senate Bill S2257B

2013-2014 Legislative Session

Authorizing cities and villages to collect delinquent real property taxes

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2014 committed to rules
Jun 11, 2014 amended on third reading (t) 2257b
Apr 28, 2014 amended on third reading 2257a
Mar 06, 2014 advanced to third reading
Mar 05, 2014 2nd report cal.
Mar 04, 2014 1st report cal.232
Jan 08, 2014 referred to cities
Jun 21, 2013 committed to rules
Apr 29, 2013 advanced to third reading
Apr 24, 2013 2nd report cal.
Apr 23, 2013 1st report cal.423
Jan 15, 2013 referred to cities

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S2257 - Bill Details

Current Committee:
Senate Rules
Law Section:
General City Law
Laws Affected:
Add §21-a, Gen City L; amd §6, Chap 602 of 1993
Versions Introduced in Previous Legislative Sessions:
2011-2012: S612A
2009-2010: S6225

S2257 - Bill Texts

view summary

Authorizes cities and villages to collect delinquent real property taxes.

view sponsor memo
BILL NUMBER:S2257

TITLE OF BILL: An act to amend the general city law and chapter 602
of the laws of 1993 amending the real property tax law relating to the
enforcement of the collection of delinquent real property taxes and to
the collection of taxes by banks, in relation to the collection of
delinquent real property taxes and providing for the repeal of such
provisions upon expiration thereof

PURPOSE: The purpose of this bill is to expand the number of options
available to municipalities to efficiently and effectively manage the
collection of delinquent real property taxes and to provide
protections to those property owners that are subject to real property
tax collections by such municipalities or third parties.

SUMMARY OF PROVISIONS:

Section 1: Adds a new General Cities Law section 21-a to expand the
sale of tax liens by municipalities in bulk to private parties.
permits municipalities, under certain conditions, to enter into a
contact to sell some or all of their delinquent tax liens to a private
party. The authority to enter into such contracts sunsets on December
31, 2018.

The bill provides for extensive consumer protections for affected
property owners that are subject to such municipal tax collection
efforts. Among the protections includes: a) a public hearing must be
held by the city and a local law adopted before such a procedure can
be initiated, b) prior to any sale, the city must hold a public
hearing announcing its intention to conduct a sale of its tax liens to
a third party. c) property owners must be given a 30 day notice before
such a tax lien sale, provided that if such notice is not provided,
that the sale is null and void. d) before commencing any foreclosure
proceeding by a third party, the city must be given notice of such
proceeding and may, at its own volition, re-purchase such tax liens to
stop the foreclosure proceeding. e) before commencing a third party
foreclosure proceeding, the real property owner must be given the
opportunity to establish a payment plan for a period not to exceed 48
months to repay the real property taxes due. The third party lien
holder may not charge any other fees for executing such a payment
plan. f) once a third party tax lien foreclosure proceeding has been
started, it must be done the same way procedurally as any other tax
foreclosure proceeding initiated by a municipality.

Within 60 days after the annual anniversary of such bulk tax lien
sales auction, the city must prepare a report to ascertain the cost
effectiveness of such sale of tax liens, whether real property owners
experienced any difficulties with the foreclosure process, the number
of foreclosures, if any, the number of properties taken back by the
city to avoid a foreclosure action from proceeding, and any complaints
from the public about the conduct of any third party purchaser of a
city real property tax lien. Such report shall be forwarded to the
state comptroller for his or her review.

Section 2: Adds a new provision to Chapter 602 of the Laws of 1993 to
allow villages to conduct the same type of private sale of real


property tax liens as can be conducted by this State's cities provided
for in section 1 of this bill.

Section 3: After receiving individual reports from cities and villages
on the conduct of their sale of real property tax liens to private
parties, the State Comptroller shall prepare its own consolidated
report. This annual report shall look at the cost effectiveness of
this program to enhance municipal real property tax collections, the
amount of new revenue generated by this program minus the cost of its
operation, the number and severity of complaints about the foreclosure
process by the municipality or the third party lien holder, and any
items or suggestions that the State comptroller may have to increase
consumer protections to assist real property owners who have
delinquent tax liens pending to retain their real property.

EXISTING LAW: Under current state law and the municipal home rule
laws governing certain cities, the cities of Amsterdam, Gloversville,
Schenectady and Utica can conduct such tax lien sales to private
parties, but without many of the consumer protections incorporated in
this law. Further, the cites of Rochester and Syracuse can conduct
such sales by their own home rule authority. Further, the City of
Buffalo is able to conduct a similar program via an In Rem tax sale.
This bill expands the number of cities and villages that can conduct
such sales, but with the added consumer protections provided in this
bill.

JUSTIFICATION: Our State's cities and villages are under financial
pressure to keep expenses low and to raise additional revenue to
overcome the economic downturn that they are facing. This bill allows
cities and villages to, with the assistance of third parties, to
conduct the sales of tax liens so that such municipalities can in a
more timely manner collect overdue real property taxes that are due to
them. This bill should help cities and villages to raise additional
tax revenue and place delinquent properties back on the tax rolls. It
is the sponsor's hope that placing such properties back on the tax
rolls will encourage better utilization of such properties and upgrade
any buildings located on such property to maximize their use.

LEGISLATIVE HISTORY: 2010: S.6225 Passed Senate - A.9460 Referred to
Real Property Taxation 2012: S. 612-A - Senate Calendar Number 687.

FISCAL IMPLICATIONS: None.

LOCAL FISCAL IMPLICATIONS: This bill will improve the fiscal
condition of any municipality that exercises this new option to obtain
cash from the sale of delinquent tax liens.

EFFECTIVE DATE: Effective immediately, expires January 31, 2018.

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

                                  2257

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sens.  KLEIN, ADDABBO -- read twice and ordered printed,
  and when printed to be committed to the Committee on Cities

AN ACT to amend the general city law and chapter 602 of the laws of 1993
  amending the real property tax law relating to the enforcement of  the
  collection  of delinquent real property taxes and to the collection of
  taxes by banks, in relation to the collection of delinquent real prop-
  erty taxes and providing for the repeal of such provisions upon  expi-
  ration thereof

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

  Section 1. The general city law is amended by  adding  a  new  section
21-a to read as follows:
  S  21-A.  COLLECTION  OF  DELINQUENT  TAX LIENS.   NOTWITHSTANDING ANY
PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY AND UNTIL
DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN, ANY CITY MAY ENTER INTO A
CONTRACT TO SELL SOME OR ALL OF THE DELINQUENT  TAX  LIENS  HELD  BY  IT
WHICH  HAVE  BEEN  ATTACHED  TO  REAL  PROPERTY  ON  OR  BEFORE  JANUARY
THIRTY-FIRST, TWO THOUSAND EIGHTEEN, TO A PRIVATE PARTY, SUBJECT TO  THE
FOLLOWING CONDITIONS:
  1. PRIOR TO ANY SALE, THE CITY COUNCIL SHALL HOLD A PUBLIC HEARING, ON
NOTICE OF AT LEAST FORTY-FIVE DAYS, ANNOUNCING THE INTENTION OF THE CITY
TO  SELL  ITS  DELINQUENT REAL PROPERTY TAX LIENS TO A THIRD PARTY. SUCH
HEARING SHALL NOT BE HELD MORE THAN NINETY DAYS PRIOR TO SUCH SALE.
  2. UPON THE APPROVAL OF THE CITY COUNCIL AND BY ADOPTION  OF  A  LOCAL
LAW,  ANY  CITY SHALL BE AUTHORIZED TO SELL DELINQUENT TAX LIENS AND THE
CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE AMOUNT OF THE
TAX LIENS SOLD.
  3. 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02366-01-3

S. 2257                             2

FAILURE  TO  PROVIDE  SUCH  NOTICE  OR  THE  FAILURE OF THE ADDRESSEE TO
RECEIVE THE SAME SHALL INVALIDATE ANY SALE OF A TAX LIEN OR TAX LIENS.
  4.  THE  CITY  SHALL  SET  THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  5. THE TAX LIEN PURCHASER MUST, THIRTY DAYS PRIOR TO THE  COMMENCEMENT
OF  ANY  FORECLOSURE  ACTION,  PROVIDE TO THE CITY A LIST OF LIENS TO BE
FORECLOSED. THE CITY 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 AND MAY
INCLUDE ANY ACCRUED INTEREST AND  REASONABLE  AND  NECESSARY  COLLECTION
FEES  INCURRED  BY  THE TAX LIEN PURCHASER. THE TAX LIEN PURCHASER SHALL
PROVIDE THE FORECLOSURE LIST TO  THE  CITY  ALONG  WITH  THE  APPLICABLE
REPURCHASE  PRICE  OF  EACH  LIEN, BY CERTIFIED MAIL, AND THE CITY SHALL
HAVE THIRTY DAYS FROM RECEIPT TO NOTIFY THE TAX LIEN  PURCHASER  OF  ITS
OPTION  TO  PURCHASE  ONE  OR  MORE  OF  THE  LIENS. IF THE CITY 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 CITY SHALL
FAIL TO OPT TO REPURCHASE THE LIEN OR LIENS THE TAX LIEN PURCHASER SHALL
HAVE THE RIGHT TO COMMENCE A FORECLOSURE ACTION ONLY AFTER THE PURCHASER
HAS GIVEN WRITTEN NOTICE TO THE PROPERTY OWNER AT THE LAST KNOWN ADDRESS
AS  LISTED  ON  THE ASSESSMENT ROLL OF THE CITY THAT SAID PROPERTY OWNER
HAS THE RIGHT TO ENTER INTO A  PAYMENT  PLAN  OF  AT  LEAST  TWENTY-FOUR
MONTHS  BUT  NO  LONGER  THAN FORTY-EIGHT MONTHS TO REPAY THE TAX AMOUNT
OWED. THE TAX LIEN PURCHASER SHALL HAVE THE RIGHT  TO  CHARGE  THE  SAME
INTEREST  AS  WAS  ACCRUING  ON  THE  TAX LIEN CERTIFICATE. THE TAX LIEN
PURCHASER SHALL NOT BE ALLOWED TO CHARGE ANY OTHER FEES, COSTS OR CHARG-
ES EXCEPT THOSE EXPRESSLY ALLOWED HEREIN UNDER THIS SECTION.
  6. THE SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL  NOT  OPERATE
TO  SHORTEN  THE  OTHERWISE  APPLICABLE  REDEMPTION PERIOD OR CHANGE THE
OTHERWISE APPLICABLE INTEREST RATE.
  7. 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 AS PROVIDED IN SECTION ELEVEN HUNDRED
NINETY-FOUR  OF  THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH ACTION
SHALL BE THE SAME PROCEDURE AS PRESCRIBED BY  ARTICLE  THIRTEEN  OF  THE
REAL  PROPERTY  ACTIONS AND PROCEEDINGS LAW FOR THE FORECLOSURE OF MORT-
GAGES. 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, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION
COSTS AND LEGAL FEES.
  8. IN EACH YEAR SUBSEQUENT TO THE TAX LIEN  SALE,  AND  NO  MORE  THAN
SIXTY  DAYS  AFTER THE ANNUAL ANNIVERSARY OF SUCH SALE, THE CITY COUNCIL
OR THEIR DESIGNEE SHALL PREPARE A REPORT ON THE STATUS  AND  RESULTS  OF
SUCH SALE. SUCH REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, INFOR-
MATION  ON  THE TOTAL DOLLAR AMOUNT RECEIVED BY THE MUNICIPALITY IN SUCH
SALE, THE NUMBER OF FORECLOSURES  CONDUCTED  BY  THE  THIRD  PARTY,  THE
NUMBER  OF PAYMENT PLANS ENTERED INTO BY TAXPAYERS AND THE STATUS THERE-
OF, THE NUMBER, IF ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE
NUMBER OF PROPERTIES TAKEN BACK BY THE CITY PURSUANT TO  THE  TERMS  AND
CONDITIONS  OF  THE  CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS
RECEIVED BY THE CITY ON THE CONDUCT OF THE ACTIONS OF  THE  THIRD  PARTY
AND  ANY  OTHER INFORMATION THE CITY COUNCIL DEEMS NECESSARY AND PROPER.
SUCH REPORT SHALL BE FILED WITH THE STATE COMPTROLLER  FOR  HIS  OR  HER
REVIEW.  THE  STATE  COMPTROLLER  SHALL  ANNUALLY  PREPARE  A REPORT FOR
SUBMISSION TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE
SPEAKER  OF THE ASSEMBLY, AND TO THE RESPECTIVE MINORITY LEADERS IN BOTH

S. 2257                             3

THE SENATE AND ASSEMBLY WHICH DETAILS THE EXPERIENCES OF ALL CITIES THAT
PARTICIPATED IN SUCH PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED
FOR IN SECTION THREE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND THIRTEEN
THAT ADDED THIS SECTION.
  9. THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN 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 SECTION.
  S 2. Section 6 of chapter 602 of the laws of 1993  amending  the  real
property tax law relating to the enforcement of the collection of delin-
quent  real  property  taxes and to the collection of taxes by banks, is
amended by adding a new subdivision (d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW
TO THE CONTRARY AND UNTIL DECEMBER 31, 2017, ANY VILLAGE MAY ENTER  INTO
A  CONTRACT  TO  SELL SOME OR ALL OF THE DELINQUENT TAX LIENS HELD BY IT
WHICH HAVE BEEN ATTACHED TO REAL PROPERTY ON OR BEFORE JANUARY 31, 2018,
TO A PRIVATE PARTY, SUBJECT TO THE FOLLOWING CONDITIONS:
  (1) PRIOR TO ANY SALE, THE BOARD OF TRUSTEES SHALL HOLD A PUBLIC HEAR-
ING, ON NOTICE OF AT LEAST 45 DAYS,  ANNOUNCING  THE  INTENTION  OF  THE
VILLAGE TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A THIRD PARTY.
SUCH HEARING SHALL NOT BE HELD MORE THAN 90 DAYS PRIOR TO SUCH SALE.
  (2)  UPON  THE  APPROVAL OF THE BOARD OF TRUSTEES AND BY ADOPTION OF A
LOCAL LAW, THE BOARD SHALL AUTHORIZE THE SALE  OF  SAID  DELINQUENT  TAX
LIENS AND THE CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE
AMOUNT OF THE TAX LIENS SOLD.
  (3)  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 INVALI-
DATE ANY SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY OF THE TAXES OR
INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
  (4)  THE VILLAGE SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  (5) THE TAX LIEN PURCHASER MUST, 30 DAYS PRIOR TO THE COMMENCEMENT  OF
ANY  FORECLOSURE  ACTION,  PROVIDE  TO THE VILLAGE A LIST OF LIENS TO BE
FORECLOSED. THE VILLAGE MAY, AT ITS SOLE OPTION AND  DISCRETION,  REPUR-
CHASE A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE TAX LIEN PURCHAS-
ER.  THE  REPURCHASE  PRICE SHALL BE THE AMOUNT OF THE LIEN OR LIENS AND
MAY INCLUDE ANY ACCRUED INTEREST AND REASONABLE AND NECESSARY COLLECTION
FEES INCURRED BY THE TAX LIEN PURCHASER. THE TAX  LIEN  PURCHASER  SHALL
PROVIDE  THE  FORECLOSURE  LIST TO THE VILLAGE ALONG WITH THE APPLICABLE
REPURCHASE PRICE OF EACH LIEN, BY CERTIFIED MAIL, AND THE VILLAGE  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 VILLAGE 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 VILLAGE SHALL FAIL TO OPT
TO  REPURCHASE  THE  LIEN OR LIENS THE TAX LIEN PURCHASER SHALL HAVE THE
RIGHT TO COMMENCE A FORECLOSURE ACTION  ONLY  AFTER  THE  PURCHASER  HAS
GIVEN  WRITTEN NOTICE TO THE PROPERTY OWNER AT THE LAST KNOWN ADDRESS AS
LISTED ON THE ASSESSMENT ROLL OF THE VILLAGE THAT  SAID  PROPERTY  OWNER
HAS  THE RIGHT TO ENTER INTO A PAYMENT PLAN OF AT LEAST 24 MONTHS BUT NO
LONGER THAN 48 MONTHS TO  REPAY  THE  TAX  AMOUNT  OWED.  THE  TAX  LIEN
PURCHASER SHALL HAVE THE RIGHT TO CHARGE THE SAME INTEREST AS WAS ACCRU-
ING  ON  THE  TAX  LIEN CERTIFICATE. THE TAX LIEN PURCHASER SHALL NOT BE
ALLOWED TO CHARGE ANY OTHER FEES, COSTS OR CHARGES EXCEPT THOSE EXPRESS-
LY ALLOWED HEREIN UNDER THIS SUBDIVISION.

S. 2257                             4

  (6) THE SALE OF A TAX LIEN PURSUANT  TO  THIS  SUBDIVISION  SHALL  NOT
OPERATE  TO SHORTEN THE OTHERWISE APPLICABLE REDEMPTION PERIOD OR CHANGE
THE OTHERWISE APPLICABLE INTEREST RATE.
  (7)  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 AS PROVIDED IN SECTION 1194 OF
THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH  ACTION  SHALL  BE  THE
SAME  PROCEDURE AS 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 PROP-
ERTY, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION  COSTS  AND  LEGAL
FEES.
  (8)  IN EACH YEAR SUBSEQUENT TO THE TAX LIEN SALE, AND NO MORE THAN 60
DAYS AFTER THE ANNUAL  ANNIVERSARY  OF  SUCH  SALE,  THE  VILLAGE  SHALL
PREPARE  A  REPORT  ON  THE STATUS AND RESULTS OF SUCH SALE. SUCH REPORT
SHALL INCLUDE, BUT NEED NOT BE LIMITED  TO,  INFORMATION  ON  THE  TOTAL
DOLLAR  AMOUNT  RECEIVED BY THE MUNICIPALITY IN SUCH SALE, THE NUMBER OF
FORECLOSURES CONDUCTED BY THE THIRD PARTY, THE NUMBER OF  PAYMENT  PLANS
ENTERED  INTO  BY  THE  TAXPAYERS AND THE STATUS THEREOF, THE NUMBER, IF
ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE NUMBER OF  PROPER-
TIES  TAKEN  BACK BY THE VILLAGE PURSUANT TO THE TERMS AND CONDITIONS OF
THE CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS RECEIVED BY  THE
VILLAGE  ON  THE CONDUCT OF THE ACTIONS OF THE THIRD PARTY AND ANY OTHER
INFORMATION THE VILLAGE DEEMS NECESSARY AND PROPER. SUCH REPORT SHALL BE
FILED WITH THE STATE COMPTROLLER FOR HIS OR HER REVIEW. THE STATE  COMP-
TROLLER  SHALL ANNUALLY PREPARE A REPORT FOR SUBMISSION TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  AND
TO THE RESPECTIVE MINORITY LEADERS IN BOTH THE SENATE AND ASSEMBLY WHICH
DETAILS  THE  EXPERIENCES  OF  ALL  VILLAGES  THAT  PARTICIPATED IN SUCH
PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED FOR IN SECTION 3  OF
THE CHAPTER OF THE LAWS OF 2013 THAT ADDED THIS SUBDIVISION.
  (9)  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 SUBDIVISION.
  S  3.  The  state  comptroller  in  preparing  its  annual report that
outlines the experiences of all cities and villages  that  have  partic-
ipated  in  a program to collect delinquent tax liens as provided for in
section 21-a of the general city law and subdivision (d) of section 6 of
chapter 602 of the laws of 1993, shall include the following information
as provided for in this section. Such report shall briefly  outline  the
reports  submitted  by all participating municipalities, the cost effec-
tiveness of such program to enhance real property tax  collections,  the
aggregate  amount of tax revenue collected minus expenses, the number of
foreclosures conducted by third parties, the  number  of  payment  plans
entered  into  by taxpayers, the number and severity of complaints about
the foreclosure process, the number of properties taken back by  partic-
ipating municipalities, any complaints received by participating munici-
palities  from  tax  lien  debtors and the general public, and any other
items or suggestions that the state comptroller  may  make  to  increase
consumer  protections to assist real property owners who have delinquent
tax liens pending to retain their real property. Such  report  shall  be
issued by the state comptroller by July first of each year.
  S  4.  This act shall take effect immediately and shall expire January
31, 2018 when upon such date the provisions of this act shall be  deemed
repealed.

Co-Sponsors

S2257A - Bill Details

Current Committee:
Senate Rules
Law Section:
General City Law
Laws Affected:
Add §21-a, Gen City L; amd §6, Chap 602 of 1993
Versions Introduced in Previous Legislative Sessions:
2011-2012: S612A
2009-2010: S6225

S2257A - Bill Texts

view summary

Authorizes cities and villages to collect delinquent real property taxes.

view sponsor memo
BILL NUMBER:S2257A

TITLE OF BILL: An act to amend the general city law and chapter 602
of the laws of 1993 amending the real property tax law relating to the
enforcement of the collection of delinquent real property taxes and to
the collection of taxes by banks, in relation to the collection of
delinquent real property taxes and providing for the repeal of such
provisions upon expiration thereof

PURPOSE:

The purpose of this bill is to expand the number of options available
to municipalities to efficiently and effectively manage the collection
of delinquent real property taxes and to provide protections to those
property owners that are subject to real property tax collections by
such municipalities or third parties.

SUMMARY OF PROVISIONS:

Section 1: Adds a new General Cities Law section 21-a to expand the
sale of tax liens by municipalities in bulk to private parties,
permits municipalities, under certain conditions, to enter into a
contract to sell some or all of their delinquent tax liens to a
private party. The authority to enter into such contracts sunsets on
December 31, 2018.

The bill provides for extensive consumer protections for affected
property owners that are subject to such municipal tax collection
efforts. Among the protections includes: a) a public hearing must be
held by the city and a local law adopted before such a procedure can
be initiated, b) prior to any sale, the city must hold a public
hearing announcing its intention to conduct a sale of its tax liens to
a third party c) property owners must be given a 30 day notice before
such a tax lien sale; provided that if such notice is not provided,
that the sale is null and void d) before commencing foreclosure
proceeding by a third party, the city must be giver notice of such
proceeding and may, at its own volition, re-purchase such tax liens to
stop the foreclosure proceeding e) before commencing a third party
foreclosure proceeding, the real property owner must be given the
opportunity to establish a payment plan for a period not to exceed 48
months to repay the real property taxes due. The third party lien
holder may not charge any other fees for executing such a payment
plan. f) once a third party tax lien foreclosure proceeding has been
started, it must be done the same way procedurally as any other tax
foreclosure proceeding initiated by a municipality.

Within 60 days after the annual anniversary of such bulk tax lien
sales auction, the city must prepare a report to ascertain the cost
effectiveness of such sale of tax liens, whether real property owners
experienced any difficulties with the foreclosure process, the number
of foreclosures, if any, the number of properties taken back by the
city to avoid a foreclosure action from proceeding, and any complaints
from the public about the conduct of any third party purchaser of a
city real property tax lien. Such report shall he forwarded to the
state comptroller for his or her review.


Section 2: Adds a new provision to Chapter 602 of the Laws of 1993 to
allow villages to conduct the same type of private sale of real
property tax liens as can be conducted by this State's cities provided
for in section 1 of this bill.

Section 3: After receiving individual reports from cities and villages
on the conduct of their sale of real property tax liens to private
parties, the State Comptroller shall prepare its own consolidated
report. This annual report shall look at the cost effectiveness of
this program to enhance municipal real property tax collections, the
amount of new revenue generated by this program minus the cost of its
operation, the number and severity of complaints about the foreclosure
process by the municipality or the third party lien holder, and any
items or suggestions that the State comptroller may have to increase
consumer protections to assist real property owners who have
delinquent tax liens pending to retain their real property.

EXISTING LAW:

Previously, under state law and the municipal home rule laws governing
certain cities, the cities of Amsterdam, Gloversville, Schenectady and
Utica could conduct such tax lien sales to private parties, but
without many of the consumer protections incorporated in this law.
Further, the cites of Rochester and Middletown can conduct such sales
by their own home rule authority. Further, the City of Buffalo is able
to conduct a similar program via an In Rem tax sale. This bill
expands the number of cities and villages that can conduct such sales,
but with the added consumer protections provided in this bill.

JUSTIFICATION:

Our State's cities and villages are under financial pressure to keep
expenses low and to raise additional revenue to overcome the economic
downturn that they are facing. This bill allows cities and villages
to, with the assistance of third, parties, to conduct the sales of tax
liens so that such municipalities can in a more timely manner collect
overdue real property taxes that are due to them. This bill should
help cities and villages to raise additional tax revenue and place
delinquent properties back on the tax rolls. It is the sponsor's hope
that placing such properties back on the tax rolls will encourage
better utilization of such properties and upgrade any buildings
located on such property to maximize their use.

LEGISLATIVE HISTORY:

2011-12: A403A referred to Real Property Taxation/S612A Committed to
Rules
2009-10: A9460 referred to Real Property Taxation/S6225 Passed Senate

FISCAL IMPLICATIONS:

None.

LOCAL FISCAL IMPLICATIONS:


This bill will improve the fiscal condition of any municipality that
exercises this new option to obtain cash from the sale of delinquent
tax liens.

EFFECTIVE DATE:

This act shall take effect immediately and shall expire January 31,
2019 when upon such date the provisions of this act shall be deemed
repealed.

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

                                 2257--A
    Cal. No. 232

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sens.  KLEIN,  ADDABBO,  DILAN -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Cities
  --  recommitted  to  the Committee on Cities in accordance with Senate
  Rule 6, sec. 8 -- reported favorably from said committee,  ordered  to
  first  and  second  report,  ordered  to  a third reading, amended and
  ordered reprinted, retaining its place in the order of third reading

AN ACT to amend the general city law and chapter 602 of the laws of 1993
  amending the real property tax law relating to the enforcement of  the
  collection  of delinquent real property taxes and to the collection of
  taxes by banks, in relation to the collection of delinquent real prop-
  erty taxes and providing for the repeal of such provisions upon  expi-
  ration thereof

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

  Section 1. The general city law is amended by  adding  a  new  section
21-a to read as follows:
  S  21-A.  COLLECTION  OF  DELINQUENT  TAX LIENS.   NOTWITHSTANDING ANY
PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY AND UNTIL
DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, ANY CITY MAY ENTER INTO  A
CONTRACT  TO  SELL  SOME  OR  ALL OF THE DELINQUENT TAX LIENS HELD BY IT
WHICH  HAVE  BEEN  ATTACHED  TO  REAL  PROPERTY  ON  OR  BEFORE  JANUARY
THIRTY-FIRST,  TWO THOUSAND NINETEEN, TO A PRIVATE PARTY, SUBJECT TO THE
FOLLOWING CONDITIONS:
  1. PRIOR TO ANY SALE, THE CITY COUNCIL SHALL HOLD A PUBLIC HEARING, ON
NOTICE OF AT LEAST FORTY-FIVE DAYS, ANNOUNCING THE INTENTION OF THE CITY
TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A  THIRD  PARTY.  SUCH
HEARING SHALL NOT BE HELD MORE THAN NINETY DAYS PRIOR TO SUCH SALE.
  2.  UPON  THE  APPROVAL OF THE CITY COUNCIL AND BY ADOPTION OF A LOCAL
LAW, ANY CITY SHALL BE AUTHORIZED TO SELL DELINQUENT TAX LIENS  AND  THE
CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE AMOUNT OF THE
TAX LIENS SOLD.
  3.  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02366-05-4

S. 2257--A                          2

FAILURE TO PROVIDE SUCH NOTICE  OR  THE  FAILURE  OF  THE  ADDRESSEE  TO
RECEIVE THE SAME SHALL INVALIDATE ANY SALE OF A TAX LIEN OR TAX LIENS.
  4.  THE  CITY  SHALL  SET  THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  5. THE TAX LIEN PURCHASER MUST, THIRTY DAYS PRIOR TO THE  COMMENCEMENT
OF  ANY  FORECLOSURE  ACTION,  PROVIDE TO THE CITY A LIST OF LIENS TO BE
FORECLOSED. THE CITY 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 AT WHICH THE CITY SOLD THE LIEN OR
LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE  ANY  ACCRUED  INTEREST.
THE  TAX  LIEN  PURCHASER SHALL PROVIDE THE FORECLOSURE LIST TO THE CITY
ALONG WITH THE APPLICABLE REPURCHASE PRICE OF EACH  LIEN,  BY  CERTIFIED
MAIL, AND THE CITY SHALL HAVE THIRTY DAYS FROM RECEIPT TO NOTIFY THE TAX
LIEN  PURCHASER  OF  ITS OPTION TO PURCHASE ONE OR MORE OF THE LIENS. IF
THE CITY 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  CITY SHALL FAIL TO OPT TO REPURCHASE THE LIEN OR LIENS THE TAX LIEN
PURCHASER SHALL HAVE THE RIGHT TO COMMENCE  A  FORECLOSURE  ACTION  ONLY
AFTER  THE  PURCHASER  HAS GIVEN WRITTEN NOTICE TO THE PROPERTY OWNER AT
THE LAST KNOWN ADDRESS AS LISTED ON THE ASSESSMENT ROLL OF THE CITY THAT
SAID PROPERTY OWNER HAS THE RIGHT TO ENTER INTO A  PAYMENT  PLAN  OF  AT
LEAST  TWENTY-FOUR MONTHS BUT NO LONGER THAN FORTY-EIGHT MONTHS TO REPAY
THE TAX AMOUNT OWED. THE TAX LIEN PURCHASER  SHALL  HAVE  THE  RIGHT  TO
CHARGE  THE  SAME  INTEREST AS WAS ACCRUING ON THE TAX LIEN CERTIFICATE.
THE TAX LIEN PURCHASER SHALL NOT BE ALLOWED TO CHARGE  ANY  OTHER  FEES,
COSTS  OR  CHARGES  EXCEPT  THOSE  EXPRESSLY  ALLOWED  HEREIN UNDER THIS
SECTION.
  6. THE SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL  NOT  OPERATE
TO  SHORTEN  THE  OTHERWISE  APPLICABLE  REDEMPTION PERIOD OR CHANGE THE
OTHERWISE APPLICABLE INTEREST RATE.
  7. 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 AS PROVIDED IN SECTION ELEVEN HUNDRED
NINETY-FOUR  OF  THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH ACTION
SHALL BE THE SAME PROCEDURE AS PRESCRIBED BY  ARTICLE  THIRTEEN  OF  THE
REAL  PROPERTY  ACTIONS AND PROCEEDINGS LAW FOR THE FORECLOSURE OF MORT-
GAGES. 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, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION
COSTS AND LEGAL FEES.
  8. IN EACH YEAR SUBSEQUENT TO THE TAX LIEN  SALE,  AND  NO  MORE  THAN
SIXTY  DAYS  AFTER THE ANNUAL ANNIVERSARY OF SUCH SALE, THE CITY COUNCIL
OR THEIR DESIGNEE SHALL PREPARE A REPORT ON THE STATUS  AND  RESULTS  OF
SUCH SALE. SUCH REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, INFOR-
MATION  ON  THE TOTAL DOLLAR AMOUNT RECEIVED BY THE MUNICIPALITY IN SUCH
SALE, THE NUMBER OF FORECLOSURES  CONDUCTED  BY  THE  THIRD  PARTY,  THE
NUMBER  OF PAYMENT PLANS ENTERED INTO BY TAXPAYERS AND THE STATUS THERE-
OF, THE NUMBER, IF ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE
NUMBER OF PROPERTIES TAKEN BACK BY THE CITY PURSUANT TO  THE  TERMS  AND
CONDITIONS  OF  THE  CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS
RECEIVED BY THE CITY ON THE CONDUCT OF THE ACTIONS OF  THE  THIRD  PARTY
AND  ANY  OTHER INFORMATION THE CITY COUNCIL DEEMS NECESSARY AND PROPER.
SUCH REPORT SHALL BE FILED WITH THE STATE COMPTROLLER  FOR  HIS  OR  HER
REVIEW.  THE  STATE  COMPTROLLER  SHALL  ANNUALLY  PREPARE  A REPORT FOR
SUBMISSION TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE
SPEAKER  OF THE ASSEMBLY, AND TO THE RESPECTIVE MINORITY LEADERS IN BOTH

S. 2257--A                          3

THE SENATE AND ASSEMBLY WHICH DETAILS THE EXPERIENCES OF ALL CITIES THAT
PARTICIPATED IN SUCH PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED
FOR IN SECTION THREE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND FOURTEEN
THAT ADDED THIS SECTION.
  9. THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN 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 SECTION.
  S 2. Section 6 of chapter 602 of the laws of 1993  amending  the  real
property tax law relating to the enforcement of the collection of delin-
quent  real  property  taxes and to the collection of taxes by banks, is
amended by adding a new subdivision (d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW
TO THE CONTRARY AND UNTIL DECEMBER 31, 2018, ANY VILLAGE MAY ENTER  INTO
A  CONTRACT  TO  SELL SOME OR ALL OF THE DELINQUENT TAX LIENS HELD BY IT
WHICH HAVE BEEN ATTACHED TO REAL PROPERTY ON OR BEFORE JANUARY 31, 2019,
TO A PRIVATE PARTY, SUBJECT TO THE FOLLOWING CONDITIONS:
  (1) PRIOR TO ANY SALE, THE BOARD OF TRUSTEES SHALL HOLD A PUBLIC HEAR-
ING, ON NOTICE OF AT LEAST 45 DAYS,  ANNOUNCING  THE  INTENTION  OF  THE
VILLAGE TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A THIRD PARTY.
SUCH HEARING SHALL NOT BE HELD MORE THAN 90 DAYS PRIOR TO SUCH SALE.
  (2)  UPON  THE  APPROVAL OF THE BOARD OF TRUSTEES AND BY ADOPTION OF A
LOCAL LAW, THE BOARD SHALL AUTHORIZE THE SALE  OF  SAID  DELINQUENT  TAX
LIENS AND THE CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE
AMOUNT OF THE TAX LIENS SOLD.
  (3)  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 INVALI-
DATE ANY SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY OF THE TAXES OR
INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
  (4)  THE VILLAGE SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  (5) THE TAX LIEN PURCHASER MUST, 30 DAYS PRIOR TO THE COMMENCEMENT  OF
ANY  FORECLOSURE  ACTION,  PROVIDE  TO THE VILLAGE A LIST OF LIENS TO BE
FORECLOSED. THE VILLAGE MAY, AT ITS SOLE OPTION AND  DISCRETION,  REPUR-
CHASE A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE TAX LIEN PURCHAS-
ER.  THE  REPURCHASE PRICE SHALL BE THE AMOUNT AT WHICH THE VILLAGE SOLD
THE LIEN OR LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE ANY  ACCRUED
INTEREST.  THE  TAX LIEN PURCHASER SHALL PROVIDE THE FORECLOSURE LIST TO
THE VILLAGE ALONG WITH THE APPLICABLE REPURCHASE PRICE OF EACH LIEN,  BY
CERTIFIED MAIL, AND THE VILLAGE SHALL HAVE 30 DAYS FROM RECEIPT TO NOTI-
FY  THE  TAX LIEN PURCHASER OF ITS OPTION TO PURCHASE ONE OR MORE OF THE
LIENS. IF THE VILLAGE 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 VILLAGE SHALL FAIL TO OPT TO  REPURCHASE  THE  LIEN  OR
LIENS THE TAX LIEN PURCHASER SHALL HAVE THE RIGHT TO COMMENCE A FORECLO-
SURE  ACTION  ONLY  AFTER  THE PURCHASER HAS GIVEN WRITTEN NOTICE TO THE
PROPERTY OWNER AT THE LAST KNOWN ADDRESS AS  LISTED  ON  THE  ASSESSMENT
ROLL OF THE VILLAGE THAT SAID PROPERTY OWNER HAS THE RIGHT TO ENTER INTO
A  PAYMENT  PLAN  OF  AT LEAST 24 MONTHS BUT NO LONGER THAN 48 MONTHS TO
REPAY THE TAX AMOUNT OWED. THE TAX LIEN PURCHASER SHALL HAVE  THE  RIGHT
TO CHARGE THE SAME INTEREST AS WAS ACCRUING ON THE TAX LIEN CERTIFICATE.
THE  TAX  LIEN  PURCHASER SHALL NOT BE ALLOWED TO CHARGE ANY OTHER FEES,
COSTS OR CHARGES EXCEPT THOSE EXPRESSLY ALLOWED HEREIN UNDER THIS SUBDI-
VISION.

S. 2257--A                          4

  (6) THE SALE OF A TAX LIEN PURSUANT  TO  THIS  SUBDIVISION  SHALL  NOT
OPERATE  TO SHORTEN THE OTHERWISE APPLICABLE REDEMPTION PERIOD OR CHANGE
THE OTHERWISE APPLICABLE INTEREST RATE.
  (7)  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 AS PROVIDED IN SECTION 1194 OF
THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH  ACTION  SHALL  BE  THE
SAME  PROCEDURE AS 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 PROP-
ERTY, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION  COSTS  AND  LEGAL
FEES.
  (8)  IN EACH YEAR SUBSEQUENT TO THE TAX LIEN SALE, AND NO MORE THAN 60
DAYS AFTER THE ANNUAL  ANNIVERSARY  OF  SUCH  SALE,  THE  VILLAGE  SHALL
PREPARE  A  REPORT  ON  THE STATUS AND RESULTS OF SUCH SALE. SUCH REPORT
SHALL INCLUDE, BUT NEED NOT BE LIMITED  TO,  INFORMATION  ON  THE  TOTAL
DOLLAR  AMOUNT  RECEIVED BY THE MUNICIPALITY IN SUCH SALE, THE NUMBER OF
FORECLOSURES CONDUCTED BY THE THIRD PARTY, THE NUMBER OF  PAYMENT  PLANS
ENTERED  INTO  BY  THE  TAXPAYERS AND THE STATUS THEREOF, THE NUMBER, IF
ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE NUMBER OF  PROPER-
TIES  TAKEN  BACK BY THE VILLAGE PURSUANT TO THE TERMS AND CONDITIONS OF
THE CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS RECEIVED BY  THE
VILLAGE  ON  THE CONDUCT OF THE ACTIONS OF THE THIRD PARTY AND ANY OTHER
INFORMATION THE VILLAGE DEEMS NECESSARY AND PROPER. SUCH REPORT SHALL BE
FILED WITH THE STATE COMPTROLLER FOR HIS OR HER REVIEW. THE STATE  COMP-
TROLLER  SHALL ANNUALLY PREPARE A REPORT FOR SUBMISSION TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  AND
TO THE RESPECTIVE MINORITY LEADERS IN BOTH THE SENATE AND ASSEMBLY WHICH
DETAILS  THE  EXPERIENCES  OF  ALL  VILLAGES  THAT  PARTICIPATED IN SUCH
PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED FOR IN SECTION 3  OF
THE CHAPTER OF THE LAWS OF 2014 THAT ADDED THIS SUBDIVISION.
  (9)  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 SUBDIVISION.
  S  3.  The  state  comptroller  in  preparing  its  annual report that
outlines the experiences of all cities and villages  that  have  partic-
ipated  in  a program to collect delinquent tax liens as provided for in
section 21-a of the general city law and subdivision (d) of section 6 of
chapter 602 of the laws of 1993, shall include the following information
as provided for in this section. Such report shall briefly  outline  the
reports  submitted  by all participating municipalities, the cost effec-
tiveness of such program to enhance real property tax  collections,  the
aggregate  amount of tax revenue collected minus expenses, the number of
foreclosures conducted by third parties, the  number  of  payment  plans
entered  into  by taxpayers, the number and severity of complaints about
the foreclosure process, the number of properties taken back by  partic-
ipating municipalities, any complaints received by participating munici-
palities  from  tax  lien  debtors and the general public, and any other
items or suggestions that the state comptroller  may  make  to  increase
consumer  protections to assist real property owners who have delinquent
tax liens pending to retain their real property. Such  report  shall  be
issued by the state comptroller by July first of each year.
  S  4.  This act shall take effect immediately and shall expire January
31, 2019 when upon such date the provisions of this act shall be  deemed
repealed.

Co-Sponsors

S2257B (ACTIVE) - Bill Details

Current Committee:
Senate Rules
Law Section:
General City Law
Laws Affected:
Add §21-a, Gen City L; amd §6, Chap 602 of 1993
Versions Introduced in Previous Legislative Sessions:
2011-2012: S612A
2009-2010: S6225

S2257B (ACTIVE) - Bill Texts

view summary

Authorizes cities and villages to collect delinquent real property taxes.

view sponsor memo
BILL NUMBER:S2257B

TITLE OF BILL: An act to amend the general city law and chapter 602
of the laws of 1993 amending the real property tax law relating to the
enforcement of the collection of delinquent real property taxes and to
the collection of taxes by banks, in relation to the collection of
delinquent real property taxes; and providing for the repeal of such
provisions upon expiration thereof

PURPOSE:

The purpose of this bill is to expand the number of options available
to municipalities to efficiently and effectively manage the collection
of delinquent real property taxes and to provide protections to those
property owners that are subject to real property tax collections by
such municipalities or third parties.

SUMMARY OF PROVISIONS:

Section 1: Adds a new General Cities Law section 21-a to expand the
sale of tax liens by municipalities in bulk to private parties,
permits municipalities, under certain conditions, to enter into a
contract to sell some or all of their delinquent tax liens to a
private party. The authority to enter into such contracts sunsets on
December 31, 2018.

The bill provides for extensive consumer protections for affected
property owners that are subject to such municipal tax collection
efforts. Among the protections includes:

a) a public hearing must be held by the city and a local law adopted
before such a procedure can be initiated,

b) prior to any sale, the city must hold a public hearing announcing
it's intention to conduct a sale of its tax liens to a third party

c) property owners must be given a 30 day notice before such a tax
lien sale; provided that if such notice is not provided, that the sale
is null and void

d) before commencing foreclosure proceeding by a third party, the city
must give notice of such proceeding and may, at its own volition,
re-purchase such tax liens to stop the foreclosure proceeding

e) before commencing a third party foreclosure proceeding, the real
property owner must be given the opportunity to establish a payment
plan for a period not to exceed 48 months to repay the real property
taxes due. The third party lien holder may not charge any other fees
for executing such a payment plan.

f) once a third party tax lien foreclosure proceeding has been
started, it must be done the same way procedurally as any other tax
foreclosure proceeding initiated by a municipality.

In addition, this bill was amended so that if a lien is sold, that the
county clerk's office shall accept filings, indexed by the property
owners name and section, block and lot number to facilitate the


location and resolution of any outstanding liens. Further, should the
property owner satisfy any outstanding liens owed to the lien
purchaser, the lien purchaser must file in the county clerk's office a
notice that such lien has been satisfied against the property owner.

Within 60 days after the annual anniversary of such bulk tax lien
sales auction, the city must prepare a report to ascertain the cost
effectiveness of such sale of tax liens, whether real property owners
experienced any difficulties with the foreclosure process, difficulty
in the property owner in satisfying any outstanding liens owned by the
municipality or other lien holder, the number of foreclosures, if any,
the number of properties taken back by the city to avoid a foreclosure
action from proceeding, and any complaints from the public about the
conduct of any third party purchaser of a city real property tax lien.
Such report shall be forwarded to the state comptroller for his or her
review.

Section 2: Adds a new provision to Chapter 602 of the Laws of 1993 to
allow villages to conduct the same type of private sale of real
property tax liens as can be conducted by this State's cities provided
for in section 1 of this bill.

Section 3: After receiving individual reports from cities and villages
on the conduct of their sale of real property tax liens to private
parties, the State Comptroller shall prepare its own consolidated
report. This annual report shall look at the cost effectiveness of
this program to enhance municipal real property tax collections, the
amount of new revenue generated by this program minus the cost of its
operation, the number and severity of complaints about the foreclosure
process by the municipality or the third party lien holder, and any
items or suggestions that the State comptroller may have to increase
consumer protections to assist real property owners who have
delinquent tax liens pending to retain their real property.

EXISTING LAW:

Previously, under state law and the municipal home rule laws governing
certain cities, the cities of Amsterdam, Gloversville, Schenectady,
Utica and many others could conduct such tax lien sales to private
parties, but without many of the consumer protections incorporated in
this law. Further, the Cities of Rochester and Middletown can conduct
such sales by their own home rule authority. Further, the City of
Buffalo is able to conduct a similar program via an In Rem tax sale.
This bill expands the number of cities and villages that can conduct
such sales, but with the added consumer protections provided in this
bill.

JUSTIFICATION:

Our State's cities and villages are under financial pressure to keep
expenses low and to raise additional revenue to overcome the economic
downturn that they are facing. This bill allows cities and villages
to, with the assistance of third, parties, to conduct the sales of tax
liens so that such municipalities can in a more timely manner collect
overdue real property taxes that are due to them. This bill should
help cities and villages to raise additional tax revenue and place
delinquent properties back on the tax rolls. It is the sponsor's hope


that placing such properties back on the tax rolls will encourage
better utilization of such properties and upgrade any buildings
located on such property to maximize their use.

LEGISLATIVE HISTORY:

2011-12: A.403A referred to Real Property Taxation/S.612A Committed to
Rules
2009-10: A.9460 referred to Real Property Taxation/S.6225 Passed
Senate

FISCAL IMPLICATIONS:

None.

LOCAL FISCAL IMPLICATIONS:

This bill will improve the fiscal condition of any municipality that
exercises this new option to obtain cash from the sale of delinquent
tax liens.

EFFECTIVE DATE:

This act shall take effect immediately and shall expire January 31,
2019 when upon such date the provisions of this act shall be deemed
repealed.

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

                                 2257--B
    Cal. No. 232

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sens.  KLEIN,  ADDABBO,  DILAN -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Cities
  --  recommitted  to  the Committee on Cities in accordance with Senate
  Rule 6, sec. 8 -- reported favorably from said committee,  ordered  to
  first  and  second  report,  ordered  to  a third reading, amended and
  ordered reprinted, retaining its place in the order of  third  reading
  --  again  amended  and  ordered reprinted, retaining its place in the
  order of third reading

AN ACT to amend the general city law and chapter 602 of the laws of 1993
  amending the real property tax law relating to the enforcement of  the
  collection  of delinquent real property taxes and to the collection of
  taxes by banks, in relation to the collection of delinquent real prop-
  erty taxes; and providing for the repeal of such provisions upon expi-
  ration thereof

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

  Section  1.  The  general  city law is amended by adding a new section
21-a to read as follows:
  S 21-A. COLLECTION OF  DELINQUENT  TAX  LIENS.    NOTWITHSTANDING  ANY
PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY AND UNTIL
DECEMBER  THIRTY-FIRST, TWO THOUSAND EIGHTEEN, ANY CITY MAY ENTER INTO A
CONTRACT TO SELL SOME OR ALL OF THE DELINQUENT  TAX  LIENS  HELD  BY  IT
WHICH  HAVE  BEEN  ATTACHED  TO  REAL  PROPERTY  ON  OR  BEFORE  JANUARY
THIRTY-FIRST, TWO THOUSAND NINETEEN, TO A PRIVATE PARTY, SUBJECT TO  THE
FOLLOWING CONDITIONS:
  1. PRIOR TO ANY SALE, THE CITY COUNCIL SHALL HOLD A PUBLIC HEARING, ON
NOTICE OF AT LEAST FORTY-FIVE DAYS, ANNOUNCING THE INTENTION OF THE CITY
TO  SELL  ITS  DELINQUENT REAL PROPERTY TAX LIENS TO A THIRD PARTY. SUCH
HEARING SHALL NOT BE HELD MORE THAN NINETY DAYS PRIOR TO SUCH SALE.
  2. UPON THE APPROVAL OF THE CITY COUNCIL AND BY ADOPTION  OF  A  LOCAL
LAW,  ANY  CITY SHALL BE AUTHORIZED TO SELL DELINQUENT TAX LIENS AND THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02366-07-4

S. 2257--B                          2

CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE AMOUNT OF THE
TAX LIENS SOLD.
  3.  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.
FAILURE TO PROVIDE SUCH NOTICE  OR  THE  FAILURE  OF  THE  ADDRESSEE  TO
RECEIVE THE SAME SHALL INVALIDATE ANY SALE OF A TAX LIEN OR TAX LIENS.
  4.  THE  CITY  SHALL  SET  THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  5. UPON THE SALE OF SUCH DELINQUENT TAX LIENS, THE CITY SHALL FILE, IN
THE COUNTY CLERK'S OFFICE, AS INDEXED AGAINST THE NAME OF  THE  ASSESSED
PROPERTY  OWNER  AND BY SECTION, BLOCK AND LOT OF SUCH PARCEL, NOTICE OF
SUCH SALE FOR EACH PARCEL OF REAL PROPERTY INCLUDED  IN  THE  SALE,  AND
SHALL  INCLUDE  IN  THE NOTICE THE NAME, ADDRESS AND TELEPHONE NUMBER OF
THE TAX LIEN PURCHASER.
  6. THE TAX LIEN PURCHASER MUST, THIRTY DAYS PRIOR TO THE  COMMENCEMENT
OF  ANY  FORECLOSURE  ACTION,  PROVIDE TO THE CITY A LIST OF LIENS TO BE
FORECLOSED. THE CITY 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 AT WHICH THE CITY SOLD THE LIEN OR
LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE  ANY  ACCRUED  INTEREST.
THE  TAX  LIEN  PURCHASER SHALL PROVIDE THE FORECLOSURE LIST TO THE CITY
ALONG WITH THE APPLICABLE REPURCHASE PRICE OF EACH  LIEN,  BY  CERTIFIED
MAIL, AND THE CITY SHALL HAVE THIRTY DAYS FROM RECEIPT TO NOTIFY THE TAX
LIEN  PURCHASER  OF  ITS OPTION TO PURCHASE ONE OR MORE OF THE LIENS. IF
THE CITY 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  CITY SHALL FAIL TO OPT TO REPURCHASE THE LIEN OR LIENS THE TAX LIEN
PURCHASER SHALL HAVE THE RIGHT TO COMMENCE  A  FORECLOSURE  ACTION  ONLY
AFTER  THE  PURCHASER  HAS GIVEN WRITTEN NOTICE TO THE PROPERTY OWNER AT
THE LAST KNOWN ADDRESS AS LISTED ON THE ASSESSMENT ROLL OF THE CITY THAT
SAID PROPERTY OWNER HAS THE RIGHT TO ENTER INTO A  PAYMENT  PLAN  OF  AT
LEAST  TWENTY-FOUR MONTHS BUT NO LONGER THAN FORTY-EIGHT MONTHS TO REPAY
THE TAX AMOUNT OWED. THE TAX LIEN PURCHASER  SHALL  HAVE  THE  RIGHT  TO
CHARGE  THE  SAME  INTEREST AS WAS ACCRUING ON THE TAX LIEN CERTIFICATE.
THE TAX LIEN PURCHASER SHALL NOT BE ALLOWED TO CHARGE  ANY  OTHER  FEES,
COSTS  OR  CHARGES  EXCEPT  THOSE  EXPRESSLY  ALLOWED  HEREIN UNDER THIS
SECTION.
  7. THE SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL  NOT  OPERATE
TO  SHORTEN  THE  OTHERWISE  APPLICABLE  REDEMPTION PERIOD OR CHANGE THE
OTHERWISE APPLICABLE INTEREST RATE.
  8. 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 AS PROVIDED IN SECTION ELEVEN HUNDRED
NINETY-FOUR  OF  THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH ACTION
SHALL BE THE SAME PROCEDURE AS PRESCRIBED BY  ARTICLE  THIRTEEN  OF  THE
REAL  PROPERTY  ACTIONS AND PROCEEDINGS LAW FOR THE FORECLOSURE OF MORT-
GAGES. 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, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION
COSTS AND LEGAL FEES.
  9. IN THE EVENT THAT THE OWNER OF REAL PROPERTY SUBJECT  TO  A  DELIN-
QUENT  TAX  LIEN  PURCHASED  BY A TAX LIEN PURCHASER PAYS THE DELINQUENT
TAXES AND INTEREST OWED UPON SUCH REAL PROPERTY  WITHIN  THE  APPLICABLE
REDEMPTION  PERIOD,  OR  THE  TAX LIEN PURCHASER SELLS, IN A FORECLOSURE
ACTION, ITS INTEREST IN REAL PROPERTY, SUCH TAX LIEN PURCHASER,  OR  ITS

S. 2257--B                          3

SUCCESSORS  OR  ASSIGNS,  SHALL,  WITHIN  TEN DAYS OF SUCH REDEMPTION OR
SALE, FILE, IN THE COUNTY CLERK'S OFFICE, A NOTICE OF ITS TERMINATION OF
ALL RIGHT, TITLE AND INTEREST IN THE PARCEL OF REAL PROPERTY. THE  FAIL-
URE  TO  COMPLY  WITH THE PROVISIONS OF THIS SUBDIVISION SHALL RESULT IN
THE IMPOSITION OF A CIVIL PENALTY OF ONE HUNDRED DOLLARS BY  THE  COUNTY
CLERK.
  10. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, IN THE EVENT
THAT  A  DELINQUENT  TAX  LIEN  PURCHASER HAS NOT COMMENCED AN ACTION TO
FORECLOSE UPON A PARCEL OF REAL PROPERTY WITHIN TWO YEARS OF THE  FILING
OF  THE NOTICE RELATING TO SUCH PROPERTY PURSUANT TO SUBDIVISION FIVE OF
THIS SECTION, SUCH NOTICE SHALL BE DEEMED BY LAW TO BE NULL AND VOID.
  11. IN EACH YEAR SUBSEQUENT TO THE TAX LIEN SALE,  AND  NO  MORE  THAN
SIXTY  DAYS  AFTER THE ANNUAL ANNIVERSARY OF SUCH SALE, THE CITY COUNCIL
OR THEIR DESIGNEE SHALL PREPARE A REPORT ON THE STATUS  AND  RESULTS  OF
SUCH SALE. SUCH REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, INFOR-
MATION  ON  THE TOTAL DOLLAR AMOUNT RECEIVED BY THE MUNICIPALITY IN SUCH
SALE, THE NUMBER OF FORECLOSURES  CONDUCTED  BY  THE  THIRD  PARTY,  THE
NUMBER  OF PAYMENT PLANS ENTERED INTO BY TAXPAYERS AND THE STATUS THERE-
OF, THE NUMBER, IF ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE
NUMBER OF PROPERTIES TAKEN BACK BY THE CITY PURSUANT TO  THE  TERMS  AND
CONDITIONS  OF  THE  CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS
RECEIVED BY THE CITY ON THE CONDUCT OF THE ACTIONS OF  THE  THIRD  PARTY
AND  ANY  OTHER INFORMATION THE CITY COUNCIL DEEMS NECESSARY AND PROPER.
SUCH REPORT SHALL BE FILED WITH THE STATE COMPTROLLER  FOR  HIS  OR  HER
REVIEW.  THE  STATE  COMPTROLLER  SHALL  ANNUALLY  PREPARE  A REPORT FOR
SUBMISSION TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE
SPEAKER  OF THE ASSEMBLY, AND TO THE RESPECTIVE MINORITY LEADERS IN BOTH
THE SENATE AND ASSEMBLY WHICH DETAILS THE EXPERIENCES OF ALL CITIES THAT
PARTICIPATED IN SUCH PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED
FOR IN SECTION THREE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND FOURTEEN
THAT ADDED THIS SECTION.
  12. 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 SECTION.
  S  2.  Section  6 of chapter 602 of the laws of 1993 amending the real
property tax law relating to the enforcement of the collection of delin-
quent real property taxes and to the collection of taxes  by  banks,  is
amended by adding a new subdivision (d) to read as follows:
  (D) NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW
TO  THE CONTRARY AND UNTIL DECEMBER 31, 2018, ANY VILLAGE MAY ENTER INTO
A CONTRACT TO SELL SOME OR ALL OF THE DELINQUENT TAX LIENS  HELD  BY  IT
WHICH HAVE BEEN ATTACHED TO REAL PROPERTY ON OR BEFORE JANUARY 31, 2019,
TO A PRIVATE PARTY, SUBJECT TO THE FOLLOWING CONDITIONS:
  (1) PRIOR TO ANY SALE, THE BOARD OF TRUSTEES SHALL HOLD A PUBLIC HEAR-
ING,  ON  NOTICE  OF  AT  LEAST 45 DAYS, ANNOUNCING THE INTENTION OF THE
VILLAGE TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A THIRD PARTY.
SUCH HEARING SHALL NOT BE HELD MORE THAN 90 DAYS PRIOR TO SUCH SALE.
  (2) UPON THE APPROVAL OF THE BOARD OF TRUSTEES AND BY  ADOPTION  OF  A
LOCAL  LAW,  THE  BOARD  SHALL AUTHORIZE THE SALE OF SAID DELINQUENT TAX
LIENS AND THE CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE
AMOUNT OF THE TAX LIENS SOLD.
  (3) 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 INVALI-

S. 2257--B                          4

DATE ANY SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY OF THE TAXES OR
INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
  (4)  THE VILLAGE SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE.
  (5) UPON THE SALE OF SUCH DELINQUENT  TAX  LIENS,  THE  VILLAGE  SHALL
FILE,  IN  THE COUNTY CLERK'S OFFICE, AS INDEXED AGAINST THE NAME OF THE
ASSESSED PROPERTY OWNER AND BY SECTION, BLOCK AND LOT  OF  SUCH  PARCEL,
NOTICE  OF  SUCH  SALE  FOR EACH PARCEL OF REAL PROPERTY INCLUDED IN THE
SALE, AND SHALL INCLUDE IN THE NOTICE THE NAME,  ADDRESS  AND  TELEPHONE
NUMBER OF THE TAX LIEN PURCHASER.
  (6)  THE TAX LIEN PURCHASER MUST, 30 DAYS PRIOR TO THE COMMENCEMENT OF
ANY FORECLOSURE ACTION, PROVIDE TO THE VILLAGE A LIST  OF  LIENS  TO  BE
FORECLOSED.  THE  VILLAGE MAY, AT ITS SOLE OPTION AND DISCRETION, REPUR-
CHASE A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE TAX LIEN PURCHAS-
ER. THE REPURCHASE PRICE SHALL BE THE AMOUNT AT WHICH THE  VILLAGE  SOLD
THE  LIEN OR LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE ANY ACCRUED
INTEREST. THE TAX LIEN PURCHASER SHALL PROVIDE THE FORECLOSURE  LIST  TO
THE  VILLAGE ALONG WITH THE APPLICABLE REPURCHASE PRICE OF EACH LIEN, BY
CERTIFIED MAIL, AND THE VILLAGE SHALL HAVE 30 DAYS FROM RECEIPT TO NOTI-
FY THE TAX LIEN PURCHASER OF ITS OPTION TO PURCHASE ONE OR MORE  OF  THE
LIENS.  IF  THE  VILLAGE  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  VILLAGE SHALL FAIL TO OPT TO REPURCHASE THE LIEN OR
LIENS THE TAX LIEN PURCHASER SHALL HAVE THE RIGHT TO COMMENCE A FORECLO-
SURE ACTION ONLY AFTER THE PURCHASER HAS GIVEN  WRITTEN  NOTICE  TO  THE
PROPERTY  OWNER  AT  THE  LAST KNOWN ADDRESS AS LISTED ON THE ASSESSMENT
ROLL OF THE VILLAGE THAT SAID PROPERTY OWNER HAS THE RIGHT TO ENTER INTO
A PAYMENT PLAN OF AT LEAST 24 MONTHS BUT NO LONGER  THAN  48  MONTHS  TO
REPAY  THE  TAX AMOUNT OWED. THE TAX LIEN PURCHASER SHALL HAVE THE RIGHT
TO CHARGE THE SAME INTEREST AS WAS ACCRUING ON THE TAX LIEN CERTIFICATE.
THE TAX LIEN PURCHASER SHALL NOT BE ALLOWED TO CHARGE  ANY  OTHER  FEES,
COSTS OR CHARGES EXCEPT THOSE EXPRESSLY ALLOWED HEREIN UNDER THIS SUBDI-
VISION.
  (7)  THE  SALE  OF  A  TAX LIEN PURSUANT TO THIS SUBDIVISION SHALL NOT
OPERATE TO SHORTEN THE OTHERWISE APPLICABLE REDEMPTION PERIOD OR  CHANGE
THE OTHERWISE APPLICABLE INTEREST RATE.
  (8)  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 AS PROVIDED IN SECTION 1194 OF
THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH  ACTION  SHALL  BE  THE
SAME  PROCEDURE AS 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 PROP-
ERTY, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION  COSTS  AND  LEGAL
FEES.
  (9)  IN  THE EVENT THAT THE OWNER OF REAL PROPERTY SUBJECT TO A DELIN-
QUENT TAX LIEN PURCHASED BY A TAX LIEN  PURCHASER  PAYS  THE  DELINQUENT
TAXES  AND  INTEREST  OWED UPON SUCH REAL PROPERTY WITHIN THE APPLICABLE
REDEMPTION PERIOD, OR THE TAX LIEN PURCHASER  SELLS,  IN  A  FORECLOSURE
ACTION,  ITS  INTEREST IN REAL PROPERTY, SUCH TAX LIEN PURCHASER, OR ITS
SUCCESSORS OR ASSIGNS, SHALL, WITHIN 10 DAYS OF SUCH REDEMPTION OR SALE,
FILE, IN THE COUNTY CLERK'S OFFICE, A NOTICE OF ITS TERMINATION  OF  ALL
RIGHT, TITLE AND INTEREST IN THE PARCEL OF REAL PROPERTY. THE FAILURE TO
COMPLY WITH THE PROVISIONS OF THIS SUBDIVISION SHALL RESULT IN THE IMPO-
SITION OF A CIVIL PENALTY OF ONE HUNDRED DOLLARS BY THE COUNTY CLERK.

S. 2257--B                          5

  (10)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW TO THE CONTRARY, IN THE
EVENT THAT A DELINQUENT TAX LIEN PURCHASER HAS NOT COMMENCED  AN  ACTION
TO  FORECLOSE  UPON  A  PARCEL  OF REAL PROPERTY WITHIN TWO YEARS OF THE
FILING OF THE NOTICE RELATING TO SUCH  PROPERTY  PURSUANT  TO  PARAGRAPH
FIVE  OF THIS SUBDIVISION, SUCH NOTICE SHALL BE DEEMED BY LAW TO BE NULL
AND VOID.
  (11) IN EACH YEAR SUBSEQUENT TO THE TAX LIEN SALE, AND NO MORE THAN 60
DAYS AFTER THE ANNUAL  ANNIVERSARY  OF  SUCH  SALE,  THE  VILLAGE  SHALL
PREPARE  A  REPORT  ON  THE STATUS AND RESULTS OF SUCH SALE. SUCH REPORT
SHALL INCLUDE, BUT NEED NOT BE LIMITED  TO,  INFORMATION  ON  THE  TOTAL
DOLLAR  AMOUNT  RECEIVED BY THE MUNICIPALITY IN SUCH SALE, THE NUMBER OF
FORECLOSURES CONDUCTED BY THE THIRD PARTY, THE NUMBER OF  PAYMENT  PLANS
ENTERED  INTO  BY  THE  TAXPAYERS AND THE STATUS THEREOF, THE NUMBER, IF
ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE NUMBER OF  PROPER-
TIES  TAKEN  BACK BY THE VILLAGE PURSUANT TO THE TERMS AND CONDITIONS OF
THE CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS RECEIVED BY  THE
VILLAGE  ON  THE CONDUCT OF THE ACTIONS OF THE THIRD PARTY AND ANY OTHER
INFORMATION THE VILLAGE DEEMS NECESSARY AND PROPER. SUCH REPORT SHALL BE
FILED WITH THE STATE COMPTROLLER FOR HIS OR HER REVIEW. THE STATE  COMP-
TROLLER  SHALL ANNUALLY PREPARE A REPORT FOR SUBMISSION TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  AND
TO THE RESPECTIVE MINORITY LEADERS IN BOTH THE SENATE AND ASSEMBLY WHICH
DETAILS  THE  EXPERIENCES  OF  ALL  VILLAGES  THAT  PARTICIPATED IN SUCH
PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED FOR IN SECTION 3  OF
THE CHAPTER OF THE LAWS OF 2014 THAT ADDED THIS SUBDIVISION.
  (12)  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 SUBDIVISION.
  S  3.  The  state  comptroller  in  preparing  its  annual report that
outlines the experiences of all cities and villages  that  have  partic-
ipated  in  a program to collect delinquent tax liens as provided for in
section 21-a of the general city law and subdivision (d) of section 6 of
chapter 602 of the laws of 1993, shall include the following information
as provided for in this section. Such report shall briefly  outline  the
reports  submitted  by all participating municipalities, the cost effec-
tiveness of such program to enhance real property tax  collections,  the
aggregate  amount of tax revenue collected minus expenses, the number of
foreclosures conducted by third parties, the  number  of  payment  plans
entered  into  by taxpayers, the number and severity of complaints about
the foreclosure process, the number of properties taken back by  partic-
ipating municipalities, any complaints received by participating munici-
palities  from  tax  lien  debtors and the general public, and any other
items or suggestions that the state comptroller  may  make  to  increase
consumer  protections to assist real property owners who have delinquent
tax liens pending to retain their real property. Such  report  shall  be
issued by the state comptroller by July first of each year.
  S  4.  This act shall take effect immediately and shall expire January
31, 2019 when upon such date the provisions of this act shall be  deemed
repealed.

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