Bill Text: NY S03478 | 2019-2020 | General Assembly | Introduced


Bill Title: Authorizes municipalities in the county of Rockland to add unpaid housing code violation penalties, costs and fines to such municipalities' annual tax levy in accordance with applicable law.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-01-08 - REFERRED TO LOCAL GOVERNMENT [S03478 Detail]

Download: New_York-2019-S03478-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          3478
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 7, 2019
                                       ___________
        Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government
        AN ACT to amend the real property tax law, in  relation  to  authorizing
          certain municipalities to add unpaid housing code violation penalties,
          costs  and fines to such municipalities' 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 903 to read as follows:
     3    § 903. 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, municipalities in the county of Rockland, including
     6  the  county  of  Rockland,  are  hereby authorized to collect any unpaid
     7  housing, building and fire code violation  penalties,  costs  and  fines
     8  through  placement by the municipality's commissioner of finance, treas-
     9  urer, or other public official charged with the duties of overseeing tax
    10  collections on the municipality's annual tax levy in accordance with the
    11  provisions of this section.
    12    2. Eligibility. In order to be eligible for placement on  the  munici-
    13  pality's annual tax levy such unpaid code violation penalties, costs and
    14  fines  shall  have  been adjudicated and imposed through a judgment in a
    15  court of competent jurisdiction on an owner of real property within  the
    16  municipality  and  recorded  by  the  county  clerk, as certified by the
    17  municipal counsel to the commissioner of  finance,  treasurer  or  other
    18  public  official  charged  with the duties of overseeing tax collections
    19  and have remained unpaid for one year after the final  adjudication  and
    20  exhaustion  of all appeals relating to the imposition of the fines for a
    21  code violation preceding the placement on the municipality's tax levy.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06174-01-9

        S. 3478                             2
     1    3. Minimum amount owed. To qualify for placement on the tax  levy  the
     2  amount  owed for unpaid code violations must be at least five percent of
     3  the amount of the tax assessed value of the property.
     4    4.  Levy.  Such code violation penalty, cost or fine as set forth in a
     5  copy of the judgment certified by the municipal counsel to  the  commis-
     6  sioner  of  finance, treasurer or other public official charged with the
     7  duties of overseeing tax collections shall be set down in the annual tax
     8  levy under the heading uncollected fines and penalties and in  according
     9  with  this  section  shall be levied, enforced and collected in the same
    10  manner, by the same proceedings, at the same time, under the same penal-
    11  ties and having the same lien upon the property assessed as the  general
    12  municipal tax and as a part thereof.
    13    5.  Notice.  The  municipality shall notify all owners or known inter-
    14  ested parties of record of the placement of the code violations  on  the
    15  municipal tax levy as uncollected fines and penalties within thirty days
    16  of placement, pursuant to section three hundred eight of the civil prac-
    17  tice  law  and rules. The notice shall include the date or dates of such
    18  violations, the description of the violations, the amount owed, a state-
    19  ment detailing the foreclosure process that will occur if the violations
    20  remain unpaid, the process to claim any surplus funds  and  the  contact
    21  information for the municipal office in charge of receiving payments.
    22    6.  Tax  year.  Any  unpaid code violations shall be placed on the tax
    23  roll the municipality is currently in and shall not be placed on a list,
    24  roll or levy of delinquent taxes.
    25    7. Owner occupied. Notwithstanding any other applicable provisions  of
    26  law,  nothing in this section shall be applied to a residential dwelling
    27  that is owner-occupied or is the primary residence of a homeowner.
    28    8. Tenants. Prior to the placement of any property  with  unpaid  code
    29  violations  on the tax levy, the municipality shall develop a program to
    30  assist tenants residing in a dwelling at risk for tax foreclosure due to
    31  unpaid code violations. Such program shall  include  housing  counseling
    32  assistance  or other support in relocating the tenants to suitable hous-
    33  ing prior to the tax foreclosure.
    34    9. Payment plan.  Nothing in this section shall preclude an  owner  or
    35  landlord  from entering into a payment plan with a municipality for past
    36  amounts due for code violations.
    37    10. Curing code violations. (a) If all of the violations for which the
    38  penalties, fees and costs have  been  assessed  are  cured,  removed  or
    39  corrected  prior to the expiration of the period for redemption pursuant
    40  to section eleven hundred ten of this chapter,  the  property  shall  be
    41  removed  from  the  levy  and auction and the balance of the amount owed
    42  shall be placed as a lien on the property pursuant  to  applicable  laws
    43  for  debt collection and an action for foreclosure of the property shall
    44  not be maintained for the amount owed. In the village  of  Upper  Nyack,
    45  the  time  period for redemption shall be the same time period set forth
    46  by the village of Upper Nyack for the village's annual tax levy.
    47    (b) The determination of whether or not the code violations have  been
    48  cured  shall  be made by the local municipal enforcing officer in charge
    49  of ensuring compliance with applicable housing, building, and fire codes
    50  such as a code enforcement officer.  An appeal of this determination may
    51  be made to the municipality's zoning board of  appeals  or  other  local
    52  administrative  body  as  provided  for in local law. The final determi-
    53  nation made by the administrative body shall be reviewable  pursuant  to
    54  article seventy-eight of the civil practice law and rules.

        S. 3478                             3
     1    (c)  This  section  shall  not  be  applicable  to any cause of action
     2  brought for money due based on the curing of code violations  under  any
     3  form for receivership or a mechanics lien.
     4    11.  Payment  prior  to  auction.  (a)  If  the  balance owed for code
     5  violations placed on the tax levy is paid prior to the expiration of the
     6  period for redemption pursuant to section eleven  hundred  ten  of  this
     7  chapter  and there is no balance due for unpaid real property taxes, the
     8  property may not be auctioned, and the property shall  be  removed  from
     9  the  tax levy. In the village of Upper Nyack the time period for redemp-
    10  tion shall be the same time period set forth by  the  village  of  Upper
    11  Nyack for the village's annual tax levy.
    12    (b)  The  owner  shall have the right to pay the full balance prior to
    13  the expiration of the period for redemption pursuant to  section  eleven
    14  hundred  ten  of  this  chapter  in order to redeem the property. In the
    15  village of Upper Nyack the time period for redemption shall be the  same
    16  time  period  set  forth by the village of Upper Nyack for the village's
    17  annual tax levy.
    18    12. Surplus. Any surplus funds remaining after the sale of a  property
    19  at a tax foreclosure for unpaid code violations shall be returned to the
    20  former owner of the property in a manner provided under local law.  This
    21  provision  shall  not apply to a sale of a property at a tax foreclosure
    22  due to unpaid taxes. If a property has both unpaid taxes and unpaid code
    23  violations on the same tax levy and is auctioned at  a  tax  foreclosure
    24  the  amount  of  the surplus funds returned to the former owner shall be
    25  proportionate to the amount of unpaid code violations owed in the  total
    26  amount  of  debt  owed  to  the  municipality.  For  the purpose of this
    27  section, "surplus funds" shall mean the balance of money received  after
    28  auction  of  a  property at a tax foreclosure sale minus the amount owed
    29  for code violations and the costs and attorneys  fees  incurred  in  the
    30  collection of the fees by the municipalities.
    31    13.  Balance  due.  If  after  an  auction  a  balance is due for code
    32  violations, the municipality may proceed with  any  action  against  the
    33  former owner pursuant to applicable laws.
    34    14.  Exclusions. The provisions of this section shall not apply to any
    35  municipality that sells their tax liens in a tax lien sale.
    36    § 2. This act shall take effect immediately.
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