Bill S5489-2011

Relates to the enforcement of environmental control board judgments as tax liens

Relates to the enforcement of environmental control board judgments as tax liens.

Details

Actions

  • Jan 4, 2012: REFERRED TO CITIES
  • Jun 24, 2011: COMMITTED TO RULES
  • Jun 14, 2011: ADVANCED TO THIRD READING
  • Jun 13, 2011: 2ND REPORT CAL.
  • Jun 7, 2011: 1ST REPORT CAL.1132
  • May 25, 2011: REFERRED TO CITIES

Meetings

Votes

VOTE: COMMITTEE VOTE: - Cities - Jun 7, 2011
Ayes (6): Lanza, DeFrancisco, Grisanti, Robach, Avella, Oppenheimer

Memo

BILL NUMBER:S5489

TITLE OF BILL: An act to amend the administrative code of the city of New York, in relation to enforcement of environmental control board judgments as tax liens

SUMMARY OF PROVISIONS: This proposed legislation would provide the Commissioner of Buildings with authority to have environmental control board judgments of $25,000 or more enforced as tax liens. It provides for notice to be sent by the department of finance to owners and others with an interest in the property.

REASONS FOR SUPPORT: The primary mission of the New York City Department of Buildings' (DOB) is to ensure the safe and lawful use of over 975.000 buildings, by focusing on safety, service and integrity. Law-abiding property owners and tenants alike benefit from - and have every reason to expect - safety and an enhanced quality of life. But this mission is compromised when owners don't play by the rules.

The Department of Buildings (DOB) has the authority to assess fines against property owners that violate the City's rules, through judgments of the environmental control board (ECB). Some owners readily comply with the law, others come into compliance and pay the fines, and still others ignore the law entirely. Existing law does not, however, allow DOB to enforce unpaid fines issued by ECB as money judgments. Currently, fees imposed by ECB for violations written by DOB go uncollected and are lost because they are not attached to the title of the property via lien. As a result, owners may choose to abandon their responsibility to pay the fines, and fail to bring their properties into compliance, putting tenants at an undue risk. This deprives DOB of an effective enforcement mechanism, and the City of much-needed revenue.

This proposed law will enable DOB to enforce judgments of $25,000 or more as tax liens, thereby focusing on persistent code violators who do not pay. This will give teeth to the City's laws and rules, creating a real incentive for violators to bring their properties into compliance, and streamline the City's efforts to collect lines that have been duly assessed.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.


Text

STATE OF NEW YORK ________________________________________________________________________ 5489 2011-2012 Regular Sessions IN SENATE May 25, 2011 ___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Cities AN ACT to amend the administrative code of the city of New York, in relation to enforcement of environmental control board judgments as tax liens THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 28-204.6 of the administrative code of the city of New York, as added by local law number 33 of the city of New York for the year 2007, is amended to read as follows: S28-204.6 Tax lien. [Enforcement of environmental control board judg- ments against owners for certain building code violations.] Notwith- standing any provision of law to the contrary, [an] ONE OR MORE environ- mental control board [judgment] JUDGMENTS against an owner for [a building code violation with respect to a private dwelling, a wooden- framed single room occupancy multiple dwelling, or a dwelling with a legal occupancy of three or fewer dwelling units] VIOLATIONS OF THIS CODE, THE 1968 CODE, THE ZONING RESOLUTION OR OTHER LAWS OR RULES ENFORCED BY THE DEPARTMENT TOTALING TWENTY-FIVE THOUSAND DOLLARS OR MORE, INCLUDING INTEREST ON SUCH JUDGMENTS, shall constitute a tax lien on the property named in the violation with respect to which such judg- ment OR JUDGMENTS was OR WERE rendered, as hereinafter provided. Such liens shall be entered and enforced as provided in this section [28-204.6]. S 2. Section 28-204.6.1 of the administrative code of the city of New York, as added by local law number 33 of the city of New York for the year 2007, is amended to read as follows: S28-204.6.1 Record of unpaid judgments. [There shall be filed in the office of the department a record of all such unpaid judgments.] WHEN THE AMOUNT OF UNPAID ENVIRONMENTAL CONTROL BOARD JUDGMENTS AGAINST AN OWNER OF REAL PROPERTY TOTALS TWENTY-FIVE THOUSAND DOLLARS OR MORE,
INCLUDING INTEREST ON SUCH JUDGMENTS, THE DEPARTMENT MAY ENTER SUCH AMOUNT ON THE RECORDS OF THE DEPARTMENT. Such records shall be kept by tax lot and block number and shall be accessible to the public during business hours. UNPAID ENVIRONMENTAL CONTROL BOARD JUDGMENTS SHALL BE DEEMED TO BE ENTERED ON THE DATE THEY ARE ENTERED ON THE RECORDS OF THE DEPARTMENT. An entry of a judgment on the records of the department shall constitute notice to all parties. S 3. Section 28-204.6.2 of the administrative code of the city of New York, as added by local law number 33 of the city of New York for the year 2007, is amended to read as follows: S28-204.6.2 Lien. All such unpaid judgments shall constitute a lien upon the property named in the violation with respect to which such judgment was rendered when [the amount shall have been definitely computed as a statement of account by the department, and the department shall file such statement with the department of finance for entry against the property.] SUCH CHARGE IS DUE AND PAYABLE, WHICH, NOTWITH- STANDING ANY OTHER PROVISION OF LAW, SHALL BE THE DUE AND PAYABLE DATE FOR SUCH CHARGE PROVIDED ON THE SECOND NOTICE CONTAINING SUCH CHARGE MAILED BY THE DEPARTMENT OF FINANCE. SUCH NOTICE SHALL BE SENT TO OWNERS WHO NOTIFIED THE DEPARTMENT OF FINANCE OF A MAILING ADDRESS FOR STATE- MENTS OF ACCOUNT UNDER SECTION 11-129 OF THIS CODE, OR, IF NO MAILING ADDRESS HAS BEEN SO PROVIDED, TO THE OWNER OF RECORD AT THE PROPERTY ADDRESS APPEARING ON THE ASSESSMENT ROLL. Such lien shall have a priori- ty over all other liens and encumbrances except for the lien of taxes and assessments AND SHALL NOT BE DISCHARGED UNTIL THE ENTIRE AMOUNT OF THE LIEN IS PAID. However, no lien created pursuant to [this] section 28-204.6 shall be enforced against a subsequent purchaser in good faith or mortgagee in good faith unless the requirements of section 28-204.6.1 are satisfied; THIS LIMITATION SHALL ONLY APPLY TO TRANSACTIONS OCCUR- RING AFTER THE DATE SUCH RECORD SHOULD HAVE BEEN ENTERED PURSUANT TO SECTION 28-204.6.1 AND THE DATE SUCH ENTRY WAS MADE. S 4. Section 28-204.6.3 of the administrative code of the city of New York, as added by local law number 33 of the city of New York for the year 2007, is amended to read as follows: S28-204.6.3 Notice. [A notice, stating the amount due and the nature of the charge, shall be mailed by the department of finance to the last known address of the person whose name appears on the records of the department as being the owner or agent of the property or as the person designated by the owner to receive tax bills or, where no name appears, to the property, addressed to either the "owner" or the "agent."] THE DEPARTMENT OF FINANCE SHALL SEND A NOTICE WITH THE AMOUNT OF SUCH UNPAID JUDGMENTS AND A DEMAND FOR PAYMENT THEREOF TO OWNERS WHO NOTIFIED THE DEPARTMENT OF FINANCE OF A MAILING ADDRESS FOR STATEMENTS OF ACCOUNT UNDER SECTION 11-129 OF THIS CODE, OR, IF NO MAILING ADDRESS HAS BEEN SO PROVIDED, TO THE OWNER OF RECORD AT THE PROPERTY ADDRESS APPEARING ON THE ASSESSMENT ROLL. IF THE OWNER DOES NOT NOTIFY THE DEPARTMENT OF FINANCE IN WRITING OF HIS OR HER OBJECTION TO THE FIRST NOTICE CONTAIN- ING SUCH CHARGE BEFORE THE DATE THAT SUCH CHARGE BECOMES DUE AND PAYABLE AS PROVIDED IN SECTION 28-204.6.2, SUCH OWNER MAY NOT IN ANY SUBSEQUENT JUDICIAL OR ADMINISTRATIVE PROCEEDING CONTEST THE AMOUNT OF THE CHARGE CONTAINED IN SUCH NOTICE. THE DEPARTMENT OF FINANCE SHALL ONLY REVIEW SUCH OBJECTIONS THAT ARE RECEIVED BY IT IN WRITING ON OR PRIOR TO THE DUE AND PAYABLE DATE FOR THE CHARGE PROVIDED ON THE SECOND NOTICE CONTAINING SUCH CHARGE, AND MAY REFER ANY SUCH OBJECTION TO ANOTHER CITY AGENCY OR BOARD FOR A RESPONSE. SUCH NOTICE SHALL ALSO BE MAILED TO EACH PERSON WHO HAS NOTIFIED THE COMMISSIONER OF FINANCE IN WRITING OR ELEC-
TRONICALLY THAT HE OR SHE HAS AN INTEREST IN REAL PROPERTY, INCLUDING THE INTEREST OF A MORTGAGEE, LIENOR OR ENCUMBRANCER, AND WHO HAS REQUESTED THE COMMISSIONER OF FINANCE TO MAIL A NOTICE TO HIM OR HER AT A DESIGNATED MAILING ADDRESS, AT THE ADDRESS SO PROVIDED. S 5. Section 28-204.6.4 of the administrative code of the city of New York, as added by local law number 33 of the city of New York for the year 2007, is amended to read as follows: S28-204.6.4 Mailing. Such notice mailed by the department of finance [pursuant to this section 28-204.6.4] shall have stamped or printed thereon a reference to section [204.6] 28-204.6. S 6. Section 28-204.6.5 of the administrative code of the city of New York, as added by local law number 33 of the city of New York for the year 2007, is amended to read as follows: S28-204.6.5 Failure to pay charge. If such charge is not paid [within 30 days from the date of entry] BY THE DATE WHEN SUCH CHARGE IS DUE AND PAYABLE IN ACCORDANCE WITH SECTION 28-204.6.2, it shall be the duty of the department of finance to receive interest thereon at the same rate as unpaid real property taxes, to be calculated to the date of payment from the DUE AND PAYABLE date [of entry]. S 7. Section 28-204.6.9 of the administrative code of the city of New York, as added by local law number 33 of the city of New York for the year 2007, is amended to read as follows: S28-204.6.9 Notice to mortgagees and lienors. Notwithstanding the foregoing provisions, no such judgment shall be entered and enforced as a tax lien against any property unless [at the time of the issuance of the notice of violation a copy of such notice was also served on all mortgagees and lienors of record of such property by mail addressed to the recorded addresses of such mortgagees and lienors] NOTICES HAVE BEEN MAILED TO EACH PERSON WHO HAS NOTIFIED THE COMMISSIONER OF FINANCE IN WRITING OR ELECTRONICALLY THAT HE OR SHE HAS AN INTEREST IN REAL PROPER- TY, INCLUDING THE INTEREST OF A MORTGAGEE, LIENOR OR ENCUMBRANCER, AND WHO HAS REQUESTED THE COMMISSIONER OF FINANCE TO MAIL A NOTICE TO HIM OR HER AT A DESIGNATED MAILING ADDRESS, AT THE ADDRESS SO PROVIDED. NO JUDGMENT SHALL BE ENTERED AND ENFORCED AS A TAX LIEN UNTIL NINETY DAYS AFTER THE MAILING OF THE FIRST NOTICE CONTAINING THE CHARGE TO SUCH PERSONS. S 8. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to existing environmental control board judgments and to environmental control board judgments entered on and after such effective date.

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