S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1408
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2017
                                ___________
 
 Introduced  by  Sens.  AVELLA, KLEIN, STAVISKY -- read twice and ordered
   printed, and when printed to be committed to the  Committee  on  Local
   Government
 
 AN  ACT  to  amend the real property tax law, the administrative code of
   the city of New York and the real property law, in relation to classi-
   fying properties held in condominium and cooperative form for  assess-
   ment  purposes  as  class  one-a  properties;  and  to  repeal certain
   provisions of the real property tax law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1802 of the real property tax law,
 as separately amended by chapters 123 and 529 of the laws of 1990, para-
 graph  class  one  as  amended  by  chapter  332 of the laws of 2008, is
 amended to read as follows:
   1. All real property, for the purposes of this article, in  a  special
 assessing unit shall be classified as follows:
   Class  one: (a) all one, two and three family residential real proper-
         ty, including such dwellings used  in  part  for  nonresidential
         purposes  but which are used primarily for residential purposes,
         except such property held in cooperative or condominium forms of
         ownership other than (i) property defined in  subparagraphs  (b)
         and  (c)  of  this paragraph and (ii) property which contains no
         more than three dwelling  units  held  in  condominium  form  of
         ownership and which was classified within this class on a previ-
         ous  assessment  roll;  and  provided  that, notwithstanding the
         provisions of paragraph (g) of subdivision twelve of section one
         hundred two of this chapter, a mobile home or  a  trailer  shall
         not  be classified within this class unless it is owner-occupied
         and separately assessed; and (b) residential real  property  not
         more  than  three  stories in height held in condominium form of
         ownership, provided that no dwelling unit therein previously was
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01285-01-7

 S. 1408                             2
 
         on an assessment roll as a dwelling unit in other than condomin-
         ium  form  of  ownership;  and  (c)  residential  real  property
         consisting of one family house structures owned by the occupant,
         situated  on land held in cooperative ownership by owner occupi-
         ers, provided that; (i) such house structures and  land  consti-
         tuted  bungalow  colonies in existence prior to nineteen hundred
         forty; and (ii) the land is held in  cooperative  ownership  for
         the  sole  purpose  of  maintaining  one  family  residences for
         members own use; and  (d)  all  vacant  land  located  within  a
         special  assessing unit which is a city (i) other than such land
         in the borough of Manhattan, provided that any such vacant  land
         which  is  not  zoned  residential  must be situated immediately
         adjacent to property improved with a  residential  structure  as
         defined in subparagraphs (a) and (b) of this paragraph, be owned
         by the same owner as such immediately adjacent residential prop-
         erty  immediately prior to and since January 1, 1989, and have a
         total area not exceeding 10,000 square feet; and (ii) located in
         the borough of Manhattan north of or adjacent to the north  side
         of  110th street provided such vacant land was classified within
         this class on the assessment roll with a taxable status date  of
         January  5,  2008  and the owner of such land has entered into a
         recorded agreement with  a  governmental  entity  on  or  before
         December  31,  2008 requiring construction of housing affordable
         to persons or families of low  income  in  accordance  with  the
         provisions  of  the private housing finance law. Notwithstanding
         the foregoing, such vacant land shall be classified according to
         its use on the assessment roll with a taxable status date  imme-
         diately   following   commencement   of  construction,  provided
         further, that construction pursuant  to  an  approved  plan  for
         affordable  housing  shall  commence  no later than December 31,
         2010; and (e) all vacant land located within a special assessing
         unit which is not a city, provided that such vacant  land  which
         is  not  zoned residential must be situated immediately adjacent
         to real property defined in subparagraph (a), (b) or (c) of this
         paragraph and be owned by the same person or persons who own the
         real property defined in such subparagraph immediately prior  to
         and since January 1, 2003;
   CLASS  ONE-A:  ALL OTHER RESIDENTIAL REAL PROPERTY HELD IN CONDOMINIUM
         OR COOPERATIVE FORM OF OWNERSHIP  WHICH  IS  NOT  DESIGNATED  AS
         CLASS  ONE;  THE  DEPARTMENT  OF  FINANCE OF ANY CITY ENACTING A
         LOCAL LAW PURSUANT TO THIS SECTION SHALL RECLASSIFY CLASS  ONE-A
         PROPERTIES  USED  PRIMARILY  TO  GENERATE RENTAL INCOME TO CLASS
         TWO. THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A LOCAL  LAW
         PURSUANT  TO  THIS  SECTION SHALL HAVE, IN ADDITION TO ANY OTHER
         FUNCTIONS, POWERS AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED
         ON IT BY LAW, THE POWER TO MAKE AND PROMULGATE  RULES  TO  CARRY
         OUT  THE PURPOSES OF THIS SECTION INCLUDING, BUT NOT LIMITED TO,
         RULES DEFINING THE CLASS  ONE-A  PROPERTIES  PRIMARILY  USED  TO
         GENERATE  RENTAL  INCOME,  AND  RELATING TO THE TIMING, FORM AND
         MANNER OF ANY CERTIFICATION REQUIRED TO BE SUBMITTED UNDER  THIS
         SECTION.  IF A PROPERTY PREVIOUSLY RECLASSIFIED FROM CLASS ONE-A
         TO CLASS TWO CEASES TO BE  USED  PRIMARILY  TO  GENERATE  RENTAL
         INCOME,  THE  DEPARTMENT SHALL RECLASSIFY SUCH PROPERTY TO CLASS
         ONE-A. THE DEPARTMENT SHALL USE A FIVE-YEAR PERIOD  WHEN  DETER-
         MINING  WHETHER  A PROPERTY IS USED PRIMARILY TO GENERATE RENTAL
         INCOME;

 S. 1408                             3
 
   Class two: all other residential real property which is not designated
         as class one OR CLASS ONE-A, except hotels and motels and  other
         similar commercial property;
   Class  three:  utility  real  property  and property subject to former
         section four hundred seventy of this chapter;
   Class four: all other real property which is not designated  as  class
         one, CLASS ONE-A, class two, or class three.
   §  1-a.  The  real property tax law is amended by adding a new section
 1803-c to read as follows:
   § 1803-C. CALCULATION OF SHARES.  1. FOR THE CALENDAR YEAR  TWO  THOU-
 SAND  EIGHTEEN,  NOTWITHSTANDING  THE  PROVISIONS  OF  SECTIONS EIGHTEEN
 HUNDRED THREE, EIGHTEEN HUNDRED THREE-A, AND EIGHTEEN HUNDRED THREE-B OF
 THIS ARTICLE TO THE CONTRARY, THE NEW YORK CITY COMMISSIONER OF  FINANCE
 SHALL ESTABLISH A NEW CLASS ONE-A PURSUANT TO SUBDIVISION ONE OF SECTION
 EIGHTEEN  HUNDRED  TWO  OF  THIS  ARTICLE AND SHALL CALCULATE SHARES FOR
 CLASS ONE, CLASS ONE-A, CLASS TWO, CLASS THREE AND CLASS FOUR WHERE  THE
 BASE  YEAR  USED IN THE CALCULATION OF THE CURRENT BASE PROPORTION SHALL
 BE THE 2017 ASSESSMENT ROLL AND THE SUM OF CLASS  ONE-A  AND  CLASS  TWO
 SHALL NOT EXCEED THE PRIOR YEAR ADJUSTED BASE PROPORTION FOR SUCH CLASS-
 ES.
   2. AFTER TWO THOUSAND NINETEEN, ASSESSMENT ROLLS PREPARED ACCORDING TO
 JANUARY  1,  2019, THE ADJUSTED BASE PROPORTIONS FOR CLASS ONE AND CLASS
 ONE-A, SHALL NOT EXCEED EACH CLASS' PRIOR ADJUSTED  BASE  PROPORTION  BY
 MORE THAN FIVE PERCENT.
   3.  IN  A CITY HAVING A POPULATION OF ONE MILLION OR MORE, SUCH CITY'S
 TAX FIXING RESOLUTION SHALL SET A TAX RATE FOR CLASS ONE-A IN  THE  SAME
 MANNER  AS ALL CLASS SHARES ARE CALCULATED PURSUANT TO SECTIONS EIGHTEEN
 HUNDRED THREE, EIGHTEEN HUNDRED THREE-A AND EIGHTEEN HUNDRED THREE-B  OF
 THIS ARTICLE.
   4. THE ASSESSMENT RATIO FOR CLASS ONE-A SHALL BE SIX PERCENT.
   §  2.  Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4
 of section 307-a of the real property tax law, as added by section 1  of
 part  G  of  chapter  63  of  the  laws  of 2003, are amended to read as
 follows:
   1. Generally.  Notwithstanding any provision of any  general,  special
 or  local law to the contrary, any city with a population of one million
 or more is hereby authorized and empowered to adopt and amend local laws
 in accordance with this section imposing an additional  tax  on  certain
 class  one AND CLASS ONE-A properties, as such properties are defined in
 section eighteen hundred two of this chapter, excluding vacant land.
   (c) "Net real property tax" means the real property tax assessed on  A
 class  one  OR CLASS ONE-A property after deduction for any exemption or
 abatement received pursuant to this chapter.
   4. Property subject to additional tax. Such surcharge shall be imposed
 on class one AND CLASS  ONE-A  property,  excluding  vacant  land,  that
 provides  rental income and is not the primary residence of the owner or
 owners of such class one OR CLASS ONE-A property, or the  primary  resi-
 dence of the parent or child of such owner or owners.
   § 3. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
 erty  tax  law,  as added by chapter 273 of the laws of 1996, is amended
 and a new paragraph (i) is added to read as follows:
   (f) "Property" means real property designated as  class  [two]  ONE-A,
 pursuant  to  section  eighteen hundred two of this chapter, held in the
 cooperative or condominium form of ownership.
   (I) "MARKET VALUE" SHALL BE CALCULATED BY THE NEW YORK CITY DEPARTMENT
 OF FINANCE BASED UPON COMPARABLE SALES.

 S. 1408                             4
 
   § 4. Paragraphs (d-1), (d-2), (d-3) and  (d-4)  of  subdivision  2  of
 section  467-a of the real property tax law, as amended by section 62 of
 part A of chapter 20 of the laws of 2015,  are  amended  and  seven  new
 paragraphs  (d-7),  (d-8),  (d-9), (d-10), (d-11), (d-12) and (d-13) are
 added to read as follows:
   (d-1)  In  the  fiscal years commencing in calendar years two thousand
 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
 ing units in property whose average unit assessed value is less than  or
 equal to fifty thousand dollars shall receive a partial abatement of the
 real  property  taxes  attributable  to or due on such dwelling units of
 twenty-five percent, twenty-six and one-half  percent  and  twenty-eight
 and  one-tenth  percent  respectively. In the fiscal years commencing in
 calendar years two thousand fifteen[,] AND two  thousand  sixteen[,  two
 thousand seventeen and two thousand eighteen] eligible dwelling units in
 property  whose  average  unit  assessed  value is less than or equal to
 fifty thousand dollars shall receive a partial  abatement  of  the  real
 property  taxes attributable to or due on such dwelling units of twenty-
 eight and one-tenth percent.
   (d-2) In the fiscal years commencing in calendar  years  two  thousand
 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
 ing  units  in  property  whose average unit assessed value is more than
 fifty thousand dollars, but less than or equal  to  fifty-five  thousand
 dollars,  shall  receive  a partial abatement of the real property taxes
 attributable to or due on such dwelling units of twenty-two and one-half
 percent, twenty-three and eight-tenths percent and twenty-five and  two-
 tenths  percent respectively. In the fiscal years commencing in calendar
 years two thousand fifteen[,] AND two thousand  sixteen[,  two  thousand
 seventeen and two thousand eighteen] eligible dwelling units in property
 whose  average  unit assessed value is more than fifty thousand dollars,
 but less than or equal to fifty-five thousand dollars, shall  receive  a
 partial  abatement  of the real property taxes attributable to or due on
 such dwelling units of twenty-five and two-tenths percent.
   (d-3) In the fiscal years commencing in calendar  years  two  thousand
 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
 ing  units  in  property  whose average unit assessed value is more than
 fifty-five thousand dollars, but less than or equal  to  sixty  thousand
 dollars,  shall  receive  a partial abatement of the real property taxes
 attributable to or due on such dwelling units of twenty  percent,  twen-
 ty-one  and  two-tenths  percent, and twenty-two and five-tenths percent
 respectively. In the fiscal years commencing in calendar years two thou-
 sand fifteen[,] AND two thousand sixteen[, two  thousand  seventeen  and
 two thousand eighteen] eligible dwelling units in property whose average
 unit  assessed  value is more than fifty-five thousand dollars, but less
 than or equal to sixty thousand dollars, shall receive a partial  abate-
 ment  of the real property taxes attributable to or due on such dwelling
 units of twenty-two and five-tenths percent.
   (d-4) In the fiscal years commencing in calendar  years  two  thousand
 twelve,  two  thousand  thirteen,  two  thousand  fourteen, two thousand
 fifteen[,] AND two thousand sixteen[, two  thousand  seventeen  and  two
 thousand  eighteen,]  eligible  dwelling units in property whose average
 unit assessed value is more than sixty thousand dollars shall receive  a
 partial  abatement  of the real property taxes attributable to or due on
 such dwelling units of seventeen and one-half percent.
   (D-7) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE  AVERAGE  UNIT  MARKET
 VALUE  IS LESS THAN OR EQUAL TO SIX HUNDRED FIFTY THOUSAND DOLLARS SHALL
 RECEIVE A PARTIAL ABATEMENT OF REAL PROPERTY TAXES  ATTRIBUTABLE  TO  OR

 S. 1408                             5
 
 DUE  ON  SUCH  DWELLING UNITS, NOT TO EXCEED THIRTY-THREE PERCENT IN THE
 FISCAL YEAR COMMENCING IN CALENDAR YEAR TWO THOUSAND EIGHTEEN AND THERE-
 AFTER.
   (D-8)  ELIGIBLE  DWELLING  UNITS IN PROPERTY WHOSE AVERAGE UNIT MARKET
 VALUE IS BETWEEN SIX HUNDRED FIFTY THOUSAND ONE DOLLARS TO SEVEN HUNDRED
 FIFTY THOUSAND DOLLARS SHALL RECEIVE A PARTIAL  ABATEMENT  OF  THE  REAL
 PROPERTY  TAXES  ATTRIBUTABLE  TO  OR DUE ON SUCH DWELLING UNITS, NOT TO
 EXCEED TWENTY-TWO AND FIVE-TENTHS PERCENT IN THE FISCAL YEAR  COMMENCING
 IN CALENDAR YEAR TWO THOUSAND EIGHTEEN AND THEREAFTER.
   (D-9)  ELIGIBLE  DWELLING  UNITS IN PROPERTY WHOSE AVERAGE UNIT MARKET
 VALUE IS BETWEEN SEVEN HUNDRED FIFTY THOUSAND ONE AND ONE  MILLION  FIVE
 HUNDRED  THOUSAND  DOLLARS SHALL RECEIVE A PARTIAL ABATEMENT OF THE REAL
 PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON SUCH  DWELLING  UNITS,  NOT  TO
 EXCEED  SEVENTEEN  AND FIVE-TENTHS PERCENT IN THE FISCAL YEAR COMMENCING
 IN CALENDAR YEAR TWO THOUSAND EIGHTEEN AND THEREAFTER.
   (D-10) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE  UNIT  MARKET
 VALUE  IS  BETWEEN ONE MILLION FIVE HUNDRED THOUSAND ONE DOLLARS AND TWO
 MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED  SIXTY-SEVEN  DOLLARS
 SHALL  RECEIVE  A PARTIAL ABATEMENT OF THE REAL PROPERTY TAXES ATTRIBUT-
 ABLE TO OR DUE ON SUCH DWELLING UNITS, NOT TO EXCEED THIRTEEN AND  THIR-
 TEEN-HUNDREDTHS  PERCENT  IN THE FISCAL YEAR COMMENCING IN CALENDAR YEAR
 TWO THOUSAND EIGHTEEN AND THEREAFTER.
   (D-11) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE  UNIT  MARKET
 VALUE  IS BETWEEN TWO MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED
 SIXTY-EIGHT DOLLARS AND THREE MILLION EIGHT HUNDRED  THIRTY-THREE  THOU-
 SAND  THREE  HUNDRED THIRTY-THREE DOLLARS SHALL RECEIVE A PARTIAL ABATE-
 MENT OF THE REAL PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON SUCH  DWELLING
 UNITS,  NOT  TO  EXCEED  EIGHT AND SEVENTY-FIVE HUNDREDTH PERCENT IN THE
 FISCAL YEAR COMMENCING IN CALENDAR YEAR TWO THOUSAND EIGHTEEN AND THERE-
 AFTER.
   (D-12) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE  UNIT  MARKET
 VALUE IS BETWEEN THREE MILLION EIGHT HUNDRED THIRTY-THREE THOUSAND THREE
 HUNDRED  THIRTY-FOUR  DOLLARS  AND  FIVE MILLION DOLLARS SHALL RECEIVE A
 PARTIAL ABATEMENT OF THE REAL PROPERTY TAXES ATTRIBUTABLE TO OR  DUE  ON
 SUCH  DWELLING  UNITS,  NOT  TO  EXCEED FOUR AND THIRTY-EIGHT HUNDREDTHS
 PERCENT IN THE FISCAL YEAR COMMENCING  IN  CALENDAR  YEAR  TWO  THOUSAND
 EIGHTEEN AND THEREAFTER.
   (D-13)  ELIGIBLE  DWELLING UNITS IN PROPERTY WHOSE AVERAGE UNIT MARKET
 VALUE IS FIVE MILLION DOLLARS OR MORE SHALL RECEIVE A PARTIAL  ABATEMENT
 OF  THE  REAL  PROPERTY  TAXES  ATTRIBUTABLE  TO OR DUE ON SUCH DWELLING
 UNITS, NOT TO EXCEED ZERO PERCENT  IN  THE  FISCAL  YEAR  COMMENCING  IN
 CALENDAR YEAR TWO THOUSAND EIGHTEEN AND THEREAFTER.
   §  4-a.  The  real property tax law is amended by adding a new section
 467-a-1 to read as follows:
   § 467-A-1. ENHANCED PARTIAL ABATEMENT  FOR  CERTAIN  CONDOMINIUMS  AND
 COOPERATIVE RESIDENCES. 1. IN ADDITION TO THE PARTIAL ABATEMENT RECEIVED
 PURSUANT  TO  SECTION FOUR HUNDRED SIXTY-SEVEN-A OF THIS ARTICLE, IN THE
 FISCAL YEAR COMMENCING IN CALENDAR YEAR TWO THOUSAND EIGHTEEN,  ELIGIBLE
 UNITS  IN  PROPERTY  WHOSE  AVERAGE  UNIT  MARKET VALUE IS LESS THAN SIX
 HUNDRED FIFTY THOUSAND DOLLARS SHALL RECEIVE AN ENHANCED ABATEMENT EQUAL
 TO THE EXCESS ABOVE TWO PERCENT OF  THE  DIFFERENCE  BETWEEN  THE  PRIOR
 YEAR'S PROPERTY TAX AND THE CURRENT YEAR'S PROPERTY TAX.
   2.  IN  ADDITION TO THE PARTIAL ABATEMENT RECEIVED PURSUANT TO SECTION
 FOUR HUNDRED SIXTY-SEVEN-A OF THIS ARTICLE, IN THE FISCAL YEAR  COMMENC-
 ING  IN  CALENDAR YEAR TWO THOUSAND NINETEEN, ELIGIBLE UNITS IN PROPERTY
 WHOSE AVERAGE UNIT MARKET VALUE IS LESS THAN SIX HUNDRED FIFTY  THOUSAND

 S. 1408                             6
 
 DOLLARS  SHALL  RECEIVE  AN ENHANCED ABATEMENT EQUAL TO THE EXCESS ABOVE
 FOUR PERCENT OF THE DIFFERENCE BETWEEN THE PRIOR YEAR'S PROPERTY TAX AND
 THE CURRENT YEAR'S PROPERTY TAX.
   3.  IN  ADDITION TO THE PARTIAL ABATEMENT RECEIVED PURSUANT TO SECTION
 FOUR HUNDRED SIXTY-SEVEN-A OF THIS ARTICLE, IN THE FISCAL YEAR  COMMENC-
 ING  IN CALENDAR YEAR TWO THOUSAND TWENTY AND THEREAFTER, ELIGIBLE UNITS
 IN PROPERTY WHOSE AVERAGE UNIT MARKET VALUE IS  LESS  THAN  SIX  HUNDRED
 FIFTY  THOUSAND DOLLARS SHALL RECEIVE AN ENHANCED ABATEMENT EQUAL TO THE
 EXCESS ABOVE SIX PERCENT OF THE  DIFFERENCE  BETWEEN  THE  PRIOR  YEAR'S
 PROPERTY TAX AND THE CURRENT YEAR'S PROPERTY TAX. THE ENHANCED CONDOMIN-
 IUM  AND COOPERATIVE ABATEMENT SHALL NOT BE ELIGIBLE FOR UNITS WHERE THE
 COMMISSIONER DETERMINES THAT RENOVATION OR CONSTRUCTION WITHIN THE  UNIT
 OR  BUILDING  HAS  PRODUCED  A SUBSTANTIAL YEARLY INCREASE IN THE UNIT'S
 ASSESSED VALUE.
   § 5. Subdivision 7 of section 499-aaa of the real property tax law, as
 added by chapter 461 of the laws of 2008, is amended to read as follows:
   7. "Eligible building" shall mean a class one, CLASS ONE-A, class  two
 or  class  four  real property, as defined in subdivision one of section
 eighteen hundred two of this chapter, located within  a  city  having  a
 population of one million or more persons. No building shall be eligible
 for more than one tax abatement pursuant to this title.
   §  6.  Subdivision 7 of section 499-aaaa of the real property tax law,
 as added by chapter 473 of the laws of  2008,  is  amended  to  read  as
 follows:
   7.  "Eligible building" shall mean a class one, CLASS ONE-A, class two
 or class four real property, as defined in subdivision  one  of  section
 eighteen  hundred  two  of  this chapter, located within a city having a
 population of one million or more persons. No building shall be eligible
 for more than one tax abatement pursuant to this title.
   § 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
 ty tax law, as added by chapter 714 of the laws of 1982, is  amended  to
 read as follows:
   (b)  in  a  special  assessing  unit,  the  determination, pursuant to
 section eighteen hundred two of this chapter, of whether  real  property
 is included in class one, ONE-A, two, three or four.
   §  8. Subdivision 10 of section 523-b of the real property tax law, as
 added by chapter 593 of the laws of 1998, is amended to read as follows:
   10. On or before April first, each year the commission shall  mail  to
 each  applicant,  who has filed an application for the correction of the
 assessment, a notice of the commission's determination  of  such  appli-
 cant's  assessment.  Such  notice shall also contain the statement as to
 the final determination of the assessment review commission, or a state-
 ment that the commission has not yet made  a  determination  as  to  the
 final  assessed valuation which shall be made as soon as the petitioners
 application is reviewed or heard. If the applicants property is a  prop-
 erty  defined in subdivision one of section eighteen hundred two of this
 chapter as "Class 1", the commissions determination  shall  contain  the
 statement:  "If  you  are  dissatisfied  with  the  determination of the
 Assessment Review Commission and you are the owner  of  a  one,  two  or
 three family residential structure or residential real property not more
 than  three  stories  in  height  held in condominium form of ownership,
 provided that no dwelling unit therein previously was on  an  assessment
 roll as a dwelling unit in other than condominium form of ownership, and
 you  reside  at  such  residence,  you  may seek judicial review of your
 assessment either under title one of article seven of the real  property
 tax  law  or  under small claims assessment review law provided by title

 S. 1408                             7
 
 one-A of article seven of the real property tax law." Such notice  shall
 also  state that the last date to file petitions for judicial review and
 the location where small  claims  assessment  review  petitions  may  be
 obtained.
   Each  applicant that has filed an application of a property as defined
 in subdivision one of section eighteen hundred two of  this  chapter  as
 "CLASS  1-A",  "Class 2", "Class 3" or "Class 4", shall receive a notice
 as to the final determination of the assessment review commission  or  a
 statement that the commission has not yet made a determination as to the
 final  assessed valuation which shall be made as soon as the petitioners
 application is reviewed or heard. Such applicants  determinations  shall
 contain  the  statement: "If you are dissatisfied with the determination
 of the Assessment Review Commission you may seek judicial review of your
 assessment under title one of article seven of  the  real  property  tax
 law."  Such  notice shall also state the last date to file petitions for
 judicial review. A final determination when rendered shall  contain  the
 same statement. Failure to mail any such notice or failure of the appli-
 cant  to  receive  the same shall not affect the validity of the assess-
 ment.
   § 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
 ty tax law, as added by chapter 714 of the laws of 1982, is  amended  to
 read as follows:
   (b)  In  a  special  assessing  unit,  the  determination, pursuant to
 section eighteen hundred two of this chapter, of whether  real  property
 is included in class one, ONE-A, two, three or four.
   §  10. Subparagraph 2 of paragraph (a) of subdivision 3 of section 720
 of the real property tax law, as amended by chapter 679 of the  laws  of
 1986, is amended to read as follows:
   (2)  "Major  type of property" in special assessing units, for assess-
 ments on rolls completed after December thirty-first,  nineteen  hundred
 eighty-one,  shall  mean  classes  one,  ONE-A,  two,  three and four as
 defined in subdivision one of section eighteen hundred two of this chap-
 ter.
   § 11. The opening paragraph of subdivision 1 of section  1805  of  the
 real property tax law, as amended by chapter 935 of the laws of 1984, is
 amended  and  two  new  subdivisions  1-a  and  1-b are added to read as
 follows:
   The assessor of any special assessing  unit  shall  not  increase  the
 assessment  of  any  individual  parcel classified in class one OR CLASS
 ONE-A in any one year, as measured from the assessment on  the  previous
 year's  assessment roll, by more than six percent and shall not increase
 such assessment by more than twenty percent in any five-year period. The
 first such five-year  period  shall  be  measured  from  the  individual
 assessment  appearing  on  the  assessment  roll  completed  in nineteen
 hundred eighty; provided that if such parcel would not have been subject
 to the provisions of this subdivision in  nineteen  hundred  eighty  had
 this  subdivision  then  been in effect, the first such five-year period
 shall be measured from the first year after nineteen hundred  eighty  in
 which  this  subdivision applied to such parcel or would have applied to
 such parcel had this subdivision been in effect in such year.
   If, in respect to any individual parcel classified in class one on the
 assessment roll completed and applicable for the year  nineteen  hundred
 eighty-two,  the  assessment  for  the  year nineteen hundred eighty-one
 exceeds by more than twenty percent the assessment for the year nineteen
 hundred eighty, such assessor shall compute the actual assessments to be

 S. 1408                             8
 
 entered on assessment rolls applicable to  the  years  nineteen  hundred
 eighty-two through nineteen hundred ninety as follows:
   1-A.  ASSESSMENT  ROLLS  COMPUTED  FOR  CLASS  ONE-A SHALL INCLUDE ANY
 OUTSTANDING PHASED-IN INCREASES ACCRUED PRIOR TO THE EFFECTIVE  DATE  OF
 THE  CHAPTER  OF  THE  LAWS  OF  TWO THOUSAND SEVENTEEN WHICH ADDED THIS
 SUBDIVISION PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   1-B. CLASS ONE-A PARCELS SHALL BE ASSESSED IN A METHOD  COMPARABLE  TO
 CLASS ONE PARCELS.
   §  12.  Subdivisions e and f of section 11-208.1 of the administrative
 code of the city of New York, subdivision e  as  amended  by  local  law
 number 41 of the city of New York for the year 1986 and subdivision f as
 amended  by  chapter  385  of  the  laws of 2006, are amended to read as
 follows:
   e. As used in this section, the term "income-producing property" means
 property owned for the purpose of securing an income from  the  property
 itself,  but  shall not include property with an assessed value of forty
 thousand dollars or less, or  residential  property  containing  ten  or
 fewer  dwelling  units or property classified in class one, ONE-A or two
 as defined in article eighteen of the real property tax  law  containing
 six or fewer dwelling units and one retail store.
   f.  Except  in  accordance  with proper judicial order or as otherwise
 provided by law, it shall be unlawful for the commissioner, any  officer
 or  employee  of  the  department,  the  president  or a commissioner or
 employee of the tax commission, any person engaged or  retained  by  the
 department  or  the  tax commission on an independent contract basis, or
 any person, who, pursuant to this section, is permitted to  inspect  any
 income and expense statement or to whom a copy, an abstract or a portion
 of  any  such  statement  is  furnished, to divulge or make known in any
 manner except as provided in this  subdivision,  the  amount  of  income
 and/or  expense  or  any  particulars set forth or disclosed in any such
 statement required under this section. The commissioner,  the  president
 of the tax commission, or any commissioner or officer or employee of the
 department or the tax commission charged with the custody of such state-
 ments  shall not be required to produce any income and expense statement
 or evidence of anything contained in them in any action or proceeding in
 any court, except on behalf of the department  or  the  tax  commission.
 Nothing  herein  shall be construed to prohibit the delivery to an owner
 or his or her duly authorized representative of a certified copy of  any
 statement  filed  by  such owner pursuant to this section or to prohibit
 the publication of statistics so classified as to prevent the  identifi-
 cation  of  particular statements and the items thereof, or making known
 aggregate income and expense information disclosed with respect to prop-
 erty classified as class four as defined in article eighteen of the real
 property tax law without identifying information about individual  leas-
 es,  or  making  known  a range as determined by the commissioner within
 which the income and expenses of a property classified as CLASS ONE-A OR
 class two falls, or the inspection by the legal representatives  of  the
 department  or  of  the tax commission of the statement of any owner who
 shall bring an action to correct the assessment. Any  violation  of  the
 provisions of this subdivision shall be punished by a fine not exceeding
 one thousand dollars or by imprisonment not exceeding one year, or both,
 at  the  discretion  of  the court, and if the offender be an officer or
 employee of the department or the tax commission, the offender shall  be
 dismissed from office.

 S. 1408                             9
 
   §  13.  Subdivision  a of section 11-238 of the administrative code of
 the city of New York, as amended by local law number 27 of the  city  of
 New York for the year 2006, is amended to read as follows:
   a.  Imposition  of  surcharge. A real property tax surcharge is hereby
 imposed on class one AND CLASS ONE-A property,  as  defined  in  section
 eighteen  hundred  two  of  the  real property tax law, excluding vacant
 land, that provides rental income and is not the  primary  residence  of
 the  owner  or  owners of such class one OR CLASS ONE-A property, or the
 primary residence of the parent or child of such owner or owners, in  an
 amount  equal  to zero percent of the net real property taxes for fiscal
 years beginning on or after July first, two thousand  six.  As  used  in
 this  section,  "net  real  property  tax"  means  the real property tax
 assessed on class one property after  deduction  for  any  exemption  or
 abatement received pursuant to the real property tax law or this title.
   §  14. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of
 the administrative code of the city of New  York, subdivisions  a,  a-1,
 a-2  and  a-3  as amended and subdivisions a-4 and a-5 as added by local
 law number 15 of the city of New York for the year 2011, are amended  to
 read as follows:
   a.  A  tax  lien  or  tax  liens on a property or any component of the
 amount thereof may be sold by the city as authorized by subdivision b of
 this section, when such tax lien or tax liens shall have remained unpaid
 in whole or in part for one year, provided, however, that a tax lien  or
 tax  liens  on  any  class one property or on class [two] ONE-A property
 [that is a residential condominium or residential cooperative], as  such
 classes  of  property are defined in subdivision one of section eighteen
 hundred two of the real property tax law, may be sold by the  city  only
 when the real property tax component of such tax lien or tax liens shall
 have remained unpaid in whole or in part for three years or, in the case
 of  any  class  two  residential  property  owned by a company organized
 pursuant to article XI of the state private housing finance law [that is
 not a residential condominium or a  residential  cooperative],  as  such
 class  of  property  is  defined  in subdivision one of section eighteen
 hundred two of the real property tax law, for two years, and  equals  or
 exceeds  the  sum  of five thousand dollars or, in the case of abandoned
 class one property or abandoned class [two] ONE-A property  [that  is  a
 residential   condominium  or  residential  cooperative],  for  eighteen
 months, and after  such  sale,  shall  be  transferred,  in  the  manner
 provided  by  this chapter, and provided, further, however, that (i) the
 real property tax component of such tax lien may not be sold pursuant to
 this subdivision on any residential real property in class one  that  is
 receiving  an exemption pursuant to section 11-245.3 or 11-245.4 of this
 title, or pursuant to section four hundred fifty-eight of the real prop-
 erty tax law with respect  to  real  property  purchased  with  payments
 received  as prisoner of war compensation from the United States govern-
 ment, or pursuant to paragraph (b) or (c) of subdivision two of  section
 four  hundred  fifty-eight-a  of the real property tax law, or where the
 owner of such residential real property in class one is receiving  bene-
 fits  in  accordance  with department of finance memorandum 05-3, or any
 successor memorandum thereto, relating to active duty  military  person-
 nel,  or  where the owner of such residential real property in class one
 has been allowed a credit pursuant to  subsection  (e)  of  section  six
 hundred  six  of  the tax law for the calendar year in which the date of
 the first publication, pursuant to subdivision a of  section  11-320  of
 this  chapter,  of  the  notice of sale, occurs or for the calendar year
 immediately preceding such date and  (ii)  the  sewer  rents  component,

 S. 1408                            10
 
 sewer surcharges component or water rents component of such tax lien may
 not  be  sold pursuant to this subdivision on any one family residential
 real property in class one or on any two  or  three  family  residential
 real  property  in  class one that is receiving an exemption pursuant to
 section 11-245.3 or 11-245.4 of this title, or pursuant to section  four
 hundred  fifty-eight  of  the real property tax law with respect to real
 property purchased with payments received as  prisoner  of  war  compen-
 sation  from  the United States government, or pursuant to paragraph (b)
 or (c) of subdivision two of section four hundred fifty-eight-a  of  the
 real  property  tax  law,  or where the owner of any two or three family
 residential real property in class one is receiving benefits in  accord-
 ance  with department of finance memorandum 05-3, or any successor memo-
 randum thereto, relating to active duty military personnel, or where the
 owner of any two or three family residential real property in class  one
 has  been  allowed  a  credit  pursuant to subsection (e) of section six
 hundred six of the tax law for the calendar year in which  the  date  of
 the  first  publication,  pursuant to subdivision a of section 11-320 of
 this chapter, of the notice of sale, occurs or  for  the  calendar  year
 immediately preceding such date. A tax lien or tax liens on any property
 classified as a class two property, except [a class two property that is
 a  residential  condominium  or residential cooperative, or] a class two
 residential property owned by a company organized pursuant to article XI
 of the state private housing finance law  [that  is  not  a  residential
 condominium  or  a residential cooperative], or class three property, as
 such classes of property are defined in subdivision one of section eigh-
 teen hundred two of the real property tax law, shall not be sold by  the
 city  unless  such  tax  lien  or  tax liens include a real property tax
 component as of the date of the first publication, pursuant to  subdivi-
 sion  a  of  section  11-320  of  this  chapter,  of the notice of sale.
 Notwithstanding any provision of this subdivision to the  contrary,  any
 such  tax lien or tax liens that remain unpaid in whole or in part after
 such date may be sold regardless of whether such tax lien or  tax  liens
 include  a  real  property  tax  component. A tax lien or tax liens on a
 property classified as a class four property, as such class of  property
 is  defined  in  subdivision  one of section eighteen hundred two of the
 real property tax law, shall not be sold by the  city  unless  such  tax
 lien  or  tax liens include a real property tax component or sewer rents
 component or sewer surcharges component  or  water  rents  component  or
 emergency  repair charges component, where such emergency repair charges
 accrued on or after January first, two thousand six and are made a  lien
 pursuant  to  section  27-2144 of this code, as of the date of the first
 publication, pursuant to subdivision a of section 11-320 of  this  chap-
 ter,  of the notice of sale, provided, however, that any tax lien or tax
 liens that remain unpaid in whole or in part after such date may be sold
 regardless of whether such tax lien or tax liens include a real property
 tax component, sewer rents component, sewer surcharges component,  water
 rents  component  or emergency repair charges component. For purposes of
 this subdivision, the words "real property tax"  shall  not  include  an
 assessment or charge upon property imposed pursuant to section 25-411 of
 the  administrative  code.  A  sale  of  a  tax  lien or tax liens shall
 include, in addition to such lien or liens that have remained unpaid  in
 whole or in part for one year, or, in the case of any class one property
 or  class  [two]  ONE-A  property  [that is a residential condominium or
 residential cooperative], when the real property tax component  of  such
 lien  or  liens has remained unpaid in whole or in part for three years,
 or, in the case of any class two residential property owned by a company

 S. 1408                            11
 
 organized pursuant to article XI of the state  private  housing  finance
 law  [that  is  not  a  residential condominium or a residential cooper-
 ative], when the real property tax component of such lien or  liens  has
 remained unpaid in whole or in part for two years, and equals or exceeds
 the  sum  of five thousand dollars, any taxes, assessments, sewer rents,
 sewer surcharges, water rents, any other charges that are  made  a  lien
 subject  to  the provisions of this chapter, the costs of any advertise-
 ments and notices given pursuant to this chapter, any other charges that
 are due and payable, a surcharge pursuant  to  section  11-332  of  this
 chapter,  and  interest  and  penalties thereon or such component of the
 amount thereof as shall be determined by the  commissioner  of  finance.
 The  commissioner  of  finance may promulgate rules defining "abandoned"
 property, as such term is used in this subdivision.
   a-1. A subsequent tax lien or tax liens on a property or any component
 of the amount thereof may be sold by the city pursuant to this  chapter,
 provided, however, that notwithstanding any provision in this chapter to
 the  contrary,  such  tax  lien  or  tax liens may be sold regardless of
 whether such tax lien or tax liens have remained unpaid in whole  or  in
 part  for one year and, notwithstanding any provision in this chapter to
 the contrary, in the case of any class one property or class [two] ONE-A
 property [that is a residential condominium or residential  cooperative]
 or,  beginning  January  first,  two thousand twelve, in the case of any
 class two residential property owned by a company organized pursuant  to
 article XI of the state private housing finance law [that is not a resi-
 dential  condominium or a residential cooperative], such tax lien or tax
 liens may be sold if the real property tax component of such tax lien or
 tax liens has remained unpaid in whole or in  part  for  one  year,  and
 provided,  further, however, that (i) the real property tax component of
 such tax lien may not be sold pursuant to this subdivision on any  resi-
 dential real property in class one that is receiving an exemption pursu-
 ant  to  section  11-245.3  or  11-245.4  of  this title, or pursuant to
 section four hundred fifty-eight of  the  real  property  tax  law  with
 respect to real property purchased with payments received as prisoner of
 war compensation from the United States government, or pursuant to para-
 graph   (b)   or   (c)  of  subdivision  two  of  section  four  hundred
 fifty-eight-a of the real property tax law, or where the owner  of  such
 residential  real property in class one is receiving benefits in accord-
 ance with department of finance memorandum 05-3, or any successor  memo-
 randum thereto, relating to active duty military personnel, or where the
 owner  of such residential real property in class one has been allowed a
 credit pursuant to subsection (e) of section six hundred six of the  tax
 law  for  the  calendar year in which the date of the first publication,
 pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
 notice  of  sale,  occurs or for the calendar year immediately preceding
 such date and (ii) the sewer rents component, sewer surcharges component
 or water rents component of such tax lien may not be  sold  pursuant  to
 this  subdivision  on  any one family residential real property in class
 one or on any two or three family residential real property in class one
 that is receiving an exemption pursuant to section 11-245.3 or  11-245.4
 of  this  title,  or pursuant to section four hundred fifty-eight of the
 real property tax law with  respect  to  real  property  purchased  with
 payments received as prisoner of war compensation from the United States
 government,  or  pursuant  to paragraph (b) or (c) of subdivision two of
 section four hundred fifty-eight-a of the  real  property  tax  law,  or
 where  the owner of any two or three family residential real property in
 class one is receiving benefits in accordance with department of finance

 S. 1408                            12
 
 memorandum 05-3, or any successor memorandum thereto, relating to active
 duty military personnel, or where the owner of any two or  three  family
 residential  real property in class one has been allowed a credit pursu-
 ant  to subsection (e) of section six hundred six of the tax law for the
 calendar year in which the date of the first  publication,  pursuant  to
 subdivision  a of section 11-320 of this chapter, of the notice of sale,
 occurs or for the calendar year immediately  preceding  such  date.  For
 purposes  of  this  subdivision,  the  term  "subsequent tax lien or tax
 liens" shall mean any tax lien or tax liens on property that become such
 on or after the date of sale of any tax lien or tax liens on such  prop-
 erty  that  have  been  sold pursuant to this chapter, provided that the
 prior tax lien or tax liens remain unpaid as of the date  of  the  first
 publication,  pursuant  to subdivision a of section 11-320 of this chap-
 ter, of the notice of sale of the subsequent tax lien or tax liens.    A
 subsequent  tax  lien or tax liens on any property classified as a class
 two property, except [a class two property that is a residential  condo-
 minium  or residential cooperative, or] a class two residential property
 owned by a company organized pursuant to article XI of the state private
 housing finance law [that is not a residential condominium or a residen-
 tial cooperative], or class three property, as such classes of  property
 are  defined  in  subdivision one of section eighteen hundred two of the
 real property tax law, shall not be sold by the  city  unless  such  tax
 lien  or  tax liens include a real property tax component as of the date
 of the first publication, pursuant to subdivision a of section 11-320 of
 this chapter, of the notice of sale. Notwithstanding  any  provision  of
 this  subdivision  to  the contrary, any such tax lien or tax liens that
 remain unpaid in whole or in part after such date may be sold regardless
 of whether such tax lien or tax liens include a real property tax compo-
 nent. A subsequent tax lien or tax liens on a property classified  as  a
 class four property, as such class of property is defined in subdivision
 one  of section eighteen hundred two of the real property tax law, shall
 not be sold by the city unless such tax lien or tax liens include a real
 property tax component or sewer  rents  component  or  sewer  surcharges
 component  or  water  rents component or emergency repair charges compo-
 nent, where such emergency repair charges accrued on  or  after  January
 first,  two thousand six and are made a lien pursuant to section 27-2144
 of this code, as of the date  of  the  first  publication,  pursuant  to
 subdivision  a of section 11-320 of this chapter, of the notice of sale,
 provided, however, that any tax lien or tax liens that remain unpaid  in
 whole  or in part after such date may be sold regardless of whether such
 tax lien or tax liens include a real property tax component, sewer rents
 component, sewer surcharges component, water rents component or emergen-
 cy repair charges component. For purposes of this subdivision, the words
 "real property tax" shall not include an assessment or charge upon prop-
 erty imposed pursuant to section  25-411  of  the  administrative  code.
 Nothing  in  this  subdivision  shall  be  deemed  to  limit  the rights
 conferred by section 11-332 of this chapter on the holder of a tax  lien
 certificate with respect to a subsequent tax lien.
   a-2.  In  addition to any sale authorized pursuant to subdivision a or
 subdivision a-1 of this section and  notwithstanding  any  provision  of
 this  chapter to the contrary, beginning on December first, two thousand
 seven, the water rents, sewer rents and sewer surcharges  components  of
 any  tax  lien  on  any class of real property, as such real property is
 classified in subdivision one of section eighteen  hundred  two  of  the
 real property tax law, may be sold by the city pursuant to this chapter,
 where  such  water  rents,  sewer rents or sewer surcharges component of

 S. 1408                            13

 such tax lien, as of the date of  the  first  publication,  pursuant  to
 subdivision  a of section 11-320 of this chapter, of the notice of sale:
 (i) shall have remained unpaid in whole or in part for one year and (ii)
 equals or exceeds the sum of one thousand dollars or, beginning on March
 first, two thousand eleven, in the case of any two or three family resi-
 dential  real property in class one, for one year, and equals or exceeds
 the sum of two thousand dollars, or, beginning  on  January  first,  two
 thousand twelve, in the case of any class two residential property owned
 by a company organized pursuant to article XI of the state private hous-
 ing  finance law [that is not a residential condominium or a residential
 cooperative], as such class of property is defined in subdivision one of
 section eighteen hundred two of the  real  property  tax  law,  for  two
 years, and equals to exceeds the sum of five thousand dollars; provided,
 however,  that  such water rents, sewer rents or sewer surcharges compo-
 nent of such tax lien may not be sold pursuant to  this  subdivision  on
 any  one  family residential real property in class one or on any two or
 three family residential real property in class one that is receiving an
 exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
 pursuant  to  section  four hundred fifty-eight of the real property tax
 law with respect to real property purchased with  payments  received  as
 prisoner  of  war  compensation  from  the  United States government, or
 pursuant to paragraph (b) or (c) of  subdivision  two  of  section  four
 hundred  fifty-eight-a  of the real property tax law, or where the owner
 of any two or three family residential real property  in  class  one  is
 receiving  benefits  in accordance with department of finance memorandum
 05-3, or any successor memorandum thereto, relating to active duty mili-
 tary personnel, or where the owner of any two or three  family  residen-
 tial  real  property  in class one has been allowed a credit pursuant to
 subsection (e) of section six hundred six of the tax law for the  calen-
 dar  year in which the date of the first publication, pursuant to subdi-
 vision a of section 11-320 of this  chapter,  of  the  notice  of  sale,
 occurs  or  for the calendar year immediately preceding such date. After
 such sale, any such water rents, sewer rents or sewer surcharges  compo-
 nent  of such tax lien may be transferred in the manner provided by this
 chapter.
   a-3. In addition to any sale authorized pursuant to subdivision  a  or
 subdivision  a-1  of  this  section and notwithstanding any provision of
 this chapter to the contrary, beginning on December first, two  thousand
 seven, a subsequent tax lien on any class of real property, as such real
 property  is  classified  in subdivision one of section eighteen hundred
 two of the real property tax law, may be sold by the  city  pursuant  to
 this  chapter,  regardless  of  whether such subsequent tax lien, or any
 component of the amount thereof, shall have remained unpaid in whole  or
 in  part  for  one  year,  and regardless of whether such subsequent tax
 lien, or any component of the amount thereof, equals or exceeds the  sum
 of  one thousand dollars or beginning on March first, two thousand elev-
 en, in the case of any two or three family residential real property  in
 class  one,  a  subsequent  tax lien on such property may be sold by the
 city pursuant to this chapter, regardless of whether such subsequent tax
 lien, or any component of the amount thereof, shall have remained unpaid
 in whole or in part for one year, and regardless of whether such  subse-
 quent  tax  lien,  or  any  component  of  the amount thereof, equals or
 exceeds the sum of two thousand dollars, or, beginning on January first,
 two thousand twelve, in the case of any class two  residential  property
 owned by a company organized pursuant to article XI of the state private
 housing finance law [that is not a residential condominium or a residen-

 S. 1408                            14

 tial  cooperative],  as such class of property is defined in subdivision
 one of section eighteen hundred two of the  real  property  tax  law,  a
 subsequent tax lien on such property may be sold by the city pursuant to
 this  chapter,  regardless  of  whether such subsequent tax lien, or any
 component of the amount thereof, shall have remained unpaid in whole  or
 in  part  for  two  years, and regardless of whether such subsequent tax
 lien, or any component of the amount thereof, equals or exceeds the  sum
 of  five  thousand  dollars; provided, however, that such subsequent tax
 lien may not be sold pursuant to this  subdivision  on  any  one  family
 residential  real  property  in  class one or on any two or three family
 residential real property in class one that is  receiving  an  exemption
 pursuant  to  section 11-245.3 or 11-245.4 of this title, or pursuant to
 section four hundred fifty-eight of  the  real  property  tax  law  with
 respect to real property purchased with payments received as prisoner of
 war compensation from the United States government, or pursuant to para-
 graph   (b)   or   (c)  of  subdivision  two  of  section  four  hundred
 fifty-eight-a of the real property tax law, or where the  owner  of  any
 two  or three family residential real property in class one is receiving
 benefits in accordance with department of finance  memorandum  05-3,  or
 any  successor  memorandum  thereto,  relating  to  active duty military
 personnel, or where the owner of any two  or  three  family  residential
 real  property  in  class  one  has  been  allowed  a credit pursuant to
 subsection (e) of section six hundred six of the tax law for the  calen-
 dar  year in which the date of the first publication, pursuant to subdi-
 vision a of section 11-320 of this  chapter,  of  the  notice  of  sale,
 occurs  or  for the calendar year immediately preceding such date. After
 such sale, any such subsequent tax lien, or any component of the  amount
 thereof,  may be transferred in the manner provided by this chapter. For
 purposes of this subdivision, the term "subsequent tax lien" shall  mean
 the  water  rents,  sewer rents or sewer surcharges component of any tax
 lien on property that becomes such on or after the date of sale  of  any
 water  rents,  sewer rents or sewer surcharges component of any tax lien
 on such property that has been sold pursuant to this  chapter,  provided
 that  the  prior  tax  lien  remains  unpaid as of the date of the first
 publication, pursuant to subdivision a of section 11-320 of  this  chap-
 ter,  of  the notice of sale of the subsequent tax lien. Nothing in this
 subdivision shall be deemed to limit the  rights  conferred  by  section
 11-332  of  this  chapter  on  the holder of a tax lien certificate with
 respect to a subsequent tax lien.
   a-4. In addition to any sale authorized  pursuant  to  subdivision  a,
 a-1,  a-2  or  a-3  of this section and notwithstanding any provision of
 this chapter to the contrary, beginning on  March  first,  two  thousand
 eleven,  the  emergency repair charges component or alternative enforce-
 ment expenses and fees component, where such  emergency  repair  charges
 accrued  on or after January first, two thousand six and are made a lien
 pursuant to section 27-2144 of this  code,  or  where  such  alternative
 enforcement  expenses  and  fees  are  made  a  lien pursuant to section
 27-2153 of this code, of any tax lien on any class of real property,  as
 such  real  property  is  defined in subdivision one of section eighteen
 hundred two of the real property tax law, may be sold by the city pursu-
 ant to this chapter, where such emergency repair  charges  component  or
 alternative enforcement expenses and fees component of such tax lien, as
 of  the  date  of  the  first  publication, pursuant to subdivision a of
 section 11-320 of this chapter, of the notice of sale:  (i)  shall  have
 remained  unpaid  in  whole  or in part for one year, and (ii) equals or
 exceeds the sum of one thousand dollars or, beginning on January  first,

 S. 1408                            15
 
 two  thousand  twelve, in the case of any class two residential property
 owned by a company organized pursuant to article XI of the state private
 housing finance law [that is not a residential condominium or a residen-
 tial  cooperative],  as such class of property is defined in subdivision
 one of section eighteen hundred two of the real property  tax  law,  for
 two  years,  and  equals  or  exceeds  the sum of five thousand dollars;
 provided, however, that  such  emergency  repair  charges  component  or
 alternative enforcement expenses and fees component of such tax lien may
 not be sold pursuant to this subdivision on any one, two or three family
 residential  real  property in class one, except a three family residen-
 tial property in class  one  where  such  property  is  subject  to  the
 provisions  of section 27-2153 of this code and is not the primary resi-
 dence of the owner.  After such sale, any such emergency repair  charges
 component or alternative enforcement expenses and fees component of such
 tax lien may be transferred in the manner provided by this chapter.
   a-5.  In  addition  to  any sale authorized pursuant to subdivision a,
 a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
 this  chapter  to  the  contrary, beginning on March first, two thousand
 eleven, a subsequent tax lien on any class of real property,  or  begin-
 ning  on January first, two thousand twelve in the case of any class two
 residential property owned by a company organized pursuant to article XI
 of the state private housing finance law  [that  is  not  a  residential
 condominium or a residential cooperative], a subsequent tax lien on such
 property,  may  be sold by the city pursuant to this chapter, regardless
 of the length of time such subsequent tax lien, or any component of  the
 amount thereof, shall have remained unpaid, and regardless of the amount
 of  such  subsequent  tax lien. After such sale, any such subsequent tax
 lien, or any component of the amount thereof, may be transferred in  the
 manner  provided  by this chapter. For purposes of this subdivision, the
 term "subsequent tax lien"  shall  mean  the  emergency  repair  charges
 component  or alternative enforcement expenses and fees component, where
 such emergency repair charges accrued on or  after  January  first,  two
 thousand  six  and  are  made a lien pursuant to section 27-2144 of this
 code, or where such alternative enforcement expenses and fees are made a
 lien pursuant to section 27-2153 of this code, of any tax lien on  prop-
 erty  that  becomes  such  on or after the date of sale of any emergency
 repair charges component or alternative enforcement  expenses  and  fees
 component,  of any tax lien on such property that has been sold pursuant
 to this chapter, provided that the prior tax lien remains unpaid  as  of
 the  date of the first publication, pursuant to subdivision a of section
 11-320 of this chapter, of the notice of  sale  of  the  subsequent  tax
 lien.  Nothing  in  this subdivision shall be deemed to limit the rights
 conferred by section 11-332 of this chapter on the holder of a tax  lien
 certificate with respect to a subsequent tax lien.
   §  15.   Subparagraph (i) of paragraph 2 of subdivision b and subpara-
 graph (ii) of paragraph 1 of subdivision h  of  section  11-320  of  the
 administrative  code  of the city of New York, subparagraph (i) of para-
 graph 2 of subdivision b as amended by local law number 147 of the  city
 of  New  York  for the year 2013 and subparagraph (ii) of paragraph 1 of
 subdivision h as added by local law number 15 of the city  of  New  York
 for the year 2011, are amended to read as follows:
   (i)  Such  notices  shall  also  include, with respect to any property
 owner in class one, CLASS ONE-A or class two, as such classes of proper-
 ty are defined in subdivision one of section eighteen hundred two of the
 real property tax law, an exemption eligibility checklist. The exemption
 eligibility checklist shall also be posted on the website of the depart-

 S. 1408                            16
 
 ment no later than the first business day after March fifteenth of every
 year prior to the date of sale, and shall continue to be posted on  such
 website  until  ten  days prior to the date of sale. Within ten business
 days of receipt of a completed exemption eligibility checklist from such
 property  owner,  provided that such receipt occurs prior to the date of
 sale of any tax lien or tax liens on his or her property, the department
 of finance shall review such checklist to determine, based on the infor-
 mation provided by the property owner, whether such property owner could
 be eligible for any exemption, credit or other benefit that would  enti-
 tle  them  to  be  excluded  from a tax lien sale and, if the department
 determines that such property owner  could  be  eligible  for  any  such
 exemption,  credit  or  other benefit, shall mail such property owner an
 application for the appropriate exemption, credit or other benefit.  If,
 within  twenty  business  days  of  the  date the department mailed such
 application, the department has not  received  a  completed  application
 from  such property owner, the department shall mail such property owner
 a second application, and shall telephone the  property  owner,  if  the
 property owner has included his or her telephone number on the exemption
 eligibility checklist.
   (ii)  all  class two residential property owned by a company organized
 pursuant to article XI of the state private housing finance law [that is
 not a residential condominium or a residential cooperative] on which any
 tax lien has been sold pursuant to subdivision a, a-2 or a-4 of  section
 11-319 of this title.
   §  16. Subdivision (a) of section 11-354 of the administrative code of
 the city of New York, as amended by local law number 37 of the  city  of
 New York for the year 1996, is amended to read as follows:
   (a) Notwithstanding any other provision of law and notwithstanding any
 omission  to  hold  a tax lien sale, whenever any tax, assessment, sewer
 rent, sewer surcharge, water rent,  any  charge  that  is  made  a  lien
 subject to the provisions of this chapter or chapter four of this title,
 or  interest and penalties thereon, has been due and unpaid for a period
 of at least one year from the date on which the tax, assessment or other
 legal charge represented thereby became a lien, or in the  case  of  any
 class one property or any class [two] ONE-A property [that is a residen-
 tial condominium or residential cooperative], as such classes of proper-
 ty are defined in subdivision one of section eighteen hundred two of the
 real  property tax law, or in the case of a multiple dwelling owned by a
 company organized pursuant to article XI of the private housing  finance
 law with the consent and approval of the department of housing preserva-
 tion and development, for a period of at least three years from the date
 on  which  the  tax, assessment or other legal charge became a lien, the
 city, as owner of a tax lien, may maintain  an  action  in  the  supreme
 court  to  foreclose  such  lien.  Such  action shall be governed by the
 procedures set forth in section 11-335 of this chapter; provided, howev-
 er, that such parcel shall only  be  sold  to  the  highest  responsible
 bidder. Such purchaser shall be deemed qualified as a responsible bidder
 pursuant to such criteria as are established in rules promulgated by the
 commissioner  of  finance  after  consultation  with the commissioner of
 housing preservation and development.
   § 17. The opening paragraph of subdivision 4 of section 11-401 of  the
 administrative  code  of  the  city  of  New York, as added by local law
 number 37 of the city of New York for the year 1996, is amended to  read
 as follows:
   "Distressed  property."  Any parcel of class one, CLASS ONE-A or class
 two real property that is subject to a tax lien or liens with a lien  or

 S. 1408                            17
 
 liens  to  value  ratio,  as  determined by the commissioner of finance,
 equal to or greater than fifteen percent  and  that  meets  one  of  the
 following two criteria:
   §  18.  Subdivisions a and b of section 11-401.1 of the administrative
 code of the city of New York, as added by local law  number  37  of  the
 city of New York for the year 1996, are amended to read as follows:
   a. The commissioner of finance shall, not less than sixty days preced-
 ing  the  date  of  the  sale  of a tax lien or tax liens, submit to the
 commissioner of housing preservation and development  a  description  by
 block  and  lot,  or by such other identification as the commissioner of
 finance may deem appropriate, of any parcel of class one, CLASS ONE-A or
 class two real property on which there is a tax lien that may  be  fore-
 closed  by the city. The commissioner of housing preservation and devel-
 opment shall determine, and direct the commissioner of finance, not less
 than ten days preceding the date of the sale of a tax lien or tax liens,
 whether any such parcel is a distressed property as defined in  subdivi-
 sion four of section 11-401 of this chapter. Any tax lien on a parcel so
 determined  to  be  a  distressed property shall not be included in such
 sale. In connection with a subsequent sale of a tax lien or  tax  liens,
 the  commissioner of finance may, not less than sixty days preceding the
 date of the sale, resubmit to the commissioner of  housing  preservation
 and  development  a description by block and lot, or by such other iden-
 tification as the commissioner of finance may deem appropriate,  of  any
 parcel  of  class  one,  CLASS ONE-A or class two real property that was
 previously determined to be a distressed property pursuant to this para-
 graph and on which there is a tax lien that  may  be  included  in  such
 sale.  The  commissioner  of  housing preservation and development shall
 determine, and direct the commissioner of finance,  not  less  than  ten
 days  preceding  the  date  of  the  sale, whether such parcel remains a
 distressed property. If the commissioner  of  housing  preservation  and
 development  determines  that  the  parcel is not a distressed property,
 then the tax lien on the parcel may be included in the sale.
   b. The commissioner of housing preservation and development may  peri-
 odically  review whether a parcel of class one, CLASS ONE-A or class two
 real property that is subject to subdivision c of this section or subdi-
 vision j of section 11-412.1 of this chapter remains a distressed  prop-
 erty. If the commissioner determines that the parcel is not a distressed
 property  as defined in subdivision four of section 11-401 of this chap-
 ter, then the parcel shall not be subject to such subdivisions.
   § 19. Subdivision b of section 11-404 of the  administrative  code  of
 the  city  of New York, as amended by local law number 37 of the city of
 New York for the year 1996, is amended to read as follows:
   b. A tax lien on any class one property or any class [two] ONE-A prop-
 erty [that is a residential condominium or residential cooperative],  as
 such classes of property are defined in subdivision one of section eigh-
 teen  hundred  two  of  the  real  property tax law, and on any multiple
 dwelling owned by a company organized pursuant  to  article  XI  of  the
 private housing finance law with the consent and approval of the depart-
 ment of housing preservation and development, shall not be foreclosed in
 the manner provided in this chapter until such tax lien has been due and
 unpaid  for  a period of at least three years from the date on which the
 tax, assessment or other legal charge represented thereby became a lien.
   § 20. Paragraph 5 of subdivision c of section 11-405 of  the  adminis-
 trative code of the city of New York, as added by local law number 37 of
 the city of New York for the year 1996, is amended to read as follows:

 S. 1408                            18
 
   (5)  Notwithstanding  paragraph one, two or three of this subdivision,
 with respect to installment agreements duly made, executed and filed  on
 or after the date on which this paragraph takes effect, the commissioner
 of  finance  may  also  exclude  or thereafter remove from such list any
 parcel  of class one, CLASS ONE-A or class two real property, other than
 a parcel described in paragraph four of this subdivision, as to which an
 agreement has been duly made, executed and filed with such  commissioner
 for  the  payment  of  the  delinquent taxes, assessments or other legal
 charges, and the interest and penalties thereon,  in  installments.  The
 first  installment thereof shall be paid upon the filing of the install-
 ment agreement with the commissioner and shall be in an amount equal  to
 not  less  than  fifteen  percent of the total amount of such delinquent
 taxes, assessments or other legal charges and the interest and penalties
 thereon. The remaining installments, which shall be twice the number  of
 unpaid  quarters  of  real  estate  taxes or the equivalent thereof, but
 which shall in no event exceed thirty-two in number,  shall  be  payable
 quarterly on the first days of July, October, January and April. For the
 purposes  of  calculating  the  number  of  such remaining installments,
 unpaid real estate taxes that are due and payable on other than a  quar-
 terly basis shall be deemed to be payable on a quarterly basis.
   § 21. Section 581 of the real property tax law is REPEALED.
   §  22.  Subdivision  1  of  section 339-y of the real property law, as
 amended by chapter 218 of the laws of 1986, subparagraph (ii)  of  para-
 graph  (d)  as amended by chapter 223 of the laws of 1989, paragraph (e)
 as added by chapter 135 of the laws of 1996 and paragraph (f)  as  added
 by chapter 293 of the laws of 1997, is amended to read as follows:
   1.  (a)  With  respect  to all property submitted to the provisions of
 this article other than property which is the  subject  of  a  qualified
 leasehold  condominium, each unit and its common interest, not including
 any personal property, shall be deemed to  be  a  parcel  and  shall  be
 subject  to  separate  assessment  and  taxation by each assessing unit,
 school district, special district, county or other taxing unit, for  all
 types of taxes authorized by law including but not limited to special ad
 valorem  levies and special assessments, except that the foregoing shall
 not apply to a unit held under lease or sublease unless the  declaration
 requires  the  unit  owner  to  pay  all taxes attributable to his unit.
 Neither the building, the property nor any of the common elements  shall
 be deemed to be a parcel.
   (b)  [In  no  event shall the aggregate of the assessment of the units
 plus their common interests exceed the total valuation of  the  property
 were the property assessed as a parcel.
   (c)]  For  the  purposes  of  this and the next succeeding section the
 terms "assessing unit",  "assessment",  "parcel",  "special  ad  valorem
 levy",  "special assessment", "special district", "taxation" and "taxes"
 shall have the meanings specified in section one hundred two of the real
 property tax law.
   [(d) The provisions of paragraph (b) of  this  subdivision  shall  not
 apply to such real property classified within:
   (i) on and after January first, nineteen hundred eighty-six, class one
 of  section one thousand eight hundred two of the real property tax law;
 or
   (ii) on and after January first,  nineteen  hundred  eighty-four,  the
 homestead  class  of  an  approved  assessing unit which has adopted the
 provisions of section one thousand nine hundred three of the real  prop-
 erty  tax law, or the homestead class of the portion outside an approved
 assessing unit of an eligible split school district  which  has  adopted

 S. 1408                            19

 the  provisions of section nineteen hundred three-a of the real property
 tax law; provided, however, that, in an approved  assessing  unit  which
 adopted the provisions of section one thousand nine hundred three of the
 real  property  tax law prior to the effective date of this subdivision,
 paragraph (b) of this subdivision shall apply to all such real  property
 (i) which is classified within the homestead class pursuant to paragraph
 one  of  subdivision (e) of section one thousand nine hundred one of the
 real property tax law and (ii) which, regardless of classification,  was
 on  the  assessment roll prior to the effective date of this subdivision
 unless the governing body of such approved assessing  unit  provides  by
 local  law  adopted  after a public hearing, prior to the taxable status
 date of such assessing unit next occurring after December  thirty-first,
 nineteen  hundred  eighty-three, that such paragraph (b) shall not apply
 to such real property to which this clause  applies.  Provided  further,
 however,  real  property  subject to the provisions of this subparagraph
 shall be assessed pursuant to subdivision two of  section  five  hundred
 eighty-one of the real property tax law.
   (e)] (C) On the first assessment roll with a taxable status date on or
 after the effective date of a declaration filed with the recording offi-
 cer  and  on  every assessment roll thereafter, the assessor shall enter
 each unit as a parcel, as provided in paragraph (a) of this subdivision,
 based upon the condition and ownership of each such unit on  the  appro-
 priate  valuation  and  taxable status dates. Units owned by a developer
 may be entered as a single parcel with a parcel description  correspond-
 ing  to  the  entire development, including the land under such develop-
 ment, and excluding those units appearing  separately.  Upon  the  first
 assessment roll where each unit is separately assessed, only an individ-
 ual unit and its common interest shall constitute a parcel.
   [(f)  The  provisions  of  paragraph (b) of this subdivision shall not
 apply to a converted condominium unit in a municipal  corporation  other
 than  a  special assessing unit, which has adopted, prior to the taxable
 status date of the assessment roll upon which its taxes will be  levied,
 a  local  law or, for a school district, a resolution providing that the
 provisions of paragraph (b) of this subdivision shall  not  apply  to  a
 converted  condominium  unit  within  that  municipal  corporation.    A
 converted condominium unit for purposes of this paragraph shall  mean  a
 dwelling  unit held in condominium form of ownership that has previously
 been on an assessment roll as a dwelling unit in other than  condominium
 form of ownership, and has not been previously subject to the provisions
 of paragraph (b) of this subdivision.]
   § 23. This act shall take effect on the first of January next succeed-
 ing  the  date  on  which  it shall have become a law and shall apply to
 assessment rolls prepared pursuant to a taxable status date occurring on
 or after such date; provided, however, that effective  immediately,  the
 addition,  amendment  and/or  repeal of any rule or regulation necessary
 for the implementation of this act on its effective date are  authorized
 and directed to be made and completed on or before such effective date.