NY State Senate Bill 2023-S8512

Current Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 07, 2024	referred to local government

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2023-S8512 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §924-a, add §§1185, 1185-a & 1194-a, Art 11 Title 6 §§1195 - 1197, RPT L

2023-S8512 (ACTIVE) - Summary

Relates to protections for homeowners in the event of tax lien foreclosure; establishes notice and hearing requirements and a homeowners bill of rights.

2023-S8512 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8512

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to tax lien fore-
closure

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to implement procedures for returning
surplus funds to homeowners in response to Tyler v. Hennepin County and
to provide homeowners at risk of tax lien foreclosures the same
protections that are afforded to borrowers in residential mortgage fore-
closure proceedings.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 924-a of the real property tax law
to cap the interest charged on delinquent taxes at sixteen percent.

Section 2 of the bill amends the real property tax law by creating a new

section 1185 titled "homeowner bill of rights." Under this section,
owners of residential property with fewer than four units subject to tax
liens have the following rights, whether tax liens are sold to investors
who then prosecute foreclosure proceedings or tax lien foreclosures
pursued by local taxing authorities:

All foreclosures for property tax liens must be judicial proceedings;

If the owner is entitled to an exemption based on age, disability, or
veteran status, the property may not be foreclosed on;

An exemption based on age, disability, or veteran status cannot be
removed or waived for non-payment of property taxes;

The owner must be told the amount they owe for each tax year, how long
they have to pay their delinquent taxes before a foreclosure is initi-
ated, what form of payment wil be accepted, where to make a payment,
and contact information for the taxing authority responsible for assist-
ing homeowners to resolve tax arrears;

The owner must receive a pre-foreclosure notice before a foreclosure can
proceed;

The owner must have a chance to participate in a mandatory settlement
conference process to avert foreclosure;

Any payments must be applied to the oldest liens first; If the residen-
tial property is foreclosed on, the owner must receive any money remain-
ing after the tax lien is satisfied; and The owner's right to surplus
funds remains even when the parcel is transferred to a municipality.

Section 3 of the bill amends the real property tax law by creating a new
section 1185-a that describes the contents and requirements of the pre-
closure notice required by section 1185 of the real property tax law,
which is designed to be interpreted consistently with the real property
act and proceedings law section 1104, which requires strict compliance
with all of its provisions.
The pre-foreclosure notice must clearly state the amount the homeowner
owes for each tax ear, the amount the owner must pay to become current
on their property taxes, provide information about local housing coun-
seling agencies and how to contact them, provide contact information for
the taxing authority, and notify homeowners that they may be entitled to
an exemption from property taxes based on age, disability, or veteran
status.

The pre-foreclosure notice must also tell the homeowner that they have
90 days from the date the pre-closure notice was mailed to pay their
delinquent taxes before the taxing authority can initiate a foreclosure.

Section 4 of the bill amends section 1104 of the real property tax law
to make the other bill sections mandatory for all jurisdictions, even
those which previously opted out of or were exempted from Article 11
pursuant to Settion 1104(2).

Section 5 of the bill requires tax districts to provide notice of avail-
able exemptions to homeowners on property tax collection notices and the
designated contact person to answer questions about tax exemptions and
eligibility. The section also creates a senior citizen delinquent tax
deferral program and authorizes tax districts to create delinquent tax
repayment plans.

Section six of the bill provides notice of potential just compensation
to homeowners after foreclosure, notice of just compensation with a
valuation of the property at the date of the taking, and the process for
a homeowner to contest the valuation.

Section seven states the effective date.

 
JUSTIFICATION:

When a homeowner owes property taxes or other property-related charges
for an extended period, those delinquent taxes become liens that put the
property at risk of a tax lien foreclosure. For countless New Yorkers,
the accumulated equity in their home is their only significant asset.
Historically, municipalities retained that equity when foreclosing for
unpaid taxes.

In Tyler v. Hennepin County, the United States Supreme Court decided
that a municipality retaining equity is unconstitutional and just
compensation must be awarded to the former owner under the Takings
Clause. As a result of this decision, states all over the country,
including New York, must amend their tax lien foreclosure processes.
While we are amending the law to address the uncertainty about returning
surplus, we should make changes necessary to prevent the loss of
homeownership.

These property tax foreclosures disproportionately impact homeowners who
have satisfied their mortgages. Because the typical mortgage products
last 30 years, many of these owners are retired or approaching retire-
ment and are living on fixed incomes. As such, inequity relating to tax
liens and their collections falls most heavily on senior citizens. Addi-
tionally, research has consistently shown that more liens are generated
in communities of color. These factors contribute to gentrification and
stripping of equity and generational wealth in communities adversely
impacted by appreciating real estate values.
Tax lien foreclosures are governed by Article 11 of the Real Property
Tax Law Article 11, but many jurisdictions were exempted from the law or
were permitted to opt out. Therefore, there are many parts of the State
of New York that are not governed by the provisions of state law. This
has created a hodgepodge of property tax collection schemes throughout
the state and a homeowner's rights and the protections they are afforded
are entirely dependent on where they live. Even for those localities to
which Article 11 applies, many of the provisions in it are permissive,
instead of prescriptive and therefore carry little force or authority.

Additionally, Article 11 does not afford homeowners facing property tax
foreclosures the same consumer protections that are available to home-
owners in residential mortgage foreclosure actions and proceedings, such
as pre-foreclosure notices under Article 13 of the Real Property Actions
and Proceedings Law and mandatory settlement conferences under CPLR
3408. In many jurisdictions tax lien foreclosures are obscure processes
with strict deadlines that can be detrimental for homeowners and have
dire consequences because of the system's rigidity. The absence of these
protections is especially harmful because tax lien foreclosures - due to
the low amounts of debt involved as compared to the value of the encum-
bered homes - often can be easily resolved through affordable repayment
plans or even lump sum payments (where the debt has been significantly
increased by exorbitant interest and fees). This is especially the case
for senior homeowners who have paid off their mortgages, but who may be
tax burdened or who may have experienced health challenges that have
caused their property taxes to become delinquent.

Foreclosure that are not averted can represent a loss of substantial
equity if a home is sold to satisfy a tax lien that represents a small
proportion of the home's value. Indeed, homeowners in some jurisdictions
face total loss of the equity in their homes as the tax lien foreclosure
is accomplished by a simple transfer to the municipality and a complete
termination of all ownership rights.

These problems are exacerbated in some municipalities or counties that
sell tax liens to Wall Street investors who relentlessly pursue foreclo-
sure and refuse to engage in the sort of basic loss mitigation proce-
dures that are required in the mortgage foreclosure context.  Providing
basic due process protections such as a pre-foreclosure notice compara-
ble to those required in mortgage foreclosures - and governed by the
same legal requirements - and a mandatory settlement conference process
governed by a good faith negotiation standard can promote earlier resol-
ution of tax lien arrears and ensure that taxing authorities are not
promoting displacement of vulnerable citizens - and especially senior
citizens - and gentrification in New York's communities of color.

This bill aims to protect the due process rights of homeowners who are
at risk of losing their homes to property tax foreclosure by granting
them the same protections that are afforded to borrowers in the residen-
tial mortgage foreclosure process - most importantly the right to retain
the equity in their homes, which for many is their only significant
asset.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TED.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S8512 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8512
 
                             I N  S E N A T E
 
                             February 7, 2024
                                ___________
 
 Introduced  by Sens. THOMAS, HARCKHAM -- 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 tax lien fore-
   closure
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision  1  of section 924-a of the real property tax
 law, as amended by chapter 26 of the laws of 2003, is amended to read as
 follows:
   1. The amount of interest to be added on all taxes received after  the
 interest  free period and all delinquent taxes shall be [one-twelfth the
 rate of interest as determined pursuant to subdivision two or  two-a  of
 this section rounded to the nearest one-hundredth of a percentage point]
 SIXTEEN PERCENT PER ANNUM, OR SUCH OTHER AMOUNT AS PRESCRIBED BY SECTION
 FOURTEEN-A OF THE BANKING LAW, except as otherwise provided by a general
 or special law, or a local law adopted by a city pursuant to the munici-
 pal  home  rule law or any special law. Such interest shall be added for
 each month or fraction thereof until such taxes are paid.
   § 2. The real property tax law is amended by adding a new section 1185
 to read as follows:
   § 1185. HOMEOWNER BILL OF RIGHTS. ANY OWNER OF A RESIDENTIAL PROPERTY,
 AS DEFINED IN SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE,  WHO  OCCU-
 PIES SUCH PROPERTY AS THEIR PRIMARY RESIDENCE (OR WHOSE HEIRS OR DISTRI-
 BUTEES OCCUPY THE PROPERTY AS THEIR PRIMARY RESIDENCE WHERE THE HOMEOWN-
 ER  IS  DECEASED)  OR  ANY  PURCHASER  OF  A  CONTRACT FOR A RESIDENTIAL
 PROPERTY (OR SUCCESSOR IN INTEREST TO SUCH PURCHASER) SUBJECT TO  A  TAX
 LIEN  ON  ANY  PARCEL  OF REAL PROPERTY, INCLUDING THOSE LIENS OTHERWISE
 EXEMPT UNDER THIS ARTICLE, SHALL HAVE THE FOLLOWING RIGHTS:
   (A) TO HAVE ANY FORECLOSURE ON ANY REAL PROPERTY TAX LIEN PURSUANT  TO
 SECTION  NINE  HUNDRED  TWO  OF  THIS  CHAPTER  BE A JUDICIAL PROCEEDING
 SPECIFIC TO EACH PARCEL;
   (B) WHERE THE PROPERTY IS THE PRIMARY RESIDENCE OF AN  OWNER  ENTITLED
 TO TAX EXEMPTION BASED ON AGE, DISABILITY, OR VETERAN STATUS, A FORECLO-
 SURE MAY NOT BE MAINTAINED;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14370-01-4
 S. 8512                             2
 
   (C) TO NOT HAVE EXEMPTIONS REMOVED OR WAIVED FOR NONPAYMENT OF PROPER-
 TY TAXES;
   (D)  TO  BE INFORMED OF THE AMOUNT OF TAX DUE, THE NUMBER OF TAX YEARS
 FOR WHICH THE PARCEL HAS BEEN IN ARREARS, THE DATE ON WHICH THE  REDEMP-
 TION  PERIOD  ENDS,  THE  ACCEPTED  FORMS OF PAYMENT, THE LOCATION WHERE
 PAYMENTS SHALL BE MADE, AND THE CONTACT INFORMATION FOR THE  RESPONSIBLE
 TAXING AUTHORITY, INCLUDING BUT NOT LIMITED TO, THE TAXPAYER ADVOCATE OR
 OTHER SIMILAR OFFICE WITHIN THE TAXING AUTHORITY WORKING WITH HOMEOWNERS
 TO RESOLVE TAX ARREARS;
   (E)  TO  RECEIVE  PRE-FORECLOSURE  NOTICES,  WHICH SHALL BE CONDITIONS
 PRECEDENT TO MAINTENANCE OF A FORECLOSURE ON ANY TAX  LIEN  GOVERNED  BY
 THE  SERVICE  REQUIREMENTS  OF SECTION THIRTEEN HUNDRED FOUR OF THE REAL
 PROPERTY ACTIONS AND PROCEEDINGS LAW;
   (F) TO PARTICIPATE IN A MANDATORY SETTLEMENT CONFERENCE PROCESS EQUIV-
 ALENT TO THE PROCESS REQUIRED IN MORTGAGE FORECLOSURE  ACTIONS  PURSUANT
 TO  RULE  THIRTY-FOUR HUNDRED EIGHT OF THE CIVIL PRACTICE LAW AND RULES,
 WHICH SHALL BE GOVERNED BY THE  SAME  GOOD  FAITH  NEGOTIATION  STANDARD
 GOVERNING  THAT PROVISION, WITH THE GOAL OF: (I)  NEGOTIATING A MUTUALLY
 AGREEABLE RESOLUTION TO AVERT FORECLOSURE, INCLUDING,  BUT  NOT  LIMITED
 TO, ESTABLISHING AN AFFORDABLE REPAYMENT PLAN, ABATEMENT OF FEES, PENAL-
 TIES  OR OTHER CHARGES, FORBEARANCE OF AMOUNTS DUE, OR OTHER HOME SAVING
 RESOLUTION; OR (II) WHATEVER OTHER PURPOSES THE COURT DEEMS APPROPRIATE.
 A PARTY PROSECUTING A TAX LIEN  FORECLOSURE  SHALL  BE  PROHIBITED  FROM
 CHARGING THE HOMEOWNER FOR ANY FEES ASSOCIATED WITH PARTICIPATING IN THE
 SETTLEMENT  CONFERENCE. EXPLICITLY INCORPORATED INTO THIS BILL OF RIGHTS
 ARE SUBDIVISIONS (C) THROUGH (N) OF RULE THIRTY-FOUR  HUNDRED  EIGHT  OF
 THE CIVIL PRACTICE LAW AND RULES, AND THE OFFICE OF COURT ADMINISTRATION
 SHALL  WITHIN  NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION PROMUL-
 GATE RULES IMPLEMENTING THIS  MANDATORY  SETTLEMENT  CONFERENCE  PROCESS
 WHICH  SHALL  ADAPT  THE FOREGOING SUBDIVISIONS TO THE NEEDS OF TAX LIEN
 FORECLOSURE CASES AND WHICH SHALL, WITHOUT LIMITATION, INCLUDE A  NOTICE
 OF  THE  SCHEDULING  OF THE CONFERENCE THAT SHALL REQUIRE THE PARTIES TO
 APPEAR AT THE CONFERENCE WITH  REQUIRED  INFORMATION  FOR  A  MEANINGFUL
 CONFERENCE AND WITH AUTHORITY TO ENGAGE IN SETTLEMENT NEGOTIATIONS;
   (G)  TO  APPLY  ANY  PAYMENTS  TOWARD DELINQUENT TAXES IN THE ORDER IN
 WHICH THE LIENS BECAME DUE;
   (H) IN THE EVENT THAT A RESIDENCE IS FORECLOSED UPON, TO  RECEIVE  ANY
 SURPLUS  FOLLOWING THE SALE OF THE PROPERTY AFTER THE TAX LIEN IS SATIS-
 FIED AHEAD OF UNSECURED CREDITORS PURSUANT TO SECTION FIFTY-TWO  HUNDRED
 SIX OF THE CIVIL PRACTICE LAW AND RULES; AND
   (I)  WHERE  THERE  IS A TRANSFER TO A MUNICIPALITY PURSUANT TO SECTION
 ELEVEN HUNDRED THIRTY-SIX OF THIS ARTICLE OR WHERE THERE IS  A  FORECLO-
 SURE  AUCTION  WITH  NO BIDDERS AND THE MUNICIPALITY TAKES POSSESSION OF
 THE PROPERTY, ANY SUBSEQUENT SALE OF  THE  PROPERTY  MUST  BE  AN  ARM'S
 LENGTH  TRANSACTION  IN  WHICH  THE  OWNER  HAS AN ABSOLUTE RIGHT TO ANY
 SURPLUS FUNDS.
   § 3. The real property tax law is amended  by  adding  a  new  section
 1185-a to read as follows:
   §  1185-A.  PRE-FORECLOSURE  NOTICES.  (A)  THE PRE-FORECLOSURE NOTICE
 REQUIRED IN SUBDIVISION (E) OF SECTION  ELEVEN  HUNDRED  EIGHTY-FIVE  OF
 THIS ARTICLE SHALL APPEAR AS FOLLOWS:
 "YOU MAY BE AT RISK OF FORECLOSURE ON A PROPERTY TAX LIEN
 PLEASE READ THE FOLLOWING NOTICE CAREFULLY.
 AS  OF  (DATE), YOUR PROPERTY TAXES HAVE NOT BEEN PAID FOR THE FOLLOWING
 YEARS AND AMOUNTS EACH YEAR:
 S. 8512                             3
 
 THE TOTAL NEEDED TO PAY OFF ALL TAX ARREARS  AS  OF  THE  DATE  OF  THIS
 NOTICE IS:
 UNDER  NEW  YORK  STATE  LAW, WE ARE REQUIRED TO SEND YOU THIS NOTICE TO
 INFORM YOU THAT YOU ARE AT RISK OF LOSING YOUR HOME.
 ATTACHED TO THIS NOTICE IS A LIST OF GOVERNMENT APPROVED  HOUSING  COUN-
 SELING AGENCIES IN YOUR AREA WHICH PROVIDE FREE COUNSELING. YOU CAN ALSO
 CALL  THE  NYS  OFFICE  OF  THE  ATTORNEY GENERAL'S HOMEOWNER PROTECTION
 PROGRAM (HOPP) TOLL-FREE CONSUMER HOTLINE TO BE CONNECTED TO FREE  HOUS-
 ING  COUNSELING OR LEGAL SERVICES IN YOUR AREA AT 1-855-HOME-456 (1-855-
 466-3456), OR VISIT THEIR WEBSITE AT HTTP://WWW.AGHOMEHELP.COM. A STATE-
 WIDE LISTING BY COUNTY  IS  ALSO  AVAILABLE  AT  HTTPS://WWW.DFS.NY.GOV/
 CONSUMER/MORTGNYSNPCOUNSELINGAGENCIES.HTML.   QUALIFIED   FREE  HELP  IS
 AVAILABLE; WATCH OUT FOR COMPANIES OR PEOPLE WHO CHARGE A FEE FOR  THESE
 SERVICES.
 HOUSING  COUNSELORS  FROM  NEW YORK-BASED AGENCIES LISTED ON THE WEBSITE
 ABOVE ARE TRAINED TO HELP HOMEOWNERS  WHO  ARE  HAVING  PROBLEMS  MAKING
 THEIR  TAX PAYMENTS AND CAN HELP YOU FIND THE BEST OPTION FOR YOUR SITU-
 ATION.   IF YOU WISH, YOU  MAY  ALSO  CONTACT  OUR  OFFICE  DIRECTLY  AT
 __________  OR  OUR TAXPAYER ADVOCATE AT __________ , WHO IS RESPONSIBLE
 FOR WORKING WITH HOMEOWNERS TO RESOLVE TAX ARREARS, AND ASK  TO  DISCUSS
 POSSIBLE PAYMENT PLANS AND OTHER OPTIONS.
 PLEASE  NOTE  THAT  IF  YOU  ARE  A SENIOR CITIZEN, PHYSICALLY DISABLED,
 AND/OR A VETERAN, YOU MAY BE ENTITLED TO A PARTIAL EXEMPTION FROM  PROP-
 ERTY  TAXES OR TO HAVE TAX FORECLOSURE DELAYED. THE FOLLOWING EXEMPTIONS
 THAT LOCAL RULES ALLOW THAT COULD PREVENT FORECLOSURE IN YOUR CASE ARE:
 ____ SENIOR CITIZEN
 ____ VETERAN
 ____ PHYSICAL DISABILITY
 WE ENCOURAGE YOU TO CONTACT  OUR  TAXPAYER  ADVOCATE  AT  THE  TELEPHONE
 NUMBER ABOVE IF YOU HAVE ANY QUESTIONS ABOUT WHETHER YOU QUALIFY FOR ANY
 OF THESE EXEMPTIONS.
 WHILE WE CANNOT ASSURE THAT A MUTUALLY AGREEABLE RESOLUTION IS POSSIBLE,
 WE ENCOURAGE YOU TO TAKE IMMEDIATE STEPS TO TRY TO ACHIEVE A RESOLUTION.
 THE LONGER YOU WAIT, THE FEWER OPTIONS YOU MAY HAVE.
 IF  YOU HAVE NOT TAKEN ANY ACTIONS TO RESOLVE THIS MATTER WITHIN 90 DAYS
 FROM THE DATE THIS NOTICE WAS MAILED (OR SOONER IF YOU CEASE TO LIVE  IN
 THE DWELLING AS YOUR PRIMARY RESIDENCE), WE MAY COMMENCE LEGAL ACTION OR
 OTHER  REMEDIES AGAINST YOU TO FORECLOSE THE TAX LIEN, WHICH MAY EVENTU-
 ALLY RESULT IN EVICTION FROM YOUR HOME.
 UNDER NEW YORK STATE LAW, YOU MAY BE BARRED FROM ENTERING INTO A PAYMENT
 PLAN OR FROM BEING PERMITTED TO MAKE ANY PAYMENT TO SAVE YOUR HOME AFTER
 THE "REDEMPTION DATE".
 IN YOUR CASE, THE "REDEMPTION DATE" IS _____.
 IMPORTANT: YOU HAVE THE RIGHT TO REMAIN IN YOUR HOME UNTIL YOU RECEIVE A
 COURT ORDER TELLING YOU TO LEAVE THE PROPERTY; HOWEVER, YOU MAY LOSE THE
 RIGHT TO CONTINUE OWNERSHIP OF YOUR HOME AFTER THE REDEMPTION DATE. IF A
 FORECLOSURE ACTION IS FILED AGAINST YOU IN COURT,  YOU  STILL  HAVE  THE
 RIGHT TO REMAIN IN THE HOME UNTIL A COURT ORDERS YOU TO LEAVE.
 THIS  NOTICE IS NOT AN EVICTION NOTICE, AND A FORECLOSURE ACTION HAS NOT
 YET BEEN COMMENCED AGAINST YOU."
   (B) THE NOTICE REQUIRED IN SUBDIVISION (E) OF SECTION  ELEVEN  HUNDRED
 EIGHTY-FIVE  OF  THIS  ARTICLE SHALL BE SENT BY SUCH TAXING AUTHORITY OR
 PURCHASER OF DELINQUENT TAX LIENS TO THE HOMEOWNER (OR HEIRS OR  DISTRI-
 BUTEES  IF  THE  HOMEOWNER IS DECEASED), BY REGISTERED OR CERTIFIED MAIL
 AND ALSO BY FIRST-CLASS MAIL TO THE LAST KNOWN ADDRESS OF THE HOMEOWNER,
 AND TO THE RESIDENCE SUBJECT TO THE TAX LIEN. THE  NOTICES  REQUIRED  BY
 S. 8512                             4
 
 SUBDIVISION  (E)  OF  SECTION ELEVEN HUNDRED EIGHTY-FIVE OF THIS ARTICLE
 SHALL BE SENT BY THE TAXING AUTHORITY OR  PURCHASER  OF  DELINQUENT  TAX
 LIENS  IN  A SEPARATE ENVELOPE FROM ANY OTHER MAILING OR NOTICE.  NOTICE
 IS  CONSIDERED GIVEN AS OF THE DATE IT IS MAILED. THE NOTICE REQUIRED BY
 SUBDIVISION (E) OF SECTION ELEVEN HUNDRED EIGHTY-FIVE  OF  THIS  ARTICLE
 SHALL  CONTAIN  A CURRENT LIST OF AT LEAST FIVE HOUSING COUNSELING AGEN-
 CIES SERVING THE COUNTY WHERE THE PROPERTY  IS  LOCATED  FROM  THE  MOST
 RECENT  LISTING AVAILABLE FROM THE DEPARTMENT OF FINANCIAL SERVICES. THE
 LIST SHALL INCLUDE THE COUNSELING AGENCIES'  LAST  KNOWN  ADDRESSES  AND
 TELEPHONE  NUMBERS.  THE  DEPARTMENT  OF  FINANCIAL  SERVICES SHALL MAKE
 AVAILABLE ON ITS WEBSITE A LISTING, BY COUNTY,  OF  SUCH  AGENCIES.  THE
 TAXING  AUTHORITY  OR  PURCHASER  OF DELINQUENT TAX LIENS SHALL USE SUCH
 LISTS TO MEET THE REQUIREMENTS OF THIS SECTION.
   (C) FOR ANY HOMEOWNER KNOWN TO HAVE LIMITED ENGLISH  PROFICIENCY,  THE
 NOTICE REQUIRED BY SUBDIVISION (E) OF SECTION ELEVEN HUNDRED EIGHTY-FIVE
 OF  THIS  ARTICLE  SHALL  BE  IN  THE  HOMEOWNER'S NATIVE LANGUAGE (OR A
 LANGUAGE IN WHICH  THE  HOMEOWNER  IS  PROFICIENT),  PROVIDED  THAT  THE
 LANGUAGE  IS  ONE OF THE SIX MOST COMMON NON-ENGLISH LANGUAGES SPOKEN BY
 INDIVIDUALS WITH LIMITED ENGLISH PROFICIENCY IN THE STATE OF  NEW  YORK,
 BASED ON UNITED STATES CENSUS DATA. THE DEPARTMENT OF FINANCIAL SERVICES
 SHALL  POST  THE  NOTICES  REQUIRED BY SUBDIVISION (E) OF SECTION ELEVEN
 HUNDRED EIGHTY-FIVE OF THIS ARTICLE ON  ITS  WEBSITE  IN  THE  SIX  MOST
 COMMON  NON-ENGLISH LANGUAGES SPOKEN BY INDIVIDUALS WITH LIMITED ENGLISH
 PROFICIENCY IN THE STATE OF NEW YORK, BASED ON THE UNITED STATES  CENSUS
 DATA.
   §  4.  Section  1104 of the real property tax law is amended by adding
 two new subdivisions 3 and 4 to read as follows:
   3. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TWO OF THIS  SECTION,
 EVERY  COUNTY,  CITY  AND  TOWN  SHALL  COMPLY  WITH THE REQUIREMENTS OF
 SECTIONS ELEVEN HUNDRED EIGHTY-FIVE AND ELEVEN HUNDRED EIGHTY-FIVE-A  OF
 THIS ARTICLE.
   4.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION,
 EVERY COUNTY, CITY, AND TOWN SHALL COMPLY WITH THE REQUIREMENTS OF TITLE
 SIX OF THIS ARTICLE.
   § 5.  Article 11 of the real property tax law is amended by  adding  a
 new title 6 to read as follows:
                                   TITLE 6
                          ADDITIONAL PROTECTIONS
 SECTION 1195. NOTICE OF EXEMPTIONS.
         1196. SENIOR CITIZEN DELINQUENT TAX DEFERRAL PROGRAM.
         1197. REPAYMENT PLAN.
   §  1195. NOTICE OF EXEMPTIONS. TAX DISTRICTS SHALL INCLUDE A STATEMENT
 ON EVERY PROPERTY TAX COLLECTION NOTICE NOTIFYING HOMEOWNERS  OF  AVAIL-
 ABLE  EXEMPTIONS.  THE  PROVISION  OF  THIS  SUBDIVISION SHALL BE MET BY
 PROVIDING A NOTICE OR LEGEND SENT ON OR WITH EACH TAX BILL TO HOMEOWNERS
 READING "IF YOU ARE A SENIOR  CITIZEN,  PHYSICALLY  DISABLED,  AND/OR  A
 VETERAN,  YOU MAY BE ENTITLED TO A PARTIAL EXEMPTION FROM PROPERTY TAXES
 OR TO HAVE TAX FORECLOSURE DELAYED", FOLLOWED BY THE NAME AND  TELEPHONE
 NUMBER OF A PERSON OR DEPARTMENT SELECTED BY THE TAX DISTRICT TO RESPOND
 TO  INQUIRIES REGARDING TAX EXEMPTIONS, ELIGIBILITY, AND INSTRUCTIONS ON
 HOW TO APPLY FOR SUCH EXEMPTIONS.
   § 1196. SENIOR CITIZEN DELINQUENT TAX DEFERRAL PROGRAM. 1.  A  REQUEST
 BY AN OWNER TO DEFER DELINQUENT TAXES SHALL BE GRANTED BY A TAX DISTRICT
 TO AN INDIVIDUAL WITH AN OWNERSHIP INTEREST IN THE PROPERTY IF:
   (A)  THE PROPERTY IS A ONE-, TWO-, OR THREE-FAMILY RESIDENTIAL PROPER-
 TY;
 S. 8512                             5

   (B) THE PROPERTY SERVES AS THE PRIMARY RESIDENCE OF THE OWNER;
   (C)  ALL  OF THE OWNERS ARE AT LEAST SEVENTY YEARS OF AGE OR OLDER, OR
 IN THE CASE OF PROPERTY OWNED BY HUSBAND AND WIFE, ONE OF THE OWNERS  IS
 AT LEAST SEVENTY YEARS OF AGE;
   (D)  THE  GROSS  INCOME  OF  THE  HOMEOWNER IS AT OR BELOW TWO HUNDRED
 PERCENT OF THE FEDERAL POVERTY LEVEL; AND
   (E) THE DEFERRAL AMOUNT PLUS INTEREST DOES NOT EXCEED  EIGHTY  PERCENT
 OF THE OWNER'S EQUITY IN THE PROPERTY.
   2. ALL AMOUNTS OWED BY THE OWNER PURSUANT TO THIS SECTION SHALL BECOME
 DUE IMMEDIATELY UPON THE OCCURRENCE OF ANY OF THE FOLLOWING EVENTS:
   (A) THE OWNER CEASES TO OWN THE RESIDENCE.
   (B) THE RESIDENCE CEASES TO BE THE OWNER'S PRIMARY RESIDENCE.
   (C)  THE  OWNER'S  EQUITY  IN  THE  RESIDENCE FALLS BELOW THE REQUIRED
 ELIGIBLE AMOUNT PURSUANT TO PARAGRAPH (E) OF  SUBDIVISION  ONE  OF  THIS
 SECTION.
   §  1197. REPAYMENT PLAN. 1. A RESIDENTIAL OWNER OF PROPERTY WITH A TAX
 DELINQUENCY EXCEEDING FIVE HUNDRED DOLLARS SHALL BE  ENTITLED  TO  ENTER
 INTO  A  REPAYMENT  PLAN TO CURE A TAX DELINQUENCY AT ANY TIME UNTIL THE
 DATE OF REDEMPTION.
   2. THE TERM OF THE REPAYMENT PLAN  SHALL  BE  NO  LESS  THAN  EIGHTEEN
 MONTHS, UNLESS A SHORTER DURATION IS REQUESTED BY THE OWNER.  THE AMOUNT
 DUE  UNDER  THE AGREEMENT SHALL BE PAID, AS NEARLY AS POSSIBLE, IN EQUAL
 AMOUNTS ON EACH PAYMENT DUE DATE. THE AMOUNT OF EACH SUCH PAYMENT  SHALL
 BE  DETERMINED  BY  DIVIDING  THE  AMOUNT  DUE BY THE NUMBER OF REQUIRED
 INSTALLMENT PAYMENTS.
   3. NO PENALTIES  SHALL  BE  IMPOSED  AND  INTEREST  SHALL  NOT  ACCRUE
 THROUGHOUT THE REPAYMENT PLAN PERIOD.
   4. THE OWNER SHALL BE DEEMED TO BE IN DEFAULT OF A PAYMENT PLAN AGREE-
 MENT  PURSUANT TO THIS SECTION UPON THE OCCURRENCE OF ANY OF THE FOLLOW-
 ING EVENTS:
   (A) ANY INSTALLMENT PAYMENT IS NOT MADE WITHIN  FORTY-FIVE  DAYS  FROM
 THE PAYMENT DUE DATE.
   (B)  ANY  CURRENT  COUNTY  TAX, ASSESSMENT, FEE, OR CHARGE IS NOT PAID
 WHEN DUE.
   (C) THE SUBJECT PROPERTY IS SOLD.
   5. IN THE EVENT OF A DEFAULT IN PAYMENTS, AND AFTER SERVICE OF A TWEN-
 TY-DAY NOTICE OF DEFAULT, THE TAX  DISTRICT  SHALL  HAVE  THE  RIGHT  TO
 REQUIRE THE ENTIRE UNPAID BALANCE, WITH INTEREST, TO BE PAID IN FULL.
   §  6.  The  real  property  tax law is amended by adding a new section
 1194-a to read as follows:
   § 1194-A. PROCEEDING FOR DETERMINING JUST COMPENSATION AFTER  FORECLO-
 SURE  OF  TAX  LIEN  BY  PROCEEDING  IN REM. 1. FOR THE PURPOSES OF THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "APPRAISED VALUE" SHALL MEAN  A  RETROSPECTIVE  APPRAISAL  OF  THE
 PROPERTY  EFFECTIVE  AS  OF  THE DATE OF THE LOSS OF TITLE BY THE FORMER
 OWNERS DETERMINED BY AN INDEPENDENT NEW YORK STATE LICENSED  RESIDENTIAL
 REAL ESTATE APPRAISER.
   (B) "JUST COMPENSATION" SHALL MEAN THE APPRAISED VALUE OF THE PROPERTY
 LESS:
   (I)  ALL  REAL  PROPERTY  TAXES,  ASSOCIATED  INTEREST,  AND PENALTIES
 REASONABLY RELATED TO THE COST  OF  THE  DELINQUENCY  OWED  TO  THE  TAX
 DISTRICT;
   (II)  REASONABLE ATTORNEY'S FEES AND COSTS OF THE FORECLOSURE PROCEED-
 ING;
   (III) REASONABLE APPRAISAL COSTS; AND
   (IV) REFEREE FEES AND COSTS.
 S. 8512                             6
 
   (C) "FORMER OWNER" SHALL MEAN A PARTY DIVESTED OF TITLE DUE TO  UNPAID
 REAL  PROPERTY TAXES OR THAT PARTY'S SUCCESSORS, HEIRS, OR ASSIGNS, OR A
 REPRESENTATIVE OF SUCH SUCCESSORS, HEIRS, OR ASSIGNS.
   2. (A) (I) NOT MORE THAN FIVE DAYS AFTER A FORMER OWNER IS DIVESTED OF
 TITLE,  THE  TAX  DISTRICT  SHALL  SERVE UPON SUCH FORMER OWNER, OR SUCH
 FORMER OWNER'S SUCCESSORS, HEIRS, OR ASSIGNS,  OR  A  REPRESENTATIVE  OF
 SUCH  SUCCESSORS, HEIRS, OR ASSIGNS, A NOTICE OF POTENTIAL COMPENSATION.
 THE TAX DISTRICT MAY SERVE  ANYONE  WHOSE  INTEREST  IS  CLAIMED  TO  BE
 SUBJECT  AND  SUBORDINATE  TO  THE  FORECLOSED TAXES WITH SUCH NOTICE OF
 POTENTIAL COMPENSATION.
   (II) SUCH NOTICE OF POTENTIAL COMPENSATION SHALL BE  SERVED  UPON  THE
 FORMER  OWNER  BY REGULAR FIRST CLASS MAIL AND BY CERTIFIED MAIL, RETURN
 RECEIPT REQUESTED, TO THE PROPERTY ADDRESS AND THE LAST KNOWN ADDRESS OF
 THE FORMER OWNER.  IF NO ADDRESS IS PROVIDED FOR A PROPERTY ON  THE  TAX
 ROLLS, THE TAX DISTRICT SHALL CONDUCT A DILIGENT INQUIRY FOR THE ADDRESS
 FOR EACH AND EVERY FORMER OWNER AND SEND THE NOTICE TO SUCH ADDRESSES.
   (III)  SUCH  NOTICE  OF  POTENTIAL  COMPENSATION  MUST  BE PROVIDED IN
 SUBSTANTIALLY THE FOLLOWING FORM: "NOTICE OF POTENTIAL COMPENSATION. THE
 TAX LIEN FORECLOSURE PROCESS FOR PROPERTY LOCATED AT (PROPERTY  ADDRESS)
 HAS CONCLUDED AND YOU ARE ENTITLED TO DETERMINATION OF JUST COMPENSATION
 THROUGH  A  COURT  PROCEEDING.  YOU  SHOULD  CONSULT AN ATTORNEY WHO CAN
 ASSIST YOU IN THIS PROCESS. TO BE CONNECTED WITH  A  LEGAL  SERVICES  OR
 HOUSING  COUNSELING  ORGANIZATION  NEAR  YOU, CALL 855-HOME-456 OR VISIT
 HOMEOWNERHELPNY.ORG."
   (B) (I) WITHIN SIXTY DAYS OF THE LOSS OF TITLE RESULTING  FROM  A  TAX
 FORECLOSURE, THE TAX DISTRICT SHALL DETERMINE THE APPRAISED VALUE OF THE
 PROPERTY.  WITHIN  NINETY DAYS OF THE LOSS OF TITLE RESULTING FROM A TAX
 FORECLOSURE, THE TAX DISTRICT SHALL FILE WITH THE OFFICE  OF  THE  CLERK
 WHERE THE PROPERTY IS LOCATED A NOTICE OF JUST COMPENSATION. SUCH NOTICE
 SHALL  BE  SERVED PERSONALLY UPON THE FORMER OWNER AND SERVED BY REGULAR
 MAIL UPON ATTORNEYS APPEARING ON BEHALF OF SUCH FORMER OWNERS.
   (II) SUCH NOTICE OF JUST COMPENSATION SHALL INCLUDE:
   (A) AN OFFER OF JUST COMPENSATION;
   (B) AN ITEMIZATION OF DEDUCTIONS FROM THE APPRAISED VALUE; AND
   (C) A COPY OF THE WRITTEN APPRAISAL OBTAINED BY THE TAX DISTRICT.
   (C) (I) WITHIN SIXTY DAYS OF THE MAILING BY THE TAX  DISTRICT  OF  THE
 OFFER  OF  JUST  COMPENSATION, THE FORMER OWNER SHALL COMPLETE AND SERVE
 UPON THE TAX DISTRICT A RESPONSE TO NOTICE OF JUST COMPENSATION.
   (II) SUCH RESPONSE TO NOTICE OF JUST  COMPENSATION  SHALL  INCLUDE  AN
 ELECTION  BY  THE FORMER OWNER TO EITHER ACCEPT THE TAX DISTRICT'S OFFER
 OR REJECT THE OFFER AND CONTEST THE APPRAISED VALUE.
   3. (A) (I) UPON RECEIPT OF A RESPONSE TO NOTICE OF  JUST  COMPENSATION
 ACCEPTING  THE  OFFER OF JUST COMPENSATION, THE FORMER OWNER SHALL ENTER
 INTO A WRITTEN AGREEMENT WITH THE TAX DISTRICT ACCEPTING SUCH OFFER.
   (II) UPON RECEIPT OF A RESPONSE TO NOTICE OF JUST COMPENSATION REJECT-
 ING THE OFFER OF JUST COMPENSATION, THE TAX DISTRICT  SHALL  ENTER  INTO
 NEGOTIATIONS  TO  REACH A CONSENSUAL AGREEMENT WITH THE FORMER OWNER. AT
 ALL TIMES, THE TAX DISTRICT SHALL MAKE EVERY REASONABLE AND  EXPEDITIOUS
 EFFORT  TO  JUSTLY COMPENSATE THE FORMER OWNER FOR SUCH REAL PROPERTY BY
 GOOD FAITH NEGOTIATION AND AGREEMENT.
   (B) (I) IF THE FORMER OWNER IS DISSATISFIED WITH  THE  RESULT  OF  THE
 NEGOTIATIONS  REQUIRED PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (A) OF
 THIS SUBDIVISION, THE FORMER OWNER MAY SUBMIT TO A  COURT  OF  COMPETENT
 JURISDICTION A REQUEST FOR HEARING TO DETERMINE JUST COMPENSATION.
   (II)  WITHIN  FOURTEEN  DAYS  OF  RECEIPT  OF A REQUEST FOR HEARING TO
 DETERMINE JUST COMPENSATION, THE COURT SHALL BY REFERENCE OR OTHERWISE:
 S. 8512                             7

   (A) DIRECT THE PARTIES TO EXCHANGE AND FILE  APPRAISAL  REPORTS  BY  A
 DATE  CERTAIN  BEFORE  THE HEARING, TO BE COMPLETED AT LEAST TWENTY DAYS
 BEFORE SUCH HEARING; AND
   (B)  FIX  THE  PLACE  AND  TIME FOR SUCH HEARING TO DETERMINE THE JUST
 COMPENSATION.
   (C) THE FORMER OWNER SHALL HAVE A PERIOD OF UP TO THREE YEARS FROM THE
 LOSS OF TITLE TO EITHER (I) ACCEPT THE TAX  DISTRICT'S  OFFER;  OR  (II)
 REQUEST  A  HEARING  TO ASCERTAIN JUST COMPENSATION. IN THE EVENT OF ANY
 CONFLICT, THE  THREE-YEAR  PERIOD  SPECIFIED  IN  THIS  PARAGRAPH  SHALL
 CONTROL.  FOLLOWING  SUCH  THREE-YEAR  PERIOD,  FUNDS  HELD  BY  THE TAX
 DISTRICT AFTER THE PAYMENT OF REAL PROPERTY TAXES, ASSOCIATED  INTEREST,
 AND  PENALTIES REASONABLY RELATED TO THE COST OF THE DELINQUENCY OWED TO
 THE TAX DISTRICT SHALL BE  TRANSFERRED  TO  THE  NEW  YORK  STATE  COMP-
 TROLLER'S OFFICE OF UNCLAIMED FUNDS.
   4.  ALL  TAX  DISTRICTS SHALL REVIEW AND AMEND EXISTING LEGISLATION AS
 NECESSARY TO ESTABLISH PROCEDURES TO CARRY OUT THE  PROVISIONS  OF  THIS
 SECTION.
   § 7. This act shall take effect immediately.

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Senate Bill S8512

Sponsored By

Current Bill Status - In Senate Committee Local Government Committee

co-Sponsors

2023-S8512 (ACTIVE) - Details

2023-S8512 (ACTIVE) - Summary

2023-S8512 (ACTIVE) - Sponsor Memo

2023-S8512 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8512

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Sponsored By

Kevin Thomas

Current Bill Status - In Senate Committee Local Government Committee

co-Sponsors

Pete Harckham

Robert Jackson

2023-S8512 (ACTIVE) - Details

2023-S8512 (ACTIVE) - Summary

2023-S8512 (ACTIVE) - Sponsor Memo

2023-S8512 (ACTIVE) - Bill Text download pdf

Comments