BILL NUMBER: S5168
SPONSOR: ROLISON
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to authorizing
the city of Newburgh to add unpaid housing code violation penalties,
costs and fines to such city's annual tax levy in accordance with appli-
cable law
 
PURPOSE OR GENERAL IDEA OF BILL:
To authorize the City of Newburgh, at their choosing, to add unpaid
building and fire code violation penalties, costs and fines toòthe
city's annual tax levy.
 
SUMMARY OF PROVISIONS:
Section 1 amends the Real Property Tax Law by adding a new section 903
which permits the City of Newburgh ("City") to collect any unpaid build-
ing and fire code violation penalties, costs and fines through placement
by the official authorized to administer the City's annual tax levy.
Subdivision 1: Authorization. Authorizes the City of Newburgh's director
of finance, treasurer, or other public official charged with the duties
of overseeing tax collections on the City's annual tax levy in accord-
ance with the provisions of this section.
Subdivision 2: Eligibility. To be eligible for placement on the City's
annual tax levy, unpaid code violation penalties, costs and fines shall
be adjudicated and imposed through a judgement in a court of competent
jurisdiction on an owner of real property within the City and recorded
by the county clerk and remain unpaid for one year after the final adju-
dication and exhaustion of all appeals relating to the imposition of
fines.
Subdivision 3: Minimum Amount Owed. To qualify the amount owed must be
at least five percent of the amount of the tax assessed value of that
property.
Subdivision 4: Levy. Such code violation penalty cost, or fine as set
forth in a copy of the judgement certified by the city's corporation
counsel to the director of finance, treasurer or other public official
charged with the duties of overseeing tax collections shall be set down
in the annual tax levy under the heading "uncollected fines and penal-
ties" 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.
Subdivision 5: Notice. The City shall notify all owners or known inter-
ested parties of record of the placement of the code violations on the
city tax levy as uncollected -fines and penalties within 30 days of
placement.
Subdivision 6: Tax year. Unpaid axle violations shall be placed on the
tax roll that the City is currently in and not on a list, roll or levy
of delinquent taxes.
Subdivision 7; Owner occupied. This section shall be applied to a resi-
dential dwelling that is owner-occupied or is the primary residence of a
homeowner.
Subdivision 8: Tenants. Prior to the placement of any property with
unpaid code violations on the tax levy, the city 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 counseling assist-
ance or other support in relocating the tenants to suitable housing
prior to the tax foreclosure.
Subdivision 9: Payment plan. Allows for an owner of landlord to enter
into a payment plan with the City for past amounts due for code
violations.
Subdivision 10: Curing code violations. If all of the violations for
which the penalties, fees and costs have been assessed, as determined by
the city code enforcing officer, and are cured, removed or corrected
prior to the expiration of the period for redemption and the penalties,
costs and fines are paid in full, the property shall be removed from the
levy.
Subdivision 11: Payment prior to auction. The owner shall have the right
to pay the full balance prior to the expiration of the period for
redemption pursuant to Section 1110 of the Real Property Tax Law.
Subdivision 12: Surplus. Any surplus funds after the sale of a property
at a tax foreclosure for unpaid code violations shallòbe returned to the
former owner of the property in a manner provided under local law.
Subdivision 13: Balance due. If after an auction, a balance is due for
code violations, the City may proceed with any action against the former
owner.
Subdivision 14: Exclusions. The provisions of this section shall not
apply to the City, if. the City sells its tax liens in a tax in a tax
lien sale.
Section 2: Sets forth the effective date.
 
JUSTIFICATION:
One of the keys to a high quality of life in any municipality is have
buildings that are kept up to code. This is especially true in the City
of Newburgh where approximately two-thirds of the residents live in
rental housing.
The City of Newburgh faces difficulties collecting unpaid housing code
violation penalties, costs, and fines. These unpaid violations are often
the result of absentee property owners and landlords who allow proper-
ties to deteriorate and decay. These deteriorated properties lower a
neighborhood's quality of life and surrounding property values.
These property owners will have an added incentive to pay their building
code violation penalties and fines since the municipality would now be
able to enforce the unpaid penalties and fines by levying them as they
would property taxes subjecting the property to auction and loss of
ownership if the penalties and fines are not paid.
 
PRIOR LEGISLATIVE HISTORY:
2023-24 - S6918A: Referred to Local Government
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
No costs for the State and local government. The City of Newburgh will
gain revenues from the enforcement of unpaid code violation penalties
and fine as a levy on the owners' property tax bills.
 
EFFECTIVE DATE:
This act shall take effect immediately.