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SECTION 606
Extension of the time for payment and suspension of payment of real estate tax liens
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 13
§ 606. Extension of the time for payment and suspension of payment of
real estate tax liens. 1. As used in this section the term abandoned
multiple dwelling shall mean a class A or class B multiple dwelling
containing in the aggregate not less than three dwelling units, at least
eighty percent of the occupied dwelling units of which are occupied by
persons or families of low income as defined in subdivision ten of
section twelve of this chapter and which the supervising agency shall
find has been abandoned by the owner or owners thereof. Any such finding
shall be based on one or more of the following conditions:

(a) Failure to make any payments in respect of real estate taxes on
said multiple dwelling for twelve months or more, and a continuing
failure to maintain essential services, or failure to remove violations
of the local housing maintenance code or other statutes applicable to
multiple dwellings, where, as a result of either such failure the
multiple dwelling has become dangerous to the life, health and safety of
its occupants; or

(b) Failure to make any payments in respect of real estate taxes on
said multiple dwelling for twelve months or more and failure to attempt
to collect rent from a majority of the tenants in lawful occupancy of
dwelling units in such multiple dwelling for a period of three
consecutive months or more; or

(c) The entry of a judgment in favor of the petitioning tenants in a
proceeding instituted pursuant to article seven-A of the real property
actions and proceedings law, and the failure by the owner or other
respondent to secure the removal of the administrator appointed pursuant
to such judgment within ninety days after his appointment and
qualification; or

(d) The entry or filing of an order appointing a receiver pursuant to
section three hundred nine of the multiple dwelling law or any other law
authorizing the appointment of a municipality or any agency or official
thereof as receiver of a multiple dwelling, and the failure by the owner
or other party entitled thereto to secure the removal or discharge of
such receiver within ninety days thereafter.

2. Whenever a housing project (i) of a housing development fund
company organized pursuant to the provisions of article eleven of this
chapter, (ii) of a company organized pursuant to the provisions of
article two, four or five of this chapter, (iii) of a company or owner
aided by article three, eight, twelve, fourteen or fifteen of this
chapter, or (iv) is to be financed by a mortgage made or insured by the
federal government or any agency or instrumentality thereof or a
mortgage loan entered into in conjunction with a housing assistance
payments contract in connection with new construction or substantial
rehabilitation pursuant to section eight of the United States Housing
Act of 1937, as amended, is premised upon the acquisition, ownership,
rehabilitation and management of an abandoned multiple dwelling, as said
term is defined in subdivision one of this section, the supervising
agency may, subject to the requirements of subdivision four of this
section, enter into an agreement with such housing company or owner,
which agreement shall provide for one or more of the following with
respect to accrued real estate tax liens and municipal charges arising
by operation of law upon the properties upon which such abandoned
multiple dwelling is located:

(a) The extension of the time for the payment of all or part of
accrued real estate tax liens and municipal charges arising by operation
of law by spreading the payment thereof over a period or periods of time
to commence presently or at some future time, but in no event beyond
forty years from the date of such agreement;

(b) The elimination of interest and penalties on all or part of the
unpaid real estate tax liens and municipal charges arising by operation
of law;

(c) The suspension of the payment of all or a part of accrued real
estate tax liens and municipal charges arising by operation of law for a
period not to exceed forty years from the date of such agreement;

(d) The elimination of all or part of accrued real estate tax liens
and municipal charges arising by operation of law provided that in
consideration of such elimination the municipality may require the
housing company to convey to it by deed an indefeasibly vested interest
in the real property of the project, the value of which shall be set
forth in such agreement but shall in no event be less than the amount of
real estate tax liens and municipal charges arising by operation of law
eliminated, to take effect as provided therein but not later than forty
years from the date thereof.

3. No such agreement for the extension or suspension of payment or
elimination of accrued real estate tax liens and municipal charges
arising by operation of law shall be entered into until the supervising
agency shall first have made written findings supported by satisfactory
evidence that:

(a) The project is an abandoned multiple dwelling, as defined in
subdivision one of this section, and the owner who so abandoned such
dwelling has no direct or indirect interest or participation in the
project; and

(b) The housing company has available or has a reasonable expectation
of obtaining from public or private sources, or both, adequate financing
to acquire and rehabilitate the property; and

(c) The housing company possesses or has given satisfactory evidence
of its ability and intention to employ adequate competent personnel
capable of rehabilitating, supervising the rehabilitation and managing
and operating the property in accordance with the standards and
conditions prescribed by this section and by the supervising agency; and

(d) The proposed rehabilitation will effectuate the removal of all
housing and other violations of record against the property as well as
all incipient violations disclosed by inspections of the supervising
agency and other agencies of the municipality charged with enforcement
of applicable statutes and ordinances prescribing standards of
construction and housing maintenance and will result in the removal of
all unsafe and unsanitary conditions; and

(e) The proposed rehabilitation will not require the removal of or
relocation of any residential tenants in occupancy, other than
temporarily, during the period of construction, in which case suitable
arrangements have been made for such temporary relocation; and

(f) In order for the housing company to acquire the property and to
rehabilitate, operate and maintain the same as provided herein, accrued
real estate tax liens and municipal charges arising by operation of law
affecting the property must be extended, suspended or eliminated, in
whole or in part, as provided in subdivision two of this section, which
finding shall set forth the exact amount of accrued real estate tax
liens and municipal charges arising by operation of law and set forth
full details as to the extension, suspension and elimination thereof
required in order for the rents or carrying charges to be fixed and
established by the supervising agency or as otherwise provided pursuant
to the provisions of article two, three, four, five, eight, eleven,
twelve, fourteen or fifteen of this chapter, or in connection with a
mortgage made or insured by the federal government or any agency or
instrumentality thereof or a mortgage loan entered into in conjunction
with a housing assistance payments contract in connection with new
construction or substantial rehabilitation pursuant to section eight of
the United States Housing Act of 1937, as amended, whichever may be
applicable, and shall further contain the calculations and assumptions
upon which such finding is based and shall state that the projected
rents or carrying charges are as high as the present occupants can
reasonably afford, and as can reasonably be charged and collected for
comparable housing accommodations in the immediate vicinity of the
abandoned multiple dwelling; and

(g) The abandoned multiple dwelling is located in a deteriorated or
deteriorating neighborhood or one imminently threatened with
deterioration, and that unless the project is carried out, the property
will become unsafe and unfit for continued human habitation in the near
future, and that by reason of its present and probable future condition,
the property is exerting or will in the near future, exert a deleterious
influence upon the block in which it is located and upon the blocks,
neighborhood and area immediately surrounding and adjacent thereto.

4. The agreement, with respect to a housing development fund company,
shall contain all of the provisions required by section five hundred
seventy-six of this chapter, and with regard to any housing company,
including such housing development fund company, shall contain such
other provisions as may be approved by the local legislative body.

5. (a) An agreement authorized by subdivisions two and four of this
section shall be submitted by the supervising agency to the local
legislative body of the municipality in which the project is to be
located, which body may determine to extend, suspend and/or eliminate
the payment of all or any part of the accrued real estate tax liens and
municipal charges arising by operation of law on the real property in
such project, but in no event beyond the limitations set forth in
subdivision two of this section. The extension, suspension or
elimination of real estate tax liens and municipal charges arising by
operation of law may include all accrued local and municipal taxes,
including assessments, water and sewer rents and sewer charges and
special ad valorem levies and all emergency repair levies but shall not
include any taxes or municipal charges accruing in respect of any parcel
for any period commencing after a date fixed by the local legislative
body, such date being not later than the projected date of substantial
completion of the rehabilitation of the building situated on such
parcel.

(b) Where the municipality acts on behalf of another taxing
jurisdiction in assessing real property for the purpose of taxation, or
in levying taxes therefor, the determination of the local legislative
body in granting such extension, suspension or elimination shall have
the effect of extending, suspending or eliminating the accrued real
estate tax liens against the real property in such project to the extent
and subject to the provisions of paragraph (a) of this subdivision.