senate Bill S5167

Signed by Governor Amended

Provides that a land bank may tender a bid on sales of property made pursuant to public sale, county charter, city charter, administrative code or special law, when no municipality elects to do so

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 13 / May / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 29 / May / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 29 / May / 2013
    • ORDERED TO THIRD READING CAL.814
  • 30 / May / 2013
    • PASSED SENATE
  • 30 / May / 2013
    • DELIVERED TO ASSEMBLY
  • 30 / May / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 07 / Jun / 2013
    • RECALLED FROM ASSEMBLY
  • 07 / Jun / 2013
    • RETURNED TO SENATE
  • 10 / Jun / 2013
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 10 / Jun / 2013
    • AMENDED ON THIRD READING 5167A
  • 17 / Jun / 2013
    • REPASSED SENATE
  • 17 / Jun / 2013
    • RETURNED TO ASSEMBLY
  • 17 / Jun / 2013
    • REFERRED TO CODES
  • 20 / Jun / 2013
    • SUBSTITUTED FOR A7245A
  • 20 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.538
  • 20 / Jun / 2013
    • PASSED ASSEMBLY
  • 20 / Jun / 2013
    • RETURNED TO SENATE
  • 17 / Sep / 2013
    • DELIVERED TO GOVERNOR
  • 27 / Sep / 2013
    • SIGNED CHAP.372

Summary

Provides that a land bank may tender a bid on sales of property made pursuant to public sale, county charter, city charter, administrative code or special law, when no municipality elects to do so.

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Bill Details

Versions:
S5167
S5167A
Legislative Cycle:
2013-2014
Law Section:
Not-for-Profit Corporation Law
Laws Affected:
Amd ยงยง1603 & 1616, N-PC L

Sponsor Memo

BILL NUMBER:S5167

TITLE OF BILL: An act to amend the not-for-profit corporation law, in
relation to the sale of property to land banks

PURPOSE: To provide adjustments to the land banks of municipalities in
New York State

SUMMARY OF SPECIFIC PROVISIONS: Section 1 allows the board to expand
the size of their board.

Section 2 allows a land bank to acquire property via the sale pursuant
to a county chatter, city charter, administrative code, or special
law.

JUSTIFICATION: The creation of land banks were provided for the
following reasons: A crisis exists in many Upstate. New York cities
and their metro areas caused by disinvestment in real property and
resulting in a significant amount of vacant and abandoned property.
For example, Buffalo at its height had 580,000 residents, but now has
a population of only 250,000. The city of Buffalo has an estimated
20,000 vacant parcels, 5,000 vacant structures and an estimated 22,290
vacant residential units. Problems associated with abandoned property
include crime, fire, disease, and diminished value of surrounding
properties. Abandoned property creates a haven for illicit and
dangerous activity. Local governments lose revenue because of the
costs of demolition, safety hazards, and spreading deterioration of
neighborhoods including resulting mortgage foreclosures.

Current law was created to solve the problems of vacant and abandoned
property in a coordinated manner and to foster the development of such
property and promote economic growth. Land banks with this legislation
would be type-C not for profit corporations under this chapter and in
accordance with the provisions of this article and pursuant to this
article that may be created by any "foreclosing governmental unit"
that would be authorized by a municipality through appropriate local
approval to efficiently acquire, hold, manage and develop
tax-foreclosed properties with the long-term interest of the community
in mind. The creation of land banks as Type C not for profit
corporations at the request of municipalities can be an effective and
cost efficient approach to managing and revitalizing vacant and
abandoned properties.

Land banks allow local governments to overcome legal restraints on the
conversion of public land and public liens on private land into
performing assets. Land banks can remove redevelopment barriers that
hinder the creation of functioning private markets for conversion of
abandoned land into better uses.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS:None.

EFFECTIVE DATE: This act shall take effect immediately.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5167

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 13, 2013
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to amend the not-for-profit corporation law, in relation to the
  sale of property to land banks

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subparagraph  2  of  paragraph (a) of section 1603 of the
not-for-profit corporation law, as added by chapter 257 of the  laws  of
2011, is amended to read as follows:
  (2)  the  number  of  members  of  the board of directors, which shall
consist of an odd number of members, and shall be  not  less  than  five
members nor more than [eleven] FIFTEEN members;
  S  2.  Paragraph (i) of section 1616 of the not-for-profit corporation
law, as added by chapter 257 of the laws of 2011, is amended to read  as
follows:
  (i) Notwithstanding any other provision of law to the contrary, in the
event  that  no  municipality  elects  to  tender  a bid at a judicially
ordered sale pursuant to the provisions of section eleven hundred  thir-
ty-six  of  the real property tax law OR SALE PURSUANT TO A COUNTY CHAR-
TER, CITY CHARTER, ADMINISTRATIVE CODE, OR SPECIAL LAW,  the  land  bank
may  tender a bid at such sale in an amount equal to the total amount of
all municipal claims and liens which were the basis for the judgment. In
the event of such tender by the land bank the property shall  be  deemed
sold to the land bank regardless of any bids by any other third parties.
The  bid  of  the land bank shall be paid as to its form, substance, and
timing according to such agreement as  is  mutually  acceptable  to  the
plaintiff  and the land bank. The obligation of the land bank to perform
in accordance with such agreement shall be deemed to be in  full  satis-
faction of the municipal claim which was the basis for the judgment. The
land bank, as purchaser at such JUDICIALLY ORDERED sale OR SALE PURSUANT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09821-01-3

S. 5167                             2

TO  A COUNTY CHARTER, CITY CHARTER, ADMINISTRATIVE CODE, OR SPECIAL LAW,
shall take and forever thereafter have, an absolute title to the proper-
ty sold, free and discharged of all tax  and  municipal  claims,  liens,
mortgages,  charges and estates of whatsoever kind. The deed to the land
bank shall be executed, acknowledged and delivered within thirty days of
the sale.
  S 3. This act shall take effect immediately.

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