S T A T E   O F   N E W   Y O R K
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                                   10738
 
                           I N  A S S E M B L Y
 
                               July 8, 2020
                                ___________
 
 Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Fahy) --
   read once and referred to the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in  relation  to  authorizing
   the  city  of  Albany  to add unpaid housing code violation penalties,
   costs and fines to such city's annual tax levy

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 901-a to read as follows:
   § 901-A. COLLECTION OF UNPAID HOUSING CODE VIOLATION PENALTIES IN  THE
 CITY  OF ALBANY; LEVY. 1. AUTHORIZATION. IN ADDITION TO AND NOT IN LIMI-
 TATION OF ANY POWER OTHERWISE GRANTED BY LAW,  THE  CITY  OF  ALBANY  IS
 HEREBY  AUTHORIZED TO COLLECT ANY UNPAID HOUSING, BUILDING AND FIRE CODE
 VIOLATION PENALTIES, COSTS AND FINES THROUGH  PLACEMENT  BY  THE  CITY'S
 TREASURER  ON  THE  CITY'S  ANNUAL  TAX  LEVY  IN  ACCORDANCE  WITH  THE
 PROVISIONS OF THIS SECTION.
   2. ELIGIBILITY. IN ORDER TO BE ELIGIBLE FOR PLACEMENT ON THE  CITY  OF
 ALBANY'S ANNUAL TAX LEVY SUCH UNPAID CODE VIOLATION PENALTIES, COSTS AND
 FINES  SHALL  HAVE  BEEN ADJUDICATED AND IMPOSED THROUGH A JUDGMENT IN A
 COURT OF COMPETENT JURISDICTION ON AN OWNER OF REAL PROPERTY WITHIN  THE
 CITY AND RECORDED BY THE COUNTY CLERK, AS CERTIFIED BY THE CITY'S CORPO-
 RATION  COUNSEL  AND  HAVE  REMAINED UNPAID FOR ONE YEAR AFTER THE FINAL
 ADJUDICATION AND EXHAUSTION OF ALL APPEALS RELATING TO THE IMPOSITION OF
 THE FINES FOR A CODE VIOLATION PRECEDING THE PLACEMENT ON THE CITY'S TAX
 LEVY.
   3. MINIMUM AMOUNT OWED. TO QUALIFY FOR PLACEMENT ON THE TAX  LEVY  THE
 AMOUNT  OWED FOR UNPAID CODE VIOLATIONS MUST BE AT LEAST FIVE PERCENT OF
 THE AMOUNT OF THE TAX ASSESSED VALUE OF THE PROPERTY.
   4. LEVY. SUCH CODE VIOLATION PENALTY, COST OR FINE AS SET FORTH  IN  A
 COPY  OF  THE JUDGMENT CERTIFIED BY THE CORPORATION COUNSEL SHALL BE SET
 DOWN IN THE ANNUAL TAX LEVY UNDER  THE  HEADING  UNCOLLECTED  FINES  AND
 PENALTIES  AND IN ACCORDANCE WITH THIS SECTION SHALL BE LEVIED, ENFORCED
 AND COLLECTED IN THE SAME MANNER, BY THE SAME PROCEEDINGS, AT  THE  SAME
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16840-01-0

 A. 10738                            2
 
 TIME, UNDER THE SAME PENALTIES AND HAVING THE SAME LIEN UPON THE PROPER-
 TY ASSESSED AS THE GENERAL CITY TAX AND AS A PART THEREOF.
   5.  NOTICE. THE CITY OF ALBANY SHALL NOTIFY ALL OWNERS OR KNOWN INTER-
 ESTED PARTIES OF RECORD OF THE PLACEMENT OF THE CODE VIOLATIONS  ON  THE
 MUNICIPAL TAX LEVY AS UNCOLLECTED FINES AND PENALTIES WITHIN THIRTY DAYS
 OF PLACEMENT, PURSUANT TO SECTION THREE HUNDRED EIGHT OF THE CIVIL PRAC-
 TICE  LAW  AND RULES. THE NOTICE SHALL INCLUDE THE DATE OR DATES OF SUCH
 VIOLATIONS, THE DESCRIPTION OF THE VIOLATIONS, THE AMOUNT OWED, A STATE-
 MENT DETAILING THE FORECLOSURE PROCESS THAT WILL OCCUR IF THE VIOLATIONS
 REMAIN UNPAID, THE PROCESS TO CLAIM ANY SURPLUS FUNDS  AND  THE  CONTACT
 INFORMATION FOR THE CITY'S OFFICE IN CHARGE OF RECEIVING PAYMENTS.
   6.  TAX  YEAR.  ANY  UNPAID CODE VIOLATIONS SHALL BE PLACED ON THE TAX
 ROLL THE CITY OF ALBANY IS CURRENTLY IN AND SHALL NOT  BE  PLACED  ON  A
 LIST, ROLL OR LEVY OF DELINQUENT TAXES.
   7.  OWNER-OCCUPIED. NOTWITHSTANDING ANY OTHER APPLICABLE PROVISIONS OF
 LAW, NOTHING IN THIS SECTION SHALL BE APPLIED TO A RESIDENTIAL  DWELLING
 THAT IS OWNER-OCCUPIED OR IS THE PRIMARY RESIDENCE OF A HOMEOWNER.
   8.  TENANTS.  PRIOR  TO THE PLACEMENT OF ANY PROPERTY WITH UNPAID CODE
 VIOLATIONS ON THE TAX LEVY, THE CITY OF ALBANY SHALL DEVELOP  A  PROGRAM
 TO ASSIST TENANTS RESIDING IN A DWELLING AT RISK FOR TAX FORECLOSURE DUE
 TO UNPAID CODE VIOLATIONS. SUCH PROGRAM SHALL INCLUDE HOUSING COUNSELING
 ASSISTANCE  OR OTHER SUPPORT IN RELOCATING THE TENANTS TO SUITABLE HOUS-
 ING PRIOR TO THE TAX FORECLOSURE.
   9. PAYMENT PLAN. NOTHING IN THIS SECTION SHALL PRECLUDE  AN  OWNER  OR
 LANDLORD  FROM  ENTERING INTO A PAYMENT PLAN WITH THE CITY OF ALBANY FOR
 PAST AMOUNTS DUE FOR CODE VIOLATIONS.
   10. CURING CODE VIOLATIONS. (A) IF ALL OF THE VIOLATIONS FOR WHICH THE
 PENALTIES, FEES AND COSTS HAVE  BEEN  ASSESSED  ARE  CURED,  REMOVED  OR
 CORRECTED PRIOR TO THE EXPIRATION OF THE PERIOD FOR REDEMPTION SET FORTH
 BY THE CITY OF ALBANY FOR THE CITY'S ANNUAL TAX LEVY, THE PROPERTY SHALL
 BE  REMOVED FROM THE LEVY AND AUCTION AND THE BALANCE OF THE AMOUNT OWED
 SHALL BE PLACED AS A LIEN ON THE PROPERTY PURSUANT  TO  APPLICABLE  LAWS
 FOR  DEBT COLLECTION AND AN ACTION FOR FORECLOSURE OF THE PROPERTY SHALL
 NOT BE MAINTAINED FOR THE AMOUNT OWED.
   (B) THE DETERMINATION OF WHETHER OR NOT THE CODE VIOLATIONS HAVE  BEEN
 CURED  SHALL BE MADE BY THE CITY OF ALBANY'S ENFORCING OFFICER IN CHARGE
 OF ENSURING COMPLIANCE WITH APPLICABLE HOUSING, BUILDING, AND FIRE CODES
 SUCH AS A CODE ENFORCEMENT OFFICER. AN APPEAL OF THIS DETERMINATION  MAY
 BE MADE TO THE CITY'S ZONING BOARD OF APPEALS OR OTHER LOCAL ADMINISTRA-
 TIVE  BODY AS PROVIDED FOR IN LOCAL LAW. THE FINAL DETERMINATION MADE BY
 THE ADMINISTRATIVE BODY SHALL BE REVIEWABLE PURSUANT TO  ARTICLE  SEVEN-
 TY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
   (C)  THIS  SECTION  SHALL  NOT  BE  APPLICABLE  TO ANY CAUSE OF ACTION
 BROUGHT FOR MONEY DUE BASED ON THE CURING OF CODE VIOLATIONS  UNDER  ANY
 FORM FOR RECEIVERSHIP OR A MECHANICS LIEN.
   11.  PAYMENT  PRIOR  TO  AUCTION.  (A)  IF  THE  BALANCE OWED FOR CODE
 VIOLATIONS PLACED ON THE TAX LEVY IS PAID PRIOR TO THE EXPIRATION OF THE
 PERIOD FOR REDEMPTION SET FORTH BY THE CITY OF  ALBANY  FOR  THE  CITY'S
 ANNUAL  TAX  LEVY  AND  THERE IS NO BALANCE DUE FOR UNPAID REAL PROPERTY
 TAXES, THE PROPERTY MAY NOT BE AUCTIONED,  AND  THE  PROPERTY  SHALL  BE
 REMOVED FROM THE TAX LEVY.
   (B)  THE  OWNER  SHALL HAVE THE RIGHT TO PAY THE FULL BALANCE PRIOR TO
 THE EXPIRATION OF THE PERIOD FOR REDEMPTION SET FORTH  BY  THE  CITY  OF
 ALBANY FOR THE CITY'S ANNUAL TAX LEVY IN ORDER TO REDEEM THE PROPERTY.
   12.  SURPLUS. ANY SURPLUS FUNDS REMAINING AFTER THE SALE OF A PROPERTY
 AT A TAX FORECLOSURE FOR UNPAID CODE VIOLATIONS SHALL BE RETURNED TO THE

 A. 10738                            3
 
 FORMER OWNER OF THE PROPERTY IN A MANNER PROVIDED UNDER LOCAL LAW.  THIS
 PROVISION  SHALL  NOT APPLY TO A SALE OF A PROPERTY AT A TAX FORECLOSURE
 DUE TO UNPAID TAXES. IF A PROPERTY HAS BOTH UNPAID TAXES AND UNPAID CODE
 VIOLATIONS  ON  THE  SAME TAX LEVY AND IS AUCTIONED AT A TAX FORECLOSURE
 THE AMOUNT OF THE SURPLUS FUNDS RETURNED TO THE FORMER  OWNER  SHALL  BE
 PROPORTIONATE  TO THE AMOUNT OF UNPAID CODE VIOLATIONS OWED IN THE TOTAL
 AMOUNT OF DEBT OWED TO THE CITY OF  ALBANY.  FOR  THE  PURPOSE  OF  THIS
 SECTION,  "SURPLUS FUNDS" SHALL MEAN THE BALANCE OF MONEY RECEIVED AFTER
 AUCTION OF A PROPERTY AT A TAX FORECLOSURE SALE MINUS  THE  AMOUNT  OWED
 FOR  CODE  VIOLATIONS  AND THE COSTS AND ATTORNEYS' FEES INCURRED IN THE
 COLLECTION OF THE FEES BY THE CITY.
   13. BALANCE DUE. IF AFTER  AN  AUCTION  A  BALANCE  IS  DUE  FOR  CODE
 VIOLATIONS,  THE  CITY OF ALBANY MAY PROCEED WITH ANY ACTION AGAINST THE
 FORMER OWNER PURSUANT TO APPLICABLE LAWS.
   14. EXCLUSIONS. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IF  THE
 CITY OF ALBANY SELLS THEIR TAX LIENS IN A TAX LIEN SALE.
   § 2. This act shall take effect immediately.