Bill Text: NY S03888 | 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 2-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CITIES [S03888 Detail]
Download: New_York-2019-S03888-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3888 2019-2020 Regular Sessions IN SENATE February 20, 2019 ___________ Introduced by Sen. STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Cities 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 22 on an assessment roll as a dwelling unit in other than condomin- 23 ium form of ownership; and (c) residential real property EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02934-01-9S. 3888 2 1 consisting of one family house structures owned by the occupant, 2 situated on land held in cooperative ownership by owner occupi- 3 ers, provided that; (i) such house structures and land consti- 4 tuted bungalow colonies in existence prior to nineteen hundred 5 forty; and (ii) the land is held in cooperative ownership for 6 the sole purpose of maintaining one family residences for 7 members own use; and (d) all vacant land located within a 8 special assessing unit which is a city (i) other than such land 9 in the borough of Manhattan, provided that any such vacant land 10 which is not zoned residential must be situated immediately 11 adjacent to property improved with a residential structure as 12 defined in subparagraphs (a) and (b) of this paragraph, be owned 13 by the same owner as such immediately adjacent residential prop- 14 erty immediately prior to and since January 1, 1989, and have a 15 total area not exceeding 10,000 square feet; and (ii) located in 16 the borough of Manhattan north of or adjacent to the north side 17 of 110th street provided such vacant land was classified within 18 this class on the assessment roll with a taxable status date of 19 January 5, 2008 and the owner of such land has entered into a 20 recorded agreement with a governmental entity on or before 21 December 31, 2008 requiring construction of housing affordable 22 to persons or families of low income in accordance with the 23 provisions of the private housing finance law. Notwithstanding 24 the foregoing, such vacant land shall be classified according to 25 its use on the assessment roll with a taxable status date imme- 26 diately following commencement of construction, provided 27 further, that construction pursuant to an approved plan for 28 affordable housing shall commence no later than December 31, 29 2010; and (e) all vacant land located within a special assessing 30 unit which is not a city, provided that such vacant land which 31 is not zoned residential must be situated immediately adjacent 32 to real property defined in subparagraph (a), (b) or (c) of this 33 paragraph and be owned by the same person or persons who own the 34 real property defined in such subparagraph immediately prior to 35 and since January 1, 2003; 36 Class two: [all other] residential real property held in cooperative 37 or condominium form of ownership which is not designated as 38 class one[, except hotels and motels and other similar commer-39cial property]; 40 Class three: utility real property and property subject to former 41 section four hundred seventy of this chapter; 42 Class four: all other real property which is not designated as class 43 one, class two, [or] class three[.], or class five; 44 Class five: all other residential real property which is not desig- 45 nated as class one, except hotels and motels and other similar 46 commercial property, or class two. 47 § 2. The opening paragraph of subdivision 2 of section 1805 of the 48 real property tax law, as amended by chapter 586 of the laws of 1992, is 49 amended to read as follows: 50 The assessment roll of a special assessing unit wholly contained with- 51 in a city shall identify those parcels classified in class two or class 52 five which have fewer than eleven residential units. The assessor of any 53 such special assessing unit shall not increase the assessment of any 54 parcel so identified in any one year, as measured from the actual 55 assessment on the previous year's assessment roll, by more than eight 56 percent and shall not increase such assessment by more than thirtyS. 3888 3 1 percent in any five-year period. The first such five-year period shall 2 be measured from the individual assessment appearing on the assessment 3 roll completed in nineteen hundred eighty-one provided that, if such 4 parcel would not have been subject to the provisions of this subdivision 5 in nineteen hundred eighty-one had this subdivision then been in effect, 6 the first such five-year period shall be measured from the first year 7 after nineteen hundred eighty-one in which this subdivision applied to 8 such parcel or would have applied to such parcel had this subdivision 9 been in effect in such year. 10 § 3. Subdivision 6 of section 1805 of the real property tax law, as 11 added by chapter 711 of the laws of 2005, is amended to read as follows: 12 6. Notwithstanding any provision of law to the contrary, in any 13 special assessing unit wholly contained within a city, beginning with 14 the assessment roll completed in two thousand five and for each subse- 15 quent assessment roll, the assessor shall not increase the assessment of 16 any existing property classified in class two or class five that has 17 fewer than eleven residential units, with respect to any increase in 18 value attributable to additions to or improvements of such property that 19 were not reflected on the assessment roll for a previous year, by more 20 than one-third of the amount that such assessment would increase, in the 21 absence of this subdivision, with respect to any increase in value 22 attributable to additions to or improvements of such property that were 23 not reflected on the assessment roll for a previous year. Notwithstand- 24 ing the provisions of subdivision five of this section, the remainder of 25 the increase in value attributable to such additions or improvements 26 that were not reflected on the assessment roll for a previous year shall 27 be subject to the limitations on increases provided in subdivision two 28 of this section. This subdivision shall not apply to the construction of 29 a new building or structure. This subdivision shall not apply where, as 30 a result of such additions to or improvements of the existing property 31 classified in class five, there are more than ten residential units in 32 such property. 33 § 4. Paragraph (f) of subdivision 1 of section 467-a of the real prop- 34 erty tax law, as added by chapter 273 of the laws of 1996, is amended to 35 read as follows: 36 (f) "Property" means real property designated as class two, pursuant 37 to section eighteen hundred two of this chapter[, held in the cooper-38ative or condominium form of ownership]. 39 § 5. Subdivision 7 of section 499-aaa of the real property tax law, as 40 added by chapter 461 of the laws of 2008, is amended to read as follows: 41 7. "Eligible building" shall mean a class one, class two [or], class 42 four or class five real property, as defined in subdivision one of 43 section eighteen hundred two of this chapter, located within a city 44 having a population of one million or more persons. No building shall be 45 eligible for more than one tax abatement pursuant to this title. 46 § 6. Subdivision 7 of section 499-aaaa of the real property tax law, 47 as added by chapter 473 of the laws of 2008, is amended to read as 48 follows: 49 7. "Eligible building" shall mean a class one, class two [or], class 50 four or class five real property, as defined in subdivision one of 51 section eighteen hundred two of this chapter, located within a city 52 having a population of one million or more persons. No building shall be 53 eligible for more than one tax abatement pursuant to this title. 54 § 7. Paragraph (b) of subdivision 3 of section 522 of the real proper- 55 ty tax law, as added by chapter 714 of the laws of 1982, is amended to 56 read as follows:S. 3888 4 1 (b) in a special assessing unit, the determination, pursuant to 2 section eighteen hundred two of this chapter, of whether real property 3 is included in class one, two, three [or], four or five. 4 § 8. Subdivision 10 of section 523-b of the real property tax law, as 5 added by chapter 593 of the laws of 1998, is amended to read as follows: 6 10. On or before April first, each year the commission shall mail to 7 each applicant, who has filed an application for the correction of the 8 assessment, a notice of the commission's determination of such appli- 9 cant's assessment. Such notice shall also contain the statement as to 10 the final determination of the assessment review commission, or a state- 11 ment that the commission has not yet made a determination as to the 12 final assessed valuation which shall be made as soon as the petitioners 13 application is reviewed or heard. If the applicants property is a prop- 14 erty defined in subdivision one of section eighteen hundred two of this 15 chapter as "Class 1", the commissions determination shall contain the 16 statement: "If you are dissatisfied with the determination of the 17 Assessment Review Commission and you are the owner of a one, two or 18 three family residential structure or residential real property not more 19 than three stories in height held in condominium form of ownership, 20 provided that no dwelling unit therein previously was on an assessment 21 roll as a dwelling unit in other than condominium form of ownership, and 22 you reside at such residence, you may seek judicial review of your 23 assessment either under title one of article seven of the real property 24 tax law or under small claims assessment review law provided by title 25 one-A of article seven of the real property tax law." Such notice shall 26 also state [that] the last date to file petitions for judicial review 27 and the location where small claims assessment review petitions may be 28 obtained. 29 Each applicant that has filed an application of a property as defined 30 in subdivision one of section eighteen hundred two of this chapter as 31 "Class 2", "Class 3" [or], "Class 4" or "Class 5", shall receive a 32 notice as to the final determination of the assessment review commission 33 or a statement that the commission has not yet made a determination as 34 to the final assessed valuation which shall be made as soon as the peti- 35 tioners application is reviewed or heard. Such applicants determinations 36 shall contain the statement: "If you are dissatisfied with the determi- 37 nation of the Assessment Review Commission you may seek judicial review 38 of your assessment under title one of article seven of the real property 39 tax law." Such notice shall also state the last date to file petitions 40 for judicial review. A final determination when rendered shall contain 41 the same statement. Failure to mail any such notice or failure of the 42 applicant to receive the same shall not affect the validity of the 43 assessment. 44 § 9. Paragraph (b) of subdivision 3 of section 701 of the real proper- 45 ty tax law, as added by chapter 714 of the laws of 1982, is amended to 46 read as follows: 47 (b) In a special assessing unit, the determination, pursuant to 48 section eighteen hundred two of this chapter, of whether real property 49 is included in class one, two, three [or], four or five. 50 § 10. Subparagraph 2 of paragraph (a) of subdivision 3 of section 720 51 of the real property tax law, as amended by chapter 679 of the laws of 52 1986, is amended to read as follows: 53 (2) "Major type of property" in special assessing units, for assess- 54 ments on rolls completed after December thirty-first, nineteen hundred 55 eighty-one, shall mean classes one, two, three [and], four and five asS. 3888 5 1 defined in subdivision one of section eighteen hundred two of this chap- 2 ter. 3 § 11. Subdivisions e and f of section 11-208.1 of the administrative 4 code of the city of New York, subdivision e as amended by local law 5 number 41 of the city of New York for the year 1986 and subdivision f as 6 amended by chapter 385 of the laws of 2006, are amended to read as 7 follows: 8 e. As used in this section, the term "income-producing property" means 9 property owned for the purpose of securing an income from the property 10 itself, but shall not include property with an assessed value of forty 11 thousand dollars or less, or residential property containing ten or 12 fewer dwelling units or property classified in class one [or], two or 13 five as defined in article eighteen of the real property tax law 14 containing six or fewer dwelling units and one retail store. 15 f. Except in accordance with proper judicial order or as otherwise 16 provided by law, it shall be unlawful for the commissioner, any officer 17 or employee of the department, the president or a commissioner or 18 employee of the tax commission, any person engaged or retained by the 19 department or the tax commission on an independent contract basis, or 20 any person, who, pursuant to this section, is permitted to inspect any 21 income and expense statement or to whom a copy, an abstract or a portion 22 of any such statement is furnished, to divulge or make known in any 23 manner except as provided in this subdivision, the amount of income 24 and/or expense or any particulars set forth or disclosed in any such 25 statement required under this section. The commissioner, the president 26 of the tax commission, or any commissioner or officer or employee of the 27 department or the tax commission charged with the custody of such state- 28 ments shall not be required to produce any income and expense statement 29 or evidence of anything contained in them in any action or proceeding in 30 any court, except on behalf of the department or the tax commission. 31 Nothing herein shall be construed to prohibit the delivery to an owner 32 or his or her duly authorized representative of a certified copy of any 33 statement filed by such owner pursuant to this section or to prohibit 34 the publication of statistics so classified as to prevent the identifi- 35 cation of particular statements and the items thereof, or making known 36 aggregate income and expense information disclosed with respect to prop- 37 erty classified as class four as defined in article eighteen of the real 38 property tax law without identifying information about individual leas- 39 es, or making known a range as determined by the commissioner within 40 which the income and expenses of a property classified as class two or 41 class five falls, or the inspection by the legal representatives of the 42 department or of the tax commission of the statement of any owner who 43 shall bring an action to correct the assessment. Any violation of the 44 provisions of this subdivision shall be punished by a fine not exceeding 45 one thousand dollars or by imprisonment not exceeding one year, or both, 46 at the discretion of the court, and if the offender be an officer or 47 employee of the department or the tax commission, the offender shall be 48 dismissed from office. 49 § 12. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of 50 the administrative code of the city of New York, subdivisions a, a-1, 51 a-2 and a-3 as amended and subdivision a-5 as added by local law number 52 15 of the city of New York for the year 2011 and subdivision a-4 as 53 amended by local law number 4 of the city of New York for the year 2017, 54 are amended to read as follows: 55 a. A tax lien or tax liens on a property or any component of the 56 amount thereof may be sold by the city as authorized by subdivision b ofS. 3888 6 1 this section, when such tax lien or tax liens shall have remained unpaid 2 in whole or in part for one year, provided, however, that a tax lien or 3 tax liens on any class one property or [on] class two property [that is4a residential condominium or residential cooperative], as such classes 5 of property are defined in subdivision one of section eighteen hundred 6 two of the real property tax law, may be sold by the city only when the 7 real property tax component of such tax lien or tax liens shall have 8 remained unpaid in whole or in part for three years or, in the case of 9 any class [two] five residential property owned by a company organized 10 pursuant to article XI of the state private housing finance law [that is11not a residential condominium or a residential cooperative], as such 12 class of property is defined in subdivision one of section eighteen 13 hundred two of the real property tax law, for two years, and equals or 14 exceeds the sum of five thousand dollars or, in the case of abandoned 15 class one property [or], abandoned class two property [that is a resi-16dential condominium or residential cooperative], for eighteen months, 17 and after such sale, shall be transferred, in the manner provided by 18 this chapter, and provided, further, however, that (i) the real property 19 tax component of such tax lien may not be sold pursuant to this subdivi- 20 sion on any residential real property in class one that is receiving an 21 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or 22 pursuant to section four hundred fifty-eight of the real property tax 23 law with respect to real property purchased with payments received as 24 prisoner of war compensation from the United States government, or 25 pursuant to paragraph (b) or (c) of subdivision two of section four 26 hundred fifty-eight-a of the real property tax law, or where the owner 27 of such residential real property in class one is receiving benefits in 28 accordance with department of finance memorandum 05-3, or any successor 29 memorandum thereto, relating to active duty military personnel, or where 30 the owner of such residential real property in class one has been 31 allowed a credit pursuant to subsection (e) of section six hundred six 32 of the tax law for the calendar year in which the date of the first 33 publication, pursuant to subdivision a of section 11-320 of this chap- 34 ter, of the notice of sale, occurs or for the calendar year immediately 35 preceding such date and (ii) the sewer rents component, sewer surcharges 36 component or water rents component of such tax lien may not be sold 37 pursuant to this subdivision on any one family residential real property 38 in class one or on any two or three family residential real property in 39 class one that is receiving an exemption pursuant to section 11-245.3 or 40 11-245.4 of this title, or pursuant to section four hundred fifty-eight 41 of the real property tax law with respect to real property purchased 42 with payments received as prisoner of war compensation from the United 43 States government, or pursuant to paragraph (b) or (c) of subdivision 44 two of section four hundred fifty-eight-a of the real property tax law, 45 or where the owner of any two or three family residential real property 46 in class one is receiving benefits in accordance with department of 47 finance memorandum 05-3, or any successor memorandum thereto, relating 48 to active duty military personnel, or where the owner of any two or 49 three family residential real property in class one has been allowed a 50 credit pursuant to subsection (e) of section six hundred six of the tax 51 law for the calendar year in which the date of the first publication, 52 pursuant to subdivision a of section 11-320 of this chapter, of the 53 notice of sale, occurs or for the calendar year immediately preceding 54 such date. A tax lien or tax liens on any property classified as a 55 [class two property, except a class two property that is a residential56condominium or residential cooperative, or a class two residential prop-S. 3888 7 1erty owned by a company organized pursuant to article XI of the state2private housing finance law that is not a residential condominium or a3residential cooperative, or] class three property, or a class five prop- 4 erty owned by a company organized pursuant to article XI of the state 5 private housing finance law as such classes of property are defined in 6 subdivision one of section eighteen hundred two of the real property tax 7 law, shall not be sold by the city unless such tax lien or tax liens 8 include a real property tax component as of the date of the first publi- 9 cation, pursuant to subdivision a of section 11-320 of this chapter, of 10 the notice of sale. Notwithstanding any provision of this subdivision to 11 the contrary, any such tax lien or tax liens that remain unpaid in whole 12 or in part after such date may be sold regardless of whether such tax 13 lien or tax liens include a real property tax component. A tax lien or 14 tax liens on a property classified as a class four property, as such 15 class of property is defined in subdivision one of section eighteen 16 hundred two of the real property tax law, shall not be sold by the city 17 unless such tax lien or tax liens include a real property tax component 18 or sewer rents component or sewer surcharges component or water rents 19 component or emergency repair charges component, where such emergency 20 repair charges accrued on or after January first, two thousand six and 21 are made a lien pursuant to section 27-2144 of this code, as of the date 22 of the first publication, pursuant to subdivision a of section 11-320 of 23 this chapter, of the notice of sale, provided, however, that any tax 24 lien or tax liens that remain unpaid in whole or in part after such date 25 may be sold regardless of whether such tax lien or tax liens include a 26 real property tax component, sewer rents component, sewer surcharges 27 component, water rents component or emergency repair charges component. 28 For purposes of this subdivision, the words "real property tax" shall 29 not include an assessment or charge upon property imposed pursuant to 30 section 25-411 of [the administrative] this code. A sale of a tax lien 31 or tax liens shall include, in addition to such lien or liens that have 32 remained unpaid in whole or in part for one year, or, in the case of any 33 class one property or class two property [that is a residential condo-34minium or residential cooperative], when the real property tax component 35 of such lien or liens has remained unpaid in whole or in part for three 36 years, or, in the case of any class [two] five residential property 37 owned by a company organized pursuant to article XI of the state private 38 housing finance law [that is not a residential condominium or a residen-39tial cooperative], when the real property tax component of such lien or 40 liens has remained unpaid in whole or in part for two years, and equals 41 or exceeds the sum of five thousand dollars, any taxes, assessments, 42 sewer rents, sewer surcharges, water rents, any other charges that are 43 made a lien subject to the provisions of this chapter, the costs of any 44 advertisements and notices given pursuant to this chapter, any other 45 charges that are due and payable, a surcharge pursuant to section 11-332 46 of this chapter, and interest and penalties thereon or such component of 47 the amount thereof as shall be determined by the commissioner of 48 finance. The commissioner of finance may promulgate rules defining 49 "abandoned" property, as such term is used in this subdivision. 50 a-1. A subsequent tax lien or tax liens on a property or any component 51 of the amount thereof may be sold by the city pursuant to this chapter, 52 provided, however, that notwithstanding any provision in this chapter to 53 the contrary, such tax lien or tax liens may be sold regardless of 54 whether such tax lien or tax liens have remained unpaid in whole or in 55 part for one year and, notwithstanding any provision in this chapter to 56 the contrary, in the case of any class one property or class two proper-S. 3888 8 1 ty [that is a residential condominium or residential cooperative] or, 2 beginning January first, two thousand twelve, in the case of any class 3 [two] five residential property owned by a company organized pursuant to 4 article XI of the state private housing finance law [that is not a resi-5dential condominium or a residential cooperative], such tax lien or tax 6 liens may be sold if the real property tax component of such tax lien or 7 tax liens has remained unpaid in whole or in part for one year, and 8 provided, further, however, that (i) the real property tax component of 9 such tax lien may not be sold pursuant to this subdivision on any resi- 10 dential real property in class one that is receiving an exemption pursu- 11 ant to section 11-245.3 or 11-245.4 of this title, or pursuant to 12 section four hundred fifty-eight of the real property tax law with 13 respect to real property purchased with payments received as prisoner of 14 war compensation from the United States government, or pursuant to para- 15 graph (b) or (c) of subdivision two of section four hundred 16 fifty-eight-a of the real property tax law, or where the owner of such 17 residential real property in class one is receiving benefits in accord- 18 ance with department of finance memorandum 05-3, or any successor memo- 19 randum thereto, relating to active duty military personnel, or where the 20 owner of such residential real property in class one has been allowed a 21 credit pursuant to subsection (e) of section six hundred six of the tax 22 law for the calendar year in which the date of the first publication, 23 pursuant to subdivision a of section 11-320 of this chapter, of the 24 notice of sale, occurs or for the calendar year immediately preceding 25 such date and (ii) the sewer rents component, sewer surcharges component 26 or water rents component of such tax lien may not be sold pursuant to 27 this subdivision on any one family residential real property in class 28 one or on any two or three family residential real property in class one 29 that is receiving an exemption pursuant to section 11-245.3 or 11-245.4 30 of this title, or pursuant to section four hundred fifty-eight of the 31 real property tax law with respect to real property purchased with 32 payments received as prisoner of war compensation from the United States 33 government, or pursuant to paragraph (b) or (c) of subdivision two of 34 section four hundred fifty-eight-a of the real property tax law, or 35 where the owner of any two or three family residential real property in 36 class one is receiving benefits in accordance with department of finance 37 memorandum 05-3, or any successor memorandum thereto, relating to active 38 duty military personnel, or where the owner of any two or three family 39 residential real property in class one has been allowed a credit pursu- 40 ant to subsection (e) of section six hundred six of the tax law for the 41 calendar year in which the date of the first publication, pursuant to 42 subdivision a of section 11-320 of this chapter, of the notice of sale, 43 occurs or for the calendar year immediately preceding such date. For 44 purposes of this subdivision, the term "subsequent tax lien or tax 45 liens" shall mean any tax lien or tax liens on property that become such 46 on or after the date of sale of any tax lien or tax liens on such prop- 47 erty that have been sold pursuant to this chapter, provided that the 48 prior tax lien or tax liens remain unpaid as of the date of the first 49 publication, pursuant to subdivision a of section 11-320 of this chap- 50 ter, of the notice of sale of the subsequent tax lien or tax liens. A 51 subsequent tax lien or tax liens on any property classified as a [class52two property, except a class two property that is a residential condo-53minium or residential cooperative, or a class two residential property54owned by a company organized pursuant to article XI of the state private55housing finance law that is not a residential condominium or a residen-56tial cooperative, or]class three property, or a class five propertyS. 3888 9 1 owned by a company organized pursuant to article XI of the state private 2 housing finance law, as such classes of property are defined in subdivi- 3 sion one of section eighteen hundred two of the real property tax law, 4 shall not be sold by the city unless such tax lien or tax liens include 5 a real property tax component as of the date of the first publication, 6 pursuant to subdivision a of section 11-320 of this chapter, of the 7 notice of sale. Notwithstanding any provision of this subdivision to the 8 contrary, any such tax lien or tax liens that remain unpaid in whole or 9 in part after such date may be sold regardless of whether such tax lien 10 or tax liens include a real property tax component. A subsequent tax 11 lien or tax liens on a property classified as a class four property, as 12 such class of property is defined in subdivision one of section eighteen 13 hundred two of the real property tax law, shall not be sold by the city 14 unless such tax lien or tax liens include a real property tax component 15 or sewer rents component or sewer surcharges component or water rents 16 component or emergency repair charges component, where such emergency 17 repair charges accrued on or after January first, two thousand six and 18 are made a lien pursuant to section 27-2144 of this code, as of the date 19 of the first publication, pursuant to subdivision a of section 11-320 of 20 this chapter, of the notice of sale, provided, however, that any tax 21 lien or tax liens that remain unpaid in whole or in part after such date 22 may be sold regardless of whether such tax lien or tax liens include a 23 real property tax component, sewer rents component, sewer surcharges 24 component, water rents component or emergency repair charges component. 25 For purposes of this subdivision, the words "real property tax" shall 26 not include an assessment or charge upon property imposed pursuant to 27 section 25-411 of [the administrative] this code. Nothing in this subdi- 28 vision shall be deemed to limit the rights conferred by section 11-332 29 of this chapter on the holder of a tax lien certificate with respect to 30 a subsequent tax lien. 31 a-2. In addition to any sale authorized pursuant to subdivision a or 32 subdivision a-1 of this section and notwithstanding any provision of 33 this chapter to the contrary, beginning on December first, two thousand 34 seven, the water rents, sewer rents and sewer surcharges components of 35 any tax lien on any class of real property, as such real property is 36 classified in subdivision one of section eighteen hundred two of the 37 real property tax law, may be sold by the city pursuant to this chapter, 38 where such water rents, sewer rents or sewer surcharges component of 39 such tax lien, as of the date of the first publication, pursuant to 40 subdivision a of section 11-320 of this chapter, of the notice of sale: 41 (i) shall have remained unpaid in whole or in part for one year and (ii) 42 equals or exceeds the sum of one thousand dollars or, beginning on March 43 first, two thousand eleven, in the case of any two or three family resi- 44 dential real property in class one, for one year, and equals or exceeds 45 the sum of two thousand dollars, or, beginning on January first, two 46 thousand twelve, in the case of any class [two] five residential proper- 47 ty owned by a company organized pursuant to article XI of the state 48 private housing finance law [that is not a residential condominium or a49residential cooperative], as such class of property is defined in subdi- 50 vision one of section eighteen hundred two of the real property tax law, 51 for two years, and equals or exceeds the sum of five thousand dollars; 52 provided, however, that such water rents, sewer rents or sewer 53 surcharges component of such tax lien may not be sold pursuant to this 54 subdivision on any one family residential real property in class one or 55 on any two or three family residential real property in class one that 56 is receiving an exemption pursuant to section 11-245.3 or 11-245.4 ofS. 3888 10 1 this title, or pursuant to section four hundred fifty-eight of the real 2 property tax law with respect to real property purchased with payments 3 received as prisoner of war compensation from the United States govern- 4 ment, or pursuant to paragraph (b) or (c) of subdivision two of section 5 four hundred fifty-eight-a of the real property tax law, or where the 6 owner of any two or three family residential real property in class one 7 is receiving benefits in accordance with department of finance memoran- 8 dum 05-3, or any successor memorandum thereto, relating to active duty 9 military personnel, or where the owner of any two or three family resi- 10 dential real property in class one has been allowed a credit pursuant to 11 subsection (e) of section six hundred six of the tax law for the calen- 12 dar year in which the date of the first publication, pursuant to subdi- 13 vision a of section 11-320 of this chapter, of the notice of sale, 14 occurs or for the calendar year immediately preceding such date. After 15 such sale, any such water rents, sewer rents or sewer surcharges compo- 16 nent of such tax lien may be transferred in the manner provided by this 17 chapter. 18 a-3. In addition to any sale authorized pursuant to subdivision a or 19 subdivision a-1 of this section and notwithstanding any provision of 20 this chapter to the contrary, beginning on December first, two thousand 21 seven, a subsequent tax lien on any class of real property, as such real 22 property is classified in subdivision one of section eighteen hundred 23 two of the real property tax law, may be sold by the city pursuant to 24 this chapter, regardless of whether such subsequent tax lien, or any 25 component of the amount thereof, shall have remained unpaid in whole or 26 in part for one year, and regardless of whether such subsequent tax 27 lien, or any component of the amount thereof, equals or exceeds the sum 28 of one thousand dollars or beginning on March first, two thousand elev- 29 en, in the case of any two or three family residential real property in 30 class one, a subsequent tax lien on such property may be sold by the 31 city pursuant to this chapter, regardless of whether such subsequent tax 32 lien, or any component of the amount thereof, shall have remained unpaid 33 in whole or in part for one year, and regardless of whether such subse- 34 quent tax lien, or any component of the amount thereof, equals or 35 exceeds the sum of two thousand dollars, or, beginning on January first, 36 two thousand twelve, in the case of any class [two] five residential 37 property owned by a company organized pursuant to article XI of the 38 state private housing finance law [that is not a residential condominium39or a residential cooperative], as such class of property is defined in 40 subdivision one of section eighteen hundred two of the real property tax 41 law, a subsequent tax lien on such property may be sold by the city 42 pursuant to this chapter, regardless of whether such subsequent tax 43 lien, or any component of the amount thereof, shall have remained unpaid 44 in whole or in part for two years, and regardless of whether such subse- 45 quent tax lien, or any component of the amount thereof, equals or 46 exceeds the sum of five thousand dollars; provided, however, that such 47 subsequent tax lien may not be sold pursuant to this subdivision on any 48 one family residential real property in class one or on any two or three 49 family residential real property in class one that is receiving an 50 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or 51 pursuant to section four hundred fifty-eight of the real property tax 52 law with respect to real property purchased with payments received as 53 prisoner of war compensation from the United States government, or 54 pursuant to paragraph (b) or (c) of subdivision two of section four 55 hundred fifty-eight-a of the real property tax law, or where the owner 56 of any two or three family residential real property in class one isS. 3888 11 1 receiving benefits in accordance with department of finance memorandum 2 05-3, or any successor memorandum thereto, relating to active duty mili- 3 tary personnel, or where the owner of any two or three family residen- 4 tial real property in class one has been allowed a credit pursuant to 5 subsection (e) of section six hundred six of the tax law for the calen- 6 dar year in which the date of the first publication, pursuant to subdi- 7 vision a of section 11-320 of this chapter, of the notice of sale, 8 occurs or for the calendar year immediately preceding such date. After 9 such sale, any such subsequent tax lien, or any component of the amount 10 thereof, may be transferred in the manner provided by this chapter. For 11 purposes of this subdivision, the term "subsequent tax lien" shall mean 12 the water rents, sewer rents or sewer surcharges component of any tax 13 lien on property that becomes such on or after the date of sale of any 14 water rents, sewer rents or sewer surcharges component of any tax lien 15 on such property that has been sold pursuant to this chapter, provided 16 that the prior tax lien remains unpaid as of the date of the first 17 publication, pursuant to subdivision a of section 11-320 of this chap- 18 ter, of the notice of sale of the subsequent tax lien. Nothing in this 19 subdivision shall be deemed to limit the rights conferred by section 20 11-332 of this chapter on the holder of a tax lien certificate with 21 respect to a subsequent tax lien. 22 a-4. In addition to any sale authorized pursuant to subdivision a, 23 a-1, a-2 or a-3 of this section and notwithstanding any provision of 24 this chapter to the contrary, beginning on March first, two thousand 25 eleven, the emergency repair charges component or alternative enforce- 26 ment expenses and fees component, where such emergency repair charges 27 accrued on or after January first, two thousand six and are made a lien 28 pursuant to section 27-2144 of this code, or where such alternative 29 enforcement expenses and fees are made a lien pursuant to section 30 27-2153 of this code, of any tax lien on any class of real property, as 31 such real property is defined in subdivision one of section eighteen 32 hundred two of the real property tax law, may be sold by the city pursu- 33 ant to this chapter, where such emergency repair charges component or 34 alternative enforcement expenses and fees component of such tax lien, as 35 of the date of the first publication, pursuant to subdivision a of 36 section 11-320 of this chapter, of the notice of sale: (i) shall have 37 remained unpaid in whole or in part for one year, and (ii) equals or 38 exceeds the sum of one thousand dollars or, beginning on January first, 39 two thousand twelve, in the case of any class [two] five residential 40 property owned by a company organized pursuant to article XI of the 41 state private housing finance law [that is not a residential condominium42or a residential cooperative], as such class of property is defined in 43 subdivision one of section eighteen hundred two of the real property tax 44 law, for two years, and equals or exceeds the sum of five thousand 45 dollars; provided, however, that such emergency repair charges component 46 or alternative enforcement expenses and fees component of such tax lien 47 may only be sold pursuant to this subdivision on any one, two or three 48 family residential real property in class one, where such one, two or 49 three family residential property in class one is not the primary resi- 50 dence of the owner. After such sale, any such emergency repair charges 51 component or alternative enforcement expenses and fees component of such 52 tax lien may be transferred in the manner provided by this chapter. 53 a-5. In addition to any sale authorized pursuant to subdivision a, 54 a-1, a-2 or a-3 of this section and notwithstanding any provision of 55 this chapter to the contrary, beginning on March first, two thousand 56 eleven, a subsequent tax lien on any class of real property, or begin-S. 3888 12 1 ning on January first, two thousand twelve in the case of any class 2 [two] five residential property owned by a company organized pursuant to 3 article XI of the state private housing finance law [that is not a resi-4dential condominium or a residential cooperative], a subsequent tax lien 5 on such property, may be sold by the city pursuant to this chapter, 6 regardless of the length of time such subsequent tax lien, or any compo- 7 nent of the amount thereof, shall have remained unpaid, and regardless 8 of the amount of such subsequent tax lien. After such sale, any such 9 subsequent tax lien, or any component of the amount thereof, may be 10 transferred in the manner provided by this chapter. For purposes of this 11 subdivision, the term "subsequent tax lien" shall mean the emergency 12 repair charges component or alternative enforcement expenses and fees 13 component, where such emergency repair charges accrued on or after Janu- 14 ary first, two thousand six and are made a lien pursuant to section 15 27-2144 of this code, or where such alternative enforcement expenses and 16 fees are made a lien pursuant to section 27-2153 of this code, of any 17 tax lien on property that becomes such on or after the date of sale of 18 any emergency repair charges component or alternative enforcement 19 expenses and fees component, of any tax lien on such property that has 20 been sold pursuant to this chapter, provided that the prior tax lien 21 remains unpaid as of the date of the first publication, pursuant to 22 subdivision a of section 11-320 of this chapter, of the notice of sale 23 of the subsequent tax lien. Nothing in this subdivision shall be deemed 24 to limit the rights conferred by section 11-332 of this chapter on the 25 holder of a tax lien certificate with respect to a subsequent tax lien. 26 § 13. Subparagraph (i) of paragraph 2 of subdivision b and subpara- 27 graph (ii) of paragraph 1 of subdivision h of section 11-320 of the 28 administrative code of the city of New York, subparagraph (i) of para- 29 graph 2 of subdivision b as amended by local law number 147 of the city 30 of New York for the year 2013 and subparagraph (ii) of paragraph 1 of 31 subdivision h as added by local law number 15 of the city of New York 32 for the year 2011, are amended to read as follows: 33 (i) Such notices shall also include, with respect to any property 34 owner in class one [or], class two or class five, as such classes of 35 property are defined in subdivision one of section eighteen hundred two 36 of the real property tax law, an exemption eligibility checklist. The 37 exemption eligibility checklist shall also be posted on the website of 38 the department no later than the first business day after March 39 fifteenth of every year prior to the date of sale, and shall continue to 40 be posted on such website until ten days prior to the date of sale. 41 Within ten business days of receipt of a completed exemption eligibility 42 checklist from such property owner, provided that such receipt occurs 43 prior to the date of sale of any tax lien or tax liens on his or her 44 property, the department of finance shall review such checklist to 45 determine, based on the information provided by the property owner, 46 whether such property owner could be eligible for any exemption, credit 47 or other benefit that would entitle them to be excluded from a tax lien 48 sale and, if the department determines that such property owner could be 49 eligible for any such exemption, credit or other benefit, shall mail 50 such property owner an application for the appropriate exemption, credit 51 or other benefit. If, within twenty business days of the date the 52 department mailed such application, the department has not received a 53 completed application from such property owner, the department shall 54 mail such property owner a second application, and shall telephone the 55 property owner, if the property owner has included his or her telephone 56 number on the exemption eligibility checklist.S. 3888 13 1 (ii) all class [two] five residential property owned by a company 2 organized pursuant to article XI of the state private housing finance 3 law [that is not a residential condominium or a residential cooperative] 4 on which any tax lien has been sold pursuant to subdivision a, a-2 or 5 a-4 of section 11-319 of this title. 6 § 14. Subdivision (a) of section 11-354 of the administrative code of 7 the city of New York, as amended by local law number 37 of the city of 8 New York for the year 1996, is amended to read as follows: 9 (a) Notwithstanding any other provision of law and notwithstanding any 10 omission to hold a tax lien sale, whenever any tax, assessment, sewer 11 rent, sewer surcharge, water rent, any charge that is made a lien 12 subject to the provisions of this chapter or chapter four of this title, 13 or interest and penalties thereon, has been due and unpaid for a period 14 of at least one year from the date on which the tax, assessment or other 15 legal charge represented thereby became a lien, or in the case of any 16 class one property or any class two property [that is a residential17condominium or residential cooperative], as such classes of property are 18 defined in subdivision one of section eighteen hundred two of the real 19 property tax law, or in the case of a class five property that is a 20 multiple dwelling owned by a company organized pursuant to article XI of 21 the private housing finance law with the consent and approval of the 22 department of housing preservation and development, for a period of at 23 least three years from the date on which the tax, assessment or other 24 legal charge became a lien, the city, as owner of a tax lien, may main- 25 tain an action in the supreme court to foreclose such lien. Such action 26 shall be governed by the procedures set forth in section 11-335 of this 27 chapter; provided, however, that such parcel shall only be sold to the 28 highest responsible bidder. Such purchaser shall be deemed qualified as 29 a responsible bidder pursuant to such criteria as are established in 30 rules promulgated by the commissioner of finance after consultation with 31 the commissioner of housing preservation and development. 32 § 15. Subdivision 3 and the opening paragraph of subdivision 4 of 33 section 11-401 of the administrative code of the city of New York, 34 subdivision 3 as added by local law number 37 of the city of New York 35 for the year 1996 and the opening paragraph of subdivision 4 as amended 36 by local law number 152 of the city of New York for the year 2017, are 37 amended to read as follows: 38 3. "Class." Any class of real property defined in subdivision one of 39 section eighteen hundred two of the real property tax law, and any 40 subclassification of class two or class five real property where such 41 subclassification is established by rule of the commissioner of finance 42 promulgated pursuant to this subdivision. 43 Any parcel of class one [or], class two or class five real property 44 that is subject to a tax lien or liens that result from an environmental 45 control board judgment against the owner of such parcel for a building 46 code violation with a lien or liens to value ratio, as determined by the 47 commissioner of finance, equal to or greater than 25 percent or any 48 parcel of class one or class two real property that is subject to a tax 49 lien or liens with a lien or liens to value ratio, as determined by the 50 commissioner of finance, equal to or greater than fifteen percent and 51 that meets one of the following two criteria: 52 § 16. Subdivisions a and b of section 11-401.1 of the administrative 53 code of the city of New York, as added by local law number 37 of the 54 city of New York for the year 1996, are amended to read as follows: 55 a. The commissioner of finance shall, not less than sixty days preced- 56 ing the date of the sale of a tax lien or tax liens, submit to theS. 3888 14 1 commissioner of housing preservation and development a description by 2 block and lot, or by such other identification as the commissioner of 3 finance may deem appropriate, of any parcel of class one or class two 4 real property on which there is a tax lien that may be foreclosed by the 5 city. The commissioner of housing preservation and development shall 6 determine, and direct the commissioner of finance, not less than ten 7 days preceding the date of the sale of a tax lien or tax liens, whether 8 any such parcel is a distressed property as defined in subdivision four 9 of section 11-401 of this chapter. Any tax lien on a parcel so deter- 10 mined to be a distressed property shall not be included in such sale. In 11 connection with a subsequent sale of a tax lien or tax liens, the 12 commissioner of finance may, not less than sixty days preceding the date 13 of the sale, resubmit to the commissioner of housing preservation and 14 development a description by block and lot, or by such other identifica- 15 tion as the commissioner of finance may deem appropriate, of any parcel 16 of class one [or], class two or class five real property that was previ- 17 ously determined to be a distressed property pursuant to this paragraph 18 and on which there is a tax lien that may be included in such sale. The 19 commissioner of housing preservation and development shall determine, 20 and direct the commissioner of finance, not less than ten days preceding 21 the date of the sale, whether such parcel remains a distressed property. 22 If the commissioner of housing preservation and development determines 23 that the parcel is not a distressed property, then the tax lien on the 24 parcel may be included in the sale. 25 b. The commissioner of housing preservation and development may peri- 26 odically review whether a parcel of class one [or], class two or class 27 five real property that is subject to subdivision c of this section or 28 subdivision j of section 11-412.1 of this chapter remains a distressed 29 property. If the commissioner determines that the parcel is not a 30 distressed property as defined in subdivision four of section 11-401 of 31 this chapter, then the parcel shall not be subject to such subdivisions. 32 § 17. Subdivision b of section 11-404 of the administrative code of 33 the city of New York, as amended by local law number 37 of the city of 34 New York for the year 1996, is amended to read as follows: 35 b. A tax lien on any class one property or any class two property 36 [that is a residential condominium or residential cooperative], as such 37 classes of property are defined in subdivision one of section eighteen 38 hundred two of the real property tax law, and on any class five property 39 that is a multiple dwelling owned by a company organized pursuant to 40 article XI of the private housing finance law with the consent and 41 approval of the department of housing preservation and development, 42 shall not be foreclosed in the manner provided in this chapter until 43 such tax lien has been due and unpaid for a period of at least three 44 years from the date on which the tax, assessment or other legal charge 45 represented thereby became a lien. 46 § 18. Paragraph 5 of subdivision c of section 11-405 of the adminis- 47 trative code of the city of New York, as added by local law number 37 of 48 the city of New York for the year 1996, is amended to read as follows: 49 (5) Notwithstanding paragraph one, two or three of this subdivision, 50 with respect to installment agreements duly made, executed and filed on 51 or after the date on which this paragraph takes effect, the commissioner 52 of finance may also exclude or thereafter remove from such list any 53 parcel of class one [or], class two or class five real property, other 54 than a parcel described in paragraph four of this subdivision, as to 55 which an agreement has been duly made, executed and filed with such 56 commissioner for the payment of the delinquent taxes, assessments orS. 3888 15 1 other legal charges, and the interest and penalties thereon, in install- 2 ments. The first installment thereof shall be paid upon the filing of 3 the installment agreement with the commissioner and shall be in an 4 amount equal to not less than fifteen percent of the total amount of 5 such delinquent taxes, assessments or other legal charges and the inter- 6 est and penalties thereon. The remaining installments, which shall be 7 twice the number of unpaid quarters of real estate taxes or the equiv- 8 alent thereof, but which shall in no event exceed thirty-two in number, 9 shall be payable quarterly on the first days of July, October, January 10 and April. For the purposes of calculating the number of such remaining 11 installments, unpaid real estate taxes that are due and payable on other 12 than a quarterly basis shall be deemed to be payable on a quarterly 13 basis. 14 § 19. Subparagraph (iii) of paragraph 3 of subdivision i of section 15 11-409 of the administrative code of the city of New York, as added by 16 local law number 37 of the city of New York for the year 1996, is 17 amended to read as follows: 18 (iii) With respect to any parcel of class one [or], class two or class 19 five real property, other than a parcel described in subparagraph (i) or 20 (ii) of this paragraph, such agreement shall provide for the payment in 21 installments of the delinquent taxes, assessments and other legal charg- 22 es, and the interest and penalties thereon, due and owing as of the date 23 on which such agreement is requested. The first installment thereof 24 shall be paid upon the filing of the installment agreement with the 25 commissioner of finance and shall be in an amount at least equal to, at 26 the applicant's election, either thirty-five percent or fifty percent of 27 the total amount of such delinquent taxes, assessments or other legal 28 charges and the interest and penalties thereon. The remaining install- 29 ments, which shall be twice the number of unpaid quarters of real estate 30 taxes or the equivalent thereof, but which shall in no event exceed 31 twenty in number, shall be payable quarterly on the first days of July, 32 October, January and April, together with interest at the rate or rates 33 determined as provided in subparagraph (iv) of this paragraph. For the 34 purposes of calculating the number of such remaining installments, 35 unpaid real estate taxes that are due and payable on other than a quar- 36 terly basis shall be deemed to be payable on a quarterly basis. 37 § 20. The section heading of section 11-412.1 of the administrative 38 code of the city of New York, as added by local law number 37 of the 39 city of New York for the year 1996, is amended to read as follows: 40 Special procedures relating to final judgment and release of class one 41 [and], class two or class five real property. 42 § 21. Paragraph 1 of subdivision b, subdivisions c and d, paragraphs 1 43 and 4 of subdivision e, and subdivisions f, g, h, i and j of section 44 11-412.1 of the administrative code of the city of New York, as added by 45 local law number 37 of the city of New York for the year 1996, are 46 amended to read as follows: 47 (1) The court shall make a final judgment authorizing the award of 48 possession of any parcel of class one [or], class two or class five real 49 property described in the list of delinquent taxes not redeemed or with- 50 drawn as provided in this chapter and as to which no answer is inter- 51 posed as provided herein, and authorizing the commissioner of finance to 52 prepare, execute and cause to be recorded a deed conveying either to the 53 city or to a third party deemed qualified and designated by the commis- 54 sioner of housing preservation and development full and complete title 55 to such lands. Any such conveyance to a third party shall be for an 56 existing use.S. 3888 16 1 c. Following the expiration of the four-month period prescribed in 2 subdivision d of this section, but not more than eight months after the 3 date on which, pursuant to subdivision b of this section, the final 4 judgment authorizing the award of possession of a parcel of class one 5 [or], class two or class five real property was entered, the commission- 6 er of finance may execute a deed, pursuant to subdivision b of this 7 section, with respect to such parcel. The owner of said parcel shall 8 continue to have all of the rights, liabilities, responsibilities, 9 duties and obligations of an owner of such parcel, including, but not 10 limited to, maintaining such parcel in compliance with the housing main- 11 tenance, building and fire codes, and all other applicable laws, unless 12 and until the commissioner of finance has prepared and executed a deed 13 conveying to the city or to a third party full and complete title to 14 such parcel. Upon the execution of such deed, the city or the third 15 party shall be seized of an estate in fee simple absolute in such land 16 and all persons, including the state of New York, infants, incompetents, 17 absentees and non-residents who may have had any right, title, interest, 18 claim, lien or equity of redemption in or upon such lands shall be 19 barred and forever foreclosed of all such right, title, interest, claim, 20 lien or equity of redemption, except as otherwise provided in subdivi- 21 sions e and f of this section. The appointment and tenure of receivers, 22 trustees or any other persons, including administrators under article 23 seven-A of the real property actions and proceedings law, appointed by 24 an order of a court to manage real property, shall terminate when title 25 to such property vests in the city or a third party pursuant to the 26 provisions of this chapter. After such termination, said receivers, 27 trustees or administrators shall be accountable to the courts that 28 appointed them for the faithful performance of their fiduciary obli- 29 gations during the term of their appointment and to the city or such 30 third party for any rents and income received by them for any period 31 subsequent to the date of the vesting of title in the city or such third 32 party. 33 If the city serves a tenant in possession of a dwelling unit with 34 notice of termination of tenancy on grounds other than nonpayment of 35 rent, the acceptance of rent for the first forty-five days after termi- 36 nation of tenancy by anyone other than an employee of the department 37 designated by the department to receive such rent shall not be deemed or 38 construed as a waiver of the city's right to initiate and prosecute a 39 proceeding to terminate the tenancy for good cause. 40 d. Within four months after the date on which, pursuant to subdivision 41 b of this section, the final judgment authorizing the award of 42 possession of a parcel of class one [or], class two or class five real 43 property was entered, any person claiming to have an interest in such 44 parcel shall have the right to make a payment to the commissioner of 45 finance consisting of all taxes, assessments and other legal charges 46 owing on said parcel, the lawful interest thereon to the date of payment 47 and a penalty of five percent of said payment of taxes, assessments and 48 other legal charges and interest, which penalty may not exceed one thou- 49 sand dollars. Such payment shall be made in cash or by certified or bank 50 check. Within such four-month period, such interested person may also 51 request an installment agreement from the commissioner of finance. Such 52 agreement shall require, in addition to full payment of the penalty 53 specified in this subdivision at the time such agreement is entered 54 into, the payment at such time of a first installment equal to fifty 55 percent of all taxes, assessments and other legal charges, and the 56 lawful interest thereon, then owing on such parcel, and the payment ofS. 3888 17 1 the balance of such taxes, assessments and other legal charges and 2 interest in four equal quarterly installments together with all current 3 taxes, assessments and other legal charges that accrue during such peri- 4 od. Upon receipt of payment in full of the amount specified in the first 5 sentence of this subdivision, the commissioner of finance shall direct 6 the corporation counsel to prepare and cause to be entered an order 7 discontinuing the in rem tax foreclosure action as to said property, 8 cancelling the notice of pendency of such action as to said property and 9 vacating and setting aside the final judgment. Upon the execution of an 10 installment agreement and payment of the amounts due at the time such 11 agreement is executed as provided in this subdivision, the commissioner 12 of finance shall direct the corporation counsel to prepare and cause to 13 be entered an order vacating and setting aside the final judgment. The 14 entry of either such order shall restore all parties, including owners, 15 mortgagees and any and all lienors, receivers and administrators and 16 encumbrancers, to the status they held immediately before such final 17 judgment was entered. Where the commissioner of finance approves an 18 application requesting an installment agreement pursuant to this subdi- 19 vision, the order vacating and setting aside the final judgment shall 20 provide that in the event of any default as to the payment of either 21 quarterly installments or current taxes, assessments or other legal 22 charges during the term of such agreement, all payments under said 23 agreement shall be forfeited and the corporation counsel, immediately 24 upon notification by the commissioner of finance of such default, shall 25 cause to be entered as to such property a supplemental judgment of fore- 26 closure in the in rem action which authorizes the commissioner of 27 finance to prepare, execute and cause to be recorded a deed conveying 28 either to the city or to a third party full and complete title to such 29 lands. Upon the entry of such supplemental judgment, the provisions of 30 subdivisions c through i of this section shall apply in the same manner 31 as such subdivisions would have applied had no payment been made nor 32 installment agreement executed during the four-month period specified in 33 this subdivision. 34 1. If the commissioner of finance has prepared, executed and caused to 35 be recorded a deed conveying to the city full and complete title to a 36 parcel of class one [or], class two or class five real property acquired 37 by in rem tax foreclosure, the city's interest in such parcel may be 38 released pursuant to this subdivision on the application of any party 39 who has an interest in said parcel as either owner, mortgagee, lienor, 40 or encumbrancer at the time of the city's acquisition thereof where such 41 application is made at any time up to sixteen months from the date on 42 which the deed by which the city acquired title to said parcel was 43 recorded. 44 4. The provisions contained in subdivision g of section 11-424 of this 45 chapter shall govern such an application, except as follows: 46 (a) where such provisions are inconsistent with the provisions 47 contained in this subdivision, the provisions contained in this subdivi- 48 sion shall govern such application; and 49 (b) where the in rem foreclosure release board denies a written 50 request for an installment agreement that was filed in connection with 51 an application for release of the city's interest in a parcel of class 52 one [or], class two or class five real property and such application was 53 filed within thirty days of the date of the city's acquisition of the 54 property sought to be released, the board may, in its discretion, 55 authorize a release of the city's interest, provided that the applicant 56 thereafter pays all the amounts required to be paid pursuant to subdivi-S. 3888 18 1 sion d of section 11-424 of this chapter within thirty days of the date 2 on which a letter requesting such payment is mailed or delivered to such 3 applicant. 4 f. If the commissioner of finance has prepared, executed and caused to 5 be recorded a deed conveying to the city full and complete title to a 6 parcel of class one [or], class two or class five real property acquired 7 by in rem tax foreclosure and such parcel is entitled to an exemption 8 under any of the provisions of article four of the real property tax law 9 during all or part of the period covered by the tax items appearing on a 10 list of delinquent taxes, the owner of such parcel may apply for a 11 release of the city's interest in such exempt property under the 12 provisions of subdivision e of this section during the period of time 13 set forth in paragraph one of such subdivision and for an additional 14 period up to ten years from the date on which the deed by which the city 15 acquired title to said property was recorded. The application of such 16 owner shall be accompanied by the nonrefundable fee required by para- 17 graph four of subdivision b of section 11-424 of this chapter and shall 18 contain, in addition to the statements, searches and proofs required by 19 subdivision e of this section, a statement that an exemption under the 20 real property tax law is being claimed. Such application shall also 21 state either that it is accompanied by the written certificate of the 22 comptroller setting forth the precise period during which said property, 23 while owned by such application, and during the period after the city's 24 acquisition up to the date of the certificate if said property was still 25 being used for an exempt purpose after said acquisition, was entitled to 26 an exemption and the exact nature and extent of such exemption or that 27 an application for such written certificate has been filed with the 28 comptroller. On issuing such written certificate, the comptroller shall 29 cancel those tax items which have accrued during the period covered by 30 the certificate to the extent the applicant is entitled to an exemption 31 as set forth in the certificate. A release of the city's interest may be 32 authorized only at the discretion of the in rem foreclosure release 33 board and, except as otherwise provided in paragraph four of subdivision 34 e of this section, subject to all the restrictions set forth in subdivi- 35 sion g of section 11-424 of this chapter. A release to an exempt appli- 36 cant shall be effected only after said applicant has paid all of the 37 amounts required to be paid by subdivision d of section 11-424 of this 38 chapter, except for those tax items which have been canceled, in whole 39 or in part, pursuant to the comptroller's certificate, within thirty 40 days of the date on which the letter requesting payment is mailed or 41 delivered to the applicant. 42 g. If the commissioner of finance has prepared, executed and caused to 43 be recorded a deed conveying to the city or to a third party full and 44 complete title to a parcel of class one [or], class two or class five 45 real property acquired by in rem tax foreclosure, the provisions 46 contained in subdivisions f and i of section 11-424 of this chapter for 47 the release of property so acquired shall not be available. If the 48 commissioner of finance has prepared, executed and caused to be recorded 49 a deed conveying to a third party full and complete title to a parcel of 50 class one or class two real property acquired by in rem tax foreclosure, 51 the provisions contained in subdivisions e and f of this section for the 52 release of property so acquired shall not be available. 53 h. Every deed given pursuant to the provisions of this section shall 54 be presumptive evidence that the action and all proceedings therein and 55 all proceedings prior thereto from and including the assessment of the 56 lands affected and all notices required by law were regular and inS. 3888 19 1 accordance with all provisions of law relating thereto. After four 2 months from the date of entry of the final judgment authorizing the 3 award of possession of any parcel of class one [or], class two or class 4 five real property pursuant to the provisions of this section, the 5 presumption shall be conclusive. No action to set aside such deed may be 6 maintained unless the action is commenced and a notice of pendency of 7 the action is filed in the office of the property county clerk prior to 8 the time that the presumption becomes conclusive as aforesaid. Should 9 any lawsuit or proceeding be commenced to set aside a deed conveying to 10 a third party a parcel of class one [or], class two or class five real 11 property pursuant to the provisions of this section, such third party 12 shall send to the corporation counsel within ten days of their receipt a 13 copy of any papers served on such third party in such lawsuit or 14 proceeding. 15 i. If the commissioner of finance does not execute a deed conveying to 16 the city or to a third party a parcel of class one [or], class two or 17 class five real property within eight months after the entry of final 18 judgment authorizing the award of possession of such parcel pursuant to 19 subdivision b of this section, the commissioner of finance shall direct 20 the corporation counsel to prepare and cause to be entered an order 21 discontinuing the in rem foreclosure action as to said property, cancel- 22 ing the notice of pendency of such action as to said property and vacat- 23 ing and setting aside said final judgment. The entry of such order shall 24 restore all parties, including owners, mortgagees and any and all 25 lienors, receivers and administrators and encumbrancers, to the status 26 they held immediately before such final judgment was entered. 27 j. If the commissioner of finance directs the corporation counsel, 28 pursuant to subdivision i of this section, to prepare and cause to be 29 entered an order discontinuing the in rem foreclosure action with 30 respect to a parcel of class one [or], class two or class five real 31 property determined to be distressed pursuant to section 11-401.1 of 32 this chapter, the commissioner of housing preservation and development 33 shall evaluate the parcel determined to be distressed and take such 34 action as he or she deems appropriate under the programs, existing at 35 the time of such evaluation, that are designed to encourage the rehabil- 36 itation and preservation of existing housing, and shall monitor or cause 37 to be monitored the status of the property. The commissioner of housing 38 preservation and development shall maintain a register of properties 39 determined to be distressed. 40 § 22. Section 11-412.2 of the administrative code of the city of New 41 York, as added by local law number 37 of the city of New York for the 42 year 1996, is amended to read as follows: 43 § 11-412.2 Council review of conveyance to a third party. The commis- 44 sioner of finance shall, prior to the execution of a deed conveying full 45 and complete title of any parcel of class one [or], class two or class 46 five real property to a third party pursuant to subdivision c of section 47 11-412.1 of this chapter, notify the council of the proposed conveyance. 48 Within forty-five days of such notification, the council may act by 49 local law disapproving the proposed conveyance. In the event the council 50 does not act by local law within such forty-five day period, the council 51 shall be deemed to have approved the proposed conveyance. During such 52 forty-five day period or, if the city council acts by local law pursuant 53 to this section, during the period of time from the notification of the 54 council to the presentation to the mayor of such local law and during 55 any additional period of time prescribed in section 37 of the charter,S. 3888 20 1 the eight-month period provided in subdivisions c and i of section 2 11-412.1 of this chapter shall be tolled. 3 § 23. Paragraph 1 of subdivision a of section 163 of the New York city 4 charter, as amended by local law number 77 of the city of New York for 5 the year 1984, is amended to read as follows: 6 1. "Class designation" shall mean the determination, pursuant to 7 section eighteen hundred two of the real property tax law, of whether 8 real property is included in class one, two, three [or], four or five. 9 § 24. Paragraph 1 of subdivision a of section 164-b of the New York 10 city charter, as added by local law number 11 of the city of New York 11 for the year 1984, is amended to read as follows: 12 1. "Class designation" shall mean the determination, pursuant to arti- 13 cle eighteen of the real property tax law, of whether real property is 14 included in class one, two, three [or], four or five. 15 § 25. This act shall take effect on the first of January next succeed- 16 ing the date on which it shall have become a law and shall apply to 17 assessment rolls prepared pursuant to a taxable status date occurring on 18 or after such date; provided, however, that if local law number 152 of 19 the city of New York for the year 2017 shall not have taken effect on or 20 before such date then section fifteen of this act shall take effect on 21 the same date and in the same manner as such local law of the city of 22 New York for the year 2017, takes effect; provided, however, that effec- 23 tive immediately, the addition, amendment and/or repeal of any rule or 24 regulation necessary for the implementation of this act on its effective 25 date are authorized and directed to be made and completed on or before 26 such effective date.
