Authorizes municipalities to impose a tax lien upon foreclosed real property for unpaid building code and zoning violation fines and expenses

BILL NUMBER:S2370

Title of bill

An act to amend the general municipal law, in relation to authorizing a municipality to impose tax liens for unpaid building code violations and emergency repairs at foreclosed real property

Purpose or general idea of bill

To ensure that those financial institutions or their successor property management organizations that manage foreclosed upon residential or commercial properties adequately maintain such properties until they are sold to a new purchaser. Under current law, it is difficult and time consuming for a municipality to collect municipal house code violation fines and municipal costs incurred to correct such violations. This bill should assist a municipality to collect such fines and encourage managers of foreclosed upon properties to adequately maintain such properties because they will have notice that such fines will ultimately be collected.

Summary of specific provisions

Section 1. Adds a new section 85-b to the General Municipal Law to provide for a more formalized process by which a municipality can file a lien against properties in which certain unpaid municipal building code or zoning code violations are due. Such lien may only be filed against real properties that are subject to a foreclosure action pursuant to article 13 of the Real Property Actions and proceedings Law. In addition to filing a lien for collection of unpaid municipal code violations, such liens may include municipal expenses to correct any such violation. Before the lien provisions contained in this new section can be exercised, the municipality must adopt a local law or ordinance to establish a lien filing procedure. The municipality must file such lien in the county clerk's office, at which time, such lien shall constitute a real property tax lien.

Justification

The purpose of this bill is to enhance the ability of a municipality to collect certain housing code violation fines on properties that have been foreclosed upon or are subject to a foreclosure action. If enacted, the provisions of this bill should give adequate notice to banks that manage foreclosed properties, both residential and commercial, that such municipal fines will be collected. Hence, such financial institutions should be encouraged to adequately maintain foreclosed properties to avoid the assessment and collection of such fines.

Prior legislative history

2012 - S. 4752 - Referred to Local Governments

Fiscal implications

This bill will give municipalities additional powers to collect delinquent municipal housing code violation fines.

Effective date

January 1st next succeeding the date upon which it becomes law.