S T A T E O F N E W Y O R K
________________________________________________________________________
S. 5213 A. 4935
2023-2024 Regular Sessions
S E N A T E - A S S E M B L Y
February 27, 2023
___________
IN SENATE -- Introduced by Sen. THOMAS -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Local Govern-
ment
IN ASSEMBLY -- Introduced by M. of A. WEINSTEIN -- read once and
referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to tax lien fore-
closure
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 924-a of the real property tax
law, as amended by chapter 26 of the laws of 2003, is amended to read as
follows:
1. The amount of interest to be added on all taxes received after the
interest free period and all delinquent taxes shall be [one-twelfth the
rate of interest as determined pursuant to subdivision two or two-a of
this section rounded to the nearest one-hundredth of a percentage point]
SIXTEEN PERCENT PER ANNUM, OR SUCH OTHER AMOUNT AS PRESCRIBED BY SECTION
FOURTEEN-A OF THE BANKING LAW, except as otherwise provided by a general
or special law, or a local law adopted by a city pursuant to the munici-
pal home rule law or any special law. Such interest shall be added for
each month or fraction thereof until such taxes are paid.
§ 2. The real property tax law is amended by adding a new section 1185
to read as follows:
§ 1185. HOMEOWNER BILL OF RIGHTS. ANY OWNER OF A RESIDENTIAL PROPERTY,
AS DEFINED IN SECTION ELEVEN HUNDRED ELEVEN OF THIS ARTICLE, WHO OCCU-
PIES SUCH PROPERTY AS THEIR PRIMARY RESIDENCE (OR WHOSE HEIRS OR DISTRI-
BUTEES OCCUPY THE PROPERTY AS THEIR PRIMARY RESIDENCE WHERE THE HOMEOWN-
ER IS DECEASED) OR ANY PURCHASER OF A CONTRACT FOR A RESIDENTIAL
PROPERTY (OR SUCCESSOR IN INTEREST TO SUCH PURCHASER) SUBJECT TO A TAX
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04452-02-3
S. 5213 2 A. 4935
LIEN ON ANY PARCEL OF REAL PROPERTY, INCLUDING THOSE LIENS OTHERWISE
EXEMPT UNDER THIS ARTICLE, SHALL HAVE THE FOLLOWING RIGHTS:
(A) TO HAVE ANY FORECLOSURE ON ANY REAL PROPERTY TAX LIEN PURSUANT TO
SECTION NINE HUNDRED TWO OF THIS CHAPTER BE A JUDICIAL PROCEEDING
SPECIFIC TO EACH PARCEL;
(B) WHERE THE PROPERTY IS THE PRIMARY RESIDENCE OF AN OWNER ENTITLED
TO TAX EXEMPTION BASED ON AGE, DISABILITY, OR VETERAN STATUS, A FORECLO-
SURE MAY NOT BE MAINTAINED;
(C) TO NOT HAVE EXEMPTIONS REMOVED OR WAIVED FOR NONPAYMENT OF PROPER-
TY TAXES;
(D) TO BE INFORMED OF THE AMOUNT OF TAX DUE, THE NUMBER OF TAX YEARS
FOR WHICH THE PARCEL HAS BEEN IN ARREARS, THE DATE ON WHICH THE REDEMP-
TION PERIOD ENDS, THE ACCEPTED FORMS OF PAYMENT, THE LOCATION WHERE
PAYMENTS SHALL BE MADE, AND THE CONTACT INFORMATION FOR THE RESPONSIBLE
TAXING AUTHORITY, INCLUDING BUT NOT LIMITED TO, THE TAXPAYER ADVOCATE OR
OTHER SIMILAR OFFICE WITHIN THE TAXING AUTHORITY WORKING WITH HOMEOWNERS
TO RESOLVE TAX ARREARS;
(E) TO RECEIVE PRE-FORECLOSURE NOTICES, WHICH SHALL BE CONDITIONS
PRECEDENT TO MAINTENANCE OF A FORECLOSURE ON ANY TAX LIEN GOVERNED BY
THE SERVICE REQUIREMENTS OF SECTION THIRTEEN HUNDRED FOUR OF THE REAL
PROPERTY ACTIONS AND PROCEEDINGS LAW;
(F) TO PARTICIPATE IN A MANDATORY SETTLEMENT CONFERENCE PROCESS EQUIV-
ALENT TO THE PROCESS REQUIRED IN MORTGAGE FORECLOSURE ACTIONS PURSUANT
TO RULE THIRTY-FOUR HUNDRED EIGHT OF THE CIVIL PRACTICE LAW AND RULES,
WHICH SHALL BE GOVERNED BY THE SAME GOOD FAITH NEGOTIATION STANDARD
GOVERNING THAT PROVISION, WITH THE GOAL OF: (I) NEGOTIATING A MUTUALLY
AGREEABLE RESOLUTION TO AVERT FORECLOSURE, INCLUDING, BUT NOT LIMITED
TO, ESTABLISHING AN AFFORDABLE REPAYMENT PLAN, ABATEMENT OF FEES, PENAL-
TIES OR OTHER CHARGES, FORBEARANCE OF AMOUNTS DUE, OR OTHER HOME SAVING
RESOLUTION; OR (II) WHATEVER OTHER PURPOSES THE COURT DEEMS APPROPRIATE.
A PARTY PROSECUTING A TAX LIEN FORECLOSURE SHALL BE PROHIBITED FROM
CHARGING THE HOMEOWNER FOR ANY FEES ASSOCIATED WITH PARTICIPATING IN THE
SETTLEMENT CONFERENCE. EXPLICITLY INCORPORATED INTO THIS BILL OF RIGHTS
ARE SUBDIVISIONS (C) THROUGH (N) OF RULE THIRTY-FOUR HUNDRED EIGHT OF
THE CIVIL PRACTICE LAW AND RULES, AND THE OFFICE OF COURT ADMINISTRATION
SHALL WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION PROMUL-
GATE RULES IMPLEMENTING THIS MANDATORY SETTLEMENT CONFERENCE PROCESS
WHICH SHALL ADAPT THE FOREGOING SUBDIVISIONS TO THE NEEDS OF TAX LIEN
FORECLOSURE CASES AND WHICH SHALL, WITHOUT LIMITATION, INCLUDE A NOTICE
OF THE SCHEDULING OF THE CONFERENCE THAT SHALL REQUIRE THE PARTIES TO
APPEAR AT THE CONFERENCE WITH REQUIRED INFORMATION FOR A MEANINGFUL
CONFERENCE AND WITH AUTHORITY TO ENGAGE IN SETTLEMENT NEGOTIATIONS;
(G) TO APPLY ANY PAYMENTS TOWARD DELINQUENT TAXES IN THE ORDER IN
WHICH THE LIENS BECAME DUE;
(H) IN THE EVENT THAT A RESIDENCE IS FORECLOSED UPON, TO RECEIVE ANY
SURPLUS FOLLOWING THE SALE OF THE PROPERTY AFTER THE TAX LIEN IS SATIS-
FIED AHEAD OF UNSECURED CREDITORS PURSUANT TO SECTION FIFTY-TWO HUNDRED
SIX OF THE CIVIL PRACTICE LAW AND RULES; AND
(I) WHERE THERE IS A TRANSFER TO A MUNICIPALITY PURSUANT TO SECTION
ELEVEN HUNDRED THIRTY-SIX OF THIS ARTICLE OR WHERE THERE IS A FORECLO-
SURE AUCTION WITH NO BIDDERS AND THE MUNICIPALITY TAKES POSSESSION OF
THE PROPERTY, ANY SUBSEQUENT SALE OF THE PROPERTY MUST BE AN ARM'S
LENGTH TRANSACTION IN WHICH THE OWNER HAS AN ABSOLUTE RIGHT TO ANY
SURPLUS FUNDS.
§ 3. The real property tax law is amended by adding a new section
1185-a to read as follows:
S. 5213 3 A. 4935
§ 1185-A. PRE-FORECLOSURE NOTICES. (A) THE PRE-FORECLOSURE NOTICE
REQUIRED IN SUBDIVISION (E) OF SECTION ELEVEN HUNDRED EIGHTY-FIVE OF
THIS ARTICLE SHALL APPEAR AS FOLLOWS:
"YOU MAY BE AT RISK OF FORECLOSURE ON A PROPERTY TAX LIEN
PLEASE READ THE FOLLOWING NOTICE CAREFULLY.
AS OF (DATE), YOUR PROPERTY TAXES HAVE NOT BEEN PAID FOR THE FOLLOWING
YEARS AND AMOUNTS EACH YEAR:
THE TOTAL NEEDED TO PAY OFF ALL TAX ARREARS AS OF THE DATE OF THIS
NOTICE IS:
UNDER NEW YORK STATE LAW, WE ARE REQUIRED TO SEND YOU THIS NOTICE TO
INFORM YOU THAT YOU ARE AT RISK OF LOSING YOUR HOME.
ATTACHED TO THIS NOTICE IS A LIST OF GOVERNMENT APPROVED HOUSING COUN-
SELING AGENCIES IN YOUR AREA WHICH PROVIDE FREE COUNSELING. YOU CAN ALSO
CALL THE NYS OFFICE OF THE ATTORNEY GENERAL'S HOMEOWNER PROTECTION
PROGRAM (HOPP) TOLL-FREE CONSUMER HOTLINE TO BE CONNECTED TO FREE HOUS-
ING COUNSELING OR LEGAL SERVICES IN YOUR AREA AT 1-855-HOME-456 (1-855-
466-3456), OR VISIT THEIR WEBSITE AT HTTP://WWW.AGHOMEHELP.COM. A STATE-
WIDE LISTING BY COUNTY IS ALSO AVAILABLE AT HTTPS://WWW.DFS.NY.GOV/
CONSUMER/MORTG_NYS_NP_COUNSELING_AGENCIES.HTML. QUALIFIED FREE HELP IS
AVAILABLE; WATCH OUT FOR COMPANIES OR PEOPLE WHO CHARGE A FEE FOR THESE
SERVICES.
HOUSING COUNSELORS FROM NEW YORK-BASED AGENCIES LISTED ON THE WEBSITE
ABOVE ARE TRAINED TO HELP HOMEOWNERS WHO ARE HAVING PROBLEMS MAKING
THEIR TAX PAYMENTS AND CAN HELP YOU FIND THE BEST OPTION FOR YOUR SITU-
ATION. IF YOU WISH, YOU MAY ALSO CONTACT OUR OFFICE DIRECTLY AT
__________ OR OUR TAXPAYER ADVOCATE AT __________ , WHO IS RESPONSIBLE
FOR WORKING WITH HOMEOWNERS TO RESOLVE TAX ARREARS, AND ASK TO DISCUSS
POSSIBLE PAYMENT PLANS AND OTHER OPTIONS.
PLEASE NOTE THAT IF YOU ARE A SENIOR CITIZEN, PHYSICALLY DISABLED,
AND/OR A VETERAN, YOU MAY BE ENTITLED TO A PARTIAL EXEMPTION FROM PROP-
ERTY TAXES OR TO HAVE TAX FORECLOSURE DELAYED. THE FOLLOWING EXEMPTIONS
THAT LOCAL RULES ALLOW THAT COULD PREVENT FORECLOSURE IN YOUR CASE ARE:
____ SENIOR CITIZEN
____ VETERAN
____ PHYSICAL DISABILITY
WE ENCOURAGE YOU TO CONTACT OUR TAXPAYER ADVOCATE AT THE TELEPHONE
NUMBER ABOVE IF YOU HAVE ANY QUESTIONS ABOUT WHETHER YOU QUALIFY FOR ANY
OF THESE EXEMPTIONS.
WHILE WE CANNOT ASSURE THAT A MUTUALLY AGREEABLE RESOLUTION IS POSSIBLE,
WE ENCOURAGE YOU TO TAKE IMMEDIATE STEPS TO TRY TO ACHIEVE A RESOLUTION.
THE LONGER YOU WAIT, THE FEWER OPTIONS YOU MAY HAVE.
IF YOU HAVE NOT TAKEN ANY ACTIONS TO RESOLVE THIS MATTER WITHIN 90 DAYS
FROM THE DATE THIS NOTICE WAS MAILED (OR SOONER IF YOU CEASE TO LIVE IN
THE DWELLING AS YOUR PRIMARY RESIDENCE), WE MAY COMMENCE LEGAL ACTION OR
OTHER REMEDIES AGAINST YOU TO FORECLOSE THE TAX LIEN, WHICH MAY EVENTU-
ALLY RESULT IN EVICTION FROM YOUR HOME.
UNDER NEW YORK STATE LAW, YOU MAY BE BARRED FROM ENTERING INTO A PAYMENT
PLAN OR FROM BEING PERMITTED TO MAKE ANY PAYMENT TO SAVE YOUR HOME AFTER
THE "REDEMPTION DATE".
IN YOUR CASE, THE "REDEMPTION DATE" IS _____.
IMPORTANT: YOU HAVE THE RIGHT TO REMAIN IN YOUR HOME UNTIL YOU RECEIVE A
COURT ORDER TELLING YOU TO LEAVE THE PROPERTY; HOWEVER, YOU MAY LOSE THE
RIGHT TO CONTINUE OWNERSHIP OF YOUR HOME AFTER THE REDEMPTION DATE. IF A
FORECLOSURE ACTION IS FILED AGAINST YOU IN COURT, YOU STILL HAVE THE
RIGHT TO REMAIN IN THE HOME UNTIL A COURT ORDERS YOU TO LEAVE.
S. 5213 4 A. 4935
THIS NOTICE IS NOT AN EVICTION NOTICE, AND A FORECLOSURE ACTION HAS NOT
YET BEEN COMMENCED AGAINST YOU."
(B) THE NOTICE REQUIRED IN SUBDIVISION (E) OF SECTION ELEVEN HUNDRED
EIGHTY-FIVE OF THIS ARTICLE SHALL BE SENT BY SUCH TAXING AUTHORITY OR
PURCHASER OF DELINQUENT TAX LIENS TO THE HOMEOWNER (OR HEIRS OR DISTRI-
BUTEES IF THE HOMEOWNER IS DECEASED), BY REGISTERED OR CERTIFIED MAIL
AND ALSO BY FIRST-CLASS MAIL TO THE LAST KNOWN ADDRESS OF THE HOMEOWNER,
AND TO THE RESIDENCE SUBJECT TO THE TAX LIEN. THE NOTICES REQUIRED BY
SUBDIVISION (E) OF SECTION ELEVEN HUNDRED EIGHTY-FIVE OF THIS ARTICLE
SHALL BE SENT BY THE TAXING AUTHORITY OR PURCHASER OF DELINQUENT TAX
LIENS IN A SEPARATE ENVELOPE FROM ANY OTHER MAILING OR NOTICE. NOTICE
IS CONSIDERED GIVEN AS OF THE DATE IT IS MAILED. THE NOTICE REQUIRED BY
SUBDIVISION (E) OF SECTION ELEVEN HUNDRED EIGHTY-FIVE OF THIS ARTICLE
SHALL CONTAIN A CURRENT LIST OF AT LEAST FIVE HOUSING COUNSELING AGEN-
CIES SERVING THE COUNTY WHERE THE PROPERTY IS LOCATED FROM THE MOST
RECENT LISTING AVAILABLE FROM THE DEPARTMENT OF FINANCIAL SERVICES. THE
LIST SHALL INCLUDE THE COUNSELING AGENCIES' LAST KNOWN ADDRESSES AND
TELEPHONE NUMBERS. THE DEPARTMENT OF FINANCIAL SERVICES SHALL MAKE
AVAILABLE ON ITS WEBSITE A LISTING, BY COUNTY, OF SUCH AGENCIES. THE
TAXING AUTHORITY OR PURCHASER OF DELINQUENT TAX LIENS SHALL USE SUCH
LISTS TO MEET THE REQUIREMENTS OF THIS SECTION.
(C) FOR ANY HOMEOWNER KNOWN TO HAVE LIMITED ENGLISH PROFICIENCY, THE
NOTICE REQUIRED BY SUBDIVISION (E) OF SECTION ELEVEN HUNDRED EIGHTY-FIVE
OF THIS ARTICLE SHALL BE IN THE HOMEOWNER'S NATIVE LANGUAGE (OR A
LANGUAGE IN WHICH THE HOMEOWNER IS PROFICIENT), PROVIDED THAT THE
LANGUAGE IS ONE OF THE SIX MOST COMMON NON-ENGLISH LANGUAGES SPOKEN BY
INDIVIDUALS WITH LIMITED ENGLISH PROFICIENCY IN THE STATE OF NEW YORK,
BASED ON UNITED STATES CENSUS DATA. THE DEPARTMENT OF FINANCIAL SERVICES
SHALL POST THE NOTICES REQUIRED BY SUBDIVISION (E) OF SECTION ELEVEN
HUNDRED EIGHTY-FIVE OF THIS ARTICLE ON ITS WEBSITE IN THE SIX MOST
COMMON NON-ENGLISH LANGUAGES SPOKEN BY INDIVIDUALS WITH LIMITED ENGLISH
PROFICIENCY IN THE STATE OF NEW YORK, BASED ON THE UNITED STATES CENSUS
DATA.
§ 4. Section 1104 of the real property tax law is amended by adding a
new subdivision 3 to read as follows:
3. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION,
EVERY COUNTY, CITY AND TOWN SHALL COMPLY WITH THE REQUIREMENTS OF
SECTIONS ELEVEN HUNDRED EIGHTY-FIVE AND ELEVEN HUNDRED EIGHTY-FIVE-A OF
THIS ARTICLE.
§ 5. This act shall take effect immediately.