§ 1616 — Delinquent property tax enforcement

New York § 1616

• Jurisdiction: New York
• Law NPC: Not-for-Profit Corporation
• Art. 16: Land Banks

Text

§ 1616. Delinquent property tax enforcement.\n The municipality may enter into a contract to sell some or all of the\ndelinquent tax liens held by it to a land bank, subject to the following\nconditions:\n (a) The consideration to be paid may be more or less than the face\namount of the tax liens sold.\n (b) Property owners shall be given at least thirty days advance notice\nof such sale in the same form and manner as is provided by subdivision\ntwo of section eleven hundred ninety of the real property tax law.\nFailure to provide such notice or the failure of the addressee to\nreceive the same shall not in any way affect the validity of any sale of\na tax lien or tax liens or the validity of the taxes or interest\nprescribed by law with respect thereto.\n (c) The municipality shall set the terms and conditions of the\ncontract of sale.\n (d) The land bank must thirty days prior to the commencement of any\nforeclosure action provide to the municipality a list of liens to be\nforeclosed. The municipality may, at its sole option and discretion,\nrepurchase a lien or liens on the foreclosure list from the land bank.\nThe repurchase price shall be the amount of the lien or liens plus any\naccrued interest and collection fees incurred by the land bank. The land\nbank shall provide the foreclosure list to the municipality, along with\nthe applicable repurchase price of each lien, by certified mail, and the\nmunicipality shall have thirty days from receipt to notify the land bank\nof its option to purchase one or more of the liens. If the municipality\nopts to purchase the lien, it shall provide payment within thirty days\nof receipt of the repurchase price of said lien or liens. If the\nmunicipality shall fail to opt to repurchase the lien or liens the land\nbank shall have the right to commence a foreclosure action immediately.\n (e) The sale of a tax lien pursuant to this article shall not operate\nto shorten the otherwise applicable redemption period or change the\notherwise applicable interest rate.\n (f) Upon the expiration of the redemption period prescribed by law,\nthe purchaser of a delinquent tax lien, or its successors or assigns,\nmay foreclose the lien as in an action to foreclose a mortgage as\nprovided in section eleven hundred ninety-four of the real property tax\nlaw. The procedure in such action shall be the procedure prescribed by\narticle thirteen of the real property actions and proceedings law for\nthe foreclosure of mortgages. At any time following the commencement of\nan action to foreclose a lien, the amount required to redeem the lien,\nor the amount received upon sale of a property, shall include reasonable\nand necessary collection costs, attorneys' fees, legal costs,\nallowances, and disbursements.\n (g) The provisions of title five of article eleven of the real\nproperty tax law shall apply so far as is practicable to a contract for\nthe sale of tax liens pursuant to this article.\n (h) If the court orders a public sale pursuant to section eleven\nhundred thirty-six of the real property tax law, and the purchaser of\nthe property is the land bank, then the form, substance, and timing of\nthe land bank's payment of the sales price may be according to such\nagreement as is mutually acceptable to the plaintiff and the land bank.\nThe obligation of the land bank to perform in accordance with such\nagreement shall be deemed to be in full satisfaction of the tax claim\nwhich was the basis for the judgment.\n (i) Notwithstanding any other provision of law to the contrary, in the\nevent that no municipality elects to tender a bid at a public sale\npursuant to the provisions of section eleven hundred sixty-six of the\nreal property tax law or sale pursuant to the provisions of a county\ncharter, city charter, administrative code, or special law when\napplicable under section eleven hundred four of the real property tax\nlaw, the land bank may tender a bid at such sale in an amount equal to\nthe total amount of all municipal claims and liens which were the basis\nfor the judgment. In the event of such tender by the land bank the\nproperty shall be deemed sold to the land bank regardless of any bids by\nany other third parties. The bid of the land bank shall be paid as to\nits form, substance, and timing according to such agreement as is\nmutually acceptable to the plaintiff and the land bank. The obligation\nof the land bank to perform in accordance with such agreement shall be\ndeemed to be in full satisfaction of the municipal claim which was the\nbasis for the judgment. The land bank, as purchaser at such public sale\nor sale pursuant to the provisions of a county charter, city charter,\nadministrative code, or special law when applicable under section eleven\nhundred four of the real property tax law, shall take and forever\nthereafter have, an absolute title to the property sold, free and\ndischarged of all tax and municipal claims, liens, mortgages, charges\nand estates of whatsoever kind. The deed to the land bank shall be\nexecuted, acknowledged and delivered within thirty days of the sale.\nAlternatively, the land bank can assign all rights resulting from the\nland bank's successful tender for the property to the foreclosing\ngovernmental unit, which would allow the property to be deeded directly\nto the foreclosing governmental unit. All land bank acquisitions\npursuant to this paragraph shall comply with section sixteen hundred\neight of this article and all dispositions of property acquired pursuant\nto this paragraph shall comply with section sixteen hundred nine of this\narticle.\n