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

                                  5242

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2015
                               ___________

Introduced by M. of A. PAULIN, SCHIMEL, COOK, GUNTHER -- Multi-Sponsored
  by -- M. of A.  PERRY, TITONE -- read once and referred to the Commit-
  tee on Judiciary

AN  ACT to amend the eminent domain procedure law, in relation to desig-
  nating blighted property and blighted areas; to  amend  the  New  York
  state urban development corporation act, in relation to the definition
  of blight and substandard or insanitary area; and to amend the general
  municipal  law  and  the New York state urban development and research
  corporation act, in relation to substandard and insanitary areas

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

  Section  1. Section 103 of the eminent domain procedure law is amended
by adding a new subdivision (H) to read as follows:
  (H) "BLIGHTED PROPERTY" AND "BLIGHTED AREA"  MEANS  PROPERTY  THAT  IS
DECLARED BLIGHTED UNDER SECTION TWO HUNDRED FOUR-A OF THIS CHAPTER.
  S  2.  Subdivision  (B) of section 204 of the eminent domain procedure
law is amended by adding a new closing paragraph to read as follows:
  A CONDEMNOR SHALL NOT TAKE ACTION AGAINST A PROPERTY OR AREA WHEN  THE
PUBLIC  USE,  BENEFIT,  OR  PURPOSE  TO BE SERVED BY THE PROPOSED PUBLIC
PROJECT IS TO REMEDY BLIGHT, UNLESS SUCH PROPERTY OR AREA SATISFIES  THE
DEFINITION OF "BLIGHTED PROPERTY OR BLIGHTED AREA" AS DEFINED BY SECTION
TWO  HUNDRED  FOUR-A  OF THIS ARTICLE.  THE CONDEMNOR SHALL INCLUDE SUCH
FINDINGS IN ITS DETERMINATION AND FINDINGS PURSUANT TO THIS  SUBDIVISION
IN ORDER TO TAKE ACTION AGAINST AN AREA OR PROPERTY TO REMEDY BLIGHT.
  S  3.  The  eminent  domain  procedure  law is amended by adding a new
section 204-a to read as follows:
  S 204-A. BLIGHTED PROPERTY AND BLIGHTED  AREAS.  (A)  SUBJECT  TO  THE
EXCEPTIONS  LISTED  IN PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION,
ANY SINGLE PROPERTY MAY BE DECLARED BLIGHTED IF:
  (1) (A) (I) THE PROPERTY IS UNFIT FOR HUMAN HABITATION  DUE  TO  IDEN-
TIFIABLE  CONDITIONS  THAT  ENDANGER  THE LIFE, HEALTH AND SAFETY OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07039-06-5
              

A. 5242                             2

OWNERS, OCCUPANTS, OR GENERAL PUBLIC.    CONDITIONS  RENDERING  PROPERTY
UNFIT  FOR  HUMAN HABITATION INCLUDE, BUT ARE NOT LIMITED TO, STRUCTURAL
DEFECTS,  DILAPIDATION,  DETERIORATION,   VERMIN   INFESTATION,   HEALTH
HAZARDS,  FIRE  HAZARDS,  LACK  OF  PROPER SANITARY FACILITIES, OBSOLETE
SYSTEMS OF UTILITIES, OR INADEQUATE MAINTENANCE; OR
  (II) THE PROPERTY HAS DETERIORATED TO THE POINT WHERE:
  1. THE BUILDING IS STRUCTURALLY UNSOUND OR POSES AN  IMMEDIATE  THREAT
TO LIFE OR OTHER PROPERTY; OR
  2. THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABILI-
TATION MARKET VALUE.
  (B) THE OWNER FAILS TO REMEDY SUBPARAGRAPH (A) OF THIS PARAGRAPH WITH-
IN  A  REASONABLE TIME AFTER RECEIVING NOTICE OF VIOLATION BY THE APPRO-
PRIATE GOVERNING BODY REQUIRING THE OWNER TO:
  (I) REHABILITATE THE BUILDING TO CONFORM TO MINIMUM CODE  HABITABILITY
REQUIREMENTS; OR
  (II) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS.
  (2) THE PROPERTY IS ABANDONED. PROPERTY SHALL BE DEEMED ABANDONED IF:
  (A)  PROPERTY  IS  UNOCCUPIED AND HAS BEEN TAX DELINQUENT FOR AT LEAST
TWO YEARS; OR
  (B) A BUILDING IS UNOCCUPIED BY THE OWNER OR  TENANTS,  IS  UNFIT  FOR
HUMAN HABITATION, AND HAS DETERIORATED TO THE POINT WHERE:
  (I)  THE BUILDING IS STRUCTURALLY UNSOUND OR POSES AN IMMEDIATE THREAT
TO LIFE OR OTHER PROPERTY; OR
  (II) THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABI-
LITATION MARKET VALUE; AND
  (III) THE OWNER IS UNKNOWN OR THE OWNER FAILS TO  RESPOND  WITHIN  SIX
MONTHS TO A VIOLATION NOTICE FROM THE APPROPRIATE GOVERNING BODY REQUIR-
ING THE OWNER TO:
  1.  REHABILITATE  THE  BUILDING  TO  CONFORM  TO  MINIMUM HABITABILITY
REQUIREMENTS; OR
  2. DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS.
  (3) A VACANT LOT ON WHICH A BUILDING HAS BEEN DEMOLISHED AND FOR WHICH
A MUNICIPAL LIEN FOR DEMOLITION COSTS REMAINS UNPAID FOR SIX MONTHS.
  (4) PROPERTY THAT IS ENVIRONMENTALLY  CONTAMINATED  REQUIRING  REMEDI-
ATION FOR CURRENT OR FUTURE USE UNDER STATE OR FEDERAL LAW, IF THE OWNER
FAILS  TO  REMEDY  THE  PROBLEM WITHIN SIX MONTHS OF RECEIVING NOTICE OF
VIOLATION FROM THE APPROPRIATE GOVERNING BODY.
  (5) A PREMISES  WHICH,  BECAUSE  OF  PHYSICAL  CONDITION  OR  USE,  IS
REGARDED  AS  A  PUBLIC  NUISANCE  AT  COMMON LAW OR HAS BEEN DECLARED A
PUBLIC NUISANCE UNDER A STATUTE OR AN APPLICABLE MUNICIPAL CODE, AND THE
OWNER FAILS TO ABATE THE NUISANCE WITHIN SIX MONTHS OF RECEIVING  NOTICE
OF VIOLATION FROM THE APPROPRIATE GOVERNING BODY.
  (6) DEFECTIVE OR UNUSUAL CONDITIONS OF TITLE THAT MAKE THE FREE TRANS-
FER OR ALIENATION OF THE PROPERTY IMPOSSIBLE.
  (7)  PROPERTY  THAT  IS  OCCUPIED  OR UNOCCUPIED HAS TAX DELINQUENCIES
EXCEEDING THE VALUE OF THE PROPERTY.
  (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE FOLLOWING EXCEPTIONS SHALL APPLY:
  (1) PROPERTY SHALL IN NO CASE BE DECLARED BLIGHTED IF IT MEETS ONE  OR
MORE OF THE FOLLOWING CRITERIA:
  (A)  VACANT  AND  UNIMPROVED PROPERTY LOCATED IN ANY RURAL OR SUBURBAN
AREA WHICH IS NOT SERVED BY EXISTING UTILITIES.
  (B) PROPERTY WHICH SATISFIES THE DEFINITION OF "FARM WOODLAND",  "LAND
USED IN AGRICULTURAL PRODUCTION", "UNIQUE AND IRREPLACEABLE AGRICULTURAL
LAND",  OR  "VIABLE  AGRICULTURAL  LAND",  AS THOSE TERMS ARE DEFINED IN
SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW.

A. 5242                             3

  (2) FOR PURPOSES OF THIS SECTION, IF A DEVELOPER OR CONDEMNER INVOLVED
IN A REDEVELOPMENT PROJECT HAS CAUSED OR  BROUGHT  ABOUT  BY  ACTION  OR
INACTION  OR  MAINTAINED FOR MORE THAN SEVEN YEARS A CONDITION LISTED IN
SUBDIVISION (A) OF THIS SECTION WITHIN THE PROPOSED PROJECT  AREA,  THAT
CONDITION MAY NOT BE USED IN THE DETERMINATION OF BLIGHT.
  (3)  FOR PURPOSES OF THIS SECTION, IF PROPERTY LOCATED IN AN URBANIZED
AREA GENERALLY SERVED BY MUNICIPAL INFRASTRUCTURE  AND  UTILITIES  MEETS
ONE  OR MORE OF THE CONDITIONS LISTED IN SUBDIVISION (A) OF THIS SECTION
DUE TO FAILURE ON THE PART OF THE APPROPRIATE GOVERNING BODY TO  PROVIDE
NECESSARY UTILITY SERVICES AND/OR INFRASTRUCTURE, THAT CONDITION MAY NOT
BE USED IN THE DETERMINATION OF BLIGHT.
  (C) MULTIPLE PROPERTIES AND PROJECT AREAS MAY BE DECLARED BLIGHTED.
  (1) A CONDEMNER MAY USE EMINENT DOMAIN TO ACQUIRE ANY UNIT OF PROPERTY
WITHIN A BLIGHTED PROJECT AREA.
  (2)  FOR  PURPOSES  OF ACQUIRING MULTIPLE UNITS OF PROPERTY BY EMINENT
DOMAIN, AN AREA MAY BE DECLARED GENERALLY BLIGHTED ONLY IF A MAJORITY OF
THE INDIVIDUAL PARCELS IN THE AREA ARE DECLARED BLIGHTED UNDER  SUBDIVI-
SION (A) OF THIS SECTION AND REPRESENT A MAJORITY OF THE GEOGRAPHIC AREA
OF THE PROJECT.
  (3)  PROPERTIES  OWNED BY A DEVELOPER OR CONDEMNER INVOLVED IN A REDE-
VELOPMENT PROJECT MAY BE INCLUDED IN ANY BLIGHTED PROJECT AREA  DETERMI-
NATION.
  (D) FOR PURPOSES OF THIS SECTION, A BUILDING CONTAINING MULTIPLE UNITS
SHALL BE TREATED AS A SINGLE PROPERTY.
  (E)  BEFORE  A  PROPERTY  MAY  BE  DECLARED  BLIGHTED PURSUANT TO THIS
SECTION, THE CONDEMNER SHALL:
  (1) IN THE CASE OF A SINGLE PROPERTY, MAKE WRITTEN FINDINGS  IDENTIFY-
ING  THE  SPECIFIC  CONDITIONS  WHICH RENDER THE PROPERTY BLIGHTED UNDER
SUBDIVISION (A) OF THIS SECTION;
  (2) IN THE CASE OF MULTIPLE PROPERTIES OR PROJECT AREAS, MAKE  WRITTEN
FINDINGS  DEMONSTRATING THAT THE CONDITIONS OF SUBDIVISION (C) HAVE BEEN
MET. IN ORDER TO DEMONSTRATE THAT A MAJORITY OF THE  INDIVIDUAL  PARCELS
ARE  BLIGHTED  AND  COMPRISE  A MAJORITY OF THE GEOGRAPHICAL AREA OF THE
PROJECT, EACH BLIGHTED PROPERTY MUST  BE  IDENTIFIED  AND  THE  SPECIFIC
CONDITIONS  RENDERING  IT BLIGHTED UNDER SUBDIVISION (A) OF THIS SECTION
MUST BE IDENTIFIED.
  (F) ANY DECLARATION MADE PURSUANT TO THIS SECTION SHALL BE VALID FOR A
PERIOD OF UP TO FIFTEEN YEARS.
  S 4. Section 206 of the eminent domain procedure law, subdivision  (E)
as  added  by  chapter  468  of  the laws of 1978, is amended to read as
follows:
  S 206. Exemptions. The condemnor shall be exempt from compliance  with
the provisions of this article when:
  (A)  pursuant  to  other state, federal, or local law or regulation it
considers and submits factors [similar to those] enumerated in  subdivi-
sion  (B)  of  section  two  hundred  four, to a state, federal or local
governmental agency, board or  commission  before  proceeding  with  the
acquisition  and  obtains  a  license, a permit, a certificate of public
convenience or necessity or other similar  approval  from  such  agency,
board, or commission or;
  (B)  pursuant  to  article VII [or article VIII] of the public service
law it obtained a certificate of environmental compatibility and  public
need or;
  (C)  pursuant  to other law or regulation it undergoes or conducts [or
offers to conduct] prior to an acquisition one or more  public  hearings
upon  notice  to  the  public and owners of property to be acquired, and

A. 5242                             4

provided further that factors [similar to those] enumerated in  subdivi-
sion (B) of section two hundred four herein [may] SHALL be considered at
such public hearings, or;
  (D) when in the opinion of the condemnor the acquisition is de minimis
in  nature  so  that  the  public interest will not be prejudiced by the
construction of the project or because of  an  emergency  situation  the
public  interest  will  be  endangered by any delay caused by the public
hearing requirement in this article.
  (E) when it complies with the procedures contained in section 41.34 of
the mental hygiene law.
  S 5. Section 3 of section 1 of  chapter  174  of  the  laws  of  1968,
constituting  the  New  York state urban development corporation act, is
amended by adding a new subdivision 31 to read as follows:
  (31)  "BLIGHTED  PROPERTY"  AND  "BLIGHTED  AREA".  PROPERTY  THAT  IS
DECLARED  BLIGHTED  UNDER  SECTION 204-A OF THE EMINENT DOMAIN PROCEDURE
LAW.
  S 6. Subdivision 12 of section 3 of section 1 of chapter  174  of  the
laws  of  1968, constituting the New York state urban development corpo-
ration act, is amended to read as follows:
  (12) "Substandard or insanitary area". The term "substandard or insan-
itary area" shall mean and be interchangeable with a [slum,]  blighted[,
deteriorated  or  deteriorating]  area, or an area which has a blighting
influence on the surrounding area, whether residential, non-residential,
commercial, industrial, vacant or land in highways,  waterways,  railway
and subway tracks and yards, bridge and tunnel approaches and entrances,
or  other  similar  facilities,  over  which air rights and easements or
other rights of user necessary for the use and development of  such  air
rights,  to  be developed as air rights sites for the elimination of the
blighting influence, or any combination thereof and  may  include  land,
buildings  or  improvements,  or air rights and concomitant easements or
other rights of user necessary for the use and development of  such  air
rights not in themselves substandard or insanitary.
  S  7. The second and the sixth undesignated paragraphs of section 2 of
section 1 of chapter 174 of the laws of 1968, constituting the New  York
state urban development corporation act, are amended to read as follows:
  It  is  further  found  and  declared that there exist in many munici-
palities within  this  state  residential,  nonresidential,  commercial,
industrial  or  vacant  areas, and combinations thereof, which are [slum
or] blighted, or which are becoming [slum or] blighted areas because  of
substandard[,]  OR insanitary CONDITIONS, [deteriorated or deteriorating
conditions, including obsolete and dilapidated buildings and structures,
defective construction, outmoded design, lack of proper sanitary facili-
ties or adequate fire or safety  protection,  excessive  land  coverage,
insufficient  light and ventilation, excessive population density, ille-
gal uses and conversions, inadequate maintenance, buildings abandoned or
not utilized in whole or substantial part, obsolete  systems  of  utili-
ties,  poorly  or improperly designed street patterns and intersections,
inadequate access to areas, traffic congestion hazardous to  the  public
safety,  lack  of  suitable  off-street  parking, inadequate loading and
unloading facilities,  impractical  street  widths,  sizes  and  shapes,
blocks  and lots of irregular form, shape or insufficient size, width or
depth, unsuitable topography, subsoil or other physical conditions,  all
of] which hamper or impede proper and economic development of such areas
and  which  impair  or arrest the sound growth of the area, community or
municipality, and the state as a whole.

A. 5242                             5

  It is further declared to be the policy of the state  to  promote  the
safety,  health,  morals  and  welfare of the people of the state and to
promote the sound growth and development of our  municipalities  through
the  correction of such substandard, insanitary[,] OR blighted[, deteri-
orated  or deteriorating] conditions, factors and characteristics by the
clearance, replanning,  reconstruction,  redevelopment,  rehabilitation,
restoration  or  conservation  of  such  areas,  and of areas reasonably
accessible thereto the undertaking of  public  and  private  improvement
programs related thereto, including the provision of educational, recre-
ational  and cultural facilities, and the encouragement of participation
in these programs by private enterprise.
  S 8. Paragraph (d) of subdivision 6 of section 16-n of  section  1  of
chapter  174  of the laws of 1968, constituting the New York state urban
development corporation act, as added by section 2 of part C-2 of  chap-
ter 109 of the laws of 2006, is amended to read as follows:
  (d)  A  municipality  that  is  granted  an award or awards under this
section shall provide a  matching  contribution  of  no  less  than  ten
percent of the aggregated award or awards amount. Such matching contrib-
ution  may  be  in  the form of a financial and/or in kind contribution.
Financial contributions may include grants from federal, state and local
entities.  In kind contributions may include but shall not be limited to
the efforts of municipalities to conduct an inventory and assessment  of
vacant, abandoned, surplus, AND condemned[, and deteriorated] properties
and  to  manage  and administer grants pursuant to subdivisions four and
five of this section.
  S 9. Section 501 of the general municipal law, as added by chapter 402
of the laws of 1961, is amended to read as follows:
  S 501. Policy and purposes of article. There  exist  in  many  munici-
palities  within  this  state  residential, non-residential, commercial,
industrial or vacant areas, and combinations thereof,  which  are  [slum
or]  blighted, or which are becoming [slum or] blighted areas because of
substandard[,] OR insanitary[,  deteriorated  or  deteriorating]  condi-
tions,  factors,  and characteristics, with or without tangible physical
blight. The existence of such areas constitutes a  serious  and  growing
menace,  is  injurious to the public safety, health, morals and welfare,
contributes increasingly to the spread of  crime,  juvenile  delinquency
and disease, necessitates excessive and disproportionate expenditures of
public  funds for all forms of public service and constitutes a negative
influence on adjacent properties impairing their economic soundness  and
stability, thereby threatening the source of public revenues.
  In order to protect and promote the safety, health, morals and welfare
of  the people of the state and to promote the sound growth and develop-
ment of our municipalities, it is necessary to correct such substandard,
insanitary, OR blighted[,  deteriorated  or  deteriorating]  conditions,
factors   and  characteristics  by  the  clearance,  replanning,  recon-
struction, redevelopment, rehabilitation, restoration or conservation of
such areas, the undertaking of public and private  improvement  programs
related thereto and the encouragement of participation in these programs
by private enterprise.
  It is necessary for the accomplishment of such purposes to grant muni-
cipalities of this state the rights and powers provided in this article.
The  use  of  such rights and powers to correct such conditions, factors
and characteristics and to eliminate  or  prevent  the  development  and
spread  of [deterioration and] blight through the clearance, replanning,
reconstruction, rehabilitation, conservation or renewal of  such  areas,
for  residential,  commercial,  industrial,  community, public and other

A. 5242                             6

uses is a public use and public purpose essential to the  public  inter-
est, and for which public funds may be expended.
  S  10.  Subdivision  4 of section 502 of the general municipal law, as
amended by chapter 748 of the laws  of  1967,  is  amended  to  read  as
follows:
  4.  "Substandard or insanitary area." The term "substandard or insani-
tary area" shall mean and be interchangeable with a  [slum,]  blighted[,
deteriorated  or  deteriorating]  area, or an area which has a blighting
influence on the surrounding area, whether residential, non-residential,
commercial, industrial, vacant, or land in highways, railway and  subway
tracks,  bridge  and  tunnel  approaches and entrances, or other similar
facilities, over which air rights and easements or other rights of  user
necessary  for  the use and development of such air rights, to be devel-
oped as air rights sites for the elimination of the blighting influence,
or any combination thereof and may include land, buildings  or  improve-
ments,  or  air rights and concomitant easements or other rights of user
necessary for the use and development of such air rights, not  in  them-
selves  substandard  or  insanitary,  the  inclusion  of which is deemed
necessary for the effective undertaking of one  or  more  urban  renewal
programs.
  S  11.  Paragraph  (a)  of subdivision 5 of section 510 of the general
municipal law, as amended by chapter 829 of the laws of 1968, is amended
to read as follows:
  (a) Notwithstanding anything contained in this article to the  contra-
ry, the commissioner may in the name of the state, within appropriations
heretofore  or  hereafter  made  for  state  capital grants to assist in
carrying out one or more local urban renewal programs, make or  contract
to  make  state  capital grants to municipalities to assist in financing
the cost of the preparation and completion  of  one  or  more  community
renewal programs.
  A  community renewal program may include, without being limited to (1)
the identification of [slum areas or] blighted[, deteriorated, or  dete-
riorating] areas in the community, (2) the measurement of the nature and
degree  of  blight and blighting factors within such areas, (3) determi-
nation of the financial, relocation,  and  other  resources  needed  and
available  to  renew  such  areas,  (4)  the identification of potential
project areas and, where feasible, types of urban renewal action contem-
plated within such areas, and (5) scheduling  or  programming  of  urban
renewal activities.
  S  12.  Section  520 of the general municipal law, as added by chapter
402 of the laws of 1961, is amended to read as follows:
  S 520. Construction. This article  shall  be  construed  liberally  to
effect  the  purposes  hereof  and the enumeration of specific powers in
this act shall not operate to restrict the meaning of any general  grant
of  power  contained  in this chapter or to exclude other powers compre-
hended in such general grant. In construing this  chapter  consideration
shall  be given to its purposes and intent, among others, of consolidat-
ing, clarifying and simplifying the respective provisions of  the  chap-
ters  repealed  as hereinafter specified in section five hundred twenty-
five hereof and of authorizing municipalities to undertake one  or  more
programs  of  urban  renewal  with respect to the clearance, replanning,
reconstruction, rehabilitation, redevelopment, conservation, restoration
or improvement of substandard, insanitary, [slum,] OR blighted[, deteri-
orated  or  deteriorating]  residential,  non-residential,  improved  or
vacant  areas,  or the remedying of unsuitable topographical, subsoil or
other physical conditions which tend to impede the development  of  such

A. 5242                             7

areas,  for  residential,  commercial, industrial, community, public and
other uses and to apply for and accept federal or state loans, subsidies
or grants in connection therewith. Insofar as  the  provisions  of  this
article  are  inconsistent  with  the  provisions  of any other general,
special or local law, the provisions of this article shall  be  control-
ling.
  S  13.  The  third undesignated paragraph of section 2 of section 1 of
chapter 173 of the laws of 1968, constituting the New York  state  urban
development and research corporation act, is amended to read as follows:
  The  legislature  hereby declares it to be the policy of this state to
provide an adequate supply of safe and sanitary dwelling accommodations;
to increase job opportunities and protect against involuntary  unemploy-
ment and underemployment by promoting, attracting, stimulating and revi-
talizing  business,  commerce,  industry  and manufacturing in the urban
areas of the state; and to arrest  the  spread  of  [deterioration  and]
blight  and  promote the economic and physical development of such areas
through the construction, reconstruction, rehabilitation and improvement
of residential, commercial  and  industrial  structures  and  facilities
therein.
  S 14. This act shall take effect immediately.