S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7763
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 7, 2023
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  relating  to  a  temporary  in  rem foreclosure moratorium; and
   providing for the repeal of such provisions upon the expiration there-
   of
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that the United
 States  Supreme  Court  Case  of  Tyler  v.  Hennepin County, Minnesota,
 decided on May 25, 2023, has created legal uncertainty  with  regard  to
 how  municipalities  must  conduct their in rem delinquent real property
 tax lien foreclosures and return any surplus funds  thereby  derived  to
 the  appropriate parties, when necessary. As such, the legislature seeks
 to find a solution that will provide legal certainty in this process and
 ensure the rights of property owners and municipalities  are  adequately
 protected.
   §  2.  No tax district, as defined in subdivision 6 of section 1102 of
 the real property tax law or enforcing officer, as defined  in  subdivi-
 sion 3 of such section, shall convey to any person title to any tax-del-
 inquent  parcel of real property which has been the subject of an in rem
 tax foreclosure  proceeding  in  any  court  of  competent  jurisdiction
 against  any  parcel  or  parcels  of  real  property located within the
 geographic boundaries of such tax district until the expiration  of  the
 moratorium under this act.
   § 3. This act shall not apply to:
   1.  properties owned by a tax district which were acquired at any time
 after May 25, 2023 and prior to July 1, 2023, pursuant to article 11  of
 the  real  property  tax  law, or where the tax district filed the final
 foreclosure judgement order with the court within such time period.   In
 the  event  that  any  tax district has acquired title to any delinquent
 parcel of real property prior to July 1, 2023 pursuant to an in rem  tax
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11739-05-3
              

 A. 7763                             2
 
 foreclosure  proceeding  under  article 11 of the real property tax law,
 the tax district may auction said parcel or parcels contingent upon  the
 foreclosing  tax  district holding any and all surplus funds in a segre-
 gated trust account to be maintained by the chief fiscal officer of such
 tax  district  until  such time that this moratorium is repealed on June
 30, 2024; or
   2. a tax district that has  a  mechanism  by  which  the  municipality
 offers  the return of surplus funds to the delinquent tax property owner
 and such municipality: (a) on January 1, 1993, was authorized to enforce
 the collection of delinquent taxes pursuant to a  county  charter,  city
 charter, administrative code or special law; or (b) adopted a local law,
 no  later  than  July  1, 1994 providing that the collection of taxes in
 such county, city or town shall continue to be enforced pursuant to such
 charter, code or special law, as such charter, code or special  law  may
 from  time  to  time  be amended; and (c) filed a copy of such local law
 with the commissioner of taxation and finance no later  than  August  1,
 1994.
   §  4.  This  act shall take effect immediately and shall expire and be
 deemed repealed on and after June 30, 2024.