US Laws, Codes, Statutes & Cases

 
    §  11-424  Application to the city for release of property acquired by
  in rem tax foreclosure. a. (1) The city's interest in property  acquired
  by  in  rem  tax foreclosure may be released pursuant to this section on
  the application of any party who had an interest  in  said  property  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 two years from the date on which the deed by which the city  acquired
  title to said property was recorded.
    (2)  Notwithstanding  any  inconsistent  provision of paragraph one of
  this subdivision to  the  contrary,  the  city's  interest  in  property
  acquired  by  in  rem  tax  foreclosure may be released pursuant to this
  section upon application of any  party  who  had  an  interest  in  said
  property  as either owner, mortgagee, lienor or encumbrancer at the time
  of the city's acquisition thereof where such application  is  made  more
  than  two  years  after  the  date  on  which the deed by which the city
  acquired title to said property was recorded provided  such  application
  is authorized by the council as hereinafter provided. An application for
  such  release  and  the  documents  required by subdivision c in support
  thereof shall be filed with the department  of  citywide  administrative
  services  in  the  manner provided in subdivision b of this section. The
  department of citywide administrative services shall  give  the  council
  written  notice  of  the  receipt  of each such filing. After review and
  approval of the application by the corporation counsel as  to  form  and
  eligibility  of the applicant, the department of citywide administrative
  services shall send a copy of such application to the in rem foreclosure
  release board and to the council. Upon receipt of such application,  the
  in  rem  foreclosure  release board shall take no further action on such
  application unless the council adopts a resolution  within  one  hundred
  twenty  days  following  the  first  stated meeting of the council after
  receipt of such application  authorizing  the  board  to  consider  such
  application.  If  the  council  fails  to adopt a resolution within such
  one-hundred-twenty-day period, the  council  shall  be  deemed  to  have
  denied  its  authorization for the board to consider such application. A
  resolution of the council pursuant to this paragraph shall describe  the
  property  for which release is sought by borough, tax map, block and lot
  number and shall specify that release of the  city's  interest  in  such
  property  is  subject  to the approval of the in rem foreclosure release
  board and to all the conditions  and  restrictions  set  forth  in  this
  section.
    b.   1.  Any  such  application  shall  be  made  in  writing  to  the
  commissioner of citywide administrative services and shall be  verified.
  It  shall  contain the name and address of the applicant and shall state
  the date on which and the in rem action by which the city acquired title
  to the property sought to be released. It shall also contain a statement
  specifying the nature of the applicant's interest in the property and  a
  full  description  of the instrument from which the applicant's interest
  derives including the date of execution,  the  date  and  place  of  the
  recording  or  entry  of said instrument and the parties thereto. In the
  event the applicant's interest arises by reason of the death of a  prior
  owner,  mortgagee,  lienor  or  encumbrancer, then the application shall
  also state the applicant's  relationship  to  said  decedent  and  shall
  include  whatever  additional  information may be necessary to prove the
  applicant's right to make such application.
    2. A fee of two hundred seventy-five dollars  shall  be  paid  on  the
  submission of any such application which is subject to the provisions of
  subdivision  f  of  this  section,  except  that  the  fee  for any such
  application for the release of property improved by a one or  two-family
  dwelling shall be one hundred dollars.

    3. A fee of five hundred fifty dollars shall be paid on the submission
  of   any  such  application  which  is  subject  to  the  provisions  of
  subdivision g of  this  section,  except  that  the  fee  for  any  such
  application  for the release of property improved by a one or two-family
  dwelling shall be one hundred dollars.
    4.  A  fee  of  two  hundred seventy-five dollars shall be paid on the
  submission of any such application which is subject to the provisions of
  subdivision h of this section within four months from the date on  which
  the  deed  by  which the city acquired title to the subject property was
  recorded, and a fee of five hundred and fifty dollars shall be  paid  on
  the  submission  of  any  such  application  which  is  subject  to  the
  provisions of such subdivision not within four months  from  such  date;
  except  that  the  fee  for any such application which is subject to the
  provisions of such subdivision for the release of property improved by a
  one or two-family dwelling shall be one hundred dollars.
    5. The fees payable pursuant to paragraphs two, three and four of this
  subdivision shall not be refundable.
    6. In addition to the fees specified in paragraphs two, three and four
  of this subdivision, there shall  be  paid  on  the  submission  of  any
  application which is subject to this section an amount at least equal to
  the lesser of nine hundred dollars or the sum specified in paragraph one
  of  subdivision d of this section, which amount shall not be refundable,
  but shall be applied in reduction of the sum specified in paragraph  one
  of  subdivision  d of this section; provided, however, that if a release
  requires the authorization of the in rem foreclosure release board,  and
  such  authorization  is  not  given,  such  additional  amount  shall be
  refunded to the applicant.
    c. Each application shall be supported by the certified search of  the
  city  register or by an official letter, certificate or certified search
  of any title insurance or abstract company, organized and doing business
  under the laws of this state. Such supporting instruments  shall  recite
  the  recording data both as to the deed by which the city acquired title
  to the parcel sought to be released and the instrument  from  which  the
  applicant's interest derives. In the event the applicant's interest does
  not appear of record but is derived by the death of an owner, mortgagee,
  lienor  or  encumbrancer  of  record, then the application shall also be
  supported by the affidavit of  the  applicant  or  other  person  having
  information thereof, or by the duly written certificate or certification
  of  the  county  clerk or the clerk of any surrogate's or other court of
  record,  or  by  any  other  instrument  or  document  required  by  the
  corporation  counsel  to substantiate the applicant's right to file such
  application in compliance with the provisions of this section.
    d. The city's interest shall be released only  after  payment,  as  to
  each parcel to be released, of the following sums of money:
    1.  The  principal  amount due on all unpaid taxes, assessments, water
  charges and sewer rents appearing on the list of  delinquent  taxes  and
  accruing thereafter together with interest at the rate or rates provided
  by law.
    2. Five percent of the amount paid pursuant to the preceding paragraph
  but not exceeding one thousand dollars for each parcel.
    3. Any deficiency which may result to the city after all payments made
  by  it  for  the  repair,  maintenance, and operation of the lands, real
  estate or real property shall  have  been  charged  or  debited  in  the
  appropriate  accounts  of the city and all rents, license fees and other
  moneys collected by the city as a result of its operation  of  the  said
  lands,  real  estate  or  real property shall have been credited in such
  accounts. Any contract for repair, maintenance, management or  operation
  made  by  the city on which it shall be liable, although payment thereon

  shall not have been made, shall be deemed a  charge  or  debit  to  such
  accounts as though payment had been made. The amounts paid and collected
  by  the  city  as shown in its accounts and the necessity for making the
  several payments and contracts to be charged as herein provided shall be
  conclusive upon the applicant. Where a deficiency under this subdivision
  shall  be  created  or  increased  by the failure of the city to collect
  rents, license fees or other moneys to which  the  city  may  have  been
  entitled,  the right to collect or to bring action for the same shall be
  assigned, transferred and set over to the applicant by an instrument  in
  writing.
    4.  Any  and all costs and disbursements which shall have been awarded
  to the city or to which it may have become entitled by operation of  law
  or  which  it  may  have paid or become liable for payment in connection
  with any litigation between it and the applicant or any person having an
  estate or interest in the lands, real estate  or  real  property  to  be
  released resulting directly or indirectly from the foreclosure by action
  in rem of the delinquent taxes affecting said lands, real estate or real
  property.
    5.  A reasonable monthly fee to be determined by the city, through the
  department of citywide administrative services, for management  services
  and  operations  of  the lands, real estate or real property by the city
  prior to the release of said lands, real estate or property.
    6.  The  city,  through  the  department  of  citywide  administrative
  services,  shall  also  require  as  additional  consideration  for such
  release, the payment of all arrears on mortgages held by  the  city  and
  all  liens  accruing to it by operation of law including but not limited
  to relocation and emergency repair liens.
    e. The corporation counsel shall effect  the  release  of  the  city's
  interest in property acquired by in rem tax foreclosure, as provided for
  in  this  section,  by  preparing  and  causing  to  be entered an order
  discontinuing the in rem tax forclosure  action  as  to  said  property,
  cancelling the notice of pendency of such action as to said property and
  vacating  and  setting  aside the in rem judgment of foreclosure and the
  deed executed and recorded pursuant to such judgment of  foreclosure  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 at the time
  the city acquired  title  to  said  property,  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  section, or which were, for whatever reason, omitted from
  the payment made to obtain said release.
    f. If an application pursuant  to  this  section,  and  the  documents
  required  by subdivision c of this section in support thereof, are filed
  within four months after the date  of  the  city's  acquisition  of  the
  subject  property,  said  application  shall  be  granted  providing the
  corporation counsel approves the application as to form, timeliness  and
  eligibility  of  the  applicant and providing the applicant has paid all
  amounts required to be paid by subdivision  d  of  this  section  within
  thirty  days  of the date on which a letter requesting applicant to make
  such payment is mailed or delivered to the applicant. The city shall not
  sell or assign any property acquired by in rem  tax  foreclosure  within
  four months of said acquisition but this provision shall not prevent the
  city  from  authorizing  condemnation  of such property or vesting title
  thereto in a condemnation proceeding during said four month  period.  In
  the  event  an application pursuant to this section is filed within four
  months of the city's acquisition by in rem tax foreclosure and title  to

  the  subject  property  vests in condemnation before the city's interest
  therein has been released by the vacate order provided for  herein,  the
  applicant  shall be entitled to the condemnation award for such property
  without  the  entry  of  such  vacate  order,  providing the corporation
  counsel has approved the application as aforesaid and providing that the
  amounts specified in subdivision d of this section,  if  not  previously
  paid,  are deducted from said condemnation award, with taxes apportioned
  to the date of the condemnation title vesting.
    g. If an application for a release of the city's interest in  property
  acquired  by  in  rem  tax  foreclosure,  and  the documents required by
  subdivision c of this section in support thereof, have been filed within
  the time allowed in paragraph one of subdivision a of this section,  but
  more  than four months after the date of the city's acquisition or if an
  application for such release has been authorized by a resolution of  the
  council  pursuant  to paragraph two of subdivision a of this section and
  such application and the documents required by  subdivision  c  of  this
  section  in  support  thereof  have  been  filed, the in rem foreclosure
  release board may, in its  discretion,  authorize  the  release  of  the
  city's interest in said property pursuant to this section, provided that
  the application has been approved by the corporation counsel as to form,
  timeliness  and  eligibility of the applicant and provided that the city
  has not sold or  otherwise  disposed  of  said  property  and  provided,
  further,  that  said  property has not been condemned or assigned to any
  agency of the city and is not the subject of contemplated  use  for  any
  capital  or  urban  renewal project of the city. The corporation counsel
  shall effect such discretionary release only where the applicant,  after
  the  board's  authorization  of  the  release,  has paid all the amounts
  required to be paid by subdivision d of this section within thirty  days
  of  the  date  on  which  a letter requesting the applicant to make such
  payment is mailed or delivered to the applicant. The in rem  foreclosure
  release  board  may  also, in its discretion, authorize a release of the
  city's interest in such property,  pursuant  to  the  above  provisions,
  whenever   an  application  for  such  release,  approved  as  to  form,
  timeliness and eligibility by the corporation counsel, has been filed at
  any time during the period allowed in subdivision a of this  section  in
  which  the  applicant  has  requested  an  installment  agreement of the
  commissioner of citywide administrative services for the payment of  the
  amounts  required  to  be paid by subdivision d of this section provided
  that said commissioner has approved such request.  The  commissioner  of
  citywide  administrative  services  shall  not  approve any such request
  unless the applicant shall have given notice by certified mail  to  each
  tenant  located  on the parcel, of the request and shall have given such
  commissioner an affidavit stating that such notice  has  been  provided,
  within  thirty  days  after  the  request.  Any  false statement in such
  affidavit shall not in any way affect the validity of the agreement,  be
  grounds  for  its  cancellation  or in any way affect the release of the
  city's interest in the parcel. Such agreement shall require, in addition
  to full payment of the amounts due under paragraphs  two,  three,  four,
  five  and  six  of subdivision d of this section, a first installment of
  fifty percent of the amount due under paragraph one of said  subdivision
  d  with  the  balance  of said amount to be paid in four equal quarterly
  installments together with all current taxes, assessments or other legal
  charges that accrue during such period;  provided,  however,  that:  (i)
  whenever  a  request  for  an  installment  agreement  is  made  of  the
  commissioner of citywide administrative services by a company  organized
  pursuant  to  article  XI  of  the  private housing finance law with the
  consent and approval of  the  department  of  housing  preservation  and
  development  or  for  a  parcel  which  is an owner-occupied residential

  building of not more than five residential units,  the  commissioner  of
  citywide  administrative services may, as to that portion of the amounts
  due under paragraph one of subdivision d of this  section  which  became
  due  prior  to the acquisition by the article XI company of its interest
  in the property and  as  to  the  amount  due  under  paragraph  one  of
  subdivision  d  of  this  section  in the case of such an owner-occupied
  building, approve a reduction of such first installment to an amount not
  less than  ten  percent  of  the  amount  due  under  paragraph  one  of
  subdivision  d  of  this  section  and  an increase in the number of the
  following equal quarterly installments to a number which shall be  equal
  to three times the number of unpaid quarters of real estate taxes or the
  equivalent  thereof  but which shall in no event exceed forty-eight, and
  (ii) notwithstanding  the  preceding  clause,  whenever  an  installment
  agreement  is  requested on or after the date on which this clause takes
  effect with respect to a parcel that, immediately prior  to  the  city's
  acquisition  thereof  by  in rem tax foreclosure, was 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, or with respect to  a  parcel  that  is  a
  residential  building containing not more than five residential units, a
  residential condominium  unit  or  a  residential  building  held  in  a
  cooperative form of ownership, the commissioner of general services may,
  as  to  the  amount  due  under  paragraph  one of subdivision d of this
  section, approve an installment agreement containing the terms  relating
  to  the  required  percentage  payment for the first installment and the
  required number of subsequent  quarterly  installments,  that  would  be
  applicable to such parcel under paragraph two (but without regard to any
  reference therein to paragraph three) of subdivision i of section 11-409
  of  this  chapter.  For  purposes  of  calculating  the  number  of such
  following equal quarterly installments, unpaid real estate taxes or  the
  equivalent  which  are,  on  and  after  July  first,  nineteen  hundred
  eighty-two, due and payable on an other than quarterly  basis  shall  be
  deemed  to be payable on a quarterly basis. Where the in rem foreclosure
  release board denies an application requesting an installment  agreement
  the  board  shall  authorize  a release of the city's interest, provided
  that the applicant thereafter pays all the amounts required to  be  paid
  by subdivision d of this section within thirty days of the date on which
  a letter requesting such payment is mailed or delivered to the applicant
  only  when  said application and the documents required by subdivision c
  of this section in support thereof were filed within thirty days of  the
  date  of  the  city's acquisition of the property sought to be released.
  Where the  in  rem  foreclosure  release  board  denies  an  application
  requesting  an  installment  agreement  which was filed more than thirty
  days after the date of the city's acquisition, 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  by
  subdivision  d of this section within thirty days of the date on which a
  letter requesting such payment is mailed or delivered to the  applicant.
  Where  the  in  rem  foreclosure  release  board approves an application
  requesting an installment agreement,  the  order  releasing  the  city's
  interest  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, as set forth
  in the board's resolution, all payments made under said agreement  shall
  be forfeited and the city shall be entitled to reacquire the property so
  released.  The  corporation  counsel  shall effect such reacquisition by
  causing to be entered as to such property  a  supplemental  judgment  of
  foreclosure  in  the in rem action by which said property was originally

  acquired immediately on notification by the commissioner of  finance  of
  such default.
    h.  An  owner  of  property  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 may apply for a release of the city's interest in  such
  exempt  property under the provisions of this section during the periods
  of time set forth herein and for an additional period up  to  ten  years
  from  the  date  of  the  city's  acquisition of said property by in rem
  foreclosure. The application of such owner shall contain, in addition to
  the  statements,  searches  and  proofs  required  by  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 applicant, 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.  Where an application by an exempt owner is filed more than
  four months after the date of the  city's  acquisition  of  the  subject
  property,  a  release  of  the city's interest may be issued only at the
  discretion of the in rem foreclosure release board and  subject  to  all
  the restrictions set forth in the preceding subdivision. A release to an
  exempt  applicant  shall  be effected only after said applicant has paid
  all the amounts required to be paid by subdivision d  of  this  section,
  except  for  those  tax  items which have been cancelled, in whole or in
  part, pursuant to the comptroller's certificate, within thirty  days  of
  the  date on which a letter requesting payment is mailed or delivered to
  the applicant.
    i. The corporation counsel shall also effect the release of the city's
  interest in property acquired by in rem foreclosure, as provided for  in
  this action, whenever the commissioner of finance shall accept as to any
  parcel  so  acquired,  the  payment  provided  for  in  paragraph two of
  subdivision a of section 11-413 of this chapter. Said  commissioner  may
  accept  such  payment  at any time within four months of the date of the
  city's acquisition and may further, subject to the approval  of  the  in
  rem foreclosure release board, accept such payment at any time more than
  four  months  after the date of the city's acquisition but less than two
  years from the date on which the city's deed was recorded providing said
  property has not been sold or otherwise disposed  of  nor  condemned  or
  assigned  to  any  agency  of  the  city  and  is  not  the  subject  of
  contemplated use of any capital or urban renewal project of the city.