senate Bill S2993

2013-2014 Legislative Session

Relates to establishing a new classification for properties held in condominium and cooperative form for assessment purposes

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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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Senate Actions - UPPERCASE
Jan 08, 2014 referred to cities
Jan 28, 2013 referred to cities

S2993 - Bill Details

See Assembly Version of this Bill:
A3010
Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Amd §§1802, 1805, 467-a, 499-aaa, 499-aaaa, 522, 523-b, 701 & 720, RPT L; amd NYC Ad Cd, generally; amd §§163 & 164-b, NYC Chart
Versions Introduced in 2011-2012 Legislative Session:
S7770, A10737

S2993 - Bill Texts

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Relates to establishing a new classification for properties held in condominium and cooperative form for assessment purposes.

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BILL NUMBER:S2993

TITLE OF BILL: An act to amend the real property tax law, the
administrative code of the city of New York and the New York city
charter, in relation to establishing a new classification of
properties for properties held in condominium and cooperative form for
assessment purposes

SUMMARY OF PROVISIONS: Section 1 of the bill redefines class 2 and
adds a new class 5. The bill amends the class 2 definition to consist
only of residential properties held in cooperative or condominium form
of ownership. Class 5 is added, which consists of all residential
property that is not classified as class 1 or class 2.

Section 2 extends assessment caps of 8 percent in any one year and 30
percent in any five years to all class 2 properties. This section also
imposes such caps on class 5 properties with less than 11 residential
units.

Sections 3 to 24 make conforming changes through various consolidated
laws, the administrative code of the City of new York and the new York
City Charter to accommodate properties now designated as class 5.

Section 25 provides that the act takes effect on the first January
next succeeding the date on which it shall become a law and shall
apply to assessment rolls prepared occurring after such date.

JUSTIFICATION: This bill extends to all co-ops and condos the caps on
property tax assessments currently enjoyed by co-ops and condos with
10 units or less. Currently, co-ops and condos with more than 10 units
have changes in market value phased into assessed value over 5 years.
While this provides some modicum of protection, recent valuations
changes have shown that it is not enough. With the implementation of
this bill, all co-ops and condos will see the growth in the their
assessments capped at 8 percent in any one year, and 30 percent in any
5 years (8/30 cap).

By providing assessment caps, this bill would bring co-ops and condos
a step closer towards equity in taxation with class 1 (1 to 3 family)
properties which already enjoy assessment caps.

Section 581 of the New York State Real Property Tax Law requires that
co-ops and condos be valued as if they were rental apartments and this
further complicated the already complex requirement of mass appraisals
of all property in New York City. As a result, there are times, such
as Fiscal Year 2012, where assessment for co-ops and condos can jump
dramatically to reflect corrections and updated data.

Under the current class share system of tax rates used in New York
City, each class has its own tax rate. These rates are mostly a
function of the overall tax rate and the relationship between each
class's market and assessed value growth rates. Basically, this means
that having two large groups in the same class but with different
assessment growth controls raises the risk that the tax burden will
shift from one group to another. The separating of the two groups with


the new class 5 takes advantage of the class share system to avoid
that potential problem.

Accordingly, this bill also moves all residential properties not
classified as class 1 or 2 (i.e., rental properties) into a new class
5, making class 2 just residential co-ops and condos. This is done to
prevent any distortions in the tax rate that can be caused by
extending the 8/30 caps to the co-ops and condos but not the rentals.

The bill also updates the legal structures of various tax programs and
initiatives to reflect the new classifications of property.
Properties in classes 1, 3, and 4 would be unaffected by this bill.

PRIOR LEGISLATIVE HISTORY: New bill in 2012.

FISCAL IMPACT: On average, the fiscal impact for New York City is
expected to be minimal. As the legislation changes the way assessment
growth of co-ops and condos is calculated, the revenue growth pattern
will look different going forward. In some years, the bill will be
revenue positive, but this will be balanced by other years where it
will be revenue negative. In the near term, the bill is more likely to
be revenue positive.

This bill will have no fiscal impact at the State level.

EFFECTIVE DATE: First January next succeeding the date on which the
bill is passed and shall apply to assessment rolls prepared after that
date.

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

                                  2993

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 28, 2013
                               ___________

Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend the real property tax law, the  administrative  code  of
  the  city  of  New  York and the New York city charter, in relation to
  establishing a new classification of properties for properties held in
  condominium and cooperative form for assessment purposes

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

  Section 1. Subdivision 1 of section 1802 of the real property tax law,
as separately amended by chapters 123 and 529 of the laws of 1990, para-
graph  class  one  as  amended  by  chapter  332 of the laws of 2008, is
amended to read as follows:
  1. All real property, for the purposes of this article, in  a  special
assessing unit shall be classified as follows:
  Class  one: (a) all one, two and three family residential real proper-
        ty, including such dwellings used  in  part  for  nonresidential
        purposes  but which are used primarily for residential purposes,
        except such property held in cooperative or condominium forms of
        ownership other than (i) property defined in  subparagraphs  (b)
        and  (c)  of  this paragraph and (ii) property which contains no
        more than three dwelling  units  held  in  condominium  form  of
        ownership and which was classified within this class on a previ-
        ous  assessment  roll;  and  provided  that, notwithstanding the
        provisions of paragraph (g) of subdivision twelve of section one
        hundred two of this chapter, a mobile home or  a  trailer  shall
        not  be classified within this class unless it is owner-occupied
        and separately assessed; and (b) residential real  property  not
        more  than  three  stories in height held in condominium form of
        ownership, provided that no dwelling unit therein previously was
        on an assessment roll as a dwelling unit in other than condomin-
        ium  form  of  ownership;  and  (c)  residential  real  property

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04274-01-3

S. 2993                             2

        consisting of one family house structures owned by the occupant,
        situated  on land held in cooperative ownership by owner occupi-
        ers, provided that; (i) such house structures and  land  consti-
        tuted  bungalow  colonies in existence prior to nineteen hundred
        forty; and (ii) the land is held in  cooperative  ownership  for
        the  sole  purpose  of  maintaining  one  family  residences for
        members own use; and  (d)  all  vacant  land  located  within  a
        special  assessing unit which is a city (i) other than such land
        in the borough of Manhattan, provided that any such vacant  land
        which  is  not  zoned  residential  must be situated immediately
        adjacent to property improved with a  residential  structure  as
        defined in subparagraphs (a) and (b) of this paragraph, be owned
        by the same owner as such immediately adjacent residential prop-
        erty  immediately prior to and since January 1, 1989, and have a
        total area not exceeding 10,000 square feet; and (ii) located in
        the borough of Manhattan north of or adjacent to the north  side
        of  110th street provided such vacant land was classified within
        this class on the assessment roll with a taxable status date  of
        January  5,  2008  and the owner of such land has entered into a
        recorded agreement with  a  governmental  entity  on  or  before
        December  31,  2008 requiring construction of housing affordable
        to persons or families of low  income  in  accordance  with  the
        provisions  of  the private housing finance law. Notwithstanding
        the foregoing, such vacant land shall be classified according to
        its use on the assessment roll with a taxable status date  imme-
        diately   following   commencement   of  construction,  provided
        further, that construction pursuant  to  an  approved  plan  for
        affordable  housing  shall  commence  no later than December 31,
        2010; and (e) all vacant land located within a special assessing
        unit which is not a city, provided that such vacant  land  which
        is  not  zoned residential must be situated immediately adjacent
        to real property defined in subparagraph (a), (b) or (c) of this
        paragraph and be owned by the same person or persons who own the
        real property defined in such subparagraph immediately prior  to
        and since January 1, 2003;
  Class  two:  [all other] residential real property HELD IN COOPERATIVE
        OR CONDOMINIUM FORM OF OWNERSHIP  which  is  not  designated  as
        class  one[,  except hotels and motels and other similar commer-
        cial property];
  Class three: utility real property  and  property  subject  to  former
        section four hundred seventy of this chapter;
  Class  four:  all other real property which is not designated as class
        one, class two, [or] class three[.], OR CLASS FIVE;
  CLASS FIVE: ALL OTHER RESIDENTIAL REAL PROPERTY WHICH  IS  NOT  DESIG-
        NATED  AS  CLASS ONE, EXCEPT HOTELS AND MOTELS AND OTHER SIMILAR
        COMMERCIAL PROPERTY, OR CLASS TWO.
  S 2. The opening paragraph of subdivision 2 of  section  1805  of  the
real property tax law, as amended by chapter 586 of the laws of 1992, is
amended to read as follows:
  The assessment roll of a special assessing unit wholly contained with-
in  a city shall identify those parcels classified in class two OR CLASS
FIVE which have fewer than eleven residential units. The assessor of any
such special assessing unit shall not increase  the  assessment  of  any
parcel  so  identified  in  any  one  year,  as measured from the actual
assessment on the previous year's assessment roll, by  more  than  eight
percent  and  shall  not  increase  such  assessment by more than thirty

S. 2993                             3

percent in any five-year period. The first such five-year  period  shall
be  measured  from the individual assessment appearing on the assessment
roll completed in nineteen hundred eighty-one  provided  that,  if  such
parcel would not have been subject to the provisions of this subdivision
in nineteen hundred eighty-one had this subdivision then been in effect,
the  first  such  five-year period shall be measured from the first year
after nineteen hundred eighty-one in which this subdivision  applied  to
such  parcel  or  would have applied to such parcel had this subdivision
been in effect in such year.
  S 3. Subdivision 6 of section 1805 of the real property  tax  law,  as
added by chapter 711 of the laws of 2005, is amended to read as follows:
  6.  Notwithstanding  any  provision  of  law  to  the contrary, in any
special assessing unit wholly contained within a  city,  beginning  with
the  assessment  roll completed in two thousand five and for each subse-
quent assessment roll, the assessor shall not increase the assessment of
any existing property classified in class two OR  CLASS  FIVE  that  has
fewer  than  eleven  residential  units, with respect to any increase in
value attributable to additions to or improvements of such property that
were not reflected on the assessment roll for a previous year,  by  more
than one-third of the amount that such assessment would increase, in the
absence  of  this  subdivision,  with  respect  to any increase in value
attributable to additions to or improvements of such property that  were
not  reflected on the assessment roll for a previous year. Notwithstand-
ing the provisions of subdivision five of this section, the remainder of
the increase in value attributable to  such  additions  or  improvements
that were not reflected on the assessment roll for a previous year shall
be  subject  to the limitations on increases provided in subdivision two
of this section. This subdivision shall not apply to the construction of
a new building or structure. This subdivision shall not apply where,  as
a  result  of such additions to or improvements of the existing property
CLASSIFIED IN CLASS FIVE, there are more than ten residential  units  in
such property.
  S 4. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
erty tax law, as added by chapter 273 of the laws of 1996, is amended to
read as follows:
  (f)  "Property"  means real property designated as class two, pursuant
to section eighteen hundred two of this chapter[, held  in  the  cooper-
ative or condominium form of ownership].
  S 5. Subdivision 7 of section 499-aaa of the real property tax law, as
added by chapter 461 of the laws of 2008, is amended to read as follows:
  7.  "Eligible  building" shall mean a class one, class two [or], class
four OR CLASS FIVE real property,  as  defined  in  subdivision  one  of
section  eighteen  hundred  two  of  this chapter, located within a city
having a population of one million or more persons. No building shall be
eligible for more than one tax abatement pursuant to this title.
  S 6. Subdivision 7 of section 499-aaaa of the real property  tax  law,
as  added  by  chapter  473  of  the laws of 2008, is amended to read as
follows:
  7. "Eligible building" shall mean a class one, class two  [or],  class
four  OR  CLASS  FIVE  real  property,  as defined in subdivision one of
section eighteen hundred two of this  chapter,  located  within  a  city
having a population of one million or more persons. No building shall be
eligible for more than one tax abatement pursuant to this title.
  S 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
read as follows:

S. 2993                             4

  (b) in a  special  assessing  unit,  the  determination,  pursuant  to
section  eighteen  hundred two of this chapter, of whether real property
is included in class one, two, three [or], four OR FIVE.
  S  8. Subdivision 10 of section 523-b of the real property tax law, as
added by chapter 593 of the laws of 1998, is amended to read as follows:
  10. On or before April first, each year the commission shall  mail  to
each  applicant,  who has filed an application for the correction of the
assessment, a notice of the commission's determination  of  such  appli-
cant's  assessment.  Such  notice shall also contain the statement as to
the final determination of the assessment review commission, or a state-
ment that the commission has not yet made  a  determination  as  to  the
final  assessed valuation which shall be made as soon as the petitioners
application is reviewed or heard. If the applicants property is a  prop-
erty  defined in subdivision one of section eighteen hundred two of this
chapter as "Class 1", the commissions determination  shall  contain  the
statement:  "If  you  are  dissatisfied  with  the  determination of the
Assessment Review Commission and you are the owner  of  a  one,  two  or
three family residential structure or residential real property not more
than  three  stories  in  height  held in condominium form of ownership,
provided that no dwelling unit therein previously was on  an  assessment
roll as a dwelling unit in other than condominium form of ownership, and
you  reside  at  such  residence,  you  may seek judicial review of your
assessment either under title one of article seven of the real  property
tax  law  or  under small claims assessment review law provided by title
one-A of article seven of the real property tax law." Such notice  shall
also  state  [that]  the last date to file petitions for judicial review
and the location where small claims assessment review petitions  may  be
obtained.
  Each  applicant that has filed an application of a property as defined
in subdivision one of section eighteen hundred two of  this  chapter  as
"Class  2",  "Class  3"  [or],  "Class  4" OR "CLASS 5", shall receive a
notice as to the final determination of the assessment review commission
or a statement that the commission has not yet made a  determination  as
to the final assessed valuation which shall be made as soon as the peti-
tioners application is reviewed or heard. Such applicants determinations
shall  contain the statement: "If you are dissatisfied with the determi-
nation of the Assessment Review Commission you may seek judicial  review
of your assessment under title one of article seven of the real property
tax  law."  Such notice shall also state the last date to file petitions
for judicial review. A final determination when rendered  shall  contain
the  same  statement.  Failure to mail any such notice or failure of the
applicant to receive the same shall  not  affect  the  validity  of  the
assessment.
  S 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
read as follows:
  (b) In a  special  assessing  unit,  the  determination,  pursuant  to
section  eighteen  hundred two of this chapter, of whether real property
is included in class one, two, three [or], four OR FIVE.
  S 10. Subparagraph 2 of paragraph (a) of subdivision 3 of section  720
of  the  real property tax law, as amended by chapter 679 of the laws of
1986, is amended to read as follows:
  (2) "Major type of property" in special assessing units,  for  assess-
ments  on  rolls completed after December thirty-first, nineteen hundred
eighty-one, shall mean classes one, two, three [and], four AND  FIVE  as

S. 2993                             5

defined in subdivision one of section eighteen hundred two of this chap-
ter.
  S  11.  Subdivisions e and f of section 11-208.1 of the administrative
code of the city of New York, subdivision e  as  amended  by  local  law
number 41 of the city of New York for the year 1986 and subdivision f as
amended  by  chapter  385  of  the  laws of 2006, are amended to read as
follows:
  e. As used in this section, the term "income-producing property" means
property owned for the purpose of securing an income from  the  property
itself,  but  shall not include property with an assessed value of forty
thousand dollars or less, or  residential  property  containing  ten  or
fewer  dwelling  units  or property classified in class one [or], two OR
FIVE as defined in  article  eighteen  of  the  real  property  tax  law
containing six or fewer dwelling units and one retail store.
  f.  Except  in  accordance  with proper judicial order or as otherwise
provided by law, it shall be unlawful for the commissioner, any  officer
or  employee  of  the  department,  the  president  or a commissioner or
employee of the tax commission, any person engaged or  retained  by  the
department  or  the  tax commission on an independent contract basis, or
any person, who, pursuant to this section, is permitted to  inspect  any
income and expense statement or to whom a copy, an abstract or a portion
of  any  such  statement  is  furnished, to divulge or make known in any
manner except as provided in this  subdivision,  the  amount  of  income
and/or  expense  or  any  particulars set forth or disclosed in any such
statement required under this section. The commissioner,  the  president
of the tax commission, or any commissioner or officer or employee of the
department or the tax commission charged with the custody of such state-
ments  shall not be required to produce any income and expense statement
or evidence of anything contained in them in any action or proceeding in
any court, except on behalf of the department  or  the  tax  commission.
Nothing  herein  shall be construed to prohibit the delivery to an owner
or his or her duly authorized representative of a certified copy of  any
statement  filed  by  such owner pursuant to this section or to prohibit
the publication of statistics so classified as to prevent the  identifi-
cation  of  particular statements and the items thereof, or making known
aggregate income and expense information disclosed with respect to prop-
erty classified as class four as defined in article eighteen of the real
property tax law without identifying information about individual  leas-
es,  or  making  known  a range as determined by the commissioner within
which the income and expenses of a property classified as class  two  OR
CLASS  FIVE falls, or the inspection by the legal representatives of the
department or of the tax commission of the statement of  any  owner  who
shall  bring  an  action to correct the assessment. Any violation of the
provisions of this subdivision shall be punished by a fine not exceeding
one thousand dollars or by imprisonment not exceeding one year, or both,
at the discretion of the court, and if the offender  be  an  officer  or
employee  of the department or the tax commission, the offender shall be
dismissed from office.
  S 12. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319  of
the  administrative  code  of the city of New York, subdivisions a, a-1,
a-2 and a-3 as amended and subdivisions a-4 and a-5 as  added  by  local
law  number 15 of the city of New York for the year 2011, are amended to
read as follows:
  a. A tax lien or tax liens on a  property  or  any  component  of  the
amount thereof may be sold by the city as authorized by subdivision b of
this section, when such tax lien or tax liens shall have remained unpaid

S. 2993                             6

in  whole or in part for one year, provided, however, that a tax lien or
tax liens on any class one property or [on] class two property [that  is
a  residential  condominium or residential cooperative], as such classes
of  property  are defined in subdivision one of section eighteen hundred
two of the real property tax law, may be sold by the city only when  the
real  property  tax  component  of such tax lien or tax liens shall have
remained unpaid in whole or in part for three years or, in the  case  of
any  class  [two] FIVE residential property owned by a company organized
pursuant to article XI of the state private housing finance law [that is
not a residential condominium or a  residential  cooperative],  as  such
class  of  property  is  defined  in subdivision one of section eighteen
hundred two of the real property tax law, for two years, and  equals  or
exceeds  the  sum  of five thousand dollars or, in the case of abandoned
class one property [or], abandoned class two property [that is  a  resi-
dential  condominium  or  residential cooperative], for eighteen months,
and after such sale, shall be transferred, in  the  manner  provided  by
this chapter, and provided, further, however, that (i) the real property
tax component of such tax lien may not be sold pursuant to this subdivi-
sion  on any residential real property in class one that is receiving an
exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
pursuant  to  section  four hundred fifty-eight of the real property tax
law with respect to real property purchased with  payments  received  as
prisoner  of  war  compensation  from  the  United States government, or
pursuant to paragraph (b) or (c) of  subdivision  two  of  section  four
hundred  fifty-eight-a  of the real property tax law, or where the owner
of such residential real property in class one is receiving benefits  in
accordance  with department of finance memorandum 05-3, or any successor
memorandum thereto, relating to active duty military personnel, or where
the owner of such residential  real  property  in  class  one  has  been
allowed  a  credit pursuant to subsection (e) of section six hundred six
of the tax law for the calendar year in which  the  date  of  the  first
publication,  pursuant  to subdivision a of section 11-320 of this chap-
ter, of the notice of sale, occurs or for the calendar year  immediately
preceding such date and (ii) the sewer rents component, sewer surcharges
component  or  water  rents  component  of such tax lien may not be sold
pursuant to this subdivision on any one family residential real property
in class one or on any two or three family residential real property  in
class one that is receiving an exemption pursuant to section 11-245.3 or
11-245.4  of this title, or pursuant to section four hundred fifty-eight
of the real property tax law with respect  to  real  property  purchased
with  payments  received as prisoner of war compensation from the United
States government, or pursuant to paragraph (b) or  (c)  of  subdivision
two  of section four hundred fifty-eight-a of the real property tax law,
or where the owner of any two or three family residential real  property
in  class  one  is  receiving  benefits in accordance with department of
finance memorandum 05-3, or any successor memorandum  thereto,  relating
to  active  duty  military  personnel,  or where the owner of any two or
three family residential real property in class one has been  allowed  a
credit  pursuant to subsection (e) of section six hundred six of the tax
law for the calendar year in which the date of  the  first  publication,
pursuant  to  subdivision  a  of  section 11-320 of this chapter, of the
notice of sale, occurs or for the calendar  year  immediately  preceding
such  date.  A  tax  lien  or  tax liens on any property classified as a
[class two property, except a class two property that is  a  residential
condominium or residential cooperative, or a class two residential prop-
erty  owned  by  a company organized pursuant to article XI of the state

S. 2993                             7

private housing finance law that is not a residential condominium  or  a
residential cooperative, or] class three property, OR A CLASS FIVE PROP-
ERTY  OWNED  BY  A COMPANY ORGANIZED PURSUANT TO ARTICLE XI OF THE STATE
PRIVATE  HOUSING  FINANCE LAW as such classes of property are defined in
subdivision one of section eighteen hundred two of the real property tax
law, shall not be sold by the city unless such tax  lien  or  tax  liens
include a real property tax component as of the date of the first publi-
cation,  pursuant to subdivision a of section 11-320 of this chapter, of
the notice of sale. Notwithstanding any provision of this subdivision to
the contrary, any such tax lien or tax liens that remain unpaid in whole
or in part after such date may be sold regardless of  whether  such  tax
lien  or  tax liens include a real property tax component. A tax lien or
tax liens on a property classified as a class  four  property,  as  such
class  of  property  is  defined  in subdivision one of section eighteen
hundred two of the real property tax law, shall not be sold by the  city
unless  such tax lien or tax liens include a real property tax component
or sewer rents component or sewer surcharges component  or  water  rents
component  or  emergency  repair charges component, where such emergency
repair charges accrued on or after January first, two thousand  six  and
are made a lien pursuant to section 27-2144 of this code, as of the date
of the first publication, pursuant to subdivision a of section 11-320 of
this  chapter,  of  the  notice of sale, provided, however, that any tax
lien or tax liens that remain unpaid in whole or in part after such date
may be sold regardless of whether such tax lien or tax liens  include  a
real  property  tax  component,  sewer rents component, sewer surcharges
component, water rents component or emergency repair charges  component.
For  purposes  of  this subdivision, the words "real property tax" shall
not include an assessment or charge upon property  imposed  pursuant  to
section  25-411  of [the administrative] THIS code. A sale of a tax lien
or tax liens shall include, in addition to such lien or liens that  have
remained unpaid in whole or in part for one year, or, in the case of any
class  one  property or class two property [that is a residential condo-
minium or residential cooperative], when the real property tax component
of such lien or liens has remained unpaid in whole or in part for  three
years,  or,  in  the  case  of any class [two] FIVE residential property
owned by a company organized pursuant to article XI of the state private
housing finance law [that is not a residential condominium or a residen-
tial cooperative], when the real property tax component of such lien  or
liens  has remained unpaid in whole or in part for two years, and equals
or exceeds the sum of five thousand  dollars,  any  taxes,  assessments,
sewer  rents,  sewer surcharges, water rents, any other charges that are
made a lien subject to the provisions of this chapter, the costs of  any
advertisements  and  notices  given  pursuant to this chapter, any other
charges that are due and payable, a surcharge pursuant to section 11-332
of this chapter, and interest and penalties thereon or such component of
the amount thereof  as  shall  be  determined  by  the  commissioner  of
finance.  The  commissioner  of  finance  may  promulgate rules defining
"abandoned" property, as such term is used in this subdivision.
  a-1. A subsequent tax lien or tax liens on a property or any component
of the amount thereof may be sold by the city pursuant to this  chapter,
provided, however, that notwithstanding any provision in this chapter to
the  contrary,  such  tax  lien  or  tax liens may be sold regardless of
whether such tax lien or tax liens have remained unpaid in whole  or  in
part  for one year and, notwithstanding any provision in this chapter to
the contrary, in the case of any class one property or class two proper-
ty [that is a residential condominium or  residential  cooperative]  or,

S. 2993                             8

beginning  January  first, two thousand twelve, in the case of any class
[two] FIVE residential property owned by a company organized pursuant to
article XI of the state private housing finance law [that is not a resi-
dential  condominium or a residential cooperative], such tax lien or tax
liens may be sold if the real property tax component of such tax lien or
tax liens has remained unpaid in whole or in  part  for  one  year,  and
provided,  further, however, that (i) the real property tax component of
such tax lien may not be sold pursuant to this subdivision on any  resi-
dential real property in class one that is receiving an exemption pursu-
ant  to  section  11-245.3  or  11-245.4  of  this title, or pursuant to
section four hundred fifty-eight of  the  real  property  tax  law  with
respect to real property purchased with payments received as prisoner of
war compensation from the United States government, or pursuant to para-
graph   (b)   or   (c)  of  subdivision  two  of  section  four  hundred
fifty-eight-a of the real property tax law, or where the owner  of  such
residential  real property in class one is receiving benefits in accord-
ance with department of finance memorandum 05-3, or any successor  memo-
randum thereto, relating to active duty military personnel, or where the
owner  of such residential real property in class one has been allowed a
credit pursuant to subsection (e) of section six hundred six of the  tax
law  for  the  calendar year in which the date of the first publication,
pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
notice  of  sale,  occurs or for the calendar year immediately preceding
such date and (ii) the sewer rents component, sewer surcharges component
or water rents component of such tax lien may not be  sold  pursuant  to
this  subdivision  on  any one family residential real property in class
one or on any two or three family residential real property in class one
that is receiving an exemption pursuant to section 11-245.3 or  11-245.4
of  this  title,  or pursuant to section four hundred fifty-eight of the
real property tax law with  respect  to  real  property  purchased  with
payments received as prisoner of war compensation from the United States
government,  or  pursuant  to paragraph (b) or (c) of subdivision two of
section four hundred fifty-eight-a of the  real  property  tax  law,  or
where  the owner of any two or three family residential real property in
class one is receiving benefits in accordance with department of finance
memorandum 05-3, or any successor memorandum thereto, relating to active
duty military personnel, or where the owner of any two or  three  family
residential  real property in class one has been allowed a credit pursu-
ant to subsection (e) of section six hundred six of the tax law for  the
calendar  year  in  which the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of  sale,
occurs  or  for  the  calendar year immediately preceding such date. For
purposes of this subdivision, the  term  "subsequent  tax  lien  or  tax
liens" shall mean any tax lien or tax liens on property that become such
on  or after the date of sale of any tax lien or tax liens on such prop-
erty that have been sold pursuant to this  chapter,  provided  that  the
prior  tax  lien  or tax liens remain unpaid as of the date of the first
publication, pursuant to subdivision a of section 11-320 of  this  chap-
ter,  of  the  notice of sale of the subsequent tax lien or tax liens. A
subsequent tax lien or tax liens on any property classified as a  [class
two  property,  except a class two property that is a residential condo-
minium or residential cooperative, or a class two  residential  property
owned by a company organized pursuant to article XI of the state private
housing  finance law that is not a residential condominium or a residen-
tial cooperative, or]class three property,  OR  A  CLASS  FIVE  PROPERTY
OWNED BY A COMPANY ORGANIZED PURSUANT TO ARTICLE XI OF THE STATE PRIVATE

S. 2993                             9

HOUSING FINANCE LAW, as such classes of property are defined in subdivi-
sion  one  of section eighteen hundred two of the real property tax law,
shall not be sold by the city unless such tax lien or tax liens  include
a  real  property tax component as of the date of the first publication,
pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
notice of sale. Notwithstanding any provision of this subdivision to the
contrary,  any such tax lien or tax liens that remain unpaid in whole or
in part after such date may be sold regardless of whether such tax  lien
or  tax  liens  include  a real property tax component. A subsequent tax
lien or tax liens on a property classified as a class four property,  as
such class of property is defined in subdivision one of section eighteen
hundred  two of the real property tax law, shall not be sold by the city
unless such tax lien or tax liens include a real property tax  component
or  sewer  rents  component or sewer surcharges component or water rents
component or emergency repair charges component,  where  such  emergency
repair  charges  accrued on or after January first, two thousand six and
are made a lien pursuant to section 27-2144 of this code, as of the date
of the first publication, pursuant to subdivision a of section 11-320 of
this chapter, of the notice of sale, provided,  however,  that  any  tax
lien or tax liens that remain unpaid in whole or in part after such date
may  be  sold regardless of whether such tax lien or tax liens include a
real property tax component, sewer  rents  component,  sewer  surcharges
component,  water rents component or emergency repair charges component.
For purposes of this subdivision, the words "real  property  tax"  shall
not  include  an  assessment or charge upon property imposed pursuant to
section 25-411 of [the administrative] THIS code. Nothing in this subdi-
vision shall be deemed to limit the rights conferred by  section  11-332
of  this chapter on the holder of a tax lien certificate with respect to
a subsequent tax lien.
  a-2. In addition to any sale authorized pursuant to subdivision  a  or
subdivision  a-1  of  this  section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two  thousand
seven,  the  water rents, sewer rents and sewer surcharges components of
any tax lien on any class of real property, as  such  real  property  is
classified  in  subdivision  one  of section eighteen hundred two of the
real property tax law, may be sold by the city pursuant to this chapter,
where such water rents, sewer rents or  sewer  surcharges  component  of
such  tax  lien,  as  of  the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of  sale:
(i) shall have remained unpaid in whole or in part for one year and (ii)
equals or exceeds the sum of one thousand dollars or, beginning on March
first, two thousand eleven, in the case of any two or three family resi-
dential  real property in class one, for one year, and equals or exceeds
the sum of two thousand dollars, or, beginning  on  January  first,  two
thousand twelve, in the case of any class [two] FIVE residential proper-
ty  owned  by  a  company  organized pursuant to article XI of the state
private housing finance law [that is not a residential condominium or  a
residential cooperative], as such class of property is defined in subdi-
vision one of section eighteen hundred two of the real property tax law,
for  two  years, and equals or exceeds the sum of five thousand dollars;
provided,  however,  that  such  water  rents,  sewer  rents  or   sewer
surcharges  component  of such tax lien may not be sold pursuant to this
subdivision on any one family residential real property in class one  or
on  any  two or three family residential real property in class one that
is receiving an exemption pursuant to section 11-245.3  or  11-245.4  of
this  title, or pursuant to section four hundred fifty-eight of the real

S. 2993                            10

property tax law with respect to real property purchased  with  payments
received  as prisoner of war compensation from the United States govern-
ment, or pursuant to paragraph (b) or (c) of subdivision two of  section
four  hundred  fifty-eight-a  of the real property tax law, or where the
owner of any two or three family residential real property in class  one
is  receiving benefits in accordance with department of finance memoran-
dum 05-3, or any successor memorandum thereto, relating to  active  duty
military  personnel, or where the owner of any two or three family resi-
dential real property in class one has been allowed a credit pursuant to
subsection (e) of section six hundred six of the tax law for the  calen-
dar  year in which the date of the first publication, pursuant to subdi-
vision a of section 11-320 of this  chapter,  of  the  notice  of  sale,
occurs  or for the calendar year immediately preceding such date.  After
such sale, any such water rents, sewer rents or sewer surcharges  compo-
nent  of such tax lien may be transferred in the manner provided by this
chapter.
  a-3. In addition to any sale authorized pursuant to subdivision  a  or
subdivision  a-1  of  this  section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two  thousand
seven, a subsequent tax lien on any class of real property, as such real
property  is  classified  in subdivision one of section eighteen hundred
two of the real property tax law, may be sold by the  city  pursuant  to
this  chapter,  regardless  of  whether such subsequent tax lien, or any
component of the amount thereof, shall have remained unpaid in whole  or
in  part  for  one  year,  and regardless of whether such subsequent tax
lien, or any component of the amount thereof, equals or exceeds the  sum
of  one thousand dollars or beginning on March first, two thousand elev-
en, in the case of any two or three family residential real property  in
class  one,  a  subsequent  tax lien on such property may be sold by the
city pursuant to this chapter, regardless of whether such subsequent tax
lien, or any component of the amount thereof, shall have remained unpaid
in whole or in part for one year, and regardless of whether such  subse-
quent  tax  lien,  or  any  component  of  the amount thereof, equals or
exceeds the sum of two thousand dollars, or, beginning on January first,
two thousand twelve, in the case of any  class  [two]  FIVE  residential
property  owned  by  a  company  organized pursuant to article XI of the
state private housing finance law [that is not a residential condominium
or a residential cooperative], as such class of property is  defined  in
subdivision one of section eighteen hundred two of the real property tax
law,  a  subsequent  tax  lien  on such property may be sold by the city
pursuant to this chapter, regardless  of  whether  such  subsequent  tax
lien, or any component of the amount thereof, shall have remained unpaid
in whole or in part for two years, and regardless of whether such subse-
quent  tax  lien,  or  any  component  of  the amount thereof, equals or
exceeds the sum of five thousand dollars; provided, however,  that  such
subsequent  tax lien may not be sold pursuant to this subdivision on any
one family residential real property in class one or on any two or three
family residential real property in  class  one  that  is  receiving  an
exemption  pursuant  to  section  11-245.3 or 11-245.4 of this title, or
pursuant to section four hundred fifty-eight of the  real  property  tax
law  with  respect  to real property purchased with payments received as
prisoner of war compensation  from  the  United  States  government,  or
pursuant  to  paragraph  (b)  or  (c) of subdivision two of section four
hundred fifty-eight-a of the real property tax law, or where  the  owner
of  any  two  or  three family residential real property in class one is
receiving benefits in accordance with department of  finance  memorandum

S. 2993                            11

05-3, or any successor memorandum thereto, relating to active duty mili-
tary  personnel,  or where the owner of any two or three family residen-
tial real property in class one has been allowed a  credit  pursuant  to
subsection  (e) of section six hundred six of the tax law for the calen-
dar year in which the date of the first publication, pursuant to  subdi-
vision  a  of  section  11-320  of  this chapter, of the notice of sale,
occurs or for the calendar year immediately preceding such date.   After
such  sale, any such subsequent tax lien, or any component of the amount
thereof, may be transferred in the manner provided by this chapter.  For
purposes  of this subdivision, the term "subsequent tax lien" shall mean
the water rents, sewer rents or sewer surcharges component  of  any  tax
lien  on  property that becomes such on or after the date of sale of any
water rents, sewer rents or sewer surcharges component of any  tax  lien
on  such  property that has been sold pursuant to this chapter, provided
that the prior tax lien remains unpaid as  of  the  date  of  the  first
publication,  pursuant  to subdivision a of section 11-320 of this chap-
ter, of the notice of sale of the subsequent tax lien. Nothing  in  this
subdivision  shall  be  deemed  to limit the rights conferred by section
11-332 of this chapter on the holder of  a  tax  lien  certificate  with
respect to a subsequent tax lien.
  a-4.  In  addition  to  any sale authorized pursuant to subdivision a,
a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
this  chapter  to  the  contrary, beginning on March first, two thousand
eleven, the emergency repair charges component or  alternative  enforce-
ment  expenses  and  fees component, where such emergency repair charges
accrued on or after January first, two thousand six and are made a  lien
pursuant  to  section  27-2144  of  this code, or where such alternative
enforcement expenses and fees  are  made  a  lien  pursuant  to  section
27-2153  of this code, of any tax lien on any class of real property, as
such real property is defined in subdivision  one  of  section  eighteen
hundred two of the real property tax law, may be sold by the city pursu-
ant  to  this  chapter, where such emergency repair charges component or
alternative enforcement expenses and fees component of such tax lien, as
of the date of the first  publication,  pursuant  to  subdivision  a  of
section  11-320  of  this chapter, of the notice of sale: (i) shall have
remained unpaid in whole or in part for one year,  and  (ii)  equals  or
exceeds  the sum of one thousand dollars or, beginning on January first,
two thousand twelve, in the case of any  class  [two]  FIVE  residential
property  owned  by  a  company  organized pursuant to article XI of the
state private housing finance law [that is not a residential condominium
or a residential cooperative], as such class of property is  defined  in
subdivision one of section eighteen hundred two of the real property tax
law,  for  two  years,  and  equals  or exceeds the sum of five thousand
dollars; provided, however, that such emergency repair charges component
or alternative enforcement expenses and fees component of such tax  lien
may  not  be  sold pursuant to this subdivision on any one, two or three
family residential real property in class one,  except  a  three  family
residential  property in class one where such property is subject to the
provisions of section 27-2153 of this code and is not the primary  resi-
dence  of the owner.  After such sale, any such emergency repair charges
component or alternative enforcement expenses and fees component of such
tax lien may be transferred in the manner provided by this chapter.
  a-5. In addition to any sale authorized  pursuant  to  subdivision  a,
a-1,  a-2  or  a-3  of this section and notwithstanding any provision of
this chapter to the contrary, beginning on  March  first,  two  thousand
eleven,  a  subsequent tax lien on any class of real property, or begin-

S. 2993                            12

ning on January first, two thousand twelve in  the  case  of  any  class
[two] FIVE residential property owned by a company organized pursuant to
article XI of the state private housing finance law [that is not a resi-
dential condominium or a residential cooperative], a subsequent tax lien
on  such  property,  may  be  sold by the city pursuant to this chapter,
regardless of the length of time such subsequent tax lien, or any compo-
nent of the amount thereof, shall have remained unpaid,  and  regardless
of  the  amount  of  such subsequent tax lien. After such sale, any such
subsequent tax lien, or any component of  the  amount  thereof,  may  be
transferred in the manner provided by this chapter. For purposes of this
subdivision,  the  term  "subsequent  tax lien" shall mean the emergency
repair charges component or alternative enforcement  expenses  and  fees
component, where such emergency repair charges accrued on or after Janu-
ary  first,  two  thousand  six  and are made a lien pursuant to section
27-2144 of this code, or where such alternative enforcement expenses and
fees are made a lien pursuant to section 27-2153 of this  code,  of  any
tax  lien  on property that becomes such on or after the date of sale of
any  emergency  repair  charges  component  or  alternative  enforcement
expenses  and  fees component, of any tax lien on such property that has
been sold pursuant to this chapter, provided that  the  prior  tax  lien
remains  unpaid  as  of  the  date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice  of  sale
of  the subsequent tax lien. Nothing in this subdivision shall be deemed
to limit the rights conferred by section 11-332 of this chapter  on  the
holder of a tax lien certificate with respect to a subsequent tax lien.
  S  13.  Subparagraph  (i) of paragraph 2 of subdivision b and subpara-
graph (ii) of paragraph 1 of subdivision h  of  section  11-320  of  the
administrative  code  of  the  city  of  New York, as added by local law
number 15 of the city of New York for the year 2011, are amended to read
as follows:
  (i) Such notices shall also include,  with  respect  to  any  property
owner  in  class  one  [or], class two OR CLASS FIVE, as such classes of
property are defined in subdivision one of section eighteen hundred  two
of the real property tax law, an exemption eligibility checklist. Within
ten business days of receipt of a completed exemption eligibility check-
list  from  such property owner, provided that such receipt occurs prior
to the date of sale of any tax lien or tax liens on his or her property,
the department of finance shall  review  such  checklist  to  determine,
based  on  the  information provided by the property owner, whether such
property owner could be eligible for  any  exemption,  credit  or  other
benefit that would entitle them to be excluded from a tax lien sale and,
if  the department determines that such property owner could be eligible
for any such exemption, credit or other benefit, shall mail such proper-
ty owner an application for the appropriate exemption, credit  or  other
benefit.  If,  within  twenty  business  days of the date the department
mailed such application, the department has  not  received  a  completed
application  from  such  property  owner, the department shall mail such
property owner a second application, and shall  telephone  the  property
owner, if the property owner has included his or her telephone number on
the exemption eligibility checklist.
  (ii)  all  class  [two]  FIVE  residential property owned by a company
organized pursuant to article XI of the state  private  housing  finance
law [that is not a residential condominium or a residential cooperative]
on  which  any  tax lien has been sold pursuant to subdivision a, a-2 or
a-4 of section 11-319 of this title.

S. 2993                            13

  S 14. Subdivision (a) of section 11-354 of the administrative code  of
the  city  of New York, as amended by local law number 37 of the city of
New York for the year 1996, is amended to read as follows:
  (a) Notwithstanding any other provision of law and notwithstanding any
omission  to  hold  a tax lien sale, whenever any tax, assessment, sewer
rent, sewer surcharge, water rent,  any  charge  that  is  made  a  lien
subject to the provisions of this chapter or chapter four of this title,
or  interest and penalties thereon, has been due and unpaid for a period
of at least one year from the date on which the tax, assessment or other
legal charge represented thereby became a lien, or in the  case  of  any
class  one  property  or  any  class two property [that is a residential
condominium or residential cooperative], as such classes of property are
defined in subdivision one of section eighteen hundred two of  the  real
property  tax  law,  or  in  the case of a CLASS FIVE PROPERTY THAT IS A
multiple dwelling owned by a company organized pursuant to article XI of
the private housing finance law with the consent  and  approval  of  the
department  of  housing preservation and development, for a period of at
least three years from the date on which the tax,  assessment  or  other
legal  charge became a lien, the city, as owner of a tax lien, may main-
tain an action in the supreme court to foreclose such lien. Such  action
shall  be governed by the procedures set forth in section 11-335 of this
chapter; provided, however, that such parcel shall only be sold  to  the
highest  responsible bidder. Such purchaser shall be deemed qualified as
a responsible bidder pursuant to such criteria  as  are  established  in
rules promulgated by the commissioner of finance after consultation with
the commissioner of housing preservation and development.
  S  15.  Subdivision  3  and  the opening paragraph of subdivision 4 of
section 11-401 of the administrative code of the city of  New  York,  as
added  by local law number 37 of the city of New York for the year 1996,
are amended to read as follows:
  3. "Class." Any class of real property defined in subdivision  one  of
section  eighteen  hundred  two  of  the  real property tax law, and any
subclassification of class two OR CLASS FIVE real  property  where  such
subclassification  is established by rule of the commissioner of finance
promulgated pursuant to this subdivision.
  Any parcel of class one [or], class two OR CLASS  FIVE  real  property
that  is  subject  to  a tax lien or liens with a lien or liens to value
ratio, as determined by the commissioner of finance, equal to or greater
than fifteen percent and that meets one of the following two criteria:
  S 16. Subdivisions a and b of section 11-401.1 of  the  administrative
code  of  the  city  of New York, as added by local law number 37 of the
city of New York for the year 1996, are amended to read as follows:
  a. The commissioner of finance shall, not less than sixty days preced-
ing the date of the sale of a tax lien  or  tax  liens,  submit  to  the
commissioner  of  housing  preservation and development a description by
block and lot, or by such other identification as  the  commissioner  of
finance  may  deem  appropriate, of any parcel of class one or class two
real property on which there is a tax lien that may be foreclosed by the
city. The commissioner of housing  preservation  and  development  shall
determine,  and  direct  the  commissioner of finance, not less than ten
days preceding the date of the sale of a tax lien or tax liens,  whether
any  such parcel is a distressed property as defined in subdivision four
of section 11-401 of this chapter. Any tax lien on a  parcel  so  deter-
mined to be a distressed property shall not be included in such sale. In
connection  with  a  subsequent  sale  of  a  tax lien or tax liens, the
commissioner of finance may, not less than sixty days preceding the date

S. 2993                            14

of the sale, resubmit to the commissioner of  housing  preservation  and
development a description by block and lot, or by such other identifica-
tion  as the commissioner of finance may deem appropriate, of any parcel
of class one [or], class two OR CLASS FIVE real property that was previ-
ously  determined to be a distressed property pursuant to this paragraph
and on which there is a tax lien that may be included in such sale.  The
commissioner  of  housing  preservation and development shall determine,
and direct the commissioner of finance, not less than ten days preceding
the date of the sale, whether such parcel remains a distressed property.
If the commissioner of housing preservation and  development  determines
that  the  parcel is not a distressed property, then the tax lien on the
parcel may be included in the sale.
  b. The commissioner of housing preservation and development may  peri-
odically  review  whether a parcel of class one [or], class two OR CLASS
FIVE real property that is subject to subdivision c of this  section  or
subdivision  j  of section 11-412.1 of this chapter remains a distressed
property. If the commissioner  determines  that  the  parcel  is  not  a
distressed  property as defined in subdivision four of section 11-401 of
this chapter, then the parcel shall not be subject to such subdivisions.
  S 17. Subdivision b of section 11-404 of the  administrative  code  of
the  city  of New York, as amended by local law number 37 of the city of
New York for the year 1996, is amended to read as follows:
  b. A tax lien on any class one property  or  any  class  two  property
[that  is a residential condominium or residential cooperative], as such
classes of property are defined in subdivision one of  section  eighteen
hundred two of the real property tax law, and on any CLASS FIVE PROPERTY
THAT  IS  A  multiple  dwelling owned by a company organized pursuant to
article XI of the private housing  finance  law  with  the  consent  and
approval  of  the  department  of  housing preservation and development,
shall not be foreclosed in the manner provided  in  this  chapter  until
such  tax  lien  has  been due and unpaid for a period of at least three
years from the date on which the tax, assessment or other  legal  charge
represented thereby became a lien.
  S  18.  Paragraph 5 of subdivision c of section 11-405 of the adminis-
trative code of the city of New York, as added by local law number 37 of
the city of New York for the year 1996, is amended to read as follows:
  (5) Notwithstanding paragraph one, two or three of  this  subdivision,
with  respect to installment agreements duly made, executed and filed on
or after the date on which this paragraph takes effect, the commissioner
of finance may also exclude or thereafter  remove  from  such  list  any
parcel  of  class one [or], class two OR CLASS FIVE real property, other
than a parcel described in paragraph four of  this  subdivision,  as  to
which  an  agreement  has  been  duly made, executed and filed with such
commissioner for the payment of the  delinquent  taxes,  assessments  or
other legal charges, and the interest and penalties thereon, in install-
ments.  The  first  installment thereof shall be paid upon the filing of
the installment agreement with the  commissioner  and  shall  be  in  an
amount  equal  to  not  less than fifteen percent of the total amount of
such delinquent taxes, assessments or other legal charges and the inter-
est and penalties thereon. The remaining installments,  which  shall  be
twice  the  number of unpaid quarters of real estate taxes or the equiv-
alent thereof, but which shall in no event exceed thirty-two in  number,
shall  be  payable quarterly on the first days of July, October, January
and April. For the purposes of calculating the number of such  remaining
installments, unpaid real estate taxes that are due and payable on other

S. 2993                            15

than  a  quarterly  basis  shall  be deemed to be payable on a quarterly
basis.
  S  19.  Subparagraph  (iii) of paragraph 3 of subdivision i of section
11-409 of the administrative code of the city of New York, as  added  by
local  law  number  37  of  the  city  of New York for the year 1996, is
amended to read as follows:
  (iii) With respect to any parcel of class one [or], class two OR CLASS
FIVE real property, other than a parcel described in subparagraph (i) or
(ii) of this paragraph, such agreement shall provide for the payment  in
installments of the delinquent taxes, assessments and other legal charg-
es, and the interest and penalties thereon, due and owing as of the date
on  which  such  agreement  is  requested. The first installment thereof
shall be paid upon the filing of  the  installment  agreement  with  the
commissioner  of finance and shall be in an amount at least equal to, at
the applicant's election, either thirty-five percent or fifty percent of
the total amount of such delinquent taxes, assessments  or  other  legal
charges  and  the interest and penalties thereon. The remaining install-
ments, which shall be twice the number of unpaid quarters of real estate
taxes or the equivalent thereof, but which  shall  in  no  event  exceed
twenty  in number, shall be payable quarterly on the first days of July,
October, January and April, together with interest at the rate or  rates
determined  as  provided in subparagraph (iv) of this paragraph. For the
purposes of calculating  the  number  of  such  remaining  installments,
unpaid  real estate taxes that are due and payable on other than a quar-
terly basis shall be deemed to be payable on a quarterly basis.
  S 20. The section heading of section 11-412.1  of  the  administrative
code  of  the  city  of New York, as added by local law number 37 of the
city of New York for the year 1996, is amended to read as follows:
  Special procedures relating to final judgment and release of class one
[and], class two OR CLASS FIVE real property.
  S 21. Paragraph 1 of subdivision b, subdivisions c and d, paragraphs 1
and 4 of subdivision e, and subdivisions f, g, h, i  and  j  of  section
11-412.1 of the administrative code of the city of New York, as added by
local  law  number  37  of  the  city of New York for the year 1996, are
amended to read as follows:
  (1) The court shall make a final judgment  authorizing  the  award  of
possession of any parcel of class one [or], class two OR CLASS FIVE real
property described in the list of delinquent taxes not redeemed or with-
drawn  as  provided  in this chapter and as to which no answer is inter-
posed as provided herein, and authorizing the commissioner of finance to
prepare, execute and cause to be recorded a deed conveying either to the
city or to a third party deemed qualified and designated by the  commis-
sioner  of  housing preservation and development full and complete title
to such lands. Any such conveyance to a third  party  shall  be  for  an
existing use.
  c.  Following  the  expiration  of the four-month period prescribed in
subdivision d of this section, but not more than eight months after  the
date  on  which,  pursuant  to  subdivision b of this section, the final
judgment authorizing the award of possession of a parcel  of  class  one
[or], class two OR CLASS FIVE real property was entered, the commission-
er  of  finance  may  execute  a deed, pursuant to subdivision b of this
section, with respect to such parcel. The owner  of  said  parcel  shall
continue  to  have  all  of  the  rights, liabilities, responsibilities,
duties and obligations of an owner of such parcel,  including,  but  not
limited to, maintaining such parcel in compliance with the housing main-
tenance,  building and fire codes, and all other applicable laws, unless

S. 2993                            16

and until the commissioner of finance has prepared and executed  a  deed
conveying  to  the  city  or to a third party full and complete title to
such parcel. Upon the execution of such deed,  the  city  or  the  third
party  shall  be seized of an estate in fee simple absolute in such land
and all persons, including the state of New York, infants, incompetents,
absentees and non-residents who may have had any right, title, interest,
claim, lien or equity of redemption in  or  upon  such  lands  shall  be
barred and forever foreclosed of all such right, title, interest, claim,
lien  or  equity of redemption, except as otherwise provided in subdivi-
sions e and f of this section. The appointment and tenure of  receivers,
trustees  or  any  other persons, including administrators under article
seven-A of the real property actions and proceedings law,  appointed  by
an  order of a court to manage real property, shall terminate when title
to such property vests in the city or a  third  party  pursuant  to  the
provisions  of  this  chapter.  After  such termination, said receivers,
trustees or administrators shall  be  accountable  to  the  courts  that
appointed  them  for  the  faithful performance of their fiduciary obli-
gations during the term of their appointment and to  the  city  or  such
third  party  for  any  rents and income received by them for any period
subsequent to the date of the vesting of title in the city or such third
party.
  If the city serves a tenant in possession  of  a  dwelling  unit  with
notice  of  termination  of  tenancy on grounds other than nonpayment of
rent, the acceptance of rent for the first forty-five days after  termi-
nation  of  tenancy  by  anyone other than an employee of the department
designated by the department to receive such rent shall not be deemed or
construed as a waiver of the city's right to initiate  and  prosecute  a
proceeding to terminate the tenancy for good cause.
  d. Within four months after the date on which, pursuant to subdivision
b  of  this  section,  the  final  judgment  authorizing  the  award  of
possession of a parcel of class one [or], class two OR CLASS  FIVE  real
property  was  entered,  any person claiming to have an interest in such
parcel shall have the right to make a payment  to  the  commissioner  of
finance  consisting  of  all  taxes, assessments and other legal charges
owing on said parcel, the lawful interest thereon to the date of payment
and a penalty of five percent of said payment of taxes, assessments  and
other legal charges and interest, which penalty may not exceed one thou-
sand dollars. Such payment shall be made in cash or by certified or bank
check.  Within  such  four-month period, such interested person may also
request an installment agreement from the commissioner of finance.  Such
agreement  shall  require,  in  addition  to full payment of the penalty
specified in this subdivision at the  time  such  agreement  is  entered
into,  the  payment  at  such time of a first installment equal to fifty
percent of all taxes, assessments  and  other  legal  charges,  and  the
lawful  interest  thereon, then owing on such parcel, and the payment of
the balance of such taxes,  assessments  and  other  legal  charges  and
interest  in four equal quarterly installments together with all current
taxes, assessments and other legal charges that accrue during such peri-
od. Upon receipt of payment in full of the amount specified in the first
sentence of this subdivision, the commissioner of finance  shall  direct
the  corporation  counsel  to  prepare  and cause to be entered an order
discontinuing the in rem tax foreclosure action  as  to  said  property,
cancelling the notice of pendency of such action as to said property and
vacating  and setting aside the final judgment. Upon the execution of an
installment agreement and payment of the amounts due at  the  time  such
agreement  is executed as provided in this subdivision, the commissioner

S. 2993                            17

of finance shall direct the corporation counsel to prepare and cause  to
be  entered  an order vacating and setting aside the final judgment. The
entry of either such order shall restore all parties, including  owners,
mortgagees  and  any  and  all lienors, receivers and administrators and
encumbrancers, to the status they held  immediately  before  such  final
judgment  was  entered.    Where the commissioner of finance approves an
application requesting an installment agreement pursuant to this  subdi-
vision,  the  order  vacating and setting aside the final judgment shall
provide that in the event of any default as to  the  payment  of  either
quarterly  installments  or  current  taxes,  assessments or other legal
charges during the term of  such  agreement,  all  payments  under  said
agreement  shall  be  forfeited and the corporation counsel, immediately
upon notification by the commissioner of finance of such default,  shall
cause to be entered as to such property a supplemental judgment of fore-
closure  in  the  in  rem  action  which  authorizes the commissioner of
finance to prepare, execute and cause to be recorded  a  deed  conveying
either  to  the city or to a third party full and complete title to such
lands. Upon the entry of such supplemental judgment, the  provisions  of
subdivisions  c through i of this section shall apply in the same manner
as such subdivisions would have applied had no  payment  been  made  nor
installment agreement executed during the four-month period specified in
this subdivision.
  1. If the commissioner of finance has prepared, executed and caused to
be  recorded  a  deed conveying to the city full and complete title to a
parcel of class one [or], class two OR CLASS FIVE real property acquired
by in rem tax foreclosure, the city's interest in  such  parcel  may  be
released  pursuant  to  this subdivision on the application of any party
who has an interest in said parcel as either owner,  mortgagee,  lienor,
or encumbrancer at the time of the city's acquisition thereof where such
application  is  made  at any time up to sixteen months from the date on
which the deed by which the city  acquired  title  to  said  parcel  was
recorded.
  4. The provisions contained in subdivision g of section 11-424 of this
chapter shall govern such an application, except as follows:
  (a)  where  such  provisions  are  inconsistent  with  the  provisions
contained in this subdivision, the provisions contained in this subdivi-
sion shall govern such application; and
  (b) where the in  rem  foreclosure  release  board  denies  a  written
request  for  an installment agreement that was filed in connection with
an application for release of the city's interest in a parcel  of  class
one [or], class two OR CLASS FIVE real property and such application was
filed  within  thirty  days of the date of the city's acquisition of the
property sought to be  released,  the  board  may,  in  its  discretion,
authorize  a release of the city's interest, provided that the applicant
thereafter pays all the amounts required to be paid pursuant to subdivi-
sion d of section 11-424 of this chapter within thirty days of the  date
on which a letter requesting such payment is mailed or delivered to such
applicant.
  f. If the commissioner of finance has prepared, executed and caused to
be  recorded  a  deed conveying to the city full and complete title to a
parcel of class one [or], class two OR CLASS FIVE real property acquired
by in rem tax foreclosure and such parcel is entitled  to  an  exemption
under any of the provisions of article four of the real property tax law
during all or part of the period covered by the tax items appearing on a
list  of  delinquent  taxes,  the  owner  of such parcel may apply for a
release of the  city's  interest  in  such  exempt  property  under  the

S. 2993                            18

provisions  of  subdivision  e of this section during the period of time
set forth in paragraph one of such subdivision  and  for  an  additional
period up to ten years from the date on which the deed by which the city
acquired  title  to  said property was recorded. The application of such
owner shall be accompanied by the nonrefundable fee  required  by  para-
graph  four of subdivision b of section 11-424 of this chapter and shall
contain, in addition to the statements, searches and proofs required  by
subdivision  e  of this section, a statement that an exemption under the
real property tax law is being  claimed.  Such  application  shall  also
state  either  that  it is accompanied by the written certificate of the
comptroller setting forth the precise period during which said property,
while owned by such application, and during the period after the  city's
acquisition up to the date of the certificate if said property was still
being used for an exempt purpose after said acquisition, was entitled to
an  exemption  and the exact nature and extent of such exemption or that
an application for such written certificate  has  been  filed  with  the
comptroller.  On issuing such written certificate, the comptroller shall
cancel those tax items which have accrued during the period  covered  by
the  certificate to the extent the applicant is entitled to an exemption
as set forth in the certificate. A release of the city's interest may be
authorized only at the discretion of  the  in  rem  foreclosure  release
board and, except as otherwise provided in paragraph four of subdivision
e of this section, subject to all the restrictions set forth in subdivi-
sion  g of section 11-424 of this chapter. A release to an exempt appli-
cant shall be effected only after said applicant has  paid  all  of  the
amounts  required  to be paid by subdivision d of section 11-424 of this
chapter, except for those tax items which have been canceled,  in  whole
or  in  part,  pursuant  to the comptroller's certificate, within thirty
days of the date on which the letter requesting  payment  is  mailed  or
delivered to the applicant.
  g. If the commissioner of finance has prepared, executed and caused to
be  recorded  a  deed conveying to the city or to a third party full and
complete title to a parcel of class one [or], class two  OR  CLASS  FIVE
real  property  acquired  by  in  rem  tax  foreclosure,  the provisions
contained in subdivisions f and i of section 11-424 of this chapter  for
the  release  of  property  so  acquired  shall not be available. If the
commissioner of finance has prepared, executed and caused to be recorded
a deed conveying to a third party full and complete title to a parcel of
class one or class two real property acquired by in rem tax foreclosure,
the provisions contained in subdivisions e and f of this section for the
release of property so acquired shall not be available.
  h. Every deed given pursuant to the provisions of this  section  shall
be  presumptive evidence that the action and all proceedings therein and
all proceedings prior thereto from and including the assessment  of  the
lands  affected  and  all  notices  required  by law were regular and in
accordance with all provisions  of  law  relating  thereto.  After  four
months  from  the  date  of  entry of the final judgment authorizing the
award of possession of any parcel of class one [or], class two OR  CLASS
FIVE  real  property  pursuant  to  the  provisions of this section, the
presumption shall be conclusive. No action to set aside such deed may be
maintained unless the action is commenced and a notice  of  pendency  of
the  action is filed in the office of the property county clerk prior to
the time that the presumption becomes conclusive  as  aforesaid.  Should
any  lawsuit or proceeding be commenced to set aside a deed conveying to
a third party a parcel of class one [or], class two OR CLASS  FIVE  real
property  pursuant  to  the provisions of this section, such third party

S. 2993                            19

shall send to the corporation counsel within ten days of their receipt a
copy of any papers served  on  such  third  party  in  such  lawsuit  or
proceeding.
  i. If the commissioner of finance does not execute a deed conveying to
the  city  or  to a third party a parcel of class one [or], class two OR
CLASS FIVE real property within eight months after the  entry  of  final
judgment  authorizing the award of possession of such parcel pursuant to
subdivision b of this section, the commissioner of finance shall  direct
the  corporation  counsel  to  prepare  and cause to be entered an order
discontinuing the in rem foreclosure action as to said property, cancel-
ing the notice of pendency of such action as to said property and vacat-
ing and setting aside said final judgment. The entry of such order shall
restore all parties,  including  owners,  mortgagees  and  any  and  all
lienors,  receivers  and administrators and encumbrancers, to the status
they held immediately before such final judgment was entered.
  j. If the commissioner of finance  directs  the  corporation  counsel,
pursuant  to  subdivision  i of this section, to prepare and cause to be
entered an order  discontinuing  the  in  rem  foreclosure  action  with
respect  to  a  parcel  of  class one [or], class two OR CLASS FIVE real
property determined to be distressed pursuant  to  section  11-401.1  of
this  chapter,  the commissioner of housing preservation and development
shall evaluate the parcel determined to  be  distressed  and  take  such
action  as  he  or she deems appropriate under the programs, existing at
the time of such evaluation, that are designed to encourage the rehabil-
itation and preservation of existing housing, and shall monitor or cause
to be monitored the status of the property. The commissioner of  housing
preservation  and  development  shall  maintain a register of properties
determined to be distressed.
  S 22. Section 11-412.2 of the administrative code of the city  of  New
York,  as  added  by local law number 37 of the city of New York for the
year 1996, is amended to read as follows:
  S 11-412.2 Council review of conveyance to a third party. The  commis-
sioner of finance shall, prior to the execution of a deed conveying full
and  complete  title of any parcel of class one [or], class two OR CLASS
FIVE real property to a third party pursuant to subdivision c of section
11-412.1 of this chapter, notify the council of the proposed conveyance.
Within forty-five days of such notification,  the  council  may  act  by
local law disapproving the proposed conveyance. In the event the council
does not act by local law within such forty-five day period, the council
shall  be  deemed  to have approved the proposed conveyance. During such
forty-five day period or, if the city council acts by local law pursuant
to this section, during the period of time from the notification of  the
council  to  the  presentation to the mayor of such local law and during
any additional period of time prescribed in section 37 of  the  charter,
the  eight-month  period  provided  in  subdivisions  c and i of section
11-412.1 of this chapter shall be tolled.
  S 23. Paragraph 1 of subdivision a of section 163 of the New York city
charter, as amended by local law number 77 of the city of New  York  for
the year 1984, is amended to read as follows:
  1.  "Class  designation"  shall  mean  the  determination, pursuant to
section eighteen hundred two of the real property tax  law,  of  whether
real property is included in class one, two, three [or], four OR FIVE.
  S  24.  Paragraph  1 of subdivision a of section 164-b of the New York
city charter, as added by local law number 11 of the city  of  New  York
for the year 1984, is amended to read as follows:

S. 2993                            20

  1. "Class designation" shall mean the determination, pursuant to arti-
cle  eighteen  of the real property tax law, of whether real property is
included in class one, two, three [or], four OR FIVE.
  S 25. This act shall take effect on the first of January next succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
assessment rolls prepared pursuant to a taxable status date occurring on
or after such date; provided, however, that effective  immediately,  the
addition,  amendment  and/or  repeal of any rule or regulation necessary
for the implementation of this act on its effective date are  authorized
and directed to be made and completed on or before such effective date.

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