S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    228
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by M. of A. BRAUNSTEIN, WEPRIN -- Multi-Sponsored by -- M. of
   A.  RAMOS  -- read once and referred to the Committee on Real Property
   Taxation
 
 AN ACT to amend the real property tax law, the  administrative  code  of
   the  city  of  New  York and the New York city charter, in relation to
   establishing a new classification of properties for properties held in
   condominium and cooperative form for assessment purposes
 
   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.
                                                            LBD02934-01-9

 A. 228                              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  two:  [all other] residential real property HELD IN COOPERATIVE
         OR CONDOMINIUM FORM OF OWNERSHIP  which  is  not  designated  as
         class  one[,  except hotels and motels and other similar commer-
         cial 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 two, [or] class three[.], OR CLASS FIVE;
   CLASS FIVE: ALL OTHER RESIDENTIAL REAL PROPERTY WHICH  IS  NOT  DESIG-
         NATED  AS  CLASS ONE, EXCEPT HOTELS AND MOTELS AND OTHER SIMILAR
         COMMERCIAL PROPERTY, OR CLASS TWO.
   § 2. The opening paragraph of subdivision 2 of  section  1805  of  the
 real property tax law, as amended by chapter 586 of the laws of 1992, is
 amended to read as follows:
   The assessment roll of a special assessing unit wholly contained with-
 in  a city shall identify those parcels classified in class two OR CLASS
 FIVE which have fewer than eleven residential units. The assessor of any
 such special assessing unit shall not increase  the  assessment  of  any
 parcel  so  identified  in  any  one  year,  as measured from the actual

 A. 228                              3
 
 assessment on the previous year's assessment roll, by  more  than  eight
 percent  and  shall  not  increase  such  assessment by more than thirty
 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-one  provided  that,  if  such
 parcel would not have been subject to the provisions of this subdivision
 in nineteen hundred eighty-one had this subdivision then been in effect,
 the  first  such  five-year period shall be measured from the first year
 after nineteen hundred eighty-one in which this subdivision  applied  to
 such  parcel  or  would have applied to such parcel had this subdivision
 been in effect in such year.
   § 3. Subdivision 6 of section 1805 of the real property  tax  law,  as
 added by chapter 711 of the laws of 2005, is amended to read as follows:
   6.  Notwithstanding  any  provision  of  law  to  the contrary, in any
 special assessing unit wholly contained within a  city,  beginning  with
 the  assessment  roll completed in two thousand five and for each subse-
 quent assessment roll, the assessor shall not increase the assessment of
 any existing property classified in class two OR  CLASS  FIVE  that  has
 fewer  than  eleven  residential  units, with respect to any increase in
 value attributable to additions to or improvements of such property that
 were not reflected on the assessment roll for a previous year,  by  more
 than one-third of the amount that such assessment would increase, in the
 absence  of  this  subdivision,  with  respect  to any increase in value
 attributable to additions to or improvements of such property that  were
 not  reflected on the assessment roll for a previous year. Notwithstand-
 ing the provisions of subdivision five of this section, the remainder of
 the increase in value attributable to  such  additions  or  improvements
 that were not reflected on the assessment roll for a previous year shall
 be  subject  to the limitations on increases provided in subdivision two
 of this section. This subdivision shall not apply to the construction of
 a new building or structure. This subdivision shall not apply where,  as
 a  result  of such additions to or improvements of the existing property
 CLASSIFIED IN CLASS FIVE, there are more than ten residential  units  in
 such property.
   § 4. 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 to
 read as follows:
   (f)  "Property"  means real property designated as class two, pursuant
 to section eighteen hundred two of this chapter[, held  in  the  cooper-
 ative or condominium form of ownership].
   § 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 two [or], class
 four OR CLASS FIVE 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 two  [or],  class
 four  OR  CLASS  FIVE  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.

 A. 228                              4
 
   § 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, two, three [or], four OR FIVE.
   §  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
 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  2",  "Class  3"  [or],  "Class  4" OR "CLASS 5", 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 peti-
 tioners application is reviewed or heard. Such applicants determinations
 shall  contain the statement: "If you are dissatisfied with the determi-
 nation 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
 applicant to receive the same shall  not  affect  the  validity  of  the
 assessment.
   § 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, two, three [or], four OR FIVE.
   § 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:

 A. 228                              5
 
   (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, two, three [and], four AND  FIVE  as
 defined in subdivision one of section eighteen hundred two of this chap-
 ter.
   §  11.  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 [or], two OR
 FIVE 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  two  OR
 CLASS  FIVE 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.
   § 12. 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 subdivision a-5 as added by local law  number
 15  of  the  city  of  New York for the year 2011 and subdivision a-4 as

 A. 228                              6
 
 amended by local law number 4 of the city of New York for the year 2017,
 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 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] FIVE 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 property [that is  a  resi-
 dential  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 subdivi-
 sion  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 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 such 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 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 chap-
 ter, 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 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 calendar year in which the date of  the  first  publication,
 pursuant  to  subdivision  a  of  section 11-320 of this chapter, of the

 A. 228                              7

 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 prop-
 erty  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, OR A CLASS FIVE PROP-
 ERTY  OWNED  BY  A COMPANY ORGANIZED PURSUANT TO ARTICLE XI OF THE STATE
 PRIVATE HOUSING FINANCE LAW 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 publi-
 cation, 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 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 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 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] THIS 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 property [that is a  residential  condo-
 minium 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]  FIVE  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], 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
 advertisements 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

 A. 228                              8

 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 proper-
 ty  [that  is  a residential condominium or residential cooperative] or,
 beginning January first, two thousand twelve, in the case of  any  class
 [two] FIVE 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
 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-

 A. 228                              9

 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,  OR A CLASS FIVE PROPERTY
 OWNED BY A COMPANY ORGANIZED PURSUANT TO ARTICLE XI OF THE STATE PRIVATE
 HOUSING FINANCE LAW, as such classes of property are defined in subdivi-
 sion 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  component.  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 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  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 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] THIS code. Nothing in this subdi-
 vision  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
 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] FIVE residential proper-
 ty 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 subdi-
 vision 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  water  rents,  sewer  rents  or  sewer

 A. 228                             10
 
 surcharges 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  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 any two or three family residential real property in class one
 is receiving benefits in accordance with department of finance  memoran-
 dum  05-3,  or any successor memorandum thereto, relating to active duty
 military personnel, or where the owner of any two or three family  resi-
 dential 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] FIVE 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, 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 subse-
 quent 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

 A. 228                             11
 
 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 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,
 two thousand twelve, in the case of any  class  [two]  FIVE  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; provided, however, that such emergency repair charges component
 or alternative enforcement expenses and fees component of such tax  lien
 may  only  be sold pursuant to this subdivision on any one, two or three
 family residential real property in class one, where such  one,  two  or
 three  family residential property in class one 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. 228                             12
 
   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] FIVE 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], 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 compo-
 nent  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 Janu-
 ary 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 property 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.
   § 13. 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  [or], class two OR CLASS FIVE, as such classes of
 property 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  department  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 information  provided  by  the  property  owner,
 whether  such property owner could be eligible for any exemption, credit
 or other benefit that would entitle 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

 A. 228                             13
 
 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]  FIVE  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.
   § 14. 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  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, or in the case of a CLASS  FIVE  PROPERTY  THAT  IS  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 preservation 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  main-
 tain  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,  however, 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.
   § 15. Subdivision 3 and the opening  paragraph  of  subdivision  4  of
 section  11-401  of  the  administrative  code  of the city of New York,
 subdivision 3 as added by local law number 37 of the city  of  New  York
 for  the year 1996 and the opening paragraph of subdivision 4 as amended
 by local law number 152 of the city of New York for the year  2017,  are
 amended to read as follows:
   3.  "Class."  Any class of real property defined in subdivision one of
 section eighteen hundred two of the  real  property  tax  law,  and  any
 subclassification  of  class  two OR CLASS FIVE real property where such
 subclassification is established by rule of the commissioner of  finance
 promulgated pursuant to this subdivision.
   Any  parcel  of class one [or],  class two OR CLASS FIVE real property
 that is subject to a tax lien or liens that result from an environmental
 control board judgment against the owner of such parcel for  a  building
 code violation with a lien or liens to value ratio, as determined by the
 commissioner  of  finance,  equal  to  or greater than 25 percent or any
 parcel of class one or class two real property that is subject to a  tax
 lien  or liens with a lien or 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:

 A. 228                             14
 
   §  16.  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  or  class  two
 real property on which there is a tax lien that may be foreclosed by the
 city.  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 of a tax lien or tax liens, whether
 any such parcel is a distressed property as defined in subdivision  four
 of  section  11-401  of this chapter. Any tax lien on a parcel so deter-
 mined 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 identifica-
 tion as the commissioner of finance may deem appropriate, of any  parcel
 of class one [or], class two OR CLASS FIVE real property that was previ-
 ously  determined to be a distressed property pursuant to this paragraph
 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 [or], class two OR CLASS
 FIVE real property that is subject to subdivision c of this  section  or
 subdivision  j  of section 11-412.1 of this chapter remains a distressed
 property. If the commissioner  determines  that  the  parcel  is  not  a
 distressed  property as defined in subdivision four of section 11-401 of
 this chapter, then the parcel shall not be subject to such subdivisions.
   § 17. 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  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, and on any CLASS FIVE PROPERTY
 THAT  IS  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 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.
   §  18.  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:
   (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

 A. 228                             15
 
 of finance may also exclude or thereafter  remove  from  such  list  any
 parcel  of  class one [or], class two OR CLASS FIVE 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 install-
 ments.  The  first  installment thereof shall be paid upon the filing of
 the installment 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 inter-
 est and penalties thereon. The remaining installments,  which  shall  be
 twice  the  number of unpaid quarters of real estate taxes or the equiv-
 alent 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  quarterly  basis  shall  be deemed to be payable on a quarterly
 basis.
   § 19. Subparagraph (iii) of paragraph 3 of subdivision  i  of  section
 11-409  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:
   (iii) With respect to any parcel of class one [or], class two OR CLASS
 FIVE real property, other than a parcel described in subparagraph (i) or
 (ii)  of this paragraph, such agreement shall provide for the payment in
 installments of the delinquent taxes, assessments and other legal charg-
 es, and the interest and penalties thereon, due and owing as of the date
 on which such agreement is  requested.  The  first  installment  thereof
 shall  be  paid  upon  the  filing of the installment agreement with the
 commissioner of finance and shall be in an amount at least equal to,  at
 the applicant's election, either thirty-five percent or fifty percent of
 the  total  amount  of such delinquent taxes, assessments or other legal
 charges and the interest and penalties thereon. The  remaining  install-
 ments, which shall be twice the number of unpaid quarters of real estate
 taxes  or  the  equivalent  thereof,  but which shall in no event exceed
 twenty in number, shall be payable quarterly on the first days of  July,
 October,  January and April, together with interest at the rate or rates
 determined as provided in subparagraph (iv) of this paragraph.  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.
   §  20.  The  section heading of section 11-412.1 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, is amended to read as follows:
   Special procedures relating to final judgment and release of class one
 [and], class two OR CLASS FIVE real property.
   § 21. Paragraph 1 of subdivision b, subdivisions c and d, paragraphs 1
 and  4  of  subdivision  e, and subdivisions f, g, h, i and j of section
 11-412.1 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:
   (1)  The  court  shall  make a final judgment authorizing the award of
 possession of any parcel of class one [or], class two OR CLASS FIVE real
 property described in the list of delinquent taxes not redeemed or with-
 drawn as provided in this chapter and as to which no  answer  is  inter-
 posed as provided herein, and authorizing the commissioner of finance to

 A. 228                             16
 
 prepare, execute and cause to be recorded a deed conveying either to the
 city  or to a third party deemed qualified and designated by the commis-
 sioner of housing preservation and development full and  complete  title
 to  such  lands.  Any  such  conveyance to a third party shall be for an
 existing use.
   c. Following the expiration of the  four-month  period  prescribed  in
 subdivision  d of this section, but not more than eight months after the
 date on which, pursuant to subdivision b  of  this  section,  the  final
 judgment  authorizing  the  award of possession of a parcel of class one
 [or], class two OR CLASS FIVE real property was entered, the commission-
 er of finance may execute a deed, pursuant  to  subdivision  b  of  this
 section,  with  respect  to  such parcel. The owner of said parcel shall
 continue to have  all  of  the  rights,  liabilities,  responsibilities,
 duties  and  obligations  of an owner of such parcel, including, but not
 limited to, maintaining such parcel in compliance with the housing main-
 tenance, building and fire codes, and all other applicable laws,  unless
 and  until  the commissioner of finance has prepared and executed a deed
 conveying to the city or to a third party full  and  complete  title  to
 such  parcel.  Upon  the  execution  of such deed, the city or the third
 party shall be seized of an estate in fee simple absolute in  such  land
 and all persons, including the state of New York, infants, incompetents,
 absentees and non-residents who may have had any right, title, interest,
 claim,  lien  or  equity  of  redemption  in or upon such lands shall be
 barred and forever foreclosed of all such right, title, interest, claim,
 lien or equity of redemption, except as otherwise provided  in  subdivi-
 sions  e and f of this section. The appointment and tenure of receivers,
 trustees or any other persons, including  administrators  under  article
 seven-A  of  the real property actions and proceedings law, appointed by
 an order of a court to manage real property, shall terminate when  title
 to  such  property  vests  in  the city or a third party pursuant to the
 provisions of this chapter.  After  such  termination,  said  receivers,
 trustees  or  administrators  shall  be  accountable  to the courts that
 appointed them for the faithful performance  of  their  fiduciary  obli-
 gations  during  the  term  of their appointment and to the city or such
 third party for any rents and income received by  them  for  any  period
 subsequent to the date of the vesting of title in the city or such third
 party.
   If  the  city  serves  a  tenant in possession of a dwelling unit with
 notice of termination of tenancy on grounds  other  than  nonpayment  of
 rent,  the acceptance of rent for the first forty-five days after termi-
 nation of tenancy by anyone other than an  employee  of  the  department
 designated by the department to receive such rent shall not be deemed or
 construed  as  a  waiver of the city's right to initiate and prosecute a
 proceeding to terminate the tenancy for good cause.
   d. Within four months after the date on which, pursuant to subdivision
 b  of  this  section,  the  final  judgment  authorizing  the  award  of
 possession  of  a parcel of class one [or], class two OR CLASS FIVE real
 property was entered, any person claiming to have an  interest  in  such
 parcel  shall  have  the  right to make a payment to the commissioner of
 finance consisting of all taxes, assessments  and  other  legal  charges
 owing on said parcel, the lawful interest thereon to the date of payment
 and  a penalty of five percent of said payment of taxes, assessments and
 other legal charges and interest, which penalty may not exceed one thou-
 sand dollars. Such payment shall be made in cash or by certified or bank
 check. Within such four-month period, such interested  person  may  also
 request  an installment agreement from the commissioner of finance. Such

 A. 228                             17
 
 agreement shall require, in addition to  full  payment  of  the  penalty
 specified  in  this  subdivision  at  the time such agreement is entered
 into, the payment at such time of a first  installment  equal  to  fifty
 percent  of  all  taxes,  assessments  and  other legal charges, and the
 lawful interest thereon, then owing on such parcel, and the  payment  of
 the  balance  of  such  taxes,  assessments  and other legal charges and
 interest in four equal quarterly installments together with all  current
 taxes, assessments and other legal charges that accrue during such peri-
 od. Upon receipt of payment in full of the amount specified in the first
 sentence  of  this subdivision, the commissioner of finance shall direct
 the corporation counsel to prepare and cause  to  be  entered  an  order
 discontinuing  the  in  rem  tax foreclosure action as to said property,
 cancelling the notice of pendency of such action as to said property and
 vacating and setting aside the final judgment. Upon the execution of  an
 installment  agreement  and  payment of the amounts due at the time such
 agreement is executed as provided in this subdivision, the  commissioner
 of  finance shall direct the corporation counsel to prepare and cause to
 be entered an order vacating and setting aside the final  judgment.  The
 entry  of either such order shall restore all parties, including owners,
 mortgagees and any and all lienors,  receivers  and  administrators  and
 encumbrancers,  to  the  status  they held immediately before such final
 judgment was entered.   Where the commissioner of  finance  approves  an
 application  requesting an installment agreement pursuant to this subdi-
 vision, the order vacating and setting aside the  final  judgment  shall
 provide  that  in  the  event of any default as to the payment of either
 quarterly installments or current  taxes,  assessments  or  other  legal
 charges  during  the  term  of  such  agreement, all payments under said
 agreement shall be forfeited and the  corporation  counsel,  immediately
 upon  notification by the commissioner of finance of such default, shall
 cause to be entered as to such property a supplemental judgment of fore-
 closure in the in  rem  action  which  authorizes  the  commissioner  of
 finance  to  prepare,  execute and cause to be recorded a deed conveying
 either to the city or to a third party full and complete title  to  such
 lands.  Upon  the entry of such supplemental judgment, the provisions of
 subdivisions c through i of this section shall apply in the same  manner
 as  such  subdivisions  would  have applied had no payment been made nor
 installment agreement executed during the four-month period specified in
 this subdivision.
   1. If the commissioner of finance has prepared, executed and caused to
 be recorded a deed conveying to the city full and complete  title  to  a
 parcel of class one [or], class two OR CLASS FIVE real property acquired
 by  in  rem  tax  foreclosure, the city's interest in such parcel may be
 released pursuant to this subdivision on the application  of  any  party
 who  has  an interest in said parcel as either owner, mortgagee, lienor,
 or encumbrancer at the time of the city's acquisition thereof where such
 application is made at any time up to sixteen months from  the  date  on
 which  the  deed  by  which  the  city acquired title to said parcel was
 recorded.
   4. The provisions contained in subdivision g of section 11-424 of this
 chapter shall govern such an application, except as follows:
   (a)  where  such  provisions  are  inconsistent  with  the  provisions
 contained in this subdivision, the provisions contained in this subdivi-
 sion shall govern such application; and
   (b)  where  the  in  rem  foreclosure  release  board denies a written
 request for an installment agreement that was filed in  connection  with
 an  application  for release of the city's interest in a parcel of class

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 one [or], class two OR CLASS FIVE real property and such application was
 filed within thirty days of the date of the city's  acquisition  of  the
 property  sought  to  be  released,  the  board  may, in its discretion,
 authorize  a release of the city's interest, provided that the applicant
 thereafter pays all the amounts required to be paid pursuant to subdivi-
 sion d of section 11-424 of this chapter within thirty days of the  date
 on which a letter requesting such payment is mailed or delivered to such
 applicant.
   f. If the commissioner of finance has prepared, executed and caused to
 be  recorded  a  deed conveying to the city full and complete title to a
 parcel of class one [or], class two OR CLASS FIVE real property acquired
 by in rem tax foreclosure and such parcel is entitled  to  an  exemption
 under any of the provisions of article four of the real property tax law
 during all or part of the period covered by the tax items appearing on a
 list  of  delinquent  taxes,  the  owner  of such parcel may apply for a
 release of the  city's  interest  in  such  exempt  property  under  the
 provisions  of  subdivision  e of this section during the period of time
 set forth in paragraph one of such subdivision  and  for  an  additional
 period up to ten years from the date on which the deed by which the city
 acquired  title  to  said property was recorded. The application of such
 owner shall be accompanied by the nonrefundable fee  required  by  para-
 graph  four of subdivision b of section 11-424 of this chapter and shall
 contain, in addition to the statements, searches and proofs required  by
 subdivision  e  of this section, a statement that an exemption under the
 real property tax law is being  claimed.  Such  application  shall  also
 state  either  that  it is accompanied by the written certificate of the
 comptroller setting forth the precise period during which said property,
 while owned by such application, and during the period after the  city's
 acquisition up to the date of the certificate if said property was still
 being used for an exempt purpose after said acquisition, was entitled to
 an  exemption  and the exact nature and extent of such exemption or that
 an application for such written certificate  has  been  filed  with  the
 comptroller.  On issuing such written certificate, the comptroller shall
 cancel those tax items which have accrued during the period  covered  by
 the  certificate to the extent the applicant is entitled to an exemption
 as set forth in the certificate. A release of the city's interest may be
 authorized only at the discretion of  the  in  rem  foreclosure  release
 board and, except as otherwise provided in paragraph four of subdivision
 e of this section, subject to all the restrictions set forth in subdivi-
 sion  g of section 11-424 of this chapter. A release to an exempt appli-
 cant shall be effected only after said applicant has  paid  all  of  the
 amounts  required  to be paid by subdivision d of section 11-424 of this
 chapter, except for those tax items which have been canceled,  in  whole
 or  in  part,  pursuant  to the comptroller's certificate, within thirty
 days of the date on which the letter requesting  payment  is  mailed  or
 delivered to the applicant.
   g. If the commissioner of finance has prepared, executed and caused to
 be  recorded  a  deed conveying to the city or to a third party full and
 complete title to a parcel of class one [or], class two  OR  CLASS  FIVE
 real  property  acquired  by  in  rem  tax  foreclosure,  the provisions
 contained in subdivisions f and i of section 11-424 of this chapter  for
 the  release  of  property  so  acquired  shall not be available. If the
 commissioner of finance has prepared, executed and caused to be recorded
 a deed conveying to a third party full and complete title to a parcel of
 class one or class two real property acquired by in rem tax foreclosure,

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 the provisions contained in subdivisions e and f of this section for the
 release of property so acquired shall not be available.
   h.  Every  deed given pursuant to the provisions of this section shall
 be presumptive evidence that the action and all proceedings therein  and
 all  proceedings  prior thereto from and including the assessment of the
 lands affected and all notices required  by  law  were  regular  and  in
 accordance  with  all  provisions  of  law  relating thereto. After four
 months from the date of entry of  the  final  judgment  authorizing  the
 award  of possession of any parcel of class one [or], class two OR CLASS
 FIVE real property pursuant to  the  provisions  of  this  section,  the
 presumption shall be conclusive. No action to set aside such deed may be
 maintained  unless  the  action is commenced and a notice of pendency of
 the action is filed in the office of the property county clerk prior  to
 the  time  that  the presumption becomes conclusive as aforesaid. Should
 any lawsuit or proceeding be commenced to set aside a deed conveying  to
 a  third  party a parcel of class one [or], class two OR CLASS FIVE real
 property pursuant to the provisions of this section,  such  third  party
 shall send to the corporation counsel within ten days of their receipt a
 copy  of  any  papers  served  on  such  third  party in such lawsuit or
 proceeding.
   i. If the commissioner of finance does not execute a deed conveying to
 the city or to a third party a parcel of class one [or],  class  two  OR
 CLASS  FIVE  real  property within eight months after the entry of final
 judgment authorizing the award of possession of such parcel pursuant  to
 subdivision  b of this section, the commissioner of finance shall direct
 the corporation counsel to prepare and cause  to  be  entered  an  order
 discontinuing the in rem foreclosure action as to said property, cancel-
 ing the notice of pendency of such action as to said property and vacat-
 ing and setting aside said final judgment. The entry of such order shall
 restore  all  parties,  including  owners,  mortgagees  and  any and all
 lienors, receivers and administrators and encumbrancers, to  the  status
 they held immediately before such final judgment was entered.
   j.  If  the  commissioner  of finance directs the corporation counsel,
 pursuant to subdivision i of this section, to prepare and  cause  to  be
 entered  an  order  discontinuing  the  in  rem  foreclosure action with
 respect to a parcel of class one [or], class  two  OR  CLASS  FIVE  real
 property  determined  to  be  distressed pursuant to section 11-401.1 of
 this chapter, the commissioner of housing preservation  and  development
 shall  evaluate  the  parcel  determined  to be distressed and take such
 action as he or she deems appropriate under the  programs,  existing  at
 the time of such evaluation, that are designed to encourage the rehabil-
 itation and preservation of existing housing, and shall monitor or cause
 to  be monitored the status of the property. The commissioner of housing
 preservation and development shall maintain  a  register  of  properties
 determined to be distressed.
   §  22.  Section 11-412.2 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:
   §  11-412.2 Council review of conveyance to a third party. The commis-
 sioner of finance shall, prior to the execution of a deed conveying full
 and complete title of any parcel of class one [or], class two  OR  CLASS
 FIVE real property to a third party pursuant to subdivision c of section
 11-412.1 of this chapter, notify the council of the proposed conveyance.
 Within  forty-five  days  of  such  notification, the council may act by
 local law disapproving the proposed conveyance. In the event the council
 does not act by local law within such forty-five day period, the council

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 shall be deemed to have approved the proposed  conveyance.  During  such
 forty-five day period or, if the city council acts by local law pursuant
 to  this section, during the period of time from the notification of the
 council  to  the  presentation to the mayor of such local law and during
 any additional period of time prescribed in section 37 of  the  charter,
 the  eight-month  period  provided  in  subdivisions  c and i of section
 11-412.1 of this chapter shall be tolled.
   § 23. Paragraph 1 of subdivision a of section 163 of the New York city
 charter, as amended by local law number 77 of the city of New  York  for
 the year 1984, is amended to read as follows:
   1.  "Class  designation"  shall  mean  the  determination, pursuant to
 section eighteen hundred two of the real property tax  law,  of  whether
 real property is included in class one, two, three [or], four OR FIVE.
   §  24.  Paragraph  1 of subdivision a of section 164-b of the New York
 city charter, as added by local law number 11 of the city  of  New  York
 for the year 1984, is amended to read as follows:
   1. "Class designation" shall mean the determination, pursuant to arti-
 cle  eighteen  of the real property tax law, of whether real property is
 included in class one, two, three [or], four OR FIVE.
   § 25. 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 if local law number 152 of
 the city of New York for the year 2017 shall not have taken effect on or
 before such date then section fifteen of this act shall take  effect  on
 the  same  date  and in the same manner as such local law of the city of
 New York for the year 2017, takes effect; provided, however, that effec-
 tive 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.