N.Y. Private Housing Finance Law § 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.