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. LBD02934-01-9A. 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-41cial 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 actualA. 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-40ative 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 asA. 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 is8a 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 is15not 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-20dential 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 theA. 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 residential4condominium or residential cooperative, or a class two residential prop-5erty owned by a company organized pursuant to article XI of the state6private housing finance law that is not a residential condominium or a7residential 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-38minium 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-43tial 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 toA. 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-9dential 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 [class56two property, except a class two property that is a residential condo-A. 228 9 1minium or residential cooperative, or a class two residential property2owned by a company organized pursuant to article XI of the state private3housing finance law that is not a residential condominium or a residen-4tial 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 a53residential 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 sewerA. 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 condominium43or 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 asA. 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 condominium46or 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-8dential 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 aA. 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 residential21condominium 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 commissionerA. 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 toA. 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. SuchA. 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 classA. 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 councilA. 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.
