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

                                  2177

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2009
                               ___________

Introduced  by M. of A. McENENY -- read once and referred to the Commit-
  tee on Real Property Taxation

AN ACT to amend the real property tax law, in relation to the  provision
  of  personal  notice to a real property owner of the commencement of a
  foreclosure proceeding and the entry of  a  default  judgment  against
  such property, and requiring taxing authorities to reconvey foreclosed
  property  with  4  months of service of the default judgment, upon the
  former owner if the taxes, interest and penalties are paid thereon

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

  Section 1. Subdivision 7 of section 1123 of the real property tax law,
as  amended  by  chapter  532 of the laws of 1994, is amended to read as
follows:
  7. An answer to a petition of foreclosure shall be  duly  verified  by
the  respondent  and  shall set forth in detail the nature and amount of
his or her interest and any defense or objections to the foreclosure  of
the  tax lien. THE ANSWER MAY CLAIM ANY SURPLUS RECEIVED AT THE FORECLO-
SURE SALE OVER THE AMOUNT OF MONEY OWED FOR TAXES, INTEREST  AND  PENAL-
TIES.  Such  answer shall be filed in the office of the county clerk and
served on the attorney for the tax district foreclosing on or before the
last day for redemption, as specified in the notice of petition.   When-
ever  an  answer  has  been  interposed as herein provided, either party
shall have an absolute right to a severance of the proceeding as to  the
parcel or parcels to which the answer relates.
  S  2. Section 1125 of the real property tax law is amended by adding a
new subdivision 1-a to read as follows:
  1-A. IN THE EVENT THAT THE NOTICE MAILED  BY  CERTIFIED  MAIL  TO  ANY
OWNER  IS  RETURNED,  WITHOUT  A  SIGNED  RECEIPT, AS UNDELIVERED TO THE
ENFORCING OFFICER OR IF THE ENFORCING OFFICER IS UNABLE TO SECURE  PROOF
OF  RECEIPT  FROM  THE  UNITED STATES POSTAL SERVICE, SUCH OFFICER SHALL
MAIL SUCH NOTICE TO THE OWNER BY ORDINARY FIRST  CLASS  MAIL  AND  SHALL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00806-01-9
              

A. 2177                             2

AFFIX  SUCH  NOTICE TO THE DOOR OF THE ACTUAL DWELLING PLACE OR PLACE OF
BUSINESS OF THE OWNER WITHIN THE STATE OR, IF SUCH OWNER IS  NOT  WITHIN
THE  STATE,  SHALL  AFFIX  SUCH  NOTICE TO THE DOOR OF THE REAL PROPERTY
WHICH  IS  THE  SUBJECT  OF  THE FORECLOSURE PROCEEDING AND IF SUCH REAL
PROPERTY IS UNDEVELOPED, THE NOTICE SHALL BE  POSTED  IN  A  CONSPICUOUS
LOCATION  ON THE PROPERTY. UPON THE PROVISION OF NOTICE PURSUANT TO THIS
SUBDIVISION, THE ENFORCING OFFICER SHALL ATTEST TO SUCH IN AN  AFFIDAVIT
FILED IN THE OFFICE OF THE COUNTY CLERK.
  S  3. Paragraph (b) of subdivision 3 of section 1125 of the real prop-
erty tax law, as amended by chapter 579 of the laws of 1995, is  amended
to read as follows:
  (b)  The  failure  of an intended recipient to receive any such notice
shall not invalidate any tax [or prevent the enforcement of the same  as
provided by law].  FORECLOSURE BY DEFAULT MAY ONLY BE TAKEN IF THE OWNER
HAS  ACTUALLY  RECEIVED THE NOTICE OF FORECLOSURE OR IF THERE HAS BEEN A
DILIGENT EFFORT TO PROVIDE ACTUAL NOTICE TO THE OWNER AND  SUCH  EFFORTS
ARE FUTILE.
  S  4. Section 1131 of the real property tax law, as amended by chapter
532 of the laws of 1994, is amended to read as follows:
  S 1131. Default judgment. 1. In the event of a failure  to  redeem  or
answer  by  any person having the right to redeem or answer, such person
shall forever be barred and foreclosed of all right, title, and interest
and equity of redemption in and to the parcel in which the person has an
interest and a judgment in  foreclosure  may  be  taken  by  default  as
provided  by  subdivision  three of section eleven hundred thirty-six of
this title. A motion to reopen any such default may not be brought later
than [one month] THIRTY-ONE DAYS after [entry] SERVICE of  the  judgment
BY  CERTIFIED MAIL UPON THE OWNER.  IF THE JUDGMENT IS RETURNED AS UNDE-
LIVERED OR UNCLAIMED TO THE ENFORCEMENT OFFICER OR  IF  THE  ENFORCEMENT
OFFICER  IS  UNABLE  TO  SECURE PROOF OF RECEIPT THEREOF FROM THE UNITED
STATES POSTAL SERVICE, SUCH JUDGMENT SHALL BE REMAILED TO THE  OWNER  BY
ORDINARY  FIRST  CLASS MAIL AND THE ENFORCEMENT OFFICER SHALL AFFIX SUCH
JUDGMENT TO THE DOOR OF THE ACTUAL DWELLING PLACE OR PLACE  OF  BUSINESS
OF THE OWNER WITHIN THE STATE OR, IF SUCH OWNER IS NOT WITHIN THE STATE,
SHALL  AFFIX  SUCH  JUDGMENT  TO  THE DOOR OF THE REAL PROPERTY WHICH IS
SUBJECT TO FORECLOSURE AND IF SUCH REAL  PROPERTY  IS  UNDEVELOPED,  THE
JUDGMENT SHALL BE POSTED IN A CONSPICUOUS LOCATION ON THE PROPERTY.
  2.  IN ADDITION TO SERVICE OF THE DEFAULT JUDGMENT, THE OWNER SHALL BE
SERVED BY THE ENFORCEMENT OFFICER WITH THE FOLLOWING NOTICE:
  ".... (NAME OF THE TAX AUTHORITY)...NOW  OWNS  YOUR  PROPERTY  LOCATED
AT:.........  YOU HAVE 31 DAYS TO FILE A MOTION TO VACATE WITH THE COURT
LISTED ON THE DEFAULT JUDGMENT IF YOU WISH TO REDEEM  YOUR  PROPERTY  OR
FILE  AN  ANSWER  TO  THE  FORECLOSURE PROCEEDING. YOU SHOULD CONTACT AN
ATTORNEY IMMEDIATELY IF  YOU  WANT  TO  CONTEST  THIS  DEFAULT  JUDGMENT
AGAINST YOU."
  S 5. The real property tax law is amended by adding a new section 1133
to read as follows:
  S  1133.  RECONVEYANCE  OF  FORECLOSED  PROPERTY. THE TAXING AUTHORITY
SHALL RECONVEY THE FORECLOSURE PROPERTY BACK TO THE FORMER OWNER THEREOF
FOR FULL PAYMENT OF ALL UNPAID TAXES, INTEREST,  AND  LAWFUL  COSTS  AND
PENALTIES  FOR  FOUR  MONTHS  AFTER THE DEFAULT JUDGMENT HAS BEEN SERVED
UPON SUCH FORMER OWNER.
  S 6. This act shall take effect immediately.