Relates to environmental restoration investigation projects upon parcels in tax lien foreclosure proceedings.
TITLE OF BILL: An act to amend the environmental conservation law, in relation to environmental restoration investigation projects upon parcels in tax lien foreclosure proceedings
PURPOSE OR GENERAL IDEA OF BILL: To grant the City of New York authority to perform environmental restoration investigations for certain properties in foreclosure.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 56-0508 of the environmental conservation law to allow the city of New York to obtain temporary incidents of ownership to a parcel in tax lien foreclosure proceedings for the sole purpose of entering the parcel to conduct an environmental restoration investigation of such property.
Section 2 amends subdivision 5 of section 56-0508 of the environmental conservation law to provide that the cost of the investigation would be added to the taxes owed to the City.
Section 3 provides the effective date.
JUSTIFICATION: Uncertainty about contamination and contamination levels is the main challenge to reinvestment in contaminated or potentially contaminated tax delinquent properties. To address this problem, section 56-0508 of the Environmental Conservation Law authorizes a court in a proceeding to foreclose a tax lien to grant temporary incidents of ownership to a taxing district for the sole purpose of entering the property to conduct an environmental restoration investigation. When the investigation is complete, the taxing district files the final report of the investigation with the court within thirty days and adds the cost of the investigation to the tax lien, thereby allowing a local government to recoup its investigation costs. For a technical reason, New York City cannot use section 56-0508 to conduct site investigations of tax lien properties. As currently written, section 56-0508 applies only to taxing districts that foreclose on tax liens. Rather than foreclose directly on tax liens, the City sells tax liens to a trust that forecloses on the liens.
The amendment proposed in this bill would put the City on the same footing as all other local governments across the State of New York. The information from a site investigation would reveal the extent of property contamination and approximate remediation costs, substantially reducing the uncertainty over the cost to redevelop a tax lien property. With this information, the City and the trust that holds the tax lien will have confidence that the property can be auctioned to a new developer who will be able to remediate a property and proceed with a quality redevelopment project.
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None to New York State.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5054 2013-2014 Regular Sessions IN SENATE May 7, 2013 ___________Introduced by Sen. GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Environmental Conservation AN ACT to amend the environmental conservation law, in relation to envi- ronmental restoration investigation projects upon parcels in tax lien foreclosure proceedings THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 56-0508 of the environmental conservation law is amended by adding a new subdivision 1-a to read as follows: 1-A. IN A PROCEEDING TO FORECLOSE A TAX LIEN BY AN ENTITY THAT ACQUIRED THE TAX LIEN OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE, SUCH CITY MAY UPON TWENTY DAYS NOTICE TO ALL PARTIES HAVING ANY RIGHT, TITLE, OR INTEREST IN, OR LIEN UPON SUCH PARCEL, MOVE, AT A SPECIAL TERM IN THE COURT IN WHICH THE FORECLOSURE PROCEEDING WAS BROUGHT, FOR AN ORDER GRANTING SUCH CITY THE TEMPORARY INCIDENTS OF OWNERSHIP OF SUCH PARCEL FOR THE SOLE PURPOSE OF ENTERING THE PARCEL AND CONDUCTING AN ENVIRONMENTAL RESTORATION INVESTIGATION PROJECT UPON SUCH PARCEL. FOR PURPOSES OF THIS SECTION, THE TERM "TAXING DISTRICT" SHALL INCLUDE A CITY HAVING A POPULATION OF ONE MILLION OR MORE. S 2. Subdivision 5 of section 56-0508 of the environmental conserva- tion law, as added by section 7 of part D of chapter 1 of the laws of 2003, is amended to read as follows: 5. all costs associated with any environmental restoration investi- gation project conducted pursuant to the authority of this section shall be added to the taxes owed to, and the tax lien of, the taxing district that undertook the environmental restoration investigation project pursuant to SUBDIVISION ONE OF this section OR SHALL BE ADDED TO THE TAXES OWED TO THE CITY THAT UNDERTOOK THE ENVIRONMENTAL RESTORATION INVESTIGATION PROJECT PURSUANT TO SUBDIVISION ONE-A OF THIS SECTION. S 3. This act shall take effect immediately and shall apply to any proceeding to foreclose a tax lien pending on or commenced on or after such date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10728-01-3