S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    875
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2023
                                ___________
 
 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 Lockport to add unpaid housing code violation penalties,
   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  LOCKPORT; LEVY. 1.  AUTHORIZATION. IN ADDITION TO AND NOT IN LIMITA-
 TION OF ANY POWER OTHERWISE GRANTED BY LAW,  THE  CITY  OF  LOCKPORT  IS
 HEREBY  AUTHORIZED TO COLLECT ANY UNPAID HOUSING, BUILDING AND FIRE CODE
 VIOLATION PENALTIES, COSTS AND FINES THROUGH PLACEMENT BY THE CITY TREA-
 SURER 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
 LOCKPORT'S  ANNUAL  TAX LEVY SUCH UNPAID CODE VIOLATION PENALTIES, COSTS
 AND FINES SHALL HAVE BEEN ADJUDICATED AND IMPOSED THROUGH A JUDGMENT  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  AND  HAVE  REMAINED  UNPAID FOR ONE YEAR AFTER THE
 FINAL ADJUDICATION AND EXHAUSTION OF ALL APPEALS RELATING TO THE IMPOSI-
 TION 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 SHALL  BE  SET
 DOWN  IN  THE  ANNUAL  TAX  LEVY UNDER THE HEADING UNCOLLECTED FINES AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03705-01-3
              

 S. 875                              2
 
 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 PROPER-
 TY ASSESSED AS THE TAX LEVY OF SUCH MUNICIPALITY AND AS A PART THEREOF.
   5.  NOTICE.  THE  CITY  OF  LOCKPORT  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 LOCKPORT 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 LOCKPORT SHALL DEVELOP A PROGRAM
 TO ASSIST TENANTS RESIDING IN A DWELLING AT RISK FOR TAX FORECLOSURE DUE
 TO UNPAID CODE VIOLATIONS. SUCH PROGRAM SHALL INCLUDE HOUSING COUNSELING
 ASSISTANCE  OR OTHER SUPPORT IN RELOCATING THE TENANTS TO SUITABLE HOUS-
 ING 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 LOCKPORT 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  LOCKPORT'S  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.
   (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.
 S. 875                              3
 
   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 LOCKPORT.  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 LOCKPORT 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.