US Laws, Codes, Statutes & Cases

 
    §  11-319 Sales of tax liens. a. A tax lien or tax liens on a property
  or any component of the amount thereof  may  be  sold  by  the  city  as
  authorized  by  subdivision b of this section, when such tax lien or tax
  liens shall have remained unpaid in whole  or  in  part  for  one  year,
  provided,  however, that a tax lien or tax liens on any class 1 property
  or on class 2 property that is a residential condominium or  residential
  cooperative, as such classes of property are defined in subdivision 1 of
  section  1802 of the real property tax law, may be sold by the city only
  when the real property tax component of such tax lien or tax liens shall
  have remained unpaid in whole or in part for three years, and after such
  sale, shall be transferred, in the manner provided by  this  chapter.  A
  tax  lien or tax liens on any property classified as a class 2 property,
  except  a  class  2  property  that  is  a  residential  condominium  or
  residential  cooperative,  or  class  3  property,  as  such  classes of
  property are defined in subdivision  1  of  section  1802  of  the  real
  property  tax law, shall not be sold by the city unless such tax lien or
  tax liens include a real property tax component as of the  date  of  the
  first  publication,  pursuant to subdivision a of section 11-320 of this
  chapter, of the notice of sale. Notwithstanding any  provision  of  this
  subdivision  to the contrary, any such tax lien or tax liens that remain
  unpaid in whole or in part after such date may  be  sold  regardless  of
  whether  such  tax  lien  or  tax  liens  include  a  real  property tax
  component. A tax lien or tax liens on a property classified as a class 4
  property, as such class of property  is  defined  in  subdivision  1  of
  section 1802 of the real property tax law, shall not be sold by the city
  unless  such tax lien or tax liens include a real property tax component
  or sewer rents component or sewer surcharges component  or  water  rents
  component  as  of  the  date  of  the  first  publication,  pursuant  to
  subdivision a of section 11-320 of this chapter, of the notice of  sale,
  provided,  however, that any tax lien or tax liens that remain unpaid in
  whole or in part after such date may be sold regardless of whether  such
  tax lien or tax liens include a real property tax component, sewer rents
  component,  sewer  surcharges  component  or  water rents component. For
  purposes of this subdivision, the words "real property  tax"  shall  not
  include  an  assessment  or  charge  upon  property  imposed pursuant to
  section 25-411 of the administrative code. A sale of a tax lien  or  tax
  liens  shall  include,  in  addition  to  such  lien  or liens that have
  remained unpaid in whole or in part for one year, or, in the case of any
  class 1 property or class 2 property that is a  residential  condominium
  or residential cooperative, when the real property tax component of such
  lien  or  liens has remained unpaid in whole or in part for three years,
  any taxes, assessments, sewer rents, sewer surcharges, water rents,  any
  other  charges  that  are  made a lien subject to the provisions of this
  chapter, the costs of any advertisements and notices given  pursuant  to
  this  chapter,  any  other charges that are due and payable, a surcharge
  pursuant to section 11-332 of this chapter, and interest  and  penalties
  thereon  or  such component of the amount thereof as shall be determined
  by the commissioner of finance.
    a-1. A subsequent tax lien or tax liens on a property or any component
  of the amount thereof may be sold by the city pursuant to this  chapter,
  provided, however, that notwithstanding any provision in this chapter to
  the  contrary,  such  tax  lien  or  tax liens may be sold regardless of
  whether such tax lien or tax liens have remained unpaid in whole  or  in
  part  for one year and, notwithstanding any provision in this chapter to
  the contrary, in the case of any class 1 property or  class  2  property
  that  is  a residential condominium or residential cooperative, such tax
  lien or tax liens may be sold if the real property tax component of such
  tax lien or tax liens has remained unpaid in whole or in  part  for  one

  year. For purposes of this subdivision, the term "subsequent tax lien or
  tax  liens" shall mean any tax lien or tax liens on property that become
  such on or after the date of sale of any tax lien or tax liens  on  such
  property that have been sold pursuant to this chapter, provided that the
  prior  tax  lien  or tax liens remain unpaid as of the date of the first
  publication, pursuant  to  subdivision  a  of  section  11-320  of  this
  chapter,  of the notice of sale of the subsequent tax lien or tax liens.
  A subsequent tax lien or tax liens on any property classified as a class
  2 property, except a class 2 property that is a residential  condominium
  or  residential  cooperative,  or  class  3 property, as such classes of
  property are defined in subdivision  1  of  section  1802  of  the  real
  property  tax law, shall not be sold by the city unless such tax lien or
  tax liens include a real property tax component as of the  date  of  the
  first  publication,  pursuant to subdivision a of section 11-320 of this
  chapter, of the notice of sale. Notwithstanding any  provision  of  this
  subdivision  to the contrary, any such tax lien or tax liens that remain
  unpaid in whole or in part after such date may  be  sold  regardless  of
  whether  such  tax  lien  or  tax  liens  include  a  real  property tax
  component. A subsequent tax lien or tax liens on a  property  classified
  as  a  class  4  property,  as  such  class  of  property  is defined in
  subdivision 1 of section 1802 of the real property tax law, shall not be
  sold by the city unless such tax  lien  or  tax  liens  include  a  real
  property  tax  component  or  sewer  rents component or sewer surcharges
  component or  water  rents  component  as  of  the  date  of  the  first
  publication,  pursuant  to  subdivision  a  of  section  11-320  of this
  chapter, of the notice of sale, provided, however, that any tax lien  or
  tax  liens that remain unpaid in whole or in part after such date may be
  sold regardless of whether such tax lien or tax  liens  include  a  real
  property   tax   component,  sewer  rents  component,  sewer  surcharges
  component or water rents component. For purposes  of  this  subdivision,
  the  words "real property tax" shall not include an assessment or charge
  upon property imposed pursuant to section 25-411 of  the  administrative
  code.  Nothing  in  this subdivision shall be deemed to limit the rights
  conferred by section 11-332 of this chapter on the holder of a tax  lien
  certificate with respect to a subsequent tax lien.
    b.  The  commissioner  of finance, on behalf of the city, may sell tax
  liens, either  individually,  in  combinations,  or  in  the  aggregate,
  pursuant  to the procedures provided herein. The commissioner of finance
  shall establish the terms and conditions of a sale of a tax lien or  tax
  liens.  Enactment  of  the  local  law that added this sentence shall be
  deemed to constitute authorization by the council for  the  commissioner
  of finance to conduct a sale or sales of tax liens through and including
  August   thirty-first,   two   thousand   six.   Subsequent   to  August
  thirty-first, two thousand six, the city shall not have the authority to
  sell tax liens.
    1. (i) The commissioner of finance may, in his or her discretion, sell
  a tax lien or tax liens through a competitive sale. In addition  to  the
  advertisement  and  notice  required  to be provided pursuant to section
  11-320 of this chapter, the  commissioner  of  finance  or  his  or  her
  designee shall cause to be published a notice of intention to sell a tax
  lien or tax liens through a competitive sale, which notice shall include
  the terms and conditions for such sale, the criteria by which bids shall
  be  evaluated, and a request for any other information or documents that
  the commissioner of finance may require. Such notice shall be  published
  in  one  newspaper  of  general  circulation  in the city, not less than
  fifteen days prior to the date designated by the  commissioner  for  the
  submission of bids.

    (ii)  The  commissioner  of  finance  may,  in  his or her discretion,
  establish criteria for the eligibility of bidders  pursuant  to  section
  11-321.1 of this chapter.
    (iii)  The  commissioner of finance may reject any or all bids, or may
  accept any combination of bids in a competitive sale.
    2. (i) The commissioner of finance may, in his or her discretion, sell
  a tax lien or tax liens through a negotiated sale. In  addition  to  the
  advertisement  and  notice  required  to be provided pursuant to section
  11-320 of this chapter, the  commissioner  of  finance  or  his  or  her
  designee shall cause to be published a notice of intention to sell a tax
  lien  or  tax liens through a negotiated sale, which notice shall advise
  that a request for statements of interest is available at the office  of
  the  department  of finance, and which may require the submission of any
  information  or  documents  that  the  commissioner  deems  appropriate,
  provided,  however,  that  if the negotiated sale is to a trust or other
  entity created by the city or in which the  city  has  an  ownership  or
  residual  interest,  then  the requirement that the notice advise that a
  request for statements of interest is available at  the  office  of  the
  department of finance shall not apply. Such notice shall be published in
  one  newspaper of general circulation in the city, not less than fifteen
  days prior to the date designated by the commissioner for the receipt of
  statements of interest, or if the negotiated sale is to  such  trust  or
  other  entity, then such notice shall be published not less than fifteen
  days prior to the date of sale. For purposes of this  subparagraph,  the
  words "date of sale" shall have the same meaning provided in subdivision
  e of section 11-320 of this chapter.
    (ii)  The  commissioner  of finance may engage in a negotiated sale in
  accordance with criteria to be established pursuant to section  11-321.1
  of this chapter.
    (iii)  The  commissioner  of  finance  may execute a purchase and sale
  agreement and other necessary agreements with a designated purchaser  or
  purchasers to complete a negotiated sale.
    3.  The  commissioner of finance may establish a minimum price for the
  sale of tax liens that may be at a discount from or premium to the  lien
  amount.  Notwithstanding  the  preceding  sentence,  the commissioner of
  finance may not establish a minimum price for the sale of an  individual
  tax lien that is at a discount from the lien amount. The commissioner of
  finance  shall  sell  such  tax  liens  at a purchase price that, in the
  determination of such commissioner, is in  the  best  interests  of  the
  city.  The commissioner of finance, in his or her discretion, may accept
  cash or  cash  equivalent  in  immediately  available  funds,  or  other
  consideration acceptable to the commissioner, or any combination thereof
  in payment for a tax lien or tax liens.
    4.  The  amount  of  a  tax lien that is sold pursuant to this chapter
  shall be the unpaid amount of the lien as of the date of sale, including
  any interest and penalties thereon, any taxes, assessments, sewer rents,
  sewer surcharges, water rents, any other charges that are  made  a  lien
  subject   to   the   provisions  of  this  chapter,  the  costs  of  any
  advertisements and notices given pursuant to  this  chapter,  any  other
  charges  that  are  due  and  payable, any surcharge pursuant to section
  11-332 of this chapter, and interest  and  penalties  thereon,  or  such
  component   of  the  amount  thereof  as  shall  be  determined  by  the
  commissioner of finance, notwithstanding the amount paid for purchase of
  the tax lien or component of the amount thereof. For  purposes  of  this
  paragraph,  the  words,  "date  of  sale"  shall  have  the same meaning
  provided in section 11-320(e) of this chapter.
    5. (i) The commissioner of finance may, subsequent to  the  offer  for
  sale of any tax lien or tax liens and the failure to complete such sale,

  offer  such  tax lien or tax liens for sale again to any other person or
  persons who satisfied the terms  and  conditions  of  the  sale  without
  providing  any  additional  advertisements  or  notices pursuant to this
  chapter.
    (ii)  Notwithstanding subparagraph (i) of this paragraph, any tax lien
  that was noticed for sale pursuant to this chapter, but was not sold  on
  the   original  date  of  sale,  may  be  sold  without  any  additional
  advertisements or notices pursuant to this  chapter  if  the  subsequent
  date of sale is within six months of the second publication, pursuant to
  subdivision  a  of  section 11-320 of this chapter, of the notice of the
  original date of sale. If the subsequent date of sale is more  than  six
  months  after  the  second  publication,  pursuant  to  subdivision a of
  section 11-320 of this chapter, of the notice of the  original  date  of
  sale,  then  the  commissioner of finance, or his or her designee, shall
  provide notice of the subsequent date of sale pursuant to subdivision  b
  of section 11-320 of this chapter. No other additional advertisements or
  notices shall be necessary prior to the date of sale.
    6.  The rate of interest on any tax lien certificate shall be the rate
  fixed pursuant to section 11-224(g) of the code on the effective date of
  the local law that added this sentence.
    7. It is the intent of the city that a sale of a tax lien or tax liens
  pursuant to this chapter shall be a sale and not a borrowing.
    8. Whenever any tax lien purchased at a tax lien sale is found  to  be
  invalid, void or defective in whole or in part, or not to conform to any
  representation   or   warranty   with   respect  thereto,  made  by  the
  commissioner of finance in connection with the sale thereof, by judgment
  or decree of a court of competent jurisdiction or  by  determination  of
  the  commissioner of finance, the commissioner of finance may, in his or
  her discretion, substitute for such tax lien or portion thereof  another
  tax  lien  that  has  a value equivalent to the value of the tax lien or
  portion thereof found to be invalid,  void,  defective,  or  not  to  so
  conform,  or  may  refund  such value of the tax lien or portion thereof
  found to be invalid, void, defective, or not to so conform, or may use a
  combination of  substitution  and  refund.  No  other  remedy  shall  be
  available  to  a  purchaser  of a tax lien which is found to be invalid,
  void, defective, or not to conform to a representation or warranty  with
  respect  thereto  made by the commissioner of finance in connection with
  the sale thereof, in whole or in part.  Whenever  a  tax  lien  of  such
  equivalent value is to be substituted for a tax lien that has been found
  invalid,  void,  defective,  or  not to so conform, in whole or in part,
  pursuant to this section, the commissioner of  finance  or  his  or  her
  designee shall provide mailed notice of the intention to substitute such
  lien  of  such  equivalent  value  to any person required to be notified
  pursuant to section 11-320(b) of this chapter.
    9. The commissioner  of  finance  may  establish  requirements  for  a
  purchaser  of  a  tax lien to provide any information and documents that
  the commissioner  of  finance  deems  necessary,  including  information
  concerning the collection and enforcement of tax liens.
    10. Any tax lien or tax liens on property owned by a company organized
  pursuant to article XI of the state private housing finance law with the
  consent  and  approval  of  the  department  of housing preservation and
  development that are sold pursuant  to  this  chapter  shall  be  deemed
  defective.  For  the  purposes of this paragraph, property owned by such
  company shall be limited to property owned for the purpose, as set forth
  in section five hundred seventy-one of the state private housing finance
  law, of providing housing for families and persons of low income.