Amendments to rules governing tax liens sales and in rem foreclosures

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Wednesday, March 25, 2015
Download Copy of Adopted Rule (.pdf): 

The rules governing how third parties may acquire property that is the subject of an in rem foreclosure judgment, as well as the third party transfer process, are in Chapter 8 of Title 28 of the Rules of the City of New York (RCNY). Section 8-03(e) sets forth factors that HPD may consider in selecting a third party.  Among those factors is “whether an application has been submitted under sponsorship of a Third Party on behalf of Tenants for eventual ownership by the Tenants of a property that is subject to an in rem judgment of foreclosure.”  28 RCNY 8-03(e)(9).  Section 8-06 describes how HPD evaluates the tenants’ progress toward ownership of the property when a third party sponsor has submitted an application on their behalf.  Section 8-07 describes how HPD determines whether or not to approve a transfer of property from a third party to tenants.    

 

The amendments modify or clarify portions of Sections 8-06 and 8-07. The amendments provide more flexibility in the timing of training for tenants and for determining the end of the interim evaluation period.