S T A T E O F N E W Y O R K
________________________________________________________________________
4094
2017-2018 Regular Sessions
I N A S S E M B L Y
February 1, 2017
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Introduced by M. of A. HOOPER -- read once and referred to the Committee
on Local Governments
AN ACT to amend the county law and the New York state urban development
corporation act, in relation to creating land banks for the acquisi-
tion, management, planning and reuse of vacant and abandoned property
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The county law is amended by adding a new section 55 to
read as follows:
§ 55. AUTHORIZATION TO CREATE A LAND BANK. 1. AS USED IN THIS SECTION,
A "LAND BANK" IS A PUBLIC CORPORATION ESTABLISHED TO ASSIST OR ENGAGE IN
THE PROCESS OF THE EFFECTIVE CONVERSION OF VACANT, ABANDONED AND TAX-
DELINQUENT PROPERTIES TO PRODUCTIVE USE. VACANT AND/OR ABANDONED PROPER-
TY SHALL BE DEEMED TO BE RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL BUILD-
INGS AND EMPTY LOTS THAT EITHER THREATEN PUBLIC SAFETY INCLUDING PUBLIC
NUISANCES; AND/OR HAVE BEEN SUBJECT TO THE NEGLECT OF FUNDAMENTAL DUTIES
OF PROPERTY OWNERSHIP INCLUDING, BUT NOT LIMITED TO, FAILURE TO PAY
TAXES OR UTILITY BILLS, DEFAULTS ON MORTGAGES, AND LIENS AGAINST PROPER-
TY. SUCH PROCESS MAY, CONSISTENT WITH MUNICIPAL LAND USE AND STRATEGIC
PLANS INCLUDE, BUT NEED NOT BE LIMITED TO, ACQUISITION OF LAND, LEASING
AND SALES OF LAND AND STRUCTURES, EXPEDITED FORECLOSURE AND TITLE CLEAR-
ANCE, ADMINISTRATION, INVENTORY AND ASSESSMENT OF EXISTING PARCELS AND
STRUCTURES, PLANNING FOR REUSE CONSISTENT WITH LOCAL PLANS AND REINVEST-
MENT STRATEGIES, PROPERTY MAINTENANCE, REHABILITATION AND MANAGEMENT,
DEMOLITION, DISASSEMBLY AND SALVAGE AND PROVIDING FOR ASSISTANCE FOR
NONPROFIT ORGANIZATIONS INVOLVED IN THE REHABILITATION AND REDEVELOPMENT
OF PROPERTIES.
2. THE LEGISLATIVE BODY OF ANY COUNTY MAY ADOPT A RESOLUTION CALLING
UPON THE STATE URBAN DEVELOPMENT CORPORATION TO ESTABLISH A SUBSIDIARY
CORPORATION TO PERFORM THE FUNCTIONS OF A LAND BANK PURSUANT TO SECTION
TWELVE OF THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT. WHEN
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08742-01-7
A. 4094 2
AUTHORIZED BY RESOLUTION OF A COUNTY LEGISLATIVE BODY, THE MUNICIPALITY
MAY TRANSFER VACANT AND/OR ABANDONED PROPERTY TO SUCH A LAND BANK CORPO-
RATION OPERATING WITHIN ITS JURISDICTION.
§ 2. Section 3 of section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban development corporation act, is
amended by adding a new subdivision 31 to read as follows:
(31) "LAND BANK" IS A PUBLIC CORPORATION ESTABLISHED TO ASSIST OR
ENGAGE IN THE PROCESS OF THE EFFECTIVE CONVERSION OF VACANT, ABANDONED
AND TAX-DELINQUENT PROPERTIES TO PRODUCTIVE USE. VACANT AND/OR ABANDONED
PROPERTY SHALL BE DEEMED TO BE RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
BUILDINGS AND EMPTY LOTS THAT EITHER THREATEN PUBLIC SAFETY INCLUDING
PUBLIC NUISANCES; AND/OR HAVE BEEN SUBJECT TO THE NEGLECT OF FUNDAMENTAL
DUTIES OF PROPERTY OWNERSHIP INCLUDING BUT NOT LIMITED TO FAILURE TO PAY
TAXES OR UTILITY BILLS, DEFAULTS ON MORTGAGES, AND LIENS AGAINST PROPER-
TY. SUCH PROCESS MAY, CONSISTENT WITH MUNICIPAL LAND USE AND STRATEGIC
PLANS, INCLUDE, BUT NEED NOT BE LIMITED TO ACQUISITION OF LAND, LEASING
AND SALES OF LAND AND STRUCTURES, EXPEDITED FORECLOSURE AND TITLE CLEAR-
ANCE, ADMINISTRATION, INVENTORY AND ASSESSMENT OF EXISTING PARCELS AND
STRUCTURES, PLANNING FOR REUSE CONSISTENT WITH LOCAL PLANS AND REIN-
VESTMENT STRATEGIES, PROPERTY MAINTENANCE, REHABILITATION AND MANAGE-
MENT, DEMOLITION, DISASSEMBLY AND SALVAGE AND PROVIDING FOR ASSISTANCE
FOR NONPROFIT ORGANIZATIONS INVOLVED IN THE REHABILITATION AND REDEVEL-
OPMENT OF PROPERTIES.
§ 3. Section 12 of section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban development corporation act, is
amended by adding a new subdivision 1-a to read as follows:
(1-A) (A) UPON RECEIPT OF A RESOLUTION APPROVED BY A MAJORITY OF THE
LEGISLATIVE BODY OF ANY COUNTY, THE CORPORATION SHALL ESTABLISH A
SUBSIDIARY CORPORATION TO PERFORM THE FUNCTIONS OF A LAND BANK PURSUANT
TO SUBDIVISION THIRTY-ONE OF SECTION THREE OF THIS ACT. THE DIRECTORS OF
SUCH SUBSIDIARY SHALL INCLUDE TWO APPOINTEES BY BOTH THE CHIEF ELECTED
OFFICER AND LEGISLATIVE BODY OF THE COUNTY PETITIONING FOR THE CREATION
OF THE SUBSIDIARY CORPORATION. MEMBERS OF THE SUBSIDIARY SHALL BE
PERSONS WHO HAVE DEMONSTRATED SPECIAL INTEREST, EXPERIENCE, OR EDUCATION
IN URBAN AND/OR REGIONAL PLANNING, REAL ESTATE, COMMUNITY DEVELOPMENT,
NEIGHBORHOOD PRESERVATION, HISTORIC PRESERVATION, FINANCE OR RELATED
AREAS. THE CORPORATION MAY CONDITION THE CREATION OF A SUBSIDIARY LAND
BANK ON AN AGREEMENT FROM THE PETITIONING COUNTY TO DEED NOT LESS THAN
FIFTY PERCENT OF THE VACANT AND ABANDONED PROPERTY HELD BY THE MUNICI-
PALITY TO THE SUBSIDIARY LAND BANK.
(B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A SUBSIDIARY LAND BANK
MAY INSTITUTE A PROCEEDING PURSUANT TO ARTICLE 19-A OF THE REAL PROPERTY
ACTIONS AND PROCEEDINGS LAW.
(C) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A SUBSIDIARY LAND BANK
WITH AGREEMENT THEREFOR FROM THE COUNTY WHERE PROPERTY IS LOCATED, MAY
BORROW AGAINST FUTURE TAX REVENUE INCREASES. IN ADDITION, UPON RECEIVING
SUCH AGREEMENT A SUBSIDIARY LAND BANK MAY ALSO BORROW AGAINST FUTURE
SAVINGS ASSOCIATED WITH THE DECREASE IN COSTS ON A BLOCK OR MULTIPLE
BLOCKS CLEARED AND REVERTING TO GREEN SPACE.
(D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A SUBSIDIARY LAND BANK
MAY, UPON SUCH TERMS AS IT DEEMS APPROPRIATE, CONVEY TITLE TO ANY PROP-
ERTY TO WHICH IT OBTAINS TITLE PURSUANT TO A PROCEEDING PURSUANT TO THE
PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION OR OF ARTICLE 19-A OF
THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW TO A PRIVATE PURCHASER
PROVIDED SUCH PURCHASER RESIDES AT THE PROPERTY AS HIS OR HER PRIMARY
RESIDENCE FOR A PERIOD OF NO LESS THAN TWO YEARS. DURING THE INITIAL TWO
A. 4094 3
YEARS AFTER THE CONVEYANCE TO THE PRIVATE PURCHASER, THE PROPERTY SHALL
BE EXEMPT FROM AD VALOREM REAL ESTATE TAXES, PROVIDED THE PURCHASER
CONTINUES TO RESIDE AT THE PROPERTY AS PROVIDED IN THIS PARAGRAPH.
THEREAFTER, OR EARLIER IF THE PURCHASER CEASES TO RESIDE AT THE PROPERTY
AS HIS OR HER PRIMARY RESIDENCE, THE PROPERTY SHALL BE PLACED BACK ON
THE TAX ROLLS AND SHALL BE SUBJECT TO FULL TAXATION, UNLESS IT IS OTHER-
WISE ELIGIBLE FOR CREDITS AGAINST SUCH TAXATION.
§ 4. This act shall take effect immediately.