S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    967
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Judiciary
 
 AN  ACT  to  amend  the  real  property  actions and proceedings law, in
   relation to notice of certain proceedings to convey title to abandoned
   commercial and industrial real property to a city, town,  or  village;
   and to repeal certain provisions of such law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 1 of section 1981 of the  real
 property  actions and proceedings law, as added by a chapter of the laws
 of 2022 amending the real property actions and proceedings law  relating
 to  authorizing special proceedings to convey title to abandoned commer-
 cial and industrial real property  to  a  city,  town,  or  village,  as
 proposed in legislative bills numbers S. 9470 and A.  5337-A, is amended
 to read as follows:
   (b) In the case of a vacant commercial or industrial real property, it
 is  not  sealed  or  continuously  guarded  as required by law or it was
 sealed or is continuously guarded by a person other than  the  owner,  a
 mortgagee,  lienor  or  agent thereof, and either of the following facts
 exists:
   (i) A vacate order of the  department  or  other  governmental  agency
 currently prohibits occupancy of the commercial or industrial real prop-
 erty; or
   (ii)  The tax on such premises has been due and unpaid for a period of
 at least one year; or
   (iii) The property has had a zoning, building or property  maintenance
 code  violation [which] THAT has THE POTENTIAL TO INJURE OR ENDANGER THE
 HEALTH AND SAFETY OF OTHERS OR TO UNREASONABLY ANNOY OTHERS AND THAT HAS
 been continuously outstanding and not remediated  for  a  period  of  at
 least one year from the date the original order  to correct or notice of
 violation  was  served  upon  the property owner pursuant to subdivision

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04014-01-3
              

 A. 967                              2
 
 four of section three hundred eight of the civil practice law and  rules
 if  the  owner is a natural person, or pursuant to section three hundred
 ten, three hundred ten-a, three hundred eleven or three hundred eleven-a
 of  the  civil  practice  law  and  rules if the owner is a partnership,
 limited partnership, corporation or limited liability  company,  respec-
 tively; or
   §  2.  Subdivisions  2,  3  and 4 of section 1982 of the real property
 actions and proceedings law, as added by a chapter of the laws  of  2022
 amending  the  real  property  actions  and  proceedings law relating to
 authorizing special proceedings to convey title to abandoned  commercial
 and industrial real property to a city, town, or village, as proposed in
 legislative  bills numbers S. 9470 and A. 5337-A, are amended to read as
 follows:
   2. The department shall serve upon the  owner  of  the  commercial  or
 industrial  real property, a copy of the certification. Service shall be
 made personally or by posting in a conspicuous place upon the commercial
 or industrial real property and mailing a copy by [registered or] certi-
 fied mail to the last known owner at such owner's  last  known  address.
 The  copy  of the certification shall be accompanied by a notice stating
 that proceedings pursuant to this article may be instituted  unless  the
 owner  notifies the department that the property has not been abandoned.
 Such notification shall be made by a showing that  the  conditions  upon
 which  the findings in such certification are based do not exist or have
 been corrected. Such showing shall be made not later  than  thirty  days
 after the date of such notice.
   3.  Within  five days of the service of notice on the owner, a copy of
 the certification shall be served on each mortgagee, lienor  and  lessee
 of  record,  personally  or  by [registered] CERTIFIED mail OR OVERNIGHT
 COURIER to the address set forth in the recorded instrument  or,  if  no
 address  appears  therein, to the person at whose request the instrument
 was recorded. Such copy shall, in the case of a mortgagee or lienor,  be
 accompanied by a notice that proceedings pursuant to this article may be
 instituted  unless  the mortgagee or lienor, within [fifteen] FORTY-FIVE
 days of RECEIPT OF such mailing, either commences proceedings  to  fore-
 close  the mortgage or lien or enters into an agreement with the depart-
 ment  to  bring  the  building  into  compliance  with  the   applicable
 provisions of law.
   4. If the name or address of
   (a) the last owner of record, or
   (b)  any  owner,  mortgagee,  lienor,  or claimant as shown on records
 maintained by any city official required by any local  law  to  maintain
 records  of persons entitled to notice or process in connection with the
 maintenance of in rem foreclosure actions, or
   (c) the person listed as the owner  of  the  property  on  the  latest
 completed  assessment roll, is different from that referred to in subdi-
 visions two and three of this section, a  copy  of  the  notice  to  the
 owner,  or to a mortgagee or lienor, whichever is applicable, shall also
 be sent to such person at such address by [registered] CERTIFIED mail OR
 OVERNIGHT COURIER.
   § 3. Section 1982-a of the real property actions and proceedings  law,
 as  added  by  a  chapter of the laws of 2022 amending the real property
 actions and proceedings law relating to authorizing special  proceedings
 to  convey title to abandoned commercial and industrial real property to
 a city, town, or village, as proposed in legislative  bills  numbers  S.
 9470 and A. 5337-A, is REPEALED.
 A. 967                              3
 
   § 4. Subdivisions 4 and 5 of section 1984 of the real property actions
 and  proceedings law, as added by a chapter of the laws of 2022 amending
 the real property actions and proceedings law  relating  to  authorizing
 special  proceedings  to convey title to abandoned commercial and indus-
 trial real property to a city, town, or village, as proposed in legisla-
 tive  bills  numbers  S.  9470  and  A.  5337-A,  are amended to read as
 follows:
   4. The provisions of section three  hundred  seventeen  of  the  civil
 practice law and rules shall not apply to a proceeding instituted pursu-
 ant  to  this  article.  A motion or action to set aside a judgment in a
 proceeding instituted pursuant to this article  on  the  grounds  either
 that  there  was a failure to comply with the provisions of this article
 as to notice or that a defect in the proceeding prejudiced a substantial
 right of a party may be instituted within [ninety]  ONE  HUNDRED  TWENTY
 days  after  the deed vesting title in a city has been recorded, but not
 thereafter.
   5. The right, title and interest of a purchaser or incumbrancer  of  a
 property  as  to  which a deed vesting title in a city, town, or village
 has been recorded pursuant to a judgment obtained through  this  article
 shall  not be affected or impaired by a motion or action instituted more
 than [ninety] ONE HUNDRED TWENTY days after such deed vesting title in a
 city, town, or village has been recorded.
   § 5. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of  the  laws of 2022 amending the real property
 actions and proceedings law relating to authorizing special  proceedings
 to  convey title to abandoned commercial and industrial real property to
 a city, town, or village, as proposed in legislative  bills  numbers  S.
 9470  and A. 5337-A, takes effect; provided that the amendments to arti-
 cle 19-B of the real property actions and proceedings law made  by  this
 act shall not affect the expiration of such article and shall expire and
 be deemed repealed therewith.