Section 11-301
§ 11-301 When taxes, assessments, sewer rents, sewer surcharges and
water rents to be liens on land assessed. All taxes and all assessments
and all sewer rents, sewer surcharges and water rents, and the interest
and charges thereon, which may be laid or may have heretofore been laid,
upon any real estate now in the city, shall continue to be, until paid,
a lien thereon, and shall be preferred in payment to all other charges.
The words "water rents" whenever they are used in this chapter shall
include uniform annual charges and extra and miscellaneous charges for
the supply of water, charges in accordance with meter rates, minimum
charges for the supply of water by meter, annual service charges and
charges for meters and their connections and for their setting, repair
and maintenance, penalties and fines and all lawful charges for the
supply of water imposed pursuant to the New York city municipal water
finance authority act, which is set forth in title two-A of article five
of the public authorities law. Charges for expense of meters, their
connections, setting, repair or maintenance shall not be due or become a
charge or lien on the premises where a water meter shall be installed or
against which a charge shall be made, until such charge shall have been
definitely fixed by the commissioner of environmental protection, and an
entry of the amount thereof shall have been made with the date of such
entry in the book in which the charges for water supplied by meter
against such premises are to be entered. A charge in accordance with
meter rates or minimum charges for the supply of water measured by
meter, and a service charge shall not be due or become a lien or charge
upon the premises where such meter is installed until an entry shall
have been made indicating that such premises are metered, with the date
of such entry in the book in which the charges for water by meter
measurement against such premises are to be entered. The words "sewer
rents" when used in this chapter shall mean any rents or charges imposed
pursuant to section 24-514 of the code or pursuant to the New York city
municipal water finance authority act, which is set forth in title two-A
of article five of the public authorities law. The words "sewer
surcharges" when used in this chapter shall mean the charges imposed
pursuant to section 24-523 of the code or pursuant to the New York city
municipal water finance authority act, which is set forth in title two-A
of article five of the public authorities law. Whenever an increase in
the amount of uniform annual charges or extra or miscellaneous charges
shall have been made or a charge shall have been made for water services
for any building completed subsequent to the first day of January in
each year, the amount of such increase of the charge or new charge for
such new building shall not be due or become a lien or charge against
the premises until the amounts thereof shall have been entered with the
date of such entries, respectively, in the books in which the uniform
annual charges and extra or miscellaneous charges against such premises
are to be entered. The words "tax lien" when used in this chapter shall
mean the lien arising pursuant to the provisions of this chapter or
pursuant to the New York city municipal water finance authority act,
which is set forth in title two-A of article five of the public
authorities law, as a result of the nonpayment of taxes, assessments,
sewer rents, sewer surcharges, water rents, any other charges that are
made a lien subject to the provisions of this chapter, the costs of any
advertisements and notices given pursuant to this chapter, any other
charges that are due and payable, a surcharge pursuant to section 11-332
of this chapter if the tax lien is sold, interest and penalties thereon
and the right of the city to receive such amounts. The words "tax lien
certificate" when used in this chapter shall mean the instrument
evidencing a tax lien and executed by the commissioner of finance or his
or her designee at such time as such lien is transferred to a purchaser
upon sale of such lien by the city.
Section 11-302
§ 11-302 Interest rates not to be reduced. The commissioner of finance
shall not reduce the rate of interest upon any taxes or assessment below
the amount fixed by law.
Section 11-302.1
§ 11-302.1 Error in record of payment of tax or assessment.
(a) If the records of the department of finance show a charge as paid
due to a misapplied payment or other error, and the department later
corrects the records, interest shall not be imposed until after the
department (i) corrects the error and (ii) sends a statement of account
or other similar bill or notice stating the amount due and when the
charge must be paid to avoid the accrual of interest.
(b) The provisions of this section shall not apply to an installment
of tax or an assessment for which payment, made electronically, by
check, or by other means, was dishonored.
(c) The provisions of this section shall not apply where the error in
the records of the department was made as a result of fraud or other
criminal conduct by the taxpayer or any person acting on his or her
behalf or at his or her request.
Section 11-303
§ 11-303 Arrears to be provided for in assessment rolls. There shall
be ruled in the yearly assessment rolls of the taxes in each section or
ward, a column headed "arrears," in which the commissioner of finance or
his or her designee shall annually before any taxes for the year are
collected, cause to be entered the word "arrears" opposite to the ward,
lot, town, block and map numbers on which any arrears of taxes, sewer
rents, sewer surcharges or water rents, and interest and penalties
thereon shall be due, or on which any assessment and interest and
penalties thereon shall remain unpaid which was due or confirmed one
month prior to the first of July, then last past.
Section 11-304
§ 11-304 Bills for taxes to show arrears. There shall be ruled a
column for "arrears" in every bill rendered for taxes for lots on which
such arrears or assessments, sewer rents, sewer surcharges or water
rents, and interest and penalties thereon may be due as aforesaid, or
may have been sold and yet be redeemable, in which shall be written in a
conspicuous place, "arrears". The columns for arrears shall indicate
lots sold for arrears, or to be sold therefor; arrears to be paid and
lots redeemed at the department of finance.
Section 11-305
§ 11-305 Commissioner of finance to publish notice of confirmation of
assessments. It shall be the duty of the commissioner of finance to give
public notice, by advertisement, for at least ten days, in the City
Record and as soon as practicable and within ten days after the
confirmation of any assessment, that the same has been confirmed,
specifying the title of such assessment, and the date of its
confirmation, and also the date of entry in the record of titles of
assessments kept in the department of finance, addressed as a class to
all persons, owners of property affected by any such assessment, that
unless the amount assessed for benefit on any person or property shall
be paid within ninety days after the date of the entry of any such
assessment, interest shall be thereafter collected thereon as provided
in section 11-306 of this chapter.
Section 11-306
§ 11-306 Interest to be charged if assessments unpaid for ninety days;
payment in installments. If any assessment shall remain unpaid for the
period of ninety days after the date of the entry thereof on the record
of titles of assessments, it shall be the duty of the commissioner of
finance or his or her designee to charge, collect and receive interest
thereon, at the rate of seven percent per annum, to be calculated to the
date of payment from the date when such assessment became a lien as
provided by section three hundred fourteen of the charter in force at
the time of the adoption of the New York city charter by referendum in
the year nineteen hundred sixty-one, provided, however, that the
commissioner of finance or his or her designee shall accept and credit
as payments on account of assessments now or hereafter levied against
any parcel or plot of property, such sums of money not less than
twenty-five dollars or multiples thereof in amount as may be tendered
for payment on account of any assessment now or hereafter levied against
any property. Upon requisition by the commissioner of finance for the
assessed valuation of the property affected by any assessment, the
president of the tax commission, or any tax commissioner duly assigned
by him or her, shall forthwith certify the same to the commissioner of
finance.
Section 11-307
§ 11-307 Payments in installments of assessments heretofore or
hereafter confirmed. Upon the application in writing of the owner of a
parcel of real property affected by an unpaid assessment heretofore or
hereafter confirmed the amount of which is one hundred dollars or more,
the commissioner of finance shall divide the assessment upon such parcel
into fifteen parts or, if the application so requests, into five parts,
as nearly equal as may be, or if the amount of such assessment is fifty
dollars or more but less than one hundred dollars the commissioner of
finance shall divide the assessment upon such parcel into five parts as
nearly equal as may be. One part thereof in any event shall be due and
payable, and in each case as many more of such parts shall be due and
payable as years may have elapsed since the entry of such original
assessment for collection. Such parts thereof with interest at the rate
of seven percent per annum on the amount of the assessment unpaid shall
be paid at the time of application as a condition of the extension of
time of payment of the remainder as provided in this section. Upon
payment of such parts and interests, the balance of such assessments
shall cease to be a lien upon such real property except as hereinafter
provided; and the remaining parts shall be paid in annual installments
as herein provided. Of such installments the first, with interest at the
rate of four percent thereon, and on the installments thereafter to
become due, from the date of payment of the parts of such assessment
paid as hereinbefore provided, shall become due and payable and be a
lien on the real property assessed, on the next ensuing anniversary of
the date of entry of the assessment in the record of titles of
assessments confirmed; and one, with interest at the rate of four
percent per annum thereon and on the installments thereafter to become
due shall become due and payable and be a lien upon the real property
assessed, annually thereafter. After the time herein specified for
annual installments and interest to become due, the amount of the lien
thereon shall bear interest at the rate of seven percent per annum. Any
installment assessment shall not be further divided into installments.
The first installment of an assessment divided within the ninety-day
period provided by section 11-306 of this chapter during which
assessment may be paid without interest shall not be subject to
interest, but the second installment with interest at the rate of four
percent per annum from the original date of entry shall become due and
payable and be a lien upon the real property on the anniversary date of
entry of the assessment and the remaining installments with interest
shall become due and payable and be a lien on the real property as
hereinbefore provided. The installments not due with interest at the
rate of four percent per annum to the date of payment may be paid at any
time. The provisions of this chapter with reference to the sale of tax
liens shall apply to the several unpaid installments and the interest
thereon in the same manner as if each installment and the interest
thereon had been imposed as an assessment payable in one payment, at the
time such installment became a lien. In the event of the acquisition by
condemnation by the city for public purposes any property upon which
there are installments not due, such installments shall become due as of
the date of the entry of the final order of the supreme court or the
confirmation of the report of the commissioners in the condemnation
proceedings, and shall be set off against an award that may be made for
the property acquired.
When an award for damage shall accrue to the same person who is or was
at the time the assessment was confirmed liable for the assessments for
benefit on the abutting property in the same proceedings, only the
portion of the assessment in excess of such award may be considered in
levying in installments under the provisions of this section. Except as
provided in this section, no such annual installment shall be a lien or
deemed to be an encumbrance upon the title to the real property assessed
until it becomes due as herein provided.
Section 11-308
§ 11-308 Apportionment of assessment. If a sum of money in gross has
been or shall be assessed upon any lands or premises in the city, any
person or persons claiming any divided or undivided part thereof may pay
such part of the sums of money so assessed, also of the interest and
charges due or charged thereon, as the commissioner of finance may deem
to be just and equitable. The remainder of the sum of money so assessed,
together with the interest and charges, shall be a lien upon the residue
of the land and premises only, and the tax lien upon such residue may be
sold in pursuance of the provisions of this chapter, to satisfy the
residue of such assessment, interest, or charges thereon, in the same
manner as though the residue of such assessment had been imposed upon
such residue of such land or premises.
Section 11-309
§ 11-309 Notifying taxpayers of assessments. a. The owner of any lot,
piece or parcel of land in the city of New York or any person interested
in such lot, piece or parcel, may file with the department of finance, a
statement containing a brief description of such land, together with the
section, block and lot number thereof, or such other identifying
information as at the time is established by the department of finance,
and a statement of the applicant's interest therein, together with a
written request that such lot, piece or parcel of land be registered in
the name of the applicant. In such statement the applicant shall
designate a post office address to which notifications addressed to such
applicant shall be sent. A brief description of such lot, piece or
parcel of land corresponding to the description thereof in the statement
so filed, together with the name of the applicant and his or her post
office address and the date of such application, shall thereupon be
registered in the department of finance.
b. As soon as any assessment for a local improvement shall have been
confirmed, including assessments confirmed by a court of record, and the
list thereof shall have been entered and filed in the department of
finance, such assessment list shall be examined and thereupon, within
twenty days after such entry there shall be mailed a notice addressed to
each person in whose name any lot, piece or parcel of land, affected by
such assessment, is registered, at the post office address registered in
the records of the department of finance, which notice shall contain the
brief description of the lot, piece or parcel of land registered in the
name of the person to whom such notice is addressed, together with the
amount assessed thereon, date of entry, and title of the improvement for
which such assessment is made, and a statement of the rate of interest
or penalty imposed for the nonpayment of such assessment, and the date
from which the interest or penalty will be computed. Failure to comply
with the provisions herein, however, shall in no manner affect the
validity or collectibility of any assessment heretofore or hereafter
confirmed, nor shall any claim arise or exist against the comptroller,
the commissioner of finance, or any officer of the city by reason of
such failure.
c. The commissioner of finance or his or her designee shall for the
purpose of this section provide appropriate records for each section of
the city, included within the respective boroughs, as the same shall
appear upon the tax maps of the city.
Section 11-310
§ 11-310 Water charges and sewer rents to be transmitted to
commissioner of finance. The commissioner of environmental protection
shall cause to be transmitted to the commissioner of finance an account
of all water rents, charges, fines and penalties and all sewer rents,
charges, fines and penalties as the same become due or accrue.
Section 11-311
§ 11-311 Sewer surcharges to be transmitted to commissioner of
finance. The commissioner of environmental protection shall cause to be
transmitted to the commissioner of finance an account of all sewer
surcharges, fines and penalties as the same become due or accrue.
Section 11-312
§ 11-312 Water rents; when payable; penalty for nonpayment. a.
One-half (i) the uniform annual water charges and extra and
miscellaneous charges for water not metered and (ii) annual service
charges shall become due and payable, in advance if entered on January
first, nineteen hundred seventy-four for the period commencing January
first, nineteen hundred seventy-four and ending June thirtieth, nineteen
hundred seventy-four. Commencing on June thirtieth, nineteen hundred
seventy-four, uniform annual water charges and extra and miscellaneous
charges for water not metered and annual service charges shall be due
and payable in advance on the thirtieth day of June in each year, if
entered. If any of such rents and charges which become due and payable
on or before June thirtieth, nineteen hundred seventy-six shall not have
been paid to the commissioner of finance or his or her designee on or
before the last day of the month following the month of entry, it shall
be the duty of the commissioner of finance or his or her designee to
charge, collect and receive interest thereon to be calculated at the
rate of seven percent per annum from the date when such rents and
charges became due and payable to December thirty-first, nineteen
hundred seventy-six, and at the rate of fifteen percent per annum from
January first, nineteen hundred seventy-seven to the date of payment. If
any of such rents and charges which shall become due and payable on or
after June thirtieth, nineteen hundred seventy-seven are not paid to the
commissioner of finance or his or her designee on or before the last day
of the month following the month of entry, it shall be the duty of the
commissioner of finance or his or her designee to charge, collect and
receive interest thereon to be calculated at the rate of fifteen percent
per annum from the date when such rents and charges became due and
payable to the date of payment. If not so entered and payable, but
entered at any time subsequent thereto, they shall be due and payable
when entered and notice thereof shall be mailed within five days of such
entry to the premises against which they are imposed addressed to either
the owner or the occupant and, if entered on or before December
thirty-first, nineteen hundred seventy-six but not paid on or before the
last day of the month following the month of entry, it shall be the duty
of the commissioner of finance or his or her designee to charge, collect
and receive interest thereon to be calculated at the rate of seven
percent per annum from the date of entry to December thirty-first,
nineteen hundred seventy-six, and at the rate of fifteen percent per
annum from January first, nineteen hundred seventy-seven to the date of
payment; if entered on or after January first, nineteen hundred
seventy-seven but not paid on or before the last day of the month
following the month of entry, it shall be the duty of the commissioner
of finance or his or her designee to charge, collect and receive
interest thereon to be calculated at the rate of fifteen percent per
annum from the date of entry to the date of payment.
b. All charges for meters and their connections and for their setting,
repair and maintenance, and all charges in accordance with meter rates
for supply of water measured by meter, including minimum charges for the
supply of water measured by meter, shall be due and payable when
entered, and notice thereof shall be mailed within five days of such
entry stating the amount due and the nature of the rent or charge to the
last known address of the person whose name appears on the record of
such rents and charges as being the owner, occupant or agent or, where
no name appears, to the premises addressed to either the owner or the
occupant, and if entered on or before December thirty-first, nineteen
hundred seventy-six but not paid on or before the last day of the month
following the month of entry, it shall be the duty of the commissioner
of finance or his or her designee to charge, collect and receive
interest thereon to be calculated at the rate of seven percent per annum
from the date of entry to December thirty-first, nineteen hundred
seventy-six, and at the rate of fifteen percent per annum from January
first, nineteen hundred seventy-seven to the date of payment; if entered
on or after January first, nineteen hundred seventy-seven but not paid
on or before the thirtieth day following the date of entry, it shall be
the duty of the commissioner of finance or his or her designee to
charge, collect and receive interest thereon to be calculated at the
rate of fifteen percent per annum from the date of entry to the date of
payment.
c. No later than the twenty-fifth day of May in each year, the banking
commission shall transmit a written recommendation to the council of a
proposed interest rate to be charged for nonpayment of water rents. In
making such recommendations the commission shall consider the prevailing
interest rates charged for commercial loans extended to prime borrowers
by commercial banks operating in the city and shall propose a rate of at
least six per centum per annum greater than such rates. The council may
by resolution adopt an interest rate to be charged for nonpayment of
water rents pursuant to section 11-224 of the code and, for nonpayment
of water rents that become due and payable on or after July first, two
thousand five, pursuant to section 11-224.1 of the code, and may specify
in such resolution the date on which such interest rate is to take
effect.
Section 11-313
§ 11-313 Sewer rents; when payable; penalty for nonpayment. a. As used
in this section:
1. The term "metered premises" shall mean premises, or any part
thereof, (a) to which water is supplied by the municipal water supply
system or by a private water company, and (b) at which the quantity of
water supplied is measured by a water meter.
2. The term "unmetered premises" shall mean premises, or any part
thereof, (a) to which water is supplied by the municipal water supply
system or by a private water company, and (b) at which the quantity of
water supplied is not measured by a water meter.
b. The sewer rents charged against metered premises in accordance with
the provisions of paragraphs two and three of subdivision b of section
24-514 of the code and the rules duly promulgated pursuant to such
section, including the minimum rents for the use of the sewer system,
charged pursuant to such section and rules, and the sewer rents charged
against any premises in accordance with the provisions of paragraphs
four and five of subdivision b of section 24-514 of the code and rules
duly promulgated pursuant to such section, including the minimum rents
for the use of the sewer system, charged pursuant to such section and
rules shall become due and shall become a charge or lien on the premises
when the amount thereof shall have been fixed by the commissioner of
environmental protection, and an entry thereof shall have been made
against such premises with the date of such entry, in the book in which
sewer rents are to be entered. The sewer surcharges charged against any
premises pursuant to section 24-523 of the code shall become due and
shall become a charge or lien on the premises when the amount thereof
shall have been fixed by the commissioner of environmental protection
and an entry thereof shall have been made against such premises in the
book in which sewer surcharges are to be entered. A notice thereof,
stating the amount due and the nature of the rent, surcharge or charge
shall be mailed, within five days after such entry, to the last known
address of the person whose name appears upon the records in the office
of the department of finance as being the owner, occupant or agent or,
where no name appears, to the premises addressed to either the owner or
the occupant. If such rent, surcharge or charge shall have been entered
on or before December thirty-first, nineteen hundred seventy-six but not
paid on or before the last day of the month following the month of
entry, it shall be the duty of the commissioner of finance or his or her
designee to charge, collect and receive interest thereon to be
calculated at the rate of seven percent per annum from the date of entry
to December thirty-first, nineteen hundred seventy-six, and at the rate
of fifteen percent per annum from January first, nineteen hundred
seventy-seven to the date of payment; if entered on or after January
first, nineteen hundred seventy-seven but not paid on or before the
thirtieth day following the date of entry, it shall be the duty of the
commissioner of finance or his or her designee to charge, collect and
receive interest thereon to be calculated at the rate of fifteen percent
per annum from the date of entry to the date of payment. The rents or
charges for the use of the sewer system charged during any specified
period of time pursuant to the provisions of section 24-514 of the code
and the rules promulgated thereunder shall be computed, in accordance
with the provisions of such section and the rules duly promulgated
thereunder, on the basis of water rents or charges computed for the same
period.
c. Sewer rents charged against unmetered premises in accordance with
the provisions of paragraphs two and three of subdivision b of section
24-514 of the code and the rules duly promulgated pursuant to such
section, for the use of the sewer system during the one-year period
commencing on the first day of July of each year, shall be due and
payable and shall become a charge or lien on the premises on the first
day of January following such first day of July, if entered, except that
commencing on June thirtieth, nineteen hundred seventy-four such sewer
rents shall be due and payable in advance on the thirtieth day of June
in each year, if entered, and shall become a charge or lien on the
premises on such date. If any of such rents or charges which became due
and payable on or before June thirtieth, nineteen hundred seventy-six
shall not have been paid to the commissioner of finance or his or her
designee within thirty days after such first day of January, or,
commencing on the thirtieth day of June, nineteen hundred seventy-four,
on or before the last day of the month following the month of entry, it
shall be the duty of the commissioner of finance or his or her designee
to charge, collect and receive interest thereon to be calculated at the
rate of seven percent per annum from the date when such charges became
due and payable to December thirty-first, nineteen hundred seventy-six,
and at the rate of fifteen percent per annum from January first,
nineteen hundred seventy-seven to the date of payment. If any of such
rents or charges which shall become due and payable on or after June
thirtieth, nineteen hundred seventy-seven are not paid to the
commissioner of finance or his or her designee on or before the last day
of the month following the month of entry, it shall be the duty of the
commissioner of finance or his or her designee to charge, collect and
receive interest thereon to be calculated at the rate of fifteen percent
per annum from the date when such rents or charges became due and
payable to the date of payment. If not so entered and payable, but
entered at any time subsequent thereto, they shall be due and payable
and shall become a charge or lien on the premises when entered and
notice thereof shall be mailed within five days after such entry, to the
last known address of the person whose name appears upon the records in
the department of finance as the owner or the occupant or if no name
appears, to the premises addressed to either the owner or occupant. If
any of such rents or charges which were entered on or before December
thirty-first, nineteen hundred seventy-six but not paid on or before the
last day of the month following the month of entry, it shall be the duty
of the commissioner of finance or his or her designee to charge, collect
and receive interest thereon to be calculated at the rate of seven
percent per annum from the date of entry to December thirty-first,
nineteen hundred seventy-six, and at the rate of fifteen percent per
annum from January first, nineteen hundred seventy-seven to the date of
payment; if entered on or after January first, nineteen hundred
seventy-seven but not paid on or before the last day of the month
following the month of entry, it shall be the duty of the commissioner
of finance or his or her designee to charge, collect and receive
interest thereon to be calculated at the rate of fifteen percent per
annum from the date of entry to the date of payment. The sewer rents
charged against unmetered premises for the use of the sewer system
during the one-year period commencing on the first day of July of each
year shall be computed in accordance with the provisions of section
24-514 of the code and the rules duly promulgated thereunder, upon the
basis of water rents or charges computed for the same period.
d. Whenever an increase in the amount of the sewer rent charged
against unmetered premises shall have been made or a charge shall have
been made for sewer services for any building completed subsequent to
the first day of July in each year, the amount of such increase of the
charge or new charge for such new building shall not be due or become a
lien or charge against the premises until the amounts thereof shall have
been entered with the date of such entries, respectively, in the books
in which sewer rents charged against such premises are to be entered.
e. No later than the twenty-fifth day of May in each year, the banking
commission shall transmit a written recommendation to the council of a
proposed interest rate to be charged for nonpayment of sewer rents. In
making such recommendations the commission shall consider the prevailing
interest rates charged for commercial loans extended to prime borrowers
by commercial banks operating in the city and shall propose a rate of at
least six per centum per annum greater than such rates. The council may
by resolution adopt an interest rate to be charged for nonpayment of
sewer rents pursuant to section 11-224 of the code and, for nonpayment
of sewer rents that become due and payable on or after July first, two
thousand five, pursuant to section 11-224.1 of the code, and may specify
in such resolution the date on which such interest rate is to take
effect.
Section 11-314
§ 11-314 Notice of rules and regulations; penalty for nonpayment;
water supply cut off. The rates and charges for supply of water, the
annual service charges and minimum charges, the sewer rents, the sewer
surcharges, the rules and regulations concerning the use of water, all
other rules and regulations affecting users of water or concerning
charges for supply of water, restrictions of the use of water,
installation of meters, and all rules and regulations affecting property
connected with the sewer system, penalties and fines for violations of
rules and regulations shall be printed on each bill and permit so far as
in the judgment of the commissioner of environmental protection they are
applicable. This section and such printing and the printing of this
section on such bills and permits shall be sufficient notice to owners,
tenants or occupants of premises to authorize the imposition and
recovery of any charges, surcharges and fines imposed under such rules
and regulations and of any penalties imposed in pursuance of this
chapter in addition to cutting off the supply of water. Where water
charges payable in advance or sewer rents or charges payable as provided
in subdivision c of section 11-313 of this chapter, are not paid within
the period covered by such charges or rents, and a notice of such
nonpayment is mailed by the commissioner of finance to the premises
addressed to "owner or occupant," the commissioner of environmental
protection may shut off the supply of water to such premises. Where
water charges not payable in advance or sewer rents, sewer surcharges or
charges payable as provided in subdivisions b and d of section 11-313 of
this chapter have been made by the department and remain unpaid for more
than thirty days or where the commissioner of environmental protection
has certified that there is a flagrant and continued violation of a
provision or provisions of section 24-523 of the code or of any rule or
regulation promulgated pursuant thereto or of any order of the
commissioner of environmental protection issued pursuant thereto, after
notice thereof mailed to the premises addressed to "owner or occupant,"
the commissioner of environmental protection may shut off the supply of
water to the premises.
Section 11-315
§ 11-315 Enforcement of collection of sewer rents, sewer surcharges
and water rents. Sewer rents, sewer surcharges, charges, penalties and
fines, and interest thereon, and water rents, charges, penalties and
fines, and interest thereon, shall after they are payable to the
commissioner of finance or his or her designee be enforced in the manner
provided in this chapter and chapter four of this title. In addition to
collecting sewer rents, sewer surcharges, charges, penalties and fines
and interest thereon and water rents, charges, penalties and fines and
interest thereon in the manner provided in this chapter and chapter four
of this title, the city may maintain an action for their recovery
against the person for whose benefit or by whom the water is taken or
used or for whose benefit or by whom sewer service is used.
Section 11-316
§ 11-316 Bills of arrears of taxes, assessments, sewer rents, sewer
surcharges and water rents, any other charges that are made a lien
subject to the provisions of this chapter, and interest and penalties
thereon to be furnished when requested. The commissioner of finance or
his or her designee, upon the written request of the owner, the proposed
vendee under a contract of sale, a mortgagee, any person having a vested
or contingent interest in any lot or lots or their duly authorized
agent, or any person who has made a filing pursuant to section 11-309 of
this chapter shall furnish a bill of all arrears of taxes on any lot or
lots due prior to the first of September, then last past, of sewer
rents, sewer surcharges and water rents, assessments, any other charges
that are made a lien subject to the provisions of this chapter, and
interest and penalties thereon, which are due and payable. Upon the
payment of such bill which shall be called a bill of arrears the receipt
of the commissioner of finance or his or her designee thereon shall be
conclusive evidence of such payment. The commissioner of finance or his
or her designee shall cause to be kept an account of amounts so
collected, and the certificate of the commissioner of finance or his or
her designee, that there are no tax liens on such lot or lots, shall
forever free such lot or lots from all liens of taxes, sewer rents,
sewer surcharges or water rents, assessments, any other charges that are
made a lien subject to the provisions of this chapter, and interest and
penalties thereon that are due and payable prior to the date of such
receipt or certificate, but not from the lien of any tax lien duly sold
and not theretofore satisfied.
Section 11-317
§ 11-317 Fees for searches to be added to bills. Fees for such
searches shall be included in the bills mentioned in section 11-316 of
this chapter, and also charges for certificates, which shall be given by
the commissioner of finance or his or her designee respecting lots on
which there may be no arrears when searches are required. Such fees
shall be regulated by local law.
Section 11-318
§ 11-318 Fee for certified search and bill of arrears. A fee of
twenty-five dollars shall be paid to and collected by the commissioner
of finance or his or her designee on his or her furnishing a certified
search and bill of arrears on each lot or piece of property mentioned or
referred to in the written request therefor. The commissioner of finance
shall be authorized to waive or reduce such fee in connection with any
sale of a tax lien or tax liens pursuant to this chapter.
Section 11-319
§ 11-319 Sales of tax liens. a. A tax lien or tax liens on a property
or any component of the amount thereof may be sold by the city as
authorized by subdivision b of this section, when such tax lien or tax
liens shall have remained unpaid in whole or in part for one year,
provided, however, that a tax lien or tax liens on any class one
property or on class two property that is a residential condominium or
residential cooperative, as such classes of property are defined in
subdivision one of section eighteen hundred two of the real property tax
law, may be sold by the city only when the real property tax component
of such tax lien or tax liens shall have remained unpaid in whole or in
part for three years or, in the case of any class two residential
property owned by a company organized pursuant to article XI of the
state private housing finance law that is not a residential condominium
or a residential cooperative, as such class of property is defined in
subdivision one of section eighteen hundred two of the real property tax
law, for two years, and equals or exceeds the sum of five thousand
dollars or, in the case of abandoned class one property or abandoned
class two property that is a residential condominium or residential
cooperative, for eighteen months, and after such sale, shall be
transferred, in the manner provided by this chapter, and provided,
further, however, that (i) the real property tax component of such tax
lien may not be sold pursuant to this subdivision on any residential
real property in class one that is receiving an exemption pursuant to
section 11-245.3 or 11-245.4 of this title, or pursuant to section four
hundred fifty-eight of the real property tax law with respect to real
property purchased with payments received as prisoner of war
compensation from the United States government, or pursuant to paragraph
(b) or (c) of subdivision two of section four hundred fifty-eight-a of
the real property tax law, or where the owner of such residential real
property in class one is receiving benefits in accordance with
department of finance memorandum 05-3, or any successor memorandum
thereto, relating to active duty military personnel, or where the owner
of such residential real property in class one has been allowed a credit
pursuant to subsection (e) of section six hundred six of the tax law for
the calendar year in which the date of the first publication, pursuant
to subdivision a of section 11-320 of this chapter, of the notice of
sale, occurs or for the calendar year immediately preceding such date
and (ii) the sewer rents component, sewer surcharges component or water
rents component of such tax lien may not be sold pursuant to this
subdivision on any one family residential real property in class one or
on any two or three family residential real property in class one that
is receiving an exemption pursuant to section 11-245.3 or 11-245.4 of
this title, or pursuant to section four hundred fifty-eight of the real
property tax law with respect to real property purchased with payments
received as prisoner of war compensation from the United States
government, or pursuant to paragraph (b) or (c) of subdivision two of
section four hundred fifty-eight-a of the real property tax law, or
where the owner of any two or three family residential real property in
class one is receiving benefits in accordance with department of finance
memorandum 05-3, or any successor memorandum thereto, relating to active
duty military personnel, or where the owner of any two or three family
residential real property in class one has been allowed a credit
pursuant to subsection (e) of section six hundred six of the tax law for
the calendar year in which the date of the first publication, pursuant
to subdivision a of section 11-320 of this chapter, of the notice of
sale, occurs or for the calendar year immediately preceding such date. A
tax lien or tax liens on any property classified as a class two
property, except a class two property that is a residential condominium
or residential cooperative, or a class two residential property owned by
a company organized pursuant to article XI of the state private housing
finance law that is not a residential condominium or a residential
cooperative, or class three property, as such classes of property are
defined in subdivision one of section eighteen hundred two of the real
property tax law, shall not be sold by the city unless such tax lien or
tax liens include a real property tax component as of the date of the
first publication, pursuant to subdivision a of section 11-320 of this
chapter, of the notice of sale. Notwithstanding any provision of this
subdivision to the contrary, any such tax lien or tax liens that remain
unpaid in whole or in part after such date may be sold regardless of
whether such tax lien or tax liens include a real property tax
component. A tax lien or tax liens on a property classified as a class
four property, as such class of property is defined in subdivision one
of section eighteen hundred two of the real property tax law, shall not
be sold by the city unless such tax lien or tax liens include a real
property tax component or sewer rents component or sewer surcharges
component or water rents component or emergency repair charges
component, where such emergency repair charges accrued on or after
January first, two thousand six and are made a lien pursuant to section
27-2144 of this code, as of the date of the first publication, pursuant
to subdivision a of section 11-320 of this chapter, of the notice of
sale, provided, however, that any tax lien or tax liens that remain
unpaid in whole or in part after such date may be sold regardless of
whether such tax lien or tax liens include a real property tax
component, sewer rents component, sewer surcharges component, water
rents component or emergency repair charges component. For purposes of
this subdivision, the words "real property tax" shall not include an
assessment or charge upon property imposed pursuant to section 25-411 of
the administrative code. A sale of a tax lien or tax liens shall
include, in addition to such lien or liens that have remained unpaid in
whole or in part for one year, or, in the case of any class one property
or class two property that is a residential condominium or residential
cooperative, when the real property tax component of such lien or liens
has remained unpaid in whole or in part for three years, or, in the case
of any class two residential property owned by a company organized
pursuant to article XI of the state private housing finance law that is
not a residential condominium or a residential cooperative, when the
real property tax component of such lien or liens has remained unpaid in
whole or in part for two years, and equals or exceeds the sum of five
thousand dollars, any taxes, assessments, sewer rents, sewer surcharges,
water rents, any other charges that are made a lien subject to the
provisions of this chapter, the costs of any advertisements and notices
given pursuant to this chapter, any other charges that are due and
payable, a surcharge pursuant to section 11-332 of this chapter, and
interest and penalties thereon or such component of the amount thereof
as shall be determined by the commissioner of finance. The commissioner
of finance may promulgate rules defining "abandoned" property, as such
term is used in this subdivision.
a-1. A subsequent tax lien or tax liens on a property or any component
of the amount thereof may be sold by the city pursuant to this chapter,
provided, however, that notwithstanding any provision in this chapter to
the contrary, such tax lien or tax liens may be sold regardless of
whether such tax lien or tax liens have remained unpaid in whole or in
part for one year and, notwithstanding any provision in this chapter to
the contrary, in the case of any class one property or class two
property that is a residential condominium or residential cooperative
or, beginning January first, two thousand twelve, in the case of any
class two residential property owned by a company organized pursuant to
article XI of the state private housing finance law that is not a
residential condominium or a residential cooperative, such tax lien or
tax liens may be sold if the real property tax component of such tax
lien or tax liens has remained unpaid in whole or in part for one year,
and provided, further, however, that (i) the real property tax component
of such tax lien may not be sold pursuant to this subdivision on any
residential real property in class one that is receiving an exemption
pursuant to section 11-245.3 or 11-245.4 of this title, or pursuant to
section four hundred fifty-eight of the real property tax law with
respect to real property purchased with payments received as prisoner of
war compensation from the United States government, or pursuant to
paragraph (b) or (c) of subdivision two of section four hundred
fifty-eight-a of the real property tax law, or where the owner of such
residential real property in class one is receiving benefits in
accordance with department of finance memorandum 05-3, or any successor
memorandum thereto, relating to active duty military personnel, or where
the owner of such residential real property in class one has been
allowed a credit pursuant to subsection (e) of section six hundred six
of the tax law for the calendar year in which the date of the first
publication, pursuant to subdivision a of section 11-320 of this
chapter, of the notice of sale, occurs or for the calendar year
immediately preceding such date and (ii) the sewer rents component,
sewer surcharges component or water rents component of such tax lien may
not be sold pursuant to this subdivision on any one family residential
real property in class one or on any two or three family residential
real property in class one that is receiving an exemption pursuant to
section 11-245.3 or 11-245.4 of this title, or pursuant to section four
hundred fifty-eight of the real property tax law with respect to real
property purchased with payments received as prisoner of war
compensation from the United States government, or pursuant to paragraph
(b) or (c) of subdivision two of section four hundred fifty-eight-a of
the real property tax law, or where the owner of any two or three family
residential real property in class one is receiving benefits in
accordance with department of finance memorandum 05-3, or any successor
memorandum thereto, relating to active duty military personnel, or where
the owner of any two or three family residential real property in class
one has been allowed a credit pursuant to subsection (e) of section six
hundred six of the tax law for the calendar year in which the date of
the first publication, pursuant to subdivision a of section 11-320 of
this chapter, of the notice of sale, occurs or for the calendar year
immediately preceding such date. For purposes of this subdivision, the
term "subsequent tax lien or tax liens" shall mean any tax lien or tax
liens on property that become such on or after the date of sale of any
tax lien or tax liens on such property that have been sold pursuant to
this chapter, provided that the prior tax lien or tax liens remain
unpaid as of the date of the first publication, pursuant to subdivision
a of section 11-320 of this chapter, of the notice of sale of the
subsequent tax lien or tax liens. A subsequent tax lien or tax liens on
any property classified as a class two property, except a class two
property that is a residential condominium or residential cooperative,
or a class two residential property owned by a company organized
pursuant to article XI of the state private housing finance law that is
not a residential condominium or a residential cooperative, or class
three property, as such classes of property are defined in subdivision
one of section eighteen hundred two of the real property tax law, shall
not be sold by the city unless such tax lien or tax liens include a real
property tax component as of the date of the first publication, pursuant
to subdivision a of section 11-320 of this chapter, of the notice of
sale. Notwithstanding any provision of this subdivision to the contrary,
any such tax lien or tax liens that remain unpaid in whole or in part
after such date may be sold regardless of whether such tax lien or tax
liens include a real property tax component. A subsequent tax lien or
tax liens on a property classified as a class four property, as such
class of property is defined in subdivision one of section eighteen
hundred two of the real property tax law, shall not be sold by the city
unless such tax lien or tax liens include a real property tax component
or sewer rents component or sewer surcharges component or water rents
component or emergency repair charges component, where such emergency
repair charges accrued on or after January first, two thousand six and
are made a lien pursuant to section 27-2144 of this code, as of the date
of the first publication, pursuant to subdivision a of section 11-320 of
this chapter, of the notice of sale, provided, however, that any tax
lien or tax liens that remain unpaid in whole or in part after such date
may be sold regardless of whether such tax lien or tax liens include a
real property tax component, sewer rents component, sewer surcharges
component, water rents component or emergency repair charges component.
For purposes of this subdivision, the words "real property tax" shall
not include an assessment or charge upon property imposed pursuant to
section 25-411 of the administrative code. Nothing in this subdivision
shall be deemed to limit the rights conferred by section 11-332 of this
chapter on the holder of a tax lien certificate with respect to a
subsequent tax lien.
a-2. In addition to any sale authorized pursuant to subdivision a or
subdivision a-1 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two thousand
seven, the water rents, sewer rents and sewer surcharges components of
any tax lien on any class of real property, as such real property is
classified in subdivision one of section eighteen hundred two of the
real property tax law, may be sold by the city pursuant to this chapter,
where such water rents, sewer rents or sewer surcharges component of
such tax lien, as of the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of sale:
(i) shall have remained unpaid in whole or in part for one year and (ii)
equals or exceeds the sum of one thousand dollars or, beginning on March
first, two thousand eleven, in the case of any two or three family
residential real property in class one, for one year, and equals or
exceeds the sum of two thousand dollars, or, beginning on January first,
two thousand twelve, in the case of any class two residential property
owned by a company organized pursuant to article XI of the state private
housing finance law that is not a residential condominium or a
residential cooperative, as such class of property is defined in
subdivision one of section eighteen hundred two of the real property tax
law, for two years, and equals or exceeds the sum of five thousand
dollars; provided, however, that such water rents, sewer rents or sewer
surcharges component of such tax lien may not be sold pursuant to this
subdivision on any one family residential real property in class one or
on any two or three family residential real property in class one that
is receiving an exemption pursuant to section 11-245.3 or 11-245.4 of
this title, or pursuant to section four hundred fifty-eight of the real
property tax law with respect to real property purchased with payments
received as prisoner of war compensation from the United States
government, or pursuant to paragraph (b) or (c) of subdivision two of
section four hundred fifty-eight-a of the real property tax law, or
where the owner of any two or three family residential real property in
class one is receiving benefits in accordance with department of finance
memorandum 05-3, or any successor memorandum thereto, relating to active
duty military personnel, or where the owner of any two or three family
residential real property in class one has been allowed a credit
pursuant to subsection (e) of section six hundred six of the tax law for
the calendar year in which the date of the first publication, pursuant
to subdivision a of section 11-320 of this chapter, of the notice of
sale, occurs or for the calendar year immediately preceding such date.
After such sale, any such water rents, sewer rents or sewer surcharges
component of such tax lien may be transferred in the manner provided by
this chapter.
a-3. In addition to any sale authorized pursuant to subdivision a or
subdivision a-1 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on December first, two thousand
seven, a subsequent tax lien on any class of real property, as such real
property is classified in subdivision one of section eighteen hundred
two of the real property tax law, may be sold by the city pursuant to
this chapter, regardless of whether such subsequent tax lien, or any
component of the amount thereof, shall have remained unpaid in whole or
in part for one year, and regardless of whether such subsequent tax
lien, or any component of the amount thereof, equals or exceeds the sum
of one thousand dollars or beginning on March first, two thousand
eleven, in the case of any two or three family residential real property
in class one, a subsequent tax lien on such property may be sold by the
city pursuant to this chapter, regardless of whether such subsequent tax
lien, or any component of the amount thereof, shall have remained unpaid
in whole or in part for one year, and regardless of whether such
subsequent tax lien, or any component of the amount thereof, equals or
exceeds the sum of two thousand dollars, or, beginning on January first,
two thousand twelve, in the case of any class two residential property
owned by a company organized pursuant to article XI of the state private
housing finance law that is not a residential condominium or a
residential cooperative, as such class of property is defined in
subdivision one of section eighteen hundred two of the real property tax
law, a subsequent tax lien on such property may be sold by the city
pursuant to this chapter, regardless of whether such subsequent tax
lien, or any component of the amount thereof, shall have remained unpaid
in whole or in part for two years, and regardless of whether such
subsequent tax lien, or any component of the amount thereof, equals or
exceeds the sum of five thousand dollars; provided, however, that such
subsequent tax lien may not be sold pursuant to this subdivision on any
one family residential real property in class one or on any two or three
family residential real property in class one that is receiving an
exemption pursuant to section 11-245.3 or 11-245.4 of this title, or
pursuant to section four hundred fifty-eight of the real property tax
law with respect to real property purchased with payments received as
prisoner of war compensation from the United States government, or
pursuant to paragraph (b) or (c) of subdivision two of section four
hundred fifty-eight-a of the real property tax law, or where the owner
of any two or three family residential real property in class one is
receiving benefits in accordance with department of finance memorandum
05-3, or any successor memorandum thereto, relating to active duty
military personnel, or where the owner of any two or three family
residential real property in class one has been allowed a credit
pursuant to subsection (e) of section six hundred six of the tax law for
the calendar year in which the date of the first publication, pursuant
to subdivision a of section 11-320 of this chapter, of the notice of
sale, occurs or for the calendar year immediately preceding such date.
After such sale, any such subsequent tax lien, or any component of the
amount thereof, may be transferred in the manner provided by this
chapter. For purposes of this subdivision, the term "subsequent tax
lien" shall mean the water rents, sewer rents or sewer surcharges
component of any tax lien on property that becomes such on or after the
date of sale of any water rents, sewer rents or sewer surcharges
component of any tax lien on such property that has been sold pursuant
to this chapter, provided that the prior tax lien remains unpaid as of
the date of the first publication, pursuant to subdivision a of section
11-320 of this chapter, of the notice of sale of the subsequent tax
lien. Nothing in this subdivision shall be deemed to limit the rights
conferred by section 11-332 of this chapter on the holder of a tax lien
certificate with respect to a subsequent tax lien.
a-4. In addition to any sale authorized pursuant to subdivision a,
a-1, a-2 or a-3 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on March first, two thousand
eleven, the emergency repair charges component or alternative
enforcement expenses and fees component, where such emergency repair
charges accrued on or after January first, two thousand six and are made
a lien pursuant to section 27-2144 of this code, or where such
alternative enforcement expenses and fees are made a lien pursuant to
section 27-2153 of this code, of any tax lien on any class of real
property, as such real property is defined in subdivision one of section
eighteen hundred two of the real property tax law, may be sold by the
city pursuant to this chapter, where such emergency repair charges
component or alternative enforcement expenses and fees component of such
tax lien, as of the date of the first publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of sale:
(i) shall have remained unpaid in whole or in part for one year, and
(ii) equals or exceeds the sum of one thousand dollars or, beginning on
January first, two thousand twelve, in the case of any class two
residential property owned by a company organized pursuant to article XI
of the state private housing finance law that is not a residential
condominium or a residential cooperative, as such class of property is
defined in subdivision one of section eighteen hundred two of the real
property tax law, for two years, and equals or exceeds the sum of five
thousand dollars; provided, however, that such emergency repair charges
component or alternative enforcement expenses and fees component of such
tax lien may not be sold pursuant to this subdivision on any one, two or
three family residential real property in class one, except a three
family residential property in class one where such property is subject
to the provisions of section 27-2153 of this code and is not the primary
residence of the owner. After such sale, any such emergency repair
charges component or alternative enforcement expenses and fees component
of such tax lien may be transferred in the manner provided by this
chapter.
a-5. In addition to any sale authorized pursuant to subdivision a,
a-1, a-2 or a-3 of this section and notwithstanding any provision of
this chapter to the contrary, beginning on March first, two thousand
eleven, a subsequent tax lien on any class of real property, or
beginning on January first, two thousand twelve in the case of any class
two residential property owned by a company organized pursuant to
article XI of the state private housing finance law that is not a
residential condominium or a residential cooperative, a subsequent tax
lien on such property, may be sold by the city pursuant to this chapter,
regardless of the length of time such subsequent tax lien, or any
component of the amount thereof, shall have remained unpaid, and
regardless of the amount of such subsequent tax lien. After such sale,
any such subsequent tax lien, or any component of the amount thereof,
may be transferred in the manner provided by this chapter. For purposes
of this subdivision, the term "subsequent tax lien" shall mean the
emergency repair charges component or alternative enforcement expenses
and fees component, where such emergency repair charges accrued on or
after January first, two thousand six and are made a lien pursuant to
section 27-2144 of this code, or where such alternative enforcement
expenses and fees are made a lien pursuant to section 27-2153 of this
code, of any tax lien on property that becomes such on or after the date
of sale of any emergency repair charges component or alternative
enforcement expenses and fees component, of any tax lien on such
property that has been sold pursuant to this chapter, provided that the
prior tax lien remains unpaid as of the date of the first publication,
pursuant to subdivision a of section 11-320 of this chapter, of the
notice of sale of the subsequent tax lien. Nothing in this subdivision
shall be deemed to limit the rights conferred by section 11-332 of this
chapter on the holder of a tax lien certificate with respect to a
subsequent tax lien.
b. The commissioner of finance, on behalf of the city, may sell tax
liens, either individually, in combinations, or in the aggregate,
pursuant to the procedures provided herein. The commissioner of finance
shall establish the terms and conditions of a sale of a tax lien or tax
liens. Enactment of the local law that added this sentence shall be
deemed to constitute authorization by the council for the commissioner
of finance to conduct a sale or sales of tax liens through and including
December thirty-first, two thousand fourteen. Subsequent to December
thirty-first, two thousand fourteen, the city shall not have the
authority to sell tax liens.
1. (i) The commissioner of finance may, in his or her discretion, sell
a tax lien or tax liens through a competitive sale. In addition to the
advertisement and notice required to be provided pursuant to section
11-320 of this chapter, the commissioner of finance or his or her
designee shall cause to be published a notice of intention to sell a tax
lien or tax liens through a competitive sale, which notice shall include
the terms and conditions for such sale, the criteria by which bids shall
be evaluated, and a request for any other information or documents that
the commissioner of finance may require. Such notice shall be published
in one newspaper of general circulation in the city, not less than
fifteen days prior to the date designated by the commissioner for the
submission of bids.
(ii) The commissioner of finance may, in his or her discretion,
establish criteria for the eligibility of bidders pursuant to section
11-321.1 of this chapter.
(iii) The commissioner of finance may reject any or all bids, or may
accept any combination of bids in a competitive sale.
2. (i) The commissioner of finance may, in his or her discretion, sell
a tax lien or tax liens through a negotiated sale. In addition to the
advertisement and notice required to be provided pursuant to section
11-320 of this chapter, the commissioner of finance or his or her
designee shall cause to be published a notice of intention to sell a tax
lien or tax liens through a negotiated sale, which notice shall advise
that a request for statements of interest is available at the office of
the department of finance, and which may require the submission of any
information or documents that the commissioner deems appropriate,
provided, however, that if the negotiated sale is to a trust or other
entity created by the city or in which the city has an ownership or
residual interest, then the requirement that the notice advise that a
request for statements of interest is available at the office of the
department of finance shall not apply. Such notice shall be published in
one newspaper of general circulation in the city, not less than fifteen
days prior to the date designated by the commissioner for the receipt of
statements of interest, or if the negotiated sale is to such trust or
other entity, then such notice shall be published not less than fifteen
days prior to the date of sale. For purposes of this subparagraph, the
words "date of sale" shall have the same meaning provided in subdivision
e of section 11-320 of this chapter.
(ii) The commissioner of finance may engage in a negotiated sale in
accordance with criteria to be established pursuant to section 11-321.1
of this chapter.
(iii) The commissioner of finance may execute a purchase and sale
agreement and other necessary agreements with a designated purchaser or
purchasers to complete a negotiated sale.
3. The commissioner of finance may establish a minimum price for the
sale of tax liens that may be at a discount from or premium to the lien
amount. Notwithstanding the preceding sentence, the commissioner of
finance may not establish a minimum price for the sale of an individual
tax lien that is at a discount from the lien amount. The commissioner of
finance shall sell such tax liens at a purchase price that, in the
determination of such commissioner, is in the best interests of the
city. The commissioner of finance, in his or her discretion, may accept
cash or cash equivalent in immediately available funds, or other
consideration acceptable to the commissioner, or any combination thereof
in payment for a tax lien or tax liens.
4. The amount of a tax lien that is sold pursuant to this chapter
shall be the unpaid amount of the lien as of the date of sale, including
any interest and penalties thereon, any taxes, assessments, sewer rents,
sewer surcharges, water rents, any other charges that are made a lien
subject to the provisions of this chapter, the costs of any
advertisements and notices given pursuant to this chapter, any other
charges that are due and payable, any surcharge pursuant to section
11-332 of this chapter, and interest and penalties thereon, or such
component of the amount thereof as shall be determined by the
commissioner of finance, notwithstanding the amount paid for purchase of
the tax lien or component of the amount thereof. For purposes of this
paragraph, the words, "date of sale" shall have the same meaning
provided in section 11-320(e) of this chapter.
5. (i) The commissioner of finance may, subsequent to the offer for
sale of any tax lien or tax liens and the failure to complete such sale,
offer such tax lien or tax liens for sale again to any other person or
persons who satisfied the terms and conditions of the sale without
providing any additional advertisements or notices pursuant to this
chapter.
(ii) Notwithstanding subparagraph (i) of this paragraph, any tax lien
that was noticed for sale pursuant to this chapter, but was not sold on
the original date of sale, may be sold without any additional
advertisements or notices pursuant to this chapter if the subsequent
date of sale is within six months of the second publication, pursuant to
subdivision a of section 11-320 of this chapter, of the notice of the
original date of sale. If the subsequent date of sale is more than six
months after the second publication, pursuant to subdivision a of
section 11-320 of this chapter, of the notice of the original date of
sale, then the commissioner of finance, or his or her designee, shall
provide notice of the subsequent date of sale pursuant to subdivision b
of section 11-320 of this chapter. No other additional advertisements or
notices shall be necessary prior to the date of sale.
6. The rate of interest on any tax lien certificate shall be the rate
adopted for nonpayment of taxes on real property pursuant to subdivision
(e) of section 11-224.1 of this title on the effective date of the local
law that added this sentence.
7. It is the intent of the city that a sale of a tax lien or tax liens
pursuant to this chapter shall be a sale and not a borrowing.
8. Whenever any tax lien purchased at a tax lien sale is found to be
invalid, void or defective in whole or in part, or not to conform to any
representation or warranty with respect thereto, made by the
commissioner of finance in connection with the sale thereof, by judgment
or decree of a court of competent jurisdiction or by determination of
the commissioner of finance, the commissioner of finance may, in his or
her discretion, substitute for such tax lien or portion thereof another
tax lien that has a value equivalent to the value of the tax lien or
portion thereof found to be invalid, void, defective, or not to so
conform, or may refund such value of the tax lien or portion thereof
found to be invalid, void, defective, or not to so conform, or may use a
combination of substitution and refund. No other remedy shall be
available to a purchaser of a tax lien which is found to be invalid,
void, defective, or not to conform to a representation or warranty with
respect thereto made by the commissioner of finance in connection with
the sale thereof, in whole or in part. Whenever a tax lien of such
equivalent value is to be substituted for a tax lien that has been found
invalid, void, defective, or not to so conform, in whole or in part,
pursuant to this section, the commissioner of finance or his or her
designee shall provide mailed notice of the intention to substitute such
lien of such equivalent value to any person required to be notified
pursuant to section 11-320(b) of this chapter.
9. The commissioner of finance may establish requirements for a
purchaser of a tax lien to provide any information and documents that
the commissioner of finance deems necessary, including information
concerning the collection and enforcement of tax liens. The commissioner
of finance shall require the purchaser of a tax lien to provide the
owner of property on which a tax lien has been sold pursuant to this
chapter a detailed itemization of taxes, interest, surcharges, and fees
charged to such owner on all tax lien statements of amounts due or bill
of charges. Such fees shall be bona fide, reasonable and, in the case of
attorney fees, customary.
10. (i) Before January first, two thousand twelve, any tax lien or tax
liens that are sold pursuant to this chapter on property owned by a
company organized pursuant to article XI of the state private housing
finance law shall be deemed defective. On and after January first, two
thousand twelve, any tax lien or tax liens that are sold pursuant to
this chapter on any class two residential property owned by a company
organized pursuant to article XI of the state private housing finance
law that is a residential condominium or residential cooperative, shall
be deemed defective. For the purposes of this paragraph, property owned
by such company shall be limited to property owned for the purpose, as
set forth in section five hundred seventy-one of the state private
housing finance law, of providing housing for families and persons of
low income.
(ii) No later than May first, two thousand eleven, the commissioner of
finance, in consultation with the commissioner of housing preservation
and development, shall notify by mail any class two residential property
owned by a company organized pursuant to article XI of the state private
housing finance law that is not a residential condominium or residential
cooperative, of the authority of the commissioner of finance to sell the
tax liens on such property. Such notification shall include information
relating to the lien sale process, including, but not limited to,
actions homeowners can take if a lien is sold on such property; the type
of debt that can be sold in a lien sale; a timeline of statutory
notifications required pursuant to section 11-320 of this chapter; a
clear, concise explanation of the consequences of the sale of a tax
lien; the telephone number and electronic mail address of the employee
or employees designated pursuant to subdivision f of section 11-320 of
this chapter; a conspicuous statement that the owner of the property may
enter into a payment plan for exclusion from the tax lien sale; and
credits and property tax exemptions that may exclude a property from a
tax lien sale and any other credit or residential real property tax
exemption information, which, in the discretion of the commissioner,
should be included in such notification.
Upon such property owner's written request, or verbal request to 311
or any employee designated pursuant to subdivision f of section 11-320
of this chapter, a Chinese, Korean, Russian or Spanish translation of
such notice shall be provided promptly to such property owner.
11. No later than September first, two thousand eleven, the
appropriate agency shall promulgate rules identifying or describing any
existing procedures governing challenges to the validity of any real
property tax, sewer rent, sewer surcharge, water rent, emergency repair
charge or alternative enforcement expense or fee.
Section 11-320
§ 11-320 Notice of sale to be advertised and mailed. a. The tax lien
on property in the city shall not be sold pursuant to section 11-319 of
this chapter unless notice of such sale as provided herein has been
published twice, the first publication to be in a newspaper of general
circulation in the city, not less than ninety days preceding the date of
the sale, and the second publication to be in a publication designated
by the commissioner of finance, not less than ten days preceding the
date of the sale. Such publication shall include a description by block
and lot or by such other identification as the commissioner of finance
may deem appropriate, of the property upon which the tax lien exists
that may be included in the sale, and a statement that a list of the tax
liens that may be included in the sale is available for inspection in
the office of the city register and the office of the county clerk of
Richmond county. The commissioner of finance shall file such list in the
office of the city register and the office of the county clerk of
Richmond county not less than ninety days prior to the date of sale.
b. 1. A tax lien shall not be sold unless the commissioner of finance,
or his or her designee, notifies the owner of record at the address of
record and any other person who has registered pursuant to section
11-309 of this chapter, or pursuant to section 11-416 or 11-417 of this
title, by first class mail, of the intention to sell the tax lien. If no
such registrations have been filed then such commissioner, or his or her
designee, shall notify the person whose name and address, if any,
appears in the latest annual record of assessed valuations, by first
class mail, of the intention to sell the tax lien. Such mailed notice
shall include a description of the property by block and lot and such
other identifying information as the commissioner of finance may deem
appropriate, the amount of the tax lien, including all taxes,
assessments, sewer rents, sewer surcharges, water rents, any other
charges that are made a lien subject to the provisions of this chapter,
as well as an estimate of the costs of any advertisements and notices
given pursuant to this chapter, any other charges that are due and
payable on the date specified in such publication, a surcharge pursuant
to section 11-332 of this chapter if the tax lien is sold, and interest
and penalties thereon, and shall be mailed to such owner and such other
persons four times: not less than ninety, sixty, thirty and ten days
prior to the date of sale. Such notice shall state that if default
continues to be made in payment of the amounts due on such property, the
tax lien on such property shall be sold as provided in section 11-319 of
this chapter. If, notwithstanding such notice, the owner shall continue
to refuse or neglect to pay the amounts due on such property, the
commissioner of finance may sell the tax lien on such property as
provided in section 11-319 of this chapter.
2. (i) Such notices shall also include, with respect to any property
owner in class one or class two, as such classes of property are defined
in subdivision one of section eighteen hundred two of the real property
tax law, an exemption eligibility checklist. Within ten business days of
receipt of a completed exemption eligibility checklist from such
property owner, provided that such receipt occurs prior to the date of
sale of any tax lien or tax liens on his or her property, the department
of finance shall review such checklist to determine, based on the
information provided by the property owner, whether such property owner
could be eligible for any exemption, credit or other benefit that would
entitle them to be excluded from a tax lien sale and, if the department
determines that such property owner could be eligible for any such
exemption, credit or other benefit, shall mail such property owner an
application for the appropriate exemption, credit or other benefit. If,
within twenty business days of the date the department mailed such
application, the department has not received a completed application
from such property owner, the department shall mail such property owner
a second application, and shall telephone the property owner, if the
property owner has included his or her telephone number on the exemption
eligibility checklist.
(ii) Any such property owner who returns to the department of finance
a completed exemption eligibility checklist prior to the date of sale of
any tax lien or tax liens on his or her property and who subsequently
submits a completed application for the appropriate exemption, credit or
other benefit either prior to, on or up to ninety days after such sale,
shall have his or her application reviewed by the department of finance.
If, prior to the date of sale, the department of finance determines that
such property owner is qualified for such exemption, credit or other
benefit or will be qualified as of the date of sale, then the tax lien
or tax liens on his or her property shall not be sold on such date. If,
on or after the date of sale, the department of finance determines that
such property owner is or was qualified for such exemption, credit or
other benefit as of the date of sale, then any tax lien or tax liens on
his or her property that were sold shall be deemed defective.
(iii) Not later than thirty days prior to such date of sale, the
department of finance shall submit to the council a list, disaggregated
by council district, of all properties for which property owners
returned a completed eligibility checklist to the department of finance
at least thirty-five days prior to the date of sale, but for which
property owners have not yet submitted a completed application for the
appropriate exemption, credit or other benefit.
(iv) Not later than thirty days after such date of sale, the
department of finance shall submit to the council a list, disaggregated
by council district, of all properties for which property owners
returned a completed eligibility checklist to the department of finance
prior to the date of sale, but for which property owners have not yet
submitted a completed application for the appropriate exemption, credit
or other benefit.
(v) Upon the written or verbal request of such property owner, the
department of finance shall provide prompt assistance to such property
owner in completing an application for the appropriate exemption, credit
or other benefit.
3. The notice provided not less than ninety days prior to the date of
sale shall also include information relating to the lien sale process,
including, but not limited to, actions homeowners can take if a lien is
sold on such property; the type of debt that can be sold in a lien sale;
a timeline of statutory notifications required pursuant to this section;
a clear, concise explanation of the consequences of the sale of a tax
lien; the telephone number and electronic mail address of the employee
or employees designated pursuant to subdivision f of this section; a
conspicuous statement that the owner of the property may enter into a
payment plan for exclusion from the tax lien sale; and credits and
property tax exemptions that may exclude certain class one real property
from a tax lien sale. Such notice shall also include information on the
following real property tax exemptions, credit or other benefit:
(i) the senior citizen homeowner exemption pursuant to section
11-245.3 of this title;
(ii) the exemption for persons with disabilities pursuant to section
11-245.4 of this title;
(iii) the exemption for veterans pursuant to section four hundred
fifty-eight of the real property tax law, with respect to real property
purchased with payments received as prisoner of war compensation from
the United States government;
(iv) the exemption for veterans pursuant to paragraph (b) or (c) of
subdivision two of section four hundred fifty-eight-a of the real
property tax law;
(v) the state circuit breaker income tax credit pursuant to subsection
(e) of section six hundred six of the tax law; and
(vi) the active duty military personnel benefit pursuant to department
of finance memorandum 05-3, or any successor memorandum thereto.
Upon such property owner's written request, or verbal request to 311
or any employee designated pursuant to subdivision f of this section, a
Chinese, Korean, Russian or Spanish translation of such notice shall be
provided promptly to such property owner.
c. Such notices shall advise the owner of such property of his or her
continued obligation to pay the amounts due on such property. No other
notices or demands shall be required to be made to the owner of such
property to authorize the sale of a tax lien or tax liens on such
property pursuant to section 11-319 of this chapter.
d. 1. The commissioner of finance or his or her designee shall, within
ninety days after the delivery of the tax lien certificate, notify any
person who was required to be notified of such sale pursuant to section
11-320(b) of this chapter, by first class mail, that such sale has
occurred. Such notice shall state the date of the sale of the tax lien,
the name and address of the purchaser of the tax lien, the amount of
such lien, a description of the property by block and lot and such other
identifying information as the commissioner of finance or his or her
designee shall deem appropriate, and the terms and conditions of the tax
lien certificate, including the right to satisfy the lien within the
time periods specified in this chapter. Such notice shall also include
the telephone number and electronic mail address of the employee or
employees designated pursuant to subdivision f of this section.
2. Any written communication from the purchaser of the tax lien or
liens to an owner of property, on which a tax lien has been sold
pursuant to the provisions of this chapter, shall include the following
information:
(i) an explanation of the roles of the purchaser of the tax lien and
the employee or employees designated pursuant to subdivision f of this
section;
(ii) the names and contact information, including the telephone
number, electronic mail and mailing addresses of such persons; and
(iii) a statement informing such owner that he or she may be eligible
to enter into a forbearance agreement with the purchaser of such tax
lien.
3. The requirement to send such written communication shall be subject
to federal, state and local debt collection laws.
4. Failure to provide notice pursuant to this subdivision shall not
affect the validity of any sale of a tax lien or tax liens pursuant to
this chapter.
e. The words "date of sale" when used in this section shall mean: (1)
for a negotiated sale, the date of signing of the tax lien purchase
agreement, and (2) for a competitive sale, the date designated by the
commissioner of finance for the submission of bids.
f. The commissioner of finance shall designate an employee of the
department to respond to inquiries from owners of property for which a
tax lien has been sold or noticed for sale pursuant to subdivision a of
this section and shall designate an employee of the department to
respond to inquiries from owners sixty-five years of age or older of
property for which a tax lien has been sold or noticed for sale pursuant
to subdivision a of this section. The commissioner of environmental
protection shall designate at least one employee of the department of
environmental protection to respond to inquiries from owners of property
for which a tax lien containing a water rents, sewer rents or sewer
surcharges component has been sold or noticed for sale pursuant to
subdivision a of this section.
g. No later than one hundred twenty days after the tax lien sale, the
commissioner of finance shall submit to the council a list of all
properties, identified by block and lot, noticed for sale pursuant to
subdivision b of this section. Such list shall also include a
description of the disposition of such properties that shall include,
but not be limited to, whether an owner entered into a payment plan with
the city pursuant to section 11-322 of this chapter, whether an owner
satisfied the tax lien or liens, whether ownership of the property was
transferred, provided that such information is available to the city, or
whether the property was distressed, as defined in subdivision four of
section 11-401 of this title, or removed from the sale pursuant to the
discretion of the commissioner of the department of housing preservation
and development.
h. 1. On a quarterly basis, a purchaser of tax liens shall provide to
the council a list of all properties on which tax liens have been sold
where, subsequent to such sale, there has been a transfer of ownership
of the property, provided that a purchaser of tax liens has knowledge of
such transfers, for the following groups:
(i) all properties on which liens for emergency repair charges or
alternative enforcement expenses and fees have been sold to such
purchaser pursuant to subdivision a-4 of section 11-319 of this title;
and
(ii) all class two residential property owned by a company organized
pursuant to article XI of the state private housing finance law that is
not a residential condominium or a residential cooperative on which any
tax lien has been sold pursuant to subdivision a, a-2 or a-4 of section
11-319 of this title.
2. When available, a purchaser of tax liens shall include the names
and contact information of the new owners of record of such properties.
Section 11-321
§ 11-321 Continuation of sale; notice required. A sale of a tax lien
or tax liens may be continued from time to time, if necessary, until all
the tax liens on the property so advertised and noticed shall be sold
unless such sale is canceled or postponed in accordance with section
11-322 of this chapter. If a sale of a tax lien or tax liens is
continued, the commissioner of finance, or his or her designee, shall
give such notice as is practicable of such continuation.
Section 11-321.1
§ 11-321.1 Rules governing sales; eligibility of persons to purchase a
tax lien or tax liens in a negotiated or competitive sale. a. The
commissioner of finance may promulgate rules governing the eligibility
of persons to purchase a tax lien or tax liens in a negotiated or
competitive sale. Such rules may provide for precertification of such
persons, including a requirement for disclosure of income, assets, and
any other financial information that the commissioner of finance deems
appropriate, and may prohibit any such person who is delinquent in the
payment of any taxes to the city of New York, or who is in default in or
on any other obligation to the city, or who has any outstanding
violations of the administrative code of the city of New York, from
purchasing a tax lien or tax liens.
b. Any person who intends to purchase a tax lien or tax liens in a
negotiated or competitive sale shall submit to the commissioner of
finance an affidavit establishing compliance with the applicable
eligibility criteria and including any other information required by the
commissioner of finance. No such person who fails to submit such
affidavit shall be permitted to purchase a tax lien or tax liens. Any
such person who willfully submits a false or misleading affidavit
pursuant to this section shall forfeit any tax lien or tax liens
purchased by him or her at a sale for which the affidavit was submitted,
shall be liable for payment of the full purchase price of the tax lien
or tax liens, shall forfeit any deposit paid, and shall be disqualified
from bidding or participating in any tax lien sale in the city for a
period of five years.
c. No sale of a tax lien or tax liens shall be made to any person
identified pursuant to section 11-309 of this chapter as having an
interest in the property which is the subject of the tax lien or tax
liens, or to any owner of record as shown on the real property records
of the office of the city register in any borough or in the office of
the Richmond county clerk. Any such person or owner of record who
purchases such tax lien or tax liens shall forfeit such tax lien or tax
liens and shall be liable for payment of the full purchase price of the
tax lien or tax liens and shall not be entitled to a refund of any
amounts paid by such person or owner of record.
d. No person who purchases a tax lien or tax liens in a negotiated or
competitive sale shall assign or transfer a tax lien certificate or tax
lien certificates for such tax lien or tax liens to any person
identified pursuant to section 11-309 of this chapter as having an
interest in the property which is the subject of such tax lien
certificate or tax lien certificates, or to any owner of record of
property which is the subject of such tax lien certificate or tax lien
certificates. Any such person who knowingly or negligently transfers or
assigns such tax lien certificate or tax lien certificates to such
person or owner of record shall be liable for payment of the full
purchase price of the tax lien or tax liens and shall not be entitled to
a refund of any amounts paid and such tax lien certificate or tax lien
certificates shall be deemed void and the tax lien or tax liens sold
under such certificate or such certificates shall revert to the city as
if no sale of such tax lien or tax liens had occurred.
Section 11-322
§ 11-322 Postponement or cancellation of sales; installment
agreements. a. It shall be lawful for the commissioner of finance, or
his or her designee, to postpone or cancel any proposed sale of a tax
lien or tax liens on property that shall have been advertised and
noticed for sale prior to the date of sale. For purposes of this
section, the words, "date of sale" shall have the same meaning provided
in section 11-320(e) of this chapter. The city shall not be liable for
any damages as a result of cancellation or postponement of a proposed
sale of a tax lien or tax liens, nor shall any cause of action arise
from such cancellation or postponement.
b. In accordance with rules promulgated by the commissioners of
finance and environmental protection, a property owner may enter into
agreements with the departments of finance and environmental protection
for the payment in installments of any delinquent real property taxes,
assessments, sewer rents, sewer surcharges, water rents, or any other
charges that are made a lien subject to the provisions of this chapter.
The proposed sale of a tax lien or tax liens on property shall be
cancelled when a property owner enters into an agreement with the
respective agency for the payment of any such lien. Such rules shall
also provide that such property owners be given information regarding
eligibility for real property tax exemption programs prior to entering
into such agreements.
1. If payments required from a property owner pursuant to such an
agreement are not made for a period of six months, such property owner
shall be in default of such agreement, and the tax lien or tax liens on
the subject property may be sold, provided, however, that such default
may be cured upon such property owner's bringing all installment
payments and all current charges that are outstanding at the time of the
default to a current status, which shall include, but not be limited to,
any outstanding interest and fees, prior to the date of sale. If such
default is not cured prior to the date of sale, such property owner
shall not be eligible to enter into an installment agreement for the
subject property for five years, unless there is a finding of
extenuating circumstances by the department that entered into the
installment agreement with the property owner.
2. An installment agreement shall provide for payments by the property
owner on a quarterly or monthly basis, in the discretion of the
appropriate commissioner, for a period not less than eight years and not
more than ten years, provided that a property owner may elect a period
less than eight years. There shall be no down payment required upon the
property owner's entering into the installment agreement with the
respective department, but the property owner may elect to make a down
payment.
3. Beginning January first, two thousand twelve, any property owner
who has entered into an installment agreement with the commissioner of
environmental protection pursuant to this subdivision and who has
automated meter reading shall receive a consolidated monthly bill for
current sewer rents, sewer surcharges and water rents and any payment
due under such installment agreement.
4. No later than September first, two thousand eleven, the
commissioners of finance and environmental protection shall promulgate
rules governing installment agreements, including but not limited to,
the terms and conditions of such agreements, the payment schedules, and
the definition and consequences of default.
Section 11-323
§ 11-323 Commissioner of finance to conduct sale. The commissioner of
finance or his or her designee shall conduct the sales hereinbefore
provided to be made, or the commissioner may, in his or her discretion,
contract with any other person to conduct competitive sales of tax
liens.
Section 11-324
§ 11-324 Deposits and forfeits. The commissioner of finance may
require from each purchaser of a tax lien or tax liens, in cash or cash
equivalent in immediately available funds in the discretion of such
commissioner, a deposit of at least five per cent of the cash portion of
the sale price of the tax lien or tax liens purchased by him or her, as
liquidated damages, on a date determined by the commissioner of finance.
The balance shall be paid to the commissioner of finance in cash or cash
equivalent in immediately available funds or such other consideration
acceptable to the commissioner of finance or any combination thereof, in
his or her discretion. For purposes of this chapter "cash equivalent"
shall mean a cashier's check, bank check, certified check, money order,
or such other paper instrument as the commissioner of finance shall
prescribe. Such deposit and balance may also be paid by electronic funds
transfer. For purposes of this chapter, "electronic funds transfer"
shall mean any transfer of funds, other than a transaction originated by
check, draft or similar paper instrument, which is initiated using a
format prescribed by the commissioner of finance. A tax lien certificate
shall be made and delivered to the purchaser upon payment of the sale
price. In case any purchaser shall default in any obligation under the
terms and conditions of the tax lien sale, then the amount deposited by
the purchaser shall be forfeited to the city, and the tax lien or tax
liens upon the property affected by such purchase may be sold again at
the discretion of the commissioner of finance pursuant to section 11-319
of this chapter. All deposits forfeited as aforesaid shall be paid into
the general fund.
Section 11-327
§ 11-327 Tax lien certificates; operation. A tax lien certificate
shall operate to transfer and assign the tax lien upon the property
described therein for the taxes, assessments, sewer rents, sewer
surcharges, water rents, any other charges that are made a lien subject
to the provisions of this chapter, the costs of any notices and
advertisements given pursuant to this chapter, any other charges that
are due and payable, a surcharge pursuant to section 11-332 of this
chapter, and interest and penalties thereon.
Section 11-328
§ 11-328 Contents of a tax lien certificate. A tax lien certificate
shall contain a transfer and assignment by the city of the tax lien sold
to the purchaser, the date of the sale, the aggregate amount of the tax
lien so transferred, and the items of taxes, assessments, sewer rents,
sewer surcharges, water rents, any other charges that are made a lien
subject to the provisions of this chapter, the costs of any
advertisements and notices given pursuant to this chapter, any other
charges that are due and payable, a surcharge pursuant to section 11-332
of this chapter, and interest and penalties thereon comprising the tax
lien, the rate of interest which the tax lien certificate will bear, the
date when the amounts under such tax lien are due pursuant to section
11-332 of this chapter, and a description of the property affected by
the tax lien, which description shall include the designation of such
property on the tax map, by its lot number and the number of the block
in which it is contained, and such other identifying information as the
commissioner of finance or his or her designee may deem proper to add.
For purposes of this section, the words "date of sale" shall have the
same meaning provided in section 11-320(e) of this chapter. Each tax
lien certificate shall be executed by the commissioner of finance or his
or her designee by manual or facsimile signature and shall be
acknowledged by the manual or facsimile signature of the officer
subscribing the same in the manner in which a deed is required to be
acknowledged to be recorded in the county in which the property affected
is situated. The commissioner of finance may designate an agent for
purposes of authenticating any such signature.
Section 11-330
§ 11-330 Record of tax lien certificates. The commissioner of finance
or his or her designee, shall keep in his or her office a public record
of sales of tax liens, and a copy of each tax lien certificate issued by
such commissioner or his or her designee. Assignments of tax lien
certificates duly acknowledged may be filed and recorded in the office
of the commissioner of finance or his or her designee. A tax lien
certificate and any assignment thereof, duly acknowledged, shall be
deemed conveyances under article eight of the real property law, and may
be recorded in the office of the recording officer of any county in
which the real property which it affects is situated. Tax lien
certificates and all assignments thereof shall be recorded by recording
officers in the same manner as mortgages and assignments thereof, but
without payment of tax under article eleven of the tax law. Neither the
tax lien nor the rights transferred or created by a tax lien certificate
shall be impaired by failure of a recording officer to record a tax lien
certificate made by the city through the commissioner of finance or his
or her designee.
Section 11-331
§ 11-331 Records to be competent evidence. The record in the office of
the commissioner of finance or his or her designee of sales of tax
liens, of a tax lien certificate, and of a copy of a tax lien
certificate, and of an assignment of a tax lien certificate, a record of
a tax lien certificate in the office of a recording officer, and of an
assignment of a tax lien certificate, duly acknowledged, in the office
of a recording officer, shall each be evidence in any court in the state
without further proof. A transcript of any record enumerated in this
section, duly certified, shall be evidence in any court in the state
with like effect as the original instrument of record.
Section 11-332
§ 11-332 Rights of purchaser of tax lien. a. Any purchaser of a tax
lien or tax liens shall stand in the same position as the city and shall
have all the rights and remedies that the city would have had if the tax
lien or tax liens had not been sold.
b. The aggregate amount of each tax lien transferred pursuant to this
chapter shall be due and payable one year from the date of the sale.
Until such aggregate amount is fully paid and discharged, the holder of
the tax lien certificate shall be entitled to receive interest on such
aggregate amount from the date of sale, and semi-annually at the rate of
interest applicable in accordance with section 11-319 of this chapter.
If such aggregate amount is partially paid, the holder of the tax lien
certificate shall be entitled to receive interest only on the amount
that remains unpaid. Notwithstanding the foregoing sentence, the holder
of the tax lien certificate shall be entitled to receive and retain a
surcharge equal to five percent of the lien arising pursuant to the
provisions of this chapter as a result of the nonpayment of taxes,
assessments, sewer rents, sewer surcharges, water rents, any other
charges that are made a lien subject to the provisions of this chapter,
the costs of any advertisements and notices given pursuant to this
chapter, any other charges that are due and payable, and interest and
penalties thereon. Any amounts due shall be paid directly to the holder
of the tax lien certificate. At the option of the holder of any tax lien
certificate the aggregate amount thereof shall become subject to
foreclosure after default in the payment of interest for thirty days or
after default for six months after the date of sale stated in the tax
lien certificate in accordance with sections 11-320(d) and 11-328 of
this chapter in the payment of any taxes, assessments, sewer rents,
sewer surcharges, water rents, any other charges that are made a lien
subject to the provisions of this chapter, or the interest or penalties
thereon which become a lien on or after the date of sale of the tax lien
transferred by such tax lien certificate. At his or her option, the
holder of the tax lien certificate may satisfy any such subsequent tax
lien on the same property, and shall, by virtue of such satisfaction, be
deemed to be in the same position as if he or she were a purchaser of a
tax lien certificate for such subsequent tax lien, provided, however,
that such holder shall not be entitled to receive a five percent
surcharge on such subsequent tax lien pursuant to this section. The rate
of interest on such subsequent lien shall be the rate of interest
applicable to tax lien certificates pursuant to section 11-319 of this
chapter. The commissioner of finance or his or her designee, at the
request of the purchaser of such subsequent lien, shall issue a tax lien
certificate for such lien pursuant to sections 11-327 and 11-328 of this
chapter. Upon issuance of such certificate, the commissioner of finance
or his or her designee shall provide such notice as is required pursuant
to section 11-320(d) of this chapter. Failure to provide notice pursuant
to this subdivision shall not affect the validity of any transfer of a
subsequent tax lien or tax liens pursuant to this subdivision. Any
person having a legal or beneficial interest in property affected by a
tax lien certificate may satisfy the same at any time upon payment of
the amounts due with interest at the rate applicable in accordance with
section 11-319 of this chapter. Upon satisfaction of the tax lien, the
holder thereof shall issue to the person who satisfied such tax lien a
certificate of discharge, certifying that the tax lien has been paid or
has been otherwise satisfied, in such recordable form as has been
approved by the commissioner of finance. For purposes of this section,
the words, "date of sale" shall have the same meaning provided in
section 11-320(e) of this chapter.
Section 11-333
§ 11-333 Discharge of tax lien. A tax lien sold pursuant to the
provisions of this chapter may be discharged by presenting the
certificate of discharge issued by the holder of the tax lien pursuant
to section 11-332 of this chapter to the recording officer of the county
in which the real property that it affects is situated, and any
recording officer to whom such certificate of discharge is presented
shall record the same.
Section 11-334
§ 11-334 Exemption from taxation. Tax liens and tax lien certificates
shall be exempt from taxation by the state or any local subdivisions
thereof, except from the taxes imposed by article ten of the tax law.
The real property affected by any tax lien shall not be exempt from
taxation by reason of this section.
Section 11-335
§ 11-335 Foreclosure of tax liens. If the amount of any tax lien which
shall have been transferred by a tax lien certificate shall not be paid
when under its terms and the provisions of section 11-332 of this
chapter such amount shall be due, the holder of such tax lien
certificate may maintain an action in the supreme court to foreclose
such tax lien. The holder of such tax lien certificate shall notify the
commissioner of finance or his or her designee in writing whenever he or
she commences such action at the time of filing of such action, and
shall notify the commissioner of finance in writing of the resolution of
such action, including any settlement of such action, within thirty days
of such resolution. In an action to foreclose a tax lien any person
shall be a proper party of whom the plaintiff alleges that such person
has or may have or that the plaintiff has reason to believe that such
person has or may have an interest in or claim upon the property
affected by the tax lien. A plaintiff in an action to foreclose a tax
lien shall recover reasonable attorney's fees for maintaining such
action. Except as otherwise provided in this chapter an action to
foreclose a tax lien shall be regulated by the provisions of the civil
practice law and rules and by all other provisions of law, and rules of
practice applicable to actions to foreclose mortgages on real property.
The people of the state of New York or the city of New York may be made
party to an action to foreclose a tax lien in the same manner as a
natural person. Where the people of the state of New York or the city of
New York are made a party defendant the complaint shall set forth, in
addition to the other matters required to be set forth by law, detailed
facts showing the particular nature of the interest in or the lien on
such property of the people of the state of New York or the city of New
York, and detailed facts showing the particular nature of the interest
in or the lien on such property which plaintiff has reason to believe
that the people of the state of New York or the city of New York have or
may have in such property, and the reason for making the people of the
state of New York or the city of New York a party defendant. Upon
failure to state such facts the complaint shall be dismissed as to the
people of the state or the city of New York.
Section 11-336
§ 11-336 Pleading tax lien certificate. Whenever a cause of action,
defense or counterclaim, is for the foreclosure of a tax lien, or is in
any manner founded upon a tax lien or a tax lien certificate, the
production in evidence of an instrument executed by the commissioner of
finance or his or her designee in the form prescribed in section 11-328
of this chapter for a tax lien certificate subscribed by or in behalf of
the commissioner of finance or his or her designee shall be presumptive
evidence that the lien purported to be transferred by such an instrument
was a valid and enforceable lien, and that it has been duly assigned to
the purchaser, and it shall not be necessary to plead or prove any act,
proceeding, notice or action, preceding the delivery of such tax lien
certificate nor to establish the validity of the tax lien transferred by
such tax lien certificate. If a party or person in interest in any such
action or proceeding claims that a tax lien is irregular or invalid, or
that there is any defect therein or that a tax lien certificate is
irregular, invalid or defective, such invalidity, irregularity or defect
must be specifically pleaded or set forth, and must be established
affirmatively by the party or person pleading or setting forth the same.
Section 11-337
§ 11-337 Judgment upon tax lien. In every action for the foreclosure
of a tax lien, and in every action or proceeding in which a cause of
action, defense or counterclaim is in any manner founded upon a tax lien
or a tax lien certificate, such tax lien certificate and the tax lien
which it transfers shall be presumed to be regular and valid and
effectual to transfer to the purchaser named therein a valid and
enforceable tax lien. Unless in such an action or proceeding such tax
lien or tax lien certificate be found to be invalid, they shall be
adjudged to be enforceable and valid, for the amount thereof and the
interest to which the holder may be entitled and a tax lien transferred
by a tax lien certificate effectual to transfer such tax lien to the
purchaser named therein.
Section 11-338
§ 11-338 Judgment of foreclosure of tax lien; sale. In an action to
foreclose a tax lien, unless the defendants obtain judgment, the
plaintiff shall be entitled to a judgment establishing the validity of
the tax lien so far as the same shall not be adjudged invalid and of the
tax lien certificate and directing the sale of the real, personal or
mixed property affected thereby, or such part thereof as shall be
sufficient to discharge the tax lien, or such items thereof as shall not
be adjudged invalid together with the expense of the sale, and the costs
of the action.
Section 11-339
§ 11-339 City may purchase at sale. At a sale pursuant to judgment in
an action to foreclose a tax lien or at any sale free of tax liens, the
city, without authorization other than hereby given, may purchase any
property that is the subject of the sale.
Section 11-340
§ 11-340 Effect of judgment foreclosing tax lien. Every final judgment
in an action to foreclose a tax lien shall be binding upon, and every
conveyance upon a sale pursuant thereto, shall transfer to and vest in
the purchaser all the right, title, interest and estate in and claim
upon the real property affected by such judgment, of the plaintiff, each
defendant upon whom the summons is served, each person claiming from,
through or under such a defendant by title accruing after the filing of
notice of pendency of the action or after the entry of judgment and
filing of the judgment roll in the proper county clerk's office, and
each person not in being when the judgment is rendered, who afterwards
may become entitled to a beneficial interest attaching to, or an estate
or interest in such real property or any portion thereof, provided that
the person presumptively entitled to such beneficial interest, estate or
interest is a party to such action or bound by such judgment. So much of
section three hundred seventeen of the civil practice law and rules as
requires the court to allow a defendant to defend an action after final
judgment shall not apply to an action to foreclose a tax lien. Delivery
of the possession of real property affected by a judgment to foreclose a
tax lien may be compelled in the manner prescribed in section two
hundred twenty-one of the real property actions and proceedings law.
Section 11-341
§ 11-341 Surplus. Any surplus of the proceeds of the sale, after
paying the expenses of the sale, and all taxes, assessments, sewer
rents, sewer surcharges, water rents, any other charges made a lien
subject to the provisions of this chapter, the costs of any
advertisements and notices given pursuant to this chapter, any other
charges that are due and payable, any surcharge pursuant to section
11-332 of this chapter and interest and penalties thereon, including
such amounts which accrued or became a lien on and after the date of
sale of the tax lien or tax liens and up to and including the date of
the sale of the property in foreclosure, and satisfying the amount of
such tax lien or tax liens and interest and the costs of the action,
must be paid into court, for the use of the person or persons entitled
thereto. If any part of the surplus remains in court for the period of
three months, and no application has been made therefor, the court must,
and, if an application therefor is pending, the court may direct such
surplus to be invested at interest, for the benefit of the person or
persons entitled thereto, to be paid upon the direction of the court.
Section 11-342
§ 11-342 Foreclosed tax lien not arrears. Any party to an action to
foreclose a tax lien or any purchaser or any party in interest may give
notice of such foreclosure to the city collector and after such notice
the items which constituted the tax lien thus foreclosed shall not be
entered by the city collector in any yearly assessment-roll, so long as
the judgment of foreclosure of such lien remains in force.
Section 11-347
§ 11-347 Corporation counsel to protect city in all proceedings
relating to tax liens. It shall be the duty of the corporation counsel
to protect the interest of the city in all matters, actions and
proceedings relating to tax liens and tax lien certificates; to
intervene on behalf of the city or to make the city a party to any
action in which the corporation counsel believes it to be to the
interest of the city so to do, by reason of any matter arising under or
relating to any tax lien or tax lien certificate, or advertisement of
sale of tax liens. The corporation counsel in his or her discretion may
represent the purchaser of a tax lien or the holder of a tax lien
certificate in any action in which the corporation counsel believes it
to be in the interest of the city so to do, by reason of any matter
arising under or relating to any tax lien or tax lien certificate, or
advertisement of sale of tax liens. All costs recovered in any action
or proceeding conducted or defended by the corporation counsel pursuant
to this section shall belong to the city and shall be collected, applied
and disposed of in the same manner as are other costs recovered by the
city.
Section 11-349
§ 11-349 Lost tax lien certificate; delivery of duplicate in case of.
Whenever any tax lien certificate given by the commissioner of finance
or his or her designee, as in this chapter provided, shall be lost, the
commissioner of finance or his or her designee may receive evidence of
such loss, and on satisfactory proof of the fact may direct the
execution and delivery of a duplicate to such person or persons who
shall appear entitled thereto, and may also, in the commissioner's
discretion, require a bond of indemnity to the city.
Section 11-350
§ 11-350 Affidavits of publication and mailing of necessary notices to
be preserved. It shall be the duty of the commissioner of finance or his
or her designee to procure, preserve and register at the department of
finance, affidavits of the publication and mailing of all the
advertisements and notices by this chapter required to be published and
mailed, and such affidavits shall be presumptive proof of such
publication and mailing in all the courts of this state.
Section 11-353
§ 11-353 Cancellation of taxes, assessments, water rents, sewer rents,
sewer surcharges, any charges that are made a lien subject to the
provisions of this chapter, the costs of any advertisements and notices
given pursuant to this chapter, any other charges that are due and
payable, a surcharge pursuant to section 11-332 of this chapter, and
interest and penalties thereon. Whenever the city has heretofore or
shall hereafter become vested with title to property acquired by virtue
of tax enforcement foreclosure proceedings, or by deed in lieu thereof,
the commissioner of finance, or his or her designee, shall cancel all
unpaid real estate taxes, tax lien certificates, assessments, water
rents, sewer rents, sewer surcharges, any charges that are made a lien
subject to the provisions of this chapter, the costs of any
advertisements and notices given pursuant to this chapter, any other
charges that are due and payable, a surcharge pursuant to section 11-332
of this chapter, and interest and penalties thereon upon which the
foreclosure action was predicated. Upon the sale of such property and
the conveyance of the title thereof by the city, the commissioner of
finance, or his or her designee, shall cancel all unpaid real estate
taxes, assessments, water rents, sewer rents, sewer surcharges, any
charges that are made a lien subject to the provisions of this chapter,
the costs of any advertisements and notices given pursuant to this
chapter, any other charges that are due and payable, a surcharge
pursuant to section 11-332 of this chapter, and interest and penalties
thereon that shall have accrued during the period between the date of
the last unpaid item upon which the foreclosure action was predicated
and the date of conveyance of title. The commissioner of finance, or his
or her designee, shall enter notations of such cancellations in the
appropriate records for each such parcel of property.
Section 11-354
§ 11-354 Additional method to enforce payment of tax liens held by the
city. (a) Notwithstanding any other provision of law and notwithstanding
any omission to hold a tax lien sale, whenever any tax, assessment,
sewer rent, sewer surcharge, water rent, any charge that is made a lien
subject to the provisions of this chapter or chapter four of this title,
or interest and penalties thereon, has been due and unpaid for a period
of at least one year from the date on which the tax, assessment or other
legal charge represented thereby became a lien, or in the case of any
class one property or any class two property that is a residential
condominium or residential cooperative, as such classes of property are
defined in subdivision one of section eighteen hundred two of the real
property tax law, or in the case of a multiple dwelling owned 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, for a period of at least three years from
the date on which the tax, assessment or other legal charge became a
lien, the city, as owner of a tax lien, may maintain an action in the
supreme court to foreclose such lien. Such action shall be governed by
the procedures set forth in section 11-335 of this chapter; provided,
however, that such parcel shall only be sold to the highest responsible
bidder. Such purchaser shall be deemed qualified as a responsible bidder
pursuant to such criteria as are established in rules promulgated by the
commissioner of finance after consultation with the commissioner of
housing preservation and development.
(b) At a sale pursuant to a judgment in an action brought pursuant to
subdivision (a) of this section to foreclose a tax lien, the city may
purchase property subject to such lien in accordance with the provisions
of section 11-339 of this chapter.
(c) The provisions of this section shall not affect any existing
remedy or procedure for the enforcement or foreclosure of tax liens
provided for in this code or any other law, but the remedy provided
herein for foreclosure of tax liens shall be in addition to any other
remedies or procedures provided by any general, special or local law.
Notwithstanding any other provision of this code, the commissioner of
finance shall be authorized to agree to forebear to commence an in rem
action against property which has an outstanding and unredeemed tax lien
certificate previously sold by the city and held by a third party
pursuant to this chapter.
Section 11-355
§ 11-355 Reporting. The commissioner of finance shall submit an annual
report to the council concerning the sale or sales of tax liens during
the preceding year pursuant to this chapter. Such report shall include
the following information regarding such sale or sales: a list of
properties for which a tax lien or tax liens has or have been sold,
including identification of the particular tax lien or tax liens sold;
the proceeds received from the sale or sales of tax liens;
identification of the purchaser of and servicer for the tax lien or tax
liens sold; a report of servicer activities during the immediately
preceding year; the redemption rate for tax liens that have been sold;
the delinquency rate for real property taxes for the immediately
preceding year; and any other information pertinent to the sale of tax
liens that may be requested by the council and which is not made
confidential pursuant to section 11-208.1 of the code. Upon request by
the council, information provided in such report shall be arranged by
community board. In addition to such report, the commissioner of finance
shall from time to time provide any other information pertinent to the
sale of tax liens that may be requested by the council and which is not
made confidential pursuant to section 11-208.1 of the code, including
updated information regarding the sale or sales of tax liens pursuant to
this chapter.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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