S T A T E O F N E W Y O R K
I N S E N A T E
February 3, 2014
Introduced by Sen. ZELDIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to authorize the village of Mastic Beach to enter into a contract
to sell or pledge as collateral for a loan some or all of the delin-
quent liens held by such city to a private party or engage a private
party to collect some or all of the delinquent tax liens held by it;
and providing for the repeal of such provisions upon expiration there-
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Notwithstanding any provision of any general, special or
local law to the contrary, the village of Mastic Beach may enter into a
contract to sell some or all of the delinquent tax liens held by it to a
private party, subject to the following conditions:
(a) The consideration to be paid for a sale of the delinquent tax
liens held by it may be more or less than the face amount of the tax
(b) Property owners shall be given at least 30 days advance notice of
sale in the same form and manner as is provided by subdivision 2 of
section 1190 of the real property tax law. Failure to provide such
notice or the failure of the addressee to receive the same shall not in
any way affect the validity of any sale of a tax lien or tax liens or
the validity of the taxes or interest prescribed by law with respect
(c) The village of Mastic Beach shall set the terms and conditions of
the contract of sale or loan.
(d) The tax lien purchaser must 30 days prior to the commencement of
any foreclosure action provide to the village of Mastic Beach a list of
liens to be foreclosed. The village of Mastic Beach may, at its sole
option and discretion, repurchase a lien or liens on the foreclosure
list from the tax lien purchaser. The repurchase price shall be the
amount of the lien or liens plus any accrued interest and collection
fees incurred by the tax lien purchaser through the date of repurchase.
The tax lien purchaser shall provide the foreclosure list to the village
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 6525 2
of Mastic Beach, along with the applicable repurchase price of each
lien, by certified mail, and the village of Mastic Beach shall have 30
days from receipt to notify the tax lien purchaser of its option to
purchase one or more of the liens. If the village of Mastic Beach opts
to purchase the lien, it shall provide payment within 30 days of receipt
of the repurchase price of said lien or liens. If the village of Mastic
Beach shall fail to repurchase the lien or liens the tax lien purchaser
shall have the right to commence a foreclosure action immediately upon
notice from the village of Mastic Beach of its refusal or at the expira-
tion of the 30 day review period whichever occurs first.
(e) The sale of a tax lien pursuant to this act shall not operate to
shorten the otherwise applicable redemption period or change the other-
wise applicable interest rate.
(f) Upon the expiration of the redemption period prescribed by law,
the purchaser of a delinquent tax lien, or its successors or assigns,
may foreclose the lien as in an action to foreclose a mortgage as
provided in section 1194 of the real property tax law. The procedure in
such action shall be the procedure prescribed by article 13 of the real
property actions and proceedings law for the foreclosure of mortgages.
At any time following the commencement of an action to foreclose a lien,
the amount required to redeem the lien, or the amount received upon sale
of a property, shall include reasonable and necessary collection costs,
attorneys' fees, legal costs, allowances, and disbursements.
(g) The provisions of title 5 of article 11 of the real property tax
law shall apply so far as is practicable to a contract for the sale of
tax liens pursuant to this act.
S 2. Notwithstanding any provision of any general, special or local
law to the contrary, the village of Mastic Beach may enter into a
contract to pledge as collateral for a loan some or all of the delin-
quent tax liens held by it to a third party or engage a third party to
collect some or all of the delinquent tax liens held by it subject to
the following conditions:
(a) Any loan provided under this section shall bear an interest rate
to be determined by the village of Mastic Beach.
(b) Any contract for the collection of delinquent tax liens the fee
paid by the village of Mastic Beach shall not exceed 10% of the
outstanding balance of the tax lien being collected and said fee shall
be borne by the delinquent taxpayer.
S 3. This act shall take effect immediately and shall expire December
31, 2018 when upon such date the provisions of this act shall be deemed