2023 New York Laws › NPC - Not-For-Profit Corporation › Article 16 - Land Banks › 1616 - Delinquent Property Tax Enforcement.

§ 1616. Delinquent property tax enforcement.
The  municipality may enter into a contract to sell some or all of the
delinquent tax liens held by it to a land bank, subject to the following
conditions:
(a) The consideration to be paid may be more or  less  than  the  face
amount of the tax liens sold.
(b) Property owners shall be given at least thirty days advance notice
of  such  sale in the same form and manner as is provided by subdivision
two of section eleven hundred ninety  of  the  real  property  tax  law.
Failure  to  provide  such  notice  or  the  failure of the addressee to
receive the same shall not in any way affect the validity of any sale of
a tax lien or tax liens  or  the  validity  of  the  taxes  or  interest
prescribed by law with respect thereto.
(c)  The  municipality  shall  set  the  terms  and  conditions of the
contract of sale.
(d) The land bank must thirty days prior to the  commencement  of  any
foreclosure  action  provide  to  the municipality a list of liens to be
foreclosed. The municipality may, at its  sole  option  and  discretion,
repurchase  a  lien or liens on the foreclosure list from the land bank.
The repurchase price shall be the amount of the lien or liens  plus  any
accrued interest and collection fees incurred by the land bank. The land
bank  shall provide the foreclosure list to the municipality, along with
the applicable repurchase price of each lien, by certified mail, and the
municipality shall have thirty days from receipt to notify the land bank
of its option to purchase one or more of the liens. If the  municipality
opts  to  purchase the lien, it shall provide payment within thirty days
of receipt of the repurchase  price  of  said  lien  or  liens.  If  the
municipality  shall fail to opt to repurchase the lien or liens the land
bank shall have the right to commence a foreclosure action immediately.
(e) The sale of a tax lien pursuant to this article shall not  operate
to  shorten  the  otherwise  applicable  redemption period or change the
otherwise applicable interest rate.
(f) Upon the expiration of the redemption period  prescribed  by  law,
the  purchaser  of  a delinquent tax lien, or its successors or assigns,
may foreclose the lien as in  an  action  to  foreclose  a  mortgage  as
provided  in section eleven hundred ninety-four of the real property tax
law. The procedure in such action shall be the procedure  prescribed  by
article  thirteen  of  the real property actions and proceedings law for
the foreclosure of mortgages. At any time following the commencement  of
an  action  to foreclose a lien, the amount required to redeem the lien,
or the amount received upon sale of a property, shall include reasonable
and  necessary  collection  costs,   attorneys'   fees,   legal   costs,
allowances, and disbursements.
(g)  The  provisions  of  title  five  of  article  eleven of the real
property tax law shall apply so far as is practicable to a contract  for
the sale of tax liens pursuant to this article.
(h)  If  the  court  orders  a  public sale pursuant to section eleven
hundred thirty-six of the real property tax law, and  the  purchaser  of
the  property  is the land bank, then the form, substance, and timing of
the land bank's payment of the sales price  may  be  according  to  such
agreement  as is mutually acceptable to the plaintiff and the land bank.
The obligation of the land bank  to  perform  in  accordance  with  such
agreement  shall  be  deemed to be in full satisfaction of the tax claim
which was the basis for the judgment.
(i) Notwithstanding any other provision of law to the contrary, in the
event that no municipality elects to tender  a  bid  at  a  public  sale
pursuant  to  the  provisions of section eleven hundred sixty-six of the
real property tax law or sale pursuant to the  provisions  of  a  county

charter,   city  charter,  administrative  code,  or  special  law  when
applicable under section eleven hundred four of the  real  property  tax
law,  the  land bank may tender a bid at such sale in an amount equal to
the  total amount of all municipal claims and liens which were the basis
for the judgment. In the event of such  tender  by  the  land  bank  the
property shall be deemed sold to the land bank regardless of any bids by
any  other  third  parties. The bid of the land bank shall be paid as to
its form, substance, and  timing  according  to  such  agreement  as  is
mutually  acceptable  to the plaintiff and the land bank. The obligation
of the land bank to perform in accordance with such agreement  shall  be
deemed  to  be in full satisfaction of the municipal claim which was the
basis for the judgment. The land bank, as purchaser at such public  sale
or  sale  pursuant  to the provisions of a county charter, city charter,
administrative code, or special law when applicable under section eleven
hundred four of the real  property  tax  law,  shall  take  and  forever
thereafter  have,  an  absolute  title  to  the  property sold, free and
discharged of all tax and municipal claims,  liens,  mortgages,  charges
and  estates  of  whatsoever  kind.  The  deed to the land bank shall be
executed, acknowledged and delivered within thirty  days  of  the  sale.
Alternatively,  the  land  bank can assign all rights resulting from the
land bank's successful  tender  for  the  property  to  the  foreclosing
governmental  unit, which would allow the property to be deeded directly
to  the  foreclosing  governmental  unit.  All  land  bank  acquisitions
pursuant  to  this  paragraph  shall comply with section sixteen hundred
eight of this article and all dispositions of property acquired pursuant
to this paragraph shall comply with section sixteen hundred nine of this
article.