S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        7848--A
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     May 28, 2015
                                      ___________
       Introduced  by  M.  of A. LUPARDO, MAGNARELLI, McDONALD, SANTABARBARA --
         read once and referred  to  the  Committee  on  Local  Governments  --
         committee  discharged,  bill amended, ordered reprinted as amended and
         recommitted to said committee
       AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
         authorizing land banks to access real property prior to acquisition of
         the  property  and to the liabilities and exemptions from liability of
         land banks with relation to the acquisition and ownership  of  vacant,
         abandoned or tax delinquent real property
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The not-for-profit corporation law is amended by adding two
    2  new sections 1608-a and 1608-b to read as follows:
    3  S 1608-A. ACCESS TO REAL PROPERTY PRIOR TO ACQUISITION.
    4    NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO  THE
    5  CONTRARY:
    6    (A) TO CARRY OUT THE POWERS, DUTIES AND GOALS IDENTIFIED IN THIS ARTI-
    7  CLE,  LAND  BANKS  SHALL BE AUTHORIZED, IN ACCORDANCE WITH THE PROCEDURE
    8  DESCRIBED IN THIS SECTION, TO ACCESS ANY TAX DELINQUENT PARCEL  OF  REAL
    9  PROPERTY  THAT  THE  LAND  BANK  INTENDS TO ACQUIRE FROM ANY FORECLOSING
   10  GOVERNMENTAL UNIT, IN ORDER TO DETERMINE THE PHYSICAL CONDITION  OF  ANY
   11  BUILDINGS  OR  STRUCTURES ON SUCH PARCEL, OR TO ASSESS THE ENVIRONMENTAL
   12  CONDITION OF SUCH PARCEL.  IF  DEEMED  APPROPRIATE,  SUCH  ACCESS  SHALL
   13  INCLUDE  THE  ABILITY TO ENGAGE AN ENVIRONMENTAL PROFESSIONAL TO CONDUCT
   14  ALL APPROPRIATE INQUIRIES INTO THE FORMER  USE  AND  OWNERSHIP  OF  SUCH
   15  PROPERTY,  IN  ORDER TO DETERMINE WHETHER HAZARDOUS MATERIALS, HAZARDOUS
   16  SUBSTANCES OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR DISPOSED OF
   17  ON SUCH PARCEL, CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY PRACTICE.
   18    (B) FOLLOWING THE COMMENCEMENT OF A PROCEEDING TO FORECLOSE A TAX LIEN
   19  BY THE TAXING DISTRICT HAVING ANY RIGHT, TITLE OR INTEREST  IN  OR  LIEN
   20  UPON ANY PARCEL, A LAND BANK MAY, UPON NOT LESS THAN TWENTY DAYS' NOTICE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11251-03-5
       A. 7848--A                          2
    1  TO  ALL  PARTIES  HAVING RIGHT, TITLE, OR INTEREST IN, OR LIEN UPON SUCH
    2  PARCEL, MOVE, AT A SPECIAL TERM IN THE COURT IN  WHICH  THE  FORECLOSURE
    3  PROCEEDING  WAS  INITIATED,  OR  IF SUCH PROCEEDING IS AN ADMINISTRATIVE
    4  PROCEEDING PURSUANT TO THE PROVISIONS OF A COUNTY CHARTER, CITY CHARTER,
    5  ADMINISTRATIVE CODE, OR SPECIAL LAW WHEN APPLICABLE UNDER SECTION ELEVEN
    6  HUNDRED  FOUR OF THE REAL PROPERTY TAX LAW, THEN SUCH MOTION SHALL BE AT
    7  A SPECIAL TERM OF THE SUPREME COURT IN THE COUNTY IN WHICH  SUCH  PARCEL
    8  IS  LOCATED, FOR AN ORDER GRANTING THE LAND BANK THE TEMPORARY INCIDENTS
    9  OF OWNERSHIP OF SUCH PARCEL FOR THE SOLE PURPOSE OF  ENABLING  THE  LAND
   10  BANK AND ITS AGENTS TO ENTER THE PARCEL TO CONDUCT VISUAL INSPECTION AND
   11  SUCH  FURTHER ENVIRONMENTAL INVESTIGATION OF THE PARCEL AS THE LAND BANK
   12  DEEMS NECESSARY IN  ORDER  TO  DETERMINE  WHETHER  HAZARDOUS  MATERIALS,
   13  HAZARDOUS  SUBSTANCES  OR OTHER CONTAMINANTS WERE PREVIOUSLY RELEASED OR
   14  DISPOSED OF ON SUCH PARCEL. SUCH INSPECTION MAY INCLUDE  INVASIVE  TEST-
   15  ING,  INCLUDING  BUT  NOT  LIMITED TO SAMPLING OF SURFACE AND SUBSURFACE
   16  SOIL AND/OR GROUNDWATER, AS IS CONSIDERED BY  AN  ENVIRONMENTAL  PROFES-
   17  SIONAL TO BE NECESSARY AND CONSISTENT WITH GOOD COMMERCIAL AND CUSTOMARY
   18  PRACTICE  FOR  CONDUCTING  ALL APPROPRIATE INQUIRIES INTO THE FORMER USE
   19  AND CONDITION OF SUCH PARCEL. FOLLOWING ANY SUCH INVASIVE  TESTING,  THE
   20  LAND  BANK  SHALL  RETURN  THE PARCEL, TO THE EXTENT PRACTICABLE, TO THE
   21  CONDITION IT WAS IN BEFORE THE INVESTIGATION.
   22    (C) UNLESS PRIOR TO THE RETURN DATE OF THE MOTION BROUGHT PURSUANT  TO
   23  THIS  SECTION  THE  PROPERTY  HAS  BEEN REDEEMED BY THE PARTY HAVING THE
   24  RIGHT OF REDEMPTION, THE COURT SHALL ENTER AN ORDER GRANTING SUCH RELIEF
   25  TO THE LAND BANK. SUCH ORDER SHALL BE GRANTED UPON SUCH TERMS AND CONDI-
   26  TIONS AS THE COURT SHALL DEEM JUST AND PROPER TO PERMIT  THE  INSPECTION
   27  TO  OCCUR  UNHINDERED  AS  WELL AS TO PROTECT THE INTERESTS OF ALL OTHER
   28  PARTIES HAVING AN OWNERSHIP INTEREST IN THE PARCEL. SUCH ORDER SHALL ACT
   29  AS A STAY TO THE FORECLOSURE ACTION ON SUCH PARCEL OF PROPERTY UNTIL THE
   30  INSPECTION HAS BEEN COMPLETED AND A REPORT OF THE INVESTIGATION HAS BEEN
   31  FILED WITH THE COURT.
   32    (D) SUCH TEMPORARY INCIDENTS OF OWNERSHIP IN THE PARCEL  BY  THE  LAND
   33  BANK SHALL NOT BE SUFFICIENT OR CONSTRUED TO CONSTITUTE ACTUAL OWNERSHIP
   34  OF  THE  PARCEL  FOR  PURPOSES OF ANY APPLICABLE ENVIRONMENTAL LAW WHICH
   35  CONFERS LIABILITY FOR DAMAGES CAUSED BY THE  RELEASE  OF  ANY  HAZARDOUS
   36  MATERIAL,  SUBSTANCE  OR  CONTAMINANT,  UNLESS SUCH RELEASE WAS ACTUALLY
   37  CAUSED BY THE LAND BANK.
   38    (E) WITHIN THIRTY DAYS FOLLOWING THE  COMPLETION  OF  THE  INSPECTION,
   39  INCLUDING  RECEIPT  OF  A  FINAL  REPORT  RECEIVED FROM AN ENVIRONMENTAL
   40  PROFESSIONAL CONDUCTING THE INSPECTION, IF ANY, THE LAND BANK SHALL FILE
   41  ANY SUCH REPORT, OR A DESCRIPTION OF THE RESULTS OF THE INSPECTION IF NO
   42  FORMAL ENVIRONMENTAL INVESTIGATION OF THE PARCEL  WAS  UNDERTAKEN,  WITH
   43  THE  COURT  ON  NOTICE TO THE COURT AND ALL OTHER PARTIES OF RECORD, AND
   44  THE STAY OF THE FORECLOSURE SHALL BE LIFTED (UNLESS LIFTED EARLIER BY  A
   45  PRIOR COURT ORDER), AND ALL INCIDENTS OF TEMPORARY OWNERSHIP OF THE LAND
   46  BANK THAT WAS AWARDED TO SUCH LAND BANK, SHALL CEASE TO EXIST, AND NOTH-
   47  ING  IN THIS SUBDIVISION SHALL PRECLUDE THE LAND BANK THAT CONDUCTED THE
   48  INSPECTION FROM MAKING A DETERMINATION NOT TO  ACQUIRE  THE  PARCEL,  OR
   49  PRECLUDE  THE TAXING JURISDICTION THAT COMMENCED THE FORECLOSURE ACTION,
   50  FROM WITHDRAWING THE PARCEL FROM FORECLOSURE PURSUANT TO SECTION  ELEVEN
   51  HUNDRED  THIRTY-EIGHT  OF  THE  REAL PROPERTY TAX LAW OR PURSUANT TO THE
   52  PROVISIONS OF A COUNTY CHARTER, CITY CHARTER,  ADMINISTRATIVE  CODE,  OR
   53  SPECIAL  LAW  WHEN  APPLICABLE  UNDER SECTION ELEVEN HUNDRED FOUR OF THE
   54  REAL PROPERTY TAX LAW.
   55  S 1608-B. LIABILITY EXEMPTION AND DEFENSES.
       A. 7848--A                          3
    1    NOTWITHSTANDING ANY GENERAL, SPECIAL OR LOCAL LAW OR ORDINANCE TO  THE
    2  CONTRARY,  IN  CARRYING  OUT  THE POWERS, DUTIES AND GOALS IDENTIFIED IN
    3  THIS ARTICLE WITH RESPECT TO THE ACQUISITION AND  OWNERSHIP  OF  VACANT,
    4  ABANDONED OR TAX DELINQUENT REAL PROPERTY, NO LAND BANK ORGANIZED PURSU-
    5  ANT TO THIS TITLE SHALL INCUR LIABILITY FROM ANY STATUTORY CLAIMS OF THE
    6  STATE  RELATING TO THE PRESENCE, RELEASE OR DISPOSAL OF HAZARDOUS WASTE,
    7  HAZARDOUS SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS ON REAL  PROPERTY,
    8  BY  VIRTUE OF ITS ACQUISITION AND OWNERSHIP OF ANY PROPERTY CONTAMINATED
    9  BY SUCH  HAZARDOUS  WASTE,  HAZARDOUS  SUBSTANCES,  PETROLEUM  OR  OTHER
   10  CONTAMINANTS, PROVIDED THAT THE FOLLOWING CONDITIONS ARE MET:
   11    (A)  SUCH  PROPERTY  CONSTITUTED  VACANT,  ABANDONED OR TAX DELINQUENT
   12  PROPERTY AND WAS ACQUIRED BY  THE  LAND  BANK  TO  EFFECT  THE  PURPOSES
   13  DESCRIBED IN SECTION SIXTEEN HUNDRED ONE OF THIS ARTICLE;
   14    (B)  THE  RELEASE  OR  DISPOSAL  OF  THE  HAZARDOUS  WASTE,  HAZARDOUS
   15  SUBSTANCES, PETROLEUM OR OTHER CONTAMINANTS OCCURRED BEFORE THE ACQUISI-
   16  TION OF THE PROPERTY BY THE LAND BANK;
   17    (C) THE LAND BANK DID NOT  CAUSE  OR  CONTRIBUTE  TO  THE  RELEASE  OR
   18  THREATENED  RELEASE OF THE HAZARDOUS WASTE OR PETROLEUM FROM OR ONTO THE
   19  PROPERTY, OR GENERATE, TRANSPORT, OR DISPOSE OF SUCH HAZARDOUS WASTE  OR
   20  PETROLEUM,  OR  ARRANGE FOR, OR CAUSE THE GENERATION, TRANSPORTATION, OR
   21  DISPOSAL OF HAZARDOUS WASTE, FROM OR ONTO THE SITE; AND
   22    (D) SUCH PROPERTY WAS ACQUIRED  BY  THE  LAND  BANK  EITHER  DIRECTLY,
   23  THROUGH  FORECLOSURE  OF  A  TAX  LIEN, OR, WAS ACQUIRED FROM ANY PUBLIC
   24  CORPORATION,  AS  DEFINED  IN  SECTION   SIXTY-FIVE   OF   THE   GENERAL
   25  CONSTRUCTION LAW, FOLLOWING THE INVOLUNTARY ACQUISITION OF OWNERSHIP AND
   26  CONTROL BY SUCH PUBLIC CORPORATION, INCLUDING BUT NOT LIMITED TO:
   27    (1)  ACQUISITIONS  BY  A PUBLIC CORPORATION IN ITS SOVEREIGN CAPACITY,
   28  INCLUDING BUT  NOT  LIMITED  TO  ACQUISITIONS  PURSUANT  TO  ABANDONMENT
   29  PROCEEDINGS OR BEQUEST;
   30    (2)  ACQUISITIONS  BY  A PUBLIC CORPORATION, OR ITS AGENT, ACTING AS A
   31  CONSERVATOR OR RECEIVER PURSUANT TO A CLEAR AND DIRECT STATUTORY MANDATE
   32  OR REGULATORY AUTHORITY;
   33    (3) ACQUISITIONS OF ASSETS THROUGH FORECLOSURE AND ITS EQUIVALENTS, OR
   34  OTHERWISE, BY A PUBLIC CORPORATION IN  THE  COURSE  OF  ADMINISTERING  A
   35  LOAN,  LOAN  GUARANTEE,  TAX LIEN, OR TAX FORBEARANCE AGREEMENT, OR LOAN
   36  INSURANCE PROGRAM; OR
   37    (4) ACQUISITIONS BY A PUBLIC CORPORATION PURSUANT TO SEIZURE,  INJUNC-
   38  TION,  CONDEMNATION,  OR FORFEITURE AUTHORITY; PROVIDED THAT SUCH OWNER-
   39  SHIP OR CONTROL IS NOT RETAINED PRIMARILY FOR INVESTMENT PURPOSES.
   40    S 2. This act shall take effect immediately.