Bill S2370-2013

Authorizes municipalities to impose a tax lien upon foreclosed real property for unpaid building code and zoning violation fines and expenses

Authorizes municipalities to impose a tax lien upon foreclosed real property for unpaid building code and zoning violation fines and expenses.

Details

Actions

  • Jan 8, 2014: REFERRED TO LOCAL GOVERNMENT
  • Jan 16, 2013: REFERRED TO LOCAL GOVERNMENT

Memo

BILL NUMBER:S2370

TITLE OF BILL: An act to amend the general municipal law, in relation to authorizing a municipality to impose tax liens for unpaid building code violations and emergency repairs at foreclosed real property

PURPOSE OR GENERAL IDEA OF BILL: To ensure that those financial institutions or their successor property management organizations that manage foreclosed upon residential or commercial properties adequately maintain such properties until they are sold to a new purchaser. Under current law, it is difficult and time consuming for a municipality to collect municipal house code violation fines and municipal costs incurred to correct such violations. This bill should assist a municipality to collect such fines and encourage managers of foreclosed upon properties to adequately maintain such properties because they will have notice that such fines will ultimately be collected.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Adds a new section 85-b to the General Municipal Law to provide for a more formalized process by which a municipality can file a lien against properties in which certain unpaid municipal building code or zoning code violations are due. Such lien may only be filed against real properties that are subject to a foreclosure action pursuant to article 13 of the Real Property Actions and proceedings Law. In addition to filing a lien for collection of unpaid municipal code violations, such liens may include municipal expenses to correct any such violation. Before the lien provisions contained in this new section can be exercised, the municipality must adopt a local law or ordinance to establish a lien filing procedure. The municipality must file such lien in the county clerk's office, at which time, such lien shall constitute a real property tax lien.

JUSTIFICATION: The purpose of this bill is to enhance the ability of a municipality to collect certain housing code violation fines on properties that have been foreclosed upon or are subject to a foreclosure action. If enacted, the provisions of this bill should give adequate notice to banks that manage foreclosed properties, both residential and commercial, that such municipal fines will be collected. Hence, such financial institutions should be encouraged to adequately maintain foreclosed properties to avoid the assessment and collection of such fines.

PRIOR LEGISLATIVE HISTORY: 2012 - S. 4752 - Referred to Local Governments

FISCAL IMPLICATIONS: This bill will give municipalities additional powers to collect delinquent municipal housing code violation fines.

EFFECTIVE DATE: January 1st next succeeding the date upon which it becomes law.


Text

STATE OF NEW YORK ________________________________________________________________________ 2370 2013-2014 Regular Sessions IN SENATE January 16, 2013 ___________
Introduced by Sen. KLEIN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law, in relation to authorizing a municipality to impose tax liens for unpaid building code violations and emergency repairs at foreclosed real property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general municipal law is amended by adding a new section 85-b to read as follows: S 85-B. LIENS FOR CERTAIN FINES AND EXPENSES OWED TO A MUNICIPALITY. WITH REGARD TO ANY REAL PROPERTY SUBJECT TO A FORECLOSURE ACTION PURSU- ANT TO ARTICLE THIRTEEN OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW, THE GOVERNING BODY OF A MUNICIPALITY MAY ENACT A LOCAL LAW, CODE OR ORDINANCE PROVIDING THAT ANY UNPAID FINE FOR A BUILDING CODE OR ZONING VIOLATION UPON SUCH REAL PROPERTY AND ANY UNPAID EXPENSE INCURRED BY THE MUNICIPALITY TO CORRECT ANY SUCH VIOLATION SHALL BE LEVIED AGAINST THE REAL PROPERTY AND SHALL CONSTITUTE A LIEN THEREON, IF THE MUNICIPALITY FILES NOTICE THEREOF IN THE OFFICE OF THE COUNTY CLERK IN THE COUNTY IN WHICH THE REAL PROPERTY IS SITUATE. EVERY SUCH LIEN SHALL CONSTITUTE A REAL PROPERTY TAX LIEN. S 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law.

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