Senate Bill S661

2009-2010 Legislative Session

Authorizes certain cities and villages to expedite foreclosure on substantially physically distressed and unoccupied residential, commercial or industrial properties

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Archive: Last Bill Status - In Senate Committee Local Government 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to local government
Jan 12, 2009	referred to local government

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2009-S661 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: Real Property Tax Law
Laws Affected:: Add §1141, amd §1110, RPT L

2009-S661 (ACTIVE) - Summary

Authorizes certain cities and villages to expedite foreclosure on substantially physically distressed and unoccupied residential, commercial or industrial properties; establishes procedures requiring the consideration of various factors.

2009-S661 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S661

 TITLE OF BILL :
An act to amend the real property tax law, in relation to the
expedited foreclosure of certain tax liens


 PURPOSE :
The purpose of this bill is to give villages and cities having fewer
than 1 million people the option to execute expedited tax lien
foreclosures for properties that contain unoccupied buildings that are
physically distressed and which are a danger to the general public.

 SUMMARY OF PROVISIONS :
Section 1: Creates a new section 1141 of the Real Property Tax Law to
establish a new expedited procedure allowing certain villages and
cities to reclaim properties that are substantially physically
distressed and which endanger the general public. The bill contains
several safe guards to ensure that only truly dilapidated buildings
will be taken over by municipalities for tax liens. The safe guards
are as follows:

A. This expedited tax lien foreclosure proceeding will only apply to
properties that are determined to be in "substantial physical
distress". Under the criteria, the property must first, be in a rapid
state of decay. Second, the property while dilapidated or in a

structurally fragile state, could be economically secured and
stabilized and ultimately restored. Third, if the building is allowed
to continue to deteriorate, it would irreparably hinder future efforts
to restore such building's historic, architectural or structural
features.

B. Before such an expedited tax lien procedure could be used, the
eligible city or village would need to conduct a public hearing and
find that 9 criteria had been satisfied. Among the 9 criteria include
that:

- the property is deemed to be in "substantial physical distress" as
defined in A. above.

- the extent of the physical deterioration of the property must be
examined.

- that the building is a danger to the public health, safety or
welfare.

- the ability and willingness of the property owner to pay past due
taxes and make repairs to secure and stabilize the structure.

- the historic, architectural, environmental or cultural significance
of the property.

- the importance and urgency of the municipal interest in taking title
to the property to preserve the historical, architectural or cultural
character of the surrounding neighborhood.

Section 2: Amends Real Property Tax Law section 1110(2) to make a
technical change to the law to give the municipality freedom not to
accept title to the property in question if the property satisfies
certain criteria.

Section 3: Effective Date.

 EXISTING LAW :
Under current law, municipalities must wait approximately 2 years for
commercial property and 3 or 4 years for residential or farm
properties before they can begin to take action to foreclose on a
property to collect tax liens. In practice, this means that in certain
situations, particularly with architecturally significant or otherwise
historic or older structures, these valuable properties structurally
degrade beyond the point where they can be economically secured and
stabilized so that they can have any future viable use.

 JUSTIFICATION :
Under current law, municipalities must wait for a long period of time
to foreclose on an architecturally significant or otherwise historic
residential, commercial or industrial property that is currently
unoccupied. Therefore, when the municipality ultimately obtains title,
the building is often beyond repair due to neglect. However, if the
municipality were allowed to step in at an earlier date, the older
building could be stabilized in an economically reasonable fashion and
ultimately rehabilitated for reuse. There are historical, citizens and
other residents organizations that are anxious to quickly take title
to certain unoccupied residential, commercial and industrial
properties and rehabilitate them in a timely fashion for immediate
reuse.

This bill will give municipalities and certain civic organizations the
tools they need to quickly secure unoccupied buildings and
rehabilitate them and bring them back on to the tax rolls. The
alternative is to allow these structures to decay beyond the point of
rehabilitation. Then the only choice a municipality has is to incur
further expense to demolish these buildings and hope to find a buyer
for small parcels of vacant urban land in neighborhoods that may not
be attractive for such investors.

 LEGISLATIVE HISTORY :
S.6229-A of 2004, Passed Senate in 2004, S.2353 of 2005/2006, S.428 of
2007/2008

 FISCAL IMPLICATIONS :
None for the State of New York.

 LOCAL FISCAL IMPLICATIONS :
This bill will aid municipalities in their efforts to collect real
property tax revenue in a timely manner and allow municipalities to
take title to properties that can be rehabilitated and returned to the
tax rolls.

 EFFECTIVE DATE :
Immediate.

2009-S661 (ACTIVE) - Bill Text download pdf

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

                                   661

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 12, 2009
                               ___________

Introduced  by  Sens.  LARKIN,  BONACIC,  FARLEY,  O. JOHNSON,  LEIBELL,
  SALAND, VOLKER -- read twice and ordered printed, and when printed  to
  be committed to the Committee on Local Government

AN  ACT to amend the real property tax law, in relation to the expedited
  foreclosure of certain tax liens

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

  Section  1.  The  real  property  tax  law  is amended by adding a new
section 1141 to read as follows:
  S 1141. EXPEDITED FORECLOSURE OF SUBSTANTIALLY  PHYSICALLY  DISTRESSED
AND  UNOCCUPIED RESIDENTIAL, COMMERCIAL OR INDUSTRIAL PROPERTIES. 1. THE
PROVISIONS OF THIS SECTION ARE AN OPTIONAL ALTERNATIVE TO THE PROVISIONS
OF THIS TITLE AND MAY BE USED BY ANY CITY HAVING FEWER THAN ONE  MILLION
INHABITANTS  OR  ANY  VILLAGE. EXCEPT AS SUPERSEDED BY THE PROVISIONS OF
THIS SECTION, THE OTHER PROVISIONS OF THIS TITLE SHALL APPLY.
  2. THIS SECTION APPLIES TO FORECLOSURES OF TAX LIENS ON  REAL  PROPER-
TIES IMPROVED BY UNOCCUPIED RESIDENTIAL, COMMERCIAL OR INDUSTRIAL BUILD-
INGS  AND  OTHER  ARTICLES AND STRUCTURES, SUBSTRUCTURES AND SUPERSTRUC-
TURES ERECTED UPON,  UNDER  OR  ABOVE  THE  LAND,  OR  AFFIXED  THERETO,
INCLUDING  BRIDGES,  WHARVES AND PIERS, WHICH ARE IN A STATE OF SUBSTAN-
TIAL PHYSICAL DISTRESS.  FOR THE PURPOSES OF THIS SECTION,  "SUBSTANTIAL
PHYSICAL DISTRESS" SHALL MEAN THAT THE BUILDING OR PROPERTY IN QUESTION:
  (A)  IS  IN A RAPID STATE OF DETERIORATION AND IS OR POTENTIALLY COULD
BE AN IMMINENT DANGER TO THE HEALTH, SAFETY OR WELFARE OF THE COMMUNITY;
  (B) WHILE IN A DILAPIDATED OR STRUCTURALLY FRAGILE STATE, AND COULD BE
ECONOMICALLY SECURED AND STABILIZED AND ULTIMATELY  RESTORED,  REHABILI-
TATED OR RECONSTRUCTED TO BECOME USABLE AGAIN; AND
  (C)  IF  ALLOWED  TO CONTINUE TO DETERIORATE, WOULD IRREPARABLY HINDER
FUTURE EFFORTS TO RESTORE SUCH  BUILDING'S  HISTORIC,  ARCHITECTURAL  OR
STRUCTURAL FEATURES, OR ANY OTHER BENEFICIAL PHYSICAL ATTRIBUTES OF SUCH
BUILDING.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02537-01-9

S. 661                              2

  3.  WHEN  A PARCEL OF REAL PROPERTY APPEARS TO BE IN SUBSTANTIAL PHYS-
ICAL DISTRESS AND THE TAXES ON SUCH PROPERTY REMAIN UNPAID ONE MONTH  OR
MORE AFTER THE LIEN DATE, THE LOCAL LEGISLATIVE BODY OF AN ELIGIBLE CITY
OR  VILLAGE  MAY  CONDUCT  A HEARING ON AT LEAST TEN DAYS' NOTICE TO THE
OWNER  AND  MAY  ADOPT A RESOLUTION AT THE CONCLUSION OF SUCH HEARING OR
THEREAFTER TO AUTHORIZE THE USE OF THE EXPEDITED PROCEDURE AUTHORIZED BY
THIS SECTION, AFTER CONSIDERATION OF THE FOLLOWING:
  (A) THAT THE PROPERTY IS DETERMINED BY THE ELIGIBLE CITY OR VILLAGE TO
BE IN SUBSTANTIAL PHYSICAL DISTRESS;
  (B) THE EXISTENCE AND EXTENT OF PHYSICALLY  DISTRESSED  CONDITIONS  OF
THE PROPERTY;
  (C)  THE DANGER TO PUBLIC HEALTH, SAFETY OR WELFARE POSED BY THE PROP-
ERTY;
  (D) THE RATE OF DETERIORATION OF THE PROPERTY;
  (E) THE ABILITY AND WILLINGNESS OF THE OWNER TO PAY THE  CHARGES  OWED
WITHIN A REASONABLE PERIOD OF TIME;
  (F) THE ABILITY AND WILLINGNESS OF THE OWNER TO MAKE REPAIRS TO SECURE
AND STABILIZE THE PROPERTY WITHIN A REASONABLE PERIOD OF TIME;
  (G)  THE  INTENTION,  IF  ANY,  OF THE OWNER TO CONVERT THE USE OF THE
PROPERTY OR SUBSTANTIALLY ALTER OR DEMOLISH ANY IMPROVEMENT THEREON;
  (H) THE HISTORIC,  ARCHITECTURAL,  ENVIRONMENTAL,  CULTURAL  OR  OTHER
SIGNIFICANCE OF THE PROPERTY TO THE NEIGHBORHOOD OR COMMUNITY; AND
  (I)  THE  IMPORTANCE  AND  URGENCY OF THE ELIGIBLE CITY'S OR VILLAGE'S
LEGITIMATE INTEREST IN ACQUIRING THE PROPERTY FROM THE OWNER TO PRESERVE
THE HISTORICAL, ARCHITECTURAL, ENVIRONMENTAL OR  CULTURAL  CHARACTER  OF
THE SURROUNDING NEIGHBORHOOD.
  4.  UPON THE ADOPTION OF A RESOLUTION AUTHORIZING THE USE OF THE EXPE-
DITED PROCEDURE AUTHORIZED BY THIS SECTION, THE CLERK OF THE LEGISLATIVE
BODY SHALL MAIL A CERTIFIED COPY OF SUCH RESOLUTION TO THE OWNER AND THE
ENFORCING OFFICER. FIVE DAYS AFTER RECEIVING THE SAME, OR AS SOON THERE-
AFTER AS IS PRACTICABLE, THE ENFORCING OFFICER  SHALL  FILE  A  LIST  OF
DELINQUENT  TAXES  PERTAINING  TO  THE  AFFECTED  PARCEL  IN  THE MANNER
PROVIDED BY SECTION ELEVEN HUNDRED TWENTY-TWO OF THIS TITLE.  ONE  MONTH
AFTER  SUCH FILING, OR AS SOON THEREAFTER AS IS PRACTICABLE, THE ENFORC-
ING OFFICER SHALL FILE A  PETITION  OF  FORECLOSURE  PERTAINING  TO  THE
AFFECTED  PARCEL  IN THE MANNER PROVIDED BY SECTION ELEVEN HUNDRED TWEN-
TY-THREE OF THIS TITLE, AND SHALL FURNISH  PUBLIC  AND  PERSONAL  NOTICE
THEREOF  IN  THE  MANNER PROVIDED BY SECTIONS ELEVEN HUNDRED TWENTY-FOUR
AND ELEVEN HUNDRED TWENTY-FIVE OF THIS TITLE. THE REDEMPTION PERIOD WITH
RESPECT TO SUCH PARCEL SHALL EXPIRE THREE MONTHS AFTER THE FIRST  PUBLI-
CATION OF SUCH NOTICE.
  S  2.   Subdivision 2 of section 1110 of the real property tax law, as
amended by chapter 532 of the laws  of  1994,  is  amended  to  read  as
follows:
  2.    [The]  EXCEPT  AS  OTHERWISE  PROVIDED IN SECTION ELEVEN HUNDRED
FORTY-ONE OF THIS ARTICLE, THE redemption period shall expire two  years
after  lien date, except that a tax district may increase the redemption
period for residential or  farm  property  in  the  manner  provided  by
section  eleven hundred eleven of this [article] TITLE.  Notwithstanding
the foregoing, if  the  notice  published  pursuant  to  section  eleven
hundred twenty-four of this article specifies a later date for the expi-
ration  of  the redemption period, the redemption period shall expire on
the date so specified.
  S 3. This act shall take effect immediately and shall apply to taxable
years commencing on or after the first of January  next  succeeding  the
date on which it shall have become a law.

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Senate Bill S661

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

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co-Sponsors

2009-S661 (ACTIVE) - Details

2009-S661 (ACTIVE) - Summary

2009-S661 (ACTIVE) - Sponsor Memo

2009-S661 (ACTIVE) - Bill Text download pdf

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Sponsored By

William Larkin

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

co-Sponsors

John J. Bonacic

Hugh T. Farley

Owen H. Johnson

Vincent L. Leibell

2009-S661 (ACTIVE) - Details

2009-S661 (ACTIVE) - Summary

2009-S661 (ACTIVE) - Sponsor Memo

2009-S661 (ACTIVE) - Bill Text download pdf

Comments