The New York State Senate

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

                                 373--A

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M. of A. HOYT, FINCH, GIGLIO, MAGNARELLI, MILLMAN, SCHI-
  MEL, JAFFEE, BROOK-KRASNY, CAHILL, LUPARDO, ENGLEBRIGHT,  SCARBOROUGH,
  P. RIVERA, PERRY, LAVINE, ABINANTI, WEPRIN, BRONSON -- Multi-Sponsored
  by  -- M. of A. BARCLAY, BOYLAND, BRENNAN, BURLING, CROUCH, GABRYSZAK,
  MAISEL, McENENY, McKEVITT, McLAUGHLIN,  MOLINARO,  MONTESANO,  MURRAY,
  ROBERTS, ROBINSON, SPANO, TENNEY, WEISENBERG -- read once and referred
  to  the Committee on Local Governments -- reported and referred to the
  Committee on Ways and Means --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  not-for-profit  corporation  law and the public
  authorities law, in relation to providing for the creation and  admin-
  istration  of  land  banks, for the conversion of vacant, abandoned or
  tax-delinquent properties into productive use

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

  Section  1.  The not-for-profit corporation law is amended by adding a
new article 16 to read as follows:
                               ARTICLE 16
                               LAND BANKS
SECTION 1600. SHORT TITLE.
        1601. LEGISLATIVE INTENT.
        1602. DEFINITIONS.
        1603. CREATION AND EXISTENCE.
        1604. APPLICABILITY OF NEW YORK LAW.
        1605. BOARD OF DIRECTORS.
        1606. STAFF.
        1607. POWERS.
        1608. ACQUISITION OF PROPERTY.
        1609. DISPOSITION OF PROPERTY.
        1610. FINANCING OF LAND BANK OPERATIONS.

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

                                                           LBD01212-09-1

A. 373--A                           2

        1611. BORROWING AND ISSUANCE OF BONDS.
        1612. PUBLIC RECORDS AND PUBLIC MEETINGS.
        1613. DISSOLUTION OF LAND BANK.
        1614. CONFLICTS OF INTEREST.
        1615. CONSTRUCTION, INTENT AND SCOPE.
        1616. DELINQUENT PROPERTY TAX ENFORCEMENT.
        1617. CONTRACTS.
S 1600. SHORT TITLE.
  THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "LAND BANK ACT".
S 1601. LEGISLATIVE INTENT.
  THE  LEGISLATURE  FINDS  AND  DECLARES THAT NEW YORK'S COMMUNITIES ARE
IMPORTANT TO THE SOCIAL AND ECONOMIC  VITALITY  OF  THE  STATE.  WHETHER
URBAN,  SUBURBAN, OR RURAL, MANY COMMUNITIES ARE STRUGGLING TO COPE WITH
VACANT, ABANDONED, AND TAX-DELINQUENT PROPERTIES.
  THERE EXISTS A CRISIS IN MANY CITIES AND THEIR METRO AREAS  CAUSED  BY
DISINVESTMENT  IN REAL PROPERTY AND RESULTING IN A SIGNIFICANT AMOUNT OF
VACANT AND ABANDONED PROPERTY. FOR EXAMPLE, CORNELL  COOPERATIVE  EXTEN-
SION  ASSOCIATION  OF ERIE COUNTY ESTIMATES THAT THE CITY OF BUFFALO HAS
THIRTEEN THOUSAND VACANT PARCELS, FOUR THOUSAND VACANT STRUCTURES AND AN
ESTIMATED TWENTY-TWO THOUSAND  TWO  HUNDRED  NINETY  VACANT  RESIDENTIAL
UNITS.  THIS  CONDITION OF VACANT AND ABANDONED PROPERTY REPRESENTS LOST
REVENUE TO LOCAL GOVERNMENTS AND LARGE COSTS  RANGING  FROM  DEMOLITION,
EFFECTS  OF  SAFETY HAZARDS AND SPREADING DETERIORATION OF NEIGHBORHOODS
INCLUDING RESULTING MORTGAGE FORECLOSURES.
  THE NEED EXISTS TO STRENGTHEN AND REVITALIZE THE ECONOMY OF THE  STATE
AND  ITS LOCAL UNITS OF GOVERNMENT BY SOLVING THE PROBLEMS OF VACANT AND
ABANDONED PROPERTY IN A COORDINATED MANNER AND TO FOSTER THE DEVELOPMENT
OF SUCH PROPERTY AND PROMOTE ECONOMIC GROWTH.  SUCH PROBLEMS MAY INCLUDE
MULTIPLE TAXING JURISDICTIONS LACKING COMMON POLICIES, INEFFECTIVE PROP-
ERTY INSPECTION, CODE ENFORCEMENT AND PROPERTY  REHABILITATION  SUPPORT,
LENGTHY  AND/OR  INADEQUATE  FORECLOSURE PROCEEDINGS AND LACK OF COORDI-
NATION AND RESOURCES TO SUPPORT ECONOMIC REVITALIZATION.
  THERE IS AN OVERRIDING PUBLIC NEED TO CONFRONT THE PROBLEMS CAUSED  BY
VACANT,  ABANDONED AND TAX-DELINQUENT PROPERTIES THROUGH THE CREATION OF
NEW TOOLS TO BE AVAILABLE TO COMMUNITIES THROUGHOUT  NEW  YORK  ENABLING
THEM TO TURN VACANT SPACES INTO VIBRANT PLACES.
  LAND BANKS ARE ONE OF THE TOOLS THAT CAN BE UTILIZED BY COMMUNITIES TO
FACILITATE  THE  RETURN OF VACANT, ABANDONED, AND TAX-DELINQUENT PROPER-
TIES TO PRODUCTIVE USE.  THE PRIMARY FOCUS OF LAND  BANK  OPERATIONS  IS
THE ACQUISITION OF REAL PROPERTY THAT IS TAX DELINQUENT, TAX FORECLOSED,
VACANT,  ABANDONED,  AND  THE USE OF TOOLS AUTHORIZED IN THIS ARTICLE TO
ELIMINATE THE HARMS AND LIABILITIES CAUSED BY SUCH PROPERTIES.
S 1602. DEFINITIONS.
  THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE  SHALL  HAVE
THE  MEANINGS  GIVEN  TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY
INDICATES OTHERWISE:
  (A) "BOARD OF DIRECTORS" OR "BOARD" SHALL MEAN THE BOARD OF  DIRECTORS
OF A LAND BANK;
  (B)  "LAND  BANK"  SHALL  MEAN  A  LAND  BANK  ESTABLISHED AS A TYPE C
NOT-FOR-PROFIT CORPORATION UNDER THIS CHAPTER AND IN ACCORDANCE WITH THE
PROVISIONS OF THIS ARTICLE AND PURSUANT TO THIS ARTICLE;
  (C) "FORECLOSING GOVERNMENTAL  UNIT"  SHALL  MEAN  "TAX  DISTRICT"  AS
DEFINED  IN  SUBDIVISION  SIX  OF SECTION ELEVEN HUNDRED TWO OF THE REAL
PROPERTY TAX LAW;
  (D) "MUNICIPALITY" SHALL MEAN A CITY, VILLAGE, TOWN  OR  COUNTY  OTHER
THAN A COUNTY LOCATED WHOLLY WITHIN A CITY;

A. 373--A                           3

  (E)  "SCHOOL  DISTRICT"  SHALL MEAN A SCHOOL DISTRICT AS DEFINED UNDER
THE EDUCATION LAW; AND
  (F)  "REAL  PROPERTY"  SHALL MEAN LANDS, LANDS UNDER WATER, STRUCTURES
AND ANY AND ALL EASEMENTS, AIR RIGHTS, FRANCHISES AND INCORPOREAL HERED-
ITAMENTS AND EVERY  ESTATE  AND  RIGHT  THEREIN,  LEGAL  AND  EQUITABLE,
INCLUDING  TERMS  FOR  YEARS  AND  LIENS BY WAY OF JUDGMENT, MORTGAGE OR
OTHERWISE, AND ANY AND ALL FIXTURES AND IMPROVEMENTS LOCATED THEREON.
S 1603. CREATION AND EXISTENCE.
  (A) ANY FORECLOSING GOVERNMENTAL UNIT MAY CREATE A LAND  BANK  BY  THE
ADOPTION OF A LOCAL LAW, ORDINANCE, OR RESOLUTION AS APPROPRIATE TO SUCH
FORECLOSING GOVERNMENTAL UNIT WHICH ACTION SPECIFIES THE FOLLOWING:
  (1) THE NAME OF THE LAND BANK;
  (2)  THE  NUMBER  OF  MEMBERS  OF  THE BOARD OF DIRECTORS, WHICH SHALL
CONSIST OF AN ODD NUMBER OF MEMBERS, AND SHALL BE  NOT  LESS  THAN  FIVE
MEMBERS NOR MORE THAN ELEVEN MEMBERS;
  (3) THE INITIAL INDIVIDUALS TO SERVE AS MEMBERS OF THE BOARD OF DIREC-
TORS, AND THE LENGTH OF TERMS FOR WHICH THEY ARE TO SERVE;
  (4)  THE QUALIFICATIONS, MANNER OF SELECTION OR APPOINTMENT, AND TERMS
OF OFFICE OF MEMBERS OF THE BOARD; AND
  (5) THE ARTICLES OF INCORPORATION FOR THE LAND BANK,  WHICH  SHALL  BE
FILED  WITH THE SECRETARY OF STATE IN ACCORDANCE WITH THE PROCEDURES SET
FORTH IN THIS CHAPTER.
  (B) TWO OR MORE FORECLOSING  GOVERNMENTAL  UNITS  MAY  ENTER  INTO  AN
INTERGOVERNMENTAL COOPERATION AGREEMENT WHICH CREATES A SINGLE LAND BANK
TO ACT ON BEHALF OF SUCH FORECLOSING GOVERNMENTAL UNITS, WHICH AGREEMENT
SHALL BE AUTHORIZED BY AND BE IN ACCORDANCE WITH THE PROVISIONS OF PARA-
GRAPH  (A)  OF  THIS  SECTION.    SUCH INTERGOVERNMENTAL AGREEMENT SHALL
INCLUDE PROVISIONS FOR DISSOLUTION OF SUCH LAND BANK.
  (C) ANY FORECLOSING GOVERNMENTAL UNITS AND ANY MUNICIPALITY MAY  ENTER
INTO  AN  INTERGOVERNMENTAL COOPERATION AGREEMENT WHICH CREATES A SINGLE
LAND BANK TO ACT ON BEHALF OF  SUCH  FORECLOSING  GOVERNMENTAL  UNIT  OR
UNITS AND MUNICIPALITY, WHICH AGREEMENT SHALL BE AUTHORIZED BY AND BE IN
ACCORDANCE  WITH  THE PROVISIONS OF PARAGRAPH (A) OF THIS SECTION.  SUCH
INTERGOVERNMENTAL AGREEMENT SHALL INCLUDE PROVISIONS FOR DISSOLUTION  OF
SUCH LAND BANK.
  (D)  EXCEPT  WHEN  A LAND BANK IS CREATED PURSUANT TO PARAGRAPH (B) OR
(C) OF THIS SECTION, IN THE EVENT A COUNTY CREATES  A  LAND  BANK,  SUCH
LAND  BANK  SHALL  HAVE THE POWER TO ACQUIRE REAL PROPERTY ONLY IN THOSE
PORTIONS OF SUCH COUNTY LOCATED OUTSIDE OF THE  GEOGRAPHICAL  BOUNDARIES
OF  ANY  OTHER  LAND  BANK CREATED BY ANY OTHER FORECLOSING GOVERNMENTAL
UNIT LOCATED PARTIALLY OR ENTIRELY WITHIN SUCH COUNTY.
  (E) A SCHOOL DISTRICT MAY PARTICIPATE IN A LAND BANK  PURSUANT  TO  AN
INTERGOVERNMENTAL  COOPERATION  AGREEMENT  WITH  THE FORECLOSING GOVERN-
MENTAL UNIT OR UNITS THAT CREATE THE LAND BANK,  WHICH  AGREEMENT  SHALL
SPECIFY  THE MEMBERSHIP, IF ANY, OF SUCH SCHOOL DISTRICT ON THE BOARD OF
DIRECTORS OF THE LAND BANK, OR THE ACTIONS OF THE LAND  BANK  WHICH  ARE
SUBJECT TO APPROVAL BY THE SCHOOL DISTRICT.
  (F)  EACH  LAND  BANK  CREATED  PURSUANT TO THIS ACT SHALL BE A TYPE C
NOT-FOR-PROFIT CORPORATION, AND SHALL HAVE PERMANENT AND PERPETUAL DURA-
TION UNTIL TERMINATED AND DISSOLVED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION SIXTEEN HUNDRED THIRTEEN OF THIS ARTICLE.
  (G) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO AUTHORIZE THE EXIST-
ENCE OF MORE THAN TEN LAND BANKS LOCATED  IN  THE  STATE  AT  ONE  TIME,
PROVIDED  FURTHER  THAT  EACH  FORECLOSING  GOVERNMENTAL  UNIT  OR UNITS
PROPOSING TO CREATE A LAND BANK SHALL SUBMIT SUCH LOCAL  LAW,  ORDINANCE
OR RESOLUTION AS REQUIRED BY PARAGRAPH (A) OF THIS SECTION, TO THE URBAN

A. 373--A                           4

DEVELOPMENT  CORPORATION, FOR ITS REVIEW AND APPROVAL. THE CREATION OF A
LAND BANK SHALL BE CONDITIONED UPON APPROVAL OF  THE  URBAN  DEVELOPMENT
CORPORATION.
  (H)  THE  OFFICE  OF THE STATE COMPTROLLER SHALL HAVE THE AUTHORITY TO
AUDIT ANY LAND BANK PURSUANT TO THIS ARTICLE.
S 1604. APPLICABILITY OF NEW YORK LAW.
  THIS ARTICLE SHALL APPLY ONLY TO LAND BANKS CREATED PURSUANT  TO  THIS
ARTICLE.
S 1605. BOARD OF DIRECTORS.
  (A)  (1)  THE INITIAL SIZE OF THE BOARD SHALL BE DETERMINED IN ACCORD-
ANCE  WITH  SECTION  SIXTEEN  HUNDRED  THREE  OF  THIS  ARTICLE.  UNLESS
RESTRICTED  BY  THE  ACTIONS  OR AGREEMENTS SPECIFIED IN SECTION SIXTEEN
HUNDRED THREE OF THIS ARTICLE, THE  PROVISIONS  OF  THIS  SECTION  SHALL
APPLY.
  (2)  THE  SIZE OF THE BOARD MAY BE ADJUSTED IN ACCORDANCE WITH BY-LAWS
OF THE LAND BANK.
  (B) IN THE EVENT THAT A LAND BANK IS CREATED PURSUANT TO AN  INTERGOV-
ERNMENTAL  AGREEMENT IN ACCORDANCE WITH SECTION SIXTEEN HUNDRED THREE OF
THIS ARTICLE, SUCH INTERGOVERNMENTAL COOPERATION AGREEMENT SHALL SPECIFY
MATTERS IDENTIFIED IN PARAGRAPH (A) OF SECTION SIXTEEN HUNDRED THREE  OF
THIS ARTICLE; PROVIDED, HOWEVER, THAT EACH FORECLOSING GOVERNMENTAL UNIT
SHALL HAVE AT LEAST ONE APPOINTMENT TO THE BOARD.
  (C)  ANY  PUBLIC  OFFICER SHALL BE ELIGIBLE TO SERVE AS A BOARD MEMBER
AND THE ACCEPTANCE OF THE APPOINTMENT SHALL NEITHER TERMINATE NOR IMPAIR
SUCH PUBLIC OFFICE. FOR PURPOSES OF THIS SECTION, "PUBLIC OFFICER" SHALL
MEAN A PERSON WHO IS  ELECTED  TO  A  MUNICIPAL  OFFICE.  ANY  MUNICIPAL
EMPLOYEE  OR  APPOINTED  OFFICER  SHALL  BE ELIGIBLE TO SERVE AS A BOARD
MEMBER.
  (D) THE MEMBERS OF THE BOARD OF DIRECTORS SHALL SELECT  ANNUALLY  FROM
AMONG  THEMSELVES  A  CHAIRMAN,  A  VICE-CHAIRMAN, A TREASURER, AND SUCH
OTHER OFFICERS AS THE BOARD MAY DETERMINE,  AND  SHALL  ESTABLISH  THEIR
DUTIES AS MAY BE REGULATED BY RULES ADOPTED BY THE BOARD.
  (E)  THE  BOARD SHALL ESTABLISH RULES AND REQUIREMENTS RELATIVE TO THE
ATTENDANCE AND PARTICIPATION OF MEMBERS  IN  ITS  MEETINGS,  REGULAR  OR
SPECIAL.  SUCH  RULES AND REGULATIONS MAY PRESCRIBE A PROCEDURE WHEREBY,
SHOULD ANY MEMBER FAIL TO COMPLY WITH SUCH RULES AND  REGULATIONS,  SUCH
MEMBER  MAY  BE DISQUALIFIED AND REMOVED AUTOMATICALLY FROM OFFICE BY NO
LESS THAN A MAJORITY VOTE OF THE REMAINING MEMBERS  OF  THE  BOARD,  AND
THAT  MEMBER'S  POSITION SHALL BE VACANT AS OF THE FIRST DAY OF THE NEXT
CALENDAR MONTH. ANY PERSON REMOVED UNDER THE PROVISIONS  OF  THIS  PARA-
GRAPH  SHALL  BE  INELIGIBLE FOR REAPPOINTMENT TO THE BOARD, UNLESS SUCH
REAPPOINTMENT IS CONFIRMED UNANIMOUSLY BY THE BOARD.
  (F) A VACANCY ON THE BOARD SHALL BE FILLED IN THE SAME MANNER  AS  THE
ORIGINAL APPOINTMENT.
  (G)  BOARD  MEMBERS  SHALL  SERVE WITHOUT COMPENSATION, SHALL HAVE THE
POWER TO ORGANIZE AND REORGANIZE THE  EXECUTIVE,  ADMINISTRATIVE,  CLER-
ICAL,  AND  OTHER  DEPARTMENTS  OF  THE LAND BANK AND TO FIX THE DUTIES,
POWERS, AND COMPENSATION OF ALL EMPLOYEES, AGENTS,  AND  CONSULTANTS  OF
THE  LAND BANK. THE BOARD MAY REIMBURSE ANY MEMBER FOR EXPENSES ACTUALLY
INCURRED IN THE PERFORMANCE OF DUTIES ON BEHALF OF THE LAND BANK.
  (H) THE BOARD SHALL MEET IN REGULAR SESSION ACCORDING  TO  A  SCHEDULE
ADOPTED BY THE BOARD, AND ALSO SHALL MEET IN SPECIAL SESSION AS CONVENED
BY  THE  CHAIRMAN  OR  UPON  WRITTEN  NOTICE SIGNED BY A MAJORITY OF THE
MEMBERS.
  (I) A MAJORITY OF THE MEMBERS OF THE BOARD, NOT  INCLUDING  VACANCIES,
SHALL  CONSTITUTE  A  QUORUM FOR THE CONDUCT OF BUSINESS. ALL ACTIONS OF

A. 373--A                           5

THE BOARD SHALL BE APPROVED BY THE AFFIRMATIVE VOTE OF A MAJORITY OF THE
MEMBERS OF THAT BOARD PRESENT AND VOTING; PROVIDED, HOWEVER,  NO  ACTION
OF  THE  BOARD  SHALL  BE  AUTHORIZED  ON  THE  FOLLOWING MATTERS UNLESS
APPROVED BY A MAJORITY OF THE TOTAL BOARD MEMBERSHIP:
  (1) ADOPTION OF BY-LAWS AND OTHER RULES AND REGULATIONS FOR CONDUCT OF
THE LAND BANK'S BUSINESS;
  (2)  HIRING  OR FIRING OF ANY EMPLOYEE OR CONTRACTOR OF THE LAND BANK.
THIS FUNCTION MAY, BY MAJORITY VOTE OF THE TOTAL  BOARD  MEMBERSHIP,  BE
DELEGATED  TO  A  SPECIFIED OFFICER OR COMMITTEE OF THE LAND BANK, UNDER
SUCH TERMS AND CONDITIONS, AND TO THE EXTENT, THAT THE BOARD MAY  SPECI-
FY;
  (3) THE INCURRING OF DEBT;
  (4) ADOPTION OR AMENDMENT OF THE ANNUAL BUDGET; AND
  (5) SALE, LEASE, ENCUMBRANCE, OR ALIENATION OF REAL PROPERTY, IMPROVE-
MENTS, OR PERSONAL PROPERTY.
  (J)  MEMBERS OF A BOARD SHALL NOT BE LIABLE PERSONALLY ON THE BONDS OR
OTHER OBLIGATIONS OF THE LAND BANK, AND THE RIGHTS OF CREDITORS SHALL BE
SOLELY AGAINST SUCH LAND BANK.
  (K) VOTE BY PROXY SHALL NOT BE PERMITTED. ANY  MEMBER  MAY  REQUEST  A
RECORDED VOTE ON ANY RESOLUTION OR ACTION OF THE LAND BANK.
  (L)  EACH  DIRECTOR,  OFFICER AND EMPLOYEE SHALL BE A STATE OFFICER OR
EMPLOYEE FOR THE PURPOSES OF SECTIONS SEVENTY-THREE AND SEVENTY-FOUR  OF
THE PUBLIC OFFICERS LAW.
S 1606. STAFF.
  A  LAND  BANK  MAY  EMPLOY A SECRETARY, AN EXECUTIVE DIRECTOR, ITS OWN
COUNSEL AND LEGAL STAFF, AND SUCH  TECHNICAL  EXPERTS,  AND  SUCH  OTHER
AGENTS AND EMPLOYEES, PERMANENT OR TEMPORARY, AS IT MAY REQUIRE, AND MAY
DETERMINE  THE  QUALIFICATIONS  AND FIX THE COMPENSATION AND BENEFITS OF
SUCH PERSONS. A LAND BANK MAY ALSO ENTER INTO CONTRACTS  AND  AGREEMENTS
WITH  MUNICIPALITIES  FOR  STAFFING  SERVICES TO BE PROVIDED TO THE LAND
BANK BY MUNICIPALITIES OR AGENCIES OR DEPARTMENTS THEREOF, OR FOR A LAND
BANK TO PROVIDE SUCH STAFFING SERVICES TO MUNICIPALITIES OR AGENCIES  OR
DEPARTMENTS THEREOF.
S 1607. POWERS.
  (A)  A  LAND BANK SHALL CONSTITUTE A TYPE C NOT-FOR-PROFIT CORPORATION
UNDER NEW YORK LAW, WHICH POWERS SHALL INCLUDE ALL POWERS  NECESSARY  TO
CARRY  OUT  AND  EFFECTUATE THE PURPOSES AND PROVISIONS OF THIS ARTICLE,
INCLUDING THE FOLLOWING POWERS IN ADDITION  TO  THOSE  HEREIN  OTHERWISE
GRANTED:
  (1)  ADOPT, AMEND, AND REPEAL BYLAWS FOR THE REGULATION OF ITS AFFAIRS
AND THE CONDUCT OF ITS BUSINESS;
  (2) SUE AND BE SUED IN ITS OWN NAME AND PLEAD AND BE IMPLEADED IN  ALL
CIVIL  ACTIONS, INCLUDING, BUT NOT LIMITED TO, ACTIONS TO CLEAR TITLE TO
PROPERTY OF THE LAND BANK;
  (3) TO ADOPT A SEAL AND TO ALTER THE SAME AT PLEASURE;
  (4) TO MAKE CONTRACTS, GIVE GUARANTEES AND INCUR  LIABILITIES,  BORROW
MONEY AT SUCH RATES OF INTEREST AS THE LAND BANK MAY DETERMINE;
  (5)  TO  ISSUE  NEGOTIABLE  REVENUE  BONDS  AND NOTES ACCORDING TO THE
PROVISIONS OF THIS ARTICLE;
  (6) TO PROCURE INSURANCE OR GUARANTEES FROM THE STATE OF NEW  YORK  OR
FEDERAL  GOVERNMENT  OF  THE  PAYMENTS  OF  ANY  DEBTS  OR PARTS THEREOF
INCURRED BY THE LAND BANK, AND TO PAY PREMIUMS IN CONNECTION THEREWITH;
  (7) TO ENTER INTO CONTRACTS AND OTHER  INSTRUMENTS  NECESSARY  TO  THE
PERFORMANCE OF ITS DUTIES AND THE EXERCISE OF ITS POWERS, INCLUDING, BUT
NOT  LIMITED  TO, INTERGOVERNMENTAL AGREEMENTS UNDER SECTION ONE HUNDRED

A. 373--A                           6

NINETEEN-O OF THE GENERAL MUNICIPAL LAW FOR THE JOINT EXERCISE OF POWERS
UNDER THIS ARTICLE;
  (8)  TO  ENTER  INTO  CONTRACTS AND OTHER INSTRUMENTS NECESSARY TO THE
PERFORMANCE OF FUNCTIONS BY THE LAND BANK ON BEHALF OF MUNICIPALITIES OR
AGENCIES OR DEPARTMENTS OF MUNICIPALITIES, OR THE PERFORMANCE BY MUNICI-
PALITIES OR AGENCIES OR DEPARTMENTS OF MUNICIPALITIES  OF  FUNCTIONS  ON
BEHALF OF THE LAND BANK;
  (9)  TO  MAKE AND EXECUTE CONTRACTS AND OTHER INSTRUMENTS NECESSARY TO
THE EXERCISE OF THE POWERS OF THE LAND BANK; AND ANY CONTRACT OR INSTRU-
MENT WHEN SIGNED BY THE CHAIRMAN OR VICE-CHAIRMAN OF THE LAND  BANK,  OR
BY AN AUTHORIZED USE OF THEIR FACSIMILE SIGNATURES, AND BY THE SECRETARY
OR ASSISTANT SECRETARY, OR, TREASURER OR ASSISTANT TREASURER OF THE LAND
BANK,  OR  BY  AN AUTHORIZED USE OF THEIR FACSIMILE SIGNATURES, SHALL BE
HELD TO HAVE BEEN PROPERLY EXECUTED FOR AND ON ITS BEHALF;
  (10) TO PROCURE INSURANCE AGAINST LOSSES IN CONNECTION WITH  THE  REAL
PROPERTY, ASSETS, OR ACTIVITIES OF THE LAND BANK;
  (11)  TO INVEST MONEY OF THE LAND BANK, AT THE DISCRETION OF THE BOARD
OF DIRECTORS,  IN  INSTRUMENTS,  OBLIGATIONS,  SECURITIES,  OR  PROPERTY
DETERMINED  PROPER BY THE BOARD OF DIRECTORS, AND NAME AND USE DEPOSITO-
RIES FOR ITS MONEY;
  (12) TO ENTER INTO CONTRACTS FOR THE MANAGEMENT OF, THE COLLECTION  OF
RENT FROM, OR THE SALE OF REAL PROPERTY OF THE LAND BANK;
  (13)  TO  DESIGN, DEVELOP, CONSTRUCT, DEMOLISH, RECONSTRUCT, REHABILI-
TATE, RENOVATE, RELOCATE, AND OTHERWISE IMPROVE REAL PROPERTY OR  RIGHTS
OR INTERESTS IN REAL PROPERTY;
  (14)  TO  FIX, CHARGE, AND COLLECT RENTS, FEES AND CHARGES FOR THE USE
OF REAL PROPERTY OF THE LAND BANK AND FOR SERVICES PROVIDED BY THE  LAND
BANK;
  (15)  TO GRANT OR ACQUIRE A LICENSE, EASEMENT, LEASE (AS LESSOR AND AS
LESSEE), OR OPTION WITH RESPECT TO REAL PROPERTY OF THE LAND BANK;
  (16) TO ENTER INTO PARTNERSHIP, JOINT VENTURES, AND  OTHER  COLLABORA-
TIVE  RELATIONSHIPS  WITH  MUNICIPALITIES  AND  OTHER PUBLIC AND PRIVATE
ENTITIES FOR THE OWNERSHIP, MANAGEMENT, DEVELOPMENT, AND DISPOSITION  OF
REAL PROPERTY;
  (17) TO INVENTORY VACANT, ABANDONED AND TAX FORECLOSED PROPERTIES;
  (18) TO DEVELOP A REDEVELOPMENT PLAN TO BE APPROVED BY THE FORECLOSING
GOVERNMENTAL UNIT OR UNITS;
  (19) TO BE SUBJECT TO MUNICIPAL BUILDING CODES AND ZONING LAWS;
  (20)  TO  ENTER IN AGREEMENTS WITH A FORECLOSING GOVERNMENTAL UNIT FOR
THE DISTRIBUTION OF REVENUES TO THE FORECLOSING  GOVERNMENTAL  UNIT  AND
SCHOOL DISTRICT; AND
  (21)  TO  DO  ALL OTHER THINGS NECESSARY TO ACHIEVE THE OBJECTIVES AND
PURPOSES OF THE LAND BANK OR OTHER LAWS THAT RELATE TO THE PURPOSES  AND
RESPONSIBILITY OF THE LAND BANK.
  (B)  A  LAND  BANK  SHALL  NEITHER  POSSESS  NOR EXERCISE THE POWER OF
EMINENT DOMAIN.
S 1608. ACQUISITION OF PROPERTY.
  (A) THE REAL PROPERTY OF A LAND BANK AND ITS INCOME AND OPERATIONS ARE
EXEMPT FROM ALL TAXATION BY THE STATE OF NEW YORK  AND  BY  ANY  OF  ITS
POLITICAL SUBDIVISIONS.
  (B) THE LAND BANK MAY ACQUIRE REAL PROPERTY OR INTERESTS IN REAL PROP-
ERTY  BY  GIFT,  DEVISE,  TRANSFER,  EXCHANGE, FORECLOSURE, PURCHASE, OR
OTHERWISE ON TERMS AND CONDITIONS AND IN A MANNER THE LAND BANK  CONSID-
ERS PROPER.
  (C)  THE  LAND  BANK  MAY ACQUIRE REAL PROPERTY BY PURCHASE CONTRACTS,
LEASE PURCHASE AGREEMENTS, INSTALLMENT SALES CONTRACTS, LAND  CONTRACTS,

A. 373--A                           7

AND  MAY ACCEPT TRANSFERS FROM MUNICIPALITIES UPON SUCH TERMS AND CONDI-
TIONS AS AGREED TO BY THE LAND BANK AND THE MUNICIPALITY.  NOTWITHSTAND-
ING  ANY OTHER LAW TO THE CONTRARY, ANY MUNICIPALITY MAY TRANSFER TO THE
LAND  BANK  REAL  PROPERTY AND INTERESTS IN REAL PROPERTY OF THE MUNICI-
PALITY ON SUCH TERMS AND CONDITIONS AND ACCORDING TO SUCH PROCEDURES  AS
DETERMINED BY THE MUNICIPALITY.
  (D)  THE  LAND BANK SHALL MAINTAIN ALL OF ITS REAL PROPERTY IN ACCORD-
ANCE WITH THE LAWS AND ORDINANCES OF THE JURISDICTION IN WHICH THE  REAL
PROPERTY IS LOCATED.
  (E)  THE LAND BANK SHALL NOT OWN OR HOLD REAL PROPERTY LOCATED OUTSIDE
THE JURISDICTIONAL BOUNDARIES OF THE FORECLOSING  GOVERNMENTAL  UNIT  OR
UNITS  WHICH  CREATED THE LAND BANK; PROVIDED, HOWEVER, THAT A LAND BANK
MAY BE GRANTED AUTHORITY PURSUANT TO  AN  INTERGOVERNMENTAL  COOPERATION
AGREEMENT WITH ANOTHER MUNICIPALITY TO MANAGE AND MAINTAIN REAL PROPERTY
LOCATED WITHIN THE JURISDICTION OF SUCH OTHER MUNICIPALITY.
  (F)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, ANY
MUNICIPALITY MAY CONVEY TO A LAND BANK REAL PROPERTY  AND  INTERESTS  IN
REAL  PROPERTY  ON  SUCH  TERMS  AND  CONDITIONS,  FORM AND SUBSTANCE OF
CONSIDERATION, AND PROCEDURES, ALL AS  DETERMINED  BY  THE  TRANSFERRING
MUNICIPALITY IN ITS DISCRETION.
 (G)  THE  ACQUISITION  OF  REAL PROPERTY BY A LAND BANK PURSUANT TO THE
PROVISIONS OF THIS ARTICLE, FROM ENTITIES OTHER THAN POLITICAL  SUBDIVI-
SIONS,  SHALL  BE  LIMITED  TO REAL PROPERTY THAT IS TAX DELINQUENT, TAX
FORECLOSED, VACANT OR ABANDONED; PROVIDED, HOWEVER,  THAT  A  LAND  BANK
SHALL  HAVE  AUTHORITY  TO  ENTER INTO AGREEMENTS TO PURCHASE OTHER REAL
PROPERTY CONSISTENT WITH AN APPROVED REDEVELOPMENT PLAN.
  (H) THE LAND BANK SHALL MAINTAIN AND MAKE AVAILABLE FOR PUBLIC  REVIEW
AND INSPECTION A COMPLETE INVENTORY OF ALL PROPERTY RECEIVED BY THE LAND
BANK.  SUCH  INVENTORY  SHALL  INCLUDE:  THE LOCATION OF THE PARCEL; THE
PURCHASE PRICE, IF ANY, FOR EACH  PARCEL  RECEIVED;  THE  CURRENT  VALUE
ASSIGNED  TO  THE  PROPERTY  FOR PURPOSES OF REAL PROPERTY TAXATION; THE
AMOUNT, IF ANY, OWED TO THE LOCALITY FOR  REAL  PROPERTY  TAXATION;  THE
IDENTITY  OF THE TRANSFEROR; AND ANY CONDITIONS OR RESTRICTIONS APPLICA-
BLE TO THE PROPERTY.
  (I) ALL PARCELS RECEIVED BY THE LAND  BANK  SHALL  BE  LISTED  ON  THE
RECEIVED INVENTORY ESTABLISHED PURSUANT TO PARAGRAPH (H) OF THIS SECTION
WITHIN  ONE  WEEK  OF ACQUISITION AND SHALL REMAIN IN SUCH INVENTORY FOR
ONE WEEK PRIOR TO DISPOSITION.
  (J) FAILURE TO COMPLY WITH THE REQUIREMENTS IN PARAGRAPHS (H) AND  (I)
OF  THIS  SECTION  WITH REGARD TO ANY PARTICULAR PARCEL SHALL CAUSE SUCH
ACQUISITION BY THE LAND BANK TO BE NULL AND VOID.
S 1609. DISPOSITION OF PROPERTY.
  (A) THE LAND BANK SHALL  HOLD  IN  ITS  OWN  NAME  ALL  REAL  PROPERTY
ACQUIRED BY THE LAND BANK IRRESPECTIVE OF THE IDENTITY OF THE TRANSFEROR
OF SUCH PROPERTY.
  (B)  THE LAND BANK SHALL MAINTAIN AND MAKE AVAILABLE FOR PUBLIC REVIEW
AND INSPECTION A COMPLETE INVENTORY OF ALL REAL PROPERTY DISPOSITIONS BY
THE LAND BANK. SUCH INVENTORY SHALL INCLUDE A COMPLETE COPY OF THE SALES
CONTRACT INCLUDING ALL TERMS AND CONDITIONS INCLUDING, BUT  NOT  LIMITED
TO,  ANY  FORM  OF  COMPENSATION  RECEIVED BY THE LAND BANK OR ANY OTHER
PARTY WHICH IS NOT INCLUDED WITHIN THE SALE PRICE.
  (C) THE LAND BANK SHALL DETERMINE AND SET FORTH IN POLICIES AND PROCE-
DURES OF THE BOARD OF DIRECTORS THE GENERAL  TERMS  AND  CONDITIONS  FOR
CONSIDERATION  TO  BE RECEIVED BY THE LAND BANK FOR THE TRANSFER OF REAL
PROPERTY AND INTERESTS IN REAL PROPERTY, WHICH  CONSIDERATION  MAY  TAKE
THE  FORM OF MONETARY PAYMENTS AND SECURED FINANCIAL OBLIGATIONS, COVEN-

A. 373--A                           8

ANTS AND CONDITIONS RELATED TO THE PRESENT AND FUTURE USE OF THE PROPER-
TY, CONTRACTUAL COMMITMENTS OF THE TRANSFEREE, AND SUCH OTHER  FORMS  OF
CONSIDERATION AS ARE CONSISTENT WITH STATE AND LOCAL LAW.
  (D)  THE  LAND  BANK  MAY  CONVEY,  EXCHANGE, SELL, TRANSFER, LEASE AS
LESSOR, GRANT, RELEASE AND DEMISE, PLEDGE ANY AND ALL INTERESTS IN, UPON
OR TO REAL PROPERTY OF THE LAND BANK.
  (E) A FORECLOSING GOVERNMENTAL UNIT MAY, IN ITS LOCAL LAW,  RESOLUTION
OR ORDINANCE CREATING A LAND BANK, OR, IN THE CASE OF MULTIPLE FORECLOS-
ING  GOVERNMENTAL  UNITS  CREATING  A SINGLE LAND BANK IN THE APPLICABLE
INTERGOVERNMENTAL COOPERATION AGREEMENT, ESTABLISH A HIERARCHICAL  RANK-
ING  OF  PRIORITIES FOR THE USE OF REAL PROPERTY CONVEYED BY A LAND BANK
INCLUDING BUT NOT LIMITED TO:
  (1) USE FOR PURELY PUBLIC SPACES AND PLACES;
  (2) USE FOR AFFORDABLE HOUSING;
  (3) USE FOR RETAIL, COMMERCIAL AND INDUSTRIAL ACTIVITIES;
  (4) USE AS WILDLIFE CONSERVATION AREAS; AND
  (5) SUCH OTHER USES AND IN SUCH HIERARCHICAL ORDER  AS  DETERMINED  BY
THE FORECLOSING GOVERNMENTAL UNIT OR UNITS.
  (F)  A FORECLOSING GOVERNMENTAL UNIT MAY, IN ITS LOCAL LAW, RESOLUTION
OR ORDINANCE CREATING A LAND BANK, OR, IN THE CASE OF MULTIPLE FORECLOS-
ING GOVERNMENTAL UNITS CREATING A SINGLE LAND  BANK  IN  THE  APPLICABLE
INTERGOVERNMENTAL  COOPERATION  AGREEMENT,  REQUIRE  THAT ANY PARTICULAR
FORM OF DISPOSITION OF REAL PROPERTY, OR ANY DISPOSITION OF REAL PROPER-
TY LOCATED WITHIN  SPECIFIED  JURISDICTIONS,  BE  SUBJECT  TO  SPECIFIED
VOTING  AND  APPROVAL REQUIREMENTS OF THE BOARD OF DIRECTORS. EXCEPT AND
UNLESS RESTRICTED OR CONSTRAINED IN THIS MANNER, THE BOARD OF  DIRECTORS
MAY  DELEGATE  TO OFFICERS AND EMPLOYEES THE AUTHORITY TO ENTER INTO AND
EXECUTE AGREEMENTS, INSTRUMENTS OF  CONVEYANCE  AND  ALL  OTHER  RELATED
DOCUMENTS  PERTAINING  TO  THE  CONVEYANCE  OF REAL PROPERTY BY THE LAND
BANK.
  (G) ALL PROPERTY DISPOSITIONS SHALL BE LISTED ON THE PROPERTY DISPOSI-
TION INVENTORY ESTABLISHED PURSUANT TO PARAGRAPH  (B)  OF  THIS  SECTION
WITHIN  ONE WEEK OF DISPOSITION. SUCH RECORDS SHALL REMAIN AVAILABLE FOR
PUBLIC INSPECTION IN THE PROPERTY DISPOSITION INVENTORY INDEFINITELY.
  (H) FAILURE TO COMPLY WITH THE REQUIREMENTS IN PARAGRAPH (G)  OF  THIS
SECTION  SHALL  SUBJECT  THE LAND BANK TO A CIVIL PENALTY OF ONE HUNDRED
DOLLARS PER VIOLATION UP TO A MAXIMUM OF TEN THOUSAND DOLLARS  FOR  EACH
PARCEL,  RECOVERABLE  IN  AN  ACTION  BROUGHT BY THE ATTORNEY GENERAL OR
DISTRICT ATTORNEY. THE ATTORNEY GENERAL OR DISTRICT  ATTORNEY  MAY  ALSO
SEEK RESCISSION OF THE REAL PROPERTY TRANSACTION.
S 1610. FINANCING OF LAND BANK OPERATIONS.
  (A)  A LAND BANK MAY RECEIVE FUNDING THROUGH GRANTS AND LOANS FROM THE
FORECLOSING GOVERNMENTAL UNIT OR UNITS WHICH CREATED THE LAND BANK, FROM
OTHER MUNICIPALITIES, FROM THE STATE  OF  NEW  YORK,  FROM  THE  FEDERAL
GOVERNMENT, AND FROM OTHER PUBLIC AND PRIVATE SOURCES.
  (B) A LAND BANK MAY RECEIVE AND RETAIN PAYMENTS FOR SERVICES RENDERED,
FOR  RENTS AND LEASEHOLD PAYMENTS RECEIVED, FOR CONSIDERATION FOR DISPO-
SITION OF REAL AND PERSONAL PROPERTY, FOR PROCEEDS OF INSURANCE COVERAGE
FOR LOSSES INCURRED, FOR INCOME FROM  INVESTMENTS,  AND  FOR  ANY  OTHER
ASSET AND ACTIVITY LAWFULLY PERMITTED TO A LAND BANK UNDER THIS ARTICLE.
  (C)  UPON  THE  ADOPTION  OF  A LOCAL LAW, ORDINANCE, OR RESOLUTION BY
MUNICIPALITY, SCHOOL DISTRICT OR ANY TAXING DISTRICT, FIFTY  PERCENT  OF
THE REAL PROPERTY TAXES COLLECTED ON ANY SPECIFIC PARCEL OF REAL PROPER-
TY IDENTIFIED BY SUCH MUNICIPALITY, SCHOOL DISTRICT OR ANY TAXING JURIS-
DICTION  MAY BE REMITTED TO THE LAND BANK, IN ACCORDANCE WITH PROCEDURES
ESTABLISHED BY REGULATIONS PROMULGATED BY THE DEPARTMENT OF TAXATION AND

A. 373--A                           9

FINANCE. SUCH ALLOCATION OF REAL PROPERTY TAX  REVENUES  SHALL  COMMENCE
WITH  THE  FIRST TAXABLE YEAR FOLLOWING THE DATE OF CONVEYANCE AND SHALL
CONTINUE FOR A PERIOD OF FIVE YEARS.
S 1611. BORROWING AND ISSUANCE OF BONDS.
  (A)  A LAND BANK SHALL HAVE POWER TO ISSUE BONDS FOR ANY OF ITS CORPO-
RATE PURPOSES, THE PRINCIPAL AND INTEREST OF WHICH ARE PAYABLE FROM  ITS
REVENUES  GENERALLY. ANY OF SUCH BONDS MAY BE SECURED BY A PLEDGE OF ANY
REVENUES, INCLUDING GRANTS OR CONTRIBUTIONS FROM THE STATE OF NEW  YORK,
THE  FEDERAL  GOVERNMENT, OR ANY AGENCY, AND INSTRUMENTALITY THEREOF, OR
BY A MORTGAGE OF ANY PROPERTY OF THE LAND BANK.
  (B) THE BONDS ISSUED BY A LAND BANK ARE HEREBY DECLARED  TO  HAVE  ALL
THE QUALITIES OF NEGOTIABLE INSTRUMENTS UNDER NEW YORK STATE LAW.
  (C)  THE  BONDS  OF  A  LAND BANK CREATED UNDER THE PROVISIONS OF THIS
ARTICLE AND THE INCOME THEREFROM SHALL AT ALL TIMES BE FREE  FROM  TAXA-
TION  FOR THE STATE OF NEW YORK OR LOCAL PURPOSES UNDER ANY PROVISION OF
NEW YORK LAW.
  (D) BONDS ISSUED BY THE LAND BANK SHALL BE AUTHORIZED BY RESOLUTION OF
THE BOARD AND SHALL BE LIMITED OBLIGATIONS OF THE LAND BANK; THE PRINCI-
PAL AND INTEREST, COSTS OF ISSUANCE, AND OTHER COSTS INCIDENTAL  THERETO
SHALL  BE  PAYABLE  SOLELY  FROM THE INCOME AND REVENUE DERIVED FROM THE
SALE, LEASE, OR OTHER DISPOSITION OF THE ASSETS OF THE LAND BANK. IN THE
DISCRETION OF THE LAND BANK, THE BONDS MAY BE  ADDITIONALLY  SECURED  BY
MORTGAGE  OR  OTHER  SECURITY DEVICE COVERING ALL OR PART OF THE PROJECT
FROM WHICH THE REVENUES SO PLEDGED MAY BE DERIVED. ANY  REFUNDING  BONDS
ISSUED  SHALL  BE  PAYABLE  FROM  ANY SOURCE DESCRIBED ABOVE OR FROM THE
INVESTMENT OF ANY OF THE PROCEEDS OF THE REFUNDING BONDS AND  SHALL  NOT
CONSTITUTE  AN INDEBTEDNESS OR PLEDGE OF THE GENERAL CREDIT OF ANY FORE-
CLOSING GOVERNMENTAL UNIT OR MUNICIPALITY  WITHIN  THE  MEANING  OF  ANY
CONSTITUTIONAL OR STATUTORY LIMITATION OF INDEBTEDNESS AND SHALL CONTAIN
A RECITAL TO THAT EFFECT. BONDS OF THE LAND BANK SHALL BE ISSUED IN SUCH
FORM,  SHALL BE IN SUCH DENOMINATIONS, SHALL BEAR INTEREST, SHALL MATURE
IN SUCH MANNER, AND BE EXECUTED BY ONE OR MORE MEMBERS OF THE  BOARD  AS
PROVIDED  IN THE RESOLUTION AUTHORIZING THE ISSUANCE THEREOF. SUCH BONDS
MAY BE SUBJECT TO REDEMPTION AT THE OPTION OF AND IN THE  MANNER  DETER-
MINED BY THE BOARD IN THE RESOLUTION AUTHORIZING THE ISSUANCE THEREOF.
  (E) BONDS ISSUED BY THE LAND BANK SHALL BE ISSUED, SOLD, AND DELIVERED
IN  ACCORDANCE  WITH THE TERMS AND PROVISIONS OF A RESOLUTION ADOPTED BY
THE BOARD.  THE BOARD MAY SELL SUCH BONDS  IN  SUCH  MANNER,  EITHER  AT
PUBLIC  OR AT PRIVATE SALE, AND FOR SUCH PRICE AS IT MAY DETERMINE TO BE
IN THE BEST INTERESTS OF THE LAND BANK.  THE  RESOLUTION  ISSUING  BONDS
SHALL  BE  PUBLISHED  IN  A  NEWSPAPER OF GENERAL CIRCULATION WITHIN THE
JURISDICTION OF THE LAND BANK.
  (F) NEITHER THE MEMBERS OF A LAND BANK NOR ANY  PERSON  EXECUTING  THE
BONDS  SHALL  BE  LIABLE  PERSONALLY  ON ANY SUCH BONDS BY REASON OF THE
ISSUANCE THEREOF.  SUCH BONDS OR OTHER OBLIGATIONS OF A LAND BANK  SHALL
NOT BE A DEBT OF ANY MUNICIPALITY OR OF THE STATE OF NEW YORK, AND SHALL
SO  STATE  ON THEIR FACE, NOR SHALL ANY MUNICIPALITY OR THE STATE OF NEW
YORK NOR ANY REVENUES OR ANY PROPERTY OF  ANY  MUNICIPALITY  OR  OF  THE
STATE OF NEW YORK BE LIABLE THEREFOR.
S 1612. PUBLIC RECORDS AND PUBLIC MEETINGS.
  (A)  THE  BOARD SHALL CAUSE MINUTES AND A RECORD TO BE KEPT OF ALL ITS
PROCEEDINGS. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE LAND BANK
SHALL BE SUBJECT TO THE OPEN MEETINGS LAW AND THE FREEDOM OF INFORMATION
LAW.
  (B) A LAND BANK SHALL HOLD A PUBLIC  HEARING  PRIOR  TO  FINANCING  OR
ISSUANCE  OF BONDS. THE LAND BANK SHALL SCHEDULE AND HOLD A PUBLIC HEAR-

A. 373--A                          10

ING AND SOLICIT PUBLIC COMMENT. AFTER THE CONCLUSION OF THE PUBLIC HEAR-
ING AND COMMENTS, THE LAND BANK SHALL CONSIDER THE RESULTS OF THE PUBLIC
HEARING AND COMMENTS WITH RESPECT TO THE PROPOSED ACTIONS. SUCH  CONSID-
ERATION  BY  THE LAND BANK SHALL INCLUDE THE ACCOMMODATION OF THE PUBLIC
INTEREST WITH RESPECT TO SUCH ACTIONS; IF SUCH ACCOMMODATION  IS  DEEMED
IN  THE  BEST  INTEREST  OF THE COMMUNITY PROPOSED ACTIONS SHALL INCLUDE
SUCH ACCOMMODATION.
  (C) IN ADDITION TO ANY OTHER REPORT REQUIRED BY THIS CHAPTER, THE LAND
BANK, THROUGH ITS CHAIRPERSON, SHALL ANNUALLY DELIVER, IN ORAL AND WRIT-
TEN FORM, A REPORT TO THE MUNICIPALITY. SUCH REPORT SHALL  BE  PRESENTED
BY  MARCH  FIFTEENTH  OF EACH YEAR TO THE GOVERNING BODY OR BOARD OF THE
MUNICIPALITY. THE REPORT SHALL DESCRIBE IN DETAIL THE PROJECTS UNDERTAK-
EN BY THE LAND BANK DURING THE PAST YEAR, THE  MONIES  EXPENDED  BY  THE
LAND BANK DURING THE PAST YEAR, AND THE ADMINISTRATIVE ACTIVITIES OF THE
LAND  BANK  DURING  THE  PAST YEAR. AT THE CONCLUSION OF THE REPORT, THE
CHAIRPERSON OF THE LAND BANK SHALL BE PREPARED TO ANSWER  THE  QUESTIONS
OF  THE  MUNICIPALITY  WITH  RESPECT  TO  THE PROJECTS UNDERTAKEN BY THE
AUTHORITY DURING THE PAST YEAR, THE MONIES EXPENDED BY THE  MUNICIPALITY
DURING  THE  PAST YEAR, AND THE ADMINISTRATIVE ACTIVITIES OF THE MUNICI-
PALITY DURING THE PAST YEAR.
S 1613. DISSOLUTION OF LAND BANK.
  A LAND BANK MAY BE DISSOLVED AS A TYPE  C  NOT-FOR-PROFIT  CORPORATION
SIXTY   CALENDAR  DAYS  AFTER  AN  AFFIRMATIVE  RESOLUTION  APPROVED  BY
TWO-THIRDS OF THE MEMBERSHIP OF THE BOARD OF DIRECTORS.  SIXTY  CALENDAR
DAYS  ADVANCE WRITTEN NOTICE OF CONSIDERATION OF A RESOLUTION OF DISSOL-
UTION SHALL BE GIVEN TO THE FORECLOSING GOVERNMENTAL UNIT OR UNITS  THAT
CREATED THE LAND BANK, SHALL BE PUBLISHED IN A LOCAL NEWSPAPER OF GENER-
AL  CIRCULATION,  AND SHALL BE SENT CERTIFIED MAIL TO THE TRUSTEE OF ANY
OUTSTANDING BONDS OF THE LAND BANK. UPON DISSOLUTION OF  THE  LAND  BANK
ALL  REAL  PROPERTY, PERSONAL PROPERTY AND OTHER ASSETS OF THE LAND BANK
SHALL BECOME THE ASSETS OF THE FORECLOSING GOVERNMENTAL  UNIT  OR  UNITS
THAT  CREATED  THE  LAND BANK. IN THE EVENT THAT TWO OR MORE FORECLOSING
GOVERNMENTAL UNITS CREATE A LAND BANK IN ACCORDANCE WITH SECTION SIXTEEN
HUNDRED THREE OF THIS ARTICLE, THE WITHDRAWAL OF ONE OR MORE FORECLOSING
GOVERNMENTAL UNITS SHALL NOT RESULT IN THE DISSOLUTION OF THE LAND  BANK
UNLESS  THE  INTERGOVERNMENTAL  AGREEMENT  SO  PROVIDES, AND THERE IS NO
FORECLOSING GOVERNMENTAL UNIT THAT DESIRES TO CONTINUE THE EXISTENCE  OF
THE LAND BANK.
S 1614. CONFLICTS OF INTEREST.
  NO  MEMBER  OF  THE BOARD OR EMPLOYEE OF A LAND BANK SHALL ACQUIRE ANY
INTEREST, DIRECT OR INDIRECT, IN REAL PROPERTY OF THE LAND BANK, IN  ANY
REAL  PROPERTY  TO BE ACQUIRED BY THE LAND BANK, OR IN ANY REAL PROPERTY
TO BE ACQUIRED FROM THE LAND BANK. NO MEMBER OF THE BOARD OR EMPLOYEE OF
A LAND BANK SHALL HAVE ANY INTEREST, DIRECT OR INDIRECT, IN ANY CONTRACT
OR PROPOSED CONTRACT FOR MATERIALS OR SERVICES TO BE FURNISHED  OR  USED
BY  A  LAND BANK. THE BOARD MAY ADOPT SUPPLEMENTAL RULES AND REGULATIONS
ADDRESSING POTENTIAL CONFLICTS OF INTEREST AND  ETHICAL  GUIDELINES  FOR
MEMBERS OF THE BOARD AND LAND BANK EMPLOYEES.
S 1615. CONSTRUCTION, INTENT AND SCOPE.
  THE  PROVISIONS OF THIS ARTICLE SHALL BE CONSTRUED LIBERALLY TO EFFEC-
TUATE THE LEGISLATIVE INTENT AND THE PURPOSES AS COMPLETE AND  INDEPEND-
ENT  AUTHORIZATION  FOR  THE PERFORMANCE OF EACH AND EVERY ACT AND THING
AUTHORIZED BY THIS ARTICLE, AND ALL  POWERS  GRANTED  SHALL  BE  BROADLY
INTERPRETED  TO  EFFECTUATE THE INTENT AND PURPOSES AND NOT AS A LIMITA-
TION OF POWERS. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS ARTICLE,
IN THE EXERCISE OF ITS POWERS AND DUTIES  UNDER  THIS  ARTICLE  AND  ITS

A. 373--A                          11

POWERS  RELATING  TO PROPERTY HELD BY THE LAND BANK, THE LAND BANK SHALL
HAVE COMPLETE CONTROL AS FULLY AND COMPLETELY AS  IF  IT  REPRESENTED  A
PRIVATE  PROPERTY OWNER AND SHALL NOT BE SUBJECT TO RESTRICTIONS IMPOSED
BY  THE  CHARTER,  ORDINANCES, OR RESOLUTIONS OF A LOCAL UNIT OF GOVERN-
MENT.
S 1616. DELINQUENT PROPERTY TAX ENFORCEMENT.
  THE MUNICIPALITY MAY ENTER INTO A CONTRACT TO SELL SOME OR ALL OF  THE
DELINQUENT TAX LIENS HELD BY IT TO A LAND BANK, SUBJECT TO THE FOLLOWING
CONDITIONS:
  (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 THIRTY DAYS ADVANCE NOTICE
OF SUCH SALE IN THE SAME FORM AND MANNER AS IS PROVIDED  BY  SUBDIVISION
TWO OF SECTION ELEVEN HUNDRED NINETY OF THE REAL PROPERTY TAX LAW. FAIL-
URE  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  MUNICIPALITY  SHALL  SET  THE  TERMS  AND  CONDITIONS OF THE
CONTRACT OF SALE.
  (D) THE LAND BANK MUST THIRTY DAYS PRIOR TO THE  COMMENCEMENT  OF  ANY
FORECLOSURE  ACTION  PROVIDE  TO  THE MUNICIPALITY A LIST OF LIENS TO BE
FORECLOSED. THE MUNICIPALITY MAY, AT ITS  SOLE  OPTION  AND  DISCRETION,
REPURCHASE  A  LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE LAND BANK.
THE REPURCHASE PRICE SHALL BE THE AMOUNT OF THE LIEN OR LIENS  PLUS  ANY
ACCRUED INTEREST AND COLLECTION FEES INCURRED BY THE LAND BANK. THE LAND
BANK  SHALL PROVIDE THE FORECLOSURE LIST TO THE MUNICIPALITY, ALONG WITH
THE APPLICABLE REPURCHASE PRICE OF EACH LIEN, BY CERTIFIED MAIL, AND THE
MUNICIPALITY SHALL HAVE THIRTY DAYS FROM RECEIPT TO NOTIFY THE LAND BANK
OF ITS OPTION TO PURCHASE ONE OR MORE OF THE LIENS.  IF THE MUNICIPALITY
OPTS TO PURCHASE THE LIEN, IT SHALL PROVIDE PAYMENT WITHIN  THIRTY  DAYS
OF  RECEIPT OF THE REPURCHASE PRICE OF SAID LIEN OR LIENS.  IF THE MUNI-
CIPALITY SHALL FAIL TO OPT TO REPURCHASE THE LIEN OR LIENS THE LAND BANK
SHALL HAVE THE RIGHT TO COMMENCE A FORECLOSURE ACTION IMMEDIATELY.
  (E) THE SALE OF A TAX LIEN PURSUANT TO THIS ARTICLE SHALL NOT  OPERATE
TO  SHORTEN  THE  OTHERWISE  APPLICABLE  REDEMPTION PERIOD OR CHANGE THE
OTHERWISE 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 ELEVEN HUNDRED NINETY-FOUR OF THE REAL PROPERTY TAX
LAW. THE PROCEDURE IN SUCH ACTION SHALL BE THE PROCEDURE  PRESCRIBED  BY
ARTICLE  THIRTEEN  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, ALLOW-
ANCES, AND DISBURSEMENTS.
  (G) THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN OF THE REAL PROPER-
TY TAX LAW SHALL APPLY SO FAR AS IS PRACTICABLE TO A  CONTRACT  FOR  THE
SALE OF TAX LIENS PURSUANT TO THIS ARTICLE.
  (H)  IF  THE  COURT  ORDERS  A  PUBLIC SALE PURSUANT TO SECTION ELEVEN
HUNDRED THIRTY-SIX OF THE REAL PROPERTY TAX LAW, AND  THE  PURCHASER  OF
THE  PROPERTY  IS THE LAND BANK, THEN THE FORM, SUBSTANCE, AND TIMING OF
THE LAND BANK'S PAYMENT OF THE SALES PRICE  MAY  BE  ACCORDING  TO  SUCH
AGREEMENT  AS IS MUTUALLY ACCEPTABLE TO THE PLAINTIFF AND THE LAND BANK.

A. 373--A                          12

THE OBLIGATION OF THE LAND BANK  TO  PERFORM  IN  ACCORDANCE  WITH  SUCH
AGREEMENT  SHALL  BE  DEEMED TO BE IN FULL SATISFACTION OF THE TAX CLAIM
WHICH WAS THE BASIS FOR THE JUDGMENT.
  (I) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN THE
EVENT  THAT  NO  MUNICIPALITY  ELECTS  TO  TENDER  A BID AT A JUDICIALLY
ORDERED SALE PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED  THIR-
TY-SIX  OF  THE REAL PROPERTY TAX LAW, THE LAND BANK MAY TENDER A BID AT
SUCH SALE IN AN AMOUNT EQUAL TO THE TOTAL AMOUNT OF ALL MUNICIPAL CLAIMS
AND LIENS WHICH WERE THE BASIS FOR THE JUDGMENT. IN THE  EVENT  OF  SUCH
TENDER  BY  THE  LAND BANK THE PROPERTY SHALL BE DEEMED SOLD TO THE LAND
BANK REGARDLESS OF ANY BIDS BY ANY OTHER THIRD PARTIES. THE BID  OF  THE
LAND  BANK SHALL BE PAID AS TO ITS FORM, SUBSTANCE, AND TIMING ACCORDING
TO SUCH AGREEMENT AS IS MUTUALLY ACCEPTABLE TO  THE  PLAINTIFF  AND  THE
LAND  BANK.    THE  OBLIGATION OF THE LAND BANK TO PERFORM IN ACCORDANCE
WITH SUCH AGREEMENT SHALL BE DEEMED TO BE IN FULL  SATISFACTION  OF  THE
MUNICIPAL  CLAIM WHICH WAS THE BASIS FOR THE JUDGMENT. THE LAND BANK, AS
PURCHASER AT SUCH SALE SHALL TAKE AND FOREVER THEREAFTER HAVE, AN  ABSO-
LUTE  TITLE  TO  THE  PROPERTY  SOLD, FREE AND DISCHARGED OF ALL TAX AND
MUNICIPAL CLAIMS, LIENS, MORTGAGES, CHARGES AND  ESTATES  OF  WHATSOEVER
KIND.  THE  DEED  TO  THE  LAND BANK SHALL BE EXECUTED, ACKNOWLEDGED AND
DELIVERED WITHIN THIRTY DAYS OF THE SALE.
  S 1617. CONTRACTS.
  (A) THE LAND BANK MAY, IN ITS DISCRETION, ASSIGN CONTRACTS FOR  SUPER-
VISION  AND COORDINATION TO THE SUCCESSFUL BIDDER FOR ANY SUBDIVISION OF
WORK FOR WHICH THE LAND BANK RECEIVES BIDS.  ANY  CONSTRUCTION,  DEMOLI-
TION,  RENOVATION  AND  RECONSTRUCTION CONTRACT AWARDED BY THE LAND BANK
SHALL CONTAIN SUCH OTHER TERMS AND CONDITIONS AS THE LAND BANK MAY  DEEM
DESIRABLE.   THE LAND BANK SHALL NOT AWARD ANY CONSTRUCTION, DEMOLITION,
RENOVATION AND RECONSTRUCTION CONTRACT GREATER THAN TEN THOUSAND DOLLARS
EXCEPT TO THE LOWEST BIDDER WHO, IN ITS OPINION, IS QUALIFIED TO PERFORM
THE WORK REQUIRED AND WHO IS RESPONSIBLE AND  RELIABLE.  THE  LAND  BANK
MAY,  HOWEVER,  REJECT ANY OR ALL BIDS OR WAIVE ANY INFORMALITY IN A BID
IF IT BELIEVES THAT THE PUBLIC INTEREST WILL BE  PROMOTED  THEREBY.  THE
LAND  BANK  MAY  REJECT  ANY  BID, IF, IN ITS JUDGMENT, THE BUSINESS AND
TECHNICAL ORGANIZATION, PLANT, RESOURCES, FINANCIAL STANDING, OR EXPERI-
ENCE OF THE BIDDER JUSTIFIES SUCH REJECTION IN VIEW OF THE  WORK  TO  BE
PERFORMED.
  (B)  FOR  THE PURPOSES OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW ONLY,
THE LAND BANK SHALL BE DEEMED A STATE AGENCY AS THAT  TERM  IS  USED  IN
SUCH  ARTICLE,  AND ALL CONTRACTS FOR PROCUREMENT, DESIGN, CONSTRUCTION,
SERVICES AND MATERIALS SHALL BE DEEMED STATE CONTRACTS WITHIN THE  MEAN-
ING OF THAT TERM AS SET FORTH IN SUCH ARTICLE.
  S  2.  Subdivision  2  of  section 2 of the public authorities law, as
added by chapter 766 of the laws of 2005, is amended to read as follows:
  2. "local authority" shall mean (a) a public authority or public bene-
fit corporation created by or existing under this chapter or  any  other
law of the state of New York whose members do not hold a civil office of
the  state,  are  not  appointed by the governor or are appointed by the
governor specifically upon the recommendation of the local government or
governments; (b) a not-for-profit corporation affiliated with, sponsored
by, or created by a county, city, town  or  village  government;  (c)  a
local industrial developmental agency or authority or other local public
benefit  corporation;  [or] (d) an affiliate of such local authority; OR
(E) A LAND BANK CORPORATION CREATED PURSUANT TO ARTICLE SIXTEEN  OF  THE
NOT-FOR-PROFIT CORPORATION LAW.
  S 3. This act shall take effect immediately.