Bill Text: NY A05241 | 2019-2020 | General Assembly | Introduced
Bill Title: Classifies properties held in condominium and cooperative form for assessment purposes as class one-a properties; requires that the annual tax rate percentage change for class one-a properties does not exceed the annual tax rate percentage change for class one properties.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-08 - referred to real property taxation [A05241 Detail]
Download: New_York-2019-A05241-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5241 2019-2020 Regular Sessions IN ASSEMBLY February 7, 2019 ___________ Introduced by M. of A. DenDEKKER, WEPRIN -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law, the administrative code of the city of New York and the real property law, in relation to classi- fying properties held in condominium and cooperative form for assess- ment purposes as class one-a properties; and to repeal certain provisions of the real property tax law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 1802 of the real property tax law, 2 as separately amended by chapters 123 and 529 of the laws of 1990, para- 3 graph class one as amended by chapter 332 of the laws of 2008, is 4 amended to read as follows: 5 1. All real property, for the purposes of this article, in a special 6 assessing unit shall be classified as follows: 7 Class one: (a) all one, two and three family residential real proper- 8 ty, including such dwellings used in part for nonresidential 9 purposes but which are used primarily for residential purposes, 10 except such property held in cooperative or condominium forms of 11 ownership other than (i) property defined in subparagraphs (b) 12 and (c) of this paragraph and (ii) property which contains no 13 more than three dwelling units held in condominium form of 14 ownership and which was classified within this class on a previ- 15 ous assessment roll; and provided that, notwithstanding the 16 provisions of paragraph (g) of subdivision twelve of section one 17 hundred two of this chapter, a mobile home or a trailer shall 18 not be classified within this class unless it is owner-occupied 19 and separately assessed; and (b) residential real property not 20 more than three stories in height held in condominium form of 21 ownership, provided that no dwelling unit therein previously was 22 on an assessment roll as a dwelling unit in other than condomin- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07848-02-9A. 5241 2 1 ium form of ownership; and (c) residential real property 2 consisting of one family house structures owned by the occupant, 3 situated on land held in cooperative ownership by owner occupi- 4 ers, provided that; (i) such house structures and land consti- 5 tuted bungalow colonies in existence prior to nineteen hundred 6 forty; and (ii) the land is held in cooperative ownership for 7 the sole purpose of maintaining one family residences for 8 members own use; and (d) all vacant land located within a 9 special assessing unit which is a city (i) other than such land 10 in the borough of Manhattan, provided that any such vacant land 11 which is not zoned residential must be situated immediately 12 adjacent to property improved with a residential structure as 13 defined in subparagraphs (a) and (b) of this paragraph, be owned 14 by the same owner as such immediately adjacent residential prop- 15 erty immediately prior to and since January 1, 1989, and have a 16 total area not exceeding 10,000 square feet; and (ii) located in 17 the borough of Manhattan north of or adjacent to the north side 18 of 110th street provided such vacant land was classified within 19 this class on the assessment roll with a taxable status date of 20 January 5, 2008 and the owner of such land has entered into a 21 recorded agreement with a governmental entity on or before 22 December 31, 2008 requiring construction of housing affordable 23 to persons or families of low income in accordance with the 24 provisions of the private housing finance law. Notwithstanding 25 the foregoing, such vacant land shall be classified according to 26 its use on the assessment roll with a taxable status date imme- 27 diately following commencement of construction, provided 28 further, that construction pursuant to an approved plan for 29 affordable housing shall commence no later than December 31, 30 2010; and (e) all vacant land located within a special assessing 31 unit which is not a city, provided that such vacant land which 32 is not zoned residential must be situated immediately adjacent 33 to real property defined in subparagraph (a), (b) or (c) of this 34 paragraph and be owned by the same person or persons who own the 35 real property defined in such subparagraph immediately prior to 36 and since January 1, 2003; 37 Class one-a: all other residential real property held in condominium 38 or cooperative form of ownership which is not designated as 39 class one; the department of finance of any city enacting a 40 local law pursuant to this section shall reclassify class one-a 41 properties used primarily to generate rental income to class 42 two. The department of finance of any city enacting a local law 43 pursuant to this section shall have, in addition to any other 44 functions, powers and duties which have been or may be conferred 45 on it by law, the power to make and promulgate rules to carry 46 out the purposes of this section including, but not limited to, 47 rules defining the class one-a properties primarily used to 48 generate rental income, and relating to the timing, form and 49 manner of any certification required to be submitted under this 50 section. If a property previously reclassified from class one-a 51 to class two ceases to be used primarily to generate rental 52 income, the department shall reclassify such property to class 53 one-a. The department shall use a five-year period when deter- 54 mining whether a property is used primarily to generate rental 55 income;A. 5241 3 1 Class two: all other residential real property which is not designated 2 as class one or class one-a, except hotels and motels and other 3 similar commercial property; 4 Class three: utility real property and property subject to former 5 section four hundred seventy of this chapter; 6 Class four: all other real property which is not designated as class 7 one, class one-a, class two, or class three. 8 § 1-a. The real property tax law is amended by adding a new section 9 1803-c to read as follows: 10 § 1803-c. Calculation of shares. 1. For the calendar year two thou- 11 sand eighteen, notwithstanding the provisions of sections eighteen 12 hundred three, eighteen hundred three-a, and eighteen hundred three-b of 13 this article to the contrary, the New York city commissioner of finance 14 shall establish a new class one-a pursuant to subdivision one of section 15 eighteen hundred two of this article and shall calculate shares for 16 class one, class one-a, class two, class three and class four where the 17 base year used in the calculation of the current base proportion shall 18 be the 2017 assessment roll and the sum of class one-a and class two 19 shall not exceed the prior year adjusted base proportion for such class- 20 es. 21 2. After two thousand nineteen, assessment rolls prepared according to 22 January 1, 2021, the adjusted base proportions for class one and class 23 one-a, shall not exceed each class' prior adjusted base proportion by 24 more than five percent. 25 3. In a city having a population of one million or more, such city's 26 tax fixing resolution shall set a tax rate for class one-a in the same 27 manner as all class shares are calculated pursuant to sections eighteen 28 hundred three, eighteen hundred three-a and eighteen hundred three-b of 29 this article. 30 4. The assessment ratio for class one-a shall be six percent. 31 § 2. Subdivision 1, paragraph (c) of subdivision 2 and subdivision 4 32 of section 307-a of the real property tax law, as added by section 1 of 33 part G of chapter 63 of the laws of 2003, are amended to read as 34 follows: 35 1. Generally. Notwithstanding any provision of any general, special 36 or local law to the contrary, any city with a population of one million 37 or more is hereby authorized and empowered to adopt and amend local laws 38 in accordance with this section imposing an additional tax on certain 39 class one and class one-a properties, as such properties are defined in 40 section eighteen hundred two of this chapter, excluding vacant land. 41 (c) "Net real property tax" means the real property tax assessed on a 42 class one or class one-a property after deduction for any exemption or 43 abatement received pursuant to this chapter. 44 4. Property subject to additional tax. Such surcharge shall be imposed 45 on class one and class one-a property, excluding vacant land, that 46 provides rental income and is not the primary residence of the owner or 47 owners of such class one or class one-a property, or the primary resi- 48 dence of the parent or child of such owner or owners. 49 § 3. Paragraph (f) of subdivision 1 of section 467-a of the real prop- 50 erty tax law, as added by chapter 273 of the laws of 1996, is amended 51 and a new paragraph (i) is added to read as follows: 52 (f) "Property" means real property designated as class [two] one-a, 53 pursuant to section eighteen hundred two of this chapter, held in the 54 cooperative or condominium form of ownership. 55 (i) "Market value" shall be calculated by the New York city department 56 of finance based upon comparable sales.A. 5241 4 1 § 4. Paragraphs (d-1), (d-2), (d-3) and (d-4) of subdivision 2 of 2 section 467-a of the real property tax law, as amended by section 62 of 3 part A of chapter 20 of the laws of 2015, are amended and seven new 4 paragraphs (d-7), (d-8), (d-9), (d-10), (d-11), (d-12) and (d-13) are 5 added to read as follows: 6 (d-1) In the fiscal years commencing in calendar years two thousand 7 twelve, two thousand thirteen and two thousand fourteen, eligible dwell- 8 ing units in property whose average unit assessed value is less than or 9 equal to fifty thousand dollars shall receive a partial abatement of the 10 real property taxes attributable to or due on such dwelling units of 11 twenty-five percent, twenty-six and one-half percent and twenty-eight 12 and one-tenth percent respectively. In the fiscal years commencing in 13 calendar years two thousand fifteen[,] and two thousand sixteen[, two14thousand seventeen and two thousand eighteen] eligible dwelling units in 15 property whose average unit assessed value is less than or equal to 16 fifty thousand dollars shall receive a partial abatement of the real 17 property taxes attributable to or due on such dwelling units of twenty- 18 eight and one-tenth percent. 19 (d-2) In the fiscal years commencing in calendar years two thousand 20 twelve, two thousand thirteen and two thousand fourteen, eligible dwell- 21 ing units in property whose average unit assessed value is more than 22 fifty thousand dollars, but less than or equal to fifty-five thousand 23 dollars, shall receive a partial abatement of the real property taxes 24 attributable to or due on such dwelling units of twenty-two and one-half 25 percent, twenty-three and eight-tenths percent and twenty-five and two- 26 tenths percent respectively. In the fiscal years commencing in calendar 27 years two thousand fifteen[,] and two thousand sixteen[, two thousand28seventeen and two thousand eighteen] eligible dwelling units in property 29 whose average unit assessed value is more than fifty thousand dollars, 30 but less than or equal to fifty-five thousand dollars, shall receive a 31 partial abatement of the real property taxes attributable to or due on 32 such dwelling units of twenty-five and two-tenths percent. 33 (d-3) In the fiscal years commencing in calendar years two thousand 34 twelve, two thousand thirteen and two thousand fourteen, eligible dwell- 35 ing units in property whose average unit assessed value is more than 36 fifty-five thousand dollars, but less than or equal to sixty thousand 37 dollars, shall receive a partial abatement of the real property taxes 38 attributable to or due on such dwelling units of twenty percent, twen- 39 ty-one and two-tenths percent, and twenty-two and five-tenths percent 40 respectively. In the fiscal years commencing in calendar years two thou- 41 sand fifteen[,] and two thousand sixteen[, two thousand seventeen and42two thousand eighteen] eligible dwelling units in property whose average 43 unit assessed value is more than fifty-five thousand dollars, but less 44 than or equal to sixty thousand dollars, shall receive a partial abate- 45 ment of the real property taxes attributable to or due on such dwelling 46 units of twenty-two and five-tenths percent. 47 (d-4) In the fiscal years commencing in calendar years two thousand 48 twelve, two thousand thirteen, two thousand fourteen, two thousand 49 fifteen[,] and two thousand sixteen[, two thousand seventeen and two50thousand eighteen,] eligible dwelling units in property whose average 51 unit assessed value is more than sixty thousand dollars shall receive a 52 partial abatement of the real property taxes attributable to or due on 53 such dwelling units of seventeen and one-half percent. 54 (d-7) Eligible dwelling units in property whose average unit market 55 value is less than or equal to six hundred fifty thousand dollars shall 56 receive a partial abatement of real property taxes attributable to orA. 5241 5 1 due on such dwelling units, not to exceed thirty-three percent in the 2 fiscal year commencing in calendar year two thousand twenty and there- 3 after. 4 (d-8) Eligible dwelling units in property whose average unit market 5 value is between six hundred fifty thousand one dollars to seven hundred 6 fifty thousand dollars shall receive a partial abatement of the real 7 property taxes attributable to or due on such dwelling units, not to 8 exceed twenty-two and five-tenths percent in the fiscal year commencing 9 in calendar year two thousand twenty and thereafter. 10 (d-9) Eligible dwelling units in property whose average unit market 11 value is between seven hundred fifty thousand one and one million five 12 hundred thousand dollars shall receive a partial abatement of the real 13 property taxes attributable to or due on such dwelling units, not to 14 exceed seventeen and five-tenths percent in the fiscal year commencing 15 in calendar year two thousand twenty and thereafter. 16 (d-10) Eligible dwelling units in property whose average unit market 17 value is between one million five hundred thousand one dollars and two 18 million six hundred sixty-six thousand six hundred sixty-seven dollars 19 shall receive a partial abatement of the real property taxes attribut- 20 able to or due on such dwelling units, not to exceed thirteen and thir- 21 teen-hundredths percent in the fiscal year commencing in calendar year 22 two thousand twenty and thereafter. 23 (d-11) Eligible dwelling units in property whose average unit market 24 value is between two million six hundred sixty-six thousand six hundred 25 sixty-eight dollars and three million eight hundred thirty-three thou- 26 sand three hundred thirty-three dollars shall receive a partial abate- 27 ment of the real property taxes attributable to or due on such dwelling 28 units, not to exceed eight and seventy-five hundredth percent in the 29 fiscal year commencing in calendar year two thousand twenty and there- 30 after. 31 (d-12) Eligible dwelling units in property whose average unit market 32 value is between three million eight hundred thirty-three thousand three 33 hundred thirty-four dollars and five million dollars shall receive a 34 partial abatement of the real property taxes attributable to or due on 35 such dwelling units, not to exceed four and thirty-eight hundredths 36 percent in the fiscal year commencing in calendar year two thousand 37 twenty and thereafter. 38 (d-13) Eligible dwelling units in property whose average unit market 39 value is five million dollars or more shall receive a partial abatement 40 of the real property taxes attributable to or due on such dwelling 41 units, not to exceed zero percent in the fiscal year commencing in 42 calendar year two thousand twenty and thereafter. 43 § 4-a. The real property tax law is amended by adding a new section 44 467-a-1 to read as follows: 45 § 467-a-1. Enhanced partial abatement for certain condominiums and 46 cooperative residences. 1. In addition to the partial abatement received 47 pursuant to section four hundred sixty-seven-a of this article, in the 48 fiscal year commencing in calendar year two thousand twenty, eligible 49 units in property whose average unit market value is less than six 50 hundred fifty thousand dollars shall receive an enhanced abatement equal 51 to the excess above two percent of the difference between the prior 52 year's property tax and the current year's property tax. 53 2. In addition to the partial abatement received pursuant to section 54 four hundred sixty-seven-a of this article, in the fiscal year commenc- 55 ing in calendar year two thousand twenty-one, eligible units in property 56 whose average unit market value is less than six hundred fifty thousandA. 5241 6 1 dollars shall receive an enhanced abatement equal to the excess above 2 four percent of the difference between the prior year's property tax and 3 the current year's property tax. 4 3. In addition to the partial abatement received pursuant to section 5 four hundred sixty-seven-a of this article, in the fiscal year commenc- 6 ing in calendar year two thousand twenty-two and thereafter, eligible 7 units in property whose average unit market value is less than six 8 hundred fifty thousand dollars shall receive an enhanced abatement equal 9 to the excess above six percent of the difference between the prior 10 year's property tax and the current year's property tax. The enhanced 11 condominium and cooperative abatement shall not be eligible for units 12 where the commissioner determines that renovation or construction within 13 the unit or building has produced a substantial yearly increase in the 14 unit's assessed value. 15 § 5. Subdivision 7 of section 499-aaa of the real property tax law, as 16 added by chapter 461 of the laws of 2008, is amended to read as follows: 17 7. "Eligible building" shall mean a class one, class one-a, class two 18 or class four real property, as defined in subdivision one of section 19 eighteen hundred two of this chapter, located within a city having a 20 population of one million or more persons. No building shall be eligible 21 for more than one tax abatement pursuant to this title. 22 § 6. Subdivision 7 of section 499-aaaa of the real property tax law, 23 as added by chapter 473 of the laws of 2008, is amended to read as 24 follows: 25 7. "Eligible building" shall mean a class one, class one-a, class two 26 or class four real property, as defined in subdivision one of section 27 eighteen hundred two of this chapter, located within a city having a 28 population of one million or more persons. No building shall be eligible 29 for more than one tax abatement pursuant to this title. 30 § 7. Paragraph (b) of subdivision 3 of section 522 of the real proper- 31 ty tax law, as added by chapter 714 of the laws of 1982, is amended to 32 read as follows: 33 (b) in a special assessing unit, the determination, pursuant to 34 section eighteen hundred two of this chapter, of whether real property 35 is included in class one, one-a, two, three or four. 36 § 8. Subdivision 10 of section 523-b of the real property tax law, as 37 added by chapter 593 of the laws of 1998, is amended to read as follows: 38 10. On or before April first, each year the commission shall mail to 39 each applicant, who has filed an application for the correction of the 40 assessment, a notice of the commission's determination of such appli- 41 cant's assessment. Such notice shall also contain the statement as to 42 the final determination of the assessment review commission, or a state- 43 ment that the commission has not yet made a determination as to the 44 final assessed valuation which shall be made as soon as the petitioners 45 application is reviewed or heard. If the applicants property is a prop- 46 erty defined in subdivision one of section eighteen hundred two of this 47 chapter as "Class 1", the commissions determination shall contain the 48 statement: "If you are dissatisfied with the determination of the 49 Assessment Review Commission and you are the owner of a one, two or 50 three family residential structure or residential real property not more 51 than three stories in height held in condominium form of ownership, 52 provided that no dwelling unit therein previously was on an assessment 53 roll as a dwelling unit in other than condominium form of ownership, and 54 you reside at such residence, you may seek judicial review of your 55 assessment either under title one of article seven of the real property 56 tax law or under small claims assessment review law provided by titleA. 5241 7 1 one-A of article seven of the real property tax law." Such notice shall 2 also state that the last date to file petitions for judicial review and 3 the location where small claims assessment review petitions may be 4 obtained. 5 Each applicant that has filed an application of a property as defined 6 in subdivision one of section eighteen hundred two of this chapter as 7 "Class 1-a", "Class 2", "Class 3" or "Class 4", shall receive a notice 8 as to the final determination of the assessment review commission or a 9 statement that the commission has not yet made a determination as to the 10 final assessed valuation which shall be made as soon as the petitioners 11 application is reviewed or heard. Such applicants determinations shall 12 contain the statement: "If you are dissatisfied with the determination 13 of the Assessment Review Commission you may seek judicial review of your 14 assessment under title one of article seven of the real property tax 15 law." Such notice shall also state the last date to file petitions for 16 judicial review. A final determination when rendered shall contain the 17 same statement. Failure to mail any such notice or failure of the appli- 18 cant to receive the same shall not affect the validity of the assess- 19 ment. 20 § 9. Paragraph (b) of subdivision 3 of section 701 of the real proper- 21 ty tax law, as added by chapter 714 of the laws of 1982, is amended to 22 read as follows: 23 (b) In a special assessing unit, the determination, pursuant to 24 section eighteen hundred two of this chapter, of whether real property 25 is included in class one, one-a, two, three or four. 26 § 10. Subparagraph 2 of paragraph (a) of subdivision 3 of section 720 27 of the real property tax law, as amended by chapter 679 of the laws of 28 1986, is amended to read as follows: 29 (2) "Major type of property" in special assessing units, for assess- 30 ments on rolls completed after December thirty-first, nineteen hundred 31 eighty-one, shall mean classes one, one-a, two, three and four as 32 defined in subdivision one of section eighteen hundred two of this chap- 33 ter. 34 § 11. The opening paragraph of subdivision 1 of section 1805 of the 35 real property tax law, as amended by chapter 935 of the laws of 1984, is 36 amended and two new subdivisions 1-a and 1-b are added to read as 37 follows: 38 The assessor of any special assessing unit shall not increase the 39 assessment of any individual parcel classified in class one or class 40 one-a in any one year, as measured from the assessment on the previous 41 year's assessment roll, by more than six percent and shall not increase 42 such assessment by more than twenty percent in any five-year period. The 43 first such five-year period shall be measured from the individual 44 assessment appearing on the assessment roll completed in nineteen 45 hundred eighty; provided that if such parcel would not have been subject 46 to the provisions of this subdivision in nineteen hundred eighty had 47 this subdivision then been in effect, the first such five-year period 48 shall be measured from the first year after nineteen hundred eighty in 49 which this subdivision applied to such parcel or would have applied to 50 such parcel had this subdivision been in effect in such year. 51 1-a. Assessment rolls computed for class one-a shall include any 52 outstanding phased-in increases accrued prior to the effective date of 53 the chapter of the laws of two thousand nineteen which added this subdi- 54 vision pursuant to subdivision three of this section. 55 1-b. Class one-a parcels shall be assessed in a method comparable to 56 class one parcels.A. 5241 8 1 § 12. Subdivisions e and f of section 11-208.1 of the administrative 2 code of the city of New York, subdivision e as amended by local law 3 number 41 of the city of New York for the year 1986 and subdivision f as 4 amended by chapter 385 of the laws of 2006, are amended to read as 5 follows: 6 e. As used in this section, the term "income-producing property" means 7 property owned for the purpose of securing an income from the property 8 itself, but shall not include property with an assessed value of forty 9 thousand dollars or less, or residential property containing ten or 10 fewer dwelling units or property classified in class one, one-a or two 11 as defined in article eighteen of the real property tax law containing 12 six or fewer dwelling units and one retail store. 13 f. Except in accordance with proper judicial order or as otherwise 14 provided by law, it shall be unlawful for the commissioner, any officer 15 or employee of the department, the president or a commissioner or 16 employee of the tax commission, any person engaged or retained by the 17 department or the tax commission on an independent contract basis, or 18 any person, who, pursuant to this section, is permitted to inspect any 19 income and expense statement or to whom a copy, an abstract or a portion 20 of any such statement is furnished, to divulge or make known in any 21 manner except as provided in this subdivision, the amount of income 22 and/or expense or any particulars set forth or disclosed in any such 23 statement required under this section. The commissioner, the president 24 of the tax commission, or any commissioner or officer or employee of the 25 department or the tax commission charged with the custody of such state- 26 ments shall not be required to produce any income and expense statement 27 or evidence of anything contained in them in any action or proceeding in 28 any court, except on behalf of the department or the tax commission. 29 Nothing herein shall be construed to prohibit the delivery to an owner 30 or his or her duly authorized representative of a certified copy of any 31 statement filed by such owner pursuant to this section or to prohibit 32 the publication of statistics so classified as to prevent the identifi- 33 cation of particular statements and the items thereof, or making known 34 aggregate income and expense information disclosed with respect to prop- 35 erty classified as class four as defined in article eighteen of the real 36 property tax law without identifying information about individual leas- 37 es, or making known a range as determined by the commissioner within 38 which the income and expenses of a property classified as class one-a or 39 class two falls, or the inspection by the legal representatives of the 40 department or of the tax commission of the statement of any owner who 41 shall bring an action to correct the assessment. Any violation of the 42 provisions of this subdivision shall be punished by a fine not exceeding 43 one thousand dollars or by imprisonment not exceeding one year, or both, 44 at the discretion of the court, and if the offender be an officer or 45 employee of the department or the tax commission, the offender shall be 46 dismissed from office. 47 § 13. Subdivision a of section 11-238 of the administrative code of 48 the city of New York, as amended by local law number 27 of the city of 49 New York for the year 2006, is amended to read as follows: 50 a. Imposition of surcharge. A real property tax surcharge is hereby 51 imposed on class one and class one-a property, as defined in section 52 eighteen hundred two of the real property tax law, excluding vacant 53 land, that provides rental income and is not the primary residence of 54 the owner or owners of such class one or class one-a property, or the 55 primary residence of the parent or child of such owner or owners, in an 56 amount equal to zero percent of the net real property taxes for fiscalA. 5241 9 1 years beginning on or after July first, two thousand six. As used in 2 this section, "net real property tax" means the real property tax 3 assessed on class one property after deduction for any exemption or 4 abatement received pursuant to the real property tax law or this title. 5 § 14. Subdivisions a, a-1, a-2, a-3, a-4 and a-5 of section 11-319 of 6 the administrative code of the city of New York, subdivisions a, a-1, 7 a-2 and a-3 as amended, subdivision a-5 as added by local law number 15 8 of the city of New York for the year 2011 and subdivision a-4 as amended 9 by local law number 4 of the city of New York for the year 2017, are 10 amended to read as follows: 11 a. A tax lien or tax liens on a property or any component of the 12 amount thereof may be sold by the city as authorized by subdivision b of 13 this section, when such tax lien or tax liens shall have remained unpaid 14 in whole or in part for one year, provided, however, that a tax lien or 15 tax liens on any class one property or on class [two] one-a property 16 [that is a residential condominium or residential cooperative], as such 17 classes of property are defined in subdivision one of section eighteen 18 hundred two of the real property tax law, may be sold by the city only 19 when the real property tax component of such tax lien or tax liens shall 20 have remained unpaid in whole or in part for three years or, in the case 21 of any class two residential property owned by a company organized 22 pursuant to article XI of the state private housing finance law [that is23not a residential condominium or a residential cooperative], as such 24 class of property is defined in subdivision one of section eighteen 25 hundred two of the real property tax law, for two years, and equals or 26 exceeds the sum of five thousand dollars or, in the case of abandoned 27 class one property or abandoned class [two] one-a property [that is a28residential condominium or residential cooperative], for eighteen 29 months, and after such sale, shall be transferred, in the manner 30 provided by this chapter, and provided, further, however, that (i) the 31 real property tax component of such tax lien may not be sold pursuant to 32 this subdivision on any residential real property in class one that is 33 receiving an exemption pursuant to section 11-245.3 or 11-245.4 of this 34 title, or pursuant to section four hundred fifty-eight of the real prop- 35 erty tax law with respect to real property purchased with payments 36 received as prisoner of war compensation from the United States govern- 37 ment, or pursuant to paragraph (b) or (c) of subdivision two of section 38 four hundred fifty-eight-a of the real property tax law, or where the 39 owner of such residential real property in class one is receiving bene- 40 fits in accordance with department of finance memorandum 05-3, or any 41 successor memorandum thereto, relating to active duty military person- 42 nel, or where the owner of such residential real property in class one 43 has been allowed a credit pursuant to subsection (e) of section six 44 hundred six of the tax law for the calendar year in which the date of 45 the first publication, pursuant to subdivision a of section 11-320 of 46 this chapter, of the notice of sale, occurs or for the calendar year 47 immediately preceding such date and (ii) the sewer rents component, 48 sewer surcharges component or water rents component of such tax lien may 49 not be sold pursuant to this subdivision on any one family residential 50 real property in class one or on any two or three family residential 51 real property in class one that is receiving an exemption pursuant to 52 section 11-245.3 or 11-245.4 of this title, or pursuant to section four 53 hundred fifty-eight of the real property tax law with respect to real 54 property purchased with payments received as prisoner of war compen- 55 sation from the United States government, or pursuant to paragraph (b) 56 or (c) of subdivision two of section four hundred fifty-eight-a of theA. 5241 10 1 real property tax law, or where the owner of any two or three family 2 residential real property in class one is receiving benefits in accord- 3 ance with department of finance memorandum 05-3, or any successor memo- 4 randum thereto, relating to active duty military personnel, or where the 5 owner of any two or three family residential real property in class one 6 has been allowed a credit pursuant to subsection (e) of section six 7 hundred six of the tax law for the calendar year in which the date of 8 the first publication, pursuant to subdivision a of section 11-320 of 9 this chapter, of the notice of sale, occurs or for the calendar year 10 immediately preceding such date. A tax lien or tax liens on any property 11 classified as a class two property, except [a class two property that is12a residential condominium or residential cooperative, or] a class two 13 residential property owned by a company organized pursuant to article XI 14 of the state private housing finance law [that is not a residential15condominium or a residential cooperative], or class three property, as 16 such classes of property are defined in subdivision one of section eigh- 17 teen hundred two of the real property tax law, shall not be sold by the 18 city unless such tax lien or tax liens include a real property tax 19 component as of the date of the first publication, pursuant to subdivi- 20 sion a of section 11-320 of this chapter, of the notice of sale. 21 Notwithstanding any provision of this subdivision to the contrary, any 22 such tax lien or tax liens that remain unpaid in whole or in part after 23 such date may be sold regardless of whether such tax lien or tax liens 24 include a real property tax component. A tax lien or tax liens on a 25 property classified as a class four property, as such class of property 26 is defined in subdivision one of section eighteen hundred two of the 27 real property tax law, shall not be sold by the city unless such tax 28 lien or tax liens include a real property tax component or sewer rents 29 component or sewer surcharges component or water rents component or 30 emergency repair charges component, where such emergency repair charges 31 accrued on or after January first, two thousand six and are made a lien 32 pursuant to section 27-2144 of this code, as of the date of the first 33 publication, pursuant to subdivision a of section 11-320 of this chap- 34 ter, of the notice of sale, provided, however, that any tax lien or tax 35 liens that remain unpaid in whole or in part after such date may be sold 36 regardless of whether such tax lien or tax liens include a real property 37 tax component, sewer rents component, sewer surcharges component, water 38 rents component or emergency repair charges component. For purposes of 39 this subdivision, the words "real property tax" shall not include an 40 assessment or charge upon property imposed pursuant to section 25-411 of 41 the administrative code. A sale of a tax lien or tax liens shall 42 include, in addition to such lien or liens that have remained unpaid in 43 whole or in part for one year, or, in the case of any class one property 44 or class [two] one-a property [that is a residential condominium or45residential cooperative], when the real property tax component of such 46 lien or liens has remained unpaid in whole or in part for three years, 47 or, in the case of any class two residential property owned by a company 48 organized pursuant to article XI of the state private housing finance 49 law [that is not a residential condominium or a residential cooper-50ative], when the real property tax component of such lien or liens has 51 remained unpaid in whole or in part for two years, and equals or exceeds 52 the sum of five thousand dollars, any taxes, assessments, sewer rents, 53 sewer surcharges, water rents, any other charges that are made a lien 54 subject to the provisions of this chapter, the costs of any advertise- 55 ments and notices given pursuant to this chapter, any other charges that 56 are due and payable, a surcharge pursuant to section 11-332 of thisA. 5241 11 1 chapter, and interest and penalties thereon or such component of the 2 amount thereof as shall be determined by the commissioner of finance. 3 The commissioner of finance may promulgate rules defining "abandoned" 4 property, as such term is used in this subdivision. 5 a-1. A subsequent tax lien or tax liens on a property or any component 6 of the amount thereof may be sold by the city pursuant to this chapter, 7 provided, however, that notwithstanding any provision in this chapter to 8 the contrary, such tax lien or tax liens may be sold regardless of 9 whether such tax lien or tax liens have remained unpaid in whole or in 10 part for one year and, notwithstanding any provision in this chapter to 11 the contrary, in the case of any class one property or class [two] one-a 12 property [that is a residential condominium or residential cooperative] 13 or, beginning January first, two thousand twelve, in the case of any 14 class two residential property owned by a company organized pursuant to 15 article XI of the state private housing finance law [that is not a resi-16dential condominium or a residential cooperative], such tax lien or tax 17 liens may be sold if the real property tax component of such tax lien or 18 tax liens has remained unpaid in whole or in part for one year, and 19 provided, further, however, that (i) the real property tax component of 20 such tax lien may not be sold pursuant to this subdivision on any resi- 21 dential real property in class one that is receiving an exemption pursu- 22 ant to section 11-245.3 or 11-245.4 of this title, or pursuant to 23 section four hundred fifty-eight of the real property tax law with 24 respect to real property purchased with payments received as prisoner of 25 war compensation from the United States government, or pursuant to para- 26 graph (b) or (c) of subdivision two of section four hundred 27 fifty-eight-a of the real property tax law, or where the owner of such 28 residential real property in class one is receiving benefits in accord- 29 ance with department of finance memorandum 05-3, or any successor memo- 30 randum thereto, relating to active duty military personnel, or where the 31 owner of such residential real property in class one has been allowed a 32 credit pursuant to subsection (e) of section six hundred six of the tax 33 law for the calendar year in which the date of the first publication, 34 pursuant to subdivision a of section 11-320 of this chapter, of the 35 notice of sale, occurs or for the calendar year immediately preceding 36 such date and (ii) the sewer rents component, sewer surcharges component 37 or water rents component of such tax lien may not be sold pursuant to 38 this subdivision on any one family residential real property in class 39 one or on any two or three family residential real property in class one 40 that is receiving an exemption pursuant to section 11-245.3 or 11-245.4 41 of this title, or pursuant to section four hundred fifty-eight of the 42 real property tax law with respect to real property purchased with 43 payments received as prisoner of war compensation from the United States 44 government, or pursuant to paragraph (b) or (c) of subdivision two of 45 section four hundred fifty-eight-a of the real property tax law, or 46 where the owner of any two or three family residential real property in 47 class one is receiving benefits in accordance with department of finance 48 memorandum 05-3, or any successor memorandum thereto, relating to active 49 duty military personnel, or where the owner of any two or three family 50 residential real property in class one has been allowed a credit pursu- 51 ant to subsection (e) of section six hundred six of the tax law for the 52 calendar year in which the date of the first publication, pursuant to 53 subdivision a of section 11-320 of this chapter, of the notice of sale, 54 occurs or for the calendar year immediately preceding such date. For 55 purposes of this subdivision, the term "subsequent tax lien or tax 56 liens" shall mean any tax lien or tax liens on property that become suchA. 5241 12 1 on or after the date of sale of any tax lien or tax liens on such prop- 2 erty that have been sold pursuant to this chapter, provided that the 3 prior tax lien or tax liens remain unpaid as of the date of the first 4 publication, pursuant to subdivision a of section 11-320 of this chap- 5 ter, of the notice of sale of the subsequent tax lien or tax liens. A 6 subsequent tax lien or tax liens on any property classified as a class 7 two property, except [a class two property that is a residential condo-8minium or residential cooperative, or] a class two residential property 9 owned by a company organized pursuant to article XI of the state private 10 housing finance law [that is not a residential condominium or a residen-11tial cooperative], or class three property, as such classes of property 12 are defined in subdivision one of section eighteen hundred two of the 13 real property tax law, shall not be sold by the city unless such tax 14 lien or tax liens include a real property tax component as of the date 15 of the first publication, pursuant to subdivision a of section 11-320 of 16 this chapter, of the notice of sale. Notwithstanding any provision of 17 this subdivision to the contrary, any such tax lien or tax liens that 18 remain unpaid in whole or in part after such date may be sold regardless 19 of whether such tax lien or tax liens include a real property tax compo- 20 nent. A subsequent tax lien or tax liens on a property classified as a 21 class four property, as such class of property is defined in subdivision 22 one of section eighteen hundred two of the real property tax law, shall 23 not be sold by the city unless such tax lien or tax liens include a real 24 property tax component or sewer rents component or sewer surcharges 25 component or water rents component or emergency repair charges compo- 26 nent, where such emergency repair charges accrued on or after January 27 first, two thousand six and are made a lien pursuant to section 27-2144 28 of this code, as of the date of the first publication, pursuant to 29 subdivision a of section 11-320 of this chapter, of the notice of sale, 30 provided, however, that any tax lien or tax liens that remain unpaid in 31 whole or in part after such date may be sold regardless of whether such 32 tax lien or tax liens include a real property tax component, sewer rents 33 component, sewer surcharges component, water rents component or emergen- 34 cy repair charges component. For purposes of this subdivision, the words 35 "real property tax" shall not include an assessment or charge upon prop- 36 erty imposed pursuant to section 25-411 of the administrative code. 37 Nothing in this subdivision shall be deemed to limit the rights 38 conferred by section 11-332 of this chapter on the holder of a tax lien 39 certificate with respect to a subsequent tax lien. 40 a-2. In addition to any sale authorized pursuant to subdivision a or 41 subdivision a-1 of this section and notwithstanding any provision of 42 this chapter to the contrary, beginning on December first, two thousand 43 seven, the water rents, sewer rents and sewer surcharges components of 44 any tax lien on any class of real property, as such real property is 45 classified in subdivision one of section eighteen hundred two of the 46 real property tax law, may be sold by the city pursuant to this chapter, 47 where such water rents, sewer rents or sewer surcharges component of 48 such tax lien, as of the date of the first publication, pursuant to 49 subdivision a of section 11-320 of this chapter, of the notice of sale: 50 (i) shall have remained unpaid in whole or in part for one year and (ii) 51 equals or exceeds the sum of one thousand dollars or, beginning on March 52 first, two thousand eleven, in the case of any two or three family resi- 53 dential real property in class one, for one year, and equals or exceeds 54 the sum of two thousand dollars, or, beginning on January first, two 55 thousand twelve, in the case of any class two residential property owned 56 by a company organized pursuant to article XI of the state private hous-A. 5241 13 1 ing finance law [that is not a residential condominium or a residential2cooperative], as such class of property is defined in subdivision one of 3 section eighteen hundred two of the real property tax law, for two 4 years, and equals to exceeds the sum of five thousand dollars; provided, 5 however, that such water rents, sewer rents or sewer surcharges compo- 6 nent of such tax lien may not be sold pursuant to this subdivision on 7 any one family residential real property in class one or on any two or 8 three family residential real property in class one that is receiving an 9 exemption pursuant to section 11-245.3 or 11-245.4 of this title, or 10 pursuant to section four hundred fifty-eight of the real property tax 11 law with respect to real property purchased with payments received as 12 prisoner of war compensation from the United States government, or 13 pursuant to paragraph (b) or (c) of subdivision two of section four 14 hundred fifty-eight-a of the real property tax law, or where the owner 15 of any two or three family residential real property in class one is 16 receiving benefits in accordance with department of finance memorandum 17 05-3, or any successor memorandum thereto, relating to active duty mili- 18 tary personnel, or where the owner of any two or three family residen- 19 tial real property in class one has been allowed a credit pursuant to 20 subsection (e) of section six hundred six of the tax law for the calen- 21 dar year in which the date of the first publication, pursuant to subdi- 22 vision a of section 11-320 of this chapter, of the notice of sale, 23 occurs or for the calendar year immediately preceding such date. After 24 such sale, any such water rents, sewer rents or sewer surcharges compo- 25 nent of such tax lien may be transferred in the manner provided by this 26 chapter. 27 a-3. In addition to any sale authorized pursuant to subdivision a or 28 subdivision a-1 of this section and notwithstanding any provision of 29 this chapter to the contrary, beginning on December first, two thousand 30 seven, a subsequent tax lien on any class of real property, as such real 31 property is classified in subdivision one of section eighteen hundred 32 two of the real property tax law, may be sold by the city pursuant to 33 this chapter, regardless of whether such subsequent tax lien, or any 34 component of the amount thereof, shall have remained unpaid in whole or 35 in part for one year, and regardless of whether such subsequent tax 36 lien, or any component of the amount thereof, equals or exceeds the sum 37 of one thousand dollars or beginning on March first, two thousand elev- 38 en, in the case of any two or three family residential real property in 39 class one, a subsequent tax lien on such property may be sold by the 40 city pursuant to this chapter, regardless of whether such subsequent tax 41 lien, or any component of the amount thereof, shall have remained unpaid 42 in whole or in part for one year, and regardless of whether such subse- 43 quent tax lien, or any component of the amount thereof, equals or 44 exceeds the sum of two thousand dollars, or, beginning on January first, 45 two thousand twelve, in the case of any class two residential property 46 owned by a company organized pursuant to article XI of the state private 47 housing finance law [that is not a residential condominium or a residen-48tial cooperative], as such class of property is defined in subdivision 49 one of section eighteen hundred two of the real property tax law, a 50 subsequent tax lien on such property may be sold by the city pursuant to 51 this chapter, regardless of whether such subsequent tax lien, or any 52 component of the amount thereof, shall have remained unpaid in whole or 53 in part for two years, and regardless of whether such subsequent tax 54 lien, or any component of the amount thereof, equals or exceeds the sum 55 of five thousand dollars; provided, however, that such subsequent tax 56 lien may not be sold pursuant to this subdivision on any one familyA. 5241 14 1 residential real property in class one or on any two or three family 2 residential real property in class one that is receiving an exemption 3 pursuant to section 11-245.3 or 11-245.4 of this title, or pursuant to 4 section four hundred fifty-eight of the real property tax law with 5 respect to real property purchased with payments received as prisoner of 6 war compensation from the United States government, or pursuant to para- 7 graph (b) or (c) of subdivision two of section four hundred 8 fifty-eight-a of the real property tax law, or where the owner of any 9 two or three family residential real property in class one is receiving 10 benefits in accordance with department of finance memorandum 05-3, or 11 any successor memorandum thereto, relating to active duty military 12 personnel, or where the owner of any two or three family residential 13 real property in class one has been allowed a credit pursuant to 14 subsection (e) of section six hundred six of the tax law for the calen- 15 dar year in which the date of the first publication, pursuant to subdi- 16 vision a of section 11-320 of this chapter, of the notice of sale, 17 occurs or for the calendar year immediately preceding such date. After 18 such sale, any such subsequent tax lien, or any component of the amount 19 thereof, may be transferred in the manner provided by this chapter. For 20 purposes of this subdivision, the term "subsequent tax lien" shall mean 21 the water rents, sewer rents or sewer surcharges component of any tax 22 lien on property that becomes such on or after the date of sale of any 23 water rents, sewer rents or sewer surcharges component of any tax lien 24 on such property that has been sold pursuant to this chapter, provided 25 that the prior tax lien remains unpaid as of the date of the first 26 publication, pursuant to subdivision a of section 11-320 of this chap- 27 ter, of the notice of sale of the subsequent tax lien. Nothing in this 28 subdivision shall be deemed to limit the rights conferred by section 29 11-332 of this chapter on the holder of a tax lien certificate with 30 respect to a subsequent tax lien. 31 a-4. In addition to any sale authorized pursuant to subdivision a, 32 a-1, a-2 or a-3 of this section and notwithstanding any provision of 33 this chapter to the contrary, beginning on March first, two thousand 34 eleven, the emergency repair charges component or alternative enforce- 35 ment expenses and fees component, where such emergency repair charges 36 accrued on or after January first, two thousand six and are made a lien 37 pursuant to section 27-2144 of this code, or where such alternative 38 enforcement expenses and fees are made a lien pursuant to section 39 27-2153 of this code, of any tax lien on any class of real property, as 40 such real property is defined in subdivision one of section eighteen 41 hundred two of the real property tax law, may be sold by the city pursu- 42 ant to this chapter, where such emergency repair charges component or 43 alternative enforcement expenses and fees component of such tax lien, as 44 of the date of the first publication, pursuant to subdivision a of 45 section 11-320 of this chapter, of the notice of sale: (i) shall have 46 remained unpaid in whole or in part for one year, and (ii) equals or 47 exceeds the sum of one thousand dollars or, beginning on January first, 48 two thousand twelve, in the case of any class two residential property 49 owned by a company organized pursuant to article XI of the state private 50 housing finance law [that is not a residential condominium or a residen-51tial cooperative], as such class of property is defined in subdivision 52 one of section eighteen hundred two of the real property tax law, for 53 two years, and equals or exceeds the sum of five thousand dollars; 54 provided, however, that such emergency repair charges component or 55 alternative enforcement expenses and fees component of such tax lien may 56 only be sold pursuant to this subdivision on any one, two or three fami-A. 5241 15 1 ly residential real property in class one, where such one, two or three 2 family residential property in class one is not the primary residence of 3 the owner. After such sale, any such emergency repair charges component 4 or alternative enforcement expenses and fees component of such tax lien 5 may be transferred in the manner provided by this chapter. 6 a-5. In addition to any sale authorized pursuant to subdivision a, 7 a-1, a-2 or a-3 of this section and notwithstanding any provision of 8 this chapter to the contrary, beginning on March first, two thousand 9 eleven, a subsequent tax lien on any class of real property, or begin- 10 ning on January first, two thousand twelve in the case of any class two 11 residential property owned by a company organized pursuant to article XI 12 of the state private housing finance law [that is not a residential13condominium or a residential cooperative], a subsequent tax lien on such 14 property, may be sold by the city pursuant to this chapter, regardless 15 of the length of time such subsequent tax lien, or any component of the 16 amount thereof, shall have remained unpaid, and regardless of the amount 17 of such subsequent tax lien. After such sale, any such subsequent tax 18 lien, or any component of the amount thereof, may be transferred in the 19 manner provided by this chapter. For purposes of this subdivision, the 20 term "subsequent tax lien" shall mean the emergency repair charges 21 component or alternative enforcement expenses and fees component, where 22 such emergency repair charges accrued on or after January first, two 23 thousand six and are made a lien pursuant to section 27-2144 of this 24 code, or where such alternative enforcement expenses and fees are made a 25 lien pursuant to section 27-2153 of this code, of any tax lien on prop- 26 erty that becomes such on or after the date of sale of any emergency 27 repair charges component or alternative enforcement expenses and fees 28 component, of any tax lien on such property that has been sold pursuant 29 to this chapter, provided that the prior tax lien remains unpaid as of 30 the date of the first publication, pursuant to subdivision a of section 31 11-320 of this chapter, of the notice of sale of the subsequent tax 32 lien. Nothing in this subdivision shall be deemed to limit the rights 33 conferred by section 11-332 of this chapter on the holder of a tax lien 34 certificate with respect to a subsequent tax lien. 35 § 15. Subparagraph (i) of paragraph 2 of subdivision b and subpara- 36 graph (ii) of paragraph 1 of subdivision h of section 11-320 of the 37 administrative code of the city of New York, subparagraph (i) of para- 38 graph 2 of subdivision b as amended by local law number 147 of the city 39 of New York for the year 2013 and subparagraph (ii) of paragraph 1 of 40 subdivision h as added by local law number 15 of the city of New York 41 for the year 2011, are amended to read as follows: 42 (i) Such notices shall also include, with respect to any property 43 owner in class one, class one-a or class two, as such classes of proper- 44 ty are defined in subdivision one of section eighteen hundred two of the 45 real property tax law, an exemption eligibility checklist. The exemption 46 eligibility checklist shall also be posted on the website of the depart- 47 ment no later than the first business day after March fifteenth of every 48 year prior to the date of sale, and shall continue to be posted on such 49 website until ten days prior to the date of sale. Within ten business 50 days of receipt of a completed exemption eligibility checklist from such 51 property owner, provided that such receipt occurs prior to the date of 52 sale of any tax lien or tax liens on his or her property, the department 53 of finance shall review such checklist to determine, based on the infor- 54 mation provided by the property owner, whether such property owner could 55 be eligible for any exemption, credit or other benefit that would enti- 56 tle them to be excluded from a tax lien sale and, if the departmentA. 5241 16 1 determines that such property owner could be eligible for any such 2 exemption, credit or other benefit, shall mail such property owner an 3 application for the appropriate exemption, credit or other benefit. If, 4 within twenty business days of the date the department mailed such 5 application, the department has not received a completed application 6 from such property owner, the department shall mail such property owner 7 a second application, and shall telephone the property owner, if the 8 property owner has included his or her telephone number on the exemption 9 eligibility checklist. 10 (ii) all class two residential property owned by a company organized 11 pursuant to article XI of the state private housing finance law [that is12not a residential condominium or a residential cooperative] on which any 13 tax lien has been sold pursuant to subdivision a, a-2 or a-4 of section 14 11-319 of this title. 15 § 16. Subdivision (a) of section 11-354 of the administrative code of 16 the city of New York, as amended by local law number 37 of the city of 17 New York for the year 1996, is amended to read as follows: 18 (a) Notwithstanding any other provision of law and notwithstanding any 19 omission to hold a tax lien sale, whenever any tax, assessment, sewer 20 rent, sewer surcharge, water rent, any charge that is made a lien 21 subject to the provisions of this chapter or chapter four of this title, 22 or interest and penalties thereon, has been due and unpaid for a period 23 of at least one year from the date on which the tax, assessment or other 24 legal charge represented thereby became a lien, or in the case of any 25 class one property or any class [two] one-a property [that is a residen-26tial condominium or residential cooperative], as such classes of proper- 27 ty are defined in subdivision one of section eighteen hundred two of the 28 real property tax law, or in the case of a multiple dwelling owned by a 29 company organized pursuant to article XI of the private housing finance 30 law with the consent and approval of the department of housing preserva- 31 tion and development, for a period of at least three years from the date 32 on which the tax, assessment or other legal charge became a lien, the 33 city, as owner of a tax lien, may maintain an action in the supreme 34 court to foreclose such lien. Such action shall be governed by the 35 procedures set forth in section 11-335 of this chapter; provided, howev- 36 er, that such parcel shall only be sold to the highest responsible 37 bidder. Such purchaser shall be deemed qualified as a responsible bidder 38 pursuant to such criteria as are established in rules promulgated by the 39 commissioner of finance after consultation with the commissioner of 40 housing preservation and development. 41 § 17. The opening paragraph of subdivision 4 of section 11-401 of the 42 administrative code of the city of New York, as added by local law 43 number 152 of the city of New York for the year 2017, is amended to read 44 as follows: 45 "Distressed property." Any parcel of class one, class one-a or class 46 two real property that is subject to a tax lien or liens that result 47 from an environmental control board judgment against the owner of such 48 parcel for a building code violation with a lien or liens to value 49 ratio, as determined by the commissioner of finance, equal to or greater 50 than 25 percent or any parcel of class one, class one-a, or class two 51 real property that is subject to a tax lien or liens with a lien or 52 liens to value ratio, as determined by the commissioner of finance, 53 equal to or greater than fifteen percent and that meets one of the 54 following two criteria:A. 5241 17 1 § 18. Subdivisions a and b of section 11-401.1 of the administrative 2 code of the city of New York, as added by local law number 37 of the 3 city of New York for the year 1996, are amended to read as follows: 4 a. The commissioner of finance shall, not less than sixty days preced- 5 ing the date of the sale of a tax lien or tax liens, submit to the 6 commissioner of housing preservation and development a description by 7 block and lot, or by such other identification as the commissioner of 8 finance may deem appropriate, of any parcel of class one, class one-a or 9 class two real property on which there is a tax lien that may be fore- 10 closed by the city. The commissioner of housing preservation and devel- 11 opment shall determine, and direct the commissioner of finance, not less 12 than ten days preceding the date of the sale of a tax lien or tax liens, 13 whether any such parcel is a distressed property as defined in subdivi- 14 sion four of section 11-401 of this chapter. Any tax lien on a parcel so 15 determined to be a distressed property shall not be included in such 16 sale. In connection with a subsequent sale of a tax lien or tax liens, 17 the commissioner of finance may, not less than sixty days preceding the 18 date of the sale, resubmit to the commissioner of housing preservation 19 and development a description by block and lot, or by such other iden- 20 tification as the commissioner of finance may deem appropriate, of any 21 parcel of class one, class one-a or class two real property that was 22 previously determined to be a distressed property pursuant to this para- 23 graph and on which there is a tax lien that may be included in such 24 sale. The commissioner of housing preservation and development shall 25 determine, and direct the commissioner of finance, not less than ten 26 days preceding the date of the sale, whether such parcel remains a 27 distressed property. If the commissioner of housing preservation and 28 development determines that the parcel is not a distressed property, 29 then the tax lien on the parcel may be included in the sale. 30 b. The commissioner of housing preservation and development may peri- 31 odically review whether a parcel of class one, class one-a or class two 32 real property that is subject to subdivision c of this section or subdi- 33 vision j of section 11-412.1 of this chapter remains a distressed prop- 34 erty. If the commissioner determines that the parcel is not a distressed 35 property as defined in subdivision four of section 11-401 of this chap- 36 ter, then the parcel shall not be subject to such subdivisions. 37 § 19. Subdivision b of section 11-404 of the administrative code of 38 the city of New York, as amended by local law number 37 of the city of 39 New York for the year 1996, is amended to read as follows: 40 b. A tax lien on any class one property or any class [two] one-a prop- 41 erty [that is a residential condominium or residential cooperative], as 42 such classes of property are defined in subdivision one of section eigh- 43 teen hundred two of the real property tax law, and on any multiple 44 dwelling owned by a company organized pursuant to article XI of the 45 private housing finance law with the consent and approval of the depart- 46 ment of housing preservation and development, shall not be foreclosed in 47 the manner provided in this chapter until such tax lien has been due and 48 unpaid for a period of at least three years from the date on which the 49 tax, assessment or other legal charge represented thereby became a lien. 50 § 20. Paragraph 5 of subdivision c of section 11-405 of the adminis- 51 trative code of the city of New York, as added by local law number 37 of 52 the city of New York for the year 1996, is amended to read as follows: 53 (5) Notwithstanding paragraph one, two or three of this subdivision, 54 with respect to installment agreements duly made, executed and filed on 55 or after the date on which this paragraph takes effect, the commissioner 56 of finance may also exclude or thereafter remove from such list anyA. 5241 18 1 parcel of class one, class one-a or class two real property, other than 2 a parcel described in paragraph four of this subdivision, as to which an 3 agreement has been duly made, executed and filed with such commissioner 4 for the payment of the delinquent taxes, assessments or other legal 5 charges, and the interest and penalties thereon, in installments. The 6 first installment thereof shall be paid upon the filing of the install- 7 ment agreement with the commissioner and shall be in an amount equal to 8 not less than fifteen percent of the total amount of such delinquent 9 taxes, assessments or other legal charges and the interest and penalties 10 thereon. The remaining installments, which shall be twice the number of 11 unpaid quarters of real estate taxes or the equivalent thereof, but 12 which shall in no event exceed thirty-two in number, shall be payable 13 quarterly on the first days of July, October, January and April. For the 14 purposes of calculating the number of such remaining installments, 15 unpaid real estate taxes that are due and payable on other than a quar- 16 terly basis shall be deemed to be payable on a quarterly basis. 17 § 21. Section 581 of the real property tax law is REPEALED. 18 § 22. Subdivision 1 of section 339-y of the real property law, as 19 amended by chapter 218 of the laws of 1986, subparagraph (ii) of para- 20 graph (d) as amended by chapter 223 of the laws of 1989, paragraph (e) 21 as added by chapter 135 of the laws of 1996 and paragraph (f) as added 22 by chapter 293 of the laws of 1997, is amended to read as follows: 23 1. (a) With respect to all property submitted to the provisions of 24 this article other than property which is the subject of a qualified 25 leasehold condominium, each unit and its common interest, not including 26 any personal property, shall be deemed to be a parcel and shall be 27 subject to separate assessment and taxation by each assessing unit, 28 school district, special district, county or other taxing unit, for all 29 types of taxes authorized by law including but not limited to special ad 30 valorem levies and special assessments, except that the foregoing shall 31 not apply to a unit held under lease or sublease unless the declaration 32 requires the unit owner to pay all taxes attributable to his unit. 33 Neither the building, the property nor any of the common elements shall 34 be deemed to be a parcel. 35 (b) [In no event shall the aggregate of the assessment of the units36plus their common interests exceed the total valuation of the property37were the property assessed as a parcel.38(c)] For the purposes of this and the next succeeding section the 39 terms "assessing unit", "assessment", "parcel", "special ad valorem 40 levy", "special assessment", "special district", "taxation" and "taxes" 41 shall have the meanings specified in section one hundred two of the real 42 property tax law. 43 [(d) The provisions of paragraph (b) of this subdivision shall not44apply to such real property classified within:45(i) on and after January first, nineteen hundred eighty-six, class one46of section one thousand eight hundred two of the real property tax law;47or48(ii) on and after January first, nineteen hundred eighty-four, the49homestead class of an approved assessing unit which has adopted the50provisions of section one thousand nine hundred three of the real prop-51erty tax law, or the homestead class of the portion outside an approved52assessing unit of an eligible split school district which has adopted53the provisions of section nineteen hundred three-a of the real property54tax law; provided, however, that, in an approved assessing unit which55adopted the provisions of section one thousand nine hundred three of the56real property tax law prior to the effective date of this subdivision,A. 5241 19 1paragraph (b) of this subdivision shall apply to all such real property2(i) which is classified within the homestead class pursuant to paragraph3one of subdivision (e) of section one thousand nine hundred one of the4real property tax law and (ii) which, regardless of classification, was5on the assessment roll prior to the effective date of this subdivision6unless the governing body of such approved assessing unit provides by7local law adopted after a public hearing, prior to the taxable status8date of such assessing unit next occurring after December thirty-first,9nineteen hundred eighty-three, that such paragraph (b) shall not apply10to such real property to which this clause applies. Provided further,11however, real property subject to the provisions of this subparagraph12shall be assessed pursuant to subdivision two of section five hundred13eighty-one of the real property tax law.14(e)] (c) On the first assessment roll with a taxable status date on or 15 after the effective date of a declaration filed with the recording offi- 16 cer and on every assessment roll thereafter, the assessor shall enter 17 each unit as a parcel, as provided in paragraph (a) of this subdivision, 18 based upon the condition and ownership of each such unit on the appro- 19 priate valuation and taxable status dates. Units owned by a developer 20 may be entered as a single parcel with a parcel description correspond- 21 ing to the entire development, including the land under such develop- 22 ment, and excluding those units appearing separately. Upon the first 23 assessment roll where each unit is separately assessed, only an individ- 24 ual unit and its common interest shall constitute a parcel. 25 [(f) The provisions of paragraph (b) of this subdivision shall not26apply to a converted condominium unit in a municipal corporation other27than a special assessing unit, which has adopted, prior to the taxable28status date of the assessment roll upon which its taxes will be levied,29a local law or, for a school district, a resolution providing that the30provisions of paragraph (b) of this subdivision shall not apply to a31converted condominium unit within that municipal corporation. A32converted condominium unit for purposes of this paragraph shall mean a33dwelling unit held in condominium form of ownership that has previously34been on an assessment roll as a dwelling unit in other than condominium35form of ownership, and has not been previously subject to the provisions36of paragraph (b) of this subdivision.] 37 § 23. This act shall take effect on the first of January next succeed- 38 ing the date on which it shall have become a law and shall apply to 39 assessment rolls prepared pursuant to a taxable status date occurring on 40 or after such date. Effective immediately, the addition, amendment 41 and/or repeal of any rule or regulation necessary for the implementation 42 of this act on its effective date are authorized and directed to be made 43 and completed on or before such effective date.
