STATE OF NEW YORK ________________________________________________________________________ 1662 2023-2024 Regular Sessions IN ASSEMBLY January 17, 2023 ___________ Introduced by M. of A. HUNTER -- read once and referred to the Committee on Local Governments AN ACT to amend the state finance law and the real property tax law, in relation to authorizing certain municipalities in a pilot emergency repair program to add unpaid emergency repair charges and housing code violation penalties, costs and fines to such municipalities' annual tax levy in accordance with applicable law; and providing for the repeal of certain provisions of the state finance law upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 3 of section 54-g of the state finance law, as 2 added by chapter 707 of the laws of 1981, is amended to read as follows: 3 3. The secretary of state, with assistance from the division of hous- 4 ing and community renewal, shall establish a pilot program with partic- 5 ipating municipalities for an emergency repair program. The secretary of 6 state shall only select municipalities designated as a city for such 7 pilot program. The emergency repair program shall require a municipality 8 awarded participation to enact a local law to enable the municipality to 9 repair immediately hazardous code violations in buildings where the 10 owner has not undertaken such repairs in a reasonable time. The munici- 11 pality shall bill the owner for such repair costs and in the event 12 payment is not received within thirty days, the secretary shall reim- 13 burse the municipality for such repairs. Any subsequent recovery of 14 monies due from the owner for such repairs shall be forwarded to the 15 state. The secretary of state in conjunction with the division of hous- 16 ing and community renewal shall file a report annually to evaluate the 17 effectiveness of the emergency repair pilot program with the legislature 18 and the governor. Such report shall include recommendations as to wheth- 19 er the program shall be continued or modified in any way and the reasons 20 therefor. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05810-01-3A. 1662 2 1 4. The terms used in this section shall have the meanings ascribed to 2 them in section fifty-four of this article. 3 § 2. The real property tax law is amended by adding a new section 903 4 to read as follows: 5 § 903. Collection of unpaid housing code violation penalties; levy. 1. 6 Authorization. In addition to and not in limitation of any power other- 7 wise granted by law, municipalities participating in the emergency 8 repair program pursuant to section fifty-four-g of the state finance 9 law, are hereby authorized to collect any unpaid emergency repair charg- 10 es, housing, building and fire code violation penalties, costs and fines 11 through placement by the municipality's commissioner of finance, treas- 12 urer, or other public official charged with the duties of overseeing tax 13 collections on the municipality's annual tax levy in accordance with the 14 provisions of this section. 15 2. Eligibility. In order to be eligible for placement on the munici- 16 pality's annual tax levy such unpaid emergency repair charges, code 17 violation penalties, costs and fines shall have been adjudicated and 18 imposed through a judgment in a court of competent jurisdiction on an 19 owner of real property within the municipality and recorded by the coun- 20 ty clerk, as certified by the municipal counsel to the commissioner of 21 finance, treasurer or other public official charged with the duties of 22 overseeing tax collections and have remained unpaid for one year after 23 the final adjudication and exhaustion of all appeals relating to the 24 imposition of the fines for a code violation preceding the placement on 25 the municipality's tax levy. 26 3. Minimum amount owed. To qualify for placement on the tax levy the 27 amount owed for unpaid emergency repair charges and/or the code 28 violations shall be at least five percent of the amount of the tax 29 assessed value of the property. 30 4. Levy. Such unpaid emergency repair charges and/or code violation 31 penalty, cost or fine as set forth in a copy of the judgment certified 32 by the municipal counsel to the commissioner of finance, treasurer or 33 other public official charged with the duties of overseeing tax 34 collections shall be set down in the annual tax levy under the heading 35 uncollected fines and penalties and in accordance with this section 36 shall be levied, enforced and collected in the same manner, by the same 37 proceedings, at the same time, under the same penalties and having the 38 same lien upon the property assessed as the general municipal tax and as 39 a part thereof. 40 5. Notice. The municipality shall notify all owners or known inter- 41 ested parties of record of the placement of the unpaid emergency repair 42 charges and/or code violations on the municipal tax levy as uncollected 43 fines and penalties within thirty days of placement, pursuant to section 44 three hundred eight of the civil practice law and rules. The notice 45 shall include the date or dates of such violations, the description of 46 the violations, the amount owed, a statement detailing the foreclosure 47 process that will occur if the violations remain unpaid, the process to 48 claim any surplus funds and the contact information for the municipal 49 office in charge of receiving payments. 50 6. Tax year. Any unpaid emergency repair charges and/or code 51 violations shall be placed on the tax roll the municipality is currently 52 in and shall not be placed on a list, roll or levy of delinquent taxes. 53 7. Owner occupied. Notwithstanding any other applicable provisions of 54 law, nothing in this section shall be applied to a residential dwelling 55 that is owner-occupied or is the primary residence of a homeowner.A. 1662 3 1 8. Tenants. Prior to the placement of any property with unpaid emer- 2 gency repair charges and/or code violations on the tax levy, the munici- 3 pality shall develop a program to assist tenants residing in a dwelling 4 at risk for tax foreclosure due to unpaid emergency repair charges 5 and/or code violations. Such program shall include housing counseling 6 assistance or other support in relocating the tenants to suitable hous- 7 ing prior to the tax foreclosure. 8 9. Payment plan. Nothing in this section shall preclude an owner from 9 entering into a payment plan with a municipality for past amounts due 10 for emergency repair charges and/or code violations. 11 10. Curing code violations. (a) If all of the violations for which the 12 penalties, fees and costs have been assessed are cured, removed or 13 corrected prior to the expiration of the period for redemption pursuant 14 to section eleven hundred ten of this chapter, the property shall be 15 removed from the levy and auction and the balance of the amount owed 16 shall be placed as a lien on the property pursuant to applicable laws 17 for debt collection and an action for foreclosure of the property shall 18 not be maintained for the amount owed. 19 (b) The determination of whether or not the code violations have been 20 cured shall be made by the local municipal enforcing officer in charge 21 of ensuring compliance with applicable housing, building, and fire codes 22 such as a code enforcement officer or through a certification by the 23 owner filed with the code enforcement officer. An appeal of this deter- 24 mination may be made to the municipality's zoning board of appeals or 25 other local administrative body as provided for in local law. The final 26 determination made by the administrative body shall be reviewable pursu- 27 ant to article seventy-eight of the civil practice law and rules. 28 (c) This section shall not be applicable to any cause of action 29 brought for money due based on the curing of emergency repair charges 30 and/or code violations under any form for receivership or a mechanics 31 lien. 32 11. Payment prior to auction. (a) If the balance owed for emergency 33 repair charges and/or code violations placed on the tax levy is paid 34 prior to the expiration of the period for redemption pursuant to section 35 eleven hundred ten of this chapter and there is no balance due for 36 unpaid real property taxes, the property may not be auctioned, and the 37 property shall be removed from the tax levy. 38 (b) The owner shall have the right to pay the full balance prior to 39 the expiration of the period for redemption pursuant to section eleven 40 hundred ten of this chapter in order to redeem the property. 41 12. Surplus. Any surplus funds remaining after the sale of a property 42 at a tax foreclosure for unpaid code violations shall be returned to the 43 former owner of the property in a manner provided under local law. This 44 provision shall not apply to a sale of a property at a tax foreclosure 45 due to unpaid taxes. If a property has: (a) unpaid taxes; and (b) unpaid 46 emergency repair charges and/or unpaid code violations on the same tax 47 levy and is auctioned at a tax foreclosure, the amount of the surplus 48 funds returned to the former owner shall be proportionate to the amount 49 of unpaid emergency repair charges and/or code violations owed in the 50 total amount of debt owed to the municipality. For the purpose of this 51 section, "surplus funds" shall mean the balance of money received after 52 auction of a property at a tax foreclosure sale minus the amount owed 53 for emergency repair charges, code violations and the costs and attor- 54 neys fees incurred in the collection of the fees by the municipalities.A. 1662 4 1 13. Balance due. If after an auction a balance is due for emergency 2 repair charges and/or code violations, the municipality may proceed with 3 any action against the former owner pursuant to applicable laws. 4 14. Exclusions. The provisions of this section shall not apply to any 5 municipality that sells their tax liens in a tax lien sale. 6 § 3. This act shall take effect immediately; provided, however, 7 section one of this act shall expire and be deemed repealed May 1, 2027.