senate Bill S6681

Relates to final judgment in foreclosures by in rem proceedings in the city of Buffalo

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Bill Status


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

  • 26 / Feb / 2014
    • REFERRED TO LOCAL GOVERNMENT

Summary

Relates to the disposition of surplus funds resulting from a tax lien foreclosure sale in the city of Buffalo; provides that a judgment may be entered, upon request of the tax district, without such district taking title to the property.

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Bill Details

See Assembly Version of this Bill:
A9245
Versions:
S6681
Legislative Cycle:
2013-2014
Current Committee:
Senate Local Government
Law Section:
Real Property Taxation

Sponsor Memo

BILL NUMBER:S6681

TITLE OF BILL: An act relating to final judgment in foreclosures by
in rem proceedings in the city of Buffalo

PURPOSE: To allow the City of Buffalo to obtain the proceeds of the
sale of any property obtained through foreclosure without having to
hold the title, for the benefit of the city's Urban Renewal Agency.

SUMMARY OF PROVISIONS:

Section 1: exempts the City of Buffalo from Section 1136 of the real
property tax law which relates to the entry of final judgment by a
court in a foreclosure of a tax lien through an in rem proceeding.

Subdivision 2: provides that upon final judgment in its favor, the
City of Buffalo shall receive "the right to convey title" to the
affected parcel(s). Current law grants the City of Buffalo
"possession" of such parcel. Also, existing paragraphs (c) and (d) are
deleted.

Subdivision 3: provides that a judgment may be entered, upon request
of the City of Buffalo, without the City taking title to the property.
New language specifically authorizes the City to sell any property
obtained via judgment if it chooses not to retain such parcel for
public use.

Subdivision 4: sets forth a process by which the City of Buffalo may
sell property without taking title to it via public auction, and which
provides for the proceeds of such sale going to the City of Buffalo's
Urban Renewal Agency for weatherization and community development
projects.

Section 2 specifies that this legislation shall take effect
immediately.

EXISTING LAW: Under current law, a city or town can sell properties
at auction, but can only receive the amount of the tax lien. Surplus
monies are deposited with the County Comptroller. If after five years
such monies remain unclaimed, they are turned over to the state.

JUSTIFICATION: While much of the City of Buffalo is experiencing a
surge of urban revitalization, many communities are struggling with
the effects of decades of economic distress- population loss, high
unemployment and poverty rates-resulting in an aging housing stock
that is increasingly in disrepair. The City of Buffalo has taken
numerous steps to combat these issues through the creation of
emergency home repair and weatherization programs; however, the need
for these types of programs greatly outmatches the funding.

This legislation will allow the City of Buffalo to retain surplus
funds received from properties sold at local tax foreclosure that are
in excess of the amount of the municipality's tax lien. These monies
will be directed to the city's Urban Renewal Agency, which is
responsible for administering weatherization and home repair programs
as well as community development projects, for the purpose of aiding
responsible homeowners and furthering the mission of BURA.


FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall
apply to any surplus funds from the proceeds of a tax lien foreclosure
paid into court on or after such effective date.

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

                                  6681

                            I N  S E N A T E

                            February 26, 2014
                               ___________

Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT relating to final judgment in foreclosures by in rem  proceedings
  in the city of Buffalo

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

  Section 1.  Final  judgment;  proceedings  in  the  city  of  Buffalo.
Notwithstanding  the provisions of section 1136 of the real property tax
law, the following provisions shall apply to final judgments in  in  rem
proceedings taken in the city of Buffalo.  1. Generally. The court shall
have full power to determine and enforce in all respects the priorities,
rights,  claims and demands of the several parties to the proceeding, as
the same exist according  to  law,  including  the  priorities,  rights,
claims  and  demands of the respondents as between themselves. The court
shall further determine upon proof and shall  make  findings  upon  such
proof whether there has been due compliance by the tax district with the
provisions of article 11 of the real property tax law.
  2.  When  an  answer  has been interposed. (a) When an answer has been
interposed by a party other than a tax district as to any parcel of real
property included in the petition described in section 1123 of the  real
property  tax  law and the court determines that the answer is meritori-
ous, the court shall dismiss the petition of foreclosure, with or  with-
out prejudice, as to the affected parcel or parcels, unless an agreement
is  executed pursuant to subdivision 2 of section 1150 of the real prop-
erty tax law.  If the court determines that the answer is not  meritori-
ous, the court shall make a final judgment awarding to such tax district
the  right to convey title to the affected parcel or parcels in the same
manner as provided by subdivision three of this section.
  (b) When an answer has been interposed by another tax district  as  to
any  parcel  and  the court shall determine that such other tax district
has an interest in such parcel, then and in that event the tax districts
having an interest in such parcel may by  agreement  between  themselves
pursuant  to  subdivision 1 of section 1150 of the real property tax law
provide (i) for a conveyance without sale of any such parcel to  one  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14129-01-4

S. 6681                             2

such  tax districts free and clear of any right, title or interest in or
lien upon such parcel or such other tax district or  districts  or  (ii)
for  a  conveyance  without  sale of any such  parcel to one of such tax
districts  subject  to any right, title or interest in or lien upon such
parcel of such other tax  district  or  districts.  In  either  of  such
events, the court shall in its judgment expressly dispense with the sale
and  direct  the  making  and execution of a conveyance by the enforcing
officer in accordance with such agreement. In the  absence  of  such  an
agreement,  the  court shall make a final judgment directing the sale of
such parcel in the same manner as provided by subdivision four  of  this
section, except that the conveyance may expressly be made subject to tax
liens of a tax district as provided herein.
  3.  When  no  answer has been interposed. The court shall make a final
judgment awarding to such tax district the right to convey title to  any
parcel  of  real  property  described in the petition of foreclosure not
redeemed as provided in article 11 of the real property tax law  and  as
to which no answer is interposed as provided herein. In addition  there-
to, where the enforcing officer has requested that such a parcel be sold
pursuant  to  subdivision  four of this section without the tax district
taking title thereto, the judgment shall so direct. Otherwise such judg-
ment shall contain a direction to  the  enforcing  officer  of  the  tax
district  to  prepare, execute and cause to be recorded a deed conveying
to such tax district full and complete title to such  parcel.  Upon  the
execution of such deed, the tax district shall be seized of an estate in
fee simple absolute in such parcel and all persons, including the state,
infants,  incompetents, absentees and non-residents who may have had any
right, title, interest, claim, lien or equity of redemption in  or  upon
such  parcel  shall  be barred and forever foreclosed of all such right,
title, interest, claim, lien or equity of redemption. The  tax  district
may  sell  any parcel so acquired in the manner provided by section 1166
of the real property tax law if it does not choose to retain the  parcel
for a public use.
  4.  Court-ordered  sales.  Where the enforcing officer requests that a
parcel be sold without the tax district taking title thereto, the  judg-
ment  shall  direct that a public auction shall be conducted by or under
the direction of the enforcing officer. Public notice of such sale shall
be given once a week for at least three successive weeks in a  newspaper
published  in  the  county  in  which such tax district is situated. The
terms and conditions of such sale shall be as prescribed by court order,
provided that all proceeds including any surplus, shall be paid  to  the
enforcing officer for the benefit of the Buffalo urban renewal agency to
support  the agency's weatherization and community development projects.
At the conclusion of such sale the enforcing officer shall  prepare  and
execute  a  deed  conveying  to  the  purchaser or its designee full and
complete title to such parcel. Upon the delivery and acceptance of  such
deed, the grantee shall be seized of an estate in fee simple absolute in
such parcel and all persons, including the state, infants, incompetents,
absentees and non-residents who may have had any right, title, interest,
claim,  lien  or  equity  of  redemption in or upon such parcel shall be
barred and forever foreclosed of all such right, title, interest, claim,
lien or equity of redemption.
  S 2. This act shall take effect immediately and  shall  apply  to  any
surplus  funds  from  the proceeds of a tax lien foreclosure sale in the
city of Buffalo paid into court on or after such effective date.

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