S T A T E   O F   N E W   Y O R K
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                                   729

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 7, 2015
                               ___________

Introduced  by  M. of A. GUNTHER, COOK -- Multi-Sponsored by -- M. of A.
  McDONOUGH -- read once and referred to the Committee 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 NINETEEN, 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 TWENTY, 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01674-01-5
              

A. 729                              2

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.
  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 AT WHICH THE CITY SOLD THE LIEN OR
LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE  ANY  ACCRUED  INTEREST.
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  CHARGES  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

A. 729                              3

THE SENATE AND ASSEMBLY WHICH DETAILS THE EXPERIENCES OF ALL CITIES 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  FIFTEEN
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, 2019, 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, 2020,
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 AT WHICH THE VILLAGE SOLD
THE LIEN OR LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE ANY  ACCRUED
INTEREST.  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 NOTI-
FY  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 FORECLO-
SURE  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 ACCRUING ON THE TAX LIEN CERTIFICATE.
THE  TAX  LIEN  PURCHASER SHALL NOT BE ALLOWED TO CHARGE ANY OTHER FEES,
COSTS OR CHARGES EXCEPT THOSE EXPRESSLY ALLOWED HEREIN UNDER THIS SUBDI-
VISION.

A. 729                              4

  (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.
  (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 3  OF
THE CHAPTER OF THE LAWS OF 2015 THAT ADDED THIS SUBDIVISION.
  (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, 2020 when upon such date the provisions of this act shall be  deemed
repealed.