senate Bill S6525A

2013-2014 Legislative Session

Relates to the village of Mastic Beach entering into contracts to sell delinquent tax liens

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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
Mar 19, 2014 amended on third reading 6525a
Mar 06, 2014 advanced to third reading
Mar 05, 2014 2nd report cal.
Mar 04, 2014 1st report cal.228
Feb 03, 2014 referred to local government

Bill Amendments

Original
A (Active)
Original
A (Active)

S6525 - Bill Details

Current Committee:
Law Section:
Real Property

S6525 - Bill Texts

view summary

Relates to the village of Mastic Beach entering into contracts to sell delinquent tax liens.

view sponsor memo
BILL NUMBER:S6525

TITLE OF BILL: An act to authorize the village of Mastic Beach to
enter into a contract to sell or pledge as collateral for a loan some
or all of the delinquent liens held by such city to a private party or
engage a private party to collect some or all of the delinquent tax
liens held by it; and providing for the repeal of such provisions upon
expiration thereof

PURPOSE OR GENERAL IDEA OF BILL: To expand the options available to
the village of Mastic Beach to efficiently and effectively manage the
collection of delinquent property taxes and to increase revenues to
the village.

SUMMARY OF SPECIFIC PROVISIONS:

Section One and Two permits the village of Mastic Beach, under
enumerated circumstances, to enter into a contract to sell some or all
of their delinquent tax liens to a private party and for the village
of Mastic Beach to enter into a contract to collect some or all of the
delinquent tax liens held by such village to a private party. Provides
"consumer protections" for affected property owners, including a
requirement for thirty days notification, assurance that the existing
redemption periods and interest rates remain unchanged, and imposition
of the procedural requirements relating to foreclosure of a mortgage
or tax lien sale by the Municipal Bond Bank Agency.

Section Three is the effective date.

EXISTING LAW: Any village incorporated after 1993 must request
enacting legislation to enable the sale of delinquent tax liens to
private parties.

JUSTIFICATION: This legislation was introduced at the request of the
village of Mastic Beach. Similar legislation has been enacted for
other municipalities, see Chapter 510 of the Laws of 2013 and S.6247
of 2014. The village of Mastic Beach has accumulated numerous liens
and has decided that it is in their best interest to sell some of
their tax liens to a private party.

PRIOR LEGISLATIVE H TORY: New bill.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  6525

                            I N  S E N A T E

                            February 3, 2014
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to authorize the village of Mastic Beach to enter into a contract
  to sell or pledge as collateral for a loan some or all of  the  delin-
  quent  liens  held by such city to a private party or engage a private
  party to collect some or all of the delinquent tax liens held  by  it;
  and providing for the repeal of such provisions upon expiration there-
  of

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

  Section 1. Notwithstanding any provision of any  general,  special  or
local  law to the contrary, the village of Mastic Beach may enter into a
contract to sell some or all of the delinquent tax liens held by it to a
private party, subject to the following conditions:
  (a) The consideration to be paid for a  sale  of  the  delinquent  tax
liens  held  by  it  may be more or less than the face amount of the tax
liens sold.
  (b) Property owners shall be given at least 30 days advance notice  of
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 not in
any way affect the validity of any sale of a tax lien or  tax  liens  or
the  validity  of  the  taxes or interest prescribed by law with respect
thereto.
  (c) The village of Mastic Beach shall set the terms and conditions  of
the contract of sale or loan.
  (d)  The  tax lien purchaser must 30 days prior to the commencement of
any foreclosure action provide to the village of Mastic Beach a list  of
liens  to  be  foreclosed.  The village of Mastic Beach 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 plus any  accrued  interest  and  collection
fees  incurred by the tax lien purchaser through the date of repurchase.
The tax lien purchaser shall provide the foreclosure list to the village

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13397-04-4

S. 6525                             2

of Mastic Beach, along with the  applicable  repurchase  price  of  each
lien,  by  certified mail, and the village of Mastic Beach 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 of Mastic Beach 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 of  Mastic
Beach  shall fail to repurchase the lien or liens the tax lien purchaser
shall have the right to commence a foreclosure action  immediately  upon
notice from the village of Mastic Beach of its refusal or at the expira-
tion of the 30 day review period whichever occurs first.
  (e)  The  sale of a tax lien pursuant to this act shall not operate to
shorten the otherwise applicable redemption period or change the  other-
wise applicable interest rate.
  (f)  Upon  the  expiration of the redemption period prescribed by law,
the purchaser of a delinquent tax lien, or its  successors  or  assigns,
may  foreclose  the  lien  as  in  an  action to foreclose a mortgage as
provided in section 1194 of the real property tax law. The procedure  in
such  action shall be the procedure 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 property, shall include reasonable and necessary collection costs,
attorneys' fees, legal costs, allowances, and disbursements.
  (g) 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 act.
  S 2. Notwithstanding any provision of any general,  special  or  local
law  to  the  contrary,  the  village  of  Mastic Beach may enter into a
contract to pledge as collateral for a loan some or all  of  the  delin-
quent  tax  liens held by it to a third party or engage a third party to
collect some or all of the delinquent tax liens held by  it  subject  to
the following conditions:
  (a)  Any  loan provided under this section shall bear an interest rate
to be determined by the village of Mastic Beach.
  (b) Any contract for the collection of delinquent tax  liens  the  fee
paid  by  the  village  of  Mastic  Beach  shall  not  exceed 10% of the
outstanding balance of the tax lien being collected and said  fee  shall
be borne by the delinquent taxpayer.
  S  3. This act shall take effect immediately and shall expire December
31, 2018 when upon such date the provisions of this act shall be  deemed
repealed.

S6525A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Real Property

S6525A (ACTIVE) - Bill Texts

view summary

Relates to the village of Mastic Beach entering into contracts to sell delinquent tax liens.

view sponsor memo
BILL NUMBER:S6525A

TITLE OF BILL: An act to authorize the village of Mastic Beach to
enter into a contract to sell or pledge as collateral for a loan some
or all of the delinquent liens held by such city to a private party or
engage a private party to collect some or all of the delinquent tax
liens held by it; and providing for the repeal of such provisions upon
expiration thereof

PURPOSE OR GENERAL IDEA OF BILL: To expand the options available to
the village of Mastic Beach to efficiently and effectively manage the
collection of delinquent property taxes and to increase revenues to
the village.

SUMMARY OF SPECIFIC PROVISIONS:

Section One and Two permits the village of Mastic Beach, under
enumerated circumstances, to enter into a contract to sell some or all
of their delinquent tax liens to a private party and for the village
of Mastic Beach to enter into a contract to collect some or all of the
delinquent tax liens held by such village to a private party. Provides
"consumer protections" for affected property owners, including a
requirement for thirty days notification, assurance that the existing
redemption periods and interest rates remain unchanged, and imposition
of the procedural requirements relating to foreclosure of a mortgage
or tax lien sale by the Municipal Bond Bank Agency.

Section Three is the effective date.

EXISTING LAW: Any village incorporated after 1993 must request
enacting legislation to enable the sale of delinquent tax liens to
private parties.

JUSTIFICATION: This legislation was introduced at the request of the
village of Mastic Beach. Similar legislation has been enacted for
other municipalities, see Chapter 510 of the Laws of 2013 and S.6247
of 2014. The village of Mastic Beach has accumulated numerous liens
and has decided that it is in their best interest to sell some of
their tax liens to a private party.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6525--A
    Cal. No. 228

                            I N  S E N A T E

                            February 3, 2014
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  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 authorize the village of Mastic Beach to enter into a contract
  to  sell  or pledge as collateral for a loan some or all of the delin-
  quent liens held by such city to a private party or engage  a  private
  party  to  collect some or all of the delinquent tax liens held by it;
  and providing for the repeal of such provisions upon expiration there-
  of

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

  Section  1.  Notwithstanding  any provision of any general, special or
local law to the contrary, the village of Mastic Beach may enter into  a
contract to sell some or all of the delinquent tax liens held by it to a
private party, subject to the following conditions:
  (a)  The  consideration  to  be  paid for a sale of the delinquent tax
liens held by it may be more or less than the face  amount  of  the  tax
liens sold.
  (b)  Property owners shall be given at least 45 days advance notice of
sale in the same manner as is provided by paragraph (b) of subdivision 1
of section 1125 of the real property tax law. Failure  to  provide  such
notice shall invalidate any sale of a tax lien or tax liens. Such notice
shall  be  in  the  form  set forth in paragraph (b) of subdivision 2 of
section 1190 of the real property tax law.
  (c) The village of Mastic Beach shall set the terms and conditions  of
the contract of sale or loan.
  (d)  The  tax lien purchaser must 30 days prior to the commencement of
any foreclosure action provide to the village of Mastic Beach a list  of
liens  to  be  foreclosed.  The village of Mastic Beach 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 plus any  accrued  interest  and  collection

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13397-05-4

S. 6525--A                          2

fees  incurred by the tax lien purchaser through the date of repurchase.
The tax lien purchaser shall provide the foreclosure list to the village
of Mastic Beach, along with the  applicable  repurchase  price  of  each
lien,  by  certified mail, and the village of Mastic Beach 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 of Mastic Beach 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 of  Mastic
Beach  shall fail to repurchase the lien or liens the tax lien purchaser
shall have the right to commence a foreclosure action  immediately  upon
notice from the village of Mastic Beach of its refusal or at the expira-
tion of the 30 day review period whichever occurs first.
  (e)  The  sale of a tax lien pursuant to this act shall not operate to
shorten the otherwise applicable redemption period or change the  other-
wise applicable interest rate.
  (f)  Upon  the  expiration of the redemption period prescribed by law,
the purchaser of a delinquent tax lien, or its  successors  or  assigns,
may  foreclose  the  lien  as  in  an  action to foreclose a mortgage as
provided in section 1194 of the real property tax law. The procedure  in
such  action shall be the procedure 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 property, shall include reasonable and necessary collection costs,
attorneys' fees, legal costs, allowances, and disbursements.
  (g) 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 act.
  S 2. Notwithstanding any provision of any general,  special  or  local
law  to  the  contrary,  the  village  of  Mastic Beach may enter into a
contract to pledge as collateral for a loan some or all  of  the  delin-
quent  tax  liens held by it to a third party or engage a third party to
collect some or all of the delinquent tax liens held by  it  subject  to
the following conditions:
  (a)  Any  loan provided under this section shall bear an interest rate
to be determined by the village of Mastic Beach.
  (b) Any contract for the collection of delinquent tax  liens  the  fee
paid  by  the  village  of  Mastic  Beach  shall  not  exceed 10% of the
outstanding balance of the tax lien being collected and said  fee  shall
be borne by the delinquent taxpayer.
  S  3. This act shall take effect immediately and shall expire December
31, 2018 when upon such date the provisions of this act shall be  deemed
repealed.

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