S T A T E   O F   N E W   Y O R K
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                                  1732

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 5, 2009
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to authorize the city of Utica to enter into a contract  to  sell
  some or all of the delinquent tax liens held by such city to a private
  party; and providing for the repeal of such provisions upon expiration
  thereof

  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 and until December 31, 2009, the City of Utica
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  condi-
tions:
  (a)  The  consideration  to  be paid may be more or less than the face
amount of the tax liens sold.
  (b) Property owners shall be given at least 30 days advance notice  of
such 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
thereto.
  (c)  The  City  of  Utica  shall  set  the terms and conditions of the
contract of sale.
  (d) The tax lien purchaser must 30 days prior to the  commencement  of
any  foreclosure  action provide to the City of Utica a list of liens to
be foreclosed. The City of Utica 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. The tax lien purchaser shall provide the foreclosure list  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04251-01-9
              

S. 1732                             2

the  City  of  Utica, along with the applicable repurchase price of each
lien, by certified mail, and the City of Utica 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 City of Utica 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 City of Utica shall fail to opt to
repurchase the lien or liens the tax lien purchaser shall have the right
to commence a foreclosure action immediately.
  (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.  This  act shall take effect immediately and shall expire and be
deemed repealed on and after December 31, 2011.