What's happening
This bill allows the city of Lockport to add unpaid housing code violation penalties to property tax bills, with protections for owner-occupied homes and tenant assistance.
Why it matters
Targets Chronic, Serious Violations. The penalties must be at least 5% of the property’s assessed value and have remained unpaid for a full year after all appeals, ensuring only significant, persistent code violations trigger tax levy action.
Due Process and Owner Notification. Before penalties are added to taxes, violations must be court-adjudicated, recorded, and owners (plus other interested parties) receive formal notice, including detailed information about foreclosure risks and how to pay or contest the charges.
Protections for Vulnerable Residents. Owner-occupied homes are exempt, and the city must create a program to assist tenants in affected properties, including housing counseling or relocation support, minimizing displacement risks for renters.
Opportunities to Cure and Pay. Owners can avoid foreclosure by curing violations or paying the debt before auction; if violations are fixed before redemption expires, foreclosure is halted and remaining fines are treated as a regular debt, not a tax lien.
Surplus Funds and Fairness. If a property is sold at auction for unpaid code fines, any surplus proceeds (after covering the city’s costs) are returned to the former owner, proportionally if both taxes and fines were owed, preventing windfalls to the city and protecting owner equity.
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Who cares
Headline styles
Add Fines to Property Taxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Print number 4634a
- Amend and recommit to local government
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Add Code Fines to Taxes
In Assembly Committee · Real Property Taxation · Sponsor Michael J. Norris
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 4634--A A. 6736--A
2019-2020 Regular Sessions
SENATE - ASSEMBLY
March 18, 2019
IN SENATE -- Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. NORRIS -- read once and referred to the Committee on Real Property Taxation -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property tax law, in relation to authorizing the city of Lockport to add unpaid housing code violation penalties, costs and fines to such city's annual tax levy
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property tax law is amended by adding a new section 905-a to read as follows:
§ 905-a. Collection of unpaid housing code violation penalties; city of Lockport; levy. 1. Authorization. In addition to and not in limitation of any power otherwise granted by law, the city of Lockport is hereby authorized to collect any unpaid housing, building and fire code violation penalties, costs and fines through placement by the city treasurer on the city's annual tax levy in accordance with the provisions of this section.
2. Eligibility. In order to be eligible for placement on the city of Lockport's annual tax levy such unpaid code violation penalties, costs and fines shall have been adjudicated and imposed through a judgment in a court of competent jurisdiction on an owner of real property within the city and recorded by the county clerk, as certified by the city's corporation counsel and have remained unpaid for one year after the final adjudication and exhaustion of all appeals relating to the imposi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10671-03-9
S. 4634--A 2 A. 6736--A
tion of the fines for a code violation preceding the placement on the city's tax levy.
3. Minimum amount owed. To qualify for placement on the tax levy the amount owed for unpaid code violations must be at least five percent of the amount of the tax assessed value of the property.
4. Levy. Such code violation penalty, cost or fine as set forth in a copy of the judgment certified by the corporation counsel shall be set down in the annual tax levy under the heading uncollected fines and penalties and in accordance with this section shall be levied, enforced and collected in the same manner, by the same proceedings, at the same time, under the same penalties and having the same lien upon the property assessed as the tax levy of such municipality and as a part thereof.
5. Notice. The city of Lockport shall notify all owners or known interested parties of record of the placement of the code violations on the city tax levy as uncollected fines and penalties within thirty days of placement, pursuant to section three hundred eight of the civil practice law and rules. The notice shall include the date or dates of such violations, the description of the violations, the amount owed, a statement detailing the foreclosure process that will occur if the violations remain unpaid, the process to claim any surplus funds and the contact information for the city's office in charge of receiving payments.
6. Tax year. Any unpaid code violations shall be placed on the tax roll the city of Lockport is currently in and shall not be placed on a list, roll or levy of delinquent taxes.
7. Owner occupied. Notwithstanding any other applicable provisions of law, nothing in this section shall be applied to a residential dwelling that is owner-occupied or is the primary residence of a homeowner.
8. Tenants. Prior to the placement of any property with unpaid code violations on the tax levy, the city of Lockport shall develop a program to assist tenants residing in a dwelling at risk for tax foreclosure due to unpaid code violations. Such program shall include housing counseling assistance or other support in relocating the tenants to suitable housing prior to the tax foreclosure.
9. Payment plan. Nothing in this section shall preclude an owner or landlord from entering into a payment plan with the city of Lockport for past amounts due for code violations.
10. Curing code violations. (a) If all of the violations for which the penalties, fees and costs have been assessed are cured, removed or corrected prior to the expiration of the period for redemption pursuant to section eleven hundred ten of this chapter, the property shall be removed from the levy and auction and the balance of the amount owed shall be placed as a lien on the property pursuant to applicable laws for debt collection and an action for foreclosure of the property shall not be maintained for the amount owed.
(b) The determination of whether or not the code violations have been cured shall be made by the city of Lockport's enforcing officer in charge of ensuring compliance with applicable housing, building, and fire codes such as a code enforcement officer. An appeal of this determination may be made to the city's zoning board of appeals or other local administrative body as provided for in local law. The final determination made by the administrative body shall be reviewable pursuant to article seventy-eight of the civil practice law and rules.
(c) This section shall not be applicable to any cause of action brought for money due based on the curing of code violations under any form for receivership or a mechanic's lien.
S. 4634--A 3 A. 6736--A
11. Payment prior to auction. (a) If the balance owed for code violations placed on the tax levy is paid prior to the expiration of the period for redemption pursuant to section eleven hundred ten of this chapter and there is no balance due for unpaid real property taxes, the property may not be auctioned, and the property shall be removed from the tax levy.
(b) The owner shall have the right to pay the full balance prior to the expiration of the period for redemption pursuant to section eleven hundred ten of this chapter in order to redeem the property.
12. Surplus. Any surplus funds remaining after the sale of a property at a tax foreclosure for unpaid code violations shall be returned to the former owner of the property in a manner as provided under local law. This provision shall not apply to a sale of a property at a tax foreclosure due to unpaid taxes. If a property has both unpaid taxes and unpaid code violations on the same tax levy and is auctioned at a tax foreclosure the amount of the surplus funds returned to the former owner shall be proportionate to the amount of unpaid code violations owed in the total amount of debt owed to the city of Lockport. For the purpose of this section, "surplus funds" shall mean the balance of money received after auction of a property at a tax foreclosure sale minus the amount owed for code violations and the costs and attorneys' fees incurred in the collection of the fees by the city.
13. Balance due. If after an auction a balance is due for code violations, the city of Lockport may proceed with any action against the former owner pursuant to applicable laws.
14. Exclusions. The provisions of this section shall not apply to any municipality that sells their tax liens in a tax sale.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to authorizing the city of Lockport to add unpaid housing code violation penalties, costs and fines to such city's annual tax levy
Purpose or general idea of bill
To allow the City of Lockport to deem finally adjudicated fines imposed upon real property for building code violations as delinquent taxes.
Summary of provisions
Section 1: Authorizes the City of Lockport to collect any unpaid housing code violation penalties, costs and fines through placement by the city treasurer on the city's annual tax levy in accordance with the applica- ble provisions of the city's tax and assessment act. It provides that in order for such unpaid housing code violation penalties, costs and fines to be eligible for placement on the city's annual tax levy, it shall have been adjudicated and imposed through a judgment in a court of competent jurisdiction on an owner of real property within the city, as certified by the city's corporation counsel, and have remained unpaid for one year preceding the placement on the city's tax levy. Addi- tionally, such housing code violation penalty, cost or fine, as set forth in a copy of the judgment certified by the corporation counsel, shall be set down in the annual tax levy under the heading uncollected fines and penalties and shall be levied, enforced and collected in the same manner, by the same proceedings, at the same time, under the same penalties and having the same lien upon the property assessed as the general city tax and as a part thereof.
Section 2 specifies that this legislation shall take effect immediately.
Justification
The purpose of this legislation is to hold property owners, other than owner-occupied property owners, that have been cited by the city of Lockport for housing code violations accountable. Unfortunately, some absentee landlords allow properties to deteriorate with little to no recourse, as municipalities often face difficulties in enforcing and collecting fines. These problem properties plague neighborhoods and communities in Lockport, negatively impacting quality of life and prop- erty values for nearby residents. By authorizing the City of Lockport to place unpaid fines on a property's annual tax levy, and potentially to be included as a tax lien on the property, property owners will be more likely to maintain their property in an acceptable condition.
Prior legislative history
2019 New Bill
Fiscal implications for state and local governments
None to the state. To be determined for the City of Lockport.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.