S T A T E   O F   N E W   Y O R K
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                                  5776

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 3, 2015
                               ___________

Introduced  by  Sen. VALESKY -- 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
  authorizing land banks to access real property prior to acquisition of
  the property and to the liabilities and exemptions from  liability  of
  land  banks  with relation to the acquisition and ownership of vacant,
  abandoned or tax delinquent real property

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The not-for-profit corporation law is amended by adding two
new sections 1608-a and 1608-b to read as follows:
S 1608-A. ACCESS TO REAL PROPERTY PRIOR TO ACQUISITION.
  NOTWITHSTANDING  ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO THE
CONTRARY:
  (A) TO CARRY OUT THE POWERS, DUTIES AND GOALS IDENTIFIED IN THIS ARTI-
CLE, LAND BANKS SHALL BE AUTHORIZED, IN ACCORDANCE  WITH  THE  PROCEDURE
DESCRIBED  IN  THIS SECTION, TO ACCESS ANY TAX DELINQUENT PARCEL OF REAL
PROPERTY THAT THE LAND BANK INTENDS  TO  ACQUIRE  FROM  ANY  FORECLOSING
GOVERNMENTAL  UNIT,  IN ORDER TO DETERMINE THE PHYSICAL CONDITION OF ANY
BUILDINGS OR STRUCTURES ON SUCH PARCEL, OR TO ASSESS  THE  ENVIRONMENTAL
CONDITION  OF  SUCH  PARCEL.  IF  DEEMED  APPROPRIATE, SUCH ACCESS SHALL
INCLUDE THE ABILITY TO ENGAGE AN ENVIRONMENTAL PROFESSIONAL  TO  CONDUCT
ALL  APPROPRIATE  INQUIRIES  INTO  THE  FORMER USE AND OWNERSHIP OF SUCH
PROPERTY, IN ORDER TO DETERMINE WHETHER HAZARDOUS  MATERIALS,  HAZARDOUS
SUBSTANCES OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR DISPOSED OF
ON SUCH PARCEL, CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY PRACTICE.
  (B) FOLLOWING THE COMMENCEMENT OF A PROCEEDING TO FORECLOSE A TAX LIEN
BY  THE  TAXING  DISTRICT HAVING ANY RIGHT, TITLE OR INTEREST IN OR LIEN
UPON ANY PARCEL, A LAND BANK MAY, UPON NOT LESS THAN TWENTY DAYS' NOTICE
TO ALL PARTIES HAVING RIGHT, TITLE, OR INTEREST IN, OR  LIEN  UPON  SUCH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11251-02-5
              

S. 5776                             2

PARCEL,  MOVE,  AT  A SPECIAL TERM IN THE COURT IN WHICH THE FORECLOSURE
PROCEEDING WAS INITIATED, OR IF SUCH  PROCEEDING  IS  AN  ADMINISTRATIVE
PROCEEDING PURSUANT TO THE PROVISIONS OF A COUNTY CHARTER, CITY CHARTER,
ADMINISTRATIVE CODE, OR SPECIAL LAW WHEN APPLICABLE UNDER SECTION ELEVEN
HUNDRED  FOUR OF THE REAL PROPERTY TAX LAW, THEN SUCH MOTION SHALL BE AT
A SPECIAL TERM OF THE SUPREME COURT IN THE COUNTY IN WHICH  SUCH  PARCEL
IS  LOCATED, FOR AN ORDER GRANTING THE LAND BANK THE TEMPORARY INCIDENTS
OF OWNERSHIP OF SUCH PARCEL FOR THE SOLE PURPOSE OF  ENABLING  THE  LAND
BANK AND ITS AGENTS TO ENTER THE PARCEL TO CONDUCT VISUAL INSPECTION AND
SUCH  FURTHER ENVIRONMENTAL INVESTIGATION OF THE PARCEL AS THE LAND BANK
DEEMS NECESSARY IN  ORDER  TO  DETERMINE  WHETHER  HAZARDOUS  MATERIALS,
HAZARDOUS  SUBSTANCES  OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR
DISPOSED OF ON SUCH PARCEL. SUCH INSPECTION MAY INCLUDE  INVASIVE  TEST-
ING,  INCLUDING  BUT  NOT  LIMITED TO SAMPLING OF SURFACE AND SUBSURFACE
SOIL AND/OR GROUNDWATER, AS IS CONSIDERED BY  AN  ENVIRONMENTAL  PROFES-
SIONAL TO BE NECESSARY AND CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY
PRACTICE  FOR  CONDUCTING  ALL APPROPRIATE INQUIRIES INTO THE FORMER USE
AND CONDITION OF SUCH PARCEL. FOLLOWING ANY SUCH INVASIVE  TESTING,  THE
LAND  BANK  SHALL  RETURN  THE PARCEL, TO THE EXTENT PRACTICABLE, TO THE
CONDITION IT WAS IN BEFORE THE INVESTIGATION.
  (C) UNLESS PRIOR TO THE RETURN DATE OF THE MOTION BROUGHT PURSUANT  TO
THIS  SECTION  THE  PROPERTY  HAS  BEEN REDEEMED BY THE PARTY HAVING THE
RIGHT OF REDEMPTION, THE COURT SHALL ENTER AN ORDER GRANTING SUCH RELIEF
TO THE LAND BANK. SUCH ORDER SHALL BE GRANTED UPON SUCH TERMS AND CONDI-
TIONS AS THE COURT SHALL DEEM JUST AND PROPER TO PERMIT  THE  INSPECTION
TO  OCCUR  UNHINDERED  AS  WELL AS TO PROTECT THE INTERESTS OF ALL OTHER
PARTIES HAVING AN OWNERSHIP INTEREST IN THE PARCEL. SUCH ORDER SHALL ACT
AS A STAY TO THE FORECLOSURE ACTION ON SUCH PARCEL OF PROPERTY UNTIL THE
INSPECTION HAS BEEN COMPLETED AND A REPORT OF THE INVESTIGATION HAS BEEN
FILED WITH THE COURT.
  (D) SUCH TEMPORARY INCIDENTS OF OWNERSHIP IN THE PARCEL  BY  THE  LAND
BANK SHALL NOT BE SUFFICIENT OR CONSTRUED TO CONSTITUTE ACTUAL OWNERSHIP
OF  THE  PARCEL  FOR  PURPOSES OF ANY APPLICABLE ENVIRONMENTAL LAW WHICH
CONFERS LIABILITY FOR DAMAGES CAUSED BY THE  RELEASE  OF  ANY  HAZARDOUS
MATERIAL,  SUBSTANCE  OR  CONTAMINANT,  UNLESS SUCH RELEASE WAS ACTUALLY
CAUSED BY THE LAND BANK.
  (E) WITHIN THIRTY DAYS FOLLOWING THE  COMPLETION  OF  THE  INSPECTION,
INCLUDING  RECEIPT  OF  A  FINAL  REPORT  RECEIVED FROM AN ENVIRONMENTAL
PROFESSIONAL CONDUCTING THE INSPECTION, IF ANY, THE LAND BANK SHALL FILE
ANY SUCH REPORT, OR A DESCRIPTION OF THE RESULTS OF THE INSPECTION IF NO
FORMAL ENVIRONMENTAL INVESTIGATION OF THE PARCEL  WAS  UNDERTAKEN,  WITH
THE  COURT  ON  NOTICE TO THE COURT AND ALL OTHER PARTIES OF RECORD, AND
THE STAY OF THE FORECLOSURE SHALL BE LIFTED (UNLESS LIFTED EARLIER BY  A
PRIOR COURT ORDER), AND ALL INCIDENTS OF TEMPORARY OWNERSHIP OF THE LAND
BANK THAT WAS AWARDED TO SUCH LAND BANK, SHALL CEASE TO EXIST, AND NOTH-
ING  IN THIS SUBDIVISION SHALL PRECLUDE THE LAND BANK THAT CONDUCTED THE
INSPECTION FROM MAKING A DETERMINATION NOT TO  ACQUIRE  THE  PARCEL,  OR
PRECLUDE  THE TAXING JURISDICTION THAT COMMENCED THE FORECLOSURE ACTION,
FROM WITHDRAWING THE PARCEL FROM FORECLOSURE PURSUANT TO SECTION  ELEVEN
HUNDRED  THIRTY-EIGHT  OF  THE  REAL PROPERTY TAX LAW OR PURSUANT TO THE
PROVISIONS OF A COUNTY CHARTER, CITY CHARTER,  ADMINISTRATIVE  CODE,  OR
SPECIAL  LAW  WHEN  APPLICABLE  UNDER SECTION ELEVEN HUNDRED FOUR OF THE
REAL PROPERTY TAX LAW.
S 1608-B. LIABILITY EXEMPTION AND DEFENSES.
  NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO  THE
CONTRARY,  IN  CARRYING  OUT  THE POWERS, DUTIES AND GOALS IDENTIFIED IN

S. 5776                             3

THIS ARTICLE WITH RESPECT TO THE ACQUISITION AND  OWNERSHIP  OF  VACANT,
ABANDONED OR TAX DELINQUENT REAL PROPERTY, NO LAND BANK ORGANIZED PURSU-
ANT TO THIS TITLE SHALL INCUR LIABILITY FROM ANY STATUTORY CLAIMS OF THE
STATE  RELATING TO THE PRESENCE, RELEASE OR DISPOSAL OF HAZARDOUS WASTE,
HAZARDOUS SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS ON REAL  PROPERTY,
BY  VIRTUE OF ITS ACQUISITION AND OWNERSHIP OF ANY PROPERTY CONTAMINATED
BY SUCH  HAZARDOUS  WASTE,  HAZARDOUS  SUBSTANCES,  PETROLEUM  OR  OTHER
CONTAMINANTS, PROVIDED THAT THE FOLLOWING CONDITIONS ARE MET:
  (A)  SUCH  PROPERTY  CONSTITUTED  VACANT,  ABANDONED OR TAX DELINQUENT
PROPERTY AND WAS ACQUIRED BY  THE  LAND  BANK  TO  EFFECT  THE  PURPOSES
DESCRIBED IN SECTION SIXTEEN HUNDRED ONE OF THIS ARTICLE;
  (B)  THE  RELEASE  OR  DISPOSAL  OF  THE  HAZARDOUS  WASTE,  HAZARDOUS
SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS OCCURRED BEFORE THE ACQUISI-
TION OF THE PROPERTY BY THE LAND BANK;
  (C) THE LAND BANK DID NOT  CAUSE  OR  CONTRIBUTE  TO  THE  RELEASE  OR
THREATENED  RELEASE OF THE HAZARDOUS WASTE OR PETROLEUM FROM OR ONTO THE
PROPERTY, OR GENERATE, TRANSPORT, OR DISPOSE OF SUCH HAZARDOUS WASTE  OR
PETROLEUM,  OR  ARRANGE FOR, OR CAUSE THE GENERATION, TRANSPORTATION, OR
DISPOSAL OF HAZARDOUS WASTE, FROM OR ONTO THE SITE; AND
  (D) SUCH PROPERTY WAS ACQUIRED  BY  THE  LAND  BANK  EITHER  DIRECTLY,
THROUGH  FORECLOSURE  OF  A  TAX  LIEN, OR, WAS ACQUIRED FROM ANY PUBLIC
CORPORATION,  AS  DEFINED  IN  SECTION   SIXTY-FIVE   OF   THE   GENERAL
CONSTRUCTION LAW, FOLLOWING THE INVOLUNTARY ACQUISITION OF OWNERSHIP AND
CONTROL BY SUCH PUBLIC CORPORATION, INCLUDING BUT NOT LIMITED TO:
  (1)  ACQUISITIONS  BY  A PUBLIC CORPORATION IN ITS SOVEREIGN CAPACITY,
INCLUDING BUT  NOT  LIMITED  TO  ACQUISITIONS  PURSUANT  TO  ABANDONMENT
PROCEEDINGS OR BEQUEST;
  (2)  ACQUISITIONS  BY  A PUBLIC CORPORATION, OR ITS AGENT, ACTING AS A
CONSERVATOR OR RECEIVER PURSUANT TO A CLEAR AND DIRECT STATUTORY MANDATE
OR REGULATORY AUTHORITY;
  (3) ACQUISITIONS OF ASSETS THROUGH FORECLOSURE AND ITS EQUIVALENTS, OR
OTHERWISE, BY A PUBLIC CORPORATION IN  THE  COURSE  OF  ADMINISTERING  A
LOAN,  LOAN  GUARANTEE,  TAX LIEN, OR TAX FORBEARANCE AGREEMENT, OR LOAN
INSURANCE PROGRAM; OR
  (4) ACQUISITIONS BY A PUBLIC CORPORATION PURSUANT TO SEIZURE,  INJUNC-
TION,  CONDEMNATION,  OR FORFEITURE AUTHORITY; PROVIDED THAT SUCH OWNER-
SHIP OR CONTROL IS NOT RETAINED PRIMARILY FOR INVESTMENT PURPOSES.
  S 2. This act shall take effect immediately.