S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3642
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2021
                                ___________
 
 Introduced  by  Sen.  ORTT  --  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
   the  city of Niagara Falls to add unpaid housing code violation penal-
   ties, costs and fines to such city's annual tax levy

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  real  property  tax  law  is amended by adding a new
 section 905-a to read as follows:
   § 905-A. COLLECTION OF UNPAID HOUSING CODE VIOLATION  PENALTIES;  CITY
 OF  NIAGARA  FALLS;  LEVY. 1.   AUTHORIZATION. IN ADDITION TO AND NOT IN
 LIMITATION OF ANY POWER OTHERWISE GRANTED BY LAW, THE  CITY  OF  NIAGARA
 FALLS  IS  HEREBY AUTHORIZED TO COLLECT ANY UNPAID HOUSING, BUILDING AND
 FIRE CODE VIOLATION PENALTIES, COSTS AND FINES THROUGH PLACEMENT BY  THE
 CITY  CONTROLLER  ON  THE  CITY'S ANNUAL TAX LEVY IN ACCORDANCE WITH THE
 PROVISIONS OF THIS SECTION.
   2. ELIGIBILITY. IN ORDER TO BE ELIGIBLE FOR PLACEMENT ON THE  CITY  OF
 NIAGARA  FALLS'  ANNUAL  TAX  LEVY SUCH UNPAID CODE VIOLATION PENALTIES,
 COSTS AND FINES SHALL HAVE BEEN ADJUDICATED AND IMPOSED THROUGH A  JUDG-
 MENT  IN  A COURT OF COMPETENT JURISDICTION ON AN OWNER OF REAL PROPERTY
 WITHIN THE CITY AND RECORDED BY THE COUNTY CLERK, AS  CERTIFIED  BY  THE
 CITY'S  CORPORATION  COUNSEL  TO  THE  CITY CONTROLLER AND HAVE REMAINED
 UNPAID FOR ONE YEAR AFTER THE FINAL ADJUDICATION AND EXHAUSTION  OF  ALL
 APPEALS  RELATING  TO  THE  IMPOSITION OF THE FINES FOR A CODE VIOLATION
 PRECEDING THE PLACEMENT ON THE CITY'S TAX LEVY.
   3. MINIMUM AMOUNT OWED. TO QUALIFY FOR PLACEMENT ON THE TAX  LEVY  THE
 AMOUNT  OWED FOR UNPAID CODE VIOLATIONS MUST BE AT LEAST FIVE PERCENT OF
 THE AMOUNT OF THE TAX ASSESSED VALUE OF THE PROPERTY.
   4. LEVY. SUCH CODE VIOLATION PENALTY, COST OR FINE AS SET FORTH  IN  A
 COPY  OF  THE JUDGMENT CERTIFIED BY THE CORPORATION COUNSEL TO SUCH CITY
 CONTROLLER SHALL BE SET DOWN IN THE ANNUAL TAX LEVY  UNDER  THE  HEADING
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07713-01-1

 S. 3642                             2
 
 UNCOLLECTED  FINES  AND  PENALTIES  AND  IN ACCORDANCE WITH THIS SECTION
 SHALL BE LEVIED, ENFORCED AND COLLECTED IN THE SAME MANNER, BY THE  SAME
 PROCEEDINGS,  AT  THE SAME TIME, UNDER THE SAME PENALTIES AND HAVING THE
 SAME  LIEN  UPON  THE  PROPERTY ASSESSED AS THE TAX LEVY OF SUCH MUNICI-
 PALITY AND AS A PART THEREOF.
   5. NOTICE. THE CITY OF NIAGARA FALLS SHALL NOTIFY ALL OWNERS OR  KNOWN
 INTERESTED  PARTIES OF RECORD OF THE PLACEMENT OF THE CODE VIOLATIONS ON
 THE CITY TAX LEVY AS UNCOLLECTED FINES AND PENALTIES WITHIN THIRTY  DAYS
 OF PLACEMENT, PURSUANT TO SECTION THREE HUNDRED EIGHT OF THE CIVIL PRAC-
 TICE  LAW  AND RULES. THE NOTICE SHALL INCLUDE THE DATE OR DATES OF SUCH
 VIOLATIONS, THE DESCRIPTION OF THE VIOLATIONS, THE AMOUNT OWED, A STATE-
 MENT DETAILING THE FORECLOSURE PROCESS THAT WILL OCCUR IF THE VIOLATIONS
 REMAIN UNPAID, THE PROCESS TO CLAIM ANY SURPLUS FUNDS  AND  THE  CONTACT
 INFORMATION FOR THE CITY'S OFFICE IN CHARGE OF RECEIVING PAYMENTS.
   6.  TAX  YEAR.  ANY  UNPAID CODE VIOLATIONS SHALL BE PLACED ON THE TAX
 ROLL THE CITY OF NIAGARA FALLS IS CURRENTLY IN AND SHALL NOT  BE  PLACED
 ON A LIST, ROLL OR LEVY OF DELINQUENT TAXES.
   7.  OWNER OCCUPIED. NOTWITHSTANDING ANY OTHER APPLICABLE PROVISIONS OF
 LAW, NOTHING IN THIS SECTION SHALL BE APPLIED TO A RESIDENTIAL  DWELLING
 THAT IS OWNER-OCCUPIED OR IS THE PRIMARY RESIDENCE OF A HOMEOWNER.
   8.  TENANTS.  PRIOR  TO THE PLACEMENT OF ANY PROPERTY WITH UNPAID CODE
 VIOLATIONS ON THE TAX LEVY, THE CITY OF NIAGARA FALLS  SHALL  DEVELOP  A
 PROGRAM  TO  ASSIST TENANTS RESIDING IN A DWELLING AT RISK FOR TAX FORE-
 CLOSURE DUE TO UNPAID CODE VIOLATIONS. SUCH PROGRAM SHALL INCLUDE  HOUS-
 ING  COUNSELING ASSISTANCE OR OTHER SUPPORT IN RELOCATING THE TENANTS TO
 SUITABLE HOUSING PRIOR TO THE TAX FORECLOSURE.
   9. PAYMENT PLAN. NOTHING IN THIS SECTION SHALL PRECLUDE  AN  OWNER  OR
 LANDLORD  FROM  ENTERING  INTO  A  PAYMENT PLAN WITH THE CITY OF NIAGARA
 FALLS 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.
   (B) THE DETERMINATION OF WHETHER OR NOT THE CODE VIOLATIONS HAVE  BEEN
 CURED  SHALL  BE MADE BY THE CITY OF NIAGARA FALLS' ENFORCING OFFICER IN
 CHARGE OF ENSURING COMPLIANCE WITH  APPLICABLE  HOUSING,  BUILDING,  AND
 FIRE  CODES SUCH AS A CODE ENFORCEMENT OFFICER. AN APPEAL OF THIS DETER-
 MINATION MAY BE MADE TO THE CITY'S ZONING  BOARD  OF  APPEALS  OR  OTHER
 LOCAL ADMINISTRATIVE BODY AS PROVIDED FOR IN LOCAL LAW. THE FINAL DETER-
 MINATION MADE BY THE ADMINISTRATIVE BODY SHALL BE REVIEWABLE PURSUANT TO
 ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
   (C)  THIS  SECTION  SHALL  NOT  BE  APPLICABLE  TO ANY CAUSE OF ACTION
 BROUGHT FOR MONEY DUE BASED ON THE CURING OF CODE VIOLATIONS  UNDER  ANY
 FORM FOR RECEIVERSHIP OR A MECHANIC'S 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.

 S. 3642                             3
 
   (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.
   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 AS PROVIDED  UNDER  LOCAL  LAW.
 THIS PROVISION SHALL NOT APPLY TO A SALE OF A PROPERTY AT A TAX FORECLO-
 SURE 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 FORECLO-
 SURE THE AMOUNT OF THE SURPLUS FUNDS RETURNED TO THE FORMER OWNER  SHALL
 BE  PROPORTIONATE  TO  THE  AMOUNT OF UNPAID CODE VIOLATIONS OWED IN THE
 TOTAL AMOUNT OF DEBT OWED TO THE CITY OF NIAGARA FALLS.  FOR THE PURPOSE
 OF THIS SECTION,  "SURPLUS  FUNDS"  SHALL  MEAN  THE  BALANCE  OF  MONEY
 RECEIVED AFTER AUCTION OF A PROPERTY AT A TAX FORECLOSURE SALE MINUS THE
 AMOUNT  OWED  FOR  CODE  VIOLATIONS  AND  THE  COSTS AND ATTORNEYS' FEES
 INCURRED IN THE COLLECTION OF THE FEES BY THE CITY.
   13. BALANCE DUE. IF AFTER  AN  AUCTION  A  BALANCE  IS  DUE  FOR  CODE
 VIOLATIONS,  THE  CITY  OF  NIAGARA  FALLS  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 SALE.
   § 2. This act shall take effect immediately.