NY State Senate Bill 2025-S5480

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 21, 2025	referred to local government

co-Sponsors

2025-S5480 (ACTIVE) - Details

See Assembly Version of this Bill:: A4445
Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§1142, 1104, 1146 & 972, add §1149, RPT L; add §97-a, Soc Serv L
Versions Introduced in 2023-2024 Legislative Session:: S5213, A4935

2025-S5480 (ACTIVE) - Summary

Relates to tax lien foreclosure; establishes senior, disabled, and veteran homeowner real property tax assistance program; establishes installment plans for certain real property taxes.

2025-S5480 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5480

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the real property tax law and the social services law,
in relation to tax lien foreclosure

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to provide homeowners at risk of tax lien
foreclosures the same protections that are afforded to borrowers in
residential mortgage foreclosure proceedings.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the real property tax law section 1185
titled "homeowner bill of rights" to add new rights for homeowners
facing tax lien foreclosure: All foreclosures for property tax liens
must be judicial proceedings; The owner must have a chance to partic-
ipate in a mandatory settlement conference process to avert foreclosure;
Any payments must be applied to the oldest liens first; and If the resi-

dential property is foreclosed on, the owner must receive any money
remaining after the tax lien is satisfied ahead of any secured credi-
tors.

Section 2 of the bill amends the real property tax law to require all
taxing jurisdictions, even those who previously opted out of or were
exempted from Article 11 to include protections for homeowners that are
at least as protective as the homeowner bill of rights.

Section 3 of the bill amends the real property tax law to allow for
local laws that increase the maximum threshold for repayment plans to
cure tax delinquency.

Section 4 of the bill amends the real property tax law to require taxing
authorities to send pre-foreclosure notices and provide homeowners the
opportunity to participate in settlement conferences prior to commencing
a foreclosure action.

Section 5 of the bill amends the social services law to require social
services districts to assist eligible homeowners with property tax
assistance.

Section 6 of the bill amends the real property tax law to require all
taxing jurisdictions to offer installment plans for homeowners to prepay
taxes.

Section 7 contains a severability clause.

Section 8 states the effective date.

 
JUSTIFICATION:

In New York, when a homeowner owes property taxes or other property-re-
lated charges for an extended period, those delinquent taxes become
liens that put the property at risk of a tax lien foreclosure. 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 retirement and
are living on fixed incomes. As such, inequity relating to tax liens and
their collections falls most heavily on senior citizens. Additionally,
research has consistently shown that more liens are generated in commu-
nities of color. These factors contribute to gentrification and strip-
ping 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 foreclosure and refuse to engage in
the sort of basic loss mitigation procedures that are required in the
mortgage foreclosure context.  Providing basic due process protections
such as a pre-foreclosure notice comparable to those required in mort-
gage foreclosures - and governed by the same legal requirements - and a
mandatory settlement conference process governed by a good faith negoti-
ation standard can promote earlier resolution of tax lien arrears and
ensure that taxing authorities are not promoting displacement of vulner-
able 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:

S5213A: 2024

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

TBD.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S5480 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5480
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 21, 2025
                                ___________
 
 Introduced by Sens. COMRIE, MYRIE -- 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 and the social services law,
   in relation to tax lien foreclosure
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1142  of  the real property tax law, as added by
 section 12 of part BB of chapter 55 of the laws of 2024, is  amended  to
 read as follows:
   § 1142. 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  LOANS  OTHERWISE
 EXEMPT UNDER THIS ARTICLE, shall have the following rights:
   1. Notwithstanding any other general, special, or local law, local tax
 act,  code,  rule,  regulation, or charter provision to the contrary, to
 not have exemptions removed or waived for nonpayment of property  taxes,
 except  to the extent otherwise provided in section one hundred seventy-
 one-w of the tax law and any other general law that  explicitly  author-
 izes the removal of an exemption due to the nonpayment of taxes;
   2.  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,  provided that a claim by an owner that they were not
 so informed shall not  constitute  a  valid  defense  to  a  foreclosure
 proceeding;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08485-01-5
 S. 5480                             2

 
   3.  To  receive  homeowner  warning notices pursuant to section eleven
 hundred forty-four of this title;
   4.  In  the  event that their primary residence is foreclosed upon, to
 receive a share of any surplus resulting from the sale of  the  property
 in  the  manner  provided  by law; PROVIDED HOWEVER, THAT SUCH HOMEOWNER
 SHALL RECEIVE ANY SURPLUS FOLLOWING THE SALE OF THE PROPERTY  AFTER  THE
 TAX LIEN IS SATISFIED AHEAD OF ANY SECURED CREDITORS PURSUANT TO SECTION
 FIFTY-TWO HUNDRED SIX OF THE CIVIL PRACTICE LAW AND RULES;
   5.  To be charged interest at a rate no higher than the maximum allow-
 able statutory interest rate for unpaid property taxes;
   6. To enter into installment plans or repayment plans for purposes  of
 paying delinquent taxes [where locally authorized];
   7. For owners who are senior citizens who are receiving a senior citi-
 zens  exemption,  an enhanced STAR exemption or an enhanced STAR credit,
 to receive a grace period of five business days to pay their taxes with-
 out interest in a local government that  has  opted  to  grant  such  an
 extension to such persons;
   8.  In  the  event that their primary residence is foreclosed upon, to
 have all debts related to delinquent taxes owed on  such  primary  resi-
 dence  extinguished  upon  the  foreclosure, except when they have reac-
 quired title pursuant to subdivision  four  of  section  eleven  hundred
 thirty-six  of  this  article; provided, however, that nothing contained
 herein shall be construed to preclude a tax district  from  bringing  an
 action  against  a  former owner to recover reasonable costs incurred in
 acting pursuant to law to remove, abate or  mitigate  unsafe  conditions
 and/or  nuisances that were present on the property at the time of fore-
 closure, including but not limited to the demolition  of  unsafe  struc-
 tures and the elimination of fire and health hazards where warranted[.];
   9.  FOR  REAL  PROPERTY  TAX-LIEN  RELATED FORECLOSURES TO BE JUDICIAL
 PROCEEDINGS;
   10. THE RIGHT TO ATTEND A PRE-FORECLOSURE SETTLEMENT  CONFERENCE  WITH
 THE TAXING JURISDICTION; AND
   11.  HOMEOWNER  PAYMENTS TOWARD DELINQUENT TAXES WILL APPLY IN REVERSE
 CHRONOLOGICAL ORDER OF WHEN THE LIENS BECOME DUE.
   § 2. Subdivision 2 of section 1104 of the real property  tax  law,  as
 amended  by  chapter 532 of the laws of 1994, paragraph (iii) as further
 amended by subdivision (b) of section 1 of part W of chapter 56  of  the
 laws of 2010, is amended to read as follows:
   2. The provisions of this article shall not be applicable to a county,
 city or town which: (i) on January first, nineteen hundred ninety-three,
 was authorized to enforce the collection of delinquent taxes pursuant to
 a county charter, city charter, administrative code or special law; (ii)
 adopted  a local law, no later than July first, nineteen hundred ninety-
 four, 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  (iii) filed a copy of such local law with the commis-
 sioner  no  later  than  August  first,  nineteen  hundred  ninety-four.
 PROVIDED,  HOWEVER,  THAT NOTWITHSTANDING ANY PROVISIONS OF ANY GENERAL,
 SPECIAL OR LOCAL LAW TO THE CONTRARY, IF SUCH CHARTER, CODE  OR  SPECIAL
 LAW DOES NOT INCLUDE PROVISIONS ALLOWING FOR ANY "SURPLUS" AS DEFINED BY
 SECTION  ELEVEN HUNDRED NINETY-FIVE OF THIS ARTICLE TO BE CLAIMED BY THE
 FORMER OWNER OR OTHER PARTIES WHOSE INTERESTS WERE EXTINGUISHED  BY  THE
 FORECLOSURE  OF  A DELINQUENT TAX LIEN, THEN UNTIL SUCH CHARTER, CODE OR
 SPECIAL LAW IS AMENDED TO COMPLY WITH THE PROVISIONS OF TITLE THREE-A OF
 THIS ARTICLE, ANY CLAIMS FOR SURPLUS WITHIN SUCH TAX DISTRICT  SHALL  BE
 S. 5480                             3
 
 ADMINISTERED  IN  A  MANNER  SUBSTANTIALLY SIMILAR TO THAT PRESCRIBED BY
 TITLE THREE-A OF THIS ARTICLE; AND PROVIDED FURTHER, THAT  ON  OR  AFTER
 THE  EFFECTIVE  DATE  OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-
 FIVE  THAT AMENDED THIS SUBDIVISION, ALL LOCAL TAXING JURISDICTIONS MUST
 PROVIDE PROTECTIONS TO  HOMEOWNERS  AT  LEAST  AS  PROTECTIVE  AS  THOSE
 PRESCRIBED IN TITLE THREE-A OF THIS ARTICLE.
   §  3.  Subdivision  1 of section 1146 of the real property tax law, as
 added by section 12 of part BB of chapter 55 of the  laws  of  2024,  is
 amended to read as follows:
   1.  [The  governing  body  of  a tax district is hereby authorized and
 empowered to enact and amend a local law providing that in] IN the  case
 of  primary  residences with a tax delinquency greater than five hundred
 dollars but less than thirty thousand dollars or such other limit as may
 be provided by such local law, the property owner shall be permitted  to
 enter  into a repayment plan to cure a tax delinquency at any time until
 the date of redemption; PROVIDED HOWEVER, THAT EACH TAXING  JURISDICTION
 SHALL  BE  AUTHORIZED AND EMPOWERED TO ENACT A LOCAL LAW TO INCREASE THE
 MAXIMUM THRESHOLD OF THIRTY THOUSAND DOLLARS FOR TAX ARREARS BY  PASSAGE
 OF A LOCAL LAW, ORDINANCE, OR RESOLUTION.
   § 4. The real property tax law is amended by adding a new section 1149
 to read as follows:
   §  1149.  PRE-FORECLOSURE  SETTLEMENT CONFERENCES. 1.  NOTWITHSTANDING
 ANY INCONSISTENT GENERAL, SPECIAL, OR LOCAL LAW, LOCAL  TAX  ACT,  CODE,
 RULE, REGULATION, OR CHARTER PROVISION TO THE CONTRARY, NO TAXING JURIS-
 DICTION SHALL COMMENCE A FORECLOSURE ACTION AGAINST ANY PRIMARY RESIDENT
 HOMEOWNER  WITHOUT  FIRST  PROVIDING  SUCH  HOMEOWNER  WITH  THE  NOTICE
 REQUIRED PURSUANT TO SECTION ELEVEN HUNDRED FORTY-FOUR  OF  THIS  TITLE,
 AND  PROVIDING SUCH HOMEOWNER AN OPPORTUNITY TO ENGAGE IN A PRE-FORECLO-
 SURE SETTLEMENT CONFERENCE.
   2. THE PURPOSE OF SUCH SETTLEMENT CONFERENCE SHALL BE, AT  A  MINIMUM,
 TO  OFFER SUCH HOMEOWNER INFORMATION ABOUT THEIR RIGHTS AS ENUMERATED IN
 SECTION ELEVEN HUNDRED FORTY-TWO OF THIS TITLE, AND TO OFFER SUCH  HOME-
 OWNER  TO  OPT  INTO  A  REPAYMENT  PLAN AS ENUMERATED IN SECTION ELEVEN
 HUNDRED FORTY-SIX OF THIS TITLE.  SUCH HOMEOWNER SHALL  BE  INFORMED  AT
 SUCH SETTLEMENT CONFERENCES THAT THEY SHALL HAVE THE RIGHT TO ENTER INTO
 A REPAYMENT PLAN OF TWELVE, EIGHTEEN, TWENTY-FOUR, OR THIRTY-SIX MONTHS,
 AS ENUMERATED IN SECTION ELEVEN HUNDRED FORTY-SIX OF THIS TITLE, IF THEY
 SO  OPT  TO AVAIL THEMSELVES OF SUCH REPAYMENT PLAN. NO TAXING JURISDIC-
 TION SHALL INITIATE A FORECLOSURE PROCEEDING UNTIL AND UNLESS  AT  LEAST
 FOURTEEN  DAYS  HAVE  PASSED  SINCE  THE SETTLEMENT CONFERENCE HAS TAKEN
 PLACE AND THE PRIMARY RESIDENT HOMEOWNER HAS EITHER  NOT  OPTED  INTO  A
 REPAYMENT PLAN, OR HAS DEFAULTED UPON SUCH REPAYMENT PLAN.
   3. HOUSING COUNSELORS FROM NEW YORK-BASED HOMEOWNER PROTECTION PROGRAM
 AGENCIES  MAY ATTEND SUCH SETTLEMENT CONFERENCES, AND MAY PROVIDE INFOR-
 MATION TO SUCH HOMEOWNER AT SUCH SETTLEMENT CONFERENCES.
   4. LOCAL TAXING JURISDICTIONS MAY CONDUCT SUCH PRE-FORECLOSURE SETTLE-
 MENT CONFERENCES IN GROUP SETTINGS OR BATCHES, AND AN IN-PERSON  ATTEND-
 ANCE  OPTION  MUST  BE  OFFERED;  PROVIDED  HOWEVER,  THAT A HOMEOWNER'S
 INABILITY TO ATTEND SUCH PRE-FORECLOSURE SETTLEMENT CONFERENCE SHALL NOT
 BE A DEFENSE AGAINST A FORECLOSURE ACTION, SO LONG AS SUCH HOMEOWNER WAS
 PROPERLY NOTIFIED OF SUCH SETTLEMENT CONFERENCE, AND A  VIRTUAL  ATTEND-
 ANCE OPTION WAS PROVIDED.
   §  5.  The social services law is amended by adding a new section 97-a
 to read as follows:
   § 97-A. SENIOR, DISABLED, AND  VETERAN  HOMEOWNER  REAL  PROPERTY  TAX
 ASSISTANCE PROGRAM. 1. EACH SOCIAL SERVICES DISTRICT SHALL ASSIST ELIGI-
 S. 5480                             4
 
 BLE  HOUSEHOLDS  FOUND  IN  SUCH  DISTRICTS  TO OBTAIN REAL PROPERTY TAX
 ASSISTANCE. HOWEVER, ONLY THOSE PERSONS WHO QUALIFY  FOR  SENIOR,  DISA-
 BLED, OR VETERANS' ASSISTANCE IN ACCORDANCE WITH STATE REQUIREMENTS, AND
 STANDARDS  PROMULGATED BY THE DEPARTMENT, SHALL BE CERTIFIED AS ELIGIBLE
 FOR AND ENTITLED TO RECEIVE SAID HOMEOWNER REAL PROPERTY TAX ASSISTANCE.
 NO PERSON SHALL BE CERTIFIED AS ELIGIBLE FOR  AND  ENTITLED  TO  RECEIVE
 SAID  REAL  PROPERTY  TAX  ASSISTANCE IF NO FUNDS ARE AVAILABLE FOR SUCH
 PURPOSE.
   2. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, RULE,  OR  REGU-
 LATION  TO THE CONTRARY, THE AMOUNT OF ANY REAL PROPERTY TAX PAYMENTS OR
 ALLOWANCES PROVIDED TO AN ELIGIBLE HOUSEHOLD UNDER  THIS  PROGRAM  SHALL
 NOT  BE  CONSIDERED  INCOME  OR  RESOURCES OF SUCH HOUSEHOLDS, OR OF ANY
 MEMBER THEREOF, FOR ANY PURPOSE UNDER ANY FEDERAL OR STATE LAW,  INCLUD-
 ING  ANY  LAW  RELATING  TO  TAXATION, FOOD STAMPS, PUBLIC ASSISTANCE OR
 OTHER BENEFITS AVAILABLE PURSUANT TO THIS CHAPTER.
   § 6. Section 972 of the real property tax law is amended by  adding  a
 new subdivision 6 to read as follows:
   6.   INSTALLMENT  PLANS.  NOTWITHSTANDING  ANY  INCONSISTENT  GENERAL,
 SPECIAL, OR LOCAL LAW, LOCAL TAX ACT, CODE, RULE, REGULATION, OR CHARTER
 PROVISION TO THE CONTRARY, BEGINNING IN ALL LOCAL FISCAL YEARS  COMMENC-
 ING  IN  CALENDAR YEAR TWO THOUSAND TWENTY-SIX AND THEREAFTER, ALL LOCAL
 TAXING JURISDICTIONS SHALL OFFER AN OPTION FOR TAXPAYERS TO  ENTER  INTO
 INSTALLMENT  PLANS  WHICH SHALL PERMIT COLLECTION OF TAXES ON AT LEAST A
 QUARTERLY BASIS.
   § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or subpart contained in any part  of  this  act  shall  be
 adjudged  by  any  court  of  competent jurisdiction to be invalid, such
 judgment shall not affect, impair, or invalidate the remainder  thereof,
 but  shall  be  confined in its operation to the clause, sentence, para-
 graph, subdivision, section or subpart contained  in  any  part  thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered. It is hereby declared to be the intent of the legislature
 that this act would have been enacted even if  such  invalid  provisions
 had not been included herein.
   § 8. This act shall take effect immediately.

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Senate Bill S5480

Sponsored By

Current Bill Status - In Senate Committee Local Government Committee

co-Sponsors

2025-S5480 (ACTIVE) - Details

2025-S5480 (ACTIVE) - Summary

2025-S5480 (ACTIVE) - Sponsor Memo

2025-S5480 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5480

Share this bill

Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Local Government Committee

co-Sponsors

Zellnor Myrie

2025-S5480 (ACTIVE) - Details

2025-S5480 (ACTIVE) - Summary

2025-S5480 (ACTIVE) - Sponsor Memo

2025-S5480 (ACTIVE) - Bill Text download pdf

Comments