NY State Senate Bill 2009-S1223

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to judiciary
Jan 28, 2009	referred to judiciary

co-Sponsors

2009-S1223 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add Art 15 §470, RP L

2009-S1223 (ACTIVE) - Summary

Establishes the urban homestead act for commercial property; allows municipalities to sell foreclosed property for $1 plus closing costs to individuals with a qualified small business plan.

2009-S1223 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1223

 TITLE OF BILL :
An act to amend the real property law, in relation to establishing the
urban homestead act for commercial property


 PURPOSE :
Establishes the Urban Homestead Act for Commercial property.

 SUMMARY OF PROVISIONS :
New article 15 of the real property law is amended by adding section
470.

This section allows for the purchase of certain In Rem property,
located in economically distressed urban areas, from municipalities
for commercial homestead purposes. The commercial properties acquired
by the municipality by foreclosure in economically distressed areas
may be sold to eligible applicants of a small business to benefit the
local economy.  The property may be acquired by the applicant for one
dollar.

Accountability is important in a program such as this, and therefore
if the eligible applicant has not established the small business
within six months after acquisition, the property shall revert back to
the municipality. Additionally, the applicant must operate the

business for one year, or the property shall revert back to
municipality.

Effective date is the ninetieth day after it shall have become law.

 JUSTIFICATION :
There exists throughout New York state a significant number of
dwellings, which are deteriorated and are vacant or underutilized. The
creation of the Urban Homestead Act for Commercial properties would
provide a mechanism to revitalize these buildings and subsequently
enhance inner cities by focusing directly on the needs, aspirations
and expectations of citizens and residents. As a means of increasing
small business opportunities and strengthening communities
economically, the creation of a municipal Urban Homestead Program for
the purchase of commercial. In Rem properties provides a foundation
for long-term sustainable redevelopment. Specifically, the creation of
such Act creates a way for neighborhoods to further tailor public
services to meet their specific needs, i.e. creation of service
oriented businesses, daycare, etc.

 LEGISLATIVE HISTORY :


 FISCAL IMPLICATIONS :
To be determined.

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become law.

2009-S1223 (ACTIVE) - Bill Text download pdf

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

                                  1223

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 28, 2009
                               ___________

Introduced  by  Sens. THOMPSON, KRUEGER, PARKER, SMITH -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Judiciary

AN  ACT  to amend the real property law, in relation to establishing the
  urban homestead act for commercial property

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

  Section  1.  This  act  shall  be known and may be cited as the "urban
homestead act."
  S 2. The real property law is amended by adding a new  article  15  to
read as follows:
                               ARTICLE 15
                             URBAN HOMESTEAD
SECTION 470. URBAN HOMESTEAD; COMMERCIAL PROPERTY.
  S  470.  URBAN  HOMESTEAD; COMMERCIAL PROPERTY. 1. COMMERCIAL PROPERTY
ACQUIRED   THROUGH FORECLOSURE BY  A  MUNICIPALITY  IN  AN  ECONOMICALLY
DISTRESSED AREA MAY BE SOLD TO  AN ELIGIBLE APPLICANT FOR THE FURNISHING
BY SUCH APPLICANT OF A SMALL BUSINESS TO BENEFIT THE LOCAL COMMUNITY.
  2.  SUCH  PROPERTY  MAY  BE  ACQUIRED BY AN ELIGIBLE APPLICANT FOR ONE
DOLLAR PLUS  CLOSING COSTS, PAID TO THE MUNICIPALITY.
  3. COMMERCIAL PROPERTY ACQUIRED THROUGH FORECLOSURE BY A  MUNICIPALITY
MUST  BE  IN THE POSSESSION OF THE MUNICIPALITY FOR THREE YEARS IN ORDER
TO QUALIFY FOR A COMMERCIAL  HOMESTEAD PURCHASE.
  4. IF THE ELIGIBLE APPLICANT HAS NOT ESTABLISHED  THE  SMALL  BUSINESS
WITHIN  SIX  MONTHS AFTER ACQUISITION, THE PROPERTY SHALL REVERT BACK TO
THE MUNICIPALITY.
  5. THE ELIGIBLE APPLICANT MUST OPERATE THE BUSINESS FOR ONE  YEAR,  OR
THE PROPERTY  SHALL REVERT BACK TO THE MUNICIPALITY.
  6.  AN ELIGIBLE APPLICANT MAY TRANSFER, RENT OR SELL THE PROPERTY FREE
OF ENCUMBRANCES OF THE MUNICIPALITY FOLLOWING ONE YEAR OF OPERATION OF A
SMALL BUSINESS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04702-01-9

S. 1223                             2

  7. FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS  SHALL  HAVE  THE
FOLLOWING MEANINGS:
  (A)  "ELIGIBLE APPLICANT" SHALL MEAN AN INDIVIDUAL OR GROUP OF PERSONS
WITH A BUSINESS PLAN HAVING THE FOLLOWING CRITERIA:
  (I) COMPLETION OF BUSINESS OR ENTREPRENEURIAL TRAINING;
  (II) CREDIT HISTORY REPORT;
  (III) A FINANCIAL PLAN;
  (IV) A PROPERTY REHABILITATION PLAN;
  (V) DOCUMENTED BUSINESS EXPERIENCE;
  (VI) REQUIRED LICENSING OR CERTIFICATION TO OPERATE THE BUSINESS;
  (VII) AN ACCOUNTANT;
  (VIII) TAX FILES;
  (IX) BANK AND ACCOUNT INFORMATION/DOCUMENTATION;
  (X) PROOF OF INSURANCE; AND
  (XI) LEGAL REPRESENTATION.
  (B) "ECONOMICALLY DISTRESSED AREAS" SHALL MEAN AREAS DETERMINED BY THE
COMMISSIONER OF ECONOMIC DEVELOPMENT ON THE BASIS OF CRITERIA INDICATIVE
OF ECONOMIC  DISTRESS,  INCLUDING  POVERTY  RATES,  NUMBERS  OF  PERSONS
RECEIVING  PUBLIC  ASSISTANCE,  UNEMPLOYMENT  RATES,  RATE OF EMPLOYMENT
DECLINE, POPULATION LOSS, RATE OF PER CAPITA INCOME CHANGE,  DECLINE  IN
ECONOMIC  ACTIVITY AND PRIVATE INVESTMENT, AND  SUCH OTHER INDICATORS AS
THE COMMISSIONER DEEMS APPROPRIATE. ECONOMICALLY  DISTRESSED  AREAS  MAY
INCLUDE  CITIES,  MUNICIPALITIES,  BLOCK  NUMBERING  AREAS,  AND  CENSUS
TRACTS.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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Senate Bill S1223

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

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co-Sponsors

2009-S1223 (ACTIVE) - Details

2009-S1223 (ACTIVE) - Summary

2009-S1223 (ACTIVE) - Sponsor Memo

2009-S1223 (ACTIVE) - Bill Text download pdf

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Sponsored By

Antoine M. Thompson

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Actions

co-Sponsors

Liz Krueger

Kevin S. Parker

Malcolm Smith

2009-S1223 (ACTIVE) - Details

2009-S1223 (ACTIVE) - Summary

2009-S1223 (ACTIVE) - Sponsor Memo

2009-S1223 (ACTIVE) - Bill Text download pdf

Comments