Assembly Bill A9116

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9116
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                            September 26, 2025
                                ___________
 
 Introduced  by  M.  of A. BICHOTTE HERMELYN -- read once and referred to
   the Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to the collection
   of monies owed for unpaid real property tax liens and water and  sewer
   charges;  to  amend the state finance law, in relation to establishing
   the homeowner protection fund; to prohibit municipalities from convey-
   ing tax liens on real property to any private entity, trust, or third-
   party servicer; and to repeal certain provisions of the real  property
   tax  law and the administrative code of the city of New York, relating
   to foreclosure of real property tax liens
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "community wealth and homeownership protection act".
   § 2. Legislative intent. The legislature finds that the sale of  prop-
 erty tax liens to private entities has disproportionately harmed low-in-
 come,  elderly, and Black and brown homeowners, leading to displacement,
 foreclosure, and the erosion of generational wealth.  This  act  affirms
 the  state's  commitment to equitable taxation, community stability, and
 the protection of homeownership.
   § 3. Prohibition of property tax lien sales. (a)  Notwithstanding  any
 other provision of law, no municipality, including the city of New York,
 shall  sell,  assign, transfer, or otherwise convey any tax lien on real
 property to any private entity, trust, or third-party servicer.
   (b) Any existing municipal authority to  conduct  tax  lien  sales  is
 hereby revoked.
   (c)  No  future  legislation,  local law, or administrative rule shall
 authorize the sale of property tax liens unless  expressly  approved  by
 the state legislature through a two-thirds majority vote.
   §  4. Titles 3, 5 and 6 of article 11 of the real property tax law are
 REPEALED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13780-01-5
              

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   § 5. Sections 11-319,  11-320,  11-321,  11-321.1,  11-322,  11-322.1,
 11-323,  11-324, 11-327, 11-328, 11-330, 11-331, 11-332, 11-333, 11-334,
 11-335, 11-336, 11-337,  11-338,  11-339,  11-340,  11-341,  11-342  and
 11-347  and chapter 4 of title 11 of the administrative code of the city
 of New York are REPEALED.
   §  6.  Subdivision  1  of  section 202 of the real property tax law is
 amended by adding a new paragraph (q) to read as follows:
   (Q) DEVELOP A MODEL PROGRAM TO COLLECT  UNPAID  REAL  PROPERTY  TAXES,
 SCHOOL TAXES AND WATER AND SEWER CHARGES AND A GRANT PROGRAM AS PROVIDED
 IN TITLE THREE OF ARTICLE ELEVEN OF THIS CHAPTER.
   §  7.  Article  11 of the real property tax law is amended by adding a
 new title 3 to read as follows:
                                  TITLE 3
                            COLLECTION MEASURES
 SECTION 1120. COLLECTION.
         1121. GRANTS.
   § 1120. COLLECTION. THE  COMMISSIONER  OF  TAXATION  AND  FINANCE,  IN
 CONSULTATION  WITH  THE STATE COMPTROLLER, SHALL DEVELOP A MODEL PROGRAM
 TO COLLECT UNPAID REAL PROPERTY AND SCHOOL TAXES, AND  WATER  AND  SEWER
 CHARGES, WITHOUT TAX LIEN SALES. EACH MUNICIPALITY COLLECTING REAL PROP-
 ERTY  OR  SCHOOL TAXES SHALL ADOPT AND IMPLEMENT THE PROGRAM IN ITS REAL
 PROPERTY TAX JURISDICTION.
   § 1121. GRANTS. 1.  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE,  IN
 CONSULTATION  WITH  THE STATE COMPTROLLER, SHALL DEVELOP AND IMPLEMENT A
 GRANT PROGRAM TO ASSIST COUNTIES AND, IN THE CASE  OF  A  COUNTY  WHOLLY
 CONTAINED  WITHIN  A  CITY, SUCH CITY, IN IMPLEMENTING REAL PROPERTY TAX
 COLLECTION PROGRAMS AS AN ALTERNATIVE TO SELLING LIENS ON REAL  PROPERTY
 DUE  TO  UNPAID  REAL  PROPERTY  TAXES,  SCHOOL TAXES OR WATER AND SEWER
 CHARGES ASSESSED TO THE PROPERTY,  INCLUDING  LEGAL  ASSISTANCE,  ESTATE
 PLANNING, AND OUTREACH TO TAX-DISTRESSED HOMEOWNERS.
   2.  THE  ATTORNEY GENERAL SHALL ESTABLISH THE APPLICATION CRITERIA AND
 QUALIFICATIONS FOR GRANT RECIPIENTS.
   3. THE PROGRAM SHALL PRIORITIZE GRANTS  TO  MUNICIPALITIES  WITH  HIGH
 RATES OF TAX LIEN SALES PRIOR TO THE EFFECTIVE DATE OF THIS TITLE.
   4.  FUNDS  RECEIVED  BY  A COUNTY OR CITY THROUGH THE PROGRAM SHALL BE
 USED TO SUPPLEMENT AND NOT SUPPLANT ANY LOCAL FUNDS WHICH SUCH COUNTY OR
 CITY WOULD OTHERWISE HAVE HAD TO EXPEND FOR THE PROVISION OF REAL  PROP-
 ERTY TAX COLLECTION PROGRAMS.
   §  8. The state finance law is amended by adding a new section 97-vvvv
 to read as follows:
   § 97-VVVV. HOMEOWNER PROTECTION FUND. 1. THERE IS  HEREBY  ESTABLISHED
 IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF TAXATION
 AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE HOMEOWNER PROTECTION FUND.
   2.  SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE
 OF SUCH FUND, ALL OTHER MONEYS REQUIRED TO BE PAID INTO OR  CREDITED  TO
 SUCH FUND, AND ALL MONEYS RECEIVED BY THE FUND OR DONATED TO IT.
   3.  MONIES  IN  THE  FUND SHALL BE USED TO IMPLEMENT THE GRANT PROGRAM
 DESCRIBED IN SECTION ELEVEN HUNDRED TWENTY-ONE OF THE REAL PROPERTY  TAX
 LAW.
   4.  MONIES  IN THE FUND SHALL BE KEPT SEPARATE FROM AND NOT COMMINGLED
 WITH OTHER FUNDS HELD IN THE CUSTODY OF THE COMPTROLLER.
   5. MONIES IN THE FUND SHALL BE PAYABLE FROM THE FUND ON THE AUDIT  AND
 WARRANT  OF  THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE
 COMMISSIONER OF TAXATION AND FINANCE.
   § 9. Severability. If any clause,  sentence,  paragraph,  subdivision,
 section  or part of this act shall be adjudged by any court of competent
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 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder thereof, but shall be confined in its operation
 to the clause, sentence, paragraph, subdivision, section or part thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered. It is hereby declared to be the intent of the legislature
 that this act would have been enacted even if  such  invalid  provisions
 had not been included herein.
   § 10. This act shall take effect one year after it shall have become a
 law  and  shall apply to tax and water and sewer assessments made on and
 after such effective date. Effective immediately, the  addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.