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A04554 Summary:

BILL NOA04554
 
SAME ASSAME AS S02719
 
SPONSORMorinello
 
COSPNSRMiller, McDonough, Manktelow, DeStefano
 
MLTSPNSR
 
Add §905-a, RPT L
 
Authorizes the city of Niagara Falls to add unpaid housing code violation penalties, costs and fines to such city's annual tax levy.
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A04554 Actions:

BILL NOA04554
 
02/04/2025referred to real property taxation
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A04554 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4554
 
SPONSOR: Morinello
  TITLE OF BILL: An act to amend the real property tax law, in relation to authorizing the city of Niagara Falls to add unpaid housing code violation penal- ties, costs and fines to such city's annual tax levy   PURPOSE OR GENERAL IDEA OF BILL: To allow the City of Niagara Falls to deem finally adjudicated. fines imposed upon real property for building code violations as delinquent taxes.   SUMMARY OF SPECIFIC PROVISIONS: Section 1: Authorizes the City of Niagara Falls to collect any unpaid housing code violation penalties, costs and fines through placement by the city controller on the city's annual tax levy in accordance with the applicable provisions of the city's tax and assessment act. It provides that 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 to the city controller and have remained unpaid for one year preceding the placement on the city's tax levy. Additionally, such housing code violation penalty, cost or fine, as set forth in a copy of the judgment certified by the corpo- ration counsel and sent to the city controller, 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 Niagara Falls for housing code violations accountable. Unfortunately, some absentee landlords allow properties to deteriorate with little-tono recourse, as municipalities often face difficulties in enforcing and collecting fines. These problem properties plague neighborhoods and communities in Niagara Falls, negatively impacting quality of life and property values for nearby residents. By authorizing the City of Niagara Falls to place unpaid fines on a property's annual tax levy, and poten- tially to be included as a tax lien on the property, property owners will be more likely to maintain their property in an acceptable condi- tion.   PRIOR LEGISLATIVE HISTORY: A.2327 of 2023-24 - held in real property tax A.4519 of 2021-22 A.6345 of 2019-20   FISCAL IMPLICATIONS: None to the state. To be determined for the City of Niagara Falls.   EFFECTIVE DATE: This act shall take effect immediately.
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A04554 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4554
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 4, 2025
                                       ___________
 
        Introduced by M. of A. MORINELLO, MILLER, McDONOUGH, MANKTELOW, DeSTEFA-
          NO  --  read once and referred to the Committee on Real Property Taxa-
          tion
 
        AN ACT to amend the real property tax law, in  relation  to  authorizing
          the  city of Niagara Falls to add unpaid housing code violation penal-
          ties, costs and fines to such city's annual tax levy

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  real  property  tax  law  is amended by adding a new
     2  section 905-a to read as follows:
     3    § 905-a. Collection of unpaid housing code violation  penalties;  city
     4  of  Niagara  Falls;  levy. 1.   Authorization. In addition to and not in
     5  limitation of any power otherwise granted by law, the  city  of  Niagara
     6  Falls  is  hereby authorized to collect any unpaid housing, building and
     7  fire code violation penalties, costs and fines through placement by  the
     8  city  controller  on  the  city's annual tax levy in accordance with the
     9  provisions of this section.
    10    2. Eligibility. In order to be eligible for placement on the  city  of
    11  Niagara  Falls'  annual  tax  levy such unpaid code violation penalties,
    12  costs and fines shall have been adjudicated and imposed through a  judg-
    13  ment  in  a court of competent jurisdiction on an owner of real property
    14  within the city and recorded by the county clerk, as  certified  by  the
    15  city's  corporation  counsel  to  the  city controller and have remained
    16  unpaid for one year after the final adjudication and exhaustion  of  all
    17  appeals  relating  to  the  imposition of the fines for a code violation
    18  preceding the placement on the city's tax levy.
    19    3. Minimum amount owed. To qualify for placement on the tax  levy  the
    20  amount  owed for unpaid code violations must be at least five percent of
    21  the amount of the tax assessed value of the property.
    22    4. Levy. Such code violation penalty, cost or fine as set forth  in  a
    23  copy  of  the judgment certified by the corporation counsel to such city
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01212-01-5

        A. 4554                             2
 
     1  controller shall be set down in the annual tax levy  under  the  heading
     2  uncollected  fines  and  penalties  and  in accordance with this section
     3  shall be levied, enforced and collected in the same manner, by the  same
     4  proceedings,  at  the same time, under the same penalties and having the
     5  same lien upon the property assessed as the tax  levy  of  such  munici-
     6  pality and as a part thereof.
     7    5.  Notice. The city of Niagara Falls shall notify all owners or known
     8  interested parties of record of the placement of the code violations  on
     9  the  city tax levy as uncollected fines and penalties within thirty days
    10  of placement, pursuant to section three hundred eight of the civil prac-
    11  tice law and rules. The notice shall include the date or dates  of  such
    12  violations, the description of the violations, the amount owed, a state-
    13  ment detailing the foreclosure process that will occur if the violations
    14  remain  unpaid,  the  process to claim any surplus funds and the contact
    15  information for the city's office in charge of receiving payments.
    16    6. Tax year. Any unpaid code violations shall be  placed  on  the  tax
    17  roll  the  city of Niagara Falls is currently in and shall not be placed
    18  on a list, roll or levy of delinquent taxes.
    19    7. Owner occupied. Notwithstanding any other applicable provisions  of
    20  law,  nothing in this section shall be applied to a residential dwelling
    21  that is owner-occupied or is the primary residence of a homeowner.
    22    8. Tenants. Prior to the placement of any property  with  unpaid  code
    23  violations  on  the  tax levy, the city of Niagara Falls shall develop a
    24  program to assist tenants residing in a dwelling at risk for  tax  fore-
    25  closure  due to unpaid code violations. Such program shall include hous-
    26  ing counseling assistance or other support in relocating the tenants  to
    27  suitable housing prior to the tax foreclosure.
    28    9.  Payment  plan.  Nothing in this section shall preclude an owner or
    29  landlord from entering into a payment plan  with  the  city  of  Niagara
    30  Falls for past amounts due for code violations.
    31    10. Curing code violations. (a) If all of the violations for which the
    32  penalties,  fees  and  costs  have  been  assessed are cured, removed or
    33  corrected prior to the expiration of the period for redemption  pursuant
    34  to  section  eleven  hundred  ten of this chapter, the property shall be
    35  removed from the levy and auction and the balance  of  the  amount  owed
    36  shall  be  placed  as a lien on the property pursuant to applicable laws
    37  for debt collection and an action for foreclosure of the property  shall
    38  not be maintained for the amount owed.
    39    (b)  The determination of whether or not the code violations have been
    40  cured shall be made by the city of Niagara Falls' enforcing  officer  in
    41  charge  of  ensuring  compliance  with applicable housing, building, and
    42  fire codes such as a code enforcement officer. An appeal of this  deter-
    43  mination  may  be  made  to  the city's zoning board of appeals or other
    44  local administrative body as provided for in local law. The final deter-
    45  mination made by the administrative body shall be reviewable pursuant to
    46  article seventy-eight of the civil practice law and rules.
    47    (c) This section shall not  be  applicable  to  any  cause  of  action
    48  brought  for  money due based on the curing of code violations under any
    49  form for receivership or a mechanic's lien.
    50    11. Payment prior to  auction.  (a)  If  the  balance  owed  for  code
    51  violations placed on the tax levy is paid prior to the expiration of the
    52  period  for  redemption  pursuant  to section eleven hundred ten of this
    53  chapter and there is no balance due for unpaid real property taxes,  the
    54  property  may  not  be auctioned, and the property shall be removed from
    55  the tax levy.

        A. 4554                             3
 
     1    (b) The owner shall have the right to pay the full  balance  prior  to
     2  the  expiration  of the period for redemption pursuant to section eleven
     3  hundred ten of this chapter in order to redeem the property.
     4    12.  Surplus. Any surplus funds remaining after the sale of a property
     5  at a tax foreclosure for unpaid code violations shall be returned to the
     6  former owner of the property in a manner as provided  under  local  law.
     7  This provision shall not apply to a sale of a property at a tax foreclo-
     8  sure due to unpaid taxes. If a property has both unpaid taxes and unpaid
     9  code  violations on the same tax levy and is auctioned at a tax foreclo-
    10  sure the amount of the surplus funds returned to the former owner  shall
    11  be  proportionate  to  the  amount of unpaid code violations owed in the
    12  total amount of debt owed to the city of Niagara Falls.  For the purpose
    13  of this section,  "surplus  funds"  shall  mean  the  balance  of  money
    14  received after auction of a property at a tax foreclosure sale minus the
    15  amount  owed  for  code  violations  and  the  costs and attorneys' fees
    16  incurred in the collection of the fees by the city.
    17    13. Balance due. If after  an  auction  a  balance  is  due  for  code
    18  violations,  the  city  of  Niagara  Falls  may  proceed with any action
    19  against the former owner pursuant to applicable laws.
    20    14. Exclusions. The provisions of this section shall not apply to  any
    21  municipality that sells their tax liens in a tax sale.
    22    § 2. This act shall take effect immediately.
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