S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1634
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2023
                                ___________
 
 Introduced  by  M.  of A. GUNTHER, COOK -- read once and referred to the
   Committee on Real Property Taxation
 
 AN ACT to amend the general city law and chapter 602 of the laws of 1993
   amending the real property tax law relating to the enforcement of  the
   collection  of delinquent real property taxes and to the collection of
   taxes by banks, in relation to the collection of delinquent real prop-
   erty taxes and providing for the repeal of such provisions upon  expi-
   ration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general city law is amended by  adding  a  new  section
 21-a to read as follows:
   §  21-A.  COLLECTION  OF  DELINQUENT  TAX LIENS.   NOTWITHSTANDING ANY
 PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW TO THE CONTRARY AND UNTIL
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SEVEN,  ANY  CITY  MAY  ENTER
 INTO  A CONTRACT TO SELL SOME OR ALL OF THE DELINQUENT TAX LIENS HELD BY
 IT WHICH HAVE BEEN ATTACHED TO REAL PROPERTY ON OR BEFORE JANUARY  THIR-
 TY-FIRST,  TWO THOUSAND TWENTY-SEVEN, TO A PRIVATE PARTY, SUBJECT TO THE
 FOLLOWING CONDITIONS:
   1. PRIOR TO ANY SALE, THE CITY COUNCIL SHALL HOLD A PUBLIC HEARING, ON
 NOTICE OF AT LEAST FORTY-FIVE DAYS, ANNOUNCING THE INTENTION OF THE CITY
 TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A  THIRD  PARTY.  SUCH
 HEARING SHALL NOT BE HELD MORE THAN NINETY DAYS PRIOR TO SUCH SALE.
   2.  UPON  THE  APPROVAL OF THE CITY COUNCIL AND BY ADOPTION OF A LOCAL
 LAW, ANY CITY SHALL BE AUTHORIZED TO SELL DELINQUENT TAX LIENS  AND  THE
 CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE AMOUNT OF THE
 TAX LIENS SOLD.
   3.  PROPERTY OWNERS SHALL BE GIVEN AT LEAST THIRTY DAYS ADVANCE NOTICE
 OF SUCH SALE IN THE SAME FORM AND MANNER AS IS PROVIDED  BY  SUBDIVISION
 TWO  OF  SECTION  ELEVEN  HUNDRED  NINETY  OF THE REAL PROPERTY TAX LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01151-01-3
 A. 1634                             2
              

 
 FAILURE TO PROVIDE SUCH NOTICE  OR  THE  FAILURE  OF  THE  ADDRESSEE  TO
 RECEIVE THE SAME SHALL INVALIDATE ANY SALE OF A TAX LIEN OR TAX LIENS.
   4.  THE  CITY  SHALL  SET  THE TERMS AND CONDITIONS OF THE CONTRACT OF
 SALE.
   5. THE TAX LIEN PURCHASER MUST, THIRTY DAYS PRIOR TO THE  COMMENCEMENT
 OF  ANY  FORECLOSURE  ACTION,  PROVIDE TO THE CITY A LIST OF LIENS TO BE
 FORECLOSED. THE CITY MAY, AT ITS SOLE OPTION AND DISCRETION,  REPURCHASE
 A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE TAX LIEN PURCHASER. THE
 REPURCHASE  PRICE SHALL BE THE AMOUNT AT WHICH THE CITY SOLD THE LIEN OR
 LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE  ANY  ACCRUED  INTEREST.
 THE  TAX  LIEN  PURCHASER SHALL PROVIDE THE FORECLOSURE LIST TO THE CITY
 ALONG WITH THE APPLICABLE REPURCHASE PRICE OF EACH  LIEN,  BY  CERTIFIED
 MAIL, AND THE CITY SHALL HAVE THIRTY DAYS FROM RECEIPT TO NOTIFY THE TAX
 LIEN  PURCHASER  OF  ITS OPTION TO PURCHASE ONE OR MORE OF THE LIENS. IF
 THE CITY OPTS TO PURCHASE THE LIEN,  IT  SHALL  PROVIDE  PAYMENT  WITHIN
 THIRTY DAYS OF RECEIPT OF THE REPURCHASE PRICE OF SAID LIEN OR LIENS. IF
 THE  CITY SHALL FAIL TO OPT TO REPURCHASE THE LIEN OR LIENS THE TAX LIEN
 PURCHASER SHALL HAVE THE RIGHT TO COMMENCE  A  FORECLOSURE  ACTION  ONLY
 AFTER  THE  PURCHASER  HAS GIVEN WRITTEN NOTICE TO THE PROPERTY OWNER AT
 THE LAST KNOWN ADDRESS AS LISTED ON THE ASSESSMENT ROLL OF THE CITY THAT
 SAID PROPERTY OWNER HAS THE RIGHT TO ENTER INTO A  PAYMENT  PLAN  OF  AT
 LEAST  TWENTY-FOUR MONTHS BUT NO LONGER THAN FORTY-EIGHT MONTHS TO REPAY
 THE TAX AMOUNT OWED. THE TAX LIEN PURCHASER  SHALL  HAVE  THE  RIGHT  TO
 CHARGE  THE  SAME  INTEREST AS WAS ACCRUING ON THE TAX LIEN CERTIFICATE.
 THE TAX LIEN PURCHASER SHALL NOT BE ALLOWED TO CHARGE  ANY  OTHER  FEES,
 COSTS  OR  CHARGES  EXCEPT  THOSE  EXPRESSLY  ALLOWED  HEREIN UNDER THIS
 SECTION.
   6. THE SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL  NOT  OPERATE
 TO  SHORTEN  THE  OTHERWISE  APPLICABLE  REDEMPTION PERIOD OR CHANGE THE
 OTHERWISE APPLICABLE INTEREST RATE.
   7. UPON THE EXPIRATION OF THE REDEMPTION PERIOD PRESCRIBED BY LAW, THE
 PURCHASER OF A DELINQUENT TAX LIEN, OR ITS SUCCESSORS  OR  ASSIGNS,  MAY
 FORECLOSE THE LIEN AS IN AN ACTION AS PROVIDED IN SECTION ELEVEN HUNDRED
 NINETY-FOUR  OF  THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH ACTION
 SHALL BE THE SAME PROCEDURE AS PRESCRIBED BY  ARTICLE  THIRTEEN  OF  THE
 REAL  PROPERTY  ACTIONS AND PROCEEDINGS LAW FOR THE FORECLOSURE OF MORT-
 GAGES. AT ANY TIME FOLLOWING THE COMMENCEMENT OF AN ACTION TO  FORECLOSE
 A  LIEN,  THE AMOUNT REQUIRED TO REDEEM THE LIEN, OR THE AMOUNT RECEIVED
 UPON SALE OF A PROPERTY, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION
 COSTS AND LEGAL FEES.
   8. IN EACH YEAR SUBSEQUENT TO THE TAX LIEN  SALE,  AND  NO  MORE  THAN
 SIXTY  DAYS  AFTER THE ANNUAL ANNIVERSARY OF SUCH SALE, THE CITY COUNCIL
 OR THEIR DESIGNEE SHALL PREPARE A REPORT ON THE STATUS  AND  RESULTS  OF
 SUCH SALE. SUCH REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, INFOR-
 MATION  ON  THE TOTAL DOLLAR AMOUNT RECEIVED BY THE MUNICIPALITY IN SUCH
 SALE, THE NUMBER OF FORECLOSURES  CONDUCTED  BY  THE  THIRD  PARTY,  THE
 NUMBER  OF PAYMENT PLANS ENTERED INTO BY TAXPAYERS AND THE STATUS THERE-
 OF, THE NUMBER, IF ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE
 NUMBER OF PROPERTIES TAKEN BACK BY THE CITY PURSUANT TO  THE  TERMS  AND
 CONDITIONS  OF  THE  CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS
 RECEIVED BY THE CITY ON THE CONDUCT OF THE ACTIONS OF  THE  THIRD  PARTY
 AND  ANY  OTHER INFORMATION THE CITY COUNCIL DEEMS NECESSARY AND PROPER.
 SUCH REPORT SHALL BE FILED WITH THE STATE COMPTROLLER  FOR  HIS  OR  HER
 REVIEW.  THE  STATE  COMPTROLLER  SHALL  ANNUALLY  PREPARE  A REPORT FOR
 SUBMISSION TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE
 SPEAKER  OF THE ASSEMBLY, AND TO THE RESPECTIVE MINORITY LEADERS IN BOTH
 A. 1634                             3

 THE SENATE AND ASSEMBLY WHICH DETAILS THE EXPERIENCES OF ALL CITIES THAT
 PARTICIPATED IN SUCH PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED
 FOR IN SECTION THREE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND  TWENTY-
 THREE THAT ADDED THIS SECTION.
   9. THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN OF THE REAL PROPERTY
 TAX  LAW SHALL APPLY SO FAR AS IS PRACTICABLE TO A CONTRACT FOR THE SALE
 OF TAX LIENS PURSUANT TO THIS SECTION.
   § 2. Section 6 of chapter 602 of the laws of 1993  amending  the  real
 property tax law relating to the enforcement of the collection of delin-
 quent  real  property  taxes and to the collection of taxes by banks, is
 amended by adding a new subdivision (d) to read as follows:
   (D) NOTWITHSTANDING ANY PROVISION OF ANY GENERAL, SPECIAL OR LOCAL LAW
 TO THE CONTRARY AND UNTIL DECEMBER 31, 2027, ANY VILLAGE MAY ENTER  INTO
 A  CONTRACT  TO  SELL SOME OR ALL OF THE DELINQUENT TAX LIENS HELD BY IT
 WHICH HAVE BEEN ATTACHED TO REAL PROPERTY ON OR BEFORE JANUARY 31, 2028,
 TO A PRIVATE PARTY, SUBJECT TO THE FOLLOWING CONDITIONS:
   (1) PRIOR TO ANY SALE, THE BOARD OF TRUSTEES SHALL HOLD A PUBLIC HEAR-
 ING, ON NOTICE OF AT LEAST 45 DAYS,  ANNOUNCING  THE  INTENTION  OF  THE
 VILLAGE TO SELL ITS DELINQUENT REAL PROPERTY TAX LIENS TO A THIRD PARTY.
 SUCH HEARING SHALL NOT BE HELD MORE THAN 90 DAYS PRIOR TO SUCH SALE.
   (2)  UPON  THE  APPROVAL OF THE BOARD OF TRUSTEES AND BY ADOPTION OF A
 LOCAL LAW, THE BOARD SHALL AUTHORIZE THE SALE  OF  SAID  DELINQUENT  TAX
 LIENS AND THE CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE
 AMOUNT OF THE TAX LIENS SOLD.
   (3)  PROPERTY OWNERS SHALL BE GIVEN AT LEAST 30 DAYS ADVANCE NOTICE OF
 SUCH SALE IN THE SAME FORM AND MANNER AS IS PROVIDED BY SUBDIVISION 2 OF
 SECTION 1190 OF THE REAL PROPERTY  TAX  LAW.  FAILURE  TO  PROVIDE  SUCH
 NOTICE OR THE FAILURE OF THE ADDRESSEE TO RECEIVE THE SAME SHALL INVALI-
 DATE ANY SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY OF THE TAXES OR
 INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
   (4)  THE VILLAGE SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF
 SALE.
   (5) THE TAX LIEN PURCHASER MUST, 30 DAYS PRIOR TO THE COMMENCEMENT  OF
 ANY  FORECLOSURE  ACTION,  PROVIDE  TO THE VILLAGE A LIST OF LIENS TO BE
 FORECLOSED. THE VILLAGE MAY, AT ITS SOLE OPTION AND  DISCRETION,  REPUR-
 CHASE A LIEN OR LIENS ON THE FORECLOSURE LIST FROM THE TAX LIEN PURCHAS-
 ER.  THE  REPURCHASE PRICE SHALL BE THE AMOUNT AT WHICH THE VILLAGE SOLD
 THE LIEN OR LIENS TO THE TAX LIEN PURCHASER AND MAY INCLUDE ANY  ACCRUED
 INTEREST.  THE  TAX LIEN PURCHASER SHALL PROVIDE THE FORECLOSURE LIST TO
 THE VILLAGE ALONG WITH THE APPLICABLE REPURCHASE PRICE OF EACH LIEN,  BY
 CERTIFIED MAIL, AND THE VILLAGE SHALL HAVE 30 DAYS FROM RECEIPT TO NOTI-
 FY  THE  TAX LIEN PURCHASER OF ITS OPTION TO PURCHASE ONE OR MORE OF THE
 LIENS. IF THE VILLAGE OPTS  TO  PURCHASE  THE  LIEN,  IT  SHALL  PROVIDE
 PAYMENT  WITHIN  30 DAYS OF RECEIPT OF THE REPURCHASE PRICE OF SAID LIEN
 OR LIENS. IF THE VILLAGE SHALL FAIL TO OPT TO  REPURCHASE  THE  LIEN  OR
 LIENS THE TAX LIEN PURCHASER SHALL HAVE THE RIGHT TO COMMENCE A FORECLO-
 SURE  ACTION  ONLY  AFTER  THE PURCHASER HAS GIVEN WRITTEN NOTICE TO THE
 PROPERTY OWNER AT THE LAST KNOWN ADDRESS AS  LISTED  ON  THE  ASSESSMENT
 ROLL OF THE VILLAGE THAT SAID PROPERTY OWNER HAS THE RIGHT TO ENTER INTO
 A  PAYMENT  PLAN  OF  AT LEAST 24 MONTHS BUT NO LONGER THAN 48 MONTHS TO
 REPAY THE TAX AMOUNT OWED. THE TAX LIEN PURCHASER SHALL HAVE  THE  RIGHT
 TO CHARGE THE SAME INTEREST AS WAS ACCRUING ON THE TAX LIEN CERTIFICATE.
 THE  TAX  LIEN  PURCHASER SHALL NOT BE ALLOWED TO CHARGE ANY OTHER FEES,
 COSTS OR CHARGES EXCEPT THOSE EXPRESSLY ALLOWED HEREIN UNDER THIS SUBDI-
 VISION.
 A. 1634                             4
 
   (6) THE SALE OF A TAX LIEN PURSUANT  TO  THIS  SUBDIVISION  SHALL  NOT
 OPERATE  TO SHORTEN THE OTHERWISE APPLICABLE REDEMPTION PERIOD OR CHANGE
 THE OTHERWISE APPLICABLE INTEREST RATE.
   (7)  UPON  THE  EXPIRATION OF THE REDEMPTION PERIOD PRESCRIBED BY LAW,
 THE PURCHASER OF A DELINQUENT TAX LIEN, OR ITS  SUCCESSORS  OR  ASSIGNS,
 MAY  FORECLOSE  THE  LIEN AS IN AN ACTION AS PROVIDED IN SECTION 1194 OF
 THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH  ACTION  SHALL  BE  THE
 SAME  PROCEDURE AS PRESCRIBED BY ARTICLE 13 OF THE REAL PROPERTY ACTIONS
 AND PROCEEDINGS LAW FOR  THE  FORECLOSURE  OF  MORTGAGES.  AT  ANY  TIME
 FOLLOWING  THE COMMENCEMENT OF AN ACTION TO FORECLOSE A LIEN, THE AMOUNT
 REQUIRED TO REDEEM THE LIEN, OR THE AMOUNT RECEIVED UPON SALE OF A PROP-
 ERTY, MAY INCLUDE REASONABLE AND NECESSARY COLLECTION  COSTS  AND  LEGAL
 FEES.
   (8)  IN EACH YEAR SUBSEQUENT TO THE TAX LIEN SALE, AND NO MORE THAN 60
 DAYS AFTER THE ANNUAL  ANNIVERSARY  OF  SUCH  SALE,  THE  VILLAGE  SHALL
 PREPARE  A  REPORT  ON  THE STATUS AND RESULTS OF SUCH SALE. SUCH REPORT
 SHALL INCLUDE, BUT NEED NOT BE LIMITED  TO,  INFORMATION  ON  THE  TOTAL
 DOLLAR  AMOUNT  RECEIVED BY THE MUNICIPALITY IN SUCH SALE, THE NUMBER OF
 FORECLOSURES CONDUCTED BY THE THIRD PARTY, THE NUMBER OF  PAYMENT  PLANS
 ENTERED  INTO  BY  THE  TAXPAYERS AND THE STATUS THEREOF, THE NUMBER, IF
 ANY, OF COMPLAINTS ABOUT THE FORECLOSURE PROCESS, THE NUMBER OF  PROPER-
 TIES  TAKEN  BACK BY THE VILLAGE PURSUANT TO THE TERMS AND CONDITIONS OF
 THE CONTRACT OF SALE, THE NUMBER, IF ANY, OF COMPLAINTS RECEIVED BY  THE
 VILLAGE  ON  THE CONDUCT OF THE ACTIONS OF THE THIRD PARTY AND ANY OTHER
 INFORMATION THE VILLAGE DEEMS NECESSARY AND PROPER. SUCH REPORT SHALL BE
 FILED WITH THE STATE COMPTROLLER FOR HIS OR HER REVIEW. THE STATE  COMP-
 TROLLER  SHALL ANNUALLY PREPARE A REPORT FOR SUBMISSION TO THE GOVERNOR,
 THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  AND
 TO THE RESPECTIVE MINORITY LEADERS IN BOTH THE SENATE AND ASSEMBLY WHICH
 DETAILS  THE  EXPERIENCES  OF  ALL  VILLAGES  THAT  PARTICIPATED IN SUCH
 PROGRAM TO COLLECT DELINQUENT TAX LIENS AS PROVIDED FOR IN SECTION 3  OF
 THE CHAPTER OF THE LAWS OF 2023 THAT ADDED THIS SUBDIVISION.
   (9)  THE  PROVISIONS OF TITLE 5 OF ARTICLE 11 OF THE REAL PROPERTY TAX
 LAW SHALL APPLY SO FAR AS IS PRACTICABLE TO A CONTRACT FOR THE  SALE  OF
 TAX LIENS PURSUANT TO THIS SUBDIVISION.
   §  3.  The  state  comptroller  in  preparing  its  annual report that
 outlines the experiences of all cities and villages  that  have  partic-
 ipated  in  a program to collect delinquent tax liens as provided for in
 section 21-a of the general city law and subdivision (d) of section 6 of
 chapter 602 of the laws of 1993, shall include the following information
 as provided for in this section. Such report shall briefly  outline  the
 reports  submitted  by all participating municipalities, the cost effec-
 tiveness of such program to enhance real property tax  collections,  the
 aggregate  amount of tax revenue collected minus expenses, the number of
 foreclosures conducted by third parties, the  number  of  payment  plans
 entered  into  by taxpayers, the number and severity of complaints about
 the foreclosure process, the number of properties taken back by  partic-
 ipating municipalities, any complaints received by participating munici-
 palities  from  tax  lien  debtors and the general public, and any other
 items or suggestions that the state comptroller  may  make  to  increase
 consumer  protections to assist real property owners who have delinquent
 tax liens pending to retain their real property. Such  report  shall  be
 issued by the state comptroller by July first of each year.
   §  4.  This act shall take effect immediately and shall expire January
 31, 2028 when upon such date the provisions of this act shall be  deemed
 repealed.