Amendments to Tax Lien Sale Installment Agreements

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Thursday, July 10, 2014
Download Copy of Adopted Rule (.pdf): 

Statement of Basis and Purpose

  

Section 11-322(b) of the Administrative Code of the City of New York authorizes owners of real property to enter into agreements with the New York City Department of Finance and the New York City Department of Environmental Protection for the payment in installments of delinquent real property taxes and other property-related charges, including water and sewer charges, that are liens on the property. The law further requires that the proposed sale of tax liens on a property be cancelled when such an installment agreement has been executed for the property.

 

Local Law 147 of 2013 amended section 11-322(b) to allow, in addition to property owners, other eligible persons to enter into installment agreements which would prevent the sale of tax liens on real property. The local law also requires the Department of Finance and Department of Environmental Protection to promulgate, no later than June 1, 2014, rules governing the eligibility of a property owner or other eligible person acting on behalf of the owner to enter into installment agreements.  Specifically, the local law provides that “other eligible person” must include a fiduciary, and directs any rules defining “other eligible person” to include the means by which a beneficiary of real property for which an installment agreement is sought may meet the definition.

 

These amendments to the Rules Relating to the Sale of Tax Liens carry out the requirements of section 11-322(b) as amended by Local Law 147 by:

    • amending references in the rules to property owners who may enter into installment agreements, by adding references to other eligible persons who may enter into such installment agreements
    • adding to the rules a definition of the “other eligible person” who can enter into an installment agreement, which includes (1) a fiduciary (a) administering the property of an estate of a decedent who owned the real property for which an installment agreement is sought, or (b) acting on behalf of a beneficiary of such real property from such estate, and (2) such estate beneficiary; and
    • listing the documentation required to verify the eligibility of fiduciaries and estate beneficiaries to enter into installment agreements.

 The Department of Finance’s authority for these rules is found in New York City Administrative Code §11-322(b) and New York City Charter §§ 1043 and 1504.

 New material is underlined.

 

[Deleted material is in brackets.]

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department unless otherwise specified or unless the context clearly indicates otherwise.