Chapter 4 - TAX LIEN FORECLOSURE BY ACTION IN REM

Section 11-401

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

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

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

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

Section 11-403

  §  11-403  Jurisdiction.  The supreme court shall have jurisdiction of
actions authorized by this chapter.

Section 11-404

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.