§ 606 — Extension of the time for payment and suspension of payment of real estate tax liens

New York § 606

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 13: Miscellaneous

Text

§ 606. Extension of the time for payment and suspension of payment of\nreal estate tax liens. 1. As used in this section the term abandoned\nmultiple dwelling shall mean a class A or class B multiple dwelling\ncontaining in the aggregate not less than three dwelling units, at least\neighty percent of the occupied dwelling units of which are occupied by\npersons or families of low income as defined in subdivision ten of\nsection twelve of this chapter and which the supervising agency shall\nfind has been abandoned by the owner or owners thereof. Any such finding\nshall be based on one or more of the following conditions:\n (a) Failure to make any payments in respect of real estate taxes on\nsaid multiple dwelling for twelve months or more, and a continuing\nfailure to maintain essential services, or failure to remove violations\nof the local housing maintenance code or other statutes applicable to\nmultiple dwellings, where, as a result of either such failure the\nmultiple dwelling has become dangerous to the life, health and safety of\nits occupants; or\n (b) Failure to make any payments in respect of real estate taxes on\nsaid multiple dwelling for twelve months or more and failure to attempt\nto collect rent from a majority of the tenants in lawful occupancy of\ndwelling units in such multiple dwelling for a period of three\nconsecutive months or more; or\n (c) The entry of a judgment in favor of the petitioning tenants in a\nproceeding instituted pursuant to article seven-A of the real property\nactions and proceedings law, and the failure by the owner or other\nrespondent to secure the removal of the administrator appointed pursuant\nto such judgment within ninety days after his appointment and\nqualification; or\n (d) The entry or filing of an order appointing a receiver pursuant to\nsection three hundred nine of the multiple dwelling law or any other law\nauthorizing the appointment of a municipality or any agency or official\nthereof as receiver of a multiple dwelling, and the failure by the owner\nor other party entitled thereto to secure the removal or discharge of\nsuch receiver within ninety days thereafter.\n 2. Whenever a housing project (i) of a housing development fund\ncompany organized pursuant to the provisions of article eleven of this\nchapter, (ii) of a company organized pursuant to the provisions of\narticle two, four or five of this chapter, (iii) of a company or owner\naided by article three, eight, twelve, fourteen or fifteen of this\nchapter, or (iv) is to be financed by a mortgage made or insured by the\nfederal government or any agency or instrumentality thereof or a\nmortgage loan entered into in conjunction with a housing assistance\npayments contract in connection with new construction or substantial\nrehabilitation pursuant to section eight of the United States Housing\nAct of 1937, as amended, is premised upon the acquisition, ownership,\nrehabilitation and management of an abandoned multiple dwelling, as said\nterm is defined in subdivision one of this section, the supervising\nagency may, subject to the requirements of subdivision four of this\nsection, enter into an agreement with such housing company or owner,\nwhich agreement shall provide for one or more of the following with\nrespect to accrued real estate tax liens and municipal charges arising\nby operation of law upon the properties upon which such abandoned\nmultiple dwelling is located:\n (a) The extension of the time for the payment of all or part of\naccrued real estate tax liens and municipal charges arising by operation\nof law by spreading the payment thereof over a period or periods of time\nto commence presently or at some future time, but in no event beyond\nforty years from the date of such agreement;\n (b) The elimination of interest and penalties on all or part of the\nunpaid real estate tax liens and municipal charges arising by operation\nof law;\n (c) The suspension of the payment of all or a part of accrued real\nestate tax liens and municipal charges arising by operation of law for a\nperiod not to exceed forty years from the date of such agreement;\n (d) The elimination of all or part of accrued real estate tax liens\nand municipal charges arising by operation of law provided that in\nconsideration of such elimination the municipality may require the\nhousing company to convey to it by deed an indefeasibly vested interest\nin the real property of the project, the value of which shall be set\nforth in such agreement but shall in no event be less than the amount of\nreal estate tax liens and municipal charges arising by operation of law\neliminated, to take effect as provided therein but not later than forty\nyears from the date thereof.\n 3. No such agreement for the extension or suspension of payment or\nelimination of accrued real estate tax liens and municipal charges\narising by operation of law shall be entered into until the supervising\nagency shall first have made written findings supported by satisfactory\nevidence that:\n (a) The project is an abandoned multiple dwelling, as defined in\nsubdivision one of this section, and the owner who so abandoned such\ndwelling has no direct or indirect interest or participation in the\nproject; and\n (b) The housing company has available or has a reasonable expectation\nof obtaining from public or private sources, or both, adequate financing\nto acquire and rehabilitate the property; and\n (c) The housing company possesses or has given satisfactory evidence\nof its ability and intention to employ adequate competent personnel\ncapable of rehabilitating, supervising the rehabilitation and managing\nand operating the property in accordance with the standards and\nconditions prescribed by this section and by the supervising agency; and\n (d) The proposed rehabilitation will effectuate the removal of all\nhousing and other violations of record against the property as well as\nall incipient violations disclosed by inspections of the supervising\nagency and other agencies of the municipality charged with enforcement\nof applicable statutes and ordinances prescribing standards of\nconstruction and housing maintenance and will result in the removal of\nall unsafe and unsanitary conditions; and\n (e) The proposed rehabilitation will not require the removal of or\nrelocation of any residential tenants in occupancy, other than\ntemporarily, during the period of construction, in which case suitable\narrangements have been made for such temporary relocation; and\n (f) In order for the housing company to acquire the property and to\nrehabilitate, operate and maintain the same as provided herein, accrued\nreal estate tax liens and municipal charges arising by operation of law\naffecting the property must be extended, suspended or eliminated, in\nwhole or in part, as provided in subdivision two of this section, which\nfinding shall set forth the exact amount of accrued real estate tax\nliens and municipal charges arising by operation of law and set forth\nfull details as to the extension, suspension and elimination thereof\nrequired in order for the rents or carrying charges to be fixed and\nestablished by the supervising agency or as otherwise provided pursuant\nto the provisions of article two, three, four, five, eight, eleven,\ntwelve, fourteen or fifteen of this chapter, or in connection with a\nmortgage made or insured by the federal government or any agency or\ninstrumentality thereof or a mortgage loan entered into in conjunction\nwith a housing assistance payments contract in connection with new\nconstruction or substantial rehabilitation pursuant to section eight of\nthe United States Housing Act of 1937, as amended, whichever may be\napplicable, and shall further contain the calculations and assumptions\nupon which such finding is based and shall state that the projected\nrents or carrying charges are as high as the present occupants can\nreasonably afford, and as can reasonably be charged and collected for\ncomparable housing accommodations in the immediate vicinity of the\nabandoned multiple dwelling; and\n (g) The abandoned multiple dwelling is located in a deteriorated or\ndeteriorating neighborhood or one imminently threatened with\ndeterioration, and that unless the project is carried out, the property\nwill become unsafe and unfit for continued human habitation in the near\nfuture, and that by reason of its present and probable future condition,\nthe property is exerting or will in the near future, exert a deleterious\ninfluence upon the block in which it is located and upon the blocks,\nneighborhood and area immediately surrounding and adjacent thereto.\n 4. The agreement, with respect to a housing development fund company,\nshall contain all of the provisions required by section five hundred\nseventy-six of this chapter, and with regard to any housing company,\nincluding such housing development fund company, shall contain such\nother provisions as may be approved by the local legislative body.\n 5. (a) An agreement authorized by subdivisions two and four of this\nsection shall be submitted by the supervising agency to the local\nlegislative body of the municipality in which the project is to be\nlocated, which body may determine to extend, suspend and/or eliminate\nthe payment of all or any part of the accrued real estate tax liens and\nmunicipal charges arising by operation of law on the real property in\nsuch project, but in no event beyond the limitations set forth in\nsubdivision two of this section. The extension, suspension or\nelimination of real estate tax liens and municipal charges arising by\noperation of law may include all accrued local and municipal taxes,\nincluding assessments, water and sewer rents and sewer charges and\nspecial ad valorem levies and all emergency repair levies but shall not\ninclude any taxes or municipal charges accruing in respect of any parcel\nfor any period commencing after a date fixed by the local legislative\nbody, such date being not later than the projected date of substantial\ncompletion of the rehabilitation of the building situated on such\nparcel.\n (b) Where the municipality acts on behalf of another taxing\njurisdiction in assessing real property for the purpose of taxation, or\nin levying taxes therefor, the determination of the local legislative\nbody in granting such extension, suspension or elimination shall have\nthe effect of extending, suspending or eliminating the accrued real\nestate tax liens against the real property in such project to the extent\nand subject to the provisions of paragraph (a) of this subdivision.\n