S T A T E O F N E W Y O R K
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741--A
2015-2016 Regular Sessions
I N S E N A T E
(PREFILED)
January 7, 2015
___________
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government -- recom-
mitted to the Committee on Local Government in accordance with Senate
Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT relating to final judgment in foreclosures by in rem proceedings
in the city of Buffalo
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Final judgment; proceedings in the city of Buffalo.
Notwithstanding the provisions of section 1136 of the real property tax
law, the following provisions shall apply to final judgments in in rem
proceedings taken in the city of Buffalo. 1. Generally. The court shall
have full power to determine and enforce in all respects the priorities,
rights, claims and demands of the several parties to the proceeding, as
the same exist according to law, including the priorities, rights,
claims and demands of the respondents as between themselves. The court
shall further determine upon proof and shall make findings upon such
proof whether there has been due compliance by the tax district with the
provisions of article 11 of the real property tax law.
2. When an answer has been interposed. (a) When an answer has been
interposed by a party other than a tax district as to any parcel of real
property included in the petition described in section 1123 of the real
property tax law and the court determines that the answer is meritori-
ous, the court shall dismiss the petition of foreclosure, with or with-
out prejudice, as to the affected parcel or parcels, unless an agreement
is executed pursuant to subdivision 2 of section 1150 of the real prop-
erty tax law. If the court determines that the answer is not meritori-
ous, the court shall make a final judgment awarding to such tax district
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00616-03-5
S. 741--A 2
the right to convey title to the affected parcel or parcels in the same
manner as provided by subdivision three of this section.
(b) When an answer has been interposed by another tax district as to
any parcel and the court shall determine that such other tax district
has an interest in such parcel, then and in that event the tax districts
having an interest in such parcel may by agreement between themselves
pursuant to subdivision 1 of section 1150 of the real property tax law
provide (i) for a conveyance without sale of any such parcel to one of
such tax districts free and clear of any right, title or interest in or
lien upon such parcel or such other tax district or districts or (ii)
for a conveyance without sale of any such parcel to one of such tax
districts subject to any right, title or interest in or lien upon such
parcel of such other tax district or districts. In either of such
events, the court shall in its judgment expressly dispense with the sale
and direct the making and execution of a conveyance by the enforcing
officer in accordance with such agreement. In the absence of such an
agreement, the court shall make a final judgment directing the sale of
such parcel in the same manner as provided by subdivision four of this
section, except that the conveyance may expressly be made subject to tax
liens of a tax district as provided herein.
3. When no answer has been interposed. The court shall make a final
judgment awarding to such tax district the right to convey title to any
parcel of real property described in the petition of foreclosure not
redeemed as provided in article 11 of the real property tax law and as
to which no answer is interposed as provided herein. In addition there-
to, where the enforcing officer has requested that such a parcel be sold
pursuant to subdivision four of this section without the tax district
taking title thereto, the judgment shall so direct. Otherwise such judg-
ment shall contain a direction to the enforcing officer of the tax
district to prepare, execute and cause to be recorded a deed conveying
to such tax district full and complete title to such parcel. Upon the
execution of such deed, the tax district shall be seized of an estate in
fee simple absolute in such parcel and all persons, including the state,
infants, incompetents, absentees and non-residents who may have had any
right, title, interest, claim, lien or equity of redemption in or upon
such parcel shall be barred and forever foreclosed of all such right,
title, interest, claim, lien or equity of redemption. The tax district
may sell any parcel so acquired in the manner provided by section 1166
of the real property tax law if it does not choose to retain the parcel
for a public use.
4. Court-ordered sales. Where the enforcing officer requests that a
parcel be sold without the tax district taking title thereto, the judg-
ment shall direct that a public auction shall be conducted by or under
the direction of the enforcing officer. Public notice of such sale shall
be given once a week for at least three successive weeks in a newspaper
published in the county in which such tax district is situated. The
terms and conditions of such sale shall be as prescribed by court order,
provided that all proceeds including any surplus, shall be paid to the
county comptroller pursuant to subdivision five of this section. At the
conclusion of such sale the enforcing officer shall prepare and execute
a deed conveying to the purchaser or its designee full and complete
title to such parcel. Upon the delivery and acceptance of such deed, the
grantee shall be seized of an estate in fee simple absolute in such
parcel and all persons, including the state, infants, incompetents,
absentees and non-residents who may have had any right, title, interest,
claim, lien or equity of redemption in or upon such parcel shall be
S. 741--A 3
barred and forever foreclosed of all such right, title, interest, claim,
lien or equity of redemption.
5. Notification of surplus. Upon confirmation of a surplus resulting
from a sale of the foreclosed property under subdivision four of this
section, the city of Buffalo shall attempt to notify the owner of the
property or his or her heirs, successors, or assigns, at least three
times within two consecutive calendar years from the date of the sale of
the property. Five years after the date of such foreclosure, any moneys
remaining with the comptroller shall be paid to the Buffalo urban
renewal agency to support the agency's weatherization and community
development projects. Provided, however, if the occupant of a property,
at the time of the foreclosure sale, is the owner-occupant and such
occupant uses the property as their primary residence, any surplus from
a sale of such property shall remain with the comptroller until claimed
by a rightful owner. Any individual owner, their heirs, successors or
assigns of an owner occupied foreclosed property may collect the surplus
from such foreclosure at any time from the county comptroller or state
comptroller.
S 2. This act shall take effect immediately and shall apply to any
surplus funds from the proceeds of a tax lien foreclosure sale in the
city of Buffalo paid into court on or after such effective date.