Section 11-401
§ 11-401 Definitions. Whenever used in this chapter, the following
terms shall mean:
1. "Tax lien." The lien arising 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 or chapter three of this title, interest and penalties thereon,
and the right of the city to receive such amounts.
2. "Court." The supreme court.
3. "Class." Any class of real property defined in subdivision one of
section eighteen hundred two of the real property tax law, and any
subclassification of class two real property where such
subclassification is established by rule of the commissioner of finance
promulgated pursuant to this subdivision.
4. "Distressed property." Any parcel of class one or class two real
property that is subject to a tax lien or liens with a lien or liens to
value ratio, as determined by the commissioner of finance, equal to or
greater than fifteen percent and that meets one of the following two
criteria:
i. such parcel has an average of five or more hazardous or immediately
hazardous violations of record of the housing maintenance code per
dwelling unit; or
ii. such parcel is subject to a lien or liens for any expenses
incurred by the department of housing preservation and development for
the repair or the elimination of any dangerous or unlawful conditions
therein, pursuant to section 27-2144 of this code, in an amount equal to
or greater than one thousand dollars.
Section 11-401.1
§ 11-401.1 Procedures for distressed property. a. The commissioner of
finance shall, not less than sixty days preceding the date of the sale
of a tax lien or tax liens, submit to the commissioner of housing
preservation and development a description by block and lot, or by such
other identification as the commissioner of finance may deem
appropriate, of any parcel of class one or class two real property on
which there is a tax lien that may be foreclosed by the city. The
commissioner of housing preservation and development shall determine,
and direct the commissioner of finance, not less than ten days preceding
the date of the sale of a tax lien or tax liens, whether any such parcel
is a distressed property as defined in subdivision four of section
11-401 of this chapter. Any tax lien on a parcel so determined to be a
distressed property shall not be included in such sale. In connection
with a subsequent sale of a tax lien or tax liens, the commissioner of
finance may, not less than sixty days preceding the date of the sale,
resubmit to the commissioner of housing preservation and development a
description by block and lot, or by such other identification as the
commissioner of finance may deem appropriate, of any parcel of class one
or class two real property that was previously determined to be a
distressed property pursuant to this paragraph and on which there is a
tax lien that may be included in such sale. The commissioner of housing
preservation and development shall determine, and direct the
commissioner of finance, not less than ten days preceding the date of
the sale, whether such parcel remains a distressed property. If the
commissioner of housing preservation and development determines that the
parcel is not a distressed property, then the tax lien on the parcel may
be included in the sale.
b. The commissioner of housing preservation and development may
periodically review whether a parcel of class one or class two real
property that is subject to subdivision c of this section or subdivision
j of section 11-412.1 of this chapter remains a distressed property. If
the commissioner determines that the parcel is not a distressed property
as defined in subdivision four of section 11-401 of this chapter, then
the parcel shall not be subject to such subdivisions.
c. Any parcel so determined to be a distressed property shall be
subject to an in rem foreclosure action, or in the case where the
commissioner of finance does not commence such action the commissioner
of housing preservation and development shall evaluate such parcel and
take such action as he or she deems appropriate under the programs,
existing at the time of such evaluation, that are designed to encourage
the rehabilitation and preservation of existing housing, and shall
monitor or cause to be monitored the status of the property. The
commissioner of housing preservation and development, in his or her
discretion, shall cause an inspection to be conducted on any parcel so
determined to be a distressed property. In addition, the commissioner of
housing preservation and development shall submit to the council a list
of all parcels so determined to be a distressed property within thirty
days from the date such parcels are identified as a distressed property.
Section 11-402
§ 11-402 Applicability of procedure of foreclosure in rem. a. The
provisions of this chapter shall be applicable only to tax liens owned
by the city.
b. The provisions of this chapter 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 by action in rem shall be in addition to any other remedies
or procedures provided by any general, special or local law.
c. The provisions of this chapter shall not affect pending actions or
proceedings, provided, however, that any pending action or proceeding
for the enforcement or foreclosure of tax liens may be discontinued, and
a new action may be instituted pursuant to the provisions of this
chapter, in respect to any such tax lien.
Section 11-402.1
§ 11-402.1 Inapplicability of article eleven of the real property tax
law to the enforcement of the collection of delinquent taxes. In
accordance with section six of chapter six hundred two of the laws of
nineteen hundred ninety-three and subdivision two of section eleven
hundred four of the real property tax law, it is hereby provided that
the collection of delinquent taxes shall continue to be enforced
pursuant to chapters three and four of title eleven of the
administrative code and other related provisions of the charter and
administrative code as such chapters three and four and such related
provisions may from time to time be amended and that article eleven of
the real property tax law shall not be applicable to the city.
Section 11-403
§ 11-403 Jurisdiction. The supreme court shall have jurisdiction of
actions authorized by this chapter.
Section 11-404
§ 11-404 Foreclosure by action in rem. a. Whenever it shall appear
that a tax lien or tax liens has or have 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, such tax lien
or tax liens, except as provided in subdivision b of this section or
otherwise provided by this chapter, may be summarily foreclosed in the
manner provided in this chapter, notwithstanding the provisions of any
general, special or local law and notwithstanding any omission to hold a
sale of a tax lien or tax liens prior to such foreclosure. A bill of
arrears or any other instrument evidencing such tax lien or tax liens
shall be evidence of the fact that the tax lien or tax liens represented
thereby has not or have not been paid to the city or sold by it.
b. A tax lien on 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, and on any 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, shall not be foreclosed in the manner
provided in this chapter until such tax lien has been due and unpaid for
a period of at least three years from the date on which the tax,
assessment or other legal charge represented thereby became a lien.
Section 11-405
§ 11-405 Preparation and filing of lists of delinquent taxes. a. The
commissioner of finance from time to time shall prepare a list, to be
known as a "list of delinquent taxes", of all parcels, or all parcels
within a particular class or classes, that are within a particular
borough or section of a tax map or portion of a section of a tax map of
the city and on which there are tax liens subject to foreclosure
pursuant to this chapter, provided, however, that no such portion shall
be smaller than a block, as defined in subdivision d of section 11-204
of subchapter one of chapter two of this title. Every such list shall
bear a caption containing the in rem action number of the city's tax
foreclosure proceeding, the borough or the section of a tax map or
portion of a section of a tax map, and where the action covers less than
all parcels in an entire borough or section of a tax map or portion of a
section of a tax map, the particular class or classes, and shall contain
a statement of the rate or rates at which interest and penalties will be
computed for the various liens it includes.
b. Every such list shall set forth the parcels it includes separately
and number them serially. For each parcel it shall contain (1) a brief
description sufficient to identify the parcel, including section, block
and lot numbers, and the street and street number, if any, or in the
absence of such information the parcel or tract identification number
shown on a tax map or on a map filed in the county clerk's or register's
office and (2) a statement of the amounts and dates of all unpaid tax
liens which are subject to foreclosure under this chapter and of those
which have accrued thereafter.
c. (1) The commissioner of finance may exclude or thereafter remove
from such list any parcels (i) as to which questions the commissioner
deems meritorious have been raised regarding the validity of the liens,
(ii) as to which all the taxes and other charges which rendered said
parcels eligible for inclusion in said list have been paid, or (iii)
which are owned by an entity other than 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 and
which are not owner-occupied residential buildings of not more than five
residential units and as to which an agreement has been duly made,
executed and filed with such commissioner for the payment of the
delinquent taxes, assessments or other legal charges, interest and
penalties in installments. The first installment shall be paid upon the
filing of the installment agreement with the commissioner and shall be
in an amount of not less than fifteen percent of such delinquent taxes,
assessments or other legal charges, interest and penalties. The
remaining installments, which shall be twice the number of unpaid
quarters of real estate taxes or the equivalent thereof but which shall
in no event exceed thirty-two in number, shall be payable quarterly on
the first day of July, October, January and April. For the purposes of
calculating the number of such remaining installments unpaid real estate
taxes which are, on and after July first, nineteen hundred eighty-two,
due and payable on an other than quarterly basis shall be deemed to be
payable on a quarterly basis.
(2) The commissioner of finance may also exclude or thereafter remove
from such list any parcels which are 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, and (i) as to which an agreement has been duly made,
executed and filed with said commissioner for the payment of the
delinquent taxes, assessments or other legal charges incurred prior to
the ownership of said parcel by said article XI company, and the
interest and penalties thereon, in installments. The first installment
thereof shall be paid upon the filing of the installment agreement with
the commissioner and shall be in an amount of not less than ten percent
of such delinquent taxes, assessments or other legal charges and the
interest and penalty thereon. The remaining installments, which shall be
three times the number of unpaid quarters of real estate taxes or the
equivalent thereof but which shall in no event exceed forty-eight in
number shall be payable quarterly on the first days of July, October,
January and April. For the purposes of calculating the number of such
remaining installments unpaid real estate taxes which are, on and after
July first, nineteen hundred eighty-two due and payable on an other than
quarterly basis shall be deemed to be payable on a quarterly basis; and
(ii) as to which an agreement has been duly made, executed and filed
with said commissioner, for the payment of the delinquent taxes,
assessments or other legal charges incurred after the ownership of said
parcel by said article XI company on the same terms as are provided in
paragraph one of this subdivision.
(3) The commissioner of finance may also exclude or thereafter remove
from such list any parcels which are owner-occupied residential
buildings of not more than five residential units as to which an
agreement has been duly made, executed and filed with said commissioner
for the payment of the delinquent taxes, assessments, or other legal
charges and the interest and penalties thereon, in installments. The
first installment thereof shall be paid upon the filing of the
installment agreement with the commissioner and shall be in an amount
not less than ten percent of such delinquent taxes, assessment or other
legal charges and the interest and penalty thereon. The remaining
installments, which shall be three times the number of unpaid quarters
of real estate taxes or the equivalent thereof but which shall in no
event exceed forty-eight in number, shall be payable quarterly on the
first days of July, October, January and April. For purposes of
calculating the number of such remaining installments unpaid real estate
taxes which are, on and after July first, nineteen hundred eighty-two,
due and payable on an other than quarterly basis shall be deemed to be
payable on a quarterly basis.
(4) Notwithstanding paragraph one, two or three of this subdivision,
with respect to installment agreements duly made, executed and filed on
or after the date on which this paragraph takes effect, the commissioner
of finance may also exclude or thereafter remove from such list any
parcel that is (i) (A) a residential building containing not more than
five residential units, (B) a residential condominium unit, (C) a
residential building held in a cooperative form of ownership or (D)
owned by a company organized pursuant to article XI of the state private
housing finance law with the consent and approval of the department of
housing preservation and development, and (ii) as to which an agreement
has been duly made, executed and filed with such commissioner for the
payment of the delinquent taxes, assessments or other legal charges, and
the interest and penalties thereon, in installments. The first
installment thereof shall be paid upon the filing of the installment
agreement with the commissioner and shall be in an amount equal to not
less than ten percent of the total amount of such delinquent taxes,
assessments or other legal charges and the interest and penalties
thereon. The remaining installments, which shall be three times the
number of unpaid quarters of real estate taxes or the equivalent
thereof, but which shall in no event exceed thirty-two in number, shall
be payable quarterly on the first days of July, October, January and
April. For the purposes of calculating the number of such remaining
installments, unpaid real estate taxes that are due and payable on other
than a quarterly basis shall be deemed to be payable on a quarterly
basis.
(5) Notwithstanding paragraph one, two or three of this subdivision,
with respect to installment agreements duly made, executed and filed on
or after the date on which this paragraph takes effect, the commissioner
of finance may also exclude or thereafter remove from such list any
parcel of class one or class two real property, other than a parcel
described in paragraph four of this subdivision, as to which an
agreement has been duly made, executed and filed with such commissioner
for the payment of the delinquent taxes, assessments or other legal
charges, and the interest and penalties thereon, in installments. The
first installment thereof shall be paid upon the filing of the
installment agreement with the commissioner and shall be in an amount
equal to not less than fifteen percent of the total amount of such
delinquent taxes, assessments or other legal charges and the interest
and penalties thereon. The remaining installments, which shall be twice
the number of unpaid quarters of real estate taxes or the equivalent
thereof, but which shall in no event exceed thirty-two in number, shall
be payable quarterly on the first days of July, October, January and
April. For the purposes of calculating the number of such remaining
installments, unpaid real estate taxes that are due and payable on other
than a quarterly basis shall be deemed to be payable on a quarterly
basis.
(6) Notwithstanding paragraph one, two or three of this subdivision,
with respect to installment agreements duly made, executed and filed on
or after the date on which this paragraph takes effect, the commissioner
of finance may also exclude or thereafter remove from such list any
parcel of class three or class four real property as to which an
agreement has been duly made, executed and filed with such commissioner
for the payment of the delinquent taxes, assessments or other legal
charges, and the interest and penalties thereon, in installments. The
first installment thereof shall be paid upon the filing of the
installment agreement with the commissioner and shall be in an amount
equal to not less than fifteen percent of the total amount of such
delinquent taxes, assessments or other legal charges and the interest
and penalties thereon. The remaining installments, which shall be twice
the number of unpaid quarters of real estate taxes or the equivalent
thereof, but which shall in no event exceed twenty in number, shall be
payable quarterly on the first days of July, October, January and April.
For the purposes of calculating the number of such remaining
installments, unpaid real estate taxes that are due and payable on other
than a quarterly basis shall be deemed to be payable on a quarterly
basis.
(7) A parcel for which any such installment agreement or agreements
have been filed with the commissioner shall be excluded or removed from
the list of delinquent taxes before the commencement of the in rem
action based upon such list only if the amounts paid pursuant to such
agreement exceed the amount required to pay all taxes and charges which
render said parcel eligible for inclusion in the in rem action and there
has been no default in such agreement prior to the commencement of said
action as to either quarterly installments or current taxes, assessments
or other legal charges.
(8) As a condition to entering into any agreement under this section
or section 11-409 of this chapter, the commissioner shall have received
from the applicant, an affidavit stating that each tenant located on the
parcel has been notified by certified mail that an application for an
installment agreement will be made and that a copy of a standard
agreement form has been included with such notification. Any false
statement in such affidavit shall not be grounds to cancel the agreement
or affect its validity in any way.
d. Two duplicate originals thereof, verified by the commissioner of
finance or a subordinate designated by the commissioner, shall be filed
in the office of the clerk of the county in which the parcels listed
therein are situated. Such filing shall constitute and have the same
force and effect as the filing and recording in such office of an
individual and separate notice of pendency of action and as the filing
in the supreme court in such county of an individual and separate
complaint by the city as to each parcel described in said list, to
enforce the payment of the delinquent taxes, assessments or other lawful
charges which have accumulated and become liens against such parcels.
e. Each county clerk with whom such a list of delinquent taxes is
filed shall, on the date of said filing, place and thereafter maintain
one duplicate original copy thereof, as separately and permanently bound
by the commissioner of finance, adjacent to and together with the block
index of notices of pendency of action and each county clerk shall, on
the date of said filing or as soon thereafter as with due diligence is
practicable, docket the parcels contained in the list of delinquent
taxes in said block index of notices of pendency of action, which shall
constitute due filing, recording and indexing of the separate notices
constituting said list of delinquent taxes in lieu of any other
requirement under rule sixty-five hundred eleven of the civil practice
law and rules or otherwise.
f. The commissioner of finance shall file a copy of each list of
delinquent taxes, certified as such copy by him or her or a subordinate
designated by the commissioner, in the borough office of the city
collector in the borough in which the parcels listed therein are
situated and in the office of the corporation counsel.
g. The validity of any proceeding hereunder shall not be affected by
any omission or error of the commissioner of finance in including or
excluding parcels from any such list or in the designation of a street
or street number or by any other similar omission or error.
Section 11-406
§ 11-406 Public notice of foreclosure. a. Upon the filing of a list of
delinquent taxes in the office of the county clerk, the commissioner of
finance forthwith shall cause a notice of foreclosure to be published at
least once a week for six successive weeks in the City Record and,
subject to section ninety-one of the judiciary law, in two newspapers,
one of which may be a law journal, to be designated by the commissioner
of finance, which are published in and are circulated throughout the
county in which the affected property is located. If there are no
newspapers published in such county, the commissioner of finance may
designate newspapers published in the city of New York which are
circulated throughout the affected county.
b. Such notice shall clearly indicate that it is a notice of
foreclosure of tax liens; the borough or the section of a tax map or
portion of a section of a tax map in which the properties subject to
foreclosure are located and where the area affected by the action
includes less than all parcels in an entire borough or section of a tax
map or portion of a section of a tax map, the particular class or
classes contained therein, and by a general description which need not
contain measurements and direction; where and when the list of
delinquent taxes was filed; the general nature of the information
contained in the list; that the filing of the list constitutes
commencement of a foreclosure action by the city in the supreme court
for the particular county and a notice of pendency of action against
each parcel listed; that such action is against the property only and no
personal judgment will be entered; that the list will be available for
inspection at the city collector's central office and at the borough
office of the city collector in the borough in which said property is
located until a specified date at least ten weeks after the date of
first publication; that until such date a parcel may be redeemed by
paying all taxes and charges contained in said list of delinquent taxes
together with interest and penalties thereon; that during said period of
redemption and for an additional period of twenty days after said last
date for redemption any person having any interest in or lien upon a
parcel on the list may file with the appropriate county clerk and serve
upon the corporation counsel a verified answer setting forth in detail
the full name of said answering party, the nature and amount of his or
her interest or lien and any legal defense against foreclosure; and that
in the absence of redemption or answer a judgment of foreclosure may be
taken by default.
c. On or before the date of the first publication of such notice, the
commissioner of finance shall cause a copy of the notice to be mailed to
all owners, mortgagees, lienors or encumbrancers, who may be entitled to
receive such notice by virtue of any owner's registration or in rem card
filed in the office of the city collector pursuant to section 11-416 or
11-417 of this chapter. If such owner's registration or in rem cards
have not been filed in the office of the city collector then said notice
shall be mailed to the name and address, if any, appearing in the latest
annual record of assessed valuations. The commissioner of finance shall
cause to be inserted with such notice a statement substantially in the
following form:
"To the party to whom the enclosed notice is addressed: You are the
presumptive owner or lienor of one or more of the parcels mentioned and
described in the list referred to in the attached notice. Unless the
taxes and assessments and all other legal charges are paid, or an answer
is interposed; or an arrangement is made for payment of such taxes and
assessments and all other legal charges in installments, as provided by
statute, the ownership of said property will in due course pass to the
city of New York as provided by the administrative code of the city of
New York."
The failure of the commissioner of finance to mail such notice shall
not affect the validity of any proceeding brought pursuant to this
chapter as to any parcel other than the parcel with respect to which
notice was not mailed.
d. The commissioner of finance shall cause a copy of such notice to be
posted in the office of the commissioner of finance, in the county
courthouse of the county in which the property subject to such tax lien
is situated and at three other conspicuous places in the borough in
which the affected properties are located.
Section 11-407
§ 11-407 Redemption. a. After the filing of a list of delinquent taxes
and until a date at least ten weeks after the first publication of the
public notice of foreclosure, as determined by the commissioner of
finance and specified in the said notice, a person claiming to have an
interest in any parcel in said list may redeem it by paying all taxes
and charges contained in said list of delinquent taxes together with
interest and penalties thereon.
b. Upon such redemption the commissioner of finance shall deliver to
the corporation counsel a certificate of redemption. The corporation
counsel shall file such certificate with the clerk of the county in
which said list was filed. The filing of such certificate shall
constitute and be deemed a discontinuance of the in rem action as to the
affected parcel, and the county clerk shall thereupon note such
redemption and discontinuance in the copy of the list of delinquent
taxes maintained by him or her adjacent to the county clerk's block
index of notices of pendency of action and shall cancel and discharge
any notations of the filing of said list of delinquent taxes as to said
parcel that may appear in any other books, records, indices and dockets
maintained in said clerk's office. The commissioner of finance shall
also deliver a duplicate original certificate of redemption to the
person who has redeemed.
c. When the time to redeem in an in rem tax foreclosure action has
expired, any person claiming to have an interest in a parcel included in
said action shall have the right to make a late redemption payment to
the commissioner of finance. Such late redemption payment shall consist
of all taxes and charges owing on said parcel, the lawful interest
thereon to the date of payment and a penalty of five percent of said
payment of taxes, charges and interest, which penalty may not exceed one
thousand dollars as to each parcel on which a late redemption payment is
being made. Such late redemption payment shall be made in cash or by
certified or bank check and shall be accepted by the commissioner of
finance at any time after the last day to redeem up to the date on which
the commissioner is advised by the corporation counsel that the
preparation of the judgment of foreclosure in the in rem action has been
commenced. Upon receipt of such late redemption payment, the
commissioner of finance shall issue a certificate of withdrawal pursuant
to the provisions of section 11-413 of this chapter.
Section 11-408
§ 11-408 Filing of affidavits. All affidavits of filing, publication,
posting, mailing or other acts required by this chapter shall be made by
the person or persons performing such acts and shall be filed in the
office of the county clerk of the county in which the property subject
to such tax lien is situated and shall together with all other documents
required by this chapter to be filed in the office of such county clerk,
constitute and become a part of the judgment roll in such foreclosure
action.
Section 11-409
§ 11-409 Severance and trial of issues where answer is interposed;
installment agreements authorized after action commenced. a. If a duly
verified answer is served upon the corporation counsel not later than
twenty days after the last date for redemption, the answering defendant
shall have the right to a severance of the action, as to any parcel in
which the defendant has pleaded an interest, upon written demand
therefor filed with or made a part of his or her answer.
b. When such answer is interposed, the court shall summarily hear and
determine the issues raised by the complaint and answer in the same
manner as it hears and determines other actions, except as herein
otherwise provided. Proof that the taxes which made said property
subject to foreclosure hereunder together with interest and penalties
thereon, were paid before filing of the list of delinquent taxes or that
the property was not subject to tax shall constitute a complete defense.
c. No counterclaim may be asserted in an answer interposed in an
action brought pursuant to this chapter. Where a counterclaim is
asserted in an in rem answer the city may disregard that portion of the
answer and shall suffer no legal penalty or impediment in the
prosecution of its in rem action for its failure to reply or respond
thereto. Where an answer contains only a counterclaim and no other
defenses the city may proceed to judgment of foreclosure against the
property affected without the need for moving against the answer.
d. When a verified answer alleges a substantial equity over the city's
lien for taxes, the defendant may demand additional time in which to pay
the taxes and interest or to have the property sold with all taxes and
interest to be paid out of the proceeds of such sale. Upon such demand a
defendant shall have the right to an extension of time for such purpose
not in excess of six months from the last day to interpose an answer.
Where a mortgagee or lienor who has interposed such answer commences a
proceeding to foreclose his or her mortgage or lien and it appears that
with due diligence such proceeding cannot be concluded in time to allow
the payment of taxes within the aforesaid six month period, the court
may, on application before the end of said six month period, authorize
an additional period during which such proceeding may be concluded and
the taxes, together with interest and penalties, paid.
e. Where an answer of the type described in subdivision d of this
section is interposed and taxes are paid within the period set forth in
such subdivision d, the commissioner of finance shall issue a
certificate of withdrawal as to the property on which such payment has
been made pursuant to the provisions of section 11-413 of this chapter.
When taxes are not paid within the period set forth in such subdivision
d, it shall be deemed that there was no equity over the city's tax liens
and the answer shall be deemed to be without merit. The city in that
event may proceed to judgment of foreclosure against such property
without moving against the answer.
f. All answers interposed in an action hereunder and all affidavits
and other papers pertaining to any litigation involving such answers or
to any proceeding brought pursuant to this chapter involving less than
an entire action shall bear a caption containing the in rem action
number of the city's tax foreclosure proceeding, the borough or the
section of a tax map or portion of a section of a tax map affected, and
if the action covers less than all parcels in an entire borough or
section of a tax map or portion of a section of a tax map, the
particular class or classes, and the serial, section, block and lot
numbers of the parcel or parcels in issue.
g. The corporation counsel, when submitting an in rem judgment roll
pursuant to the provisions of this chapter, may request a severance as
to any parcel on which an in rem answer or litigation is pending, or as
to which, before the preparation of said in rem judgment roll is
commenced, an agreement was duly made, executed and filed with the
commissioner of finance for the payment of the delinquent taxes,
assessments or other legal charges and interest and penalties in
installments as provided in subdivision c of section 11-405 of this
chapter and there has been no default in such agreement as to either
quarterly installments or current taxes, assessments or other legal
charges. Where such an agreement is entered into subsequent to the last
date for redemption specified in subdivision a of section 11-407 of this
chapter, there shall be paid to the commissioner of finance at the time
the aforesaid agreement is executed an amount equal to the penalty which
would have been payable under subdivision c of section 11-407 of this
chapter had the person executing the agreement made a late redemption
payment. Such amount shall be in addition to any installment payments
required to be made under the agreement and shall not be credited
against any such installment payments. Where a default occurs in such
agreement as to either quarterly installments or current taxes,
assessments or other legal charges, all payments made under the
agreement shall be forfeited and the city shall be entitled to acquire
the parcel as to which the default occurred. Where such default occurs
before the submission of the judgment roll, the parcels as to which such
default occurs shall be included in said judgment roll among the parcels
to be acquired by the city. Where such default has occurred as to a
parcel severed pursuant to this subdivision, the corporation counsel
shall cause to be entered a supplemental judgment of foreclosure as to
such parcel immediately on notification by the commissioner of finance
of such default. Where such installment agreement is paid in full the
commissioner of finance shall discontinue the in rem action from which
said parcel was severed by issuing a certificate of withdrawal as to
said parcel pursuant to the provisions of section 11-413 of this
chapter.
h. A party who has interposed an answer as to any parcel included in
an in rem tax foreclosure action, or any other party interested in such
parcel, shall have the right, at any time prior to the final disposition
of a motion to strike said answer, to pay all taxes, assessments and
other legal charges and interest owing on said parcel. An answering
party who makes such payment shall not be required to pay any penalty.
Where such payment is made by other than an answering party after the
expiration of the period of redemption, there shall be paid to the
commissioner of finance an additional amount equal to the penalty
payable under subdivision c of section 11-407 of this chapter. Where all
delinquent taxes, assessments and other legal charges together with
lawful interest thereon and penalties, where required, are paid, the
commissioner of finance shall issue a certificate of withdrawal as to
said parcel pursuant to the provisions of section 11-413 of this
chapter. Said parties may also pay such taxes, assessments and other
legal charges and interest by an installment agreement. Where such
agreement is requested before the preparation of the aforesaid in rem
judgment roll is commenced, the terms of said agreement shall be
consistent with the provisions of subdivision g or i of this section,
whichever is applicable. Where such agreement is requested after
judgment of foreclosure has been entered in the in rem action in which
the aforesaid answer was interposed, said agreement shall require a
first installment of fifty percent of all taxes, assessments and other
legal charges and interest owing on said parcel, a penalty of five
percent of all such taxes, assessments and other legal charges and
interest, which penalty may not exceed one thousand dollars, and the
payment of the balance of such taxes, assessments and other legal
charges and interest in four equal quarterly installments together with
all current taxes, assessments and other legal charges that accrue
during such period. The request of an answering party for an installment
agreement shall constitute a withdrawal of such party's answer. An
installment agreement requested by an interested party other than the
answering party shall require the consent of said answering party which
shall also constitute a withdrawal of such party's answer. The severance
provided for in this section shall be continued during the term of all
installment agreements entered into pursuant to the provisions of this
subdivision. Where a default has occurred as to a parcel severed
pursuant to this subdivision, the corporation counsel shall cause to be
entered a supplemental judgment of foreclosure as to such parcel
immediately on notification by the commissioner of finance of such
default. Where such installment agreement is paid in full, the
commissioner of finance shall discontinue the in rem action from which
said parcel was severed by issuing a certificate of withdrawal as to
said parcel pursuant to the provisions of section 11-413 of this
chapter.
i. (1) Notwithstanding subdivision g of this section, this subdivision
shall apply with respect to installment agreements made, executed and
filed with the commissioner of finance on or after the date on which
this subdivision takes effect. An installment agreement pursuant to this
subdivision may be made, executed and filed with such commissioner
during the period beginning on the date on which an action is commenced
as provided in subdivision d of section 11-405 of this chapter with
respect to the parcel that is the subject of such agreement and ending
on the date on which such commissioner is advised by the corporation
counsel that the preparation of the judgment of foreclosure in such in
rem action has been commenced. Notwithstanding anything to the contrary,
and except to the extent provided in paragraph two of this subdivision,
the provisions of paragraphs one through six of subdivision c of section
11-405 of this chapter shall not apply to any installment agreement
requested on or after the date on which this subdivision takes effect
and on or after the date on which an action is commenced as provided in
subdivision d of such section 11-405 with respect to the parcel that is
the subject of such requested agreement.
(2) An agreement entered into pursuant to this subdivision shall
provide for the payment in installments of the delinquent taxes,
assessments and other legal charges, and the interest and penalties
thereon, due and owing as of the date on which such agreement is
requested. Unless an eligible owner or other interested person requests
an agreement pursuant to the provisions of paragraph three of this
subdivision, the terms of such agreement with respect to a parcel shall
be the same as the terms that would be applicable to such parcel under
paragraph four, five or six, as the case may be, of subdivision c of
section 11-405 of this chapter, except that, for purposes of the
agreement pursuant to this paragraph, the amount of the first
installment shall be equal to: (i) fifteen percent of the total amount
due in the case of a parcel described in such paragraph four; (ii)
twenty percent of the total amount due in the case of a parcel described
in such paragraph five; and (iii) twenty-five percent of the total
amount due in the case of a parcel described in such paragraph six.
(3) Instead of an agreement pursuant to paragraph two of this
subdivision, an eligible owner or other interested party may request an
agreement pursuant to the following provisions:
(i) With respect to a parcel that is owned by a company organized
pursuant to article XI of the state private housing finance law with the
consent and approval of the department of housing preservation and
development, such agreement shall provide for the payment in
installments of the delinquent taxes, assessments and other legal
charges, and the interest and penalties thereon, due and owing as of the
date on which such agreement is requested. The first installment thereof
shall be paid upon the filing of the installment agreement with the
commissioner of finance and shall be in an amount at least equal to, at
the applicant's election, either thirty-five percent or fifty percent of
the total amount of such delinquent taxes, assessments or other legal
charges and the interest and penalties thereon. The remaining
installments, which shall be three times the number of unpaid quarters
of real estate taxes or the equivalent thereof, but which shall in no
event exceed thirty-two in number, shall be payable quarterly on the
first days of July, October, January and April, together with interest
at the rate or rates determined as provided in subparagraph (iv) of this
paragraph. For the purposes of calculating the number of such remaining
installments, unpaid real estate taxes that are due and payable on other
than a quarterly basis shall be deemed to be payable on a quarterly
basis.
(ii) With respect to a parcel, other than a parcel described in
subparagraph (i) of this paragraph, that is a residential building
containing not more than five residential units, a residential
condominium unit or a residential building held in a cooperative form of
ownership, such agreement shall provide for the payment in installments
of the delinquent taxes, assessments and other legal charges, and the
interest and penalties thereon, due and owing as of the date on which
such agreement is requested. The first installment thereof shall be paid
upon the filing of the installment agreement with the commissioner of
finance and shall be in an amount at least equal to, at the applicant's
election, either twenty-five percent or fifty percent of the total
amount of such delinquent taxes, assessments or other legal charges and
the interest and penalties thereon. The remaining installments, which
shall be three times the number of unpaid quarters of real estate taxes
or the equivalent thereof, but which shall in no event exceed twenty in
number, shall be payable quarterly on the first days of July, October,
January and April together with interest at the rate or rates determined
as provided in subparagraph (iv) of this paragraph. For the purposes of
calculating the number of such remaining installments, unpaid real
estate taxes that are due and payable on other than a quarterly basis
shall be deemed to be payable on a quarterly basis.
(iii) With respect to any parcel of class one or class two real
property, other than a parcel described in subparagraph (i) or (ii) of
this paragraph, such agreement shall provide for the payment in
installments of the delinquent taxes, assessments and other legal
charges, and the interest and penalties thereon, due and owing as of the
date on which such agreement is requested. The first installment thereof
shall be paid upon the filing of the installment agreement with the
commissioner of finance and shall be in an amount at least equal to, at
the applicant's election, either thirty-five percent or fifty percent of
the total amount of such delinquent taxes, assessments or other legal
charges and the interest and penalties thereon. The remaining
installments, which shall be twice the number of unpaid quarters of real
estate taxes or the equivalent thereof, but which shall in no event
exceed twenty in number, shall be payable quarterly on the first days of
July, October, January and April, together with interest at the rate or
rates determined as provided in subparagraph (iv) of this paragraph. For
the purposes of calculating the number of such remaining installments,
unpaid real estate taxes that are due and payable on other than a
quarterly basis shall be deemed to be payable on a quarterly basis.
(iv) (A) Notwithstanding any higher rate of interest prescribed
pursuant to applicable law, and unless a lower rate of interest is
applicable to a delinquent amount owing on a parcel that is the subject
of an agreement pursuant to this paragraph, the interest payable
together with the remaining installments due under such agreement shall
be:
(I) with respect to an agreement for which a twenty-five percent or
thirty-five percent down payment was made, calculated at a rate equal to
the sum of (a) the rate prescribed for the applicable period pursuant to
paragraph (i) of subdivision e of section 11-224.1 of this title and (b)
one-half of the difference between such rate and the rate prescribed for
such period pursuant to paragraph (ii) of subdivision e of section
11-224.1 of this title; or
(II) with respect to an agreement for which a fifty percent down
payment was made, calculated at a rate equal to the rate prescribed for
the applicable period pursuant to paragraph (i) of subdivision e of
section 11-224.1 of this title.
(B) If a default occurs in any agreement executed pursuant to this
paragraph as to either quarterly installments or current taxes,
assessments or other legal charges, the rates of interest determined
under this subparagraph shall thereupon cease to be applicable and the
commissioner of finance shall thereafter charge, collect and receive
interest in the manner and at the rates otherwise prescribed pursuant to
law.
(4) The corporation counsel, when submitting an in rem judgment roll
pursuant to the provisions of this chapter, may request a severance as
to any parcel as to which, before the preparation of said in rem
judgment roll is commenced, an agreement was duly made, executed and
filed with the commissioner of finance for the payment of all delinquent
taxes, assessments and other legal charges and interest and penalties in
installments as provided in this subdivision, and there has been no
default in such agreement as to either quarterly installments or current
taxes, assessments or other legal charges. Where such an agreement is
entered into subsequent to the last date for redemption specified in
subdivision a of section 11-407 of this chapter, there shall be paid to
the commissioner of finance at the time such agreements are executed an
amount equal to the penalty that would have been payable under
subdivision c of section 11-407 of this chapter had the person executing
the agreement made a late redemption payment. Such amount shall be in
addition to any installment payments required to be made under the
agreement and shall not be credited against any such installment
payments. Where a default occurs in such agreement as to either
quarterly installments or current taxes, assessments or other legal
charges, all payments made under the agreement shall be forfeited and
the city shall be entitled to obtain a judgment hereunder as to the
parcel as to which the default occurred. Where such default occurred
before the submission of the judgment roll, the parcels as to which such
default occurs shall be included in said judgment roll amount the
parcels to be acquired by the city or by a third party. Where such
default has occurred as to a parcel severed pursuant to this
subdivision, the corporation counsel shall cause to be entered a
supplemental judgment of foreclosure as to such parcel immediately on
notification by the commissioner of finance of such default. Where such
installment agreement is paid in full, the commissioner of finance shall
discontinue the in rem action from which such parcel was severed by
issuing a certificate of withdrawal as to such parcel pursuant to the
provisions of section 11-413 of this chapter.
Section 11-410
§ 11-410 Preference over other actions. a. Any action brought pursuant
to this chapter shall be given preference over all other causes and
actions.
b. Actions brought pursuant to this chapter shall take precedence over
any proceeding brought to foreclose a mortgage or other lien involving
the same property. A parcel included in a list of delinquent taxes which
is sold in a mortgage foreclosure sale held after said list is filed may
not be sold subject to taxes even if judgment has not yet been entered
in the tax foreclosure action. All unpaid taxes and interest and
penalties thereon must be paid, in full or by installment agreement
pursuant to the provisions of this chapter, out of the proceeds of such
sale regardless of whether the mortgage foreclosure lis pendens was
filed before or after the filing of the tax foreclosure action,
regardless of whether any party to the mortgage foreclosure proceeding
has interposed an answer in the tax foreclosure action and regardless of
any terms to the contrary in the judgment in the mortgage foreclosure
proceeding.
Section 11-411
§ 11-411 Presumption of validity. It shall not be necessary for the
city to plead or prove the various steps, procedures and notices for the
assessment and levy of the taxes, assessments or other lawful charges
against the parcels set forth in the list of delinquent taxes and all
such taxes, assessments or other lawful charges and the lien thereof
shall be presumed to be valid. A defendant alleging any jurisdictional
defect or invalidity in such taxes, assessments or other lawful charges
or in the foreclosure thereof must particularly specify in his or her
answer such jurisdictional defect or invalidity and must affirmatively
establish such defense. A judgment of foreclosure granted in any
proceeding brought pursuant to this chapter, which contains recitals
that any acts were done or proceedings had which were necessary to give
the court jurisdiction or power to grant such judgment of foreclosure,
shall be presumptive evidence that such acts were duly performed or
proceedings duly had, if such judgment of foreclosure shall have been
duly entered or filed in the office of the clerk of the county in which
the proceeding was pending and wherein such judgment was granted. The
provisions of this chapter shall apply to and be valid and effective
with respect to all defendants even though one or more of them be
infants, incompetents, absentees or non-residents of the state of New
York.
Section 11-412
§ 11-412 Final judgment. a. The court shall determine upon proof
and shall make finding upon such proof whether there has been due
compliance by the city with the provisions of this chapter.
b. The court shall make a final judgment awarding to the city the
possession of any parcel described in the list of delinquent taxes not
redeemed or withdrawn as provided in this chapter and as to which no
answer is interposed as provided herein. In addition thereto, such
judgment shall contain a direction to the commissioner of finance to
prepare, execute and cause to be recorded a deed conveying to the city
full and complete title to such lands. Upon the execution of such deed,
the city shall be seized of an estate in fee simple absolute in such
land and all persons, including the state of New York, infants,
incompetents, absentees and non-residents who may have had any right,
title, interest, claim, lien or equity of redemption in or upon such
lands shall be barred and forever foreclosed of all such right, title,
interest, claim, lien or equity of redemption, except as otherwise
provided in section 11-424 of this chapter. The appointment and tenure
of receivers, trustees or any other persons, including administrators
under article seven-A of the real property actions and proceedings law,
appointed by an order of a court to manage real property, shall
terminate when title to such property vests in the city pursuant to the
provisions of this chapter. After such termination, said receivers,
trustees or administrators shall be accountable to the courts that
appointed them for the faithful performance of their fiduciary
obligations during the term of their appointment and to the city for any
rents and income received by them for any period subsequent to the date
of the vesting of title in the city.
If the city serves a tenant in possession of a dwelling unit with
notice of termination of tenancy on grounds other than non-payment of
rent, the acceptance of rent for the first forty-five days after
termination of tenancy by anyone other than an employee of the
department designated by the department to receive such rent shall not
be deemed or construed as a waiver of the city's right to initiate and
prosecute a proceeding to terminate the tenancy for good cause.
c. Every deed given pursuant to the provisions of this section shall
be presumptive evidence that the action and all proceedings therein and
all proceedings prior thereto from and including the assessment of the
lands affected and all notices required by law were regular and in
accordance with all provisions of law relating thereto. After two years
from the date of the recording of such deed, the presumption shall be
conclusive, unless at the time that this subdivision takes effect the
two year period since the recording of the deed has expired or less than
six months of such period of two years remains unexpired, in which case
the presumption shall become conclusive six months after this
subdivision takes effect. No action to set aside such deed may be
maintained unless the action is commenced and a notice of pendency of
the action is filed in the office of the proper county clerk prior to
the time that the presumption becomes conclusive as aforesaid.
Section 11-412.1
§ 11-412.1 Special procedures relating to final judgment and release
of class one and class two real property. Notwithstanding any other
provision of law to the contrary:
a. The court shall determine upon proof and shall make a finding upon
such proof whether there has been due compliance by the city with the
applicable provisions of this chapter.
b. (1) The court shall make a final judgment authorizing the award of
possession of any parcel of class one or class two real property
described in the list of delinquent taxes not redeemed or withdrawn as
provided in this chapter and as to which no answer is interposed as
provided herein, and authorizing the commissioner of finance to prepare,
execute and cause to be recorded a deed conveying either to the city or
to a third party deemed qualified and designated by the commissioner of
housing preservation and development full and complete title to such
lands. Any such conveyance to a third party shall be for an existing
use.
(2) Such third party shall be deemed qualified and shall be designated
pursuant to such criteria as are established in rules promulgated by the
commissioner of housing preservation and development, provided, however,
that such criteria shall include but not be limited to: residential
management experience; financial ability; rehabilitation experience;
ability to work with government and community organizations;
neighborhood ties; and that the commissioner shall consider whether the
third party is a responsible legal tenant, not-for-profit organization
or neighborhood-based-for-profit individual or organization. The
commissioner shall not deem qualified any third party who has been
finally adjudicated by a court of competent jurisdiction, within seven
years of the date on which such third party would otherwise be deemed
qualified, to have violated any section of articles one hundred fifty,
one hundred seventy-five, one hundred seventy-six, one hundred eighty,
one hundred eighty-five or two hundred of the penal law or any similar
laws of another jurisdiction, or who has been suspended or debarred from
contracting with the city or any agency of the city pursuant to section
335 of the charter during the period of such suspension or debarment.
The rules promulgated by the commissioner pursuant to this paragraph may
establish other bases for disqualification of a third party.
c. Following the expiration of the four-month period prescribed in
subdivision d of this section, but not more than eight months after the
date on which, pursuant to subdivision b of this section, the final
judgment authorizing the award of possession of a parcel of class one or
class two real property was entered, the commissioner of finance may
execute a deed, pursuant to subdivision b of this section, with respect
to such parcel. The owner of said parcel shall continue to have all of
the rights, liabilities, responsibilities, duties and obligations of an
owner of such parcel, including, but not limited to, maintaining such
parcel in compliance with the housing maintenance, building and fire
codes, and all other applicable laws, unless and until the commissioner
of finance has prepared and executed a deed conveying to the city or to
a third party full and complete title to such parcel. Upon the execution
of such deed, the city or the third party shall be seized of an estate
in fee simple absolute in such land and all persons, including the state
of New York, infants, incompetents, absentees and non-residents who may
have had any right, title, interest, claim, lien or equity of redemption
in or upon such lands shall be barred and forever foreclosed of all such
right, title, interest, claim, lien or equity of redemption, except as
otherwise provided in subdivisions e and f of this section. The
appointment and tenure of receivers, trustees or any other persons,
including administrators under article seven-A of the real property
actions and proceedings law, appointed by an order of a court to manage
real property, shall terminate when title to such property vests in the
city or a third party pursuant to the provisions of this chapter. After
such termination, said receivers, trustees or administrators shall be
accountable to the courts that appointed them for the faithful
performance of their fiduciary obligations during the term of their
appointment and to the city or such third party for any rents and income
received by them for any period subsequent to the date of the vesting of
title in the city or such third party.
If the city serves a tenant in possession of a dwelling unit with
notice of termination of tenancy on grounds other than nonpayment of
rent, the acceptance of rent for the first forty-five days after
termination of tenancy by anyone other than an employee of the
department designated by the department to receive such rent shall not
be deemed or construed as a waiver of the city's right to initiate and
prosecute a proceeding to terminate the tenancy for good cause.
d. Within four months after the date on which, pursuant to subdivision
b of this section, the final judgment authorizing the award of
possession of a parcel of class one or class two real property was
entered, any person claiming to have an interest in such parcel shall
have the right to make a payment to the commissioner of finance
consisting of all taxes, assessments and other legal charges owing on
said parcel, the lawful interest thereon to the date of payment and a
penalty of five percent of said payment of taxes, assessments and other
legal charges and interest, which penalty may not exceed one thousand
dollars. Such payment shall be made in cash or by certified or bank
check. Within such four-month period, such interested person may also
request an installment agreement from the commissioner of finance. Such
agreement shall require, in addition to full payment of the penalty
specified in this subdivision at the time such agreement is entered
into, the payment at such time of a first installment equal to fifty
percent of all taxes, assessments and other legal charges, and the
lawful interest thereon, then owing on such parcel, and the payment of
the balance of such taxes, assessments and other legal charges and
interest in four equal quarterly installments together with all current
taxes, assessments and other legal charges that accrue during such
period. Upon receipt of payment in full of the amount specified in the
first sentence of this subdivision, the commissioner of finance shall
direct the corporation counsel to prepare and cause to be entered an
order discontinuing the in rem tax foreclosure action as to said
property, cancelling the notice of pendency of such action as to said
property and vacating and setting aside the final judgment. Upon the
execution of an installment agreement and payment of the amounts due at
the time such agreement is executed as provided in this subdivision, the
commissioner of finance shall direct the corporation counsel to prepare
and cause to be entered an order vacating and setting aside the final
judgment. The entry of either such order shall restore all parties,
including owners, mortgagees and any and all lienors, receivers and
administrators and encumbrancers, to the status they held immediately
before such final judgment was entered. Where the commissioner of
finance approves an application requesting an installment agreement
pursuant to this subdivision, the order vacating and setting aside the
final judgment shall provide that in the event of any default as to the
payment of either quarterly installments or current taxes, assessments
or other legal charges during the term of such agreement, all payments
under said agreement shall be forfeited and the corporation counsel,
immediately upon notification by the commissioner of finance of such
default, shall cause to be entered as to such property a supplemental
judgment of foreclosure in the in rem action which authorizes the
commissioner of finance to prepare, execute and cause to be recorded a
deed conveying either to the city or to a third party full and complete
title to such lands. Upon the entry of such supplemental judgment, the
provisions of subdivisions c through i of this section shall apply in
the same manner as such subdivisions would have applied had no payment
been made nor installment agreement executed during the four-month
period specified in this subdivision.
e. 1. If the commissioner of finance has prepared, executed and caused
to be recorded a deed conveying to the city full and complete title to a
parcel of class one or class two real property acquired by in rem tax
foreclosure, the city's interest in such parcel may be released pursuant
to this subdivision on the application of any party who has an interest
in said parcel as either owner, mortgagee, lienor, or encumbrancer at
the time of the city's acquisition thereof where such application is
made at any time up to sixteen months from the date on which the deed by
which the city acquired title to said parcel was recorded.
2. Any such application shall be made in writing to the commissioner
of general services and shall be verified. It shall contain the
information required pursuant to paragraph one of subdivision b of
section 11-424 of this chapter, the documents required by subdivision c
of such section, and shall be accompanied by the fees required by
paragraphs three and six of subdivision b of such section. The fee
required by paragraph three of subdivision b of section 11-424 of this
chapter shall not be refundable.
3. The city's interest in any such parcel shall be released only after
payment of the sums of money specified in subdivision d of section
11-424 of this chapter.
4. The provisions contained in subdivision g of section 11-424 of this
chapter shall govern such an application, except as follows:
(a) where such provisions are inconsistent with the provisions
contained in this subdivision, the provisions contained in this
subdivision shall govern such application; and
(b) where the in rem foreclosure release board denies a written
request for an installment agreement that was filed in connection with
an application for release of the city's interest in a parcel of class
one or class two real property and such application was filed within
thirty days of the date of the city's acquisition of the property sought
to be released, the board may, in its discretion, authorize a release of
the city's interest, provided that the applicant thereafter pays all the
amounts required to be paid pursuant to subdivision d of section 11-424
of this chapter within thirty days of the date on which a letter
requesting such payment is mailed or delivered to such applicant.
5. Upon receipt of all the amounts required to be paid pursuant to
this subdivision, the commissioner of finance shall direct the
corporation counsel to prepare and cause to be entered an order
discontinuing the in rem tax foreclosure action as to said property,
cancelling the notice of pendency of such action as to said property and
vacating and setting aside the final judgment entered pursuant to
subdivision b of this section and the deed executed and recorded
pursuant to such final judgment as to said property. The entry of such
order shall restore all parties, including owners, mortgagees and any
and all lienors, receivers and administrators and encumbrancers, to the
status they held immediately before the final judgment was entered, as
if the in rem tax foreclosure had never taken place, and shall render
said property liable for all taxes, deficiencies, management fees and
liens which shall accrue subsequent to those paid in order to obtain the
release provided for in this subdivision, or which were, for whatever
reason, omitted from the payment made to obtain said release.
f. If the commissioner of finance has prepared, executed and caused to
be recorded a deed conveying to the city full and complete title to a
parcel of class one or class two real property acquired by in rem tax
foreclosure and such parcel is entitled to an exemption under any of the
provisions of article four of the real property tax law during all or
part of the period covered by the tax items appearing on a list of
delinquent taxes, the owner of such parcel may apply for a release of
the city's interest in such exempt property under the provisions of
subdivision e of this section during the period of time set forth in
paragraph one of such subdivision and for an additional period up to ten
years from the date on which the deed by which the city acquired title
to said property was recorded. The application of such owner shall be
accompanied by the nonrefundable fee required by paragraph four of
subdivision b of section 11-424 of this chapter and shall contain, in
addition to the statements, searches and proofs required by subdivision
e of this section, a statement that an exemption under the real property
tax law is being claimed. Such application shall also state either that
it is accompanied by the written certificate of the comptroller setting
forth the precise period during which said property, while owned by such
application, and during the period after the city's acquisition up to
the date of the certificate if said property was still being used for an
exempt purpose after said acquisition, was entitled to an exemption and
the exact nature and extent of such exemption or that an application for
such written certificate has been filed with the comptroller. On issuing
such written certificate, the comptroller shall cancel those tax items
which have accrued during the period covered by the certificate to the
extent the applicant is entitled to an exemption as set forth in the
certificate. A release of the city's interest may be authorized only at
the discretion of the in rem foreclosure release board and, except as
otherwise provided in paragraph four of subdivision e of this section,
subject to all the restrictions set forth in subdivision g of section
11-424 of this chapter. A release to an exempt applicant shall be
effected only after said applicant has paid all of the amounts required
to be paid by subdivision d of section 11-424 of this chapter, except
for those tax items which have been canceled, in whole or in part,
pursuant to the comptroller's certificate, within thirty days of the
date on which the letter requesting payment is mailed or delivered to
the applicant.
g. If the commissioner of finance has prepared, executed and caused to
be recorded a deed conveying to the city or to a third party full and
complete title to a parcel of class one or class two real property
acquired by in rem tax foreclosure, the provisions contained in
subdivisions f and i of section 11-424 of this chapter for the release
of property so acquired shall not be available. If the commissioner of
finance has prepared, executed and caused to be recorded a deed
conveying to a third party full and complete title to a parcel of class
one or class two real property acquired by in rem tax foreclosure, the
provisions contained in subdivisions e and f of this section for the
release of property so acquired shall not be available.
h. Every deed given pursuant to the provisions of this section shall
be presumptive evidence that the action and all proceedings therein and
all proceedings prior thereto from and including the assessment of the
lands affected and all notices required by law were regular and in
accordance with all provisions of law relating thereto. After four
months from the date of entry of the final judgment authorizing the
award of possession of any parcel of class one or class two real
property pursuant to the provisions of this section, the presumption
shall be conclusive. No action to set aside such deed may be maintained
unless the action is commenced and a notice of pendency of the action is
filed in the office of the property county clerk prior to the time that
the presumption becomes conclusive as aforesaid. Should any lawsuit or
proceeding be commenced to set aside a deed conveying to a third party a
parcel of class one or class two real property pursuant to the
provisions of this section, such third party shall send to the
corporation counsel within ten days of their receipt a copy of any
papers served on such third party in such lawsuit or proceeding.
i. If the commissioner of finance does not execute a deed conveying to
the city or to a third party a parcel of class one or class two real
property within eight months after the entry of final judgment
authorizing the award of possession of such parcel pursuant to
subdivision b of this section, the commissioner of finance shall direct
the corporation counsel to prepare and cause to be entered an order
discontinuing the in rem foreclosure action as to said property,
canceling the notice of pendency of such action as to said property and
vacating and setting aside said final judgment. The entry of such order
shall restore all parties, including owners, mortgagees and any and all
lienors, receivers and administrators and encumbrancers, to the status
they held immediately before such final judgment was entered.
j. If the commissioner of finance directs the corporation counsel,
pursuant to subdivision i of this section, to prepare and cause to be
entered an order discontinuing the in rem foreclosure action with
respect to a parcel of class one or class two real property determined
to be distressed pursuant to section 11-401.1 of this chapter, the
commissioner of housing preservation and development shall evaluate the
parcel determined to be distressed and take such action as he or she
deems appropriate under the programs, existing at the time of such
evaluation, that are designed to encourage the rehabilitation and
preservation of existing housing, and shall monitor or cause to be
monitored the status of the property. The commissioner of housing
preservation and development shall maintain a register of properties
determined to be distressed.
Section 11-412.2
§ 11-412.2 Council review of conveyance to a third party. The
commissioner of finance shall, prior to the execution of a deed
conveying full and complete title of any parcel of class one or class
two real property to a third party pursuant to subdivision c of section
11-412.1 of this chapter, notify the council of the proposed conveyance.
Within forty-five days of such notification, the council may act by
local law disapproving the proposed conveyance. In the event the council
does not act by local law within such forty-five day period, the council
shall be deemed to have approved the proposed conveyance. During such
forty-five day period or, if the city council acts by local law pursuant
to this section, during the period of time from the notification of the
council to the presentation to the mayor of such local law and during
any additional period of time prescribed in section 37 of the charter,
the eight-month period provided in subdivisions c and i of section
11-412.1 of this chapter shall be tolled.
Section 11-413
§ 11-413 Withdrawal of parcels from foreclosure. a. The commissioner
of finance may, prior to final judgment, withdraw a parcel from a
proceeding under this chapter for any of the following reasons, (1) a
question which the commissioner deems meritorious has been raised as to
the validity of the tax liens affecting the parcel, (2) the city
collector has accepted a payment of all taxes and interest which
rendered the parcel subject to foreclosure hereunder because the records
in the commissioner's office indicated that the principal amount of such
taxes was exceeded by the principal amount of subsequent taxes which
would not have rendered the parcel subject to foreclosure hereunder and
which had been paid prior to the commencement of said proceeding or (3)
in cases where the tax foreclosure action cannot be maintained such as,
but not limited thereto, where the charges which rendered a parcel
subject to foreclosure hereunder have been cancelled or were paid before
the commencement of the foreclosure proceeding but such payment was not
reported or did not clear for payment until after the commencement of
said proceeding, or where a name and address appearing on an owner's
registration card or an in rem card filed pursuant to section 11-416 or
11-417 of this chapter and contained in the files of the city collector
did not appear in the mailing list used by the commissioner of finance
for mailing notices of foreclosure in such proceeding.
b. To effectuate such withdrawal the commissioner of finance shall
deliver a certificate of withdrawal to the corporation counsel who shall
file it in the office of the county clerk in which the list of
delinquent taxes was filed. The filing of such certificate with such
county clerk shall effect a discontinuance of the tax foreclosure action
as to the affected parcel, and the county clerk shall thereupon note
such withdrawal and discontinuance in the copy of the list of delinquent
taxes maintained by him or her adjacent to the county clerk's block
index of notices of pendency of action and shall cancel and discharge
any and all notations of the filing of said list of delinquent taxes as
to said parcel that may appear in any other books, records, indices and
dockets maintained in said clerk's office.
c. The commissioner of finance shall also deliver a duplicate original
certificate of withdrawal to the person entitled to such withdrawal.
d. The commissioner of finance shall recite the parcels so withdrawn
and the reasons for withdrawal in an affidavit of regularity to be
submitted by the commissioner in each action brought pursuant to this
chapter.
e. The commissioner of finance shall issue a certificate of withdrawal
whenever taxes and interest are paid, cancelled, liquidated or otherwise
lawfully disposed of as to any parcel which was previously severed
pursuant to section 11-409 of this chapter because an answer or
litigation was pending.
Section 11-414
§ 11-414 Right of redemption not diminished. The period of time in
which any owner of, or other person having an interest in a parcel of
property may redeem from a sale of a transfer of tax lien is not hereby
diminished nor shall such period of time be diminished by the
commencement of any action brought pursuant to this chapter.
Section 11-415
§ 11-415 Priority of liens. Tax liens shall rank in priority as may
now, or as may hereafter, be provided by law.
Section 11-416
§ 11-416 Owner's registration cards; mailing tax bills and notices to
registered owners or their designees. a. The commissioner of finance
shall maintain a file of owner's registration cards submitted by owners
of real property. Each such owner's registration card shall be signed by
the owner or a duly authorized representative and shall state the date
on which it was filed, the owner's full name and post office address and
a description of the premises by reference to the section, block, and
lot numbers on the tax map.
b. The commissioner of finance shall mail bills for taxes, charges and
assessments to all owners who have filed owner's registration cards as
herein provided, but the failure of the commissioner of finance so to
mail such bill shall not invalidate or otherwise affect the tax, charge
or assessment represented thereby nor prevent the accruing of any
interest or penalty imposed for the non-payment thereof, nor prevent or
stay proceedings under this chapter, nor effect the title of the
plaintiff or any purchaser under such proceedings.
c. The commissioner of finance shall also mail notice of foreclosure
and any other process required by this chapter to all owners who have
filed owner's registration cards whenever the parcels as to which such
cards were filed are included in a list of delinquent taxes filed
pursuant to this chapter. The failure to receive such notice or process
as herein provided shall not affect the validity of any action or
proceeding brought pursuant to this chapter.
d. An owner who files an owner's registration card may also designate
thereon the full name and post office address of a mortgagee, lienor or
other person to receive bills and notices. Where such designation is
made, the commissioner of finance shall not mail any bills and notices
to the owner but shall mail all bills and notices to the owner's
designee.
Section 11-417
§ 11-417 In rem cards; mailing notices to other interested persons. a.
The commissioner of finance shall, in addition to the file maintained by
him or her pursuant to section 11-416 of this chapter, maintain a file
of in rem cards submitted by any person having an interest in real
property who is not entitled to have tax bills mailed to him or her by
the commissioner of finance, including mortgagees, lienors,
encumbrancers and owners who have filed owner's registration cards
designating someone else to receive bills and notices. Each such in rem
card shall be signed by the person filing such card or a duly authorized
representative, shall contain a description of the premises by reference
to the section, block and lot numbers on the tax map and shall state the
date on which said card was filed, the full name and post office address
of the person filing said card and the nature of the interest said
person has in said premises.
b. The commissioner of finance shall mail a notice of foreclosure and
any other process required by this chapter to each person who has filed
an in rem card whenever the parcels to which such cards refer are
included in a list of delinquent taxes filed pursuant to this chapter.
However, failure to receive such notice or process shall not affect the
validity of any proceeding brought pursuant to this chapter.
Section 11-418
§ 11-418 Writ of assistance. The city, after acquiring title to
premises under and pursuant to the terms and provisions of this chapter,
shall be entitled to a writ of assistance, with the same force and
effect as if the city had acquired the property by virtue of a mortgage
foreclosure.
Section 11-419
§ 11-419 Consolidation of actions. Actions or proceedings pending in
the courts, or otherwise, to cancel a sale of a tax lien on lands a lien
upon which is being foreclosed by action under this chapter, shall be
terminated upon the institution of a foreclosure action pursuant to this
chapter, and the rights and remedies of the parties in interest to such
pending actions or proceedings shall be determined by the court in such
foreclosure action.
Section 11-420
§ 11-420 Lands held for public use; right of sale. Whenever the city
shall become vested with the title to lands by virtue of a foreclosure
proceeding brought pursuant to the provisions of this chapter, such
lands shall, unless actually used for other than municipal purposes, be
deemed to be held by the city for a public use but for a period of not
more than three years from the date of the final judgment. The city is
hereby authorized to sell and convey such lands in the manner provided
by law for the sale and conveyance of other real property held and owned
by the city and not otherwise.
Section 11-421
§ 11-421 Certificate of sale as evidence. The transfer of tax lien or
any other written instrument representing a tax lien shall be
presumptive evidence in all courts in all proceedings under this chapter
by and against the purchaser and his or her representatives, heirs and
assigns, of the truth of the statements therein, of the title of the
purchaser to the property therein described, and of the regularity and
validity of all proceedings had in reference to the taxes, assessments
or other legal charges for the nonpayment of which the tax lien was sold
and the sale thereof. After two years from the issuance of such
certificate or other written instrument, no evidence shall be admissible
in any court in a proceeding under this chapter to rebut such
presumption unless the holder thereof shall have procured such transfer
of tax lien or such other written instrument by fraud or had previous
knowledge that it was fraudulently made or procured.
Section 11-422
§ 11-422 Deed in lieu of foreclosure. The city may when authorized by
resolution of the board of estimate and in lieu of prosecuting an action
to foreclose a tax lien on any parcel pursuant to this chapter accept a
conveyance of the interest of any person having any right, title,
interest, claim, lien or equity of redemption in or to such parcel.
Section 11-423
§ 11-423 Sales and foreclosures of tax liens. Notwithstanding any of
the provisions of this chapter the city may continue to sell tax liens,
transfer the same to purchasers and become the purchaser at such sales
of tax liens in the manner provided by this title.
Section 11-424
§ 11-424 Application to the city for release of property acquired by
in rem tax foreclosure. a. (1) The city's interest in property acquired
by in rem tax foreclosure may be released pursuant to this section on
the application of any party who had an interest in said property as
either owner, mortgagee, lienor or encumbrancer at the time of the
city's acquisition thereof where such application is made at any time up
to two years from the date on which the deed by which the city acquired
title to said property was recorded.
(2) Notwithstanding any inconsistent provision of paragraph one of
this subdivision to the contrary, the city's interest in property
acquired by in rem tax foreclosure may be released pursuant to this
section upon application of any party who had an interest in said
property as either owner, mortgagee, lienor or encumbrancer at the time
of the city's acquisition thereof where such application is made more
than two years after the date on which the deed by which the city
acquired title to said property was recorded provided such application
is authorized by the council as hereinafter provided. An application for
such release and the documents required by subdivision c in support
thereof shall be filed with the department of citywide administrative
services in the manner provided in subdivision b of this section. The
department of citywide administrative services shall give the council
written notice of the receipt of each such filing. After review and
approval of the application by the corporation counsel as to form and
eligibility of the applicant, the department of citywide administrative
services shall send a copy of such application to the in rem foreclosure
release board and to the council. Upon receipt of such application, the
in rem foreclosure release board shall take no further action on such
application unless the council adopts a resolution within one hundred
twenty days following the first stated meeting of the council after
receipt of such application authorizing the board to consider such
application. If the council fails to adopt a resolution within such
one-hundred-twenty-day period, the council shall be deemed to have
denied its authorization for the board to consider such application. A
resolution of the council pursuant to this paragraph shall describe the
property for which release is sought by borough, tax map, block and lot
number and shall specify that release of the city's interest in such
property is subject to the approval of the in rem foreclosure release
board and to all the conditions and restrictions set forth in this
section.
b. 1. Any such application shall be made in writing to the
commissioner of citywide administrative services and shall be verified.
It shall contain the name and address of the applicant and shall state
the date on which and the in rem action by which the city acquired title
to the property sought to be released. It shall also contain a statement
specifying the nature of the applicant's interest in the property and a
full description of the instrument from which the applicant's interest
derives including the date of execution, the date and place of the
recording or entry of said instrument and the parties thereto. In the
event the applicant's interest arises by reason of the death of a prior
owner, mortgagee, lienor or encumbrancer, then the application shall
also state the applicant's relationship to said decedent and shall
include whatever additional information may be necessary to prove the
applicant's right to make such application.
2. A fee of two hundred seventy-five dollars shall be paid on the
submission of any such application which is subject to the provisions of
subdivision f of this section, except that the fee for any such
application for the release of property improved by a one or two-family
dwelling shall be one hundred dollars.
3. A fee of five hundred fifty dollars shall be paid on the submission
of any such application which is subject to the provisions of
subdivision g of this section, except that the fee for any such
application for the release of property improved by a one or two-family
dwelling shall be one hundred dollars.
4. A fee of two hundred seventy-five dollars shall be paid on the
submission of any such application which is subject to the provisions of
subdivision h of this section within four months from the date on which
the deed by which the city acquired title to the subject property was
recorded, and a fee of five hundred and fifty dollars shall be paid on
the submission of any such application which is subject to the
provisions of such subdivision not within four months from such date;
except that the fee for any such application which is subject to the
provisions of such subdivision for the release of property improved by a
one or two-family dwelling shall be one hundred dollars.
5. The fees payable pursuant to paragraphs two, three and four of this
subdivision shall not be refundable.
6. In addition to the fees specified in paragraphs two, three and four
of this subdivision, there shall be paid on the submission of any
application which is subject to this section an amount at least equal to
the lesser of nine hundred dollars or the sum specified in paragraph one
of subdivision d of this section, which amount shall not be refundable,
but shall be applied in reduction of the sum specified in paragraph one
of subdivision d of this section; provided, however, that if a release
requires the authorization of the in rem foreclosure release board, and
such authorization is not given, such additional amount shall be
refunded to the applicant.
c. Each application shall be supported by the certified search of the
city register or by an official letter, certificate or certified search
of any title insurance or abstract company, organized and doing business
under the laws of this state. Such supporting instruments shall recite
the recording data both as to the deed by which the city acquired title
to the parcel sought to be released and the instrument from which the
applicant's interest derives. In the event the applicant's interest does
not appear of record but is derived by the death of an owner, mortgagee,
lienor or encumbrancer of record, then the application shall also be
supported by the affidavit of the applicant or other person having
information thereof, or by the duly written certificate or certification
of the county clerk or the clerk of any surrogate's or other court of
record, or by any other instrument or document required by the
corporation counsel to substantiate the applicant's right to file such
application in compliance with the provisions of this section.
d. The city's interest shall be released only after payment, as to
each parcel to be released, of the following sums of money:
1. The principal amount due on all unpaid taxes, assessments, water
charges and sewer rents appearing on the list of delinquent taxes and
accruing thereafter together with interest at the rate or rates provided
by law.
2. Five percent of the amount paid pursuant to the preceding paragraph
but not exceeding one thousand dollars for each parcel.
3. Any deficiency which may result to the city after all payments made
by it for the repair, maintenance, and operation of the lands, real
estate or real property shall have been charged or debited in the
appropriate accounts of the city and all rents, license fees and other
moneys collected by the city as a result of its operation of the said
lands, real estate or real property shall have been credited in such
accounts. Any contract for repair, maintenance, management or operation
made by the city on which it shall be liable, although payment thereon
shall not have been made, shall be deemed a charge or debit to such
accounts as though payment had been made. The amounts paid and collected
by the city as shown in its accounts and the necessity for making the
several payments and contracts to be charged as herein provided shall be
conclusive upon the applicant. Where a deficiency under this subdivision
shall be created or increased by the failure of the city to collect
rents, license fees or other moneys to which the city may have been
entitled, the right to collect or to bring action for the same shall be
assigned, transferred and set over to the applicant by an instrument in
writing.
4. Any and all costs and disbursements which shall have been awarded
to the city or to which it may have become entitled by operation of law
or which it may have paid or become liable for payment in connection
with any litigation between it and the applicant or any person having an
estate or interest in the lands, real estate or real property to be
released resulting directly or indirectly from the foreclosure by action
in rem of the delinquent taxes affecting said lands, real estate or real
property.
5. A reasonable monthly fee to be determined by the city, through the
department of citywide administrative services, for management services
and operations of the lands, real estate or real property by the city
prior to the release of said lands, real estate or property.
6. The city, through the department of citywide administrative
services, shall also require as additional consideration for such
release, the payment of all arrears on mortgages held by the city and
all liens accruing to it by operation of law including but not limited
to relocation and emergency repair liens.
e. The corporation counsel shall effect the release of the city's
interest in property acquired by in rem tax foreclosure, as provided for
in this section, by preparing and causing to be entered an order
discontinuing the in rem tax forclosure action as to said property,
cancelling the notice of pendency of such action as to said property and
vacating and setting aside the in rem judgment of foreclosure and the
deed executed and recorded pursuant to such judgment of foreclosure as
to said property. The entry of such order shall restore all parties,
including owners, mortgagees and any and all lienors, receivers and
administrators and encumbrancers, to the status they held at the time
the city acquired title to said property, as if the in rem tax
foreclosure had never taken place, and shall render said property liable
for all taxes, deficiencies, management fees and liens which shall
accrue subsequent to those paid in order to obtain the release provided
for in this section, or which were, for whatever reason, omitted from
the payment made to obtain said release.
f. If an application pursuant to this section, and the documents
required by subdivision c of this section in support thereof, are filed
within four months after the date of the city's acquisition of the
subject property, said application shall be granted providing the
corporation counsel approves the application as to form, timeliness and
eligibility of the applicant and providing the applicant has paid all
amounts required to be paid by subdivision d of this section within
thirty days of the date on which a letter requesting applicant to make
such payment is mailed or delivered to the applicant. The city shall not
sell or assign any property acquired by in rem tax foreclosure within
four months of said acquisition but this provision shall not prevent the
city from authorizing condemnation of such property or vesting title
thereto in a condemnation proceeding during said four month period. In
the event an application pursuant to this section is filed within four
months of the city's acquisition by in rem tax foreclosure and title to
the subject property vests in condemnation before the city's interest
therein has been released by the vacate order provided for herein, the
applicant shall be entitled to the condemnation award for such property
without the entry of such vacate order, providing the corporation
counsel has approved the application as aforesaid and providing that the
amounts specified in subdivision d of this section, if not previously
paid, are deducted from said condemnation award, with taxes apportioned
to the date of the condemnation title vesting.
g. If an application for a release of the city's interest in property
acquired by in rem tax foreclosure, and the documents required by
subdivision c of this section in support thereof, have been filed within
the time allowed in paragraph one of subdivision a of this section, but
more than four months after the date of the city's acquisition or if an
application for such release has been authorized by a resolution of the
council pursuant to paragraph two of subdivision a of this section and
such application and the documents required by subdivision c of this
section in support thereof have been filed, the in rem foreclosure
release board may, in its discretion, authorize the release of the
city's interest in said property pursuant to this section, provided that
the application has been approved by the corporation counsel as to form,
timeliness and eligibility of the applicant and provided that the city
has not sold or otherwise disposed of said property and provided,
further, that said property has not been condemned or assigned to any
agency of the city and is not the subject of contemplated use for any
capital or urban renewal project of the city. The corporation counsel
shall effect such discretionary release only where the applicant, after
the board's authorization of the release, has paid all the amounts
required to be paid by subdivision d of this section within thirty days
of the date on which a letter requesting the applicant to make such
payment is mailed or delivered to the applicant. The in rem foreclosure
release board may also, in its discretion, authorize a release of the
city's interest in such property, pursuant to the above provisions,
whenever an application for such release, approved as to form,
timeliness and eligibility by the corporation counsel, has been filed at
any time during the period allowed in subdivision a of this section in
which the applicant has requested an installment agreement of the
commissioner of citywide administrative services for the payment of the
amounts required to be paid by subdivision d of this section provided
that said commissioner has approved such request. The commissioner of
citywide administrative services shall not approve any such request
unless the applicant shall have given notice by certified mail to each
tenant located on the parcel, of the request and shall have given such
commissioner an affidavit stating that such notice has been provided,
within thirty days after the request. Any false statement in such
affidavit shall not in any way affect the validity of the agreement, be
grounds for its cancellation or in any way affect the release of the
city's interest in the parcel. Such agreement shall require, in addition
to full payment of the amounts due under paragraphs two, three, four,
five and six of subdivision d of this section, a first installment of
fifty percent of the amount due under paragraph one of said subdivision
d with the balance of said amount to be paid in four equal quarterly
installments together with all current taxes, assessments or other legal
charges that accrue during such period; provided, however, that: (i)
whenever a request for an installment agreement is made of the
commissioner of citywide administrative services by a company organized
pursuant to article XI of the private housing finance law with the
consent and approval of the department of housing preservation and
development or for a parcel which is an owner-occupied residential
building of not more than five residential units, the commissioner of
citywide administrative services may, as to that portion of the amounts
due under paragraph one of subdivision d of this section which became
due prior to the acquisition by the article XI company of its interest
in the property and as to the amount due under paragraph one of
subdivision d of this section in the case of such an owner-occupied
building, approve a reduction of such first installment to an amount not
less than ten percent of the amount due under paragraph one of
subdivision d of this section and an increase in the number of the
following equal quarterly installments to a number which shall be equal
to three times the number of unpaid quarters of real estate taxes or the
equivalent thereof but which shall in no event exceed forty-eight, and
(ii) notwithstanding the preceding clause, whenever an installment
agreement is requested on or after the date on which this clause takes
effect with respect to a parcel that, immediately prior to the city's
acquisition thereof by in rem tax foreclosure, was owned by a company
organized pursuant to article XI of the state private housing finance
law with the consent and approval of the department of housing
preservation and development, or with respect to a parcel that is a
residential building containing not more than five residential units, a
residential condominium unit or a residential building held in a
cooperative form of ownership, the commissioner of general services may,
as to the amount due under paragraph one of subdivision d of this
section, approve an installment agreement containing the terms relating
to the required percentage payment for the first installment and the
required number of subsequent quarterly installments, that would be
applicable to such parcel under paragraph two (but without regard to any
reference therein to paragraph three) of subdivision i of section 11-409
of this chapter. For purposes of calculating the number of such
following equal quarterly installments, unpaid real estate taxes or the
equivalent which are, on and after July first, nineteen hundred
eighty-two, due and payable on an other than quarterly basis shall be
deemed to be payable on a quarterly basis. Where the in rem foreclosure
release board denies an application requesting an installment agreement
the board shall authorize a release of the city's interest, provided
that the applicant thereafter pays all the amounts required to be paid
by subdivision d of this section within thirty days of the date on which
a letter requesting such payment is mailed or delivered to the applicant
only when said application and the documents required by subdivision c
of this section in support thereof were filed within thirty days of the
date of the city's acquisition of the property sought to be released.
Where the in rem foreclosure release board denies an application
requesting an installment agreement which was filed more than thirty
days after the date of the city's acquisition, the board may, in its
discretion, authorize a release of the city's interest, provided that
the applicant thereafter pays all the amounts required to be paid by
subdivision d of this section within thirty days of the date on which a
letter requesting such payment is mailed or delivered to the applicant.
Where the in rem foreclosure release board approves an application
requesting an installment agreement, the order releasing the city's
interest shall provide that in the event of any default as to the
payment of either quarterly installments or current taxes, assessments
or other legal charges during the term of such agreement, as set forth
in the board's resolution, all payments made under said agreement shall
be forfeited and the city shall be entitled to reacquire the property so
released. The corporation counsel shall effect such reacquisition by
causing to be entered as to such property a supplemental judgment of
foreclosure in the in rem action by which said property was originally
acquired immediately on notification by the commissioner of finance of
such default.
h. An owner of property entitled to an exemption under any of the
provisions of article four of the real property tax law during all or
part of the period covered by the tax items appearing on a list of
delinquent taxes may apply for a release of the city's interest in such
exempt property under the provisions of this section during the periods
of time set forth herein and for an additional period up to ten years
from the date of the city's acquisition of said property by in rem
foreclosure. The application of such owner shall contain, in addition to
the statements, searches and proofs required by this section, a
statement that an exemption under the real property tax law is being
claimed. Such application shall also state either that it is accompanied
by the written certificate of the comptroller setting forth the precise
period during which said property, while owned by such applicant, and
during the period after the city's acquisition up to the date of the
certificate if said property was still being used for an exempt purpose
after said acquisition, was entitled to an exemption and the exact
nature and extent of such exemption or that an application for such
written certificate has been filed with the comptroller. On issuing such
written certificate, the comptroller shall cancel those tax items which
have accrued during the period covered by the certificate to the extent
the applicant is entitled to an exemption as set forth in the
certificate. Where an application by an exempt owner is filed more than
four months after the date of the city's acquisition of the subject
property, a release of the city's interest may be issued only at the
discretion of the in rem foreclosure release board and subject to all
the restrictions set forth in the preceding subdivision. A release to an
exempt applicant shall be effected only after said applicant has paid
all the amounts required to be paid by subdivision d of this section,
except for those tax items which have been cancelled, in whole or in
part, pursuant to the comptroller's certificate, within thirty days of
the date on which a letter requesting payment is mailed or delivered to
the applicant.
i. The corporation counsel shall also effect the release of the city's
interest in property acquired by in rem foreclosure, as provided for in
this action, whenever the commissioner of finance shall accept as to any
parcel so acquired, the payment provided for in paragraph two of
subdivision a of section 11-413 of this chapter. Said commissioner may
accept such payment at any time within four months of the date of the
city's acquisition and may further, subject to the approval of the in
rem foreclosure release board, accept such payment at any time more than
four months after the date of the city's acquisition but less than two
years from the date on which the city's deed was recorded providing said
property has not been sold or otherwise disposed of nor condemned or
assigned to any agency of the city and is not the subject of
contemplated use of any capital or urban renewal project of the city.
Section 11-424.1
§ 11-424.1 In rem foreclosure release board. There shall be an in rem
foreclosure release board consisting of the mayor, the speaker of the
city council, the affected borough president, the corporation counsel
and the commissioner of finance. For the purposes of this section, the
affected borough president shall be the president of the borough in
which a property proposed for release pursuant to this section is
located. Members of the board may, by written authority filed with the
board and with the city clerk, appoint delegates to act on their behalf
as members of the board. The board shall have the power, acting by
resolution, to authorize the release of the city's interest in property
acquired by in rem tax foreclosure in accordance with sections 11-412.1
and 11-424 of the code based upon a determination, in its discretion,
that such release would be in the best interests of the city. The board
shall act after a meeting at which the public has been provided an
opportunity to comment on the proposed action. A resolution of the board
authorizing a release of the city's interest in any property shall be
adopted only upon the affirmative vote of not less than a majority of
all the members of the board. The board may consider any information it
deems relevant to a determination. The board shall not be required to
state the reasons for its determination.
Section 11-425
§ 11-425 Agreements for payment of delinquent taxes and charges in
installments. a. During the period beginning on May ninth, nineteen
hundred seventy-seven and ending on June thirtieth, nineteen hundred
seventy-seven, the commissioner of finance or, when so specified
hereinafter, the commissioner of general services, shall be authorized
and empowered to make and execute agreements in the circumstances and
subject to the terms, conditions and limitations set forth in the
following subdivisions of this section; provided, however, that if the
commissioner of finance or, where applicable, the commissioner of
general services determines in his or her sole discretion that good
cause exists, he or she may make and execute such agreements during an
additional period ending not later than July thirty-first, nineteen
hundred seventy-seven.
b. (1) Whenever it shall appear that a tax lien on a parcel has been
due and unpaid for a period of at least six months from the date on
which the tax, assessment or other legal charge represented thereby
became a lien, the commissioner of finance may enter into an agreement
with the owner of such parcel or other person claiming to have an
interest therein providing for the payment of such delinquent taxes,
assessments or other legal charges and interest and penalties in
installments, the first of which shall be equal to at least fifteen
percent of such arrears and shall be payable upon the execution of such
agreement. Each remaining installment shall be equal to at least an
amount produced by dividing the balance of such arrears by a factor
determined by multiplying the number of quarters of such arrears by two
hundred per cent. In no event, however, shall the factor referred to in
the preceding sentence be in excess of thirty-two. Each such remaining
installment shall be payable quarterly on the first days of July,
October, January and April.
(2) If an agreement authorized by the preceding paragraph is executed
prior to the time the commissioner of finance files in the office of the
appropriate county clerk a list of delinquent taxes covering the borough
or portion of the borough in which the subject parcel is located, such
parcel shall be excluded from such list of delinquent taxes, provided,
at the time such list is filed, there is no default in the agreement and
all current taxes, assessments or other legal charges have been paid as
they became due or within the period of grace provided by law. In the
event of any default in the agreement or any failure to make timely
payment of any current item, the parcel shall, if then delinquent for
the applicable period specified in section 11-404 of this chapter, be
eligible for inclusion in any list of delinquent taxes thereafter filed.
(3) If an in rem foreclosure action has been commenced against any
parcel prior to May ninth, nineteen hundred seventy-seven, the
commissioner of finance may, notwithstanding the provisions of paragraph
three of subdivision a of section 11-413 of this chapter, enter into an
agreement authorized and described in the foregoing provisions of this
section with respect to such parcel. However, if such an agreement is
entered into subsequent to the last date for redemption specified in
subdivision a of section 11-407 of this chapter, there shall be paid to
the commissioner of finance at the time said agreement is executed an
amount equal to the penalty which would have been payable under
subdivision c of section 11-407 of this chapter had the person executing
the agreement made a late redemption payment. Such amount shall be in
addition to any installment payments required to be made under the
agreement and shall not be credited against any such installment
payments. Any parcel which is the subject of an agreement made pursuant
to this paragraph may, prior to final judgment, be withdrawn from the
action, provided there has been no default in the agreement, and
provided further that all current taxes, assessments or other legal
charges are paid when they become due or within the period of grace
provided by law. Such withdrawal shall be effected by the commissioner
of finance in the manner provided in section 11-413 of this chapter.
(4) Any person who, prior to May ninth, nineteen hundred
seventy-seven, has made, executed and filed with the commissioner of
finance an agreement pursuant to the provisions of paragraph three of
subdivision a of section 11-413 of this chapter, shall be permitted to
make application to the commissioner of finance for the purpose of
having such agreement cancelled and a new agreement executed as
hereinabove provided.
If an agreement executed prior to May ninth, nineteen hundred
seventy-seven is not cancelled as herein provided, any installments due
and payable under such agreement on or after July first, nineteen
hundred seventy-seven shall be subject to interest at the rate specified
in paragraph five of this subdivision, but only if, as of July first,
nineteen hundred seventy-seven, there is no default in the agreement and
all current taxes, assessments or other legal charges have been paid
within the time allowed by law. Such rate of interest shall be
calculated in the manner and shall be subject to all the conditions
provided in said paragraph five.
(5) When an agreement has been entered into pursuant to any of the
preceding paragraphs of this subdivision, the commissioner of finance
shall, notwithstanding the rates of interest prescribed in section
11-224, 11-312 or 11-313 of this title, charge, collect and receive
interest on the arrears due and payable under such agreement, to be
calculated at the rate of seven percent per annum from July first,
nineteen hundred seventy-seven to the date of payment of each
installment. Any interest accrued or accruing prior to July first,
nineteen hundred seventy-seven shall not be affected by the provisions
of this paragraph, but shall be charged, collected and received in the
manner and at the rates specified in section 11-224, 11-312 or 11-313 of
this title. The seven percent rate of interest specified in this
paragraph shall be applicable only if (i) there is no default in the
agreement entered into as provided in this section, and (ii) all current
taxes, assessments or other legal charges are paid as they become due or
within the period of grace provided by law. In the event of any default
or failure to make timely payment of any current item, the seven percent
rate of interest specified in this paragraph shall thereupon cease to be
applicable and the commissioner of finance shall thereafter charge,
collect and receive interest in the manner and at the rates otherwise
specified in this title.
(6) In addition to the terms and conditions required by the preceding
paragraphs of this subdivision to be included in agreements authorized
by this section, the commissioner of finance may in his or her
discretion include in such agreements such additional terms and
conditions, not inconsistent with this section, as he or she determines
to be necessary in order to properly carry out the provisions of this
section. The commissioner may also adopt such rules and regulations as
may be necessary to carry out the provisions of this section.
c. (1) If, pursuant to the provisions of section 11-424 of this
chapter, an application for the release of property acquired by the city
through in rem tax foreclosure is made within the four-month period
specified in subdivision f of section 11-424 of this chapter, and
provided such application is made during the period specified in
subdivision a of this section, the following paragraphs of this
subdivision shall, at the election of the applicant, apply with respect
to such application and the release sought thereby.
(2) At the time of filing the application for release, an applicant
who elects to have the provisions of this subdivision apply to him or
her, shall pay to the city the amounts specified in paragraphs two,
three and four of subdivision d of section 11-424 of this chapter, for
this purpose, the amount specified in paragraph two thereof shall be
deemed to be the amount which would have been required to be paid
thereunder had this section not been in effect. Concurrent with the
making of such payment, the applicant shall enter into an agreement with
the commissioner of general services providing for the payment of all
current taxes, assessments or other legal charges on the property as
they become due or within the grace period provided by law, and, in
addition, providing for the payment of the amount specified in paragraph
one of subdivision d of section 11-424 of this chapter in installments,
the first of which shall be equal to at least twenty-five percent of
such amount and shall be payable upon the execution of such agreement.
The balance of such amount shall be payable in twelve equal quarterly
installments, each of which shall be paid quarterly on the first days of
July, October, January and April.
(3) Pending approval by the corporation counsel of an application for
release as to form, timeliness and eligibility of the applicant, all
payments made pursuant to the preceding paragraph shall be held in
escrow; in the event the corporation counsel disapproves the
application, such payments shall be returned to the applicant, and the
agreement executed by the applicant shall thereupon be cancelled.
(4) In the case of any agreement made and executed pursuant to
paragraph two hereof, interest on any installment due and payable
thereunder shall, notwithstanding the rates of interest prescribed in
section 11-224, 11-312 or 11-313 of this title, be charged, collected
and received at the rate of seven percent per annum from July first,
nineteen hundred seventy-seven to the date of payment of each
installment. Any interest accrued or accruing prior to July first,
nineteen hundred seventy-seven shall not be affected by the provisions
of this paragraph, but shall be charged, collected and received in the
manner and at the rates specified in section 11-224, 11-312 or 11-313 of
this title. The seven percent rate of interest specified in this
paragraph shall be applicable only if (i) there is no default in the
agreement entered into as provided in this subdivision, and (ii) all
current taxes, assessments or other legal charges are paid as they
become due or within the period of grace provided by law.
(5) No release for which application has been made pursuant to this
subdivision shall be granted until the final payment under the agreement
herein provided is received by the city. Upon receipt of such final
payment by the city the corporation counsel shall effect the release in
the manner provided in section 11-424 of this chapter. In the event of
any default in an agreement executed as provided in this subdivision or
any failure to pay current taxes, assessments or other legal charges as
they become due or within the grace period provided by law, such
agreement shall thereupon become void, the release process shall be
terminated, and all payments theretofore made shall be forfeited to the
city.
(6) In addition to the terms and conditions required by the preceding
paragraphs of this subdivision to be included in agreements authorized
thereby, the commissioner of general services may in his or her
discretion include in such agreements such additional terms and
conditions, not inconsistent with this subdivision, as the commissioner
determines to be necessary in order to properly carry out the provisions
hereof. The commissioner of general services may also adopt such rules
and regulations as may be necessary to carry out the provisions of this
subdivision.
Section 11-426
§ 11-426 Agreements for payment of delinquent taxes and charges in
installments. a. During the period beginning on December second,
nineteen hundred seventy-seven and ending on March thirty-first,
nineteen hundred seventy-eight, the commissioner of finance, or, when so
specified hereinafter, the commissioner of general services, shall be
authorized and empowered to make and execute agreements in the
circumstances and subject to the terms, conditions and limitations set
forth in the following subdivisions of this section.
b. (1) Whenever it shall appear that a tax lien on a parcel has been
due and unpaid for a period of at least six months from the date on
which the tax, assessment or other legal charge represented thereby
became a lien, the commissioner of finance may enter into an agreement
with the owner of such parcel or other person claiming to have an
interest therein providing for the payment of such delinquent taxes,
assessments or other legal charges and interest and penalties in
installments, the first of which shall be equal to at least fifteen
percent of such arrears and shall be payable upon the execution of such
agreement. Each remaining installment shall be equal to at least an
amount produced by dividing the balance of such arrears by a factor
determined by multiplying the number of quarters of such arrears by two
hundred percent. In no event, however, shall the factor referred to in
the preceding sentence be in excess of thirty-two. Each such remaining
installment shall be payable quarterly on the first days of July,
October, January and April.
(2) If an agreement authorized by the preceding paragraph is executed
prior to the time the commissioner of finance files in the office of the
appropriate county clerk a list of delinquent taxes covering the borough
or portion of the borough in which the subject parcel is located, such
parcel shall be excluded from such list of delinquent taxes, provided,
at the time such list is filed, there is no default in the agreement and
all current taxes, assessments or other legal charges have been paid as
they became due or within the period of grace provided by law. In the
event of any default in the agreement or any failure to make timely
payment of any current item, the parcel shall, if then delinquent for
the applicable period specified in section 11-404 of this chapter, be
eligible for inclusion in any list of delinquent taxes thereafter filed.
(3) If an in rem foreclosure action has been commenced against any
parcel prior to December second, nineteen hundred seventy-seven, the
commissioner of finance may, notwithstanding the provisions of paragraph
three of subdivision a of section 11-413 of this chapter, enter into an
agreement authorized and described in the foregoing provisions of this
section with respect to such parcel. However, if such an agreement is
entered into subsequent to the last date for redemption specified in
subdivision a of section 11-407 of this chapter, there shall be paid to
the commissioner of finance at the time said agreement is executed an
amount equal to the penalty which would have been payable under
subdivision c of section 11-407 of this chapter had the person executing
the agreement made a late redemption payment. Such amount shall be in
addition to any installment payments required to be made under the
agreement and shall not be credited against any such installment
payments. Any parcel which is the subject of an agreement made pursuant
to this paragraph may, prior to final judgment, be withdrawn from the
action, provided there has been no default in the agreement, and
provided further that all current taxes, assessments or other legal
charges are paid when they become due or within the period of grace
provided by law. Such withdrawal shall be effected by the commissioner
of finance in the manner provided in section 11-413 of this chapter.
(4) Any person who, prior to December second, nineteen hundred
seventy-seven, has made, executed and filed with the commissioner of
finance an agreement pursuant to the provisions of paragraph three of
subdivision a of section 11-413 of this chapter, shall be permitted to
make application to the commissioner of finance for the purpose of
having such agreement cancelled and a new agreement executed as
hereinabove provided.
If an agreement executed prior to December second, nineteen hundred
seventy-seven is not cancelled as herein provided, any installments due
and payable under such agreement on or after April first, nineteen
hundred seventy-eight shall be subject to interest at the rate specified
in paragraph five of this subdivision, but only if, as of April first,
nineteen hundred seventy-eight, there is no default in the agreement and
all current taxes, assessments or other legal charges have been paid
within the time allowed by law. Such rate of interest shall be
calculated in the manner and shall be subject to all the conditions
provided in said paragraph five.
(5) When an agreement has been entered into pursuant to any of the
preceding paragraphs of this subdivision, the commissioner of finance
shall, notwithstanding the rates of interest prescribed in section
11-224, 11-312 or 11-313 of this title, charge, collect and receive
interest on the arrears due and payable under such agreement to be
calculated at the rate of seven percent per annum from April first,
nineteen hundred seventy-eight to the date of payment of each
installment. Any interest accrued or accruing prior to April first,
nineteen hundred seventy-eight shall not be affected by the provisions
of this paragraph, but shall be charged, collected and received in the
manner and at the rates specified in section 11-224, 11-312 or 11-313 of
this title. The seven percent rate of interest specified in this
paragraph shall be applicable only if (i) there is no default in the
agreement entered into as provided in this section, and (ii) all current
taxes, assessments or other legal charges are paid as they become due or
within the period of grace provided by law. In the event of any default
or failure to make timely payment of any current item, the seven percent
rate of interest specified in this paragraph shall thereupon cease to be
applicable and the commissioner of finance shall thereafter charge,
collect and receive interest in the manner and at the rates otherwise
specified in this title.
(6) In addition to the terms and conditions required by the preceding
paragraphs of this subdivision to be included in agreements authorized
by this section, the commissioner of finance may, in his or her
discretion, include in such agreements such additional terms and
conditions, not inconsistent with this section, as such commissioner
determines to be necessary in order to properly carry out the provisions
of this section. The commissioner of finance may also adopt such rules
and regulations as may be necessary to carry out the provisions of this
section.
c. (1) If, pursuant to the provisions of section 11-424 of this
chapter, an application for the release of property acquired by the city
through in rem tax foreclosure is made within the four-month period
specified in subdivision f of section 11-424 of this chapter, and
provided such application is made during the period specified in
subdivision a of this section, the following paragraphs of this
subdivision shall, at the election of the applicant, apply with respect
to such application and the release sought thereby.
(2) At the time of filing the application for release, an applicant
who elects to have the provisions of this subdivision apply to him or
her, shall pay to the city the amounts specified in paragraphs two,
three and four of subdivision d of section 11-424 of this chapter, for
this purpose, the amount specified in paragraph two thereof shall be
deemed to be the amount which would have been required to be paid
thereunder had this section not been in effect. Concurrent with the
making of such payment, the applicant shall enter into an agreement with
the commissioner of general services providing for the payment of all
current taxes, assessments or other legal charges on the property as
they become due or within the grace period provided by law, and, in
addition, providing for the payment of the amount specified in paragraph
one of subdivision d of section 11-424 of this chapter in installments,
the first of which shall be equal to at least twenty-five percent of
such amount and shall be payable upon the execution of such agreement.
The balance of such amount shall be payable in twelve equal quarterly
installments, each of which shall be paid quarterly on the first days of
July, October, January and April.
(3) Pending approval by the corporation counsel of an application for
release as to form, timeliness and eligibility of the applicant, all
payments made pursuant to the preceding paragraph shall be held in
escrow; in the event the corporation counsel disapproves the
application, such payments shall be returned to the applicant, and the
agreement executed by him or her shall thereupon be cancelled.
(4) In the case of any agreement made and executed pursuant to
paragraph two thereof, interest on any installment due and payable
thereunder shall, notwithstanding the rates of interest prescribed in
section 11-224, 11-312 or 11-313 of this title, be charged, collected
and received at the rate of seven percent per annum from April first,
nineteen hundred seventy-eight to the date of payment of each
installment. Any interest accrued or accruing prior to April first,
nineteen hundred seventy-eight shall not be affected by the provisions
of this paragraph, but shall be charged, collected and received in the
manner and at the rates specified in section 11-224, 11-312 or 11-313 of
this title. The seven percent rate of interest specified in this
paragraph shall be applicable only if (i) there is no default in the
agreement entered into as provided in this subdivision, and (ii) all
current taxes, assessments or other legal charges are paid as they
become due or within the period of grace provided by law.
(5) No release for which application has been made pursuant to this
subdivision shall be granted until the final payment under the agreement
herein provided is received by the city. Upon receipt of such final
payment by the city the corporation counsel shall effect the release in
the manner provided in section 11-424 of this chapter. In the event of
any default in an agreement executed as provided in this subdivision or
any failure to pay current taxes, assessments or other legal charges as
they become due or within the grace period provided by law, such
agreement shall thereupon become void, the release process shall be
terminated, and all payments theretofore made shall be forfeited to the
city.
(6) In addition to the terms and conditions required by the preceding
paragraphs of this subdivision to be included in agreements authorized
thereby, the commissioner of general services may, in his or her
discretion, include in such agreements such additional terms and
conditions, not inconsistent with this subdivision, as the commissioner
determines to be necessary in order to properly carry out the provisions
hereof. The commissioner of general services may also adopt such rules
and regulations as may be necessary to carry out the provisions of this
subdivision.
Section 11-427
§ 11-427 Agreements for payment of delinquent taxes and charges in
installments. a. During the period beginning September first, nineteen
hundred seventy-eight and ending December thirty-first, nineteen hundred
seventy-eight, the commissioner of finance, or, when so specified
hereinafter, the commissioner of general services, shall be authorized
and empowered to make and execute agreements in the circumstances and
subject to the terms, conditions and limitations set forth in the
following subdivisions of this section; provided, however, that if the
commissioner of finance or, where applicable, the commissioner of
general services, determines in his or her sole discretion that good
cause exists, he or she may make and execute such agreements during an
additional period ending not later than January thirty-first, nineteen
hundred seventy-nine.
b. (1) Whenever it shall appear that a tax lien on a parcel has been
due and unpaid for a period of at least six months from the date on
which the tax, assessment or other legal charge represented thereby
became a lien, the commissioner of finance may enter into an agreement
with the owner of such parcel or other person claiming to have an
interest therein providing for the payment of such delinquent taxes,
assessments or other legal charges and interest and penalties in
installments, the first of which shall be equal to at least fifteen
percent of such arrears and shall be payable upon the execution of such
agreement. Each remaining installment shall be equal to at least an
amount produced by dividing the balance of such arrears by a factor
determined by multiplying the number of quarters of such arrears by two.
In no event, however, shall the factor referred to in the preceding
sentence be in excess of thirty-two. Each such remaining installment
shall be payable quarterly on the first days of July, October, January
and April.
(2) If an agreement authorized by the preceding paragraph is executed
prior to the time the commissioner of finance files in the office of the
appropriate county clerk a list of delinquent taxes covering the borough
or portion of the borough in which the subject parcel is located, such
parcel shall be excluded from such list of delinquent taxes, provided,
at the time such list is filed, there is no default in the agreement and
all current taxes, assessments or other legal charges were paid as they
became due or within the period of grace provided by law. In the event
of any default in the agreement or any failure to make timely payment of
any current item, the parcel shall, if then delinquent for the
applicable period specified in section 11-404 of this chapter, be
eligible for inclusion in any list of delinquent taxes thereafter filed.
(3) If an in rem foreclosure action has been commenced against any
parcel prior to September first, nineteen hundred seventy-eight, the
commissioner of finance may, notwithstanding the provisions of paragraph
three of subdivision a of section 11-413 of this chapter, enter into an
agreement authorized and described in the foregoing provisions of this
section with respect to such parcel. However, if such an agreement is
entered into subsequent to the last date for redemption specified in
subdivision a of section 11-407 of this chapter, there shall be paid to
the commissioner of finance at the time said agreement is executed an
amount equal to the penalty which would have been payable under
subdivision c of section 11-407 of this chapter had the person executing
the agreement made a late redemption payment. Such amount shall be in
addition to any installment payments required to be made under the
agreement and shall not be credited against any such installment
payments. Any parcel which is the subject of an agreement made pursuant
to this paragraph may, prior to final judgment, be withdrawn from the
action, provided there has been no default in the agreement, and
provided further that all current taxes, assessments or other legal
charges are paid when they become due or within the period of grace
provided by law. Such withdrawal shall be effected by the commissioner
of finance in the manner provided in section 11-413 of this chapter.
(4) Any person who, prior to September first, nineteen hundred
seventy-eight, has made, executed and filed with the commissioner of
finance an agreement pursuant to the provisions of paragraph three of
subdivision a of section 11-413 of this chapter, shall be permitted to
make application to the commissioner of finance for the purpose of
having such agreement cancelled and a new agreement executed as
hereinabove provided.
If an agreement executed prior to September first, nineteen hundred
seventy-eight is not cancelled as herein provided, any installments due
and payable under such agreement on or after February first, nineteen
hundred seventy-nine shall be subject to interest at the rate specified
in paragraph six of this subdivision, but only if, as of February first,
nineteen hundred seventy-nine, there is no default in the agreement and
all current taxes, assessments or other legal charges have been paid
within the time allowed by law. Such rate of interest shall be
calculated in the manner and shall be subject to all the conditions
provided in said paragraph six.
(5) Notwithstanding the preceding paragraphs of this subdivision, no
owner of, or other person claiming to have an interest in, any parcel
shall be eligible to enter into an agreement authorized by such
paragraphs where such parcel was included in an in rem foreclosure
action but was severed therefrom pursuant to the judgment of foreclosure
in such action because an answer was still pending as to such parcel.
The commissioner of finance may, however, on notice to the corporation
counsel, enter into an agreement with such owner or other interested
person providing for the payment of all current taxes, assessments or
other legal charges on the parcel as they become due or within the grace
period provided by law, and, in addition, providing for payment of the
amount of all delinquent taxes, assessments or other legal charges and
interest due as of the date the agreement is executed in installments,
the first of which shall be equal to at least twenty-five percent of
such amount and shall be payable upon the execution of such agreement,
and the balance of which shall be payable in twelve equal quarterly
installments, each of which shall be paid on the first days of July,
October, January and April. In addition, there shall be paid to the
commissioner of finance at the time such agreement is executed a penalty
equal to five percent of the amount of the delinquent taxes, assessments
or other legal charges and interest due as of the date of the agreement,
which penalty shall not exceed five hundred dollars. Any installments
due and payable on or after February first, nineteen hundred
seventy-nine under an agreement described in this paragraph shall be
subject to interest at the rate specified in paragraph six of this
subdivision, but only if, as of February first, nineteen hundred
seventy-nine, there is no default in the agreement and all current
taxes, assessments or other legal charges have been paid within the time
allowed by law. Such rate of interest shall be calculated in the manner
and shall be subject to all the conditions provided in said paragraph
six.
Upon receipt of the final payment due under an agreement executed
pursuant to this paragraph, the commissioner of finance shall
discontinue the in rem action pending with respect to the parcel which
is the subject of such agreement, and shall cancel the lis pendens
pertaining thereto by issuing a certificate of withdrawal pursuant to
section 11-413 of this chapter. In the event of any default in such
agreement or any failure to pay current taxes, assessments or other
legal charges as they become due or within the grace period provided by
law, such agreement and the answer which was the basis for the severance
of the subject parcel from the in rem action shall both be deemed null
and void and the city shall be entitled to acquire title to such parcel
by entry of an appropriate supplemental judgment of foreclosure in such
in rem action without further notice to the answering party.
(6) When an agreement has been entered into pursuant to any of the
preceding paragraphs of this subdivision, the commissioner of finance
shall, notwithstanding the rates of interest prescribed in section
11-224, 11-312 or 11-313 of this title, charge, collect and receive
interest on the arrears due and payable under such agreement, to be
calculated at the rate of seven percent per annum from February first,
nineteen hundred seventy-nine to the date of payment of each
installment. Any interest accrued or accruing prior to February first,
nineteen hundred seventy-nine shall not be affected by the provisions of
this paragraph, but shall be charged, collected and received in the
manner and at the rates specified in section 11-224, 11-312 or 11-313 of
this title. The seven percent rate of interest specified in this
paragraph shall be applicable only if (i) there is no default in the
agreement entered into as provided in this section, and (ii) all current
taxes, assessments or other legal charges are paid as they become due or
within the period of grace provided by law. In the event of any default
or failure to make timely payment of any current item, the seven percent
rate of interest specified in this paragraph shall thereupon cease to be
applicable and the commissioner of finance shall thereafter charge,
collect and receive interest in the manner and at the rates otherwise
specified in this chapter.
(7) In addition to the terms and conditions required by the preceding
paragraphs of this subdivision to be included in agreements authorized
by this section, the commissioner of finance may, in his or her
discretion, include in such agreements such additional terms and
conditions, not inconsistent with this section, as the commissioner
determines to be necessary in order to properly carry out the provisions
of this section. The commissioner may also adopt such rules and
regulations as may be necessary to carry out the provisions of this
section.
c. (1) If, pursuant to the provisions of section 11-424 of this
chapter, an application for the release of property acquired by the city
through in rem tax foreclosure has been filed within the four-month
period specified in subdivision f of that section, and the sixty-day
period for payment referred to in that subdivision has not expired prior
to the commencement of the period specified in subdivision a of this
section, the following paragraphs of this subdivision shall, at the
election of the applicant, apply with respect to such application and
the release sought thereby, provided notice of such election is given to
the commissioner of general services during the period specified in
subdivision a of this section, but in no event later than the last day
of the sixty-day period referred to in subdivision f of section 11-424
of this chapter.
(2) An applicant who elects to have the provisions of this subdivision
apply to him or her, shall, at the time such applicant notifies the
commissioner of general services of his or her election, pay to the city
the amounts specified in paragraphs two, three and four of subdivision d
of section 11-424 of this chapter; for this purpose, the amount
specified in paragraph two thereof shall be deemed to be the amount
which would have been required to be paid thereunder had this section
not been in effect. Concurrent with the making of such payment, the
applicant shall enter into an agreement with the commissioner of general
services providing for the payment of all current taxes, assessments or
other legal charges on the property as they become due or within the
grace period provided by law, and, in addition, providing for the
payment of the amount specified in paragraph one of subdivision d of
section 11-424 of this chapter in installments, the first of which shall
be equal to at least twenty-five percent of such amount and shall be
payable upon the execution of such agreement. The balance of such amount
shall be payable in twelve equal quarterly installments, each of which
shall be paid quarterly on the first days of July, October, January and
April.
(3) Pending approval by the corporation counsel of an application for
release as to form, timeliness and eligibility of the applicant, all
payments made pursuant to the preceding paragraph shall be held in
escrow; in the event the corporation counsel disapproves the
application, such payments shall be returned to the applicant, and the
agreement executed by him or her shall thereupon be cancelled.
(4) In the case of any agreement made and executed pursuant to
paragraph two of this subdivision, interest on any installment due and
payable thereunder shall, notwithstanding the rates of interest
prescribed in section 11-224, 11-312 or 11-313 of this title, be
charged, collected and received at the rate of seven percent per annum
from February first, nineteen hundred seventy-nine to the date of
payment of each installment. Any interest accrued or accruing prior to
February first, nineteen hundred seventy-nine shall not be affected by
the provisions of this paragraph, but shall be charged, collected and
received in the manner and at the rates specified in section 11-224,
11-312 or 11-313 of this title. The seven percent rate of interest
specified in this paragraph shall be applicable only if (i) there is no
default in the agreement entered into as provided in this subdivision,
and (ii) all current taxes, assessments or other legal charges are paid
as they become due or within the period of grace provided by law.
(5) No release for which application has been made pursuant to
subdivision f of section 11-424 of this chapter shall be granted until
the final payment under the agreement herein provided is received by the
city. Upon receipt of such final payment by the city the corporation
counsel shall effect the release in the manner provided in section
11-424 of this chapter. In the event of any default in an agreement
executed as provided in this subdivision or any failure to pay current
taxes, assessments or other legal charges as they become due or within
the grace period provided by law, such agreement shall thereupon become
void, the release process shall be terminated and all payments
theretofore made shall be forfeited to the city.
(6) In addition to the terms and conditions required by the preceding
paragraphs of this subdivision to be included in agreements authorized
thereby, the commissioner of general services may, in his or her
discretion, include in such agreements such additional terms and
conditions, not inconsistent with this subdivision, as the commissioner
determines to be necessary in order to properly carry out the provisions
hereof. The commissioner of general services may also adopt such rules
and regulations as may be necessary to carry out the provisions of this
subdivision.
Section 11-428
§ 11-428 Disposition of proceeds of sales of properties acquired by
city through tax enforcement foreclosure proceedings. The proceeds of
the sale of real property acquired through tax enforcement foreclosure
proceedings, or by deed in lieu thereof, including subsequent receipts
in diminution of purchase money mortgages accepted at the time of sale,
shall be applied as follows:
a. The amount of the unpaid real estate taxes accrued against such
property from the first day of January or the first day of July,
whichever first immediately precedes the date on which title vested in
the city to the date of conveyance of title by the city, without
interest or penalties thereon, shall be credited to the tax deficiency
account.
b. The balance, if any, remaining after deduction of the amount
specified in paragraph a hereof, shall be paid into the funds
hereinafter specified in the following order:
1. A sum equal to the amount of the unpaid assessments for local
improvements accrued against such property at the date of commencement
of the foreclosure proceeding and up to the date of conveyance of title
by the city, without interest or penalties thereon, shall be paid into
the appropriate assessment funds.
2. A sum equal to the amount of unpaid sewer rents, including interest
and penalties thereon, accrued against such property at the date of
commencement of the foreclosure proceedings and up to the date of
conveyance of title by the city shall be paid into the sewer fund.
3. The amount of the brokerage fee and other expenses expended by the
city in connection with such sale shall be paid into the fund or code to
which such fee was charged.
4. The balance of such proceeds, if any, and the interest on any
purchase money mortgage accepted by the city at the time of such sale
shall be paid into the general fund. In the event that any part of such
balance is represented by bonds and mortgages, such bonds and mortgages
may be deposited in the tax appropriation and general fund stabilization
reserve fund and a sum equal to the amount of the cash represented by
such bonds and mortgages shall in such event be transferred from the tax
appropriation and general fund stabilization reserve fund to the general
fund.