S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1662
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on Local Governments
 
 AN  ACT to amend the state finance law and the real property tax law, in
   relation to authorizing certain municipalities in  a  pilot  emergency
   repair program to add unpaid emergency repair charges and housing code
   violation  penalties, costs   and fines to such municipalities' annual
   tax levy in accordance with applicable  law;  and  providing  for  the
   repeal  of certain provisions of the state finance law upon expiration
   thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 3 of section 54-g of the state finance law, as
 added by chapter 707 of the laws of 1981, is amended to read as follows:
   3.  THE SECRETARY OF STATE, WITH ASSISTANCE FROM THE DIVISION OF HOUS-
 ING AND COMMUNITY RENEWAL, SHALL ESTABLISH A PILOT PROGRAM WITH  PARTIC-
 IPATING MUNICIPALITIES FOR AN EMERGENCY REPAIR PROGRAM. THE SECRETARY OF
 STATE  SHALL  ONLY  SELECT  MUNICIPALITIES DESIGNATED AS A CITY FOR SUCH
 PILOT PROGRAM. THE EMERGENCY REPAIR PROGRAM SHALL REQUIRE A MUNICIPALITY
 AWARDED PARTICIPATION TO ENACT A LOCAL LAW TO ENABLE THE MUNICIPALITY TO
 REPAIR IMMEDIATELY HAZARDOUS CODE  VIOLATIONS  IN  BUILDINGS  WHERE  THE
 OWNER  HAS NOT UNDERTAKEN SUCH REPAIRS IN A REASONABLE TIME. THE MUNICI-
 PALITY SHALL BILL THE OWNER FOR SUCH  REPAIR  COSTS  AND  IN  THE  EVENT
 PAYMENT  IS  NOT  RECEIVED WITHIN THIRTY DAYS, THE SECRETARY SHALL REIM-
 BURSE THE MUNICIPALITY FOR SUCH  REPAIRS.  ANY  SUBSEQUENT  RECOVERY  OF
 MONIES  DUE  FROM  THE  OWNER FOR SUCH REPAIRS SHALL BE FORWARDED TO THE
 STATE. THE SECRETARY OF STATE IN CONJUNCTION WITH THE DIVISION OF  HOUS-
 ING  AND  COMMUNITY RENEWAL SHALL FILE A REPORT ANNUALLY TO EVALUATE THE
 EFFECTIVENESS OF THE EMERGENCY REPAIR PILOT PROGRAM WITH THE LEGISLATURE
 AND THE GOVERNOR. SUCH REPORT SHALL INCLUDE RECOMMENDATIONS AS TO WHETH-
 ER THE PROGRAM SHALL BE CONTINUED OR MODIFIED IN ANY WAY AND THE REASONS
 THEREFOR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05810-01-3
              

 A. 1662                             2
 
   4. The terms used in this section shall have the meanings ascribed  to
 them in section fifty-four of this article.
   §  2. The real property tax law is amended by adding a new section 903
 to read as follows:
   § 903. COLLECTION OF UNPAID HOUSING CODE VIOLATION PENALTIES; LEVY. 1.
 AUTHORIZATION. IN ADDITION TO AND NOT IN LIMITATION OF ANY POWER  OTHER-
 WISE  GRANTED  BY  LAW,  MUNICIPALITIES  PARTICIPATING  IN THE EMERGENCY
 REPAIR PROGRAM PURSUANT TO SECTION FIFTY-FOUR-G  OF  THE  STATE  FINANCE
 LAW, ARE HEREBY AUTHORIZED TO COLLECT ANY UNPAID EMERGENCY REPAIR CHARG-
 ES, HOUSING, BUILDING AND FIRE CODE VIOLATION PENALTIES, COSTS AND FINES
 THROUGH  PLACEMENT BY THE MUNICIPALITY'S COMMISSIONER OF FINANCE, TREAS-
 URER, OR OTHER PUBLIC OFFICIAL CHARGED WITH THE DUTIES OF OVERSEEING TAX
 COLLECTIONS ON THE MUNICIPALITY'S ANNUAL TAX LEVY IN ACCORDANCE WITH THE
 PROVISIONS OF THIS SECTION.
   2. ELIGIBILITY. IN ORDER TO BE ELIGIBLE FOR PLACEMENT ON  THE  MUNICI-
 PALITY'S  ANNUAL  TAX  LEVY  SUCH  UNPAID EMERGENCY REPAIR CHARGES, CODE
 VIOLATION PENALTIES, COSTS AND FINES SHALL  HAVE  BEEN  ADJUDICATED  AND
 IMPOSED  THROUGH  A  JUDGMENT IN A COURT OF COMPETENT JURISDICTION ON AN
 OWNER OF REAL PROPERTY WITHIN THE MUNICIPALITY AND RECORDED BY THE COUN-
 TY CLERK, AS CERTIFIED BY THE MUNICIPAL COUNSEL TO THE  COMMISSIONER  OF
 FINANCE,  TREASURER  OR OTHER PUBLIC OFFICIAL CHARGED WITH THE DUTIES OF
 OVERSEEING TAX COLLECTIONS AND HAVE REMAINED UNPAID FOR ONE  YEAR  AFTER
 THE  FINAL  ADJUDICATION  AND  EXHAUSTION OF ALL APPEALS RELATING TO THE
 IMPOSITION OF THE FINES FOR A CODE VIOLATION PRECEDING THE PLACEMENT  ON
 THE MUNICIPALITY'S TAX LEVY.
   3.  MINIMUM  AMOUNT OWED. TO QUALIFY FOR PLACEMENT ON THE TAX LEVY THE
 AMOUNT  OWED  FOR  UNPAID  EMERGENCY  REPAIR  CHARGES  AND/OR  THE  CODE
 VIOLATIONS  SHALL  BE  AT  LEAST  FIVE  PERCENT OF THE AMOUNT OF THE TAX
 ASSESSED VALUE OF THE PROPERTY.
   4. LEVY. SUCH UNPAID EMERGENCY REPAIR CHARGES  AND/OR  CODE  VIOLATION
 PENALTY,  COST  OR FINE AS SET FORTH IN A COPY OF THE JUDGMENT CERTIFIED
 BY THE MUNICIPAL COUNSEL TO THE COMMISSIONER OF  FINANCE,  TREASURER  OR
 OTHER  PUBLIC  OFFICIAL  CHARGED  WITH  THE  DUTIES  OF  OVERSEEING  TAX
 COLLECTIONS SHALL BE SET DOWN IN THE ANNUAL TAX LEVY UNDER  THE  HEADING
 UNCOLLECTED  FINES  AND  PENALTIES  AND  IN ACCORDANCE WITH THIS SECTION
 SHALL BE LEVIED, ENFORCED AND COLLECTED IN THE SAME MANNER, BY THE  SAME
 PROCEEDINGS,  AT  THE SAME TIME, UNDER THE SAME PENALTIES AND HAVING THE
 SAME LIEN UPON THE PROPERTY ASSESSED AS THE GENERAL MUNICIPAL TAX AND AS
 A PART THEREOF.
   5. NOTICE. THE MUNICIPALITY SHALL NOTIFY ALL OWNERS  OR  KNOWN  INTER-
 ESTED  PARTIES OF RECORD OF THE PLACEMENT OF THE UNPAID EMERGENCY REPAIR
 CHARGES AND/OR CODE VIOLATIONS ON THE MUNICIPAL TAX LEVY AS  UNCOLLECTED
 FINES AND PENALTIES WITHIN THIRTY DAYS OF PLACEMENT, PURSUANT TO SECTION
 THREE  HUNDRED  EIGHT  OF  THE  CIVIL PRACTICE LAW AND RULES. THE NOTICE
 SHALL INCLUDE THE DATE OR DATES OF SUCH VIOLATIONS, THE  DESCRIPTION  OF
 THE  VIOLATIONS,  THE AMOUNT OWED, A STATEMENT DETAILING THE FORECLOSURE
 PROCESS THAT WILL OCCUR IF THE VIOLATIONS REMAIN UNPAID, THE PROCESS  TO
 CLAIM  ANY  SURPLUS  FUNDS AND THE CONTACT INFORMATION FOR THE MUNICIPAL
 OFFICE IN CHARGE OF RECEIVING PAYMENTS.
   6.  TAX  YEAR.  ANY  UNPAID  EMERGENCY  REPAIR  CHARGES  AND/OR   CODE
 VIOLATIONS SHALL BE PLACED ON THE TAX ROLL THE MUNICIPALITY IS CURRENTLY
 IN AND SHALL NOT BE PLACED ON A LIST, ROLL OR LEVY OF DELINQUENT TAXES.
   7.  OWNER OCCUPIED. NOTWITHSTANDING ANY OTHER APPLICABLE PROVISIONS OF
 LAW, NOTHING IN THIS SECTION SHALL BE APPLIED TO A RESIDENTIAL  DWELLING
 THAT IS OWNER-OCCUPIED OR IS THE PRIMARY RESIDENCE OF A HOMEOWNER.
 A. 1662                             3
 
   8.  TENANTS.  PRIOR TO THE PLACEMENT OF ANY PROPERTY WITH UNPAID EMER-
 GENCY REPAIR CHARGES AND/OR CODE VIOLATIONS ON THE TAX LEVY, THE MUNICI-
 PALITY SHALL DEVELOP A PROGRAM TO ASSIST TENANTS RESIDING IN A  DWELLING
 AT  RISK  FOR  TAX  FORECLOSURE  DUE  TO UNPAID EMERGENCY REPAIR CHARGES
 AND/OR  CODE  VIOLATIONS.  SUCH PROGRAM SHALL INCLUDE HOUSING COUNSELING
 ASSISTANCE OR OTHER SUPPORT IN RELOCATING THE TENANTS TO SUITABLE  HOUS-
 ING PRIOR TO THE TAX FORECLOSURE.
   9. PAYMENT PLAN.  NOTHING IN THIS SECTION SHALL PRECLUDE AN OWNER FROM
 ENTERING  INTO  A  PAYMENT PLAN WITH A MUNICIPALITY FOR PAST AMOUNTS DUE
 FOR EMERGENCY REPAIR CHARGES AND/OR CODE VIOLATIONS.
   10. CURING CODE VIOLATIONS. (A) IF ALL OF THE VIOLATIONS FOR WHICH THE
 PENALTIES, FEES AND COSTS HAVE  BEEN  ASSESSED  ARE  CURED,  REMOVED  OR
 CORRECTED  PRIOR TO THE EXPIRATION OF THE PERIOD FOR REDEMPTION PURSUANT
 TO SECTION ELEVEN HUNDRED TEN OF THIS CHAPTER,  THE  PROPERTY  SHALL  BE
 REMOVED  FROM  THE  LEVY  AND AUCTION AND THE BALANCE OF THE AMOUNT OWED
 SHALL BE PLACED AS A LIEN ON THE PROPERTY PURSUANT  TO  APPLICABLE  LAWS
 FOR  DEBT COLLECTION AND AN ACTION FOR FORECLOSURE OF THE PROPERTY SHALL
 NOT BE MAINTAINED FOR THE AMOUNT OWED.
   (B) THE DETERMINATION OF WHETHER OR NOT THE CODE VIOLATIONS HAVE  BEEN
 CURED  SHALL  BE MADE BY THE LOCAL MUNICIPAL ENFORCING OFFICER IN CHARGE
 OF ENSURING COMPLIANCE WITH APPLICABLE HOUSING, BUILDING, AND FIRE CODES
 SUCH AS A CODE ENFORCEMENT OFFICER OR THROUGH  A  CERTIFICATION  BY  THE
 OWNER FILED WITH THE CODE ENFORCEMENT OFFICER.  AN APPEAL OF THIS DETER-
 MINATION  MAY  BE  MADE TO THE MUNICIPALITY'S ZONING BOARD OF APPEALS OR
 OTHER LOCAL ADMINISTRATIVE BODY AS PROVIDED FOR IN LOCAL LAW. THE  FINAL
 DETERMINATION MADE BY THE ADMINISTRATIVE BODY SHALL BE REVIEWABLE PURSU-
 ANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
   (C)  THIS  SECTION  SHALL  NOT  BE  APPLICABLE  TO ANY CAUSE OF ACTION
 BROUGHT FOR MONEY DUE BASED ON THE CURING OF  EMERGENCY  REPAIR  CHARGES
 AND/OR  CODE  VIOLATIONS  UNDER ANY FORM FOR RECEIVERSHIP OR A MECHANICS
 LIEN.
   11. PAYMENT PRIOR TO AUCTION. (A) IF THE BALANCE  OWED  FOR  EMERGENCY
 REPAIR  CHARGES  AND/OR  CODE  VIOLATIONS PLACED ON THE TAX LEVY IS PAID
 PRIOR TO THE EXPIRATION OF THE PERIOD FOR REDEMPTION PURSUANT TO SECTION
 ELEVEN HUNDRED TEN OF THIS CHAPTER AND  THERE  IS  NO  BALANCE  DUE  FOR
 UNPAID  REAL  PROPERTY TAXES, THE PROPERTY MAY NOT BE AUCTIONED, AND THE
 PROPERTY SHALL BE REMOVED FROM THE TAX LEVY.
   (B) THE OWNER SHALL HAVE THE RIGHT TO PAY THE FULL  BALANCE  PRIOR  TO
 THE  EXPIRATION  OF THE PERIOD FOR REDEMPTION PURSUANT TO SECTION ELEVEN
 HUNDRED TEN OF THIS CHAPTER IN ORDER TO REDEEM THE PROPERTY.
   12. SURPLUS. ANY SURPLUS FUNDS REMAINING AFTER THE SALE OF A  PROPERTY
 AT A TAX FORECLOSURE FOR UNPAID CODE VIOLATIONS SHALL BE RETURNED TO THE
 FORMER OWNER OF THE PROPERTY IN A MANNER PROVIDED UNDER LOCAL LAW.  THIS
 PROVISION  SHALL  NOT APPLY TO A SALE OF A PROPERTY AT A TAX FORECLOSURE
 DUE TO UNPAID TAXES. IF A PROPERTY HAS: (A) UNPAID TAXES; AND (B) UNPAID
 EMERGENCY REPAIR CHARGES AND/OR UNPAID CODE VIOLATIONS ON THE  SAME  TAX
 LEVY  AND  IS  AUCTIONED AT A TAX FORECLOSURE, THE AMOUNT OF THE SURPLUS
 FUNDS RETURNED TO THE FORMER OWNER SHALL BE PROPORTIONATE TO THE  AMOUNT
 OF  UNPAID  EMERGENCY  REPAIR CHARGES AND/OR CODE VIOLATIONS OWED IN THE
 TOTAL AMOUNT OF DEBT OWED TO THE MUNICIPALITY. FOR THE PURPOSE  OF  THIS
 SECTION,  "SURPLUS FUNDS" SHALL MEAN THE BALANCE OF MONEY RECEIVED AFTER
 AUCTION OF A PROPERTY AT A TAX FORECLOSURE SALE MINUS  THE  AMOUNT  OWED
 FOR  EMERGENCY  REPAIR CHARGES, CODE VIOLATIONS AND THE COSTS AND ATTOR-
 NEYS FEES INCURRED IN THE COLLECTION OF THE FEES BY THE MUNICIPALITIES.
 A. 1662                             4
 
   13. BALANCE DUE. IF AFTER AN AUCTION A BALANCE IS  DUE  FOR  EMERGENCY
 REPAIR CHARGES AND/OR CODE VIOLATIONS, THE MUNICIPALITY MAY PROCEED WITH
 ANY ACTION AGAINST THE FORMER OWNER PURSUANT TO APPLICABLE LAWS.
   14.  EXCLUSIONS. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY
 MUNICIPALITY THAT SELLS THEIR TAX LIENS IN A TAX LIEN SALE.
   § 3. This  act  shall  take  effect  immediately;  provided,  however,
 section one of this act shall expire and be deemed repealed May 1, 2027.