The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    434
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in  relation  to  authorizing
   certain municipalities to add unpaid housing code violation penalties,
   costs  and fines to such municipalities' annual tax levy in accordance
   with applicable law
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  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 IN THE COUNTY OF ORANGE, INCLUDING
 THE COUNTY OF ORANGE, ARE HEREBY AUTHORIZED TO COLLECT ANY UNPAID  HOUS-
 ING, BUILDING AND FIRE CODE VIOLATION PENALTIES, COSTS AND FINES THROUGH
 PLACEMENT  BY  THE MUNICIPALITY'S COMMISSIONER OF FINANCE, TREASURER, 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 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  COUNTY  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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02182-01-3

 S. 434                              2
 
   3.  MINIMUM  AMOUNT OWED. TO QUALIFY FOR PLACEMENT ON THE TAX LEVY THE
 AMOUNT OWED FOR UNPAID CODE VIOLATIONS MUST BE AT LEAST FIVE PERCENT  OF
 THE AMOUNT OF THE TAX ASSESSED VALUE OF THE PROPERTY.
   4.  LEVY.  SUCH CODE VIOLATION PENALTY, COST OR FINE AS SET FORTH IN A
 COPY OF THE JUDGMENT CERTIFIED BY THE MUNICIPAL COUNSEL TO  THE  COMMIS-
 SIONER  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  ACCORDING
 WITH  THIS  SECTION  SHALL BE LEVIED, ENFORCED AND COLLECTED IN THE SAME
 MANNER, BY THE SAME PROCEEDINGS, AT THE SAME TIME, UNDER THE SAME PENAL-
 TIES 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 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 PRAC-
 TICE  LAW  AND RULES. THE NOTICE SHALL INCLUDE THE DATE OR DATES OF SUCH
 VIOLATIONS, THE DESCRIPTION OF THE VIOLATIONS, THE AMOUNT OWED, A STATE-
 MENT 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 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.
   8. TENANTS. PRIOR TO THE PLACEMENT OF ANY PROPERTY  WITH  UNPAID  CODE
 VIOLATIONS  ON THE TAX LEVY, THE MUNICIPALITY SHALL DEVELOP A PROGRAM TO
 ASSIST TENANTS RESIDING IN A DWELLING AT RISK FOR TAX FORECLOSURE DUE TO
 UNPAID 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  OR
 LANDLORD  FROM ENTERING INTO A PAYMENT PLAN WITH A MUNICIPALITY FOR PAST
 AMOUNTS DUE FOR 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.  AN APPEAL OF THIS DETERMINATION MAY
 BE MADE TO THE MUNICIPALITY'S ZONING BOARD OF  APPEALS  OR  OTHER  LOCAL
 ADMINISTRATIVE  BODY  AS  PROVIDED  FOR IN LOCAL LAW. THE FINAL DETERMI-
 NATION MADE BY THE ADMINISTRATIVE BODY SHALL BE REVIEWABLE  PURSUANT  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 CODE VIOLATIONS  UNDER  ANY
 FORM FOR RECEIVERSHIP OR A MECHANICS LIEN.
 S. 434                              3
 
   11.  PAYMENT  PRIOR  TO  AUCTION.  (A)  IF  THE  BALANCE OWED FOR 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 BOTH UNPAID TAXES AND 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 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 CODE VIOLATIONS AND THE COSTS AND ATTORNEYS  FEES  INCURRED  IN  THE
 COLLECTION OF THE FEES BY THE MUNICIPALITIES.
   13.  BALANCE  DUE.  IF  AFTER  AN  AUCTION  A  BALANCE IS DUE FOR 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.
   § 2. This act shall take effect immediately.