Bill Text: NY S08203 | 2009-2010 | General Assembly | Introduced

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Bill Title: Authorizes municipalities to, on or before December 31, 2010, enter into contracts to sell delinquent real property tax liens to private parties.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-16 - REFERRED TO RULES [S08203 Detail]

Download: New_York-2009-S08203-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8203
                                   I N  S E N A T E
                                     June 16, 2010
                                      ___________
       Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
         printed to be committed to the Committee on Rules
       AN ACT to amend the real property tax law, in  relation  to  authorizing
         any  municipality  to enter into a contract to sell some or all of the
         delinquent tax liens held by such municipality to a private party; and
         providing for the repeal of such provisions upon the expiration there-
         of
         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 1191 to read as follows:
    3    S 1191. SALE OF TAX LIENS TO PRIVATE  PARTIES.    NOTWITHSTANDING  ANY
    4  PROVISION  OF  ANY  GENERAL,  SPECIAL  OR LOCAL LAW TO THE CONTRARY, ANY
    5  MUNICIPALITY MAY, ON OR BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND  TEN,
    6  ENTER  INTO  A  CONTRACT  TO SELL ANY OR ALL OF THE DELINQUENT TAX LIENS
    7  HELD BY IT TO A PRIVATE PARTY AND SUCH CONTRACT SHALL NOT EXTEND FOR ANY
    8  PERIOD BEYOND DECEMBER THIRTY-FIRST, TWO THOUSAND TWELVE, SUBJECT TO THE
    9  FOLLOWING CONDITIONS:
   10    1. PRIOR TO ANY SALE, THE LOCAL GOVERNING BODY  SHALL  HOLD  A  PUBLIC
   11  HEARING,  ON NOTICE OF AT LEAST THIRTY DAYS, ANNOUNCING THE INTENTION OF
   12  SAID LOCAL GOVERNING BODY TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS
   13  TO A THIRD PARTY. SUCH HEARING SHALL NOT BE HELD MORE THAN  NINETY  DAYS
   14  PRIOR TO SUCH SALE.
   15    2.  THE  CONSIDERATION  TO  BE  PAID MAY BE MORE OR LESS THAN THE FACE
   16  AMOUNT OF THE TAX LIENS SOLD;
   17    3. PROPERTY OWNERS SHALL BE GIVEN AT LEAST THIRTY DAYS ADVANCE  NOTICE
   18  OF  SUCH  SALE IN THE SAME FORM AND MANNER AS IS PROVIDED BY SUBDIVISION
   19  TWO OF SECTION ELEVEN HUNDRED NINETY OF THIS ARTICLE. FAILURE TO PROVIDE
   20  SUCH NOTICE OR THE FAILURE OF THE ADDRESSEE TO RECEIVE  THE  SAME  SHALL
   21  NOT  IN  ANY  WAY  AFFECT  THE VALIDITY OF ANY SALE OF A TAX LIEN OR TAX
   22  LIENS, OR THE VALIDITY OF THE TAXES OR INTEREST PRESCRIBED BY  LAW  WITH
   23  RESPECT THERETO;
   24    4. THE MUNICIPALITY SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT
   25  OF SALE;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02314-01-9
       S. 8203                             2
    1    5.  THE TAX LIEN PURCHASER MUST, THIRTY DAYS PRIOR TO THE COMMENCEMENT
    2  OF ANY FORECLOSURE ACTION, PROVIDE THE MUNICIPALITY WITH A LIST OF LIENS
    3  TO  BE  FORECLOSED.  THE  MUNICIPALITY  MAY,  AT  ITS  SOLE  OPTION  AND
    4  DISCRETION,  REPURCHASE A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE
    5  TAX LIEN PURCHASER. THE REPURCHASE PRICE SHALL BE THE AMOUNT OF THE LIEN
    6  OR  LIENS  PLUS  ANY  ACCRUED  INTEREST  AND  REASONABLE  AND  NECESSARY
    7  COLLECTION FEES AND COSTS INCURRED BY THE TAX LIEN  PURCHASER.  THE  TAX
    8  LIEN  PURCHASER  SHALL PROVIDE THE FORECLOSURE LIST TO THE MUNICIPALITY,
    9  ALONG WITH THE APPLICABLE REPURCHASE PRICE OF EACH  LIEN,  BY  CERTIFIED
   10  MAIL, AND THE MUNICIPALITY SHALL HAVE THIRTY DAYS FROM THE RECEIPT THER-
   11  EOF  TO  NOTIFY  THE TAX LIEN PURCHASER OF ITS OPTION TO PURCHASE ONE OR
   12  MORE OF THE LIENS. IF THE MUNICIPALITY OPTS TO  PURCHASE  THE  LIEN,  IT
   13  SHALL  PROVIDE  PAYMENT  WITHIN THIRTY DAYS OF RECEIPT OF THE REPURCHASE
   14  PRICE OF SAID LIEN OR LIENS. IF THE MUNICIPALITY SHALL FAIL  TO  OPT  TO
   15  REPURCHASE  THE  LIEN  OR  LIENS,  THE TAX LIEN PURCHASER SHALL HAVE THE
   16  RIGHT TO COMMENCE A FORECLOSURE ACTION IMMEDIATELY;
   17    6. THE SALE OF A TAX LIEN PURSUANT TO THIS ACT SHALL  NOT  OPERATE  TO
   18  SHORTEN  THE OTHERWISE APPLICABLE REDEMPTION PERIOD OR CHANGE THE OTHER-
   19  WISE APPLICABLE INTEREST RATE;
   20    7. UPON THE EXPIRATION OF THE REDEMPTION PERIOD PRESCRIBED BY LAW, THE
   21  PURCHASER OF A DELINQUENT TAX LIEN, OR ITS SUCCESSORS  OR  ASSIGNS,  MAY
   22  FORECLOSE  THE  LIEN AS IN AN ACTION TO FORECLOSE A MORTGAGE AS PROVIDED
   23  IN SECTION ELEVEN HUNDRED NINETY-FOUR OF THIS ARTICLE. THE PROCEDURE  IN
   24  SUCH ACTION SHALL BE THE PROCEDURE PRESCRIBED BY ARTICLE THIRTEEN OF THE
   25  REAL  PROPERTY  ACTIONS AND PROCEEDINGS LAW FOR THE FORECLOSURE OF MORT-
   26  GAGES.  AT ANY TIME FOLLOWING THE COMMENCEMENT OF AN ACTION TO FORECLOSE
   27  A LIEN, THE AMOUNT REQUIRED TO REDEEM THE LIEN, OR THE  AMOUNT  RECEIVED
   28  UPON  SALE  OF  A  PROPERTY,  SHALL  INCLUDE  REASONABLE  AND  NECESSARY
   29  COLLECTION COSTS, ATTORNEYS' FEES, LEGAL COSTS, ALLOWANCES AND DISBURSE-
   30  MENTS; AND
   31    8. THE PROVISIONS OF THIS TITLE SHALL APPLY SO FAR AS  IS  PRACTICABLE
   32  TO A CONTRACT FOR THE SALE OF TAX LIENS PURSUANT TO THIS ACT.
   33    9.  IN  EACH  YEAR  SUBSEQUENT  TO THE TAX LIEN SALE, AND NO MORE THAN
   34  SIXTY DAYS AFTER THE ANNUAL ANNIVERSARY DATE OF  SUCH  SALE,  THE  LOCAL
   35  GOVERNING  BODY SHALL PRODUCE A WRITTEN REPORT ON THE STATUS AND RESULTS
   36  OF SAID SALE AND SUCH REPORT SHALL INCLUDE BUT NEED NOT  BE  LIMITED  TO
   37  THE  TOTAL  DOLLAR AMOUNT RECEIVED BY THE MUNICIPALITY IN SAID SALE, THE
   38  NUMBER OF FORECLOSURES CONDUCTED BY THE THIRD PARTY, THE NUMBER, IF ANY,
   39  OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE  NUMBER  OF  PROPERTIES
   40  TAKEN  BACK BY THE MUNICIPALITY PURSUANT TO THE TERMS OF THE CONTRACT OF
   41  SALE, THE NUMBER, IF ANY, OF COMPLAINTS RECEIVED BY THE MUNICIPALITY  ON
   42  THE  CONDUCT  OF  THE  THIRD PARTY AND ANY OTHER INFORMATION THE MUNICI-
   43  PALITY DEEMS NECESSARY AND IMPORTANT ON THE STATUS OF  SAID  SALE.  SAID
   44  WRITTEN REPORT MUST BE FILED WITH THE GOVERNOR, COMPTROLLER OF THE STATE
   45  OF  NEW  YORK, TEMPORARY PRESIDENT OF THE SENATE, MINORITY LEADER OF THE
   46  SENATE, SPEAKER OF THE ASSEMBLY, AND THE MINORITY LEADER OF  THE  ASSEM-
   47  BLY.
   48    10.  ON OR BEFORE JULY FIRST, TWO THOUSAND TWELVE BUT NOT EARLIER THAN
   49  MAY FIRST, TWO THOUSAND TWELVE, THE COMPTROLLER OF THE STATE OF NEW YORK
   50  SHALL ISSUE A WRITTEN REPORT ON THE STATUS OF ALL PRIVATE TAX LIEN SALES
   51  THAT HAVE OCCURRED IN THE STATE WHETHER BY THE TERMS OF THIS SECTION,  A
   52  CHAPTER  OF THE LAWS OF THE STATE OF NEW YORK SPECIFIC TO A CITY, COUNTY
   53  OR VILLAGE, OR BY ANY OTHER SPECIAL, GENERAL OR LOCAL LAW IN THE  CALEN-
   54  DAR YEARS TWO THOUSAND NINE, TWO THOUSAND TEN AND TWO THOUSAND ELEVEN.
   55    S  2.  This act shall take effect immediately, and shall expire and be
   56  deemed repealed on and after December 31, 2012.