2023 New York Laws › PVH - Private Housing Finance › Article 13 - Miscellaneous › 606 - Extension of the Time for Payment and Suspension of Payment of Real Estate Tax Liens.

§  606. Extension of the time for payment and suspension of payment of
real estate tax liens. 1. As used in this  section  the  term  abandoned
multiple  dwelling  shall  mean  a  class A or class B multiple dwelling
containing in the aggregate not less than three dwelling units, at least
eighty percent of the occupied dwelling units of which are  occupied  by
persons  or  families  of  low  income  as defined in subdivision ten of
section twelve of this chapter and which the  supervising  agency  shall
find has been abandoned by the owner or owners thereof. Any such finding
shall be based on one or more of the following conditions:
(a)  Failure  to  make any payments in respect of real estate taxes on
said multiple dwelling for twelve  months  or  more,  and  a  continuing
failure  to maintain essential services, or failure to remove violations
of the local housing maintenance code or other  statutes  applicable  to
multiple  dwellings,  where,  as  a  result  of  either such failure the
multiple dwelling has become dangerous to the life, health and safety of
its occupants; or
(b) Failure to make any payments in respect of real  estate  taxes  on
said  multiple dwelling for twelve months or more and failure to attempt
to collect rent from a majority of the tenants in  lawful  occupancy  of
dwelling  units  in  such  multiple  dwelling  for  a  period  of  three
consecutive months or more; or
(c) The entry of a judgment in favor of the petitioning tenants  in  a
proceeding  instituted  pursuant to article seven-A of the real property
actions and proceedings law, and the  failure  by  the  owner  or  other
respondent to secure the removal of the administrator appointed pursuant
to   such   judgment  within  ninety  days  after  his  appointment  and
qualification; or
(d) The entry or filing of an order appointing a receiver pursuant  to
section three hundred nine of the multiple dwelling law or any other law
authorizing  the appointment of a municipality or any agency or official
thereof as receiver of a multiple dwelling, and the failure by the owner
or other party entitled thereto to secure the removal  or  discharge  of
such receiver within ninety days thereafter.
2.  Whenever  a  housing  project  (i)  of  a housing development fund
company organized pursuant to the provisions of article eleven  of  this
chapter,  (ii)  of  a  company  organized  pursuant to the provisions of
article two, four or five of this chapter, (iii) of a company  or  owner
aided  by  article  three,  eight,  twelve,  fourteen or fifteen of this
chapter, or (iv) is to be financed by a mortgage made or insured by  the
federal  government  or  any  agency  or  instrumentality  thereof  or a
mortgage loan entered into in  conjunction  with  a  housing  assistance
payments  contract  in  connection  with new construction or substantial
rehabilitation pursuant to section eight of the  United  States  Housing
Act  of  1937,  as amended, is premised upon the acquisition, ownership,
rehabilitation and management of an abandoned multiple dwelling, as said
term is defined in subdivision one  of  this  section,  the  supervising
agency  may,  subject  to  the  requirements of subdivision four of this
section, enter into an agreement with such  housing  company  or  owner,
which  agreement  shall  provide  for  one or more of the following with
respect to accrued real estate tax liens and municipal  charges  arising
by  operation  of  law  upon  the  properties  upon which such abandoned
multiple dwelling is located:
(a) The extension of the time for  the  payment  of  all  or  part  of
accrued real estate tax liens and municipal charges arising by operation
of law by spreading the payment thereof over a period or periods of time
to  commence  presently  or  at some future time, but in no event beyond
forty years from the date of such agreement;
(b) The elimination of interest and penalties on all or  part  of  the
unpaid  real estate tax liens and municipal charges arising by operation
of law;
(c)  The  suspension  of  the payment of all or a part of accrued real
estate tax liens and municipal charges arising by operation of law for a
period not to exceed forty years from the date of such agreement;
(d) The elimination of all or part of accrued real  estate  tax  liens
and  municipal  charges  arising  by  operation  of law provided that in
consideration of such  elimination  the  municipality  may  require  the
housing  company to convey to it by deed an indefeasibly vested interest
in the real property of the project, the value of  which  shall  be  set
forth in such agreement but shall in no event be less than the amount of
real  estate tax liens and municipal charges arising by operation of law
eliminated, to take effect as provided therein but not later than  forty
years from the date thereof.
3.  No  such  agreement  for the extension or suspension of payment or
elimination of accrued real  estate  tax  liens  and  municipal  charges
arising  by operation of law shall be entered into until the supervising
agency shall first have made written findings supported by  satisfactory
evidence that:
(a)  The  project  is  an  abandoned  multiple dwelling, as defined in
subdivision one of this section, and the owner  who  so  abandoned  such
dwelling  has  no  direct  or  indirect interest or participation in the
project; and
(b) The housing company has available or has a reasonable  expectation
of obtaining from public or private sources, or both, adequate financing
to acquire and rehabilitate the property; and
(c)  The  housing company possesses or has given satisfactory evidence
of its ability and intention  to  employ  adequate  competent  personnel
capable  of  rehabilitating, supervising the rehabilitation and managing
and  operating  the  property  in  accordance  with  the  standards  and
conditions prescribed by this section and by the supervising agency; and
(d)  The  proposed  rehabilitation  will effectuate the removal of all
housing and other violations of record against the property as  well  as
all  incipient  violations  disclosed  by inspections of the supervising
agency and other agencies of the municipality charged  with  enforcement
of   applicable   statutes   and  ordinances  prescribing  standards  of
construction and housing maintenance and will result in the  removal  of
all unsafe and unsanitary conditions; and
(e)  The  proposed  rehabilitation  will not require the removal of or
relocation  of  any  residential  tenants  in  occupancy,   other   than
temporarily,  during  the period of construction, in which case suitable
arrangements have been made for such temporary relocation; and
(f) In order for the housing company to acquire the  property  and  to
rehabilitate,  operate and maintain the same as provided herein, accrued
real estate tax liens and municipal charges arising by operation of  law
affecting  the  property  must  be extended, suspended or eliminated, in
whole or in part, as provided in subdivision two of this section,  which
finding  shall  set  forth  the  exact amount of accrued real estate tax
liens and municipal charges arising by operation of law  and  set  forth
full  details  as  to  the extension, suspension and elimination thereof
required in order for the rents or carrying  charges  to  be  fixed  and
established  by the supervising agency or as otherwise provided pursuant
to the provisions of article two,  three,  four,  five,  eight,  eleven,
twelve,  fourteen  or  fifteen  of this chapter, or in connection with a
mortgage made or insured by the federal  government  or  any  agency  or
instrumentality  thereof  or a mortgage loan entered into in conjunction
with a housing assistance  payments  contract  in  connection  with  new

construction  or substantial rehabilitation pursuant to section eight of
the United States Housing Act of 1937,  as  amended,  whichever  may  be
applicable,  and  shall further contain the calculations and assumptions
upon  which  such  finding  is  based and shall state that the projected
rents or carrying charges are as  high  as  the  present  occupants  can
reasonably  afford,  and  as can reasonably be charged and collected for
comparable housing accommodations  in  the  immediate  vicinity  of  the
abandoned multiple dwelling; and
(g)  The  abandoned  multiple dwelling is located in a deteriorated or
deteriorating   neighborhood   or   one   imminently   threatened   with
deterioration,  and that unless the project is carried out, the property
will become unsafe and unfit for continued human habitation in the  near
future, and that by reason of its present and probable future condition,
the property is exerting or will in the near future, exert a deleterious
influence  upon  the  block  in which it is located and upon the blocks,
neighborhood and area immediately surrounding and adjacent thereto.
4. The agreement, with respect to a housing development fund  company,
shall  contain  all  of  the provisions required by section five hundred
seventy-six of this chapter, and with regard  to  any  housing  company,
including  such  housing  development  fund  company, shall contain such
other provisions as may be approved by the local legislative body.
5. (a) An agreement authorized by subdivisions two and  four  of  this
section  shall  be  submitted  by  the  supervising  agency to the local
legislative body of the municipality in  which  the  project  is  to  be
located,  which  body  may determine to extend, suspend and/or eliminate
the payment of all or any part of the accrued real estate tax liens  and
municipal  charges  arising  by operation of law on the real property in
such project, but in no  event  beyond  the  limitations  set  forth  in
subdivision   two   of   this  section.  The  extension,  suspension  or
elimination of real estate tax liens and municipal  charges  arising  by
operation  of  law  may  include  all accrued local and municipal taxes,
including assessments, water and  sewer  rents  and  sewer  charges  and
special  ad valorem levies and all emergency repair levies but shall not
include any taxes or municipal charges accruing in respect of any parcel
for any period commencing after a date fixed by  the  local  legislative
body,  such  date being not later than the projected date of substantial
completion of the  rehabilitation  of  the  building  situated  on  such
parcel.
(b)   Where   the  municipality  acts  on  behalf  of  another  taxing
jurisdiction in assessing real property for the purpose of taxation,  or
in  levying  taxes  therefor, the determination of the local legislative
body in granting such extension, suspension or  elimination  shall  have
the  effect  of  extending,  suspending  or eliminating the accrued real
estate tax liens against the real property in such project to the extent
and subject to the provisions of paragraph (a) of this subdivision.