S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8793
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 5, 2025
                                ___________
 
 Introduced by M. of A. KAY -- read once and referred to the Committee on
   Real Property Taxation
 
 AN  ACT  in relation to authorizing the village of Bloomingburg to enter
   into a contract to sell or pledge as collateral for a loan some or all
   of the delinquent liens held by such village to  a  private  party  or
   engage  a  private  party to collect some or all of the delinquent tax
   liens held by it
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Notwithstanding  any provision of any general, special or
 local law to the contrary, the village of Bloomingburg may enter into  a
 contract to sell some or all of the delinquent tax liens held by it to a
 private party, subject to the following conditions:
   (a)  The  consideration  to  be  paid for a sale of the delinquent tax
 liens held by it may be more or less than the face  amount  of  the  tax
 liens sold.
   (b)  Property owners shall be given at least 30 days advance notice of
 sale in the same form and manner as is  provided  by  subdivision  2  of
 section  1190  of  the  real  property  tax law. Failure to provide such
 notice or the failure of the addressee to receive the same shall not  in
 any  way  affect  the validity of any sale of a tax lien or tax liens or
 the validity of the taxes or interest prescribed  by  law  with  respect
 thereto.
   (c)  The village of Bloomingburg shall set the terms and conditions of
 the contract of sale or loan.
   (d) The tax lien purchaser must 30 days prior to the  commencement  of
 any  foreclosure action provide to the village of Bloomingburg a list of
 liens to be foreclosed. The village of Bloomingburg  may,  at  its  sole
 option  and  discretion,  repurchase  a lien or liens on the foreclosure
 list from the tax lien purchaser. The  repurchase  price  shall  be  the
 amount  of  the  lien  or liens plus any accrued interest and collection
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13318-01-5
              

 A. 8793                             2
 
 fees incurred by the tax lien purchaser through the date of  repurchase.
 The tax lien purchaser shall provide the foreclosure list to the village
 of  Bloomingburg,  along  with  the  applicable repurchase price of each
 lien,  by  certified mail, and the village of Bloomingburg shall have 30
 days from receipt to notify the tax lien  purchaser  of  its  option  to
 purchase  one  or more of the liens. If the village of Bloomingburg opts
 to purchase the lien, it shall provide payment within 30 days of receipt
 of the repurchase price of said lien or liens. If the village of  Bloom-
 ingburg shall fail to repurchase the lien or liens the tax lien purchas-
 er  shall  have  the  right to commence a foreclosure action immediately
 upon notice from the village of Bloomingburg of its refusal  or  at  the
 expiration of the 30-day review period whichever occurs first.
   (e)  The  sale of a tax lien pursuant to this act shall not operate to
 shorten the otherwise applicable redemption period or change the  other-
 wise applicable interest rate.
   (f)  Upon  the  expiration of the redemption period prescribed by law,
 the purchaser of a delinquent tax lien, or its  successors  or  assigns,
 may  foreclose  the  lien  as  in  an  action to foreclose a mortgage as
 provided in section 1194 of the real property tax law. The procedure  in
 such  action shall be the procedure prescribed by article 13 of the real
 property actions and proceedings law for the foreclosure  of  mortgages.
 At any time following the commencement of an action to foreclose a lien,
 the amount required to redeem the lien, or the amount received upon sale
 of  a property, shall include reasonable and necessary collection costs,
 attorneys' fees, legal costs, allowances, and disbursements.
   (g) The provisions of title 5 of article 11 of the real  property  tax
 law  shall  apply so far as is practicable to a contract for the sale of
 tax liens pursuant to this act.
   § 2. Notwithstanding any provision of any general,  special  or  local
 law  to  the  contrary,  the  village  of  Bloomingburg may enter into a
 contract to pledge as collateral for a loan some or all  of  the  delin-
 quent  tax  liens held by it to a third party or engage a third party to
 collect some or all of the delinquent tax liens held by  it  subject  to
 the following conditions:
   (a)  Any  loan provided under this section shall bear an interest rate
 to be determined by the village of Bloomingburg.
   (b) Any contract for the collection of delinquent tax  liens  the  fee
 paid  by  the  village  of  Bloomingburg  shall  not  exceed  10% of the
 outstanding balance of the tax lien being collected and said  fee  shall
 be borne by the delinquent taxpayer.
   § 3. This act shall take effect immediately.