S T A T E   O F   N E W   Y O R K
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                                  4037

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2013
                               ___________

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

AN ACT to amend the real property tax  law,  in  relation  to  tax  lien
  transfers; and to repeal title 4 of article 9 of the real property tax
  law relating to acceptance of taxes from certain loan corporations

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

  Section 1. Title 4 of article 9  of  the  real  property  tax  law  is
REPEALED and a new title 4 is added to read as follows:
                                 TITLE 4
                    TAX LIEN TRANSFER AUTHORIZATIONS
SECTION 960. LEGISLATIVE INTENT.
        961. DEFINITIONS.
        962. TAX LIEN TRANSFER.
        963. TAX LIEN TRANSFER AUTHORIZATION.
        964. TAX LIEN TRANSFER CERTIFICATE.
        965. PROPERTY TAX LIEN PAYMENT AGREEMENT.
        966. FORECLOSURE.
        967. REDEMPTION.
  S  960.  LEGISLATIVE  INTENT. THE LEGISLATURE FINDS THAT LOCAL GOVERN-
MENTS ARE STRUGGLING UNDER THE WEIGHT OF INCREASED COSTS, REDUCED REVEN-
UES AND INCREASED STRESSES ON THEIR RESPECTIVE  MUNICIPAL  BUDGETS.  THE
LEGISLATURE  ALSO  FINDS  THAT  PROPERTY OWNERS ARE STRUGGLING UNDER THE
WEIGHT OF HIGH PROPERTY TAXES AND NEED SOME ASSISTANCE IN  PAYING  THOSE
TAXES IN ORDER TO PREVENT FORECLOSURE AND THE SALE OF THEIR PROPERTY TAX
LIENS  TO  THIRD PARTIES INVOLUNTARILY. THE LEGISLATURE FINDS THAT IT IS
IN THE BEST INTERESTS OF THE RESIDENTS OF THE STATE OF NEW YORK AND  THE
LOCAL  GOVERNMENTS  TO  ALLOW  PROPERTY OWNERS TO VOLUNTARILY ENTER INTO
AGREEMENTS WITH PRIVATE ENTITIES TO PROVIDE FOR  THE  PAYMENT  OF  THEIR
PROPERTY  TAXES.  CURRENTLY,  PROPERTY  OWNERS ARE REQUIRED TO PAY THEIR
TAXES IN FULL. ALLOWING PROPERTY OWNERS TO  INCREASE  THE  PAYMENT  TERM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07558-01-3
              

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WILL  HELP  ALLEVIATE THE PRESSURE ON THESE ALREADY FINANCIALLY STRESSED
RESIDENTS AND BUSINESS OWNERS. MOREOVER, LOCAL GOVERNMENTS WILL INCREASE
THEIR REVENUE COLLECTIONS AND SPEND LESS ON ACTIONS  TO  COLLECT  UNPAID
TAXES,  SUCH  AS  TAX  LIEN SALES AND TAX LIEN FORECLOSURES, BECAUSE THE
PROPERTY TAX PAYORS WILL PAY TAXES IN FULL, ALL AT ONCE.
  S 961. DEFINITIONS. AS USED IN THIS TITLE THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  1.  "PROPERTY  TAX  PAYOR"  MEANS  A PERSON WHO ADVANCES MONEY FOR THE
PAYMENT OF REAL PROPERTY TAXES DIRECTLY TO A MUNICIPAL GOVERNMENT AT THE
REQUEST OF A PROPERTY OWNER. ALSO REFERRED TO AS A "TRANSFEREE."
  2. "PROPERTY TAX PAYMENT" MEANS THE AMOUNT OF MONEY ADVANCED  FOR  THE
PAYMENT  OF  PROPERTY  TAXES  PURSUANT  TO  A PROPERTY TAX LIEN TRANSFER
AUTHORIZATION AND PROPERTY TAX LIEN PAYMENT AGREEMENT.
  3. "TAX LIEN TRANSFER AUTHORIZATION" SHALL HAVE  THE  MEANING  AS  SET
FORTH IN SECTION NINE HUNDRED SIXTY-THREE OF THIS TITLE.
  4. "TAX LIEN TRANSFER CERTIFICATE" SHALL HAVE THE MEANING AS SET FORTH
IN SECTION NINE HUNDRED SIXTY-FOUR OF THIS TITLE.
  5. "PROPERTY TAX LIEN PAYMENT AGREEMENT" SHALL HAVE THE MEANING AS SET
FORTH IN SECTION NINE HUNDRED SIXTY-FIVE OF THIS TITLE.
  6. "REFEREE'S DEED" SHALL MEAN THE DEED ISSUED TO THE PURCHASER AT THE
FORECLOSURE SALE AT THE COURTHOUSE STEPS.
  7.  "TRANSFEREE"  MEANS A PERSON WHO ADVANCES MONEY FOR THE PAYMENT OF
REAL PROPERTY TAXES DIRECTLY TO A MUNICIPAL GOVERNMENT AT THE REQUEST OF
A PROPERTY OWNER TO WHOM  A  PROPERTY  TAX  LIEN  IS  TRANSFERRED.  ALSO
REFERRED TO AS A "PROPERTY TAX PAYOR."
  S 962. TAX LIEN TRANSFER. 1. A PROPERTY OWNER MAY EXECUTE AN AFFIDAVIT
IN  THE  FORM  OF A TAX LIEN TRANSFER AUTHORIZATION THAT CONSENTS TO AND
AUTHORIZES THE TRANSFER OF THE PROPERTY TAX LIENS ON HIS OR HER PROPERTY
FROM A MUNICIPAL GOVERNMENT TO A PROPERTY TAX PAYOR IF THE PROPERTY  TAX
PAYOR PAYS THE PROPERTY TAX PAYMENT ON BEHALF OF THE PROPERTY OWNER.
  2. UPON RECEIPT BY THE TAXING JURISDICTION OF THE PROPERTY OWNER'S TAX
LIEN  TRANSFER AUTHORIZATION AND THE PROPERTY TAX PAYMENT FROM THE PROP-
ERTY TAX PAYOR, THE REAL PROPERTY TAX LIEN SHALL BE TRANSFERRED FROM THE
TAXING JURISDICTION TO THE PROPERTY TAX PAYOR AS REFLECTED IN A TAX LIEN
TRANSFER CERTIFICATE. THE TAX LIEN TRANSFER  CERTIFICATE  SHALL  CERTIFY
THAT  THE  TAXING  JURISDICTION  RECEIVED WRITTEN AUTHORIZATION FROM THE
PROPERTY OWNER TO TRANSFER THE TAXES OWED; THAT THE PROPERTY  TAX  PAYOR
PAID  THE PROPER AMOUNT OWED BY THE  PROPERTY OWNER; AND THAT THE TAXING
JURISDICTION'S LIENS ARE TRANSFERRED TO THE PROPERTY TAX  PAYOR  IN  THE
AMOUNTS LISTED IN THE TAX LIEN TRANSFER CERTIFICATE.
  3.  THE  CREATION  OF  THE  TAX LIEN TRANSFER CERTIFICATE SHALL NOT BE
DEEMED TO CREATE A NEW TAX  LIEN.  THE  TRANSFEREE,  OR  ITS  HEIRS  AND
ASSIGNS,  SHALL  HAVE  THE  SAME RIGHTS, REMEDIES, AND PRIORITIES AS THE
TAXING JURISDICTION, SUBJECT TO THE TERMS AND CONDITIONS OF THE PROPERTY
TAX LIEN PAYMENT AGREEMENT.   THE CREATION  OF  THE  TAX  LIEN  TRANSFER
CERTIFICATE SHALL NOT BE DEEMED TO ALLOW THE PROPERTY TAX PAYOR TO FORE-
CLOSE  OR  IN  ANY  MANNER ACT UPON THE TAX LIEN COVERED BY THE TAX LIEN
TRANSFER CERTIFICATE EXCEPT FOR THE COLLECTION OF TAXES, AS PROVIDED FOR
IN THE PROPERTY TAX LIEN PAYMENT AGREEMENT.
  4. THE TAX LIEN TRANSFER CERTIFICATE SHALL BE RECORDED IN  THE  COUNTY
CLERK'S  OFFICE  WHERE  THE  PROPERTY  IS SITUATED, AND THE PROPERTY TAX
PAYOR SHALL PAY ANY STATUTORY FEE FOR SAID RECORDING.
  S 963.  TAX LIEN TRANSFER AUTHORIZATION. A SWORN AFFIDAVIT OF A  PROP-
ERTY  OWNER  AUTHORIZING  THE  TRANSFER  OF  TAX  LIENS MUST CONTAIN THE
FOLLOWING INFORMATION:
  1. THE NAME OF THE COUNTY WHERE THE PROPERTY IS LOCATED;

A. 4037                             3

  2. A STATEMENT BY A NOTARY PUBLIC IDENTIFYING THE  AFFIANT(S),  EITHER
PROPERTY  OWNER(S) OR AUTHORIZED REPRESENTATIVE(S), AND STATING THAT THE
AFFIANT(S) PERSONALLY APPEARED BEFORE THE NOTARY AND MADE THE STATEMENTS
UNDER OATH;
  3. A STATEMENT BY THE AFFIANT THAT HE OR SHE IS OVER EIGHTEEN YEARS OF
AGE AND IS CAPABLE OF MAKING THE AFFIDAVIT, AND THAT THE FACTS STATED IN
THE  AFFIDAVIT  ARE WITHIN THE AFFIANT'S PERSONAL KNOWLEDGE AND ARE TRUE
AND CORRECT;
  4. A STATEMENT BY THE AFFIANT(S) THAT EITHER  THE  AFFIANT(S)  OR  THE
ENTITIES  REPRESENTED BY THE AFFIANT(S) OWNS THE REAL PROPERTY DESCRIBED
IN THE DOCUMENT;
  5. A DESCRIPTION OF THE PROPERTY THAT INCLUDES:
  (A) THE ACCOUNT NUMBER OR PROPERTY IDENTIFICATION NUMBER USED  BY  THE
TAXING JURISDICTION;
  (B) THE LEGAL DESCRIPTION OF THE PROPERTY; AND
  (C) THE STREET ADDRESS OF THE PROPERTY, IF APPLICABLE;
  6. THE AMOUNT PAID FOR THE TRANSFER;
  7. THE TAX YEARS FOR THE AMOUNT PAID;
  8. THE TRANSFEREE'S NAME;
  9. THE TRANSFEREE'S STREET ADDRESS;
  10.  THE  FOLLOWING  STATEMENT:  "PURSUANT  TO SECTION 963 OF THE REAL
PROPERTY TAX LAW, I  HEREBY  AUTHORIZE  THE  ABOVE-NAMED  TRANSFEREE  OR
TRANSFEREE'S  AGENT  (THE  "TRANSFEREE"),  TO  PAY ALL TAXES, PENALTIES,
INTEREST, AND COLLECTION COSTS IMPOSED BY ANY AND ALL LOCAL TAXING UNITS
OR THEIR AGENTS ON THE REAL PROPERTY, DESCRIBED ABOVE, FOR THE TAX YEARS
LISTED   ABOVE.   I   FURTHER   AUTHORIZE    AND    DIRECT    THE    TAX
ASSESSOR-COLLECTOR(S)  FOR SAID TAXING UNITS TO ISSUE A TAX RECEIPT WITH
THE COLLECTOR'S SEAL OF OFFICE OR NOTARIZED SIGNATURE TO THE  TRANSFEREE
AND  TO  CERTIFY  THAT  THE  TAXES AND ANY PENALTIES AND INTEREST ON THE
SUBJECT PROPERTY AND COLLECTION COSTS HAVE BEEN PAID BY  THE  TRANSFEREE
ON  BEHALF OF THE OWNER, AND THE TAX LIEN(S) ON THE OWNER'S PROPERTY HAS
BEEN TRANSFERRED TO THE TRANSFEREE.";
  11. THE DATE THE DOCUMENT WAS SIGNED;
  12. THE SIGNATURE AND PRINTED NAME OF THE PROPERTY OWNER OR AUTHORIZED
REPRESENTATIVE;
  13. THE REPRESENTATIVE CAPACITY OR TITLE OF THE  AUTHORIZED  REPRESEN-
TATIVE, IF APPLICABLE; AND
  14. THE NOTARY PUBLIC'S SEAL AND SIGNATURE.
  S  964.  TAX  LIEN  TRANSFER CERTIFICATE. A CERTIFIED STATEMENT ISSUED
UNDER THIS SECTION BY THE TAXING JURISDICTION FOR THE PURPOSE OF  CREAT-
ING A TAX LIEN TRANSFER CERTIFICATE SHALL CONTAIN THE FOLLOWING INFORMA-
TION:
  1. THE NAME OF THE COUNTY WHERE THE PROPERTY IS LOCATED;
  2. THE DATE THE CERTIFICATION IS EXECUTED;
  3. A DESCRIPTION OF THE PROPERTY THAT INCLUDES:
  (A)  THE  ACCOUNT NUMBER OR PROPERTY IDENTIFICATION NUMBER USED BY THE
TAXING JURISDICTION;
  (B) THE LEGAL DESCRIPTION OF THE PROPERTY; AND
  (C) THE STREET ADDRESS OF THE PROPERTY, IF APPLICABLE;
  4. THE TAXING JURISDICTION TRANSFERRING A LIEN OR LIENS TO THE  TRANS-
FEREE;
  5. THE AMOUNT PAID FOR THE TRANSFER;
  6. THE TAX YEARS FOR THE AMOUNT PAID;
  7. THE PROPERTY OWNER'S NAME;
  8. THE TRANSFEREE'S NAME;
  9. THE TRANSFEREE'S STREET ADDRESS;

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  10.  THE  FOLLOWING  STATEMENT: "I, (INSERT AGENT FOR TAXING JURISDIC-
TION), CERTIFY THAT I HAVE RECEIVED AUTHORIZATION FROM THE OWNER OF  THE
SUBJECT  PROPERTY TO TRANSFER THE TAX LIEN TO THE ABOVE-NAMED TRANSFEREE
OR TRANSFEREE'S AGENT ("TRANSFEREE"), THAT TRANSFEREE HAS  MADE  PAYMENT
OF  THE  AMOUNT  LISTED ABOVE TO THE ABOVE-NAMED TAXING JURISDICTIONS ON
THE PROPERTY DESCRIBED ABOVE AS CONSIDERATION FOR A TRANSFER OF THE  TAX
LIEN(S),  AND  THAT  THE  TAX  LIENS HELD BY TAXING JURISDICTIONS ON THE
PROPERTY FOR THE TAX YEARS LISTED ABOVE ARE HEREBY TRANSFERRED TO TRANS-
FEREE IN ACCORDANCE WITH SECTION 963 OF THE REAL PROPERTY TAX  LAW.    I
HAVE  ISSUED  A  RECEIPT  TO TRANSFEREE IN CONJUNCTION WITH THIS CERTIF-
ICATION REFLECTING THE PAYMENT FOR THE TRANSFER IN THE AMOUNT OF  TAXES,
PENALTIES, INTEREST, AND COLLECTION COSTS."
  11. THE NAME OF THE TAXING JURISDICTION;
  12. THE NAME OF THE TAXING UNIT(S);
  13. THE SIGNATURE OF THE AGENT FOR THE TAXING JURISDICTION; AND
  14. ONE OF THE FOLLOWING:
  (A) THE SEAL OF OFFICE OF THE TAXING JURISDICTION; OR
  (B)  A  NOTARY PUBLIC'S SEAL OF OFFICE AND A STATEMENT THAT THE CERTI-
FIED STATEMENT WAS SUBSCRIBED AND SWORN TO BEFORE A NOTARY PUBLIC; AND
  15. A STATEMENT THAT AFTER THE DOCUMENT  IS  RECORDED,  IT  IS  TO  BE
RETURNED TO THE TRANSFEREE.
  S  965.  PROPERTY  TAX  LIEN PAYMENT AGREEMENT. 1. A PROPERTY OWNER IS
PERMITTED TO ENTER INTO A PROPERTY TAX LIEN  PAYMENT  AGREEMENT  WITH  A
PROPERTY TAX PAYOR.
  2. SAID AGREEMENT SHALL CONTAIN TERMS AND CONDITIONS OF REPAYMENT.
  3. THE PROPERTY TAX PAYOR SHALL BE ALLOWED TO COLLECT FROM THE PROPER-
TY  OWNER  AN APPLICATION FEE NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS, A
FEE FOR TITLE CHARGES NOT TO EXCEED FOUR HUNDRED DOLLARS, REASONABLE AND
CUSTOMARY ATTORNEY'S FEES  NOT  TO  EXCEED  ONE  THOUSAND  DOLLARS,  AND
REASONABLE  AND  CUSTOMARY  CLOSING  COSTS,  NOT  TO EXCEED FIVE HUNDRED
DOLLARS, ALL OF WHICH MAY, AT THE PROPERTY OWNER'S REQUEST  AND  WRITTEN
CONSENT,  BE  CONTAINED IN AND MADE A PART OF THE AMOUNTS OWED UNDER THE
PROPERTY TAX LIEN PAYMENT AGREEMENT  AND  THE  AMOUNTS  SECURED  BY  THE
TRANSFERRED TAX LIEN.
  4.  THE PROPERTY TAX PAYOR SHALL BE ALLOWED TO COLLECT INTEREST NOT TO
EXCEED 1.5% PER MONTH ON THE AMOUNT  OWED  ACCORDING  TO  THE  TAX  LIEN
PAYMENT AGREEMENT.
  5.  NOTHING  CONTAINED WITHIN THIS SECTION SHALL BE DEEMED TO CREATE A
MORTGAGE, NOTE OR OTHER INSTRUMENT GOVERNED BY ANY LAW, STATE OR  FEDER-
AL,  REGULATING  MORTGAGE AGREEMENTS, AND THE TAX LIEN PAYMENT AGREEMENT
SHALL BE DEEMED A CONTRACT FOR THE REPAYMENT  OF  MONIES  AND  SHALL  BE
GOVERNED  BY APPLICABLE STATE LAWS RELATING TO CONTRACTS, EXCEPT FOR THE
FORECLOSURE OF SAID AGREEMENT, WHICH IS SUBJECT TO THE RULES  AND  REGU-
LATIONS AS GOVERNING MORTGAGE FORECLOSURES AS DETAILED IN THE REAL PROP-
ERTY ACTIONS AND PROCEEDINGS LAW.
  6.  THE  PROPERTY  OWNER  OR A PRIOR RECORDED FIRST LIEN MORTGAGEE MAY
OBTAIN A RELEASE OF THE TRANSFERRED TAX LIEN BY PAYING THE PROPERTY  TAX
PAYOR ALL AMOUNTS DUE UNDER THE PROPERTY TAX LIEN PAYMENT AGREEMENT.
  S  966.  FORECLOSURE. 1. IF AT ANYTIME THE PROPERTY TAX PAYOR FILES TO
FORECLOSE UPON THE TERMS AND CONDITIONS OF THE PROPERTY  TAX  AGREEMENT,
THE PROPERTY TAX PAYOR SHALL FORECLOSE PURSUANT TO REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW AS IF FORECLOSING A MORTGAGE.
  2.  THE PROPERTY TAX PAYOR IS ENTITLED TO RECOVER FORECLOSURE FEES FOR
THE FOLLOWING COSTS:
  (A) REASONABLE AND CUSTOMARY ATTORNEYS FEES  AS  SET  BY  A  COURT  OF
COMPETENT JURISDICTION; AND

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  (B)  REASONABLE AND CUSTOMARY TITLE CHARGES NOT TO EXCEED FOUR HUNDRED
DOLLARS; AND
  (C)  REASONABLE  AND  CUSTOMARY FEES FOR SERVICE OF PROCESS AND ADVER-
TISEMENT AS APPROVED BY A COURT OF COMPETENT JURISDICTION,  SO  LONG  AS
THE PROPERTY TAX PAYOR SUBMITS PROOF OF ACTUAL COSTS TO SAID COURT.
  3. A FORECLOSURE OF A TAX LIEN TRANSFERRED AS PROVIDED BY SECTION NINE
HUNDRED  SIXTY-TWO  OF  THIS TITLE MAY NOT BE INSTITUTED WITHIN ONE YEAR
FROM THE DATE ON WHICH THE LIEN IS RECORDED IN ALL COUNTIES IN WHICH THE
PROPERTY IS LOCATED, UNLESS THE CONTRACT BETWEEN THE OWNER OF THE  PROP-
ERTY AND THE TRANSFEREE PROVIDES OTHERWISE; PROVIDED THAT AFTER ONE YEAR
FROM  THE  DATE  ON  WHICH A TAX LIEN TRANSFERRED AS PROVIDED BY SECTION
NINE HUNDRED SIXTY-TWO OF THIS TITLE IS  RECORDED  IN  ALL  COUNTIES  IN
WHICH  THE PROPERTY IS LOCATED, THE TRANSFEREE OF THE LIEN MAY FORECLOSE
THE LIEN IN THE MANNER PROVIDED BY SUBDIVISION ONE OF THIS SECTION.
  4. NOTHING IN THIS SECTION SHALL BE DEEMED TO AFFECT THE RIGHTS  OF  A
TAXING  JURISDICTION  UNDER  ARTICLE ELEVEN OF THIS CHAPTER OR AFFECT OR
EXTEND THE REDEMPTION PERIOD, SUBJECT TO SECTION NINE HUNDRED SIXTY-SEV-
EN OF THIS TITLE.
  S 967. REDEMPTION. 1. IF A PROPERTY TAX PAYOR FORECLOSES ON A TAX LIEN
TRANSFERRED AS PROVIDED BY SECTION NINE HUNDRED SIXTY-TWO OF THIS TITLE,
BEGINNING ON THE DATE THE REFEREE'S DEED IS RECORDED, THE  PERSON  WHOSE
PROPERTY  IS  SOLD AS PROVIDED BY SECTION NINE HUNDRED SIXTY-SIX OF THIS
TITLE OR THE MORTGAGE SERVICER OF A PRIOR RECORDED FIRST  MORTGAGE  LIEN
AGAINST  THE PROPERTY IS ENTITLED TO REDEEM THE FORECLOSED PROPERTY FROM
THE PURCHASER OR THE PURCHASER'S SUCCESSOR BY PAYING  THE  PURCHASER  OR
HIS OR HER SUCCESSOR:
  (A)  ONE HUNDRED TWENTY PERCENT OF THE AMOUNT PAID BY THE PURCHASER AT
THE FORECLOSURE SALE; AND
  (B) THE AMOUNT REASONABLY SPENT BY THE PURCHASER  IN  CONNECTION  WITH
THE  UPKEEP  OF  THE  PROPERTY PLUS THE LEGAL JUDGMENT RATE OF RETURN ON
THAT AMOUNT. THE PROPERTY PURCHASER SHALL ONLY BE  ENTITLED  TO  RECOVER
THE  COSTS  CONTAINED  WITHIN  THIS  PARAGRAPH IF THE PURCHASER PROVIDES
WRITTEN PROOF OF ANY AND ALL COSTS INCURRED IN THE UPKEEP OF THE PROPER-
TY PRIOR TO REDEMPTION.
  2. THE RIGHT OF REDEMPTION PROVIDED BY THIS SECTION MAY  BE  EXERCISED
NOT LATER THAN THE ONE HUNDRED EIGHTIETH DAY AFTER THE DATE ON WHICH THE
REFEREE'S  DEED IS FILED IN THE OFFICE OF THE COUNTY CLERK OF THE COUNTY
WHERE THE PROPERTY IS SITUATED.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.