S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5749
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2019
                                ___________
 
 Introduced  by  Sen.  LIU  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, the  administrative  code  of
   the city of New York and the real property law, in relation to classi-
   fying  properties held in condominium and cooperative form for assess-
   ment purposes  as  class  one-a  properties;  and  to  repeal  certain
   provisions of the real property tax law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1802 of the real property tax law,
 as separately amended by chapters 123 and 529 of the laws of 1990, para-
 graph class one as amended by chapter  332  of  the  laws  of  2008,  is
 amended to read as follows:
   1.  All  real property, for the purposes of this article, in a special
 assessing unit shall be classified as follows:
   Class one: (a) all one, two and three family residential real  proper-
         ty,  including  such  dwellings  used in part for nonresidential
         purposes but which are used primarily for residential  purposes,
         except such property held in cooperative or condominium forms of
         ownership  other  than (i) property defined in subparagraphs (b)
         and (c) of this paragraph and (ii) property  which  contains  no
         more  than  three  dwelling  units  held  in condominium form of
         ownership and which was classified within this class on a previ-
         ous assessment roll;  and  provided  that,  notwithstanding  the
         provisions of paragraph (g) of subdivision twelve of section one
         hundred  two  of  this chapter, a mobile home or a trailer shall
         not be classified within this class unless it is  owner-occupied
         and  separately  assessed; and (b) residential real property not
         more than three stories in height held in  condominium  form  of
         ownership, provided that no dwelling unit therein previously was
         on an assessment roll as a dwelling unit in other than condomin-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07848-02-9

 S. 5749                             2
 
         ium  form  of  ownership;  and  (c)  residential  real  property
         consisting of one family house structures owned by the occupant,
         situated on land held in cooperative ownership by owner  occupi-
         ers,  provided  that; (i) such house structures and land consti-
         tuted bungalow colonies in existence prior to  nineteen  hundred
         forty;  and  (ii)  the land is held in cooperative ownership for
         the sole  purpose  of  maintaining  one  family  residences  for
         members  own  use;  and  (d)  all  vacant  land located within a
         special assessing unit which is a city (i) other than such  land
         in  the borough of Manhattan, provided that any such vacant land
         which is not zoned  residential  must  be  situated  immediately
         adjacent  to  property  improved with a residential structure as
         defined in subparagraphs (a) and (b) of this paragraph, be owned
         by the same owner as such immediately adjacent residential prop-
         erty immediately prior to and since January 1, 1989, and have  a
         total area not exceeding 10,000 square feet; and (ii) located in
         the  borough of Manhattan north of or adjacent to the north side
         of 110th street provided such vacant land was classified  within
         this  class on the assessment roll with a taxable status date of
         January 5, 2008 and the owner of such land has  entered  into  a
         recorded  agreement  with  a  governmental  entity  on or before
         December 31, 2008 requiring construction of  housing  affordable
         to  persons  or  families  of  low income in accordance with the
         provisions of the private housing finance  law.  Notwithstanding
         the foregoing, such vacant land shall be classified according to
         its  use on the assessment roll with a taxable status date imme-
         diately  following  commencement   of   construction,   provided
         further,  that  construction  pursuant  to  an approved plan for
         affordable housing shall commence no  later  than  December  31,
         2010; and (e) all vacant land located within a special assessing
         unit  which  is not a city, provided that such vacant land which
         is not zoned residential must be situated  immediately  adjacent
         to real property defined in subparagraph (a), (b) or (c) of this
         paragraph and be owned by the same person or persons who own the
         real  property defined in such subparagraph immediately prior to
         and since January 1, 2003;
   CLASS ONE-A: ALL OTHER RESIDENTIAL REAL PROPERTY HELD  IN  CONDOMINIUM
         OR  COOPERATIVE  FORM  OF  OWNERSHIP  WHICH IS NOT DESIGNATED AS
         CLASS ONE; THE DEPARTMENT OF FINANCE  OF  ANY  CITY  ENACTING  A
         LOCAL  LAW PURSUANT TO THIS SECTION SHALL RECLASSIFY CLASS ONE-A
         PROPERTIES USED PRIMARILY TO GENERATE  RENTAL  INCOME  TO  CLASS
         TWO.  THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A LOCAL LAW
         PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION  TO  ANY  OTHER
         FUNCTIONS, POWERS AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED
         ON  IT  BY  LAW, THE POWER TO MAKE AND PROMULGATE RULES TO CARRY
         OUT THE PURPOSES OF THIS SECTION INCLUDING, BUT NOT LIMITED  TO,
         RULES  DEFINING  THE  CLASS  ONE-A  PROPERTIES PRIMARILY USED TO
         GENERATE RENTAL INCOME, AND RELATING TO  THE  TIMING,  FORM  AND
         MANNER  OF ANY CERTIFICATION REQUIRED TO BE SUBMITTED UNDER THIS
         SECTION. IF A PROPERTY PREVIOUSLY RECLASSIFIED FROM CLASS  ONE-A
         TO  CLASS  TWO  CEASES  TO  BE USED PRIMARILY TO GENERATE RENTAL
         INCOME, THE DEPARTMENT SHALL RECLASSIFY SUCH PROPERTY  TO  CLASS
         ONE-A.  THE  DEPARTMENT SHALL USE A FIVE-YEAR PERIOD WHEN DETER-
         MINING WHETHER A PROPERTY IS USED PRIMARILY TO  GENERATE  RENTAL
         INCOME;

 S. 5749                             3
 
   Class two: all other residential real property which is not designated
         as  class one OR CLASS ONE-A, except hotels and motels and other
         similar commercial property;
   Class  three:  utility  real  property  and property subject to former
         section four hundred seventy of this chapter;
   Class four: all other real property which is not designated  as  class
         one, CLASS ONE-A, class two, or class three.
   §  1-a.  The  real property tax law is amended by adding a new section
 1803-c to read as follows:
   § 1803-C. CALCULATION OF SHARES.  1. FOR THE CALENDAR YEAR  TWO  THOU-
 SAND  EIGHTEEN,  NOTWITHSTANDING  THE  PROVISIONS  OF  SECTIONS EIGHTEEN
 HUNDRED THREE, EIGHTEEN HUNDRED THREE-A, AND EIGHTEEN HUNDRED THREE-B OF
 THIS ARTICLE TO THE CONTRARY, THE NEW YORK CITY COMMISSIONER OF  FINANCE
 SHALL ESTABLISH A NEW CLASS ONE-A PURSUANT TO SUBDIVISION ONE OF SECTION
 EIGHTEEN  HUNDRED  TWO  OF  THIS  ARTICLE AND SHALL CALCULATE SHARES FOR
 CLASS ONE, CLASS ONE-A, CLASS TWO, CLASS THREE AND CLASS FOUR WHERE  THE
 BASE  YEAR  USED IN THE CALCULATION OF THE CURRENT BASE PROPORTION SHALL
 BE THE 2017 ASSESSMENT ROLL AND THE SUM OF CLASS  ONE-A  AND  CLASS  TWO
 SHALL NOT EXCEED THE PRIOR YEAR ADJUSTED BASE PROPORTION FOR SUCH CLASS-
 ES.
   2. AFTER TWO THOUSAND NINETEEN, ASSESSMENT ROLLS PREPARED ACCORDING TO
 JANUARY  1,  2021, THE ADJUSTED BASE PROPORTIONS FOR CLASS ONE AND CLASS
 ONE-A, SHALL NOT EXCEED EACH CLASS' PRIOR ADJUSTED  BASE  PROPORTION  BY
 MORE THAN FIVE PERCENT.
   3.  IN  A CITY HAVING A POPULATION OF ONE MILLION OR MORE, SUCH CITY'S
 TAX FIXING RESOLUTION SHALL SET A TAX RATE FOR CLASS ONE-A IN  THE  SAME
 MANNER  AS ALL CLASS SHARES ARE CALCULATED PURSUANT TO SECTIONS EIGHTEEN
 HUNDRED THREE, EIGHTEEN HUNDRED THREE-A AND EIGHTEEN HUNDRED THREE-B  OF
 THIS ARTICLE.
   4. THE ASSESSMENT RATIO FOR CLASS ONE-A SHALL BE SIX PERCENT.
   §  2.  Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4
 of section 307-a of the real property tax law, as added by section 1  of
 part  G  of  chapter  63  of  the  laws  of 2003, are amended to read as
 follows:
   1. Generally.  Notwithstanding any provision of any  general,  special
 or  local law to the contrary, any city with a population of one million
 or more is hereby authorized and empowered to adopt and amend local laws
 in accordance with this section imposing an additional  tax  on  certain
 class  one AND CLASS ONE-A properties, as such properties are defined in
 section eighteen hundred two of this chapter, excluding vacant land.
   (c) "Net real property tax" means the real property tax assessed on  A
 class  one  OR CLASS ONE-A property after deduction for any exemption or
 abatement received pursuant to this chapter.
   4. Property subject to additional tax. Such surcharge shall be imposed
 on class one AND CLASS  ONE-A  property,  excluding  vacant  land,  that
 provides  rental income and is not the primary residence of the owner or
 owners of such class one OR CLASS ONE-A property, or the  primary  resi-
 dence of the parent or child of such owner or owners.
   § 3. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
 erty  tax  law,  as added by chapter 273 of the laws of 1996, is amended
 and a new paragraph (i) is added to read as follows:
   (f) "Property" means real property designated as  class  [two]  ONE-A,
 pursuant  to  section  eighteen hundred two of this chapter, held in the
 cooperative or condominium form of ownership.
   (I) "MARKET VALUE" SHALL BE CALCULATED BY THE NEW YORK CITY DEPARTMENT
 OF FINANCE BASED UPON COMPARABLE SALES.

 S. 5749                             4
 
   § 4. Paragraphs (d-1), (d-2), (d-3) and  (d-4)  of  subdivision  2  of
 section  467-a of the real property tax law, as amended by section 62 of
 part A of chapter 20 of the laws of 2015,  are  amended  and  seven  new
 paragraphs  (d-7),  (d-8),  (d-9), (d-10), (d-11), (d-12) and (d-13) are
 added to read as follows:
   (d-1)  In  the  fiscal years commencing in calendar years two thousand
 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
 ing units in property whose average unit assessed value is less than  or
 equal to fifty thousand dollars shall receive a partial abatement of the
 real  property  taxes  attributable  to or due on such dwelling units of
 twenty-five percent, twenty-six and one-half  percent  and  twenty-eight
 and  one-tenth  percent  respectively. In the fiscal years commencing in
 calendar years two thousand fifteen[,] AND two  thousand  sixteen[,  two
 thousand seventeen and two thousand eighteen] eligible dwelling units in
 property  whose  average  unit  assessed  value is less than or equal to
 fifty thousand dollars shall receive a partial  abatement  of  the  real
 property  taxes attributable to or due on such dwelling units of twenty-
 eight and one-tenth percent.
   (d-2) In the fiscal years commencing in calendar  years  two  thousand
 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
 ing  units  in  property  whose average unit assessed value is more than
 fifty thousand dollars, but less than or equal  to  fifty-five  thousand
 dollars,  shall  receive  a partial abatement of the real property taxes
 attributable to or due on such dwelling units of twenty-two and one-half
 percent, twenty-three and eight-tenths percent and twenty-five and  two-
 tenths  percent respectively. In the fiscal years commencing in calendar
 years two thousand fifteen[,] AND two thousand  sixteen[,  two  thousand
 seventeen and two thousand eighteen] eligible dwelling units in property
 whose  average  unit assessed value is more than fifty thousand dollars,
 but less than or equal to fifty-five thousand dollars, shall  receive  a
 partial  abatement  of the real property taxes attributable to or due on
 such dwelling units of twenty-five and two-tenths percent.
   (d-3) In the fiscal years commencing in calendar  years  two  thousand
 twelve, two thousand thirteen and two thousand fourteen, eligible dwell-
 ing  units  in  property  whose average unit assessed value is more than
 fifty-five thousand dollars, but less than or equal  to  sixty  thousand
 dollars,  shall  receive  a partial abatement of the real property taxes
 attributable to or due on such dwelling units of twenty  percent,  twen-
 ty-one  and  two-tenths  percent, and twenty-two and five-tenths percent
 respectively. In the fiscal years commencing in calendar years two thou-
 sand fifteen[,] AND two thousand sixteen[, two  thousand  seventeen  and
 two thousand eighteen] eligible dwelling units in property whose average
 unit  assessed  value is more than fifty-five thousand dollars, but less
 than or equal to sixty thousand dollars, shall receive a partial  abate-
 ment  of the real property taxes attributable to or due on such dwelling
 units of twenty-two and five-tenths percent.
   (d-4) In the fiscal years commencing in calendar  years  two  thousand
 twelve,  two  thousand  thirteen,  two  thousand  fourteen, two thousand
 fifteen[,] AND two thousand sixteen[, two  thousand  seventeen  and  two
 thousand  eighteen,]  eligible  dwelling units in property whose average
 unit assessed value is more than sixty thousand dollars shall receive  a
 partial  abatement  of the real property taxes attributable to or due on
 such dwelling units of seventeen and one-half percent.
   (D-7) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE  AVERAGE  UNIT  MARKET
 VALUE  IS LESS THAN OR EQUAL TO SIX HUNDRED FIFTY THOUSAND DOLLARS SHALL
 RECEIVE A PARTIAL ABATEMENT OF REAL PROPERTY TAXES  ATTRIBUTABLE  TO  OR

 S. 5749                             5
 
 DUE  ON  SUCH  DWELLING UNITS, NOT TO EXCEED THIRTY-THREE PERCENT IN THE
 FISCAL YEAR COMMENCING IN CALENDAR YEAR TWO THOUSAND TWENTY  AND  THERE-
 AFTER.
   (D-8)  ELIGIBLE  DWELLING  UNITS IN PROPERTY WHOSE AVERAGE UNIT MARKET
 VALUE IS BETWEEN SIX HUNDRED FIFTY THOUSAND ONE DOLLARS TO SEVEN HUNDRED
 FIFTY THOUSAND DOLLARS SHALL RECEIVE A PARTIAL  ABATEMENT  OF  THE  REAL
 PROPERTY  TAXES  ATTRIBUTABLE  TO  OR DUE ON SUCH DWELLING UNITS, NOT TO
 EXCEED TWENTY-TWO AND FIVE-TENTHS PERCENT IN THE FISCAL YEAR  COMMENCING
 IN CALENDAR YEAR TWO THOUSAND TWENTY AND THEREAFTER.
   (D-9)  ELIGIBLE  DWELLING  UNITS IN PROPERTY WHOSE AVERAGE UNIT MARKET
 VALUE IS BETWEEN SEVEN HUNDRED FIFTY THOUSAND ONE AND ONE  MILLION  FIVE
 HUNDRED  THOUSAND  DOLLARS SHALL RECEIVE A PARTIAL ABATEMENT OF THE REAL
 PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON SUCH  DWELLING  UNITS,  NOT  TO
 EXCEED  SEVENTEEN  AND FIVE-TENTHS PERCENT IN THE FISCAL YEAR COMMENCING
 IN CALENDAR YEAR TWO THOUSAND TWENTY AND THEREAFTER.
   (D-10) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE  UNIT  MARKET
 VALUE  IS  BETWEEN ONE MILLION FIVE HUNDRED THOUSAND ONE DOLLARS AND TWO
 MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED  SIXTY-SEVEN  DOLLARS
 SHALL  RECEIVE  A PARTIAL ABATEMENT OF THE REAL PROPERTY TAXES ATTRIBUT-
 ABLE TO OR DUE ON SUCH DWELLING UNITS, NOT TO EXCEED THIRTEEN AND  THIR-
 TEEN-HUNDREDTHS  PERCENT  IN THE FISCAL YEAR COMMENCING IN CALENDAR YEAR
 TWO THOUSAND TWENTY AND THEREAFTER.
   (D-11) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE  UNIT  MARKET
 VALUE  IS BETWEEN TWO MILLION SIX HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED
 SIXTY-EIGHT DOLLARS AND THREE MILLION EIGHT HUNDRED  THIRTY-THREE  THOU-
 SAND  THREE  HUNDRED THIRTY-THREE DOLLARS SHALL RECEIVE A PARTIAL ABATE-
 MENT OF THE REAL PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON SUCH  DWELLING
 UNITS,  NOT  TO  EXCEED  EIGHT AND SEVENTY-FIVE HUNDREDTH PERCENT IN THE
 FISCAL YEAR COMMENCING IN CALENDAR YEAR TWO THOUSAND TWENTY  AND  THERE-
 AFTER.
   (D-12)  ELIGIBLE  DWELLING UNITS IN PROPERTY WHOSE AVERAGE UNIT MARKET
 VALUE IS BETWEEN THREE MILLION EIGHT HUNDRED THIRTY-THREE THOUSAND THREE
 HUNDRED THIRTY-FOUR DOLLARS AND FIVE MILLION  DOLLARS  SHALL  RECEIVE  A
 PARTIAL  ABATEMENT  OF THE REAL PROPERTY TAXES ATTRIBUTABLE TO OR DUE ON
 SUCH DWELLING UNITS, NOT TO  EXCEED  FOUR  AND  THIRTY-EIGHT  HUNDREDTHS
 PERCENT  IN  THE  FISCAL  YEAR  COMMENCING IN CALENDAR YEAR TWO THOUSAND
 TWENTY AND THEREAFTER.
   (D-13) ELIGIBLE DWELLING UNITS IN PROPERTY WHOSE AVERAGE  UNIT  MARKET
 VALUE  IS FIVE MILLION DOLLARS OR MORE SHALL RECEIVE A PARTIAL ABATEMENT
 OF THE REAL PROPERTY TAXES ATTRIBUTABLE  TO  OR  DUE  ON  SUCH  DWELLING
 UNITS,  NOT  TO  EXCEED  ZERO  PERCENT  IN THE FISCAL YEAR COMMENCING IN
 CALENDAR YEAR TWO THOUSAND TWENTY AND THEREAFTER.
   § 4-a. The real property tax law is amended by adding  a  new  section
 467-a-1 to read as follows:
   §  467-A-1.  ENHANCED  PARTIAL  ABATEMENT FOR CERTAIN CONDOMINIUMS AND
 COOPERATIVE RESIDENCES. 1. IN ADDITION TO THE PARTIAL ABATEMENT RECEIVED
 PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN-A OF THIS ARTICLE,  IN  THE
 FISCAL  YEAR  COMMENCING  IN CALENDAR YEAR TWO THOUSAND TWENTY, ELIGIBLE
 UNITS IN PROPERTY WHOSE AVERAGE UNIT  MARKET  VALUE  IS  LESS  THAN  SIX
 HUNDRED FIFTY THOUSAND DOLLARS SHALL RECEIVE AN ENHANCED ABATEMENT EQUAL
 TO  THE  EXCESS  ABOVE  TWO  PERCENT OF THE DIFFERENCE BETWEEN THE PRIOR
 YEAR'S PROPERTY TAX AND THE CURRENT YEAR'S PROPERTY TAX.
   2. IN ADDITION TO THE PARTIAL ABATEMENT RECEIVED PURSUANT  TO  SECTION
 FOUR  HUNDRED SIXTY-SEVEN-A OF THIS ARTICLE, IN THE FISCAL YEAR COMMENC-
 ING IN CALENDAR YEAR TWO THOUSAND TWENTY-ONE, ELIGIBLE UNITS IN PROPERTY
 WHOSE AVERAGE UNIT MARKET VALUE IS LESS THAN SIX HUNDRED FIFTY  THOUSAND

 S. 5749                             6
 
 DOLLARS  SHALL  RECEIVE  AN ENHANCED ABATEMENT EQUAL TO THE EXCESS ABOVE
 FOUR PERCENT OF THE DIFFERENCE BETWEEN THE PRIOR YEAR'S PROPERTY TAX AND
 THE CURRENT YEAR'S PROPERTY TAX.
   3.  IN  ADDITION TO THE PARTIAL ABATEMENT RECEIVED PURSUANT TO SECTION
 FOUR HUNDRED SIXTY-SEVEN-A OF THIS ARTICLE, IN THE FISCAL YEAR  COMMENC-
 ING  IN  CALENDAR  YEAR TWO THOUSAND TWENTY-TWO AND THEREAFTER, ELIGIBLE
 UNITS IN PROPERTY WHOSE AVERAGE UNIT  MARKET  VALUE  IS  LESS  THAN  SIX
 HUNDRED FIFTY THOUSAND DOLLARS SHALL RECEIVE AN ENHANCED ABATEMENT EQUAL
 TO  THE  EXCESS  ABOVE  SIX  PERCENT OF THE DIFFERENCE BETWEEN THE PRIOR
 YEAR'S PROPERTY TAX AND THE CURRENT YEAR'S PROPERTY  TAX.  THE  ENHANCED
 CONDOMINIUM  AND  COOPERATIVE  ABATEMENT SHALL NOT BE ELIGIBLE FOR UNITS
 WHERE THE COMMISSIONER DETERMINES THAT RENOVATION OR CONSTRUCTION WITHIN
 THE UNIT OR BUILDING HAS PRODUCED A SUBSTANTIAL YEARLY INCREASE  IN  THE
 UNIT'S ASSESSED VALUE.
   § 5. Subdivision 7 of section 499-aaa of the real property tax law, as
 added by chapter 461 of the laws of 2008, is amended to read as follows:
   7.  "Eligible building" shall mean a class one, CLASS ONE-A, class two
 or class four real property, as defined in subdivision  one  of  section
 eighteen  hundred  two  of  this chapter, located within a city having a
 population of one million or more persons. No building shall be eligible
 for more than one tax abatement pursuant to this title.
   § 6. Subdivision 7 of section 499-aaaa of the real property  tax  law,
 as  added  by  chapter  473  of  the laws of 2008, is amended to read as
 follows:
   7. "Eligible building" shall mean a class one, CLASS ONE-A, class  two
 or  class  four  real property, as defined in subdivision one of section
 eighteen hundred two of this chapter, located within  a  city  having  a
 population of one million or more persons. No building shall be eligible
 for more than one tax abatement pursuant to this title.
   § 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
 ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
 read as follows:
   (b) in a  special  assessing  unit,  the  determination,  pursuant  to
 section  eighteen  hundred two of this chapter, of whether real property
 is included in class one, ONE-A, two, three or four.
   § 8. Subdivision 10 of section 523-b of the real property tax law,  as
 added by chapter 593 of the laws of 1998, is amended to read as follows:
   10.  On  or before April first, each year the commission shall mail to
 each applicant, who has filed an application for the correction  of  the
 assessment,  a  notice  of the commission's determination of such appli-
 cant's assessment. Such notice shall also contain the  statement  as  to
 the final determination of the assessment review commission, or a state-
 ment  that  the  commission  has  not yet made a determination as to the
 final assessed valuation which shall be made as soon as the  petitioners
 application  is reviewed or heard. If the applicants property is a prop-
 erty defined in subdivision one of section eighteen hundred two of  this
 chapter  as  "Class  1", the commissions determination shall contain the
 statement: "If you  are  dissatisfied  with  the  determination  of  the
 Assessment  Review  Commission  and  you  are the owner of a one, two or
 three family residential structure or residential real property not more
 than three stories in height held  in  condominium  form  of  ownership,
 provided  that  no dwelling unit therein previously was on an assessment
 roll as a dwelling unit in other than condominium form of ownership, and
 you reside at such residence, you  may  seek  judicial  review  of  your
 assessment  either under title one of article seven of the real property
 tax law or under small claims assessment review law  provided  by  title

 S. 5749                             7
 
 one-A  of article seven of the real property tax law." Such notice shall
 also state that the last date to file petitions for judicial review  and
 the  location  where  small  claims  assessment  review petitions may be
 obtained.
   Each  applicant that has filed an application of a property as defined
 in subdivision one of section eighteen hundred two of  this  chapter  as
 "CLASS  1-A",  "Class 2", "Class 3" or "Class 4", shall receive a notice
 as to the final determination of the assessment review commission  or  a
 statement that the commission has not yet made a determination as to the
 final  assessed valuation which shall be made as soon as the petitioners
 application is reviewed or heard. Such applicants  determinations  shall
 contain  the  statement: "If you are dissatisfied with the determination
 of the Assessment Review Commission you may seek judicial review of your
 assessment under title one of article seven of  the  real  property  tax
 law."  Such  notice shall also state the last date to file petitions for
 judicial review. A final determination when rendered shall  contain  the
 same statement. Failure to mail any such notice or failure of the appli-
 cant  to  receive  the same shall not affect the validity of the assess-
 ment.
   § 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
 ty tax law, as added by chapter 714 of the laws of 1982, is  amended  to
 read as follows:
   (b)  In  a  special  assessing  unit,  the  determination, pursuant to
 section eighteen hundred two of this chapter, of whether  real  property
 is included in class one, ONE-A, two, three or four.
   §  10. Subparagraph 2 of paragraph (a) of subdivision 3 of section 720
 of the real property tax law, as amended by chapter 679 of the  laws  of
 1986, is amended to read as follows:
   (2)  "Major  type of property" in special assessing units, for assess-
 ments on rolls completed after December thirty-first,  nineteen  hundred
 eighty-one,  shall  mean  classes  one,  ONE-A,  two,  three and four as
 defined in subdivision one of section eighteen hundred two of this chap-
 ter.
   § 11. The opening paragraph of subdivision 1 of section  1805  of  the
 real property tax law, as amended by chapter 935 of the laws of 1984, is
 amended  and  two  new  subdivisions  1-a  and  1-b are added to read as
 follows:
   The assessor of any special assessing  unit  shall  not  increase  the
 assessment  of  any  individual  parcel classified in class one OR CLASS
 ONE-A in any one year, as measured from the assessment on  the  previous
 year's  assessment roll, by more than six percent and shall not increase
 such assessment by more than twenty percent in any five-year period. The
 first such five-year  period  shall  be  measured  from  the  individual
 assessment  appearing  on  the  assessment  roll  completed  in nineteen
 hundred eighty; provided that if such parcel would not have been subject
 to the provisions of this subdivision in  nineteen  hundred  eighty  had
 this  subdivision  then  been in effect, the first such five-year period
 shall be measured from the first year after nineteen hundred  eighty  in
 which  this  subdivision applied to such parcel or would have applied to
 such parcel had this subdivision been in effect in such year.
   1-A. ASSESSMENT ROLLS COMPUTED  FOR  CLASS  ONE-A  SHALL  INCLUDE  ANY
 OUTSTANDING  PHASED-IN  INCREASES ACCRUED PRIOR TO THE EFFECTIVE DATE OF
 THE CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN WHICH ADDED THIS SUBDI-
 VISION PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   1-B. CLASS ONE-A PARCELS SHALL BE ASSESSED IN A METHOD  COMPARABLE  TO
 CLASS ONE PARCELS.

 S. 5749                             8
 
   §  12.  Subdivisions e and f of section 11-208.1 of the administrative
 code of the city of New York, subdivision e  as  amended  by  local  law
 number 41 of the city of New York for the year 1986 and subdivision f as
 amended  by  chapter  385  of  the  laws of 2006, are amended to read as
 follows:
   e. As used in this section, the term "income-producing property" means
 property  owned  for the purpose of securing an income from the property
 itself, but shall not include property with an assessed value  of  forty
 thousand  dollars  or  less,  or  residential property containing ten or
 fewer dwelling units or property classified in class one, ONE-A  or  two
 as  defined  in article eighteen of the real property tax law containing
 six or fewer dwelling units and one retail store.
   f. Except in accordance with proper judicial  order  or  as  otherwise
 provided  by law, it shall be unlawful for the commissioner, any officer
 or employee of the  department,  the  president  or  a  commissioner  or
 employee  of  the  tax commission, any person engaged or retained by the
 department or the tax commission on an independent  contract  basis,  or
 any  person,  who, pursuant to this section, is permitted to inspect any
 income and expense statement or to whom a copy, an abstract or a portion
 of any such statement is furnished, to divulge  or  make  known  in  any
 manner  except  as  provided  in  this subdivision, the amount of income
 and/or expense or any particulars set forth or  disclosed  in  any  such
 statement  required  under this section. The commissioner, the president
 of the tax commission, or any commissioner or officer or employee of the
 department or the tax commission charged with the custody of such state-
 ments shall not be required to produce any income and expense  statement
 or evidence of anything contained in them in any action or proceeding in
 any  court,  except  on  behalf of the department or the tax commission.
 Nothing herein shall be construed to prohibit the delivery to  an  owner
 or  his or her duly authorized representative of a certified copy of any
 statement filed by such owner pursuant to this section  or  to  prohibit
 the  publication of statistics so classified as to prevent the identifi-
 cation of particular statements and the items thereof, or  making  known
 aggregate income and expense information disclosed with respect to prop-
 erty classified as class four as defined in article eighteen of the real
 property  tax law without identifying information about individual leas-
 es, or making known a range as determined  by  the  commissioner  within
 which the income and expenses of a property classified as CLASS ONE-A OR
 class  two  falls, or the inspection by the legal representatives of the
 department or of the tax commission of the statement of  any  owner  who
 shall  bring  an  action to correct the assessment. Any violation of the
 provisions of this subdivision shall be punished by a fine not exceeding
 one thousand dollars or by imprisonment not exceeding one year, or both,
 at the discretion of the court, and if the offender  be  an  officer  or
 employee  of the department or the tax commission, the offender shall be
 dismissed from office.
   § 13. Subdivision a of section 11-238 of the  administrative  code  of
 the  city  of New York, as amended by local law number 27 of the city of
 New York for the year 2006, is amended to read as follows:
   a. Imposition of surcharge. A real property tax  surcharge  is  hereby
 imposed  on  class  one  AND CLASS ONE-A property, as defined in section
 eighteen hundred two of the real  property  tax  law,  excluding  vacant
 land,  that  provides  rental income and is not the primary residence of
 the owner or owners of such class one OR CLASS ONE-A  property,  or  the
 primary  residence of the parent or child of such owner or owners, in an
 amount equal to zero percent of the net real property taxes  for  fiscal

 S. 5749                             9
 
 years  beginning  on  or  after July first, two thousand six. As used in
 this section, "net real  property  tax"  means  the  real  property  tax
 assessed  on  class  one  property  after deduction for any exemption or
 abatement received pursuant to the real property tax law or this title.
   §  14. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of
 the administrative code of the city of New  York, subdivisions  a,  a-1,
 a-2  and a-3 as amended, 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 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] ONE-A property
 [that is a residential condominium or residential cooperative], as  such
 classes  of  property are defined in subdivision one of section eighteen
 hundred two of the real property tax law, may be sold by the  city  only
 when the real property tax component of such tax lien or tax liens shall
 have remained unpaid in whole or in part for three years or, in the case
 of  any  class  two  residential  property  owned by a company organized
 pursuant to article XI of the state private housing finance law [that is
 not a residential condominium or a  residential  cooperative],  as  such
 class  of  property  is  defined  in subdivision one of section eighteen
 hundred two of the real property tax law, for two years, and  equals  or
 exceeds  the  sum  of five thousand dollars or, in the case of abandoned
 class one property or abandoned class [two] ONE-A property  [that  is  a
 residential   condominium  or  residential  cooperative],  for  eighteen
 months, and after  such  sale,  shall  be  transferred,  in  the  manner
 provided  by  this chapter, and provided, further, however, that (i) the
 real property tax component of such tax lien may not be sold pursuant to
 this subdivision on any residential real property in class one  that  is
 receiving  an exemption pursuant to section 11-245.3 or 11-245.4 of this
 title, or pursuant to section four hundred fifty-eight of the real prop-
 erty tax law with respect  to  real  property  purchased  with  payments
 received  as prisoner of war compensation from the United States govern-
 ment, or pursuant to paragraph (b) or (c) of subdivision two of  section
 four  hundred  fifty-eight-a  of the real property tax law, or where the
 owner of such residential real property in class one is receiving  bene-
 fits  in  accordance  with department of finance memorandum 05-3, or any
 successor memorandum thereto, relating to active duty  military  person-
 nel,  or  where the owner of such residential real property in class one
 has been allowed a credit pursuant to  subsection  (e)  of  section  six
 hundred  six  of  the tax law for the calendar year in which the date of
 the first publication, pursuant to subdivision a of  section  11-320  of
 this  chapter,  of  the  notice of sale, occurs or for the calendar year
 immediately preceding such date and  (ii)  the  sewer  rents  component,
 sewer surcharges component or water rents component of such tax lien may
 not  be  sold pursuant to this subdivision on any one family residential
 real property in class one or on any two  or  three  family  residential
 real  property  in  class one that is receiving an exemption pursuant to
 section 11-245.3 or 11-245.4 of this title, or pursuant to section  four
 hundred  fifty-eight  of  the real property tax law with respect to real
 property purchased with payments received as  prisoner  of  war  compen-
 sation  from  the United States government, or pursuant to paragraph (b)
 or (c) of subdivision two of section four hundred fifty-eight-a  of  the

 S. 5749                            10
 
 real  property  tax  law,  or where the owner of any two or three family
 residential real property in class one is receiving benefits in  accord-
 ance  with department of finance memorandum 05-3, or any successor memo-
 randum thereto, relating to active duty military personnel, or where the
 owner  of any two or three family residential real property in class one
 has been allowed a credit pursuant to  subsection  (e)  of  section  six
 hundred  six  of  the tax law for the calendar year in which the date of
 the first publication, pursuant to subdivision a of  section  11-320  of
 this  chapter,  of  the  notice of sale, occurs or for the calendar year
 immediately preceding such date. A tax lien or tax liens on any property
 classified as a class two property, except [a class two property that is
 a residential condominium or residential cooperative, or]  a  class  two
 residential property owned by a company organized pursuant to article XI
 of  the  state  private  housing  finance law [that is not a residential
 condominium or a residential cooperative], or class three  property,  as
 such classes of property are defined in subdivision one of section eigh-
 teen  hundred two of the real property tax law, shall not be sold by the
 city unless such tax lien or tax  liens  include  a  real  property  tax
 component  as of the date of the first publication, pursuant to subdivi-
 sion a of section 11-320  of  this  chapter,  of  the  notice  of  sale.
 Notwithstanding  any  provision of this subdivision to the contrary, any
 such tax lien or tax liens that remain unpaid in whole or in part  after
 such  date  may be sold regardless of whether such tax lien or tax liens
 include a real property tax component. A tax lien  or  tax  liens  on  a
 property  classified as a class four property, as such class of property
 is defined in subdivision one of section eighteen  hundred  two  of  the
 real  property  tax  law,  shall not be sold by the city unless such tax
 lien or tax liens include a real property tax component or  sewer  rents
 component  or  sewer  surcharges  component  or water rents component or
 emergency repair charges component, where such emergency repair  charges
 accrued  on or after January first, two thousand six and are made a lien
 pursuant to section 27-2144 of this code, as of the date  of  the  first
 publication,  pursuant  to subdivision a of section 11-320 of this chap-
 ter, of the notice of sale, provided, however, that any tax lien or  tax
 liens that remain unpaid in whole or in part after such date may be sold
 regardless of whether such tax lien or tax liens include a real property
 tax  component, sewer rents component, sewer surcharges component, water
 rents component or emergency repair charges component. For  purposes  of
 this  subdivision,  the  words  "real property tax" shall not include an
 assessment or charge upon property imposed pursuant to section 25-411 of
 the administrative code. A sale  of  a  tax  lien  or  tax  liens  shall
 include,  in addition to such lien or liens that have remained unpaid in
 whole or in part for one year, or, in the case of any class one property
 or class [two] ONE-A property [that  is  a  residential  condominium  or
 residential  cooperative],  when the real property tax component of such
 lien or liens has remained unpaid in whole or in part for  three  years,
 or, in the case of any class two residential property owned by a company
 organized  pursuant  to  article XI of the state private housing finance
 law [that is not a residential  condominium  or  a  residential  cooper-
 ative],  when  the real property tax component of such lien or liens has
 remained unpaid in whole or in part for two years, and equals or exceeds
 the sum of five thousand dollars, any taxes, assessments,  sewer  rents,
 sewer  surcharges,  water  rents, any other charges that are made a lien
 subject to the provisions of this chapter, the costs of  any  advertise-
 ments and notices given pursuant to this chapter, any other charges that
 are  due  and  payable,  a  surcharge pursuant to section 11-332 of this

 S. 5749                            11
 
 chapter, and interest and penalties thereon or  such  component  of  the
 amount  thereof  as  shall be determined by the commissioner of finance.
 The commissioner of finance may promulgate  rules  defining  "abandoned"
 property, as such term is used in this subdivision.
   a-1. A subsequent tax lien or tax liens on a property or any component
 of  the amount thereof may be sold by the city pursuant to this chapter,
 provided, however, that notwithstanding any provision in this chapter to
 the contrary, such tax lien or tax  liens  may  be  sold  regardless  of
 whether  such  tax lien or tax liens have remained unpaid in whole or in
 part for one year and, notwithstanding any provision in this chapter  to
 the contrary, in the case of any class one property or class [two] ONE-A
 property  [that is a residential condominium or residential cooperative]
 or, beginning January first, two thousand twelve, in  the  case  of  any
 class  two residential property owned by a company organized pursuant to
 article XI of the state private housing finance law [that is not a resi-
 dential condominium or a residential cooperative], such tax lien or  tax
 liens may be sold if the real property tax component of such tax lien or
 tax  liens  has  remained  unpaid  in whole or in part for one year, and
 provided, further, however, that (i) the real property tax component  of
 such  tax lien may not be sold pursuant to this subdivision on any resi-
 dential real property in class one that is receiving an exemption pursu-
 ant to section 11-245.3 or  11-245.4  of  this  title,  or  pursuant  to
 section  four  hundred  fifty-eight  of  the  real property tax law with
 respect to real property purchased with payments received as prisoner of
 war compensation from the United States government, or pursuant to para-
 graph  (b)  or  (c)  of  subdivision  two  of   section   four   hundred
 fifty-eight-a  of  the real property tax law, or where the owner of such
 residential real property in class one is receiving benefits in  accord-
 ance  with department of finance memorandum 05-3, or any successor memo-
 randum thereto, relating to active duty military personnel, or where the
 owner of such residential real property in class one has been allowed  a
 credit  pursuant to subsection (e) of section six hundred six of the tax
 law for the calendar year in which the date of  the  first  publication,
 pursuant  to  subdivision  a  of  section 11-320 of this chapter, of the
 notice of sale, occurs or for the calendar  year  immediately  preceding
 such date and (ii) the sewer rents component, sewer surcharges component
 or  water  rents  component of such tax lien may not be sold pursuant to
 this subdivision on any one family residential real  property  in  class
 one or on any two or three family residential real property in class one
 that  is receiving an exemption pursuant to section 11-245.3 or 11-245.4
 of this title, or pursuant to section four hundred  fifty-eight  of  the
 real  property  tax  law  with  respect  to real property purchased with
 payments received as prisoner of war compensation from the United States
 government, or pursuant to paragraph (b) or (c) of  subdivision  two  of
 section  four  hundred  fifty-eight-a  of  the real property tax law, or
 where the owner of any two or three family residential real property  in
 class one is receiving benefits in accordance with department of finance
 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

 S. 5749                            12
 
 on or after the date of sale of any tax lien or tax liens on such  prop-
 erty  that  have  been  sold pursuant to this chapter, provided that the
 prior tax lien or tax liens remain unpaid as of the date  of  the  first
 publication,  pursuant  to subdivision a of section 11-320 of this chap-
 ter, of the notice of sale of the subsequent tax lien or tax liens.    A
 subsequent  tax  lien or tax liens on any property classified as a class
 two property, except [a class two property that is a residential  condo-
 minium  or residential cooperative, or] a class two residential property
 owned by a company organized pursuant to article XI of the state private
 housing finance law [that is not a residential condominium or a residen-
 tial cooperative], or class three property, as such classes of  property
 are  defined  in  subdivision one of section eighteen hundred two of the
 real property tax law, shall not be sold by the  city  unless  such  tax
 lien  or  tax liens include a real property tax component as of the date
 of the first publication, pursuant to subdivision a of section 11-320 of
 this chapter, of the notice of sale. Notwithstanding  any  provision  of
 this  subdivision  to  the contrary, any such tax lien or tax liens that
 remain unpaid in whole or in part after such date may be sold regardless
 of whether such tax lien or tax liens include a real property tax compo-
 nent. A subsequent tax lien or tax liens on a property classified  as  a
 class four property, as such class of property is defined in subdivision
 one  of section eighteen hundred two of the real property tax law, shall
 not be sold by the city unless such tax lien or tax liens include a real
 property tax component or sewer  rents  component  or  sewer  surcharges
 component  or  water  rents component or emergency repair charges compo-
 nent, where such emergency repair charges accrued on  or  after  January
 first,  two thousand six and are made a lien pursuant to section 27-2144
 of this code, as of the date  of  the  first  publication,  pursuant  to
 subdivision  a of section 11-320 of this chapter, of the notice of sale,
 provided, however, that any tax lien or tax liens that remain unpaid  in
 whole  or in part after such date may be sold regardless of whether such
 tax lien or tax liens include a real property tax component, sewer rents
 component, sewer surcharges component, water rents component or emergen-
 cy repair charges component. For purposes of this subdivision, the words
 "real property tax" shall not include an assessment or charge upon prop-
 erty imposed pursuant to section  25-411  of  the  administrative  code.
 Nothing  in  this  subdivision  shall  be  deemed  to  limit  the rights
 conferred by section 11-332 of this chapter on the holder of a tax  lien
 certificate with respect to a subsequent tax lien.
   a-2.  In  addition to any sale authorized pursuant to subdivision a or
 subdivision a-1 of this section and  notwithstanding  any  provision  of
 this  chapter to the contrary, beginning on December first, two thousand
 seven, the water rents, sewer rents and sewer surcharges  components  of
 any  tax  lien  on  any class of real property, as such real property is
 classified in subdivision one of section eighteen  hundred  two  of  the
 real property tax law, may be sold by the city pursuant to this chapter,
 where  such  water  rents,  sewer rents or sewer surcharges component of
 such tax lien, as of the date of  the  first  publication,  pursuant  to
 subdivision  a of section 11-320 of this chapter, of the notice of sale:
 (i) shall have remained unpaid in whole or in part for one year and (ii)
 equals or exceeds the sum of one thousand dollars or, beginning on March
 first, two thousand eleven, in the case of any two or three family resi-
 dential real property in class one, for one year, and equals or  exceeds
 the  sum  of  two  thousand dollars, or, beginning on January first, two
 thousand twelve, in the case of any class two residential property owned
 by a company organized pursuant to article XI of the state private hous-

 S. 5749                            13
 
 ing finance law [that is not a residential condominium or a  residential
 cooperative], as such class of property is defined in subdivision one of
 section  eighteen  hundred  two  of  the  real property tax law, for two
 years, and equals to exceeds the sum of five thousand dollars; provided,
 however,  that  such water rents, sewer rents or sewer surcharges compo-
 nent of such tax lien may not be sold pursuant to  this  subdivision  on
 any  one  family residential real property in class one or on any two or
 three family residential real property in class one that is receiving an
 exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
 pursuant  to  section  four hundred fifty-eight of the real property tax
 law with respect to real property purchased with  payments  received  as
 prisoner  of  war  compensation  from  the  United States government, or
 pursuant to paragraph (b) or (c) of  subdivision  two  of  section  four
 hundred  fifty-eight-a  of the real property tax law, or where the owner
 of any two or three family residential real property  in  class  one  is
 receiving  benefits  in accordance with department of finance memorandum
 05-3, or any successor memorandum thereto, relating to active duty mili-
 tary personnel, or where the owner of any two or three  family  residen-
 tial  real  property  in class one has been allowed a credit pursuant to
 subsection (e) of section six hundred six of the tax law for the  calen-
 dar  year in which the date of the first publication, pursuant to subdi-
 vision a of section 11-320 of this  chapter,  of  the  notice  of  sale,
 occurs  or  for the calendar year immediately preceding such date. After
 such sale, any such water rents, sewer rents or sewer surcharges  compo-
 nent  of such tax lien may be transferred in the manner provided by this
 chapter.
   a-3. In addition to any sale authorized pursuant to subdivision  a  or
 subdivision  a-1  of  this  section and notwithstanding any provision of
 this chapter to the contrary, beginning on December first, two  thousand
 seven, a subsequent tax lien on any class of real property, as such real
 property  is  classified  in subdivision one of section eighteen hundred
 two of the real property tax law, may be sold by the  city  pursuant  to
 this  chapter,  regardless  of  whether such subsequent tax lien, or any
 component of the amount thereof, shall have remained unpaid in whole  or
 in  part  for  one  year,  and regardless of whether such subsequent tax
 lien, or any component of the amount thereof, equals or exceeds the  sum
 of  one thousand dollars or beginning on March first, two thousand elev-
 en, in the case of any two or three family residential real property  in
 class  one,  a  subsequent  tax lien on such property may be sold by the
 city pursuant to this chapter, regardless of whether such subsequent tax
 lien, or any component of the amount thereof, shall have remained unpaid
 in whole or in part for one year, and regardless of whether such  subse-
 quent  tax  lien,  or  any  component  of  the amount thereof, equals or
 exceeds the sum of two thousand dollars, or, beginning on January first,
 two thousand twelve, in the case of any class two  residential  property
 owned by a company organized pursuant to article XI of the state private
 housing finance law [that is not a residential condominium or a residen-
 tial  cooperative],  as such class of property is defined in subdivision
 one of section eighteen hundred two of the  real  property  tax  law,  a
 subsequent tax lien on such property may be sold by the city pursuant to
 this  chapter,  regardless  of  whether such subsequent tax lien, or any
 component of the amount thereof, shall have remained unpaid in whole  or
 in  part  for  two  years, and regardless of whether such subsequent tax
 lien, or any component of the amount thereof, equals or exceeds the  sum
 of  five  thousand  dollars; provided, however, that such subsequent tax
 lien may not be sold pursuant to this  subdivision  on  any  one  family

 S. 5749                            14
 
 residential  real  property  in  class one or on any two or three family
 residential real property in class one that is  receiving  an  exemption
 pursuant  to  section 11-245.3 or 11-245.4 of this title, or pursuant to
 section  four  hundred  fifty-eight  of  the  real property tax law with
 respect to real property purchased with payments received as prisoner of
 war compensation from the United States government, or pursuant to para-
 graph  (b)  or  (c)  of  subdivision  two  of   section   four   hundred
 fifty-eight-a  of  the  real property tax law, or where the owner of any
 two or three family residential real property in class one is  receiving
 benefits  in  accordance  with department of finance memorandum 05-3, or
 any successor memorandum  thereto,  relating  to  active  duty  military
 personnel,  or  where  the  owner of any two or three family residential
 real property in class  one  has  been  allowed  a  credit  pursuant  to
 subsection  (e) of section six hundred six of the tax law for the calen-
 dar year in which the date of the first publication, pursuant to  subdi-
 vision  a  of  section  11-320  of  this chapter, of the notice of sale,
 occurs or for the calendar year immediately preceding such  date.  After
 such  sale, any such subsequent tax lien, or any component of the amount
 thereof, may be transferred in the manner provided by this chapter.  For
 purposes  of this subdivision, the term "subsequent tax lien" shall mean
 the water rents, sewer rents or sewer surcharges component  of  any  tax
 lien  on  property that becomes such on or after the date of sale of any
 water rents, sewer rents or sewer surcharges component of any  tax  lien
 on  such  property that has been sold pursuant to this chapter, provided
 that the prior tax lien remains unpaid as  of  the  date  of  the  first
 publication,  pursuant  to subdivision a of section 11-320 of this chap-
 ter, of the notice of sale of the subsequent tax lien. Nothing  in  this
 subdivision  shall  be  deemed  to limit the rights conferred by section
 11-332 of this chapter on the holder of  a  tax  lien  certificate  with
 respect to a subsequent tax lien.
   a-4.  In  addition  to  any sale authorized pursuant to subdivision a,
 a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
 this  chapter  to  the  contrary, beginning on March first, two thousand
 eleven, the emergency repair charges component or  alternative  enforce-
 ment  expenses  and  fees component, where such emergency repair charges
 accrued on or after January first, two thousand six and are made a  lien
 pursuant  to  section  27-2144  of  this code, or where such alternative
 enforcement expenses and fees  are  made  a  lien  pursuant  to  section
 27-2153  of this code, of any tax lien on any class of real property, as
 such real property is defined in subdivision  one  of  section  eighteen
 hundred two of the real property tax law, may be sold by the city pursu-
 ant  to  this  chapter, where such emergency repair charges component or
 alternative enforcement expenses and fees component of such tax lien, as
 of the date of the first  publication,  pursuant  to  subdivision  a  of
 section  11-320  of  this chapter, of the notice of sale: (i) shall have
 remained unpaid in whole or in part for one year,  and  (ii)  equals  or
 exceeds  the sum of one thousand dollars or, beginning on January first,
 two thousand twelve, in the case of any class two  residential  property
 owned by a company organized pursuant to article XI of the state private
 housing finance law [that is not a residential condominium or a residen-
 tial  cooperative],  as such class of property is defined in subdivision
 one of section eighteen hundred two of the real property  tax  law,  for
 two  years,  and  equals  or  exceeds  the sum of five thousand dollars;
 provided, however, that  such  emergency  repair  charges  component  or
 alternative enforcement expenses and fees component of such tax lien may
 only be sold pursuant to this subdivision on any one, two or three fami-

 S. 5749                            15
 
 ly  residential real property in class one, where such one, two or three
 family residential property in class one is not the primary residence of
 the owner. After such sale, any such emergency repair charges  component
 or  alternative enforcement expenses and fees component of such tax lien
 may be transferred in the manner provided by this chapter.
   a-5. In addition to any sale authorized  pursuant  to  subdivision  a,
 a-1,  a-2  or  a-3  of this section and notwithstanding any provision of
 this chapter to the contrary, beginning on  March  first,  two  thousand
 eleven,  a  subsequent tax lien on any class of real property, or begin-
 ning on January first, two thousand twelve in the case of any class  two
 residential property owned by a company organized pursuant to article XI
 of  the  state  private  housing  finance law [that is not a residential
 condominium or a residential cooperative], a subsequent tax lien on such
 property, may be sold by the city pursuant to this  chapter,  regardless
 of  the length of time such subsequent tax lien, or any component of the
 amount thereof, shall have remained unpaid, and regardless of the amount
 of such subsequent tax lien. After such sale, any  such  subsequent  tax
 lien,  or any component of the amount thereof, may be transferred in the
 manner provided by this chapter. For purposes of this  subdivision,  the
 term  "subsequent  tax  lien"  shall  mean  the emergency repair charges
 component or alternative enforcement expenses and fees component,  where
 such  emergency  repair  charges  accrued on or after January first, two
 thousand six and are made a lien pursuant to  section  27-2144  of  this
 code, or where such alternative enforcement expenses and fees are made a
 lien  pursuant to section 27-2153 of this code, of any tax lien on prop-
 erty that becomes such on or after the date of  sale  of  any  emergency
 repair  charges  component  or alternative enforcement expenses and fees
 component, of any tax lien on such property that has been sold  pursuant
 to  this  chapter, provided that the prior tax lien remains unpaid as of
 the date of the first publication, pursuant to subdivision a of  section
 11-320  of  this  chapter,  of  the notice of sale of the subsequent tax
 lien. Nothing in this subdivision shall be deemed to  limit  the  rights
 conferred  by section 11-332 of this chapter on the holder of a tax lien
 certificate with respect to a subsequent tax lien.
   § 15.  Subparagraph (i) of paragraph 2 of subdivision b  and  subpara-
 graph  (ii)  of  paragraph  1  of subdivision h of section 11-320 of the
 administrative code of the city of New York, subparagraph (i)  of  para-
 graph  2 of subdivision b as amended by local law number 147 of the city
 of New York for the year 2013 and subparagraph (ii) of  paragraph  1  of
 subdivision  h  as  added by local law number 15 of the city of New York
 for the year 2011, are amended to read as follows:
   (i) Such notices shall also include,  with  respect  to  any  property
 owner in class one, CLASS ONE-A or class two, as such classes of proper-
 ty are defined in subdivision one of section eighteen hundred two of the
 real property tax law, an exemption eligibility checklist. The exemption
 eligibility checklist shall also be posted on the website of the depart-
 ment no later than the first business day after March fifteenth of every
 year  prior to the date of sale, and shall continue to be posted on such
 website until ten days prior to the date of sale.  Within  ten  business
 days of receipt of a completed exemption eligibility checklist from such
 property  owner,  provided that such receipt occurs prior to the date of
 sale of any tax lien or tax liens on his or her property, the department
 of finance shall review such checklist to determine, based on the infor-
 mation provided by the property owner, whether such property owner could
 be eligible for any exemption, credit or other benefit that would  enti-
 tle  them  to  be  excluded  from a tax lien sale and, if the department

 S. 5749                            16

 determines that such property owner  could  be  eligible  for  any  such
 exemption,  credit  or  other benefit, shall mail such property owner an
 application for the appropriate exemption, credit or other benefit.  If,
 within  twenty  business  days  of  the  date the department mailed such
 application, the department has not  received  a  completed  application
 from  such property owner, the department shall mail such property owner
 a second application, and shall telephone the  property  owner,  if  the
 property owner has included his or her telephone number on the exemption
 eligibility checklist.
   (ii)  all  class two residential property owned by a company organized
 pursuant to article XI of the state private housing finance law [that is
 not a residential condominium or a residential cooperative] on which any
 tax lien has been sold pursuant to subdivision a, a-2 or a-4 of  section
 11-319 of this title.
   §  16. Subdivision (a) of section 11-354 of the administrative code of
 the city of New York, as amended by local law number 37 of the  city  of
 New York for the year 1996, is amended to read as follows:
   (a) Notwithstanding any other provision of law and notwithstanding any
 omission  to  hold  a tax lien sale, whenever any tax, assessment, sewer
 rent, sewer surcharge, water rent,  any  charge  that  is  made  a  lien
 subject to the provisions of this chapter or chapter four of this title,
 or  interest and penalties thereon, has been due and unpaid for a period
 of at least one year from the date on which the tax, assessment or other
 legal charge represented thereby became a lien, or in the  case  of  any
 class one property or any class [two] ONE-A property [that is a residen-
 tial condominium or residential cooperative], as such classes of proper-
 ty are defined in subdivision one of section eighteen hundred two of the
 real  property tax law, or in the case of a multiple dwelling owned by a
 company organized pursuant to article XI of the private housing  finance
 law with the consent and approval of the department of housing preserva-
 tion and development, for a period of at least three years from the date
 on  which  the  tax, assessment or other legal charge became a lien, the
 city, as owner of a tax lien, may maintain  an  action  in  the  supreme
 court  to  foreclose  such  lien.  Such  action shall be governed by the
 procedures set forth in section 11-335 of this chapter; provided, howev-
 er, that such parcel shall only  be  sold  to  the  highest  responsible
 bidder. Such purchaser shall be deemed qualified as a responsible bidder
 pursuant to such criteria as are established in rules promulgated by the
 commissioner  of  finance  after  consultation  with the commissioner of
 housing preservation and development.
   § 17. The opening paragraph of subdivision 4 of section 11-401 of  the
 administrative  code  of  the  city  of  New York, as added by local law
 number 152 of the city of New York for the year 2017, is amended to read
 as follows:
   "Distressed property." Any parcel of class one, CLASS ONE-A  or  class
 two  real  property  that  is subject to a tax lien or liens 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, CLASS ONE-A,  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:

 S. 5749                            17
 
   § 18. Subdivisions a and b of section 11-401.1 of  the  administrative
 code  of  the  city  of New York, as added by local law number 37 of the
 city of New York for the year 1996, are amended to read as follows:
   a. The commissioner of finance shall, not less than sixty days preced-
 ing  the  date  of  the  sale  of a tax lien or tax liens, submit to the
 commissioner of housing preservation and development  a  description  by
 block  and  lot,  or by such other identification as the commissioner of
 finance may deem appropriate, of any parcel of class one, CLASS ONE-A or
 class two real property on which there is a tax lien that may  be  fore-
 closed  by the city. The commissioner of housing preservation and devel-
 opment shall determine, and direct the commissioner of finance, not less
 than ten days preceding the date of the sale of a tax lien or tax liens,
 whether any such parcel is a distressed property as defined in  subdivi-
 sion four of section 11-401 of this chapter. Any tax lien on a parcel so
 determined  to  be  a  distressed property shall not be included in such
 sale. In connection with a subsequent sale of a tax lien or  tax  liens,
 the  commissioner of finance may, not less than sixty days preceding the
 date of the sale, resubmit to the commissioner of  housing  preservation
 and  development  a description by block and lot, or by such other iden-
 tification as the commissioner of finance may deem appropriate,  of  any
 parcel  of  class  one,  CLASS ONE-A or class two real property that was
 previously determined to be a distressed property pursuant to this para-
 graph and on which there is a tax lien that  may  be  included  in  such
 sale.  The  commissioner  of  housing preservation and development shall
 determine, and direct the commissioner of finance,  not  less  than  ten
 days  preceding  the  date  of  the  sale, whether such parcel remains a
 distressed property. If the commissioner  of  housing  preservation  and
 development  determines  that  the  parcel is not a distressed property,
 then the tax lien on the parcel may be included in the sale.
   b. The commissioner of housing preservation and development may  peri-
 odically  review whether a parcel of class one, CLASS ONE-A or class two
 real property that is subject to subdivision c of this section or subdi-
 vision j of section 11-412.1 of this chapter remains a distressed  prop-
 erty. If the commissioner determines that the parcel is not a distressed
 property  as defined in subdivision four of section 11-401 of this chap-
 ter, then the parcel shall not be subject to such subdivisions.
   § 19. Subdivision b of section 11-404 of the  administrative  code  of
 the  city  of New York, as amended by local law number 37 of the city of
 New York for the year 1996, is amended to read as follows:
   b. A tax lien on any class one property or any class [two] ONE-A prop-
 erty [that is a residential condominium or residential cooperative],  as
 such classes of property are defined in subdivision one of section eigh-
 teen  hundred  two  of  the  real  property tax law, and on any multiple
 dwelling owned by a company organized pursuant  to  article  XI  of  the
 private housing finance law with the consent and approval of the depart-
 ment of housing preservation and development, shall not be foreclosed in
 the manner provided in this chapter until such tax lien has been due and
 unpaid  for  a period of at least three years from the date on which the
 tax, assessment or other legal charge represented thereby became a lien.
   § 20. Paragraph 5 of subdivision c of section 11-405 of  the  adminis-
 trative code of the city of New York, as added by local law number 37 of
 the city of New York for the year 1996, is amended to read as follows:
   (5)  Notwithstanding  paragraph one, two or three of this subdivision,
 with respect to installment agreements duly made, executed and filed  on
 or after the date on which this paragraph takes effect, the commissioner
 of  finance  may  also  exclude  or thereafter remove from such list any

 S. 5749                            18
 
 parcel of class one, CLASS ONE-A or class two real property, other  than
 a parcel described in paragraph four of this subdivision, as to which an
 agreement  has been duly made, executed and filed with such commissioner
 for  the  payment  of  the  delinquent taxes, assessments or other legal
 charges, and the interest and penalties thereon,  in  installments.  The
 first  installment thereof shall be paid upon the filing of the install-
 ment agreement with the commissioner and shall be in an amount equal  to
 not  less  than  fifteen  percent of the total amount of such delinquent
 taxes, assessments or other legal charges and the interest and penalties
 thereon. The remaining installments, which shall be twice the number  of
 unpaid  quarters  of  real  estate  taxes or the equivalent thereof, but
 which shall in no event exceed thirty-two in number,  shall  be  payable
 quarterly on the first days of July, October, January and April. For the
 purposes  of  calculating  the  number  of  such remaining installments,
 unpaid real estate taxes that are due and payable on other than a  quar-
 terly basis shall be deemed to be payable on a quarterly basis.
   § 21. Section 581 of the real property tax law is REPEALED.
   §  22.  Subdivision  1  of  section 339-y of the real property law, as
 amended by chapter 218 of the laws of 1986, subparagraph (ii)  of  para-
 graph  (d)  as amended by chapter 223 of the laws of 1989, paragraph (e)
 as added by chapter 135 of the laws of 1996 and paragraph (f)  as  added
 by chapter 293 of the laws of 1997, is amended to read as follows:
   1.  (a)  With  respect  to all property submitted to the provisions of
 this article other than property which is the  subject  of  a  qualified
 leasehold  condominium, each unit and its common interest, not including
 any personal property, shall be deemed to  be  a  parcel  and  shall  be
 subject  to  separate  assessment  and  taxation by each assessing unit,
 school district, special district, county or other taxing unit, for  all
 types of taxes authorized by law including but not limited to special ad
 valorem  levies and special assessments, except that the foregoing shall
 not apply to a unit held under lease or sublease unless the  declaration
 requires  the  unit  owner  to  pay  all taxes attributable to his unit.
 Neither the building, the property nor any of the common elements  shall
 be deemed to be a parcel.
   (b)  [In  no  event shall the aggregate of the assessment of the units
 plus their common interests exceed the total valuation of  the  property
 were the property assessed as a parcel.
   (c)]  For  the  purposes  of  this and the next succeeding section the
 terms "assessing unit",  "assessment",  "parcel",  "special  ad  valorem
 levy",  "special assessment", "special district", "taxation" and "taxes"
 shall have the meanings specified in section one hundred two of the real
 property tax law.
   [(d) The provisions of paragraph (b) of  this  subdivision  shall  not
 apply to such real property classified within:
   (i) on and after January first, nineteen hundred eighty-six, class one
 of  section one thousand eight hundred two of the real property tax law;
 or
   (ii) on and after January first,  nineteen  hundred  eighty-four,  the
 homestead  class  of  an  approved  assessing unit which has adopted the
 provisions of section one thousand nine hundred three of the real  prop-
 erty  tax law, or the homestead class of the portion outside an approved
 assessing unit of an eligible split school district  which  has  adopted
 the  provisions of section nineteen hundred three-a of the real property
 tax law; provided, however, that, in an approved  assessing  unit  which
 adopted the provisions of section one thousand nine hundred three of the
 real  property  tax law prior to the effective date of this subdivision,

 S. 5749                            19

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