S T A T E O F N E W Y O R K
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3478
2019-2020 Regular Sessions
I N S E N A T E
February 7, 2019
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Introduced by Sen. CARLUCCI -- 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, in relation to authorizing
certain municipalities to add unpaid housing code violation penalties,
costs and fines to such municipalities' annual tax levy in accordance
with applicable law
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 903 to read as follows:
§ 903. COLLECTION OF UNPAID HOUSING CODE VIOLATION PENALTIES; LEVY. 1.
AUTHORIZATION. IN ADDITION TO AND NOT IN LIMITATION OF ANY POWER OTHER-
WISE GRANTED BY LAW, MUNICIPALITIES IN THE COUNTY OF ROCKLAND, INCLUDING
THE COUNTY OF ROCKLAND, ARE HEREBY AUTHORIZED TO COLLECT ANY UNPAID
HOUSING, BUILDING AND FIRE CODE VIOLATION PENALTIES, COSTS AND FINES
THROUGH PLACEMENT BY THE MUNICIPALITY'S COMMISSIONER OF FINANCE, TREAS-
URER, OR OTHER PUBLIC OFFICIAL CHARGED WITH THE DUTIES OF OVERSEEING TAX
COLLECTIONS ON THE MUNICIPALITY'S ANNUAL TAX LEVY IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION.
2. ELIGIBILITY. IN ORDER TO BE ELIGIBLE FOR PLACEMENT ON THE MUNICI-
PALITY'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
MUNICIPALITY AND RECORDED BY THE COUNTY CLERK, AS CERTIFIED BY THE
MUNICIPAL COUNSEL TO THE COMMISSIONER OF FINANCE, TREASURER OR OTHER
PUBLIC OFFICIAL CHARGED WITH THE DUTIES OF OVERSEEING TAX COLLECTIONS
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 MUNICIPALITY'S TAX LEVY.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06174-01-9
S. 3478 2
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 MUNICIPAL COUNSEL TO THE COMMIS-
SIONER OF FINANCE, TREASURER OR OTHER PUBLIC OFFICIAL CHARGED WITH THE
DUTIES OF OVERSEEING TAX COLLECTIONS SHALL BE SET DOWN IN THE ANNUAL TAX
LEVY UNDER THE HEADING UNCOLLECTED FINES AND PENALTIES AND IN ACCORDING
WITH THIS SECTION SHALL BE LEVIED, ENFORCED AND COLLECTED IN THE SAME
MANNER, BY THE SAME PROCEEDINGS, AT THE SAME TIME, UNDER THE SAME PENAL-
TIES AND HAVING THE SAME LIEN UPON THE PROPERTY ASSESSED AS THE GENERAL
MUNICIPAL TAX AND AS A PART THEREOF.
5. NOTICE. THE MUNICIPALITY 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 MUNICIPAL OFFICE IN CHARGE OF RECEIVING PAYMENTS.
6. TAX YEAR. ANY UNPAID CODE VIOLATIONS SHALL BE PLACED ON THE TAX
ROLL THE MUNICIPALITY 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 MUNICIPALITY 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 A MUNICIPALITY 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 PURSUANT
TO SECTION ELEVEN HUNDRED TEN OF THIS CHAPTER, 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. IN THE VILLAGE OF UPPER NYACK,
THE TIME PERIOD FOR REDEMPTION SHALL BE THE SAME TIME PERIOD SET FORTH
BY THE VILLAGE OF UPPER NYACK FOR THE VILLAGE'S ANNUAL TAX LEVY.
(B) THE DETERMINATION OF WHETHER OR NOT THE CODE VIOLATIONS HAVE BEEN
CURED SHALL BE MADE BY THE LOCAL MUNICIPAL 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 MUNICIPALITY'S ZONING BOARD OF APPEALS OR OTHER LOCAL
ADMINISTRATIVE BODY AS PROVIDED FOR IN LOCAL LAW. THE FINAL DETERMI-
NATION MADE BY THE ADMINISTRATIVE BODY SHALL BE REVIEWABLE PURSUANT TO
ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
S. 3478 3
(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 PURSUANT TO SECTION ELEVEN HUNDRED TEN OF THIS
CHAPTER 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. IN THE VILLAGE OF UPPER NYACK THE TIME PERIOD FOR REDEMP-
TION SHALL BE THE SAME TIME PERIOD SET FORTH BY THE VILLAGE OF UPPER
NYACK FOR THE VILLAGE'S ANNUAL TAX LEVY.
(B) THE OWNER SHALL HAVE THE RIGHT TO PAY THE FULL BALANCE PRIOR TO
THE EXPIRATION OF THE PERIOD FOR REDEMPTION PURSUANT TO SECTION ELEVEN
HUNDRED TEN OF THIS CHAPTER IN ORDER TO REDEEM THE PROPERTY. IN THE
VILLAGE OF UPPER NYACK THE TIME PERIOD FOR REDEMPTION SHALL BE THE SAME
TIME PERIOD SET FORTH BY THE VILLAGE OF UPPER NYACK FOR THE VILLAGE'S
ANNUAL TAX LEVY.
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
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 MUNICIPALITY. 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 MUNICIPALITIES.
13. BALANCE DUE. IF AFTER AN AUCTION A BALANCE IS DUE FOR CODE
VIOLATIONS, THE MUNICIPALITY MAY PROCEED WITH ANY ACTION AGAINST THE
FORMER OWNER PURSUANT TO APPLICABLE LAWS.
14. EXCLUSIONS. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY
MUNICIPALITY THAT SELLS THEIR TAX LIENS IN A TAX LIEN SALE.
§ 2. This act shall take effect immediately.
