STATE OF NEW YORK ________________________________________________________________________ 4094 2017-2018 Regular Sessions IN ASSEMBLY February 1, 2017 ___________ Introduced by M. of A. HOOPER -- read once and referred to the Committee on Local Governments AN ACT to amend the county law and the New York state urban development corporation act, in relation to creating land banks for the acquisi- tion, management, planning and reuse of vacant and abandoned property The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The county law is amended by adding a new section 55 to 2 read as follows: 3 § 55. Authorization to create a land bank. 1. As used in this section, 4 a "land bank" is a public corporation established to assist or engage in 5 the process of the effective conversion of vacant, abandoned and tax- 6 delinquent properties to productive use. Vacant and/or abandoned proper- 7 ty shall be deemed to be residential, commercial, and industrial build- 8 ings and empty lots that either threaten public safety including public 9 nuisances; and/or have been subject to the neglect of fundamental duties 10 of property ownership including, but not limited to, failure to pay 11 taxes or utility bills, defaults on mortgages, and liens against proper- 12 ty. Such process may, consistent with municipal land use and strategic 13 plans include, but need not be limited to, acquisition of land, leasing 14 and sales of land and structures, expedited foreclosure and title clear- 15 ance, administration, inventory and assessment of existing parcels and 16 structures, planning for reuse consistent with local plans and reinvest- 17 ment strategies, property maintenance, rehabilitation and management, 18 demolition, disassembly and salvage and providing for assistance for 19 nonprofit organizations involved in the rehabilitation and redevelopment 20 of properties. 21 2. The legislative body of any county may adopt a resolution calling 22 upon the state urban development corporation to establish a subsidiary 23 corporation to perform the functions of a land bank pursuant to section 24 twelve of the New York state urban development corporation act. When EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08742-01-7A. 4094 2 1 authorized by resolution of a county legislative body, the municipality 2 may transfer vacant and/or abandoned property to such a land bank corpo- 3 ration operating within its jurisdiction. 4 § 2. Section 3 of section 1 of chapter 174 of the laws of 1968, 5 constituting the New York state urban development corporation act, is 6 amended by adding a new subdivision 31 to read as follows: 7 (31) "Land bank" is a public corporation established to assist or 8 engage in the process of the effective conversion of vacant, abandoned 9 and tax-delinquent properties to productive use. Vacant and/or abandoned 10 property shall be deemed to be residential, commercial, and industrial 11 buildings and empty lots that either threaten public safety including 12 public nuisances; and/or have been subject to the neglect of fundamental 13 duties of property ownership including but not limited to failure to pay 14 taxes or utility bills, defaults on mortgages, and liens against proper- 15 ty. Such process may, consistent with municipal land use and strategic 16 plans, include, but need not be limited to acquisition of land, leasing 17 and sales of land and structures, expedited foreclosure and title clear- 18 ance, administration, inventory and assessment of existing parcels and 19 structures, planning for reuse consistent with local plans and rein- 20 vestment strategies, property maintenance, rehabilitation and manage- 21 ment, demolition, disassembly and salvage and providing for assistance 22 for nonprofit organizations involved in the rehabilitation and redevel- 23 opment of properties. 24 § 3. Section 12 of section 1 of chapter 174 of the laws of 1968, 25 constituting the New York state urban development corporation act, is 26 amended by adding a new subdivision 1-a to read as follows: 27 (1-a) (a) Upon receipt of a resolution approved by a majority of the 28 legislative body of any county, the corporation shall establish a 29 subsidiary corporation to perform the functions of a land bank pursuant 30 to subdivision thirty-one of section three of this act. The directors of 31 such subsidiary shall include two appointees by both the chief elected 32 officer and legislative body of the county petitioning for the creation 33 of the subsidiary corporation. Members of the subsidiary shall be 34 persons who have demonstrated special interest, experience, or education 35 in urban and/or regional planning, real estate, community development, 36 neighborhood preservation, historic preservation, finance or related 37 areas. The corporation may condition the creation of a subsidiary land 38 bank on an agreement from the petitioning county to deed not less than 39 fifty percent of the vacant and abandoned property held by the munici- 40 pality to the subsidiary land bank. 41 (b) Notwithstanding any other provision of law, a subsidiary land bank 42 may institute a proceeding pursuant to article 19-A of the real property 43 actions and proceedings law. 44 (c) Notwithstanding any other provision of law, a subsidiary land bank 45 with agreement therefor from the county where property is located, may 46 borrow against future tax revenue increases. In addition, upon receiving 47 such agreement a subsidiary land bank may also borrow against future 48 savings associated with the decrease in costs on a block or multiple 49 blocks cleared and reverting to green space. 50 (d) Notwithstanding any other provision of law, a subsidiary land bank 51 may, upon such terms as it deems appropriate, convey title to any prop- 52 erty to which it obtains title pursuant to a proceeding pursuant to the 53 provisions of paragraph (a) of this subdivision or of article 19-A of 54 the real property actions and proceedings law to a private purchaser 55 provided such purchaser resides at the property as his or her primary 56 residence for a period of no less than two years. During the initial twoA. 4094 3 1 years after the conveyance to the private purchaser, the property shall 2 be exempt from ad valorem real estate taxes, provided the purchaser 3 continues to reside at the property as provided in this paragraph. 4 Thereafter, or earlier if the purchaser ceases to reside at the property 5 as his or her primary residence, the property shall be placed back on 6 the tax rolls and shall be subject to full taxation, unless it is other- 7 wise eligible for credits against such taxation. 8 § 4. This act shall take effect immediately.