMENTS,  THE DEPARTMENT MAY ENTER SUCH
AMOUNT ON THE RECORDS OF THE DEPARTMENT. Such records shall be  kept  by
tax  lot  and  block number and shall be accessible to the public during
business  hours.  UNPAID  ENVIRONMENTAL CONTROL BOARD JUDGMENTS SHALL BE
DEEMED TO BE ENTERED ON THE DATE THEY ARE ENTERED ON THE RECORDS OF  THE
DEPARTMENT.  An  entry  of  a  judgment on the records of the department
shall constitute notice to all parties.
  S 3. Section 28-204.6.2 of the administrative code of the city of  New
York,  as  added  by local law number 33 of the city of New York for the
year 2007, is amended to read as follows:
  S28-204.6.2 Lien. All such unpaid judgments shall  constitute  a  lien
upon  the  property  named  in  the violation with respect to which such
judgment was rendered  when  [the  amount  shall  have  been  definitely
computed as a statement of account by the department, and the department
shall  file  such  statement  with  the  department of finance for entry
against the property.] SUCH CHARGE IS DUE AND PAYABLE,  WHICH,  NOTWITH-
STANDING  ANY  OTHER PROVISION OF LAW, SHALL BE THE DUE AND PAYABLE DATE
FOR SUCH CHARGE PROVIDED ON THE SECOND  NOTICE  CONTAINING  SUCH  CHARGE
MAILED BY THE DEPARTMENT OF FINANCE. SUCH NOTICE SHALL BE SENT TO OWNERS
WHO  NOTIFIED  THE DEPARTMENT OF FINANCE OF A MAILING ADDRESS FOR STATE-
MENTS OF ACCOUNT UNDER SECTION 11-129 OF THIS CODE, OR,  IF  NO  MAILING
ADDRESS  HAS  BEEN  SO  PROVIDED, TO THE OWNER OF RECORD AT THE PROPERTY
ADDRESS APPEARING ON THE ASSESSMENT ROLL. Such lien shall have a priori-
ty over all other liens and encumbrances except for the  lien  of  taxes
and  assessments  AND SHALL NOT BE DISCHARGED UNTIL THE ENTIRE AMOUNT OF
THE LIEN IS PAID. However, no lien created pursuant  to  [this]  section
28-204.6  shall be enforced against a subsequent purchaser in good faith
or mortgagee in good faith unless the requirements of section 28-204.6.1
are satisfied; THIS LIMITATION SHALL ONLY APPLY TO  TRANSACTIONS  OCCUR-
RING  AFTER  THE  DATE  SUCH RECORD SHOULD HAVE BEEN ENTERED PURSUANT TO
SECTION 28-204.6.1 AND THE DATE SUCH ENTRY WAS MADE.
  S 4. Section 28-204.6.3 of the administrative code of the city of  New
York,  as  added  by local law number 33 of the city of New York for the
year 2007, is amended to read as follows:
  S28-204.6.3 Notice. [A notice, stating the amount due and  the  nature
of  the charge, shall be mailed by the department of finance to the last
known address of the person whose name appears on  the  records  of  the
department  as being the owner or agent of the property or as the person
designated by the owner to receive tax bills or, where no name  appears,
to  the  property,  addressed to either the "owner" or the "agent."] THE
DEPARTMENT OF FINANCE SHALL SEND A NOTICE WITH THE AMOUNT OF SUCH UNPAID
JUDGMENTS AND A DEMAND FOR PAYMENT THEREOF TO OWNERS  WHO  NOTIFIED  THE
DEPARTMENT  OF  FINANCE  OF  A MAILING ADDRESS FOR STATEMENTS OF ACCOUNT
UNDER SECTION 11-129 OF THIS CODE, OR, IF NO MAILING ADDRESS HAS BEEN SO
PROVIDED, TO THE OWNER OF RECORD AT THE PROPERTY  ADDRESS  APPEARING  ON
THE  ASSESSMENT  ROLL.  IF  THE  OWNER DOES NOT NOTIFY THE DEPARTMENT OF
FINANCE IN WRITING OF HIS OR HER OBJECTION TO THE FIRST NOTICE  CONTAIN-
ING SUCH CHARGE BEFORE THE DATE THAT SUCH CHARGE BECOMES DUE AND PAYABLE
AS  PROVIDED IN SECTION 28-204.6.2, SUCH OWNER MAY NOT IN ANY SUBSEQUENT
JUDICIAL OR ADMINISTRATIVE PROCEEDING CONTEST THE AMOUNT OF  THE  CHARGE
CONTAINED  IN  SUCH  NOTICE. THE DEPARTMENT OF FINANCE SHALL ONLY REVIEW
SUCH OBJECTIONS THAT ARE RECEIVED BY IT IN WRITING ON OR  PRIOR  TO  THE
DUE  AND  PAYABLE  DATE  FOR  THE  CHARGE  PROVIDED ON THE SECOND NOTICE
CONTAINING SUCH CHARGE, AND MAY REFER ANY SUCH OBJECTION TO ANOTHER CITY
AGENCY OR BOARD FOR A RESPONSE. SUCH NOTICE SHALL ALSO BE MAILED TO EACH
PERSON WHO HAS NOTIFIED THE COMMISSIONER OF FINANCE IN WRITING OR  ELEC-

S. 5489                             3

TRONICALLY  THAT  HE  OR SHE HAS AN INTEREST IN REAL PROPERTY, INCLUDING
THE INTEREST OF  A  MORTGAGEE,  LIENOR  OR  ENCUMBRANCER,  AND  WHO  HAS
REQUESTED  THE COMMISSIONER OF FINANCE TO MAIL A NOTICE TO HIM OR HER AT
A DESIGNATED MAILING ADDRESS, AT THE ADDRESS SO PROVIDED.
  S  5. Section 28-204.6.4 of the administrative code of the city of New
York, as added by local law number 33 of the city of New  York  for  the
year 2007, is amended to read as follows:
  S28-204.6.4  Mailing.  Such notice mailed by the department of finance
[pursuant to this section 28-204.6.4]  shall  have  stamped  or  printed
thereon a reference to section [204.6] 28-204.6.
  S  6. Section 28-204.6.5 of the administrative code of the city of New
York, as added by local law number 33 of the city of New  York  for  the
year 2007, is amended to read as follows:
  S28-204.6.5  Failure to pay charge. If such charge is not paid [within
30 days from the date of entry] BY THE DATE WHEN SUCH CHARGE IS DUE  AND
PAYABLE  IN  ACCORDANCE WITH SECTION 28-204.6.2, it shall be the duty of
the department of finance to receive interest thereon at the  same  rate
as  unpaid  real property taxes, to be calculated to the date of payment
from the DUE AND PAYABLE date [of entry].
  S 7. Section 28-204.6.9 of the administrative code of the city of  New
York,  as  added  by local law number 33 of the city of New York for the
year 2007, is amended to read as follows:
  S28-204.6.9 Notice to  mortgagees  and  lienors.  Notwithstanding  the
foregoing  provisions, no such judgment shall be entered and enforced as
a tax lien against any property unless [at the time of the  issuance  of
the  notice  of  violation  a copy of such notice was also served on all
mortgagees and lienors of record of such property by mail  addressed  to
the recorded addresses of such mortgagees and lienors] NOTICES HAVE BEEN
MAILED  TO  EACH  PERSON WHO HAS NOTIFIED THE COMMISSIONER OF FINANCE IN
WRITING OR ELECTRONICALLY THAT HE OR SHE HAS AN INTEREST IN REAL PROPER-
TY, INCLUDING THE INTEREST OF A MORTGAGEE, LIENOR OR  ENCUMBRANCER,  AND
WHO HAS REQUESTED THE COMMISSIONER OF FINANCE TO MAIL A NOTICE TO HIM OR
HER  AT  A  DESIGNATED  MAILING  ADDRESS, AT THE ADDRESS SO PROVIDED. NO
JUDGMENT SHALL BE ENTERED AND ENFORCED AS A TAX LIEN UNTIL  NINETY  DAYS
AFTER  THE  MAILING  OF  THE  FIRST NOTICE CONTAINING THE CHARGE TO SUCH
PERSONS.
  S 8. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall  apply  to  existing  environmental
control  board  judgments  and  to environmental control board judgments
entered on and after such effective date.