Bill Text: NY S01223 | 2009-2010 | General Assembly | Introduced

---

Bill Title: Establishes the urban homestead act for commercial property; allows municipalities to sell foreclosed property for $1 plus closing costs to individuals with a qualified small business plan.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO JUDICIARY [S01223 Detail]

Download: New_York-2009-S01223-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1223
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                   January 28, 2009
                                      ___________
       Introduced  by  Sens. THOMPSON, KRUEGER, PARKER, SMITH -- read twice and
         ordered printed, and when printed to be committed to the Committee  on
         Judiciary
       AN  ACT  to amend the real property law, in relation to establishing the
         urban homestead act for commercial property
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  This  act  shall  be known and may be cited as the "urban
    2  homestead act."
    3    S 2. The real property law is amended by adding a new  article  15  to
    4  read as follows:
    5                                 ARTICLE 15
    6                               URBAN HOMESTEAD
    7  SECTION 470. URBAN HOMESTEAD; COMMERCIAL PROPERTY.
    8    S  470.  URBAN  HOMESTEAD; COMMERCIAL PROPERTY. 1. COMMERCIAL PROPERTY
    9  ACQUIRED   THROUGH FORECLOSURE BY  A  MUNICIPALITY  IN  AN  ECONOMICALLY
   10  DISTRESSED AREA MAY BE SOLD TO  AN ELIGIBLE APPLICANT FOR THE FURNISHING
   11  BY SUCH APPLICANT OF A SMALL BUSINESS TO BENEFIT THE LOCAL COMMUNITY.
   12    2.  SUCH  PROPERTY  MAY  BE  ACQUIRED BY AN ELIGIBLE APPLICANT FOR ONE
   13  DOLLAR PLUS  CLOSING COSTS, PAID TO THE MUNICIPALITY.
   14    3. COMMERCIAL PROPERTY ACQUIRED THROUGH FORECLOSURE BY A  MUNICIPALITY
   15  MUST  BE  IN THE POSSESSION OF THE MUNICIPALITY FOR THREE YEARS IN ORDER
   16  TO QUALIFY FOR A COMMERCIAL  HOMESTEAD PURCHASE.
   17    4. IF THE ELIGIBLE APPLICANT HAS NOT ESTABLISHED  THE  SMALL  BUSINESS
   18  WITHIN  SIX  MONTHS AFTER ACQUISITION, THE PROPERTY SHALL REVERT BACK TO
   19  THE MUNICIPALITY.
   20    5. THE ELIGIBLE APPLICANT MUST OPERATE THE BUSINESS FOR ONE  YEAR,  OR
   21  THE PROPERTY  SHALL REVERT BACK TO THE MUNICIPALITY.
   22    6.  AN ELIGIBLE APPLICANT MAY TRANSFER, RENT OR SELL THE PROPERTY FREE
   23  OF ENCUMBRANCES OF THE MUNICIPALITY FOLLOWING ONE YEAR OF OPERATION OF A
   24  SMALL BUSINESS.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04702-01-9
       S. 1223                             2
    1    7. FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS  SHALL  HAVE  THE
    2  FOLLOWING MEANINGS:
    3    (A)  "ELIGIBLE APPLICANT" SHALL MEAN AN INDIVIDUAL OR GROUP OF PERSONS
    4  WITH A BUSINESS PLAN HAVING THE FOLLOWING CRITERIA:
    5    (I) COMPLETION OF BUSINESS OR ENTREPRENEURIAL TRAINING;
    6    (II) CREDIT HISTORY REPORT;
    7    (III) A FINANCIAL PLAN;
    8    (IV) A PROPERTY REHABILITATION PLAN;
    9    (V) DOCUMENTED BUSINESS EXPERIENCE;
   10    (VI) REQUIRED LICENSING OR CERTIFICATION TO OPERATE THE BUSINESS;
   11    (VII) AN ACCOUNTANT;
   12    (VIII) TAX FILES;
   13    (IX) BANK AND ACCOUNT INFORMATION/DOCUMENTATION;
   14    (X) PROOF OF INSURANCE; AND
   15    (XI) LEGAL REPRESENTATION.
   16    (B) "ECONOMICALLY DISTRESSED AREAS" SHALL MEAN AREAS DETERMINED BY THE
   17  COMMISSIONER OF ECONOMIC DEVELOPMENT ON THE BASIS OF CRITERIA INDICATIVE
   18  OF ECONOMIC  DISTRESS,  INCLUDING  POVERTY  RATES,  NUMBERS  OF  PERSONS
   19  RECEIVING  PUBLIC  ASSISTANCE,  UNEMPLOYMENT  RATES,  RATE OF EMPLOYMENT
   20  DECLINE, POPULATION LOSS, RATE OF PER CAPITA INCOME CHANGE,  DECLINE  IN
   21  ECONOMIC  ACTIVITY AND PRIVATE INVESTMENT, AND  SUCH OTHER INDICATORS AS
   22  THE COMMISSIONER DEEMS APPROPRIATE. ECONOMICALLY  DISTRESSED  AREAS  MAY
   23  INCLUDE  CITIES,  MUNICIPALITIES,  BLOCK  NUMBERING  AREAS,  AND  CENSUS
   24  TRACTS.
   25    S 3. This act shall take effect on the ninetieth day  after  it  shall
   26  have become a law.