US Laws, Codes, Statutes & Cases

 
    §  11-412.1  Special procedures relating to final judgment and release
  of class one and class two  real  property.  Notwithstanding  any  other
  provision of law to the contrary:
    a.  The court shall determine upon proof and shall make a finding upon
  such proof whether there has been due compliance by the  city  with  the
  applicable provisions of this chapter.
    b.  (1) The court shall make a final judgment authorizing the award of
  possession of any parcel  of  class  one  or  class  two  real  property
  described  in  the list of delinquent taxes not redeemed or withdrawn as
  provided in this chapter and as to which  no  answer  is  interposed  as
  provided herein, and authorizing the commissioner of finance to prepare,
  execute  and cause to be recorded a deed conveying either to the city or
  to a third party deemed qualified and designated by the commissioner  of
  housing  preservation  and  development  full and complete title to such
  lands. Any such conveyance to a third party shall  be  for  an  existing
  use.
    (2) Such third party shall be deemed qualified and shall be designated
  pursuant to such criteria as are established in rules promulgated by the
  commissioner of housing preservation and development, provided, however,
  that  such  criteria  shall  include  but not be limited to: residential
  management experience;  financial  ability;  rehabilitation  experience;
  ability   to   work   with   government   and  community  organizations;
  neighborhood ties; and that the commissioner shall consider whether  the
  third  party  is a responsible legal tenant, not-for-profit organization
  or  neighborhood-based-for-profit  individual   or   organization.   The
  commissioner  shall  not  deem  qualified  any  third party who has been
  finally adjudicated by a court of competent jurisdiction,  within  seven
  years  of  the  date on which such third party would otherwise be deemed
  qualified, to have violated any section of articles one  hundred  fifty,
  one  hundred  seventy-five, one hundred seventy-six, one hundred eighty,
  one hundred eighty-five or two hundred of the penal law or  any  similar
  laws of another jurisdiction, or who has been suspended or debarred from
  contracting  with the city or any agency of the city pursuant to section
  335 of the charter during the period of such  suspension  or  debarment.
  The rules promulgated by the commissioner pursuant to this paragraph may
  establish other bases for disqualification of a third party.
    c.  Following  the  expiration  of the four-month period prescribed in
  subdivision d of this section, but not more than eight months after  the
  date  on  which,  pursuant  to  subdivision b of this section, the final
  judgment authorizing the award of possession of a parcel of class one or
  class two real property was entered, the  commissioner  of  finance  may
  execute  a deed, pursuant to subdivision b of this section, with respect
  to such parcel. The owner of said parcel shall continue to have  all  of
  the  rights, liabilities, responsibilities, duties and obligations of an
  owner of such parcel, including, but not limited  to,  maintaining  such
  parcel  in  compliance  with  the housing maintenance, building and fire
  codes, and all other applicable laws, unless and until the  commissioner
  of  finance has prepared and executed a deed conveying to the city or to
  a third party full and complete title to such parcel. Upon the execution
  of such deed, the city or the third party shall be seized of  an  estate
  in fee simple absolute in such land and all persons, including the state
  of  New York, infants, incompetents, absentees and non-residents who may
  have had any right, title, interest, claim, lien or equity of redemption
  in or upon such lands shall be barred and forever foreclosed of all such
  right, title, interest, claim, lien or equity of redemption,  except  as
  otherwise  provided  in  subdivisions  e  and  f  of  this  section. The
  appointment and tenure of receivers,  trustees  or  any  other  persons,
  including  administrators  under  article  seven-A  of the real property

  actions and proceedings law, appointed by an order of a court to  manage
  real  property, shall terminate when title to such property vests in the
  city or a third party pursuant to the provisions of this chapter.  After
  such  termination,  said  receivers, trustees or administrators shall be
  accountable  to  the  courts  that  appointed  them  for  the   faithful
  performance  of  their  fiduciary  obligations  during the term of their
  appointment and to the city or such third party for any rents and income
  received by them for any period subsequent to the date of the vesting of
  title in the city or such third party.
    If the city serves a tenant in possession  of  a  dwelling  unit  with
  notice  of  termination  of  tenancy on grounds other than nonpayment of
  rent, the acceptance  of  rent  for  the  first  forty-five  days  after
  termination  of  tenancy  by  anyone  other  than  an  employee  of  the
  department designated by the department to receive such rent  shall  not
  be  deemed  or construed as a waiver of the city's right to initiate and
  prosecute a proceeding to terminate the tenancy for good cause.
    d. Within four months after the date on which, pursuant to subdivision
  b  of  this  section,  the  final  judgment  authorizing  the  award  of
  possession  of  a  parcel  of  class  one or class two real property was
  entered, any person claiming to have an interest in  such  parcel  shall
  have  the  right  to  make  a  payment  to  the  commissioner of finance
  consisting of all taxes, assessments and other legal  charges  owing  on
  said  parcel,  the  lawful interest thereon to the date of payment and a
  penalty of five percent of said payment of taxes, assessments and  other
  legal  charges  and  interest, which penalty may not exceed one thousand
  dollars. Such payment shall be made in cash  or  by  certified  or  bank
  check.  Within  such  four-month period, such interested person may also
  request an installment agreement from the commissioner of finance.  Such
  agreement  shall  require,  in  addition  to full payment of the penalty
  specified in this subdivision at the  time  such  agreement  is  entered
  into,  the  payment  at  such time of a first installment equal to fifty
  percent of all taxes, assessments  and  other  legal  charges,  and  the
  lawful  interest  thereon, then owing on such parcel, and the payment of
  the balance of such taxes,  assessments  and  other  legal  charges  and
  interest  in four equal quarterly installments together with all current
  taxes, assessments and other  legal  charges  that  accrue  during  such
  period.  Upon  receipt of payment in full of the amount specified in the
  first sentence of this subdivision, the commissioner  of  finance  shall
  direct  the  corporation  counsel  to prepare and cause to be entered an
  order discontinuing the  in  rem  tax  foreclosure  action  as  to  said
  property,  cancelling  the  notice of pendency of such action as to said
  property and vacating and setting aside the  final  judgment.  Upon  the
  execution  of an installment agreement and payment of the amounts due at
  the time such agreement is executed as provided in this subdivision, the
  commissioner of finance shall direct the corporation counsel to  prepare
  and  cause  to  be entered an order vacating and setting aside the final
  judgment. The entry of either such  order  shall  restore  all  parties,
  including  owners,  mortgagees  and  any  and all lienors, receivers and
  administrators and encumbrancers, to the status  they  held  immediately
  before  such  final  judgment  was  entered.   Where the commissioner of
  finance approves an  application  requesting  an  installment  agreement
  pursuant  to  this subdivision, the order vacating and setting aside the
  final judgment shall provide that in the event of any default as to  the
  payment  of  either quarterly installments or current taxes, assessments
  or other legal charges during the term of such agreement,  all  payments
  under  said  agreement  shall  be forfeited and the corporation counsel,
  immediately upon notification by the commissioner  of  finance  of  such
  default,  shall  cause  to be entered as to such property a supplemental

  judgment of foreclosure in  the  in  rem  action  which  authorizes  the
  commissioner  of  finance to prepare, execute and cause to be recorded a
  deed conveying either to the city or to a third party full and  complete
  title  to  such lands. Upon the entry of such supplemental judgment, the
  provisions of subdivisions c through i of this section  shall  apply  in
  the  same  manner as such subdivisions would have applied had no payment
  been made nor  installment  agreement  executed  during  the  four-month
  period specified in this subdivision.
    e. 1. If the commissioner of finance has prepared, executed and caused
  to be recorded a deed conveying to the city full and complete title to a
  parcel  of  class  one or class two real property acquired by in rem tax
  foreclosure, the city's interest in such parcel may be released pursuant
  to this subdivision on the application of any party who has an  interest
  in  said  parcel  as either owner, mortgagee, lienor, or encumbrancer at
  the time of the city's acquisition thereof  where  such  application  is
  made at any time up to sixteen months from the date on which the deed by
  which the city acquired title to said parcel was recorded.
    2.  Any  such application shall be made in writing to the commissioner
  of general  services  and  shall  be  verified.  It  shall  contain  the
  information  required  pursuant  to  paragraph  one  of subdivision b of
  section 11-424 of this chapter, the documents required by subdivision  c
  of  such  section,  and  shall  be  accompanied  by the fees required by
  paragraphs three and six of subdivision  b  of  such  section.  The  fee
  required  by  paragraph three of subdivision b of section 11-424 of this
  chapter shall not be refundable.
    3. The city's interest in any such parcel shall be released only after
  payment of the sums of money  specified  in  subdivision  d  of  section
  11-424 of this chapter.
    4. The provisions contained in subdivision g of section 11-424 of this
  chapter shall govern such an application, except as follows:
    (a)  where  such  provisions  are  inconsistent  with  the  provisions
  contained  in  this  subdivision,  the  provisions  contained  in   this
  subdivision shall govern such application; and
    (b)  where  the  in  rem  foreclosure  release  board denies a written
  request for an installment agreement that was filed in  connection  with
  an  application  for release of the city's interest in a parcel of class
  one or class two real property and such  application  was  filed  within
  thirty days of the date of the city's acquisition of the property sought
  to be released, the board may, in its discretion, authorize a release of
  the city's interest, provided that the applicant thereafter pays all the
  amounts  required to be paid pursuant to subdivision d of section 11-424
  of this chapter within thirty  days  of  the  date  on  which  a  letter
  requesting such payment is mailed or delivered to such applicant.
    5.  Upon  receipt  of  all the amounts required to be paid pursuant to
  this  subdivision,  the  commissioner  of  finance  shall   direct   the
  corporation  counsel  to  prepare  and  cause  to  be  entered  an order
  discontinuing the in rem tax foreclosure action  as  to  said  property,
  cancelling the notice of pendency of such action as to said property and
  vacating  and  setting  aside  the  final  judgment  entered pursuant to
  subdivision b of  this  section  and  the  deed  executed  and  recorded
  pursuant  to  such final judgment as to said property. The entry of such
  order shall restore all parties, including owners,  mortgagees  and  any
  and  all lienors, receivers and administrators and encumbrancers, to the
  status they held immediately before the final judgment was  entered,  as
  if  the  in  rem tax foreclosure had never taken place, and shall render
  said property liable for all taxes, deficiencies,  management  fees  and
  liens which shall accrue subsequent to those paid in order to obtain the

  release  provided  for  in this subdivision, or which were, for whatever
  reason, omitted from the payment made to obtain said release.
    f. If the commissioner of finance has prepared, executed and caused to
  be  recorded  a  deed conveying to the city full and complete title to a
  parcel of class one or class two real property acquired by  in  rem  tax
  foreclosure and such parcel is entitled to an exemption under any of the
  provisions  of  article  four of the real property tax law during all or
  part of the period covered by the tax  items  appearing  on  a  list  of
  delinquent  taxes,  the  owner of such parcel may apply for a release of
  the city's interest in such exempt  property  under  the  provisions  of
  subdivision  e  of  this  section during the period of time set forth in
  paragraph one of such subdivision and for an additional period up to ten
  years from the date on which the deed by which the city  acquired  title
  to  said  property  was recorded. The application of such owner shall be
  accompanied by the nonrefundable  fee  required  by  paragraph  four  of
  subdivision  b  of  section 11-424 of this chapter and shall contain, in
  addition to the statements, searches and proofs required by  subdivision
  e of this section, a statement that an exemption under the real property
  tax  law is being claimed. Such application shall also state either that
  it is accompanied by the written certificate of the comptroller  setting
  forth the precise period during which said property, while owned by such
  application,  and  during  the period after the city's acquisition up to
  the date of the certificate if said property was still being used for an
  exempt purpose after said acquisition, was entitled to an exemption  and
  the exact nature and extent of such exemption or that an application for
  such written certificate has been filed with the comptroller. On issuing
  such  written  certificate, the comptroller shall cancel those tax items
  which have accrued during the period covered by the certificate  to  the
  extent  the  applicant  is  entitled to an exemption as set forth in the
  certificate. A release of the city's interest may be authorized only  at
  the  discretion  of  the in rem foreclosure release board and, except as
  otherwise provided in paragraph four of subdivision e of  this  section,
  subject  to  all  the restrictions set forth in subdivision g of section
  11-424 of this chapter. A  release  to  an  exempt  applicant  shall  be
  effected  only after said applicant has paid all of the amounts required
  to be paid by subdivision d of section 11-424 of  this  chapter,  except
  for  those  tax  items  which  have  been canceled, in whole or in part,
  pursuant to the comptroller's certificate, within  thirty  days  of  the
  date  on  which  the letter requesting payment is mailed or delivered to
  the applicant.
    g. If the commissioner of finance has prepared, executed and caused to
  be recorded a deed conveying to the city or to a third  party  full  and
  complete  title  to  a  parcel  of  class one or class two real property
  acquired  by  in  rem  tax  foreclosure,  the  provisions  contained  in
  subdivisions  f  and i of section 11-424 of this chapter for the release
  of property so acquired shall not be available. If the  commissioner  of
  finance  has  prepared,  executed  and  caused  to  be  recorded  a deed
  conveying to a third party full and complete title to a parcel of  class
  one  or  class two real property acquired by in rem tax foreclosure, the
  provisions contained in subdivisions e and f of  this  section  for  the
  release of property so acquired shall not be available.
    h.  Every  deed given pursuant to the provisions of this section shall
  be presumptive evidence that the action and all proceedings therein  and
  all  proceedings  prior thereto from and including the assessment of the
  lands affected and all notices required  by  law  were  regular  and  in
  accordance  with  all  provisions  of  law  relating thereto. After four
  months from the date of entry of  the  final  judgment  authorizing  the
  award  of  possession  of  any  parcel  of  class  one or class two real

  property pursuant to the provisions of  this  section,  the  presumption
  shall  be conclusive. No action to set aside such deed may be maintained
  unless the action is commenced and a notice of pendency of the action is
  filed  in the office of the property county clerk prior to the time that
  the presumption becomes conclusive as aforesaid. Should any  lawsuit  or
  proceeding be commenced to set aside a deed conveying to a third party a
  parcel  of  class  one  or  class  two  real  property  pursuant  to the
  provisions  of  this  section,  such  third  party  shall  send  to  the
  corporation  counsel  within  ten  days  of  their receipt a copy of any
  papers served on such third party in such lawsuit or proceeding.
    i. If the commissioner of finance does not execute a deed conveying to
  the city or to a third party a parcel of class one  or  class  two  real
  property   within  eight  months  after  the  entry  of  final  judgment
  authorizing  the  award  of  possession  of  such  parcel  pursuant   to
  subdivision  b of this section, the commissioner of finance shall direct
  the corporation counsel to prepare and cause  to  be  entered  an  order
  discontinuing  the  in  rem  foreclosure  action  as  to  said property,
  canceling the notice of pendency of such action as to said property  and
  vacating  and setting aside said final judgment. The entry of such order
  shall restore all parties, including owners, mortgagees and any and  all
  lienors,  receivers  and administrators and encumbrancers, to the status
  they held immediately before such final judgment was entered.
    j. If the commissioner of finance  directs  the  corporation  counsel,
  pursuant  to  subdivision  i of this section, to prepare and cause to be
  entered an order  discontinuing  the  in  rem  foreclosure  action  with
  respect  to  a parcel of class one or class two real property determined
  to be distressed pursuant to  section  11-401.1  of  this  chapter,  the
  commissioner  of housing preservation and development shall evaluate the
  parcel determined to be distressed and take such action  as  he  or  she
  deems  appropriate  under  the  programs,  existing  at the time of such
  evaluation, that  are  designed  to  encourage  the  rehabilitation  and
  preservation  of  existing  housing,  and  shall  monitor or cause to be
  monitored the status  of  the  property.  The  commissioner  of  housing
  preservation  and  development  shall  maintain a register of properties
  determined to be distressed.