Bill Text: NY A10618 | 2017-2018 | General Assembly | Amended


Bill Title: Authorizes the city of Buffalo to add unpaid housing code violation penalties, costs and fines to the city's annual tax levy.

Spectrum: Bipartisan Bill

Status: (Passed) 2018-07-31 - signed chap.167 [A10618 Detail]

Download: New_York-2017-A10618-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                        10618--A
                   IN ASSEMBLY
                                       May 9, 2018
                                       ___________
        Introduced  by  M. of A. PEOPLES-STOKES, BOHEN -- read once and referred
          to the Committee on Real Property Taxation -- reported and referred to
          the Committee on Codes -- committee discharged, bill amended,  ordered
          reprinted as amended and recommitted to said committee
        AN  ACT  to  amend the real property tax law, in relation to authorizing
          the city of Buffalo to add unpaid housing  code  violation  penalties,
          costs  and  fines  to  the  city's  annual tax levy in accordance with
          applicable law
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The  real  property  tax  law  is amended by adding a new
     2  section 905 to read as follows:
     3    § 905. Collection of unpaid housing code violation penalties; levy. 1.
     4  Authorization. In addition to and not in limitation of any power  other-
     5  wise  granted  by  law,  the the city of Buffalo is hereby authorized to
     6  collect any unpaid housing, building and fire code violation  penalties,
     7  costs  and fines through placement by the city's commissioner of finance
     8  on the city's annual tax levy in accordance with the provisions of  this
     9  section.
    10    2.  Eligibility.  In order to be eligible for placement on the city of
    11  Buffalo's annual tax levy such unpaid code  violation  penalties,  costs
    12  and  fines shall have been adjudicated and imposed through a judgment in
    13  a court of competent jurisdiction on an owner of  real  property  within
    14  the  city  and  recorded by the county clerk, as certified by the city's
    15  corporation counsel to the commissioner of  finance  and  have  remained
    16  unpaid  for  one year after the final adjudication and exhaustion of all
    17  appeals relating to the imposition of the fines  for  a  code  violation
    18  preceding the placement on the city's tax levy.
    19    3.  Minimum  amount owed. To qualify for placement on the tax levy the
    20  amount owed for unpaid code violations must be at least five percent  of
    21  the amount of the tax assessed value of the property.
    22    4.  Levy.  Such code violation penalty, cost or fine as set forth in a
    23  copy of the judgment  certified  by  the  corporation  counsel  to  such
    24  commissioner  of  finance shall be set down in the annual tax levy under
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14149-04-8

        A. 10618--A                         2
     1  the heading uncollected fines and penalties and in according  with  this
     2  section  shall  be levied, enforced and collected in the same manner, by
     3  the same proceedings, at the same time, under  the  same  penalties  and
     4  having  the same lien upon the property assessed as the tax levy of such
     5  municipality and as a part thereof.
     6    5. Notice. The city of Buffalo shall notify all owners or known inter-
     7  ested parties of record of the placement of the code violations  on  the
     8  city  tax  levy as uncollected fines and penalties within thirty days of
     9  placement, pursuant to section three hundred eight of the civil practice
    10  law and rules. The notice shall  include  the  date  or  dates  of  such
    11  violations, the description of the violations, the amount owed, a state-
    12  ment detailing the foreclosure process that will occur if the violations
    13  remain  unpaid,  the  process to claim any surplus funds and the contact
    14  information for the city's office in charge of receiving payments.
    15    6. Tax year. Any unpaid code violations shall be  placed  on  the  tax
    16  roll  the  city  of Buffalo is currently in and shall not be placed on a
    17  list, roll or levy of delinquent taxes.
    18    7. Owner occupied. Notwithstanding any other applicable provisions  of
    19  law,  nothing in this section shall be applied to a residential dwelling
    20  that is owner-occupied or is the primary residence of a homeowner.
    21    8. Tenants. Prior to the placement of any property  with  unpaid  code
    22  violations  on the tax levy, the city of Buffalo shall develop a program
    23  to assist tenants residing in a dwelling at risk for tax foreclosure due
    24  to unpaid code violations. Such program shall include housing counseling
    25  assistance or other support in relocating the tenants to suitable  hous-
    26  ing prior to the tax foreclosure.
    27    9.  Payment  plan.  Nothing in this section shall preclude an owner or
    28  landlord from entering into a payment plan with the city of Buffalo  for
    29  past amounts due for code violations.
    30    10. Curing code violations. (a) If all of the violations for which the
    31  penalties,  fees  and  costs  have  been  assessed are cured, removed or
    32  corrected prior to the expiration of the period for redemption  pursuant
    33  to  section  eleven  hundred  ten of this chapter, the property shall be
    34  removed from the levy and auction and the balance  of  the  amount  owed
    35  shall  be  placed  as a lien on the property pursuant to applicable laws
    36  for debt collection and an action for foreclosure of the property  shall
    37  not be maintained for the amount owed.
    38    (b)  The determination of whether or not the code violations have been
    39  cured shall be made by the city of Buffalo's enforcing officer in charge
    40  of ensuring compliance with applicable housing, building, and fire codes
    41  such as a code enforcement officer.  An appeal of this determination may
    42  be made to the city's zoning board of appeals or other local administra-
    43  tive body as provided for in local law.  The final determination made by
    44  the administrative body shall be reviewable pursuant to  article  seven-
    45  ty-eight of the civil practice law and rules.
    46    (c)  This  section  shall  not  be  applicable  to any cause of action
    47  brought for money due based on the curing of code violations  under  any
    48  form for receivership or a mechanic's lien.
    49    11.  Payment  prior  to  auction.  (a)  If  the  balance owed for code
    50  violations placed on the tax levy is paid prior to the expiration of the
    51  period for redemption pursuant to section eleven  hundred  ten  of  this
    52  chapter  and there is no balance due for unpaid real property taxes, the
    53  property may not be auctioned, and the property shall  be  removed  from
    54  the tax levy.

        A. 10618--A                         3
     1    (b)  The  owner  shall have the right to pay the full balance prior to
     2  the expiration of the period for redemption pursuant to  section  eleven
     3  hundred ten of this chapter in order to redeem the property.
     4    12.  Surplus. Any surplus funds remaining after the sale of a property
     5  at a tax foreclosure for unpaid code violations shall be returned to the
     6  former owner of the property in a manner as provided  under  local  law.
     7  This provision shall not apply to a sale of a property at a tax foreclo-
     8  sure due to unpaid taxes. If a property has both unpaid taxes and unpaid
     9  code  violations on the same tax levy and is auctioned at a tax foreclo-
    10  sure the amount of the surplus funds returned to the former owner  shall
    11  be  proportionate  to  the  amount of unpaid code violations owed in the
    12  total amount of debt owed to the city of Buffalo.   For the  purpose  of
    13  this  section,  "surplus funds" shall mean the balance of money received
    14  after auction of a property at a tax foreclosure sale minus  the  amount
    15  owed  for  code violations and the costs and attorneys' fees incurred in
    16  the collection of the fees by the city.
    17    13. Balance due. If after  an  auction  a  balance  is  due  for  code
    18  violations,  the city of Buffalo may proceed with any action against the
    19  former owner pursuant to applicable laws.
    20    14. Exclusions. The provisions of this section shall not apply to  any
    21  municipality that sells their tax liens in a tax sale.
    22    § 2. This act shall take effect immediately.
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