S T A T E   O F   N E W   Y O R K
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                                   2327
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 25, 2023
                                ___________
 
 Introduced  by M. of A. MORINELLO, MILLER, NORRIS, McDONOUGH, MANKTELOW,
   DeSTEFANO -- read once and referred to the Committee on Real  Property
   Taxation
 
 AN  ACT  to  amend the real property tax law, in relation to authorizing
   the city of 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01840-01-3
              

 A. 2327                             2
 
 CONTROLLER  SHALL  BE  SET DOWN IN THE ANNUAL TAX LEVY UNDER THE HEADING
 UNCOLLECTED FINES AND PENALTIES AND  IN  ACCORDANCE  WITH  THIS  SECTION
 SHALL  BE LEVIED, ENFORCED AND COLLECTED IN THE SAME MANNER, BY THE SAME
 PROCEEDINGS,  AT  THE SAME 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.
 A. 2327                             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.