This bill would expand the Department of Housing Preservation and Development’s Third Party Transfer program, which allows the City to foreclose and sell distressed residential buildings to pre-qualified third parties, to include buildings whose owners have incurred large amounts of unsatisfied building violations.
A Local Law to amend the administrative code of the city of New York, in relation to distressed buildings subject to foreclosure by action in rem
Be it enacted by the Council as follows:
Section 1.Subdivision 4 of section 11-401 of the administrative code of the city of New York, as amended by local law number 37 for the year 1996, is amended to read as follows:
4. "Distressed property." Any parcel of class one or class two real property that is subject to a tax lien or liens that result from an environmental control board judgment against the owner of such parcel for a building code violation with a lien or liens to value ratio, as determined by the commissioner of finance, equal to or greater than thirty percent or [Any] any parcel of class one or class two real property that is subject to a tax lien or liens with a lien or liens to value ratio, as determined by the commissioner of finance, equal to or greater than fifteen percent and that meets one of the following two criteria:
i. such parcel has an average of five or more hazardous or immediately hazardous violations of record of the housing maintenance code per dwelling unit; or
ii. such parcel is subject to a lien or liens for any expenses incurred by the department of housing preservation and development for the repair or the elimination of any dangerous or unlawful conditions therein, pursuant to section 27-2144 of this code, in an amount equal to or greater than one thousand dollars.
§ 2. This local law takes effect 120 days after it becomes law, except that the commissioner of buildings, the commissioner of housing preservation and development and the commissioner of finance may promulgate rules or take other actions for the implementation of this local law prior to such effective date.