Provides that a land bank may tender a bid on sales of property made pursuant to public sale, county charter, city charter, administrative code or special law, when no municipality elects to do so.
Ayes (60): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Dilan, Espaillat, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Absent (1): Sampson
Excused (2): Diaz, Peralta
TITLE OF BILL: An act to amend the not-for-profit corporation law, in relation to the sale of property to land banks
PURPOSE: To provide adjustments to the land banks of municipalities in New York State
SUMMARY OF SPECIFIC PROVISIONS: Section 1 allows the board to expand the size of their board.
Section 2 allows a land bank to acquire property via the sale pursuant to a county chatter, city charter, administrative code, or special law.
JUSTIFICATION: The creation of land banks were provided for the following reasons: A crisis exists in many Upstate. New York cities and their metro areas caused by disinvestment in real property and resulting in a significant amount of vacant and abandoned property. For example, Buffalo at its height had 580,000 residents, but now has a population of only 250,000. The city of Buffalo has an estimated 20,000 vacant parcels, 5,000 vacant structures and an estimated 22,290 vacant residential units. Problems associated with abandoned property include crime, fire, disease, and diminished value of surrounding properties. Abandoned property creates a haven for illicit and dangerous activity. Local governments lose revenue because of the costs of demolition, safety hazards, and spreading deterioration of neighborhoods including resulting mortgage foreclosures.
Current law was created to solve the problems of vacant and abandoned property in a coordinated manner and to foster the development of such property and promote economic growth. Land banks with this legislation would be type-C not for profit corporations under this chapter and in accordance with the provisions of this article and pursuant to this article that may be created by any "foreclosing governmental unit" that would be authorized by a municipality through appropriate local approval to efficiently acquire, hold, manage and develop tax-foreclosed properties with the long-term interest of the community in mind. The creation of land banks as Type C not for profit corporations at the request of municipalities can be an effective and cost efficient approach to managing and revitalizing vacant and abandoned properties.
Land banks allow local governments to overcome legal restraints on the conversion of public land and public liens on private land into performing assets. Land banks can remove redevelopment barriers that hinder the creation of functioning private markets for conversion of abandoned land into better uses.
PRIOR LEGISLATIVE HISTORY: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5167 2013-2014 Regular Sessions IN SENATE May 13, 2013 ___________Introduced by Sen. GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the not-for-profit corporation law, in relation to the sale of property to land banks THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph 2 of paragraph (a) of section 1603 of the not-for-profit corporation law, as added by chapter 257 of the laws of 2011, is amended to read as follows: (2) the number of members of the board of directors, which shall consist of an odd number of members, and shall be not less than five members nor more than
[eleven]FIFTEEN members; S 2. Paragraph (i) of section 1616 of the not-for-profit corporation law, as added by chapter 257 of the laws of 2011, is amended to read as follows: (i) Notwithstanding any other provision of law to the contrary, in the event that no municipality elects to tender a bid at a judicially ordered sale pursuant to the provisions of section eleven hundred thir- ty-six of the real property tax law OR SALE PURSUANT TO A COUNTY CHAR- TER, CITY CHARTER, ADMINISTRATIVE CODE, OR SPECIAL LAW, the land bank may tender a bid at such sale in an amount equal to the total amount of all municipal claims and liens which were the basis for the judgment. In the event of such tender by the land bank the property shall be deemed sold to the land bank regardless of any bids by any other third parties. The bid of the land bank shall be paid as to its form, substance, and timing according to such agreement as is mutually acceptable to the plaintiff and the land bank. The obligation of the land bank to perform in accordance with such agreement shall be deemed to be in full satis- faction of the municipal claim which was the basis for the judgment. The land bank, as purchaser at such JUDICIALLY ORDERED sale OR SALE PURSUANTEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09821-01-3 S. 5167 2
TO A COUNTY CHARTER, CITY CHARTER, ADMINISTRATIVE CODE, OR SPECIAL LAW, shall take and forever thereafter have, an absolute title to the proper- ty sold, free and discharged of all tax and municipal claims, liens, mortgages, charges and estates of whatsoever kind. The deed to the land bank shall be executed, acknowledged and delivered within thirty days of the sale. S 3. This act shall take effect immediately.