Bill Text: NY A00228 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to establishing a new classification for properties held in condominium and cooperative form for assessment purposes.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2020-01-08 - referred to real property taxation [A00228 Detail]

Download: New_York-2019-A00228-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           228
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced by M. of A. BRAUNSTEIN, WEPRIN -- Multi-Sponsored by -- M. of
          A.  RAMOS  -- read once and referred to the Committee on Real Property
          Taxation
        AN ACT to amend the real property tax law, the  administrative  code  of
          the  city  of  New  York and the New York city charter, in relation to
          establishing a new classification of properties for properties held in
          condominium and cooperative form for assessment purposes
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 1 of section 1802 of the real property tax law,
     2  as separately amended by chapters 123 and 529 of the laws of 1990, para-
     3  graph  class  one  as  amended  by  chapter  332 of the laws of 2008, is
     4  amended to read as follows:
     5    1. All real property, for the purposes of this article, in  a  special
     6  assessing unit shall be classified as follows:
     7    Class  one: (a) all one, two and three family residential real proper-
     8          ty, including such dwellings used  in  part  for  nonresidential
     9          purposes  but which are used primarily for residential purposes,
    10          except such property held in cooperative or condominium forms of
    11          ownership other than (i) property defined in  subparagraphs  (b)
    12          and  (c)  of  this paragraph and (ii) property which contains no
    13          more than three dwelling  units  held  in  condominium  form  of
    14          ownership and which was classified within this class on a previ-
    15          ous  assessment  roll;  and  provided  that, notwithstanding the
    16          provisions of paragraph (g) of subdivision twelve of section one
    17          hundred two of this chapter, a mobile home or  a  trailer  shall
    18          not  be classified within this class unless it is owner-occupied
    19          and separately assessed; and (b) residential real  property  not
    20          more  than  three  stories in height held in condominium form of
    21          ownership, provided that no dwelling unit therein previously was
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02934-01-9

        A. 228                              2
     1          on an assessment roll as a dwelling unit in other than condomin-
     2          ium  form  of  ownership;  and  (c)  residential  real  property
     3          consisting of one family house structures owned by the occupant,
     4          situated  on land held in cooperative ownership by owner occupi-
     5          ers, provided that; (i) such house structures and  land  consti-
     6          tuted  bungalow  colonies in existence prior to nineteen hundred
     7          forty; and (ii) the land is held in  cooperative  ownership  for
     8          the  sole  purpose  of  maintaining  one  family  residences for
     9          members own use; and  (d)  all  vacant  land  located  within  a
    10          special  assessing unit which is a city (i) other than such land
    11          in the borough of Manhattan, provided that any such vacant  land
    12          which  is  not  zoned  residential  must be situated immediately
    13          adjacent to property improved with a  residential  structure  as
    14          defined in subparagraphs (a) and (b) of this paragraph, be owned
    15          by the same owner as such immediately adjacent residential prop-
    16          erty  immediately prior to and since January 1, 1989, and have a
    17          total area not exceeding 10,000 square feet; and (ii) located in
    18          the borough of Manhattan north of or adjacent to the north  side
    19          of  110th street provided such vacant land was classified within
    20          this class on the assessment roll with a taxable status date  of
    21          January  5,  2008  and the owner of such land has entered into a
    22          recorded agreement with  a  governmental  entity  on  or  before
    23          December  31,  2008 requiring construction of housing affordable
    24          to persons or families of low  income  in  accordance  with  the
    25          provisions  of  the private housing finance law. Notwithstanding
    26          the foregoing, such vacant land shall be classified according to
    27          its use on the assessment roll with a taxable status date  imme-
    28          diately   following   commencement   of  construction,  provided
    29          further, that construction pursuant  to  an  approved  plan  for
    30          affordable  housing  shall  commence  no later than December 31,
    31          2010; and (e) all vacant land located within a special assessing
    32          unit which is not a city, provided that such vacant  land  which
    33          is  not  zoned residential must be situated immediately adjacent
    34          to real property defined in subparagraph (a), (b) or (c) of this
    35          paragraph and be owned by the same person or persons who own the
    36          real property defined in such subparagraph immediately prior  to
    37          and since January 1, 2003;
    38    Class  two:  [all other] residential real property held in cooperative
    39          or condominium form of ownership  which  is  not  designated  as
    40          class  one[,  except hotels and motels and other similar commer-
    41          cial property];
    42    Class three: utility real property  and  property  subject  to  former
    43          section four hundred seventy of this chapter;
    44    Class  four:  all other real property which is not designated as class
    45          one, class two, [or] class three[.], or class five;
    46    Class five: all other residential real property which  is  not  desig-
    47          nated  as  class one, except hotels and motels and other similar
    48          commercial property, or class two.
    49    § 2. The opening paragraph of subdivision 2 of  section  1805  of  the
    50  real property tax law, as amended by chapter 586 of the laws of 1992, is
    51  amended to read as follows:
    52    The assessment roll of a special assessing unit wholly contained with-
    53  in  a city shall identify those parcels classified in class two or class
    54  five which have fewer than eleven residential units. The assessor of any
    55  such special assessing unit shall not increase  the  assessment  of  any
    56  parcel  so  identified  in  any  one  year,  as measured from the actual

        A. 228                              3
     1  assessment on the previous year's assessment roll, by  more  than  eight
     2  percent  and  shall  not  increase  such  assessment by more than thirty
     3  percent in any five-year period. The first such five-year  period  shall
     4  be  measured  from the individual assessment appearing on the assessment
     5  roll completed in nineteen hundred eighty-one  provided  that,  if  such
     6  parcel would not have been subject to the provisions of this subdivision
     7  in nineteen hundred eighty-one had this subdivision then been in effect,
     8  the  first  such  five-year period shall be measured from the first year
     9  after nineteen hundred eighty-one in which this subdivision  applied  to
    10  such  parcel  or  would have applied to such parcel had this subdivision
    11  been in effect in such year.
    12    § 3. Subdivision 6 of section 1805 of the real property  tax  law,  as
    13  added by chapter 711 of the laws of 2005, is amended to read as follows:
    14    6.  Notwithstanding  any  provision  of  law  to  the contrary, in any
    15  special assessing unit wholly contained within a  city,  beginning  with
    16  the  assessment  roll completed in two thousand five and for each subse-
    17  quent assessment roll, the assessor shall not increase the assessment of
    18  any existing property classified in class two or  class  five  that  has
    19  fewer  than  eleven  residential  units, with respect to any increase in
    20  value attributable to additions to or improvements of such property that
    21  were not reflected on the assessment roll for a previous year,  by  more
    22  than one-third of the amount that such assessment would increase, in the
    23  absence  of  this  subdivision,  with  respect  to any increase in value
    24  attributable to additions to or improvements of such property that  were
    25  not  reflected on the assessment roll for a previous year. Notwithstand-
    26  ing the provisions of subdivision five of this section, the remainder of
    27  the increase in value attributable to  such  additions  or  improvements
    28  that were not reflected on the assessment roll for a previous year shall
    29  be  subject  to the limitations on increases provided in subdivision two
    30  of this section. This subdivision shall not apply to the construction of
    31  a new building or structure. This subdivision shall not apply where,  as
    32  a  result  of such additions to or improvements of the existing property
    33  classified in class five, there are more than ten residential  units  in
    34  such property.
    35    § 4. Paragraph (f) of subdivision 1 of section 467-a of the real prop-
    36  erty tax law, as added by chapter 273 of the laws of 1996, is amended to
    37  read as follows:
    38    (f)  "Property"  means real property designated as class two, pursuant
    39  to section eighteen hundred two of this chapter[, held  in  the  cooper-
    40  ative or condominium form of ownership].
    41    § 5. Subdivision 7 of section 499-aaa of the real property tax law, as
    42  added by chapter 461 of the laws of 2008, is amended to read as follows:
    43    7.  "Eligible  building" shall mean a class one, class two [or], class
    44  four or class five real property,  as  defined  in  subdivision  one  of
    45  section  eighteen  hundred  two  of  this chapter, located within a city
    46  having a population of one million or more persons. No building shall be
    47  eligible for more than one tax abatement pursuant to this title.
    48    § 6. Subdivision 7 of section 499-aaaa of the real property  tax  law,
    49  as  added  by  chapter  473  of  the laws of 2008, is amended to read as
    50  follows:
    51    7. "Eligible building" shall mean a class one, class two  [or],  class
    52  four  or  class  five  real  property,  as defined in subdivision one of
    53  section eighteen hundred two of this  chapter,  located  within  a  city
    54  having a population of one million or more persons. No building shall be
    55  eligible for more than one tax abatement pursuant to this title.

        A. 228                              4
     1    § 7. Paragraph (b) of subdivision 3 of section 522 of the real proper-
     2  ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
     3  read as follows:
     4    (b)  in  a  special  assessing  unit,  the  determination, pursuant to
     5  section eighteen hundred two of this chapter, of whether  real  property
     6  is included in class one, two, three [or], four or five.
     7    §  8. Subdivision 10 of section 523-b of the real property tax law, as
     8  added by chapter 593 of the laws of 1998, is amended to read as follows:
     9    10. On or before April first, each year the commission shall  mail  to
    10  each  applicant,  who has filed an application for the correction of the
    11  assessment, a notice of the commission's determination  of  such  appli-
    12  cant's  assessment.  Such  notice shall also contain the statement as to
    13  the final determination of the assessment review commission, or a state-
    14  ment that the commission has not yet made  a  determination  as  to  the
    15  final  assessed valuation which shall be made as soon as the petitioners
    16  application is reviewed or heard. If the applicants property is a  prop-
    17  erty  defined in subdivision one of section eighteen hundred two of this
    18  chapter as "Class 1", the commissions determination  shall  contain  the
    19  statement:  "If  you  are  dissatisfied  with  the  determination of the
    20  Assessment Review Commission and you are the owner  of  a  one,  two  or
    21  three family residential structure or residential real property not more
    22  than  three  stories  in  height  held in condominium form of ownership,
    23  provided that no dwelling unit therein previously was on  an  assessment
    24  roll as a dwelling unit in other than condominium form of ownership, and
    25  you  reside  at  such  residence,  you  may seek judicial review of your
    26  assessment either under title one of article seven of the real  property
    27  tax  law  or  under small claims assessment review law provided by title
    28  one-A of article seven of the real property tax law." Such notice  shall
    29  also  state  [that]  the last date to file petitions for judicial review
    30  and the location where small claims assessment review petitions  may  be
    31  obtained.
    32    Each  applicant that has filed an application of a property as defined
    33  in subdivision one of section eighteen hundred two of  this  chapter  as
    34  "Class  2",  "Class  3"  [or],  "Class  4" or "Class 5", shall receive a
    35  notice as to the final determination of the assessment review commission
    36  or a statement that the commission has not yet made a  determination  as
    37  to the final assessed valuation which shall be made as soon as the peti-
    38  tioners application is reviewed or heard. Such applicants determinations
    39  shall  contain the statement: "If you are dissatisfied with the determi-
    40  nation of the Assessment Review Commission you may seek judicial  review
    41  of your assessment under title one of article seven of the real property
    42  tax  law."  Such notice shall also state the last date to file petitions
    43  for judicial review. A final determination when rendered  shall  contain
    44  the  same  statement.  Failure to mail any such notice or failure of the
    45  applicant to receive the same shall  not  affect  the  validity  of  the
    46  assessment.
    47    § 9. Paragraph (b) of subdivision 3 of section 701 of the real proper-
    48  ty  tax  law, as added by chapter 714 of the laws of 1982, is amended to
    49  read as follows:
    50    (b) In a  special  assessing  unit,  the  determination,  pursuant  to
    51  section  eighteen  hundred two of this chapter, of whether real property
    52  is included in class one, two, three [or], four or five.
    53    § 10. Subparagraph 2 of paragraph (a) of subdivision 3 of section  720
    54  of  the  real property tax law, as amended by chapter 679 of the laws of
    55  1986, is amended to read as follows:

        A. 228                              5
     1    (2) "Major type of property" in special assessing units,  for  assess-
     2  ments  on  rolls completed after December thirty-first, nineteen hundred
     3  eighty-one, shall mean classes one, two, three [and], four and  five  as
     4  defined in subdivision one of section eighteen hundred two of this chap-
     5  ter.
     6    §  11.  Subdivisions e and f of section 11-208.1 of the administrative
     7  code of the city of New York, subdivision e  as  amended  by  local  law
     8  number 41 of the city of New York for the year 1986 and subdivision f as
     9  amended  by  chapter  385  of  the  laws of 2006, are amended to read as
    10  follows:
    11    e. As used in this section, the term "income-producing property" means
    12  property owned for the purpose of securing an income from  the  property
    13  itself,  but  shall not include property with an assessed value of forty
    14  thousand dollars or less, or  residential  property  containing  ten  or
    15  fewer  dwelling  units  or property classified in class one [or], two or
    16  five as defined in  article  eighteen  of  the  real  property  tax  law
    17  containing six or fewer dwelling units and one retail store.
    18    f.  Except  in  accordance  with proper judicial order or as otherwise
    19  provided by law, it shall be unlawful for the commissioner, any  officer
    20  or  employee  of  the  department,  the  president  or a commissioner or
    21  employee of the tax commission, any person engaged or  retained  by  the
    22  department  or  the  tax commission on an independent contract basis, or
    23  any person, who, pursuant to this section, is permitted to  inspect  any
    24  income and expense statement or to whom a copy, an abstract or a portion
    25  of  any  such  statement  is  furnished, to divulge or make known in any
    26  manner except as provided in this  subdivision,  the  amount  of  income
    27  and/or  expense  or  any  particulars set forth or disclosed in any such
    28  statement required under this section. The commissioner,  the  president
    29  of the tax commission, or any commissioner or officer or employee of the
    30  department or the tax commission charged with the custody of such state-
    31  ments  shall not be required to produce any income and expense statement
    32  or evidence of anything contained in them in any action or proceeding in
    33  any court, except on behalf of the department  or  the  tax  commission.
    34  Nothing  herein  shall be construed to prohibit the delivery to an owner
    35  or his or her duly authorized representative of a certified copy of  any
    36  statement  filed  by  such owner pursuant to this section or to prohibit
    37  the publication of statistics so classified as to prevent the  identifi-
    38  cation  of  particular statements and the items thereof, or making known
    39  aggregate income and expense information disclosed with respect to prop-
    40  erty classified as class four as defined in article eighteen of the real
    41  property tax law without identifying information about individual  leas-
    42  es,  or  making  known  a range as determined by the commissioner within
    43  which the income and expenses of a property classified as class  two  or
    44  class  five falls, or the inspection by the legal representatives of the
    45  department or of the tax commission of the statement of  any  owner  who
    46  shall  bring  an  action to correct the assessment. Any violation of the
    47  provisions of this subdivision shall be punished by a fine not exceeding
    48  one thousand dollars or by imprisonment not exceeding one year, or both,
    49  at the discretion of the court, and if the offender  be  an  officer  or
    50  employee  of the department or the tax commission, the offender shall be
    51  dismissed from office.
    52    § 12. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319  of
    53  the  administrative  code  of the city of New York, subdivisions a, a-1,
    54  a-2 and a-3 as amended and subdivision a-5 as added by local law  number
    55  15  of  the  city  of  New York for the year 2011 and subdivision a-4 as

        A. 228                              6
     1  amended by local law number 4 of the city of New York for the year 2017,
     2  are amended to read as follows:
     3    a.  A  tax  lien  or  tax  liens on a property or any component of the
     4  amount thereof may be sold by the city as authorized by subdivision b of
     5  this section, when such tax lien or tax liens shall have remained unpaid
     6  in whole or in part for one year, provided, however, that a tax lien  or
     7  tax  liens on any class one property or [on] class two property [that is
     8  a residential condominium or residential cooperative], as  such  classes
     9  of  property  are defined in subdivision one of section eighteen hundred
    10  two of the real property tax law, may be sold by the city only when  the
    11  real  property  tax  component  of such tax lien or tax liens shall have
    12  remained unpaid in whole or in part for three years or, in the  case  of
    13  any  class  [two] five residential property owned by a company organized
    14  pursuant to article XI of the state private housing finance law [that is
    15  not a residential condominium or a  residential  cooperative],  as  such
    16  class  of  property  is  defined  in subdivision one of section eighteen
    17  hundred two of the real property tax law, for two years, and  equals  or
    18  exceeds  the  sum  of five thousand dollars or, in the case of abandoned
    19  class one property [or], abandoned class two property [that is  a  resi-
    20  dential  condominium  or  residential cooperative], for eighteen months,
    21  and after such sale, shall be transferred, in  the  manner  provided  by
    22  this chapter, and provided, further, however, that (i) the real property
    23  tax component of such tax lien may not be sold pursuant to this subdivi-
    24  sion  on any residential real property in class one that is receiving an
    25  exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
    26  pursuant  to  section  four hundred fifty-eight of the real property tax
    27  law with respect to real property purchased with  payments  received  as
    28  prisoner  of  war  compensation  from  the  United States government, or
    29  pursuant to paragraph (b) or (c) of  subdivision  two  of  section  four
    30  hundred  fifty-eight-a  of the real property tax law, or where the owner
    31  of such residential real property in class one is receiving benefits  in
    32  accordance  with department of finance memorandum 05-3, or any successor
    33  memorandum thereto, relating to active duty military personnel, or where
    34  the owner of such residential  real  property  in  class  one  has  been
    35  allowed  a  credit pursuant to subsection (e) of section six hundred six
    36  of the tax law for the calendar year in which  the  date  of  the  first
    37  publication,  pursuant  to subdivision a of section 11-320 of this chap-
    38  ter, of the notice of sale, occurs or for the calendar year  immediately
    39  preceding such date and (ii) the sewer rents component, sewer surcharges
    40  component  or  water  rents  component  of such tax lien may not be sold
    41  pursuant to this subdivision on any one family residential real property
    42  in class one or on any two or three family residential real property  in
    43  class one that is receiving an exemption pursuant to section 11-245.3 or
    44  11-245.4  of this title, or pursuant to section four hundred fifty-eight
    45  of the real property tax law with respect  to  real  property  purchased
    46  with  payments  received as prisoner of war compensation from the United
    47  States government, or pursuant to paragraph (b) or  (c)  of  subdivision
    48  two  of section four hundred fifty-eight-a of the real property tax law,
    49  or where the owner of any two or three family residential real  property
    50  in  class  one  is  receiving  benefits in accordance with department of
    51  finance memorandum 05-3, or any successor memorandum  thereto,  relating
    52  to  active  duty  military  personnel,  or where the owner of any two or
    53  three family residential real property in class one has been  allowed  a
    54  credit  pursuant to subsection (e) of section six hundred six of the tax
    55  law for the calendar year in which the date of  the  first  publication,
    56  pursuant  to  subdivision  a  of  section 11-320 of this chapter, of the

        A. 228                              7
     1  notice of sale, occurs or for the calendar  year  immediately  preceding
     2  such  date.  A  tax  lien  or  tax liens on any property classified as a
     3  [class two property, except a class two property that is  a  residential
     4  condominium or residential cooperative, or a class two residential prop-
     5  erty  owned  by  a company organized pursuant to article XI of the state
     6  private housing finance law that is not a residential condominium  or  a
     7  residential cooperative, or] class three property, or a class five prop-
     8  erty  owned  by  a company organized pursuant to article XI of the state
     9  private housing finance law as such classes of property are  defined  in
    10  subdivision one of section eighteen hundred two of the real property tax
    11  law,  shall  not  be  sold by the city unless such tax lien or tax liens
    12  include a real property tax component as of the date of the first publi-
    13  cation, pursuant to subdivision a of section 11-320 of this chapter,  of
    14  the notice of sale. Notwithstanding any provision of this subdivision to
    15  the contrary, any such tax lien or tax liens that remain unpaid in whole
    16  or  in  part  after such date may be sold regardless of whether such tax
    17  lien or tax liens include a real property tax component. A tax  lien  or
    18  tax  liens  on  a  property classified as a class four property, as such
    19  class of property is defined in  subdivision  one  of  section  eighteen
    20  hundred  two of the real property tax law, shall not be sold by the city
    21  unless such tax lien or tax liens include a real property tax  component
    22  or  sewer  rents  component or sewer surcharges component or water rents
    23  component or emergency repair charges component,  where  such  emergency
    24  repair  charges  accrued on or after January first, two thousand six and
    25  are made a lien pursuant to section 27-2144 of this code, as of the date
    26  of the first publication, pursuant to subdivision a of section 11-320 of
    27  this chapter, of the notice of sale, provided,  however,  that  any  tax
    28  lien or tax liens that remain unpaid in whole or in part after such date
    29  may  be  sold regardless of whether such tax lien or tax liens include a
    30  real property tax component, sewer  rents  component,  sewer  surcharges
    31  component,  water rents component or emergency repair charges component.
    32  For purposes of this subdivision, the words "real  property  tax"  shall
    33  not  include  an  assessment or charge upon property imposed pursuant to
    34  section 25-411 of [the administrative] this code. A sale of a  tax  lien
    35  or  tax liens shall include, in addition to such lien or liens that have
    36  remained unpaid in whole or in part for one year, or, in the case of any
    37  class one property or class two property [that is a  residential  condo-
    38  minium or residential cooperative], when the real property tax component
    39  of  such lien or liens has remained unpaid in whole or in part for three
    40  years, or, in the case of any  class  [two]  five  residential  property
    41  owned by a company organized pursuant to article XI of the state private
    42  housing finance law [that is not a residential condominium or a residen-
    43  tial  cooperative], when the real property tax component of such lien or
    44  liens has remained unpaid in whole or in part for two years, and  equals
    45  or  exceeds  the  sum  of five thousand dollars, any taxes, assessments,
    46  sewer rents, sewer surcharges, water rents, any other charges  that  are
    47  made  a lien subject to the provisions of this chapter, the costs of any
    48  advertisements and notices given pursuant to  this  chapter,  any  other
    49  charges that are due and payable, a surcharge pursuant to section 11-332
    50  of this chapter, and interest and penalties thereon or such component of
    51  the  amount  thereof  as  shall  be  determined  by  the commissioner of
    52  finance. The commissioner  of  finance  may  promulgate  rules  defining
    53  "abandoned" property, as such term is used in this subdivision.
    54    a-1. A subsequent tax lien or tax liens on a property or any component
    55  of  the amount thereof may be sold by the city pursuant to this chapter,
    56  provided, however, that notwithstanding any provision in this chapter to

        A. 228                              8
     1  the contrary, such tax lien or tax  liens  may  be  sold  regardless  of
     2  whether  such  tax lien or tax liens have remained unpaid in whole or in
     3  part for one year and, notwithstanding any provision in this chapter  to
     4  the contrary, in the case of any class one property or class two proper-
     5  ty  [that  is  a residential condominium or residential cooperative] or,
     6  beginning January first, two thousand twelve, in the case of  any  class
     7  [two] five residential property owned by a company organized pursuant to
     8  article XI of the state private housing finance law [that is not a resi-
     9  dential  condominium or a residential cooperative], such tax lien or tax
    10  liens may be sold if the real property tax component of such tax lien or
    11  tax liens has remained unpaid in whole or in  part  for  one  year,  and
    12  provided,  further, however, that (i) the real property tax component of
    13  such tax lien may not be sold pursuant to this subdivision on any  resi-
    14  dential real property in class one that is receiving an exemption pursu-
    15  ant  to  section  11-245.3  or  11-245.4  of  this title, or pursuant to
    16  section four hundred fifty-eight of  the  real  property  tax  law  with
    17  respect to real property purchased with payments received as prisoner of
    18  war compensation from the United States government, or pursuant to para-
    19  graph   (b)   or   (c)  of  subdivision  two  of  section  four  hundred
    20  fifty-eight-a of the real property tax law, or where the owner  of  such
    21  residential  real property in class one is receiving benefits in accord-
    22  ance with department of finance memorandum 05-3, or any successor  memo-
    23  randum thereto, relating to active duty military personnel, or where the
    24  owner  of such residential real property in class one has been allowed a
    25  credit pursuant to subsection (e) of section six hundred six of the  tax
    26  law  for  the  calendar year in which the date of the first publication,
    27  pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
    28  notice  of  sale,  occurs or for the calendar year immediately preceding
    29  such date and (ii) the sewer rents component, sewer surcharges component
    30  or water rents component of such tax lien may not be  sold  pursuant  to
    31  this  subdivision  on  any one family residential real property in class
    32  one or on any two or three family residential real property in class one
    33  that is receiving an exemption pursuant to section 11-245.3 or  11-245.4
    34  of  this  title,  or pursuant to section four hundred fifty-eight of the
    35  real property tax law with  respect  to  real  property  purchased  with
    36  payments received as prisoner of war compensation from the United States
    37  government,  or  pursuant  to paragraph (b) or (c) of subdivision two of
    38  section four hundred fifty-eight-a of the  real  property  tax  law,  or
    39  where  the owner of any two or three family residential real property in
    40  class one is receiving benefits in accordance with department of finance
    41  memorandum 05-3, or any successor memorandum thereto, relating to active
    42  duty military personnel, or where the owner of any two or  three  family
    43  residential  real property in class one has been allowed a credit pursu-
    44  ant to subsection (e) of section six hundred six of the tax law for  the
    45  calendar  year  in  which the date of the first publication, pursuant to
    46  subdivision a of section 11-320 of this chapter, of the notice of  sale,
    47  occurs  or  for  the  calendar year immediately preceding such date. For
    48  purposes of this subdivision, the  term  "subsequent  tax  lien  or  tax
    49  liens" shall mean any tax lien or tax liens on property that become such
    50  on  or after the date of sale of any tax lien or tax liens on such prop-
    51  erty that have been sold pursuant to this  chapter,  provided  that  the
    52  prior  tax  lien  or tax liens remain unpaid as of the date of the first
    53  publication, pursuant to subdivision a of section 11-320 of  this  chap-
    54  ter,  of  the  notice of sale of the subsequent tax lien or tax liens. A
    55  subsequent tax lien or tax liens on any property classified as a  [class
    56  two  property,  except a class two property that is a residential condo-

        A. 228                              9

     1  minium or residential cooperative, or a class two  residential  property
     2  owned by a company organized pursuant to article XI of the state private
     3  housing  finance law that is not a residential condominium or a residen-
     4  tial  cooperative,  or]class  three  property,  or a class five property
     5  owned by a company organized pursuant to article XI of the state private
     6  housing finance law, as such classes of property are defined in subdivi-
     7  sion one of section eighteen hundred two of the real property  tax  law,
     8  shall  not be sold by the city unless such tax lien or tax liens include
     9  a real property tax component as of the date of the  first  publication,
    10  pursuant  to  subdivision  a  of  section 11-320 of this chapter, of the
    11  notice of sale. Notwithstanding any provision of this subdivision to the
    12  contrary, any such tax lien or tax liens that remain unpaid in whole  or
    13  in  part after such date may be sold regardless of whether such tax lien
    14  or tax liens include a real property tax  component.  A  subsequent  tax
    15  lien  or tax liens on a property classified as a class four property, as
    16  such class of property is defined in subdivision one of section eighteen
    17  hundred two of the real property tax law, shall not be sold by the  city
    18  unless  such tax lien or tax liens include a real property tax component
    19  or sewer rents component or sewer surcharges component  or  water  rents
    20  component  or  emergency  repair charges component, where such emergency
    21  repair charges accrued on or after January first, two thousand  six  and
    22  are made a lien pursuant to section 27-2144 of this code, as of the date
    23  of the first publication, pursuant to subdivision a of section 11-320 of
    24  this  chapter,  of  the  notice of sale, provided, however, that any tax
    25  lien or tax liens that remain unpaid in whole or in part after such date
    26  may be sold regardless of whether such tax lien or tax liens  include  a
    27  real  property  tax  component,  sewer rents component, sewer surcharges
    28  component, water rents component or emergency repair charges  component.
    29  For  purposes  of  this subdivision, the words "real property tax" shall
    30  not include an assessment or charge upon property  imposed  pursuant  to
    31  section 25-411 of [the administrative] this code. Nothing in this subdi-
    32  vision  shall  be deemed to limit the rights conferred by section 11-332
    33  of this chapter on the holder of a tax lien certificate with respect  to
    34  a subsequent tax lien.
    35    a-2.  In  addition to any sale authorized pursuant to subdivision a or
    36  subdivision a-1 of this section and  notwithstanding  any  provision  of
    37  this  chapter to the contrary, beginning on December first, two thousand
    38  seven, the water rents, sewer rents and sewer surcharges  components  of
    39  any  tax  lien  on  any class of real property, as such real property is
    40  classified in subdivision one of section eighteen  hundred  two  of  the
    41  real property tax law, may be sold by the city pursuant to this chapter,
    42  where  such  water  rents,  sewer rents or sewer surcharges component of
    43  such tax lien, as of the date of  the  first  publication,  pursuant  to
    44  subdivision  a of section 11-320 of this chapter, of the notice of sale:
    45  (i) shall have remained unpaid in whole or in part for one year and (ii)
    46  equals or exceeds the sum of one thousand dollars or, beginning on March
    47  first, two thousand eleven, in the case of any two or three family resi-
    48  dential real property in class one, for one year, and equals or  exceeds
    49  the  sum  of  two  thousand dollars, or, beginning on January first, two
    50  thousand twelve, in the case of any class [two] five residential proper-
    51  ty owned by a company organized pursuant to  article  XI  of  the  state
    52  private  housing finance law [that is not a residential condominium or a
    53  residential cooperative], as such class of property is defined in subdi-
    54  vision one of section eighteen hundred two of the real property tax law,
    55  for two years, and equals or exceeds the sum of five  thousand  dollars;
    56  provided,   however,  that  such  water  rents,  sewer  rents  or  sewer

        A. 228                             10
     1  surcharges component of such tax lien may not be sold pursuant  to  this
     2  subdivision  on any one family residential real property in class one or
     3  on any two or three family residential real property in class  one  that
     4  is  receiving  an  exemption pursuant to section 11-245.3 or 11-245.4 of
     5  this title, or pursuant to section four hundred fifty-eight of the  real
     6  property  tax  law with respect to real property purchased with payments
     7  received as prisoner of war compensation from the United States  govern-
     8  ment,  or pursuant to paragraph (b) or (c) of subdivision two of section
     9  four hundred fifty-eight-a of the real property tax law,  or  where  the
    10  owner  of any two or three family residential real property in class one
    11  is receiving benefits in accordance with department of finance  memoran-
    12  dum  05-3,  or any successor memorandum thereto, relating to active duty
    13  military personnel, or where the owner of any two or three family  resi-
    14  dential real property in class one has been allowed a credit pursuant to
    15  subsection  (e) of section six hundred six of the tax law for the calen-
    16  dar year in which the date of the first publication, pursuant to  subdi-
    17  vision  a  of  section  11-320  of  this chapter, of the notice of sale,
    18  occurs or for the calendar year immediately preceding such date.   After
    19  such  sale, any such water rents, sewer rents or sewer surcharges compo-
    20  nent of such tax lien may be transferred in the manner provided by  this
    21  chapter.
    22    a-3.  In  addition to any sale authorized pursuant to subdivision a or
    23  subdivision a-1 of this section and  notwithstanding  any  provision  of
    24  this  chapter to the contrary, beginning on December first, two thousand
    25  seven, a subsequent tax lien on any class of real property, as such real
    26  property is classified in subdivision one of  section  eighteen  hundred
    27  two  of  the  real property tax law, may be sold by the city pursuant to
    28  this chapter, regardless of whether such subsequent  tax  lien,  or  any
    29  component  of the amount thereof, shall have remained unpaid in whole or
    30  in part for one year, and regardless  of  whether  such  subsequent  tax
    31  lien,  or any component of the amount thereof, equals or exceeds the sum
    32  of one thousand dollars or beginning on March first, two thousand  elev-
    33  en,  in the case of any two or three family residential real property in
    34  class one, a subsequent tax lien on such property may  be  sold  by  the
    35  city pursuant to this chapter, regardless of whether such subsequent tax
    36  lien, or any component of the amount thereof, shall have remained unpaid
    37  in  whole or in part for one year, and regardless of whether such subse-
    38  quent tax lien, or any  component  of  the  amount  thereof,  equals  or
    39  exceeds the sum of two thousand dollars, or, beginning on January first,
    40  two  thousand  twelve,  in  the case of any class [two] five residential
    41  property owned by a company organized pursuant  to  article  XI  of  the
    42  state private housing finance law [that is not a residential condominium
    43  or  a  residential cooperative], as such class of property is defined in
    44  subdivision one of section eighteen hundred two of the real property tax
    45  law, a subsequent tax lien on such property may  be  sold  by  the  city
    46  pursuant  to  this  chapter,  regardless  of whether such subsequent tax
    47  lien, or any component of the amount thereof, shall have remained unpaid
    48  in whole or in part for two years, and regardless of whether such subse-
    49  quent tax lien, or any  component  of  the  amount  thereof,  equals  or
    50  exceeds  the  sum of five thousand dollars; provided, however, that such
    51  subsequent tax lien may not be sold pursuant to this subdivision on  any
    52  one family residential real property in class one or on any two or three
    53  family  residential  real  property  in  class  one that is receiving an
    54  exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
    55  pursuant  to  section  four hundred fifty-eight of the real property tax
    56  law with respect to real property purchased with  payments  received  as

        A. 228                             11
     1  prisoner  of  war  compensation  from  the  United States government, or
     2  pursuant to paragraph (b) or (c) of  subdivision  two  of  section  four
     3  hundred  fifty-eight-a  of the real property tax law, or where the owner
     4  of  any  two  or  three family residential real property in class one is
     5  receiving benefits in accordance with department of  finance  memorandum
     6  05-3, or any successor memorandum thereto, relating to active duty mili-
     7  tary  personnel,  or where the owner of any two or three family residen-
     8  tial real property in class one has been allowed a  credit  pursuant  to
     9  subsection  (e) of section six hundred six of the tax law for the calen-
    10  dar year in which the date of the first publication, pursuant to  subdi-
    11  vision  a  of  section  11-320  of  this chapter, of the notice of sale,
    12  occurs or for the calendar year immediately preceding such date.   After
    13  such  sale, any such subsequent tax lien, or any component of the amount
    14  thereof, may be transferred in the manner provided by this chapter.  For
    15  purposes  of this subdivision, the term "subsequent tax lien" shall mean
    16  the water rents, sewer rents or sewer surcharges component  of  any  tax
    17  lien  on  property that becomes such on or after the date of sale of any
    18  water rents, sewer rents or sewer surcharges component of any  tax  lien
    19  on  such  property that has been sold pursuant to this chapter, provided
    20  that the prior tax lien remains unpaid as  of  the  date  of  the  first
    21  publication,  pursuant  to subdivision a of section 11-320 of this chap-
    22  ter, of the notice of sale of the subsequent tax lien. Nothing  in  this
    23  subdivision  shall  be  deemed  to limit the rights conferred by section
    24  11-332 of this chapter on the holder of  a  tax  lien  certificate  with
    25  respect to a subsequent tax lien.
    26    a-4.  In  addition  to  any sale authorized pursuant to subdivision a,
    27  a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
    28  this  chapter  to  the  contrary, beginning on March first, two thousand
    29  eleven, the emergency repair charges component or  alternative  enforce-
    30  ment  expenses  and  fees component, where such emergency repair charges
    31  accrued on or after January first, two thousand six and are made a  lien
    32  pursuant  to  section  27-2144  of  this code, or where such alternative
    33  enforcement expenses and fees  are  made  a  lien  pursuant  to  section
    34  27-2153  of this code, of any tax lien on any class of real property, as
    35  such real property is defined in subdivision  one  of  section  eighteen
    36  hundred two of the real property tax law, may be sold by the city pursu-
    37  ant  to  this  chapter, where such emergency repair charges component or
    38  alternative enforcement expenses and fees component of such tax lien, as
    39  of the date of the first  publication,  pursuant  to  subdivision  a  of
    40  section  11-320  of  this chapter, of the notice of sale: (i) shall have
    41  remained unpaid in whole or in part for one year,  and  (ii)  equals  or
    42  exceeds  the sum of one thousand dollars or, beginning on January first,
    43  two thousand twelve, in the case of any  class  [two]  five  residential
    44  property  owned  by  a  company  organized pursuant to article XI of the
    45  state private housing finance law [that is not a residential condominium
    46  or a residential cooperative], as such class of property is  defined  in
    47  subdivision one of section eighteen hundred two of the real property tax
    48  law,  for  two  years,  and  equals  or exceeds the sum of five thousand
    49  dollars; provided, however, that such emergency repair charges component
    50  or alternative enforcement expenses and fees component of such tax  lien
    51  may  only  be sold pursuant to this subdivision on any one, two or three
    52  family residential real property in class one, where such  one,  two  or
    53  three  family residential property in class one is not the primary resi-
    54  dence of the owner. After such sale, any such emergency  repair  charges
    55  component or alternative enforcement expenses and fees component of such
    56  tax lien may be transferred in the manner provided by this chapter.

        A. 228                             12
     1    a-5.  In  addition  to  any sale authorized pursuant to subdivision a,
     2  a-1, a-2 or a-3 of this section and  notwithstanding  any  provision  of
     3  this  chapter  to  the  contrary, beginning on March first, two thousand
     4  eleven, a subsequent tax lien on any class of real property,  or  begin-
     5  ning  on  January  first,  two  thousand twelve in the case of any class
     6  [two] five residential property owned by a company organized pursuant to
     7  article XI of the state private housing finance law [that is not a resi-
     8  dential condominium or a residential cooperative], a subsequent tax lien
     9  on such property, may be sold by the  city  pursuant  to  this  chapter,
    10  regardless of the length of time such subsequent tax lien, or any compo-
    11  nent  of  the amount thereof, shall have remained unpaid, and regardless
    12  of the amount of such subsequent tax lien. After  such  sale,  any  such
    13  subsequent  tax  lien,  or  any  component of the amount thereof, may be
    14  transferred in the manner provided by this chapter. For purposes of this
    15  subdivision, the term "subsequent tax lien"  shall  mean  the  emergency
    16  repair  charges  component  or alternative enforcement expenses and fees
    17  component, where such emergency repair charges accrued on or after Janu-
    18  ary first, two thousand six and are made  a  lien  pursuant  to  section
    19  27-2144 of this code, or where such alternative enforcement expenses and
    20  fees  are  made  a lien pursuant to section 27-2153 of this code, of any
    21  tax lien on property that becomes such on or after the date of  sale  of
    22  any  emergency  repair  charges  component  or  alternative  enforcement
    23  expenses and fees component, of any tax lien on such property  that  has
    24  been  sold  pursuant  to  this chapter, provided that the prior tax lien
    25  remains unpaid as of the date of  the  first  publication,  pursuant  to
    26  subdivision  a  of section 11-320 of this chapter, of the notice of sale
    27  of the subsequent tax lien. Nothing in this subdivision shall be  deemed
    28  to  limit  the rights conferred by section 11-332 of this chapter on the
    29  holder of a tax lien certificate with respect to a subsequent tax lien.
    30    § 13. Subparagraph (i) of paragraph 2 of subdivision  b  and  subpara-
    31  graph  (ii)  of  paragraph  1  of subdivision h of section 11-320 of the
    32  administrative code of the city of New York, subparagraph (i)  of  para-
    33  graph  2 of subdivision b as amended by local law number 147 of the city
    34  of New York for the year 2013 and subparagraph (ii) of  paragraph  1  of
    35  subdivision  h  as  added by local law number 15 of the city of New York
    36  for the year 2011, are amended to read as follows:
    37    (i) Such notices shall also include,  with  respect  to  any  property
    38  owner  in  class  one  [or], class two or class five, as such classes of
    39  property are defined in subdivision one of section eighteen hundred  two
    40  of  the  real  property tax law, an exemption eligibility checklist. The
    41  exemption eligibility checklist shall also be posted on the  website  of
    42  the  department  no  later  than  the  first  business  day  after March
    43  fifteenth of every year prior to the date of sale, and shall continue to
    44  be posted on such website until ten days prior  to  the  date  of  sale.
    45  Within ten business days of receipt of a completed exemption eligibility
    46  checklist  from  such  property owner, provided that such receipt occurs
    47  prior to the date of sale of any tax lien or tax liens  on  his  or  her
    48  property,  the  department  of  finance  shall  review such checklist to
    49  determine, based on the information  provided  by  the  property  owner,
    50  whether  such property owner could be eligible for any exemption, credit
    51  or other benefit that would entitle them to be excluded from a tax  lien
    52  sale and, if the department determines that such property owner could be
    53  eligible  for  any  such  exemption, credit or other benefit, shall mail
    54  such property owner an application for the appropriate exemption, credit
    55  or other benefit. If, within  twenty  business  days  of  the  date  the
    56  department  mailed  such  application, the department has not received a

        A. 228                             13
     1  completed application from such property  owner,  the  department  shall
     2  mail  such  property owner a second application, and shall telephone the
     3  property owner, if the property owner has included his or her  telephone
     4  number on the exemption eligibility checklist.
     5    (ii)  all  class  [two]  five  residential property owned by a company
     6  organized pursuant to article XI of the state  private  housing  finance
     7  law [that is not a residential condominium or a residential cooperative]
     8  on  which  any  tax lien has been sold pursuant to subdivision a, a-2 or
     9  a-4 of section 11-319 of this title.
    10    § 14. Subdivision (a) of section 11-354 of the administrative code  of
    11  the  city  of New York, as amended by local law number 37 of the city of
    12  New York for the year 1996, is amended to read as follows:
    13    (a) Notwithstanding any other provision of law and notwithstanding any
    14  omission to hold a tax lien sale, whenever any  tax,  assessment,  sewer
    15  rent,  sewer  surcharge,  water  rent,  any  charge  that is made a lien
    16  subject to the provisions of this chapter or chapter four of this title,
    17  or interest and penalties thereon, has been due and unpaid for a  period
    18  of at least one year from the date on which the tax, assessment or other
    19  legal  charge  represented  thereby became a lien, or in the case of any
    20  class one property or any class two  property  [that  is  a  residential
    21  condominium or residential cooperative], as such classes of property are
    22  defined  in  subdivision one of section eighteen hundred two of the real
    23  property tax law, or in the case of a class  five  property  that  is  a
    24  multiple dwelling owned by a company organized pursuant to article XI of
    25  the  private  housing  finance  law with the consent and approval of the
    26  department of housing preservation and development, for a period  of  at
    27  least  three  years  from the date on which the tax, assessment or other
    28  legal charge became a lien, the city, as owner of a tax lien, may  main-
    29  tain  an action in the supreme court to foreclose such lien. Such action
    30  shall be governed by the procedures set forth in section 11-335 of  this
    31  chapter;  provided,  however, that such parcel shall only be sold to the
    32  highest responsible bidder. Such purchaser shall be deemed qualified  as
    33  a  responsible  bidder  pursuant  to such criteria as are established in
    34  rules promulgated by the commissioner of finance after consultation with
    35  the commissioner of housing preservation and development.
    36    § 15. Subdivision 3 and the opening  paragraph  of  subdivision  4  of
    37  section  11-401  of  the  administrative  code  of the city of New York,
    38  subdivision 3 as added by local law number 37 of the city  of  New  York
    39  for  the year 1996 and the opening paragraph of subdivision 4 as amended
    40  by local law number 152 of the city of New York for the year  2017,  are
    41  amended to read as follows:
    42    3.  "Class."  Any class of real property defined in subdivision one of
    43  section eighteen hundred two of the  real  property  tax  law,  and  any
    44  subclassification  of  class  two or class five real property where such
    45  subclassification is established by rule of the commissioner of  finance
    46  promulgated pursuant to this subdivision.
    47    Any  parcel  of class one [or],  class two or class five real property
    48  that is subject to a tax lien or liens that result from an environmental
    49  control board judgment against the owner of such parcel for  a  building
    50  code violation with a lien or liens to value ratio, as determined by the
    51  commissioner  of  finance,  equal  to  or greater than 25 percent or any
    52  parcel of class one or class two real property that is subject to a  tax
    53  lien  or liens with a lien or liens to value ratio, as determined by the
    54  commissioner of finance, equal to or greater than  fifteen  percent  and
    55  that meets one of the following two criteria:

        A. 228                             14
     1    §  16.  Subdivisions a and b of section 11-401.1 of the administrative
     2  code of the city of New York, as added by local law  number  37  of  the
     3  city of New York for the year 1996, are amended to read as follows:
     4    a. The commissioner of finance shall, not less than sixty days preced-
     5  ing  the  date  of  the  sale  of a tax lien or tax liens, submit to the
     6  commissioner of housing preservation and development  a  description  by
     7  block  and  lot,  or by such other identification as the commissioner of
     8  finance may deem appropriate, of any parcel of class one  or  class  two
     9  real property on which there is a tax lien that may be foreclosed by the
    10  city.  The  commissioner  of  housing preservation and development shall
    11  determine, and direct the commissioner of finance,  not  less  than  ten
    12  days  preceding the date of the sale of a tax lien or tax liens, whether
    13  any such parcel is a distressed property as defined in subdivision  four
    14  of  section  11-401  of this chapter. Any tax lien on a parcel so deter-
    15  mined to be a distressed property shall not be included in such sale. In
    16  connection with a subsequent sale of  a  tax  lien  or  tax  liens,  the
    17  commissioner of finance may, not less than sixty days preceding the date
    18  of  the  sale,  resubmit to the commissioner of housing preservation and
    19  development a description by block and lot, or by such other identifica-
    20  tion as the commissioner of finance may deem appropriate, of any  parcel
    21  of class one [or], class two or class five real property that was previ-
    22  ously  determined to be a distressed property pursuant to this paragraph
    23  and on which there is a tax lien that may be included in such sale.  The
    24  commissioner  of  housing  preservation and development shall determine,
    25  and direct the commissioner of finance, not less than ten days preceding
    26  the date of the sale, whether such parcel remains a distressed property.
    27  If the commissioner of housing preservation and  development  determines
    28  that  the  parcel is not a distressed property, then the tax lien on the
    29  parcel may be included in the sale.
    30    b. The commissioner of housing preservation and development may  peri-
    31  odically  review  whether a parcel of class one [or], class two or class
    32  five real property that is subject to subdivision c of this  section  or
    33  subdivision  j  of section 11-412.1 of this chapter remains a distressed
    34  property. If the commissioner  determines  that  the  parcel  is  not  a
    35  distressed  property as defined in subdivision four of section 11-401 of
    36  this chapter, then the parcel shall not be subject to such subdivisions.
    37    § 17. Subdivision b of section 11-404 of the  administrative  code  of
    38  the  city  of New York, as amended by local law number 37 of the city of
    39  New York for the year 1996, is amended to read as follows:
    40    b. A tax lien on any class one property  or  any  class  two  property
    41  [that  is a residential condominium or residential cooperative], as such
    42  classes of property are defined in subdivision one of  section  eighteen
    43  hundred two of the real property tax law, and on any class five property
    44  that  is  a  multiple  dwelling owned by a company organized pursuant to
    45  article XI of the private housing  finance  law  with  the  consent  and
    46  approval  of  the  department  of  housing preservation and development,
    47  shall not be foreclosed in the manner provided  in  this  chapter  until
    48  such  tax  lien  has  been due and unpaid for a period of at least three
    49  years from the date on which the tax, assessment or other  legal  charge
    50  represented thereby became a lien.
    51    §  18.  Paragraph 5 of subdivision c of section 11-405 of the adminis-
    52  trative code of the city of New York, as added by local law number 37 of
    53  the city of New York for the year 1996, is amended to read as follows:
    54    (5) Notwithstanding paragraph one, two or three of  this  subdivision,
    55  with  respect to installment agreements duly made, executed and filed on
    56  or after the date on which this paragraph takes effect, the commissioner

        A. 228                             15
     1  of finance may also exclude or thereafter  remove  from  such  list  any
     2  parcel  of  class one [or], class two or class five real property, other
     3  than a parcel described in paragraph four of  this  subdivision,  as  to
     4  which  an  agreement  has  been  duly made, executed and filed with such
     5  commissioner for the payment of the  delinquent  taxes,  assessments  or
     6  other legal charges, and the interest and penalties thereon, in install-
     7  ments.  The  first  installment thereof shall be paid upon the filing of
     8  the installment agreement with the  commissioner  and  shall  be  in  an
     9  amount  equal  to  not  less than fifteen percent of the total amount of
    10  such delinquent taxes, assessments or other legal charges and the inter-
    11  est and penalties thereon. The remaining installments,  which  shall  be
    12  twice  the  number of unpaid quarters of real estate taxes or the equiv-
    13  alent thereof, but which shall in no event exceed thirty-two in  number,
    14  shall  be  payable quarterly on the first days of July, October, January
    15  and April. For the purposes of calculating the number of such  remaining
    16  installments, unpaid real estate taxes that are due and payable on other
    17  than  a  quarterly  basis  shall  be deemed to be payable on a quarterly
    18  basis.
    19    § 19. Subparagraph (iii) of paragraph 3 of subdivision  i  of  section
    20  11-409  of  the administrative code of the city of New York, as added by
    21  local law number 37 of the city of  New  York  for  the  year  1996,  is
    22  amended to read as follows:
    23    (iii) With respect to any parcel of class one [or], class two or class
    24  five real property, other than a parcel described in subparagraph (i) or
    25  (ii)  of this paragraph, such agreement shall provide for the payment in
    26  installments of the delinquent taxes, assessments and other legal charg-
    27  es, and the interest and penalties thereon, due and owing as of the date
    28  on which such agreement is  requested.  The  first  installment  thereof
    29  shall  be  paid  upon  the  filing of the installment agreement with the
    30  commissioner of finance and shall be in an amount at least equal to,  at
    31  the applicant's election, either thirty-five percent or fifty percent of
    32  the  total  amount  of such delinquent taxes, assessments or other legal
    33  charges and the interest and penalties thereon. The  remaining  install-
    34  ments, which shall be twice the number of unpaid quarters of real estate
    35  taxes  or  the  equivalent  thereof,  but which shall in no event exceed
    36  twenty in number, shall be payable quarterly on the first days of  July,
    37  October,  January and April, together with interest at the rate or rates
    38  determined as provided in subparagraph (iv) of this paragraph.  For  the
    39  purposes  of  calculating  the  number  of  such remaining installments,
    40  unpaid real estate taxes that are due and payable on other than a  quar-
    41  terly basis shall be deemed to be payable on a quarterly basis.
    42    §  20.  The  section heading of section 11-412.1 of the administrative
    43  code of the city of New York, as added by local law  number  37  of  the
    44  city of New York for the year 1996, is amended to read as follows:
    45    Special procedures relating to final judgment and release of class one
    46  [and], class two or class five real property.
    47    § 21. Paragraph 1 of subdivision b, subdivisions c and d, paragraphs 1
    48  and  4  of  subdivision  e, and subdivisions f, g, h, i and j of section
    49  11-412.1 of the administrative code of the city of New York, as added by
    50  local law number 37 of the city of New  York  for  the  year  1996,  are
    51  amended to read as follows:
    52    (1)  The  court  shall  make a final judgment authorizing the award of
    53  possession of any parcel of class one [or], class two or class five real
    54  property described in the list of delinquent taxes not redeemed or with-
    55  drawn as provided in this chapter and as to which no  answer  is  inter-
    56  posed as provided herein, and authorizing the commissioner of finance to

        A. 228                             16
     1  prepare, execute and cause to be recorded a deed conveying either to the
     2  city  or to a third party deemed qualified and designated by the commis-
     3  sioner of housing preservation and development full and  complete  title
     4  to  such  lands.  Any  such  conveyance to a third party shall be for an
     5  existing use.
     6    c. Following the expiration of the  four-month  period  prescribed  in
     7  subdivision  d of this section, but not more than eight months after the
     8  date on which, pursuant to subdivision b  of  this  section,  the  final
     9  judgment  authorizing  the  award of possession of a parcel of class one
    10  [or], class two or class five real property was entered, the commission-
    11  er of finance may execute a deed, pursuant  to  subdivision  b  of  this
    12  section,  with  respect  to  such parcel. The owner of said parcel shall
    13  continue to have  all  of  the  rights,  liabilities,  responsibilities,
    14  duties  and  obligations  of an owner of such parcel, including, but not
    15  limited to, maintaining such parcel in compliance with the housing main-
    16  tenance, building and fire codes, and all other applicable laws,  unless
    17  and  until  the commissioner of finance has prepared and executed a deed
    18  conveying to the city or to a third party full  and  complete  title  to
    19  such  parcel.  Upon  the  execution  of such deed, the city or the third
    20  party shall be seized of an estate in fee simple absolute in  such  land
    21  and all persons, including the state of New York, infants, incompetents,
    22  absentees and non-residents who may have had any right, title, interest,
    23  claim,  lien  or  equity  of  redemption  in or upon such lands shall be
    24  barred and forever foreclosed of all such right, title, interest, claim,
    25  lien or equity of redemption, except as otherwise provided  in  subdivi-
    26  sions  e and f of this section. The appointment and tenure of receivers,
    27  trustees or any other persons, including  administrators  under  article
    28  seven-A  of  the real property actions and proceedings law, appointed by
    29  an order of a court to manage real property, shall terminate when  title
    30  to  such  property  vests  in  the city or a third party pursuant to the
    31  provisions of this chapter.  After  such  termination,  said  receivers,
    32  trustees  or  administrators  shall  be  accountable  to the courts that
    33  appointed them for the faithful performance  of  their  fiduciary  obli-
    34  gations  during  the  term  of their appointment and to the city or such
    35  third party for any rents and income received by  them  for  any  period
    36  subsequent to the date of the vesting of title in the city or such third
    37  party.
    38    If  the  city  serves  a  tenant in possession of a dwelling unit with
    39  notice of termination of tenancy on grounds  other  than  nonpayment  of
    40  rent,  the acceptance of rent for the first forty-five days after termi-
    41  nation of tenancy by anyone other than an  employee  of  the  department
    42  designated by the department to receive such rent shall not be deemed or
    43  construed  as  a  waiver of the city's right to initiate and prosecute a
    44  proceeding to terminate the tenancy for good cause.
    45    d. Within four months after the date on which, pursuant to subdivision
    46  b  of  this  section,  the  final  judgment  authorizing  the  award  of
    47  possession  of  a parcel of class one [or], class two or class five real
    48  property was entered, any person claiming to have an  interest  in  such
    49  parcel  shall  have  the  right to make a payment to the commissioner of
    50  finance consisting of all taxes, assessments  and  other  legal  charges
    51  owing on said parcel, the lawful interest thereon to the date of payment
    52  and  a penalty of five percent of said payment of taxes, assessments and
    53  other legal charges and interest, which penalty may not exceed one thou-
    54  sand dollars. Such payment shall be made in cash or by certified or bank
    55  check. Within such four-month period, such interested  person  may  also
    56  request  an installment agreement from the commissioner of finance. Such

        A. 228                             17
     1  agreement shall require, in addition to  full  payment  of  the  penalty
     2  specified  in  this  subdivision  at  the time such agreement is entered
     3  into, the payment at such time of a first  installment  equal  to  fifty
     4  percent  of  all  taxes,  assessments  and  other legal charges, and the
     5  lawful interest thereon, then owing on such parcel, and the  payment  of
     6  the  balance  of  such  taxes,  assessments  and other legal charges and
     7  interest in four equal quarterly installments together with all  current
     8  taxes, assessments and other legal charges that accrue during such peri-
     9  od. Upon receipt of payment in full of the amount specified in the first
    10  sentence  of  this subdivision, the commissioner of finance shall direct
    11  the corporation counsel to prepare and cause  to  be  entered  an  order
    12  discontinuing  the  in  rem  tax foreclosure action as to said property,
    13  cancelling the notice of pendency of such action as to said property and
    14  vacating and setting aside the final judgment. Upon the execution of  an
    15  installment  agreement  and  payment of the amounts due at the time such
    16  agreement is executed as provided in this subdivision, the  commissioner
    17  of  finance shall direct the corporation counsel to prepare and cause to
    18  be entered an order vacating and setting aside the final  judgment.  The
    19  entry  of either such order shall restore all parties, including owners,
    20  mortgagees and any and all lienors,  receivers  and  administrators  and
    21  encumbrancers,  to  the  status  they held immediately before such final
    22  judgment was entered.   Where the commissioner of  finance  approves  an
    23  application  requesting an installment agreement pursuant to this subdi-
    24  vision, the order vacating and setting aside the  final  judgment  shall
    25  provide  that  in  the  event of any default as to the payment of either
    26  quarterly installments or current  taxes,  assessments  or  other  legal
    27  charges  during  the  term  of  such  agreement, all payments under said
    28  agreement shall be forfeited and the  corporation  counsel,  immediately
    29  upon  notification by the commissioner of finance of such default, shall
    30  cause to be entered as to such property a supplemental judgment of fore-
    31  closure in the in  rem  action  which  authorizes  the  commissioner  of
    32  finance  to  prepare,  execute and cause to be recorded a deed conveying
    33  either to the city or to a third party full and complete title  to  such
    34  lands.  Upon  the entry of such supplemental judgment, the provisions of
    35  subdivisions c through i of this section shall apply in the same  manner
    36  as  such  subdivisions  would  have applied had no payment been made nor
    37  installment agreement executed during the four-month period specified in
    38  this subdivision.
    39    1. If the commissioner of finance has prepared, executed and caused to
    40  be recorded a deed conveying to the city full and complete  title  to  a
    41  parcel of class one [or], class two or class five real property acquired
    42  by  in  rem  tax  foreclosure, the city's interest in such parcel may be
    43  released pursuant to this subdivision on the application  of  any  party
    44  who  has  an interest in said parcel as either owner, mortgagee, lienor,
    45  or encumbrancer at the time of the city's acquisition thereof where such
    46  application is made at any time up to sixteen months from  the  date  on
    47  which  the  deed  by  which  the  city acquired title to said parcel was
    48  recorded.
    49    4. The provisions contained in subdivision g of section 11-424 of this
    50  chapter shall govern such an application, except as follows:
    51    (a)  where  such  provisions  are  inconsistent  with  the  provisions
    52  contained in this subdivision, the provisions contained in this subdivi-
    53  sion shall govern such application; and
    54    (b)  where  the  in  rem  foreclosure  release  board denies a written
    55  request for an installment agreement that was filed in  connection  with
    56  an  application  for release of the city's interest in a parcel of class

        A. 228                             18
     1  one [or], class two or class five real property and such application was
     2  filed within thirty days of the date of the city's  acquisition  of  the
     3  property  sought  to  be  released,  the  board  may, in its discretion,
     4  authorize  a release of the city's interest, provided that the applicant
     5  thereafter pays all the amounts required to be paid pursuant to subdivi-
     6  sion d of section 11-424 of this chapter within thirty days of the  date
     7  on which a letter requesting such payment is mailed or delivered to such
     8  applicant.
     9    f. If the commissioner of finance has prepared, executed and caused to
    10  be  recorded  a  deed conveying to the city full and complete title to a
    11  parcel of class one [or], class two or class five real property acquired
    12  by in rem tax foreclosure and such parcel is entitled  to  an  exemption
    13  under any of the provisions of article four of the real property tax law
    14  during all or part of the period covered by the tax items appearing on a
    15  list  of  delinquent  taxes,  the  owner  of such parcel may apply for a
    16  release of the  city's  interest  in  such  exempt  property  under  the
    17  provisions  of  subdivision  e of this section during the period of time
    18  set forth in paragraph one of such subdivision  and  for  an  additional
    19  period up to ten years from the date on which the deed by which the city
    20  acquired  title  to  said property was recorded. The application of such
    21  owner shall be accompanied by the nonrefundable fee  required  by  para-
    22  graph  four of subdivision b of section 11-424 of this chapter and shall
    23  contain, in addition to the statements, searches and proofs required  by
    24  subdivision  e  of this section, a statement that an exemption under the
    25  real property tax law is being  claimed.  Such  application  shall  also
    26  state  either  that  it is accompanied by the written certificate of the
    27  comptroller setting forth the precise period during which said property,
    28  while owned by such application, and during the period after the  city's
    29  acquisition up to the date of the certificate if said property was still
    30  being used for an exempt purpose after said acquisition, was entitled to
    31  an  exemption  and the exact nature and extent of such exemption or that
    32  an application for such written certificate  has  been  filed  with  the
    33  comptroller.  On issuing such written certificate, the comptroller shall
    34  cancel those tax items which have accrued during the period  covered  by
    35  the  certificate to the extent the applicant is entitled to an exemption
    36  as set forth in the certificate. A release of the city's interest may be
    37  authorized only at the discretion of  the  in  rem  foreclosure  release
    38  board and, except as otherwise provided in paragraph four of subdivision
    39  e of this section, subject to all the restrictions set forth in subdivi-
    40  sion  g of section 11-424 of this chapter. A release to an exempt appli-
    41  cant shall be effected only after said applicant has  paid  all  of  the
    42  amounts  required  to be paid by subdivision d of section 11-424 of this
    43  chapter, except for those tax items which have been canceled,  in  whole
    44  or  in  part,  pursuant  to the comptroller's certificate, within thirty
    45  days of the date on which the letter requesting  payment  is  mailed  or
    46  delivered to the applicant.
    47    g. If the commissioner of finance has prepared, executed and caused to
    48  be  recorded  a  deed conveying to the city or to a third party full and
    49  complete title to a parcel of class one [or], class two  or  class  five
    50  real  property  acquired  by  in  rem  tax  foreclosure,  the provisions
    51  contained in subdivisions f and i of section 11-424 of this chapter  for
    52  the  release  of  property  so  acquired  shall not be available. If the
    53  commissioner of finance has prepared, executed and caused to be recorded
    54  a deed conveying to a third party full and complete title to a parcel of
    55  class one or class two real property acquired by in rem tax foreclosure,

        A. 228                             19
     1  the provisions contained in subdivisions e and f of this section for the
     2  release of property so acquired shall not be available.
     3    h.  Every  deed given pursuant to the provisions of this section shall
     4  be presumptive evidence that the action and all proceedings therein  and
     5  all  proceedings  prior thereto from and including the assessment of the
     6  lands affected and all notices required  by  law  were  regular  and  in
     7  accordance  with  all  provisions  of  law  relating thereto. After four
     8  months from the date of entry of  the  final  judgment  authorizing  the
     9  award  of possession of any parcel of class one [or], class two or class
    10  five real property pursuant to  the  provisions  of  this  section,  the
    11  presumption shall be conclusive. No action to set aside such deed may be
    12  maintained  unless  the  action is commenced and a notice of pendency of
    13  the action is filed in the office of the property county clerk prior  to
    14  the  time  that  the presumption becomes conclusive as aforesaid. Should
    15  any lawsuit or proceeding be commenced to set aside a deed conveying  to
    16  a  third  party a parcel of class one [or], class two or class five real
    17  property pursuant to the provisions of this section,  such  third  party
    18  shall send to the corporation counsel within ten days of their receipt a
    19  copy  of  any  papers  served  on  such  third  party in such lawsuit or
    20  proceeding.
    21    i. If the commissioner of finance does not execute a deed conveying to
    22  the city or to a third party a parcel of class one [or],  class  two  or
    23  class  five  real  property within eight months after the entry of final
    24  judgment authorizing the award of possession of such parcel pursuant  to
    25  subdivision  b of this section, the commissioner of finance shall direct
    26  the corporation counsel to prepare and cause  to  be  entered  an  order
    27  discontinuing the in rem foreclosure action as to said property, cancel-
    28  ing the notice of pendency of such action as to said property and vacat-
    29  ing and setting aside said final judgment. The entry of such order shall
    30  restore  all  parties,  including  owners,  mortgagees  and  any and all
    31  lienors, receivers and administrators and encumbrancers, to  the  status
    32  they held immediately before such final judgment was entered.
    33    j.  If  the  commissioner  of finance directs the corporation counsel,
    34  pursuant to subdivision i of this section, to prepare and  cause  to  be
    35  entered  an  order  discontinuing  the  in  rem  foreclosure action with
    36  respect to a parcel of class one [or], class  two  or  class  five  real
    37  property  determined  to  be  distressed pursuant to section 11-401.1 of
    38  this chapter, the commissioner of housing preservation  and  development
    39  shall  evaluate  the  parcel  determined  to be distressed and take such
    40  action as he or she deems appropriate under the  programs,  existing  at
    41  the time of such evaluation, that are designed to encourage the rehabil-
    42  itation and preservation of existing housing, and shall monitor or cause
    43  to  be monitored the status of the property. The commissioner of housing
    44  preservation and development shall maintain  a  register  of  properties
    45  determined to be distressed.
    46    §  22.  Section 11-412.2 of the administrative code of the city of New
    47  York, as added by local law number 37 of the city of New  York  for  the
    48  year 1996, is amended to read as follows:
    49    §  11-412.2 Council review of conveyance to a third party. The commis-
    50  sioner of finance shall, prior to the execution of a deed conveying full
    51  and complete title of any parcel of class one [or], class two  or  class
    52  five real property to a third party pursuant to subdivision c of section
    53  11-412.1 of this chapter, notify the council of the proposed conveyance.
    54  Within  forty-five  days  of  such  notification, the council may act by
    55  local law disapproving the proposed conveyance. In the event the council
    56  does not act by local law within such forty-five day period, the council

        A. 228                             20
     1  shall be deemed to have approved the proposed  conveyance.  During  such
     2  forty-five day period or, if the city council acts by local law pursuant
     3  to  this section, during the period of time from the notification of the
     4  council  to  the  presentation to the mayor of such local law and during
     5  any additional period of time prescribed in section 37 of  the  charter,
     6  the  eight-month  period  provided  in  subdivisions  c and i of section
     7  11-412.1 of this chapter shall be tolled.
     8    § 23. Paragraph 1 of subdivision a of section 163 of the New York city
     9  charter, as amended by local law number 77 of the city of New  York  for
    10  the year 1984, is amended to read as follows:
    11    1.  "Class  designation"  shall  mean  the  determination, pursuant to
    12  section eighteen hundred two of the real property tax  law,  of  whether
    13  real property is included in class one, two, three [or], four or five.
    14    §  24.  Paragraph  1 of subdivision a of section 164-b of the New York
    15  city charter, as added by local law number 11 of the city  of  New  York
    16  for the year 1984, is amended to read as follows:
    17    1. "Class designation" shall mean the determination, pursuant to arti-
    18  cle  eighteen  of the real property tax law, of whether real property is
    19  included in class one, two, three [or], four or five.
    20    § 25. This act shall take effect on the first of January next succeed-
    21  ing the date on which it shall have become a  law  and  shall  apply  to
    22  assessment rolls prepared pursuant to a taxable status date occurring on
    23  or  after  such date; provided, however, that if local law number 152 of
    24  the city of New York for the year 2017 shall not have taken effect on or
    25  before such date then section fifteen of this act shall take  effect  on
    26  the  same  date  and in the same manner as such local law of the city of
    27  New York for the year 2017, takes effect; provided, however, that effec-
    28  tive immediately, the addition, amendment and/or repeal of any  rule  or
    29  regulation necessary for the implementation of this act on its effective
    30  date  are  authorized and directed to be made and completed on or before
    31  such effective date.
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