S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    360
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by M. of A. PAULIN, COOK, GUNTHER, BARRON -- Multi-Sponsored
   by -- M. of A.  PERRY -- read once and referred to  the  Committee  on
   Judiciary
 
 AN  ACT to amend the eminent domain procedure law, in relation to desig-
   nating blighted property and blighted areas; to  amend  the  New  York
   state urban development corporation act, in relation to the definition
   of blight and substandard or insanitary area; and to amend the general
   municipal  law  and  the New York state urban development and research
   corporation act, in relation to substandard and insanitary areas
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 103 of the eminent domain procedure law is amended
 by adding a new subdivision (H) to read as follows:
   (H) "BLIGHTED PROPERTY" AND "BLIGHTED AREA"  MEANS  PROPERTY  THAT  IS
 DECLARED BLIGHTED UNDER SECTION TWO HUNDRED FOUR-A OF THIS CHAPTER.
   §  2.  Subdivision  (B) of section 204 of the eminent domain procedure
 law is amended by adding a new closing paragraph to read as follows:
   A CONDEMNOR SHALL NOT TAKE ACTION AGAINST A PROPERTY OR AREA WHEN  THE
 PUBLIC  USE,  BENEFIT,  OR  PURPOSE  TO BE SERVED BY THE PROPOSED PUBLIC
 PROJECT IS TO REMEDY BLIGHT, UNLESS SUCH PROPERTY OR AREA SATISFIES  THE
 DEFINITION OF "BLIGHTED PROPERTY OR BLIGHTED AREA" AS DEFINED BY SECTION
 TWO  HUNDRED  FOUR-A  OF THIS ARTICLE.  THE CONDEMNOR SHALL INCLUDE SUCH
 FINDINGS IN ITS DETERMINATION AND FINDINGS PURSUANT TO THIS  SUBDIVISION
 IN ORDER TO TAKE ACTION AGAINST AN AREA OR PROPERTY TO REMEDY BLIGHT.
   §  3.  The  eminent  domain  procedure  law is amended by adding a new
 section 204-a to read as follows:
   § 204-A. BLIGHTED PROPERTY AND BLIGHTED  AREAS.  (A)  SUBJECT  TO  THE
 EXCEPTIONS  LISTED  IN PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION,
 ANY SINGLE PROPERTY MAY BE DECLARED BLIGHTED IF:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00629-01-9

 A. 360                              2
 
   (1) (A) (I) THE PROPERTY IS UNFIT FOR HUMAN HABITATION  DUE  TO  IDEN-
 TIFIABLE  CONDITIONS  THAT  ENDANGER  THE LIFE, HEALTH AND SAFETY OF THE
 OWNERS, OCCUPANTS, OR GENERAL PUBLIC.    CONDITIONS  RENDERING  PROPERTY
 UNFIT  FOR  HUMAN HABITATION INCLUDE, BUT ARE NOT LIMITED TO, STRUCTURAL
 DEFECTS,   DILAPIDATION,   DETERIORATION,   VERMIN  INFESTATION,  HEALTH
 HAZARDS, FIRE HAZARDS, LACK  OF  PROPER  SANITARY  FACILITIES,  OBSOLETE
 SYSTEMS OF UTILITIES, OR INADEQUATE MAINTENANCE; OR
   (II) THE PROPERTY HAS DETERIORATED TO THE POINT WHERE:
   1.  THE  BUILDING IS STRUCTURALLY UNSOUND OR POSES AN IMMEDIATE THREAT
 TO LIFE OR OTHER PROPERTY; OR
   2. THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABILI-
 TATION MARKET VALUE.
   (B) THE OWNER FAILS TO REMEDY SUBPARAGRAPH (A) OF THIS PARAGRAPH WITH-
 IN A REASONABLE TIME AFTER RECEIVING NOTICE OF VIOLATION BY  THE  APPRO-
 PRIATE GOVERNING BODY REQUIRING THE OWNER TO:
   (I)  REHABILITATE THE BUILDING TO CONFORM TO MINIMUM CODE HABITABILITY
 REQUIREMENTS; OR
   (II) DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS.
   (2) THE PROPERTY IS ABANDONED. PROPERTY SHALL BE DEEMED ABANDONED IF:
   (A) PROPERTY IS UNOCCUPIED AND HAS BEEN TAX DELINQUENT  FOR  AT  LEAST
 TWO YEARS; OR
   (B)  A  BUILDING  IS  UNOCCUPIED BY THE OWNER OR TENANTS, IS UNFIT FOR
 HUMAN HABITATION, AND HAS DETERIORATED TO THE POINT WHERE:
   (I) THE BUILDING IS STRUCTURALLY UNSOUND OR POSES AN IMMEDIATE  THREAT
 TO LIFE OR OTHER PROPERTY; OR
   (II) THE COST OF REHABILITATION SIGNIFICANTLY EXCEEDS THE POST-REHABI-
 LITATION MARKET VALUE; AND
   (III)  THE  OWNER  IS UNKNOWN OR THE OWNER FAILS TO RESPOND WITHIN SIX
 MONTHS TO A VIOLATION NOTICE FROM THE APPROPRIATE GOVERNING BODY REQUIR-
 ING THE OWNER TO:
   1. REHABILITATE  THE  BUILDING  TO  CONFORM  TO  MINIMUM  HABITABILITY
 REQUIREMENTS; OR
   2. DEMOLISH THE BUILDING FOR HEALTH AND SAFETY REASONS.
   (3) A VACANT LOT ON WHICH A BUILDING HAS BEEN DEMOLISHED AND FOR WHICH
 A MUNICIPAL LIEN FOR DEMOLITION COSTS REMAINS UNPAID FOR SIX MONTHS.
   (4)  PROPERTY  THAT  IS ENVIRONMENTALLY CONTAMINATED REQUIRING REMEDI-
 ATION FOR CURRENT OR FUTURE USE UNDER STATE OR FEDERAL LAW, IF THE OWNER
 FAILS TO REMEDY THE PROBLEM WITHIN SIX MONTHS  OF  RECEIVING  NOTICE  OF
 VIOLATION FROM THE APPROPRIATE GOVERNING BODY.
   (5)  A  PREMISES  WHICH,  BECAUSE  OF  PHYSICAL  CONDITION  OR USE, IS
 REGARDED AS A PUBLIC NUISANCE AT COMMON  LAW  OR  HAS  BEEN  DECLARED  A
 PUBLIC NUISANCE UNDER A STATUTE OR AN APPLICABLE MUNICIPAL CODE, AND THE
 OWNER  FAILS TO ABATE THE NUISANCE WITHIN SIX MONTHS OF RECEIVING NOTICE
 OF VIOLATION FROM THE APPROPRIATE GOVERNING BODY.
   (6) DEFECTIVE OR UNUSUAL CONDITIONS OF TITLE THAT MAKE THE FREE TRANS-
 FER OR ALIENATION OF THE PROPERTY IMPOSSIBLE.
   (7) PROPERTY THAT IS OCCUPIED  OR  UNOCCUPIED  HAS  TAX  DELINQUENCIES
 EXCEEDING THE VALUE OF THE PROPERTY.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 THE FOLLOWING EXCEPTIONS SHALL APPLY:
   (1)  PROPERTY SHALL IN NO CASE BE DECLARED BLIGHTED IF IT MEETS ONE OR
 MORE OF THE FOLLOWING CRITERIA:
   (A) VACANT AND UNIMPROVED PROPERTY LOCATED IN ANY  RURAL  OR  SUBURBAN
 AREA WHICH IS NOT SERVED BY EXISTING UTILITIES.
   (B)  PROPERTY WHICH SATISFIES THE DEFINITION OF "FARM WOODLAND", "LAND
 USED IN AGRICULTURAL PRODUCTION", "UNIQUE AND IRREPLACEABLE AGRICULTURAL

 A. 360                              3
 
 LAND", OR "VIABLE AGRICULTURAL LAND", AS  THOSE  TERMS  ARE  DEFINED  IN
 SECTION THREE HUNDRED ONE OF THE AGRICULTURE AND MARKETS LAW.
   (2) FOR PURPOSES OF THIS SECTION, IF A DEVELOPER OR CONDEMNER INVOLVED
 IN  A  REDEVELOPMENT  PROJECT  HAS  CAUSED OR BROUGHT ABOUT BY ACTION OR
 INACTION OR MAINTAINED FOR MORE THAN SEVEN YEARS A CONDITION  LISTED  IN
 SUBDIVISION  (A)  OF THIS SECTION WITHIN THE PROPOSED PROJECT AREA, THAT
 CONDITION MAY NOT BE USED IN THE DETERMINATION OF BLIGHT.
   (3) FOR PURPOSES OF THIS SECTION, IF PROPERTY LOCATED IN AN  URBANIZED
 AREA  GENERALLY  SERVED  BY MUNICIPAL INFRASTRUCTURE AND UTILITIES MEETS
 ONE OR MORE OF THE CONDITIONS LISTED IN SUBDIVISION (A) OF THIS  SECTION
 DUE  TO FAILURE ON THE PART OF THE APPROPRIATE GOVERNING BODY TO PROVIDE
 NECESSARY UTILITY SERVICES AND/OR INFRASTRUCTURE, THAT CONDITION MAY NOT
 BE USED IN THE DETERMINATION OF BLIGHT.
   (C) MULTIPLE PROPERTIES AND PROJECT AREAS MAY BE DECLARED BLIGHTED.
   (1) A CONDEMNER MAY USE EMINENT DOMAIN TO ACQUIRE ANY UNIT OF PROPERTY
 WITHIN A BLIGHTED PROJECT AREA.
   (2) FOR PURPOSES OF ACQUIRING MULTIPLE UNITS OF  PROPERTY  BY  EMINENT
 DOMAIN, AN AREA MAY BE DECLARED GENERALLY BLIGHTED ONLY IF A MAJORITY OF
 THE  INDIVIDUAL PARCELS IN THE AREA ARE DECLARED BLIGHTED UNDER SUBDIVI-
 SION (A) OF THIS SECTION AND REPRESENT A MAJORITY OF THE GEOGRAPHIC AREA
 OF THE PROJECT.
   (3) PROPERTIES OWNED BY A DEVELOPER OR CONDEMNER INVOLVED IN  A  REDE-
 VELOPMENT  PROJECT MAY BE INCLUDED IN ANY BLIGHTED PROJECT AREA DETERMI-
 NATION.
   (D) FOR PURPOSES OF THIS SECTION, A BUILDING CONTAINING MULTIPLE UNITS
 SHALL BE TREATED AS A SINGLE PROPERTY.
   (E) BEFORE A PROPERTY  MAY  BE  DECLARED  BLIGHTED  PURSUANT  TO  THIS
 SECTION, THE CONDEMNER SHALL:
   (1)  IN THE CASE OF A SINGLE PROPERTY, MAKE WRITTEN FINDINGS IDENTIFY-
 ING THE SPECIFIC CONDITIONS WHICH RENDER  THE  PROPERTY  BLIGHTED  UNDER
 SUBDIVISION (A) OF THIS SECTION;
   (2)  IN THE CASE OF MULTIPLE PROPERTIES OR PROJECT AREAS, MAKE WRITTEN
 FINDINGS DEMONSTRATING THAT THE CONDITIONS OF SUBDIVISION (C) HAVE  BEEN
 MET.  IN  ORDER TO DEMONSTRATE THAT A MAJORITY OF THE INDIVIDUAL PARCELS
 ARE BLIGHTED AND COMPRISE A MAJORITY OF THE  GEOGRAPHICAL  AREA  OF  THE
 PROJECT,  EACH  BLIGHTED  PROPERTY  MUST  BE IDENTIFIED AND THE SPECIFIC
 CONDITIONS RENDERING IT BLIGHTED UNDER SUBDIVISION (A) OF  THIS  SECTION
 MUST BE IDENTIFIED.
   (F) ANY DECLARATION MADE PURSUANT TO THIS SECTION SHALL BE VALID FOR A
 PERIOD OF UP TO FIFTEEN YEARS.
   §  4. Section 206 of the eminent domain procedure law, subdivision (E)
 as added by chapter 468 of the laws of  1978,  is  amended  to  read  as
 follows:
   §  206. Exemptions. The condemnor shall be exempt from compliance with
 the provisions of this article when:
   (A) pursuant to other state, federal, or local law  or  regulation  it
 considers  and submits factors [similar to those] enumerated in subdivi-
 sion (B) of section two hundred four,  to  a  state,  federal  or  local
 governmental  agency,  board  or  commission  before proceeding with the
 acquisition and obtains a license, a permit,  a  certificate  of  public
 convenience  or  necessity  or  other similar approval from such agency,
 board, or commission or;
   (B) pursuant to article VII [or article VIII] of  the  public  service
 law  it obtained a certificate of environmental compatibility and public
 need or;

 A. 360                              4

   (C) pursuant to other law or regulation it undergoes or  conducts  [or
 offers  to  conduct] prior to an acquisition one or more public hearings
 upon notice to the public and owners of property  to  be  acquired,  and
 provided  further that factors [similar to those] enumerated in subdivi-
 sion (B) of section two hundred four herein [may] SHALL be considered at
 such public hearings, or;
   (D) when in the opinion of the condemnor the acquisition is de minimis
 in  nature  so  that  the  public interest will not be prejudiced by the
 construction of the project or because of  an  emergency  situation  the
 public  interest  will  be  endangered by any delay caused by the public
 hearing requirement in this article.
   (E) when it complies with the procedures contained in section 41.34 of
 the mental hygiene law.
   § 5. 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)  "BLIGHTED  PROPERTY"  AND  "BLIGHTED  AREA".  PROPERTY  THAT  IS
 DECLARED  BLIGHTED  UNDER  SECTION 204-A OF THE EMINENT DOMAIN PROCEDURE
 LAW.
   § 6. Subdivision 12 of section 3 of section 1 of chapter  174  of  the
 laws  of  1968, constituting the New York state urban development corpo-
 ration act, is amended to read as follows:
   (12) "Substandard or insanitary area". The term "substandard or insan-
 itary area" shall mean and be interchangeable with a [slum,]  blighted[,
 deteriorated  or  deteriorating]  area, or an area which has a blighting
 influence on the surrounding area, whether residential, non-residential,
 commercial, industrial, vacant or land in highways,  waterways,  railway
 and subway tracks and yards, bridge and tunnel approaches and entrances,
 or  other  similar  facilities,  over  which air rights and easements or
 other rights of user necessary for the use and development of  such  air
 rights,  to  be developed as air rights sites for the elimination of the
 blighting influence, or any combination thereof and  may  include  land,
 buildings  or  improvements,  or air rights and concomitant easements or
 other rights of user necessary for the use and development of  such  air
 rights not in themselves substandard or insanitary.
   §  7. The second and the sixth undesignated paragraphs of section 2 of
 section 1 of chapter 174 of the laws of 1968, constituting the New  York
 state urban development corporation act, are amended to read as follows:
   It  is  further  found  and  declared that there exist in many munici-
 palities within  this  state  residential,  nonresidential,  commercial,
 industrial  or  vacant  areas, and combinations thereof, which are [slum
 or] blighted, or which are becoming [slum or] blighted areas because  of
 substandard[,]  OR insanitary CONDITIONS, [deteriorated or deteriorating
 conditions, including obsolete and dilapidated buildings and structures,
 defective construction, outmoded design, lack of proper sanitary facili-
 ties or adequate fire or safety  protection,  excessive  land  coverage,
 insufficient  light and ventilation, excessive population density, ille-
 gal uses and conversions, inadequate maintenance, buildings abandoned or
 not utilized in whole or substantial part, obsolete  systems  of  utili-
 ties,  poorly  or improperly designed street patterns and intersections,
 inadequate access to areas, traffic congestion hazardous to  the  public
 safety,  lack  of  suitable  off-street  parking, inadequate loading and
 unloading facilities,  impractical  street  widths,  sizes  and  shapes,
 blocks  and lots of irregular form, shape or insufficient size, width or
 depth, unsuitable topography, subsoil or other physical conditions,  all
 of] which hamper or impede proper and economic development of such areas

 A. 360                              5

 and  which  impair  or arrest the sound growth of the area, community or
 municipality, and the state as a whole.
   It  is  further  declared to be the policy of the state to promote the
 safety, health, morals and welfare of the people of  the  state  and  to
 promote  the  sound growth and development of our municipalities through
 the correction of such substandard, insanitary[,] OR blighted[,  deteri-
 orated  or deteriorating] conditions, factors and characteristics by the
 clearance, replanning,  reconstruction,  redevelopment,  rehabilitation,
 restoration  or  conservation  of  such  areas,  and of areas reasonably
 accessible thereto the undertaking of  public  and  private  improvement
 programs related thereto, including the provision of educational, recre-
 ational  and cultural facilities, and the encouragement of participation
 in these programs by private enterprise.
   § 8. Paragraph (d) of subdivision 6 of section 16-n of  section  1  of
 chapter  174  of the laws of 1968, constituting the New York state urban
 development corporation act, as added by section 2 of part C-2 of  chap-
 ter 109 of the laws of 2006, is amended to read as follows:
   (d)  A  municipality  that  is  granted  an award or awards under this
 section shall provide a  matching  contribution  of  no  less  than  ten
 percent of the aggregated award or awards amount. Such matching contrib-
 ution  may  be  in  the form of a financial and/or in kind contribution.
 Financial contributions may include grants from federal, state and local
 entities.  In kind contributions may include but shall not be limited to
 the efforts of municipalities to conduct an inventory and assessment  of
 vacant, abandoned, surplus, AND condemned[, and deteriorated] properties
 and  to  manage  and administer grants pursuant to subdivisions four and
 five of this section.
   § 9. Section 501 of the general municipal law, as added by chapter 402
 of the laws of 1961, is amended to read as follows:
   § 501. Policy and purposes of article. There  exist  in  many  munici-
 palities  within  this  state  residential, non-residential, commercial,
 industrial or vacant areas, and combinations thereof,  which  are  [slum
 or]  blighted, or which are becoming [slum or] blighted areas because of
 substandard[,] OR insanitary[,  deteriorated  or  deteriorating]  condi-
 tions,  factors,  and characteristics, with or without tangible physical
 blight. The existence of such areas constitutes a  serious  and  growing
 menace,  is  injurious to the public safety, health, morals and welfare,
 contributes increasingly to the spread of  crime,  juvenile  delinquency
 and disease, necessitates excessive and disproportionate expenditures of
 public  funds for all forms of public service and constitutes a negative
 influence on adjacent properties impairing their economic soundness  and
 stability, thereby threatening the source of public revenues.
   In order to protect and promote the safety, health, morals and welfare
 of  the people of the state and to promote the sound growth and develop-
 ment of our municipalities, it is necessary to correct such substandard,
 insanitary, OR blighted[,  deteriorated  or  deteriorating]  conditions,
 factors   and  characteristics  by  the  clearance,  replanning,  recon-
 struction, redevelopment, rehabilitation, restoration or conservation of
 such areas, the undertaking of public and private  improvement  programs
 related thereto and the encouragement of participation in these programs
 by private enterprise.
   It is necessary for the accomplishment of such purposes to grant muni-
 cipalities of this state the rights and powers provided in this article.
 The  use  of  such rights and powers to correct such conditions, factors
 and characteristics and to eliminate  or  prevent  the  development  and
 spread  of [deterioration and] blight through the clearance, replanning,

 A. 360                              6
 
 reconstruction, rehabilitation, conservation or renewal of  such  areas,
 for  residential,  commercial,  industrial,  community, public and other
 uses is a public use and public purpose essential to the  public  inter-
 est, and for which public funds may be expended.
   §  10.  Subdivision  4 of section 502 of the general municipal law, as
 amended by chapter 748 of the laws  of  1967,  is  amended  to  read  as
 follows:
   4.  "Substandard or insanitary area." The term "substandard or insani-
 tary area" shall mean and be interchangeable with a  [slum,]  blighted[,
 deteriorated  or  deteriorating]  area, or an area which has a blighting
 influence on the surrounding area, whether residential, non-residential,
 commercial, industrial, vacant, or land in highways, railway and  subway
 tracks,  bridge  and  tunnel  approaches and entrances, or other similar
 facilities, over which air rights and easements or other rights of  user
 necessary  for  the use and development of such air rights, to be devel-
 oped as air rights sites for the elimination of the blighting influence,
 or any combination thereof and may include land, buildings  or  improve-
 ments,  or  air rights and concomitant easements or other rights of user
 necessary for the use and development of such air rights, not  in  them-
 selves  substandard  or  insanitary,  the  inclusion  of which is deemed
 necessary for the effective undertaking of one  or  more  urban  renewal
 programs.
   §  11.  Paragraph  (a)  of subdivision 5 of section 510 of the general
 municipal law, as amended by chapter 829 of the laws of 1968, is amended
 to read as follows:
   (a) Notwithstanding anything contained in this article to the  contra-
 ry, the commissioner may in the name of the state, within appropriations
 heretofore  or  hereafter  made  for  state  capital grants to assist in
 carrying out one or more local urban renewal programs, make or  contract
 to  make  state  capital grants to municipalities to assist in financing
 the cost of the preparation and completion  of  one  or  more  community
 renewal programs.
   A  community renewal program may include, without being limited to (1)
 the identification of [slum areas or] blighted[, deteriorated, or  dete-
 riorating] areas in the community, (2) the measurement of the nature and
 degree  of  blight and blighting factors within such areas, (3) determi-
 nation of the financial, relocation,  and  other  resources  needed  and
 available  to  renew  such  areas,  (4)  the identification of potential
 project areas and, where feasible, types of urban renewal action contem-
 plated within such areas, and (5) scheduling  or  programming  of  urban
 renewal activities.
   §  12.  Section  520 of the general municipal law, as added by chapter
 402 of the laws of 1961, is amended to read as follows:
   § 520. Construction. This article  shall  be  construed  liberally  to
 effect  the  purposes  hereof  and the enumeration of specific powers in
 this act shall not operate to restrict the meaning of any general  grant
 of  power  contained  in this chapter or to exclude other powers compre-
 hended in such general grant. In construing this  chapter  consideration
 shall  be given to its purposes and intent, among others, of consolidat-
 ing, clarifying and simplifying the respective provisions of  the  chap-
 ters  repealed  as hereinafter specified in section five hundred twenty-
 five hereof and of authorizing municipalities to undertake one  or  more
 programs  of  urban  renewal  with respect to the clearance, replanning,
 reconstruction, rehabilitation, redevelopment, conservation, restoration
 or improvement of substandard, insanitary, [slum,] OR blighted[, deteri-
 orated  or  deteriorating]  residential,  non-residential,  improved  or

 A. 360                              7
 
 vacant  areas,  or the remedying of unsuitable topographical, subsoil or
 other physical conditions which tend to impede the development  of  such
 areas,  for  residential,  commercial, industrial, community, public and
 other uses and to apply for and accept federal or state loans, subsidies
 or  grants  in  connection  therewith. Insofar as the provisions of this
 article are inconsistent with  the  provisions  of  any  other  general,
 special  or  local law, the provisions of this article shall be control-
 ling.
   § 13. The third undesignated paragraph of section 2 of  section  1  of
 chapter  173  of the laws of 1968, constituting the New York state urban
 development and research corporation act, is amended to read as follows:
   The legislature hereby declares it to be the policy of this  state  to
 provide an adequate supply of safe and sanitary dwelling accommodations;
 to  increase job opportunities and protect against involuntary unemploy-
 ment and underemployment by promoting, attracting, stimulating and revi-
 talizing business, commerce, industry and  manufacturing  in  the  urban
 areas  of  the  state;  and  to arrest the spread of [deterioration and]
 blight and promote the economic and physical development of  such  areas
 through the construction, reconstruction, rehabilitation and improvement
 of  residential,  commercial  and  industrial  structures and facilities
 therein.
   § 14. This act shall take effect immediately.