[Adopted 9-6-1979 (Ch. 25 1/2 of the 1973 Code); amended
in its entirety 5-2-2019 by Ord.
No. 34]
This article sets forth the procedure for management and disposal
of surplus property owned by the City of Troy. The procedure is aimed
at achieving the following goals:
A.
To sell under terms as will provide the longest benefit to the City
of Troy;
B.
To sell under such circumstances as will expedite development, rehabilitation
and beautification of property sold;
C.
To sell under such circumstances as will inhibit the return of property
to the delinquent tax list; and
D.
To obtain the most advantageous price to the City.
A.
Reports of the Bureau. The Bureau of Surplus Property shall review
and report on its actions to the Mayor quarterly. The Mayor shall
transmit such reports to the City Council.
B.
Classification of property. All property owned by the City of Troy
will be classified as surplus property except for property which is
needed for City purposes. The City Assessor shall have the duty to
circulate throughout the departments and bureaus of City government
the list of surplus property to ascertain any City need for the property.
Should any property be designated as needed for City purposes it will
be omitted from the list of surplus property.
C.
Management of surplus property. It shall be the duty of the Bureau
of Surplus Property to manage surplus property.
(1)
Where possible, inhabitable property may be rented. Uninhabitable
property should be secured by the Department of Public Works to prevent
damage or vandalism.
(a)
The City may evict occupants of City-owned property pursuant
to the New York Real Property Actions and Proceedings Law, and may
commence such proceedings during the reconveyance period.
(b)
No property shall be rented for residential purposes which fail to comply with Chapter 176, Housing and Property Maintenance, after acquisition by the City. The Bureau of Code Enforcement shall inspect and determine whether a property is habitable pursuant to Chapter 176, Housing and Property Maintenance, and take appropriate action as set forth in that chapter.
(c)
Commercial and industrial tenants shall be required to keep
the buildings they occupy safe and insured in such amounts as required
by the Comptroller, with the City of Troy included as named insured.
(d)
Requests for maintenance, repairs, demolition and necessary
rehabilitation will be forwarded to the Commissioner of General Services,
who shall be responsible to see that the work is completed. The cost
of labor and materials shall be a charge against the Department of
General Services budget.
(e)
A list of all tenants and rents charged and received shall be
kept by the Bureau of Surplus Property. A monthly summary of receipts
and delinquencies as well as copies of any requests for evictions
which have been forwarded to the Corporation Counsel shall be submitted
to the Comptroller on or before the 10th day of the following month.
A.
Property Review Committee. In order to achieve the above purposes
in connection with the sale of surplus City real property, there shall
be a Property Review Committee to oversee the process and to evaluate
reconveyances, proposal sales and auction bids in light of the above
goals. The Property Review Committee will be comprised of the Deputy
Mayor, Director of Code Enforcement, Assessor, Economic Development
Director and two City Council members with one from the majority caucus
and one from the minority caucus.
B.
Inventory. As soon as possible after the recording of the in rem
foreclosure deed, the Assessor or his/her designee shall visit each
property to determine its condition.
C.
Preparation of list. The City Assessor shall prepare a list of all surplus property classifying parcels according to § 83-2B.
D.
Promotion.
(1)
The Assessor shall mail letters to the last-known owners, informing
them of the reconveyance program.
(2)
The Assessor shall mail letters to adjacent owners of vacant land
on the list and inform them of their right to buy through the proposal
sales method.
(3)
The list shall be circulated among City agencies, other public agencies,
real estate brokers, developers and anyone else requesting such lists.
E.
Newspaper advertisement. As soon as possible after the recording
of the in rem deed, the Assessor shall cause an advertisement to be
placed in the City's official newspaper, publishing the list
of surplus property for sale and informing the general public when
and where proposals will be accepted and when and where the auction
will be held on property for which no proposal is accepted by the
City Council. That advertisement shall be published at least one more
time during the week following the first publication. Additional advertisements
and promotional activity may be undertaken as deemed desirable by
the Assessor, including advertising on multiple real estate listings,
websites, mapping, social media and other publications.
F.
Property sales methods. Parcels of surplus real property obtained
by the City may be sold and conveyed by the following methods:
(1)
Reconveyance on payment of delinquent real property taxes, interest,
penalties and other legal and administrative charges.
(2)
Proposal sale application consisting of a proposal regarding the
plan for a specific parcel and a sealed bid for the funds to be paid
for the purchase of the property.
(3)
Minimum bid. Residential and commercial properties considered by
the Assessor or his/her designee to have a current market value in
excess of $40,000 will require a minimum bid to be established by
the Committee. Where multiple bids equal to or in excess of the minimum
bid are received, the parcel will be sold to the most credible highest
bidder. Where no minimum bid is received, the property may be sold
via the proposal sale method or by auction as deemed to be in the
best interests of the City by the Committee.
(4)
Auction. Parcels may be sold via the auction method as deemed to
be necessary and in the best interests of the City by the Property
Review Committee at various times during the year.
(5)
The Troy Land Bank shall review the list of residential parcels of
surplus property and designate to the Property Review Committee those
properties that the Committee may transfer to the land bank for its
purposes.
(6)
The local development corporation shall review the list of commercial
properties, as defined by the Real Property Tax Law, and designate
to the Property Review Committee those properties that the Committee
may transfer to the local development corporation for its purposes.
(7)
Retention of a New York State licensed real estate broker.
G.
Auctions. The Bureau of Surplus Property shall advertise and hold
auctions throughout the year as the Assessor deems necessary.
A.
City Council members and City officers and employees.
(1)
City Council members and City officers and employees occupying the
positions of Mayor, Deputy Mayor, Corporation Counsel, Comptroller,
Commissioner of General Services, Commissioner of Public Safety. Commissioner
of Planning and Economic Development, Superintendent of Public Utilities
City Engineer, City Assessor and employee of the Bureau of Code Enforcement
shall not be permitted to purchase City surplus real property. Those
City officers and employees may, however, submit an application to
purchase real property that is adjacent to real property that is currently
owned by said officer or employee.
(2)
Any excluded employee in the previous section who wishes to submit
a bid on property where there has been an open house must obtain a
pre-approval to do so from the Law Committee of the City Council.
B.
Other City employees. Other City employees may bid on and purchase
surplus real property subject to the following conditions:
(1)
The general public shall have equal access to sale parcels and records
relating to sales parcels as do City employees. Prior to obtaining
access to properties deemed safe to enter, City employees and members
of the general public must sign a waiver of liability form at the
Assessor's office and be accompanied by a City representative
at the site visit. Prior to obtaining access to City records relating
to a specific parcel of property, City employees and members of the
general public shall submit a FOIL request for the records which the
City employee or member of the general public wish to review.
(2)
If any City employee wishes to submit an application and bid for
a parcel of City surplus real property, such employee must obtain
a pre-approval to do so from the Law Committee of the City Council.
C.
Improper influence. In no event shall a City employee who has direct
or indirect supervisory authority over another employee direct the
supervised employee to take an action that will be of personal benefit
to the supervisor in connection with the sale of a City property or
the release of the City's right of reacquisition.
A.
Regulated. Except for reconveyances, all sales of surplus property
will be made only after the purchaser has agreed to comply with and
signed a copy of the terms of sale.
B.
Terms. The terms of sale shall be as follows:
(1)
The property will be sold as is.
(2)
A down payment of 10% of the purchase price will be required to be
paid at the time the offer is received by the City or at the completion
of bidding, if at auction. At the time of the proposal sale application
or bid at auction, the applicant or bidder must be current on all
monies owed to the City of Troy, including, but not limited to: property
tax bills, water bills, code enforcement fines, recycling fees, etc.
(3)
Within 30 days after the approval of the sale by the City Council,
the purchaser will pay to the Bureau of Surplus Property the balance
of the purchase price plus the advertising cost and payment in lieu
of City, county and school taxes based on the City's current
assessed value prior to sale and prorated for the time prior to the
first tax bill to the purchaser. Upon default of such payment, the
City shall retain the down payment, which is not a penalty but liquidated
damages. This period may be extended only for extenuating circumstances,
as determined by the City Assessor.
(4)
The City Council reserves the right to reject any and all purchase
offers.
(5)
In the event the City for any reason determines not to sell to the
purchaser, the liability of the City of Troy and of its agents relative
to the property conveyed is limited to the return of any payments
made to the City of Troy.
(6)
No representations of any kind are or have been made by the City
of Troy or its agents as to the title or physical condition of the
property or as to the existence of any improvements thereon.
(7)
This sale is made subject to the condition that:
(a)
If there is a structure on the premises which is able to be
rehabilitated or inhabited, it shall be repaired in conformance with
the building, housing and fire prevention codes within six months
after the date of the deed from the City to the purchaser or within
nine months if approval by the Planning and/or Zoning Boards is required.
(b)
If there is a structure on the premises which is not able to
be rehabilitated or inhabited, it shall be demolished within six months
after the date of the deed from the City to the purchaser.
(c)
If vacant land is purchased for building purposes, a building
shall be erected of such type of construction as to conform with the
surrounding area and comply with building, housing and fire prevention
codes within one year after the date of the deed from the City to
the purchaser or within one year of approval by the Planning and/or
Zoning Boards, if required.
(d)
If vacant land is not purchased for building purposes, it must
be cleaned and maintained in compliance with the City Code so as not
to be a nuisance or detriment to its neighborhood within 90 days after
the date of the deed.
(e)
If there is a structure on the premises which is able to be rehabilitated or inhabited, it shall be secured or shall be boarded up, both as defined in § 141-21C(1) of the City Code, within 15 days of the date of the deed from the City to the purchaser.
(f)
The above-mentioned time periods for repair, demolition, construction
or cleaning and maintenance may be extended for up to six months by
the Bureau of Code Enforcement, upon submission by the property owner
of a compliance plan which has been approved by the Director of Code
Enforcement. Any further extensions of time may be made only by the
City Council, upon request of the purchaser and upon a showing of
substantial progress on the proposed project.
(g)
The owner shall obtain a certificate of occupancy or a certificate
of compliance prior to occupancy of the structure. If any structure
is occupied, it shall be inspected by the Bureau of Code Enforcement
within 10 days of purchase. Failure to do so shall result in the vacating
of the premises immediately.
(8)
The quitclaim deed shall contain a right of reacquisition clause
that if the purchaser, or his/her successors or assigns shall fail
to comply with the applicable conditions, the City has a right to
reacquire the property without refunding the purchase price. The deed
shall also contain a waiver of real property defenses clause.
(9)
The purchaser shall not alter, remove or otherwise change any items
contained in or attached to any building or land to be purchased from
the City of Troy until the full purchase price and charges are paid
and the deed from the City is received by the purchaser.
(10)
Every prospective purchaser will submit with the down payment a signed
memorandum of purchase and agreement to comply with these terms of
sale.
(11)
Prior to the approval of sale by the City Council, the purchaser
shall submit a statement under oath and penalty of perjury, setting
forth the following:
(a)
That the purchaser is the real party in interest or, if the
purchaser is acting as an agent, the name of the principal.
(b)
A statement that no persons other than those listed are financially
or beneficially interested in the sale.
(c)
Does any public official, officer, agent or employee of the
City of Troy have an interest in the transaction? If yes, a statement
giving the name and position of the official, officer, agent or employee.
|
NOTE: Status as an employee or an officer of the City of Troy
does not necessarily disqualify one from eligibility to purchase from
the City of Troy. Inquiries should be addressed to the office of the
Corporation Counsel.
|
(d)
That no collusion with any other bidder or any public official
has taken place.
(e)
State of relationship to previous owner, if any.
(f)
A list of all of the real property the purchaser owns in the
City of Troy or has owned in the last five years in the City of Troy.
(g)
A list of all properties owned by the purchaser in the City
of Troy on which there are outstanding violations of the City Code,
and which there are delinquent taxes, bills, and/or fees that are
due and owing to the City.
(h)
A statement whether or not the City of Troy has ever taken title
to any property owned by the purchaser via an in rem tax foreclosure
proceeding.
(i)
If the purchaser is a corporation, a statement identifying by
name and address the major stockholders and the officers of the corporation.
(j)
A statement as to whether or not the purchaser owns any property
in the City of Troy upon which a vacant or abandoned building is located.
C.
Termination of right of reentry. Any condition or right of reentry
may be terminated by deed signed by the Mayor upon either a certificate
of compliance from the Bureau of Code Enforcement, showing that the
property conforms in all respects to the appropriate rules and regulations,
or upon the purchaser obtaining a building and loan rehabilitation
mortgage or rehabilitation mortgage, which shall be recorded simultaneously
with the deed, releasing the right of reentry. Where the conditions
have not been fulfilled, the Corporation Counsel shall take whatever
action is necessary to reenter or reacquire the property for the City
of Troy.
A.
The City Council, in its discretion, may convey all of the property,
right, title and interest of the City in any property hereafter acquired
by the City by virtue of any in rem foreclosure action to any person,
association or corporation which, on the date of the filing of the
list of delinquent taxes in such action, had been vested with title
thereto; however, no conveyance may be made of any such lands, real
estate or real property, or any portion thereof, which the City Council
has assigned for City purposes; and the grantee by such conveyance
shall receive thereby the title which was vested in the owner on the
date of the filing of the list of delinquent taxes, subject to any
and all liens, encumbrances and defects which existed on said date
except in this section otherwise provided, including the lien or encumbrance,
if any, of the applicant.
B.
Such person, association or corporation shall apply in writing to the Bureau of Surplus Property for such conveyance within one month after the date of publication of the first newspaper advertisement pursuant to § 83-3E, providing the City has not sold or agreed to convey the lands, real estate or real property involved to a successful bidder nor assigned the same for City purposes. Any person, association or corporation which, on the date of the filing of the list of delinquent taxes, in an action in rem, had a lien or encumbrance of record or pursuant to a policy or written agreement of insurance inuring to the benefit of an owner of the title, lien or encumbrance, entered into prior to the commencement of an action to foreclose, shall have the same right as the owner, within the same period of time herein set forth, to apply to the Bureau for such conveyance, excepting that no such application shall be considered by the Bureau until the full period of time of the owner to make application shall have expired and the owner shall have failed to make such application. During the periods of time provided in this section, the City shall not sell such lands, real estate or real property to any person, association or corporation other than one entitled to apply for a conveyance as herein provided, but this prohibition shall not operate or be construed to deny to the City Council the right within such periods of time to assign such lands, real estate or real property to any City purpose. Any application made pursuant to the provisions of this section shall be verified and contain a statement of the identity and interest of the applicant and that he/she has not accepted or agreed to accept any consideration or other assistance for making this application in return for his/her promise or agreement to convey, transfer or assign his/her right, title and interest in the lands, real estate or real property subsequently to be conveyed to him/her by the City pursuant to this section.
C.
Within one month after the beginning of the application period, the
applicant shall submit a duly written certificate or certified search
of the County Clerk or clerk of Surrogate's or other court of
record, or by the duly written certificate, certified search-of-title
report of any title insurance, abstract or searching company or attorney,
attesting that the applicant for such conveyance was, on the date
of the filing of the list of delinquent taxes, such owner, lienor
or encumbrancer of record and listing any liens or encumbrances of
record as of that date. In the event that the estate, lien or interest
of the applicant shall have been derived by reason of the death of
the owner, lienor or encumbrancer of record of or against such lands,
real estate and real property on the date of the filing of the list
of delinquent taxes, and such derived estate, lien or interest of
the applicant shall not appear of record, proof of such facts as shall
be sufficient to attest to the derivation of such estate, lien or
interest shall be made by affidavit of the applicant or other persons
having information with relation thereto. Such certificates, searches
and affidavits shall be transmitted by the Bureau of Surplus Property
to the Corporation Counsel, who shall examine them and report to the
City Council upon the sufficiency of such documents to comply with
the provisions of this section. The City Assessor shall cause to be
prepared and delivered to such applicant a conveyance of the right,
title and interest of the City in and to such real property, provided
only that the title which the applicant shall receive thereby shall
not be free from any and all liens, encumbrances and defects which
existed on the date of the filing of the list of delinquent taxes,
and upon the delivery of such conveyance, such liens, encumbrances
or defects, including the lien or encumbrance, if any, of the applicant,
shall thereupon reattach. Such conveyance shall be in such form as
the Corporation Counsel shall approve.
D.
Within two months of the beginning of the application period, the
application shall be submitted to the City Council for approval.
E.
Such conveyance shall be delivered to the applicant upon the payment
as to each separate parcel so conveyed of the following sums of money
within 30 days of approval by the City Council. The period may be
extended only for extenuating circumstances, as determined by the
City Council, no later than the second regular meeting of the Council
following expiration of this thirty-day period:
(1)
The principal amount due on all delinquent tax liens appearing on
the list of delinquent taxes upon which the judgment of foreclosure
was based with interest at the rates appearing on the said list to
the date of payments.
(2)
The principal amount due on all unpaid taxes, assessments, sewer
rents and water rents which accrued and became liens on a date or
dates subsequent to the date or dates on which the delinquent tax
liens appearing on the list of delinquent taxes accrued and became
liens with interest, at the rate or rates provided by law.
(3)
If necessary, a payment in lieu of taxes, prorated for the time prior
to the first tax bill to the purchaser for City, county and school
taxes, based on the prior assessment and current tax rate.
(4)
A sum of $200 administration fee for each parcel conveyed and, in
the case of improved property, an additional sum of $100 per month
management fee while title to such property is held by the City after
the date of foreclosure and prior to the date of reconveyance. Such
fees shall be collected from the applicant prior to reconveyance or
may be deducted from any excess rents collected by the City while
it held title to the property.
(5)
Any deficiency which may result to the City after all payments made
by it for the repair, maintenance and operation of the lands, real
estate and real property shall have been charged or debited in the
appropriate accounts of the City and all rents, license fees and other
moneys collected by the City as a result of its operation of the lands,
real estate and real property shall have been credited in such accounts.
Any contract for repair, maintenance, management or operation made
by the City on which it shall be liable, although payment thereon
shall not have been made, shall be deemed a charge or debit to such
accounts as though payment had been made. The amounts paid and collected
by the City as shown in its accounts and the necessity for making
the several payments and contracts to be charged as herein provided
shall be conclusive upon the applicant.
(6)
Any and all costs and disbursements which shall have been awarded
to the City, or to which it may have become entitled by operation
of law, or which it may have paid or become liable for payment in
connection with any litigation between it and the applicant or any
person having an estate or interest in the lands, real estate and
real property to be conveyed resulting directly or indirectly from
the foreclosure by action in rem of the delinquent taxes affecting
lands, real estate or real property.
(7)
Any and all rents, license fees and other moneys due and owing to the City, which on the date of the making of such conveyance shall not have been collected by it, and the right to collect and bring actions to collect the same shall be assigned, transferred and set over to the applicant by an instrument in writing. All rents collected by the City not needed to reimburse the City for fees as provided under Subsection E(5) hereof or costs and disbursements as provided under Subsection E(6) hereof shall be credited to the purchaser at the time of reconveyance.
F.
A person who, in the promotion of his/her interests or to derive
pecuniary benefit, gain or profit for himself/herself or for any person,
association or corporation, shall solicit, induce or agree to cause
or to cause any other person, association or corporation to apply
for a conveyance pursuant to this section, and who gives or promises
to give such applicant any consideration or other assistance in return
for the applicant's promise or agreement to convey, transfer
or assign the right, title and interest in the lands, real estate
or real property subsequently to be conveyed to such applicant by
the City pursuant to this section, or a person, officer or director
of an association or corporation who, being entitled to apply for
a conveyance pursuant to this section, in return for a consideration
or other assistance by or accepted from another person, association
or corporation not entitled to so apply, agrees to make such application
and promises, or in any way binds himself/herself, to sell, transfer
or assign his/her right, title and interest in the lands, real estate
or real property subsequently to be conveyed to him/her by the City
pursuant to this section, is guilty of a misdemeanor.
G.
The right to apply for a conveyance by this section shall be the
exclusive method by which any person, association or corporation which
by this section shall be entitled to make application may secure a
conveyance of such lands, real estate and real property.
H.
The right for a person, association or corporation to apply for a
reconveyance of a designated parcel of City surplus real property
acquired by virtue of an in rem foreclosure proceeding shall be limited
to one such application with each application subject to City Council
approval.
A.
When accepted. During the 30 days following the publication of the first newspaper advertisement pursuant to § 83-3E, proposals shall be accepted by the Bureau of Surplus Property on all surplus property owned by the City at that time.
B.
At other times, as the Assessor shall decide, proposals may be accepted
on selected parcels which have appeared in an advertisement in the
official newspaper at least two times, giving notice that proposals
will be accepted and when and where they may be submitted.
C.
Form of proposal. Proposals submitted to the Assessor shall contain
at least the following to be eligible for review:
(1)
A description of the proposed use and a plan for accomplishing said
use.
(2)
A proposed purchase price.
(3)
A signed copy of the terms of sale and the statement required therein.
(4)
A signed commitment stating that the proposer is willing to make
a contract with the City guaranteeing performance of the proposed
plan.
(5)
Past record of the proposer in rehabilitating or managing real property.
(6)
Amount of money promised to be invested in the property.
(7)
Source of financing.
(8)
Additional conditions proposer is willing to set for himself/herself.
D.
Evaluation of proposals. Proposals shall be submitted to the Bureau
of Surplus Property, and the Property Review Committee shall evaluate
the proposals, using the following criteria:
(1)
Whether the proposer would be an occupant of the building or, if
not an occupant, would live near the property.
(2)
Whether there is a probability that the proposer will be successful
in completing proposed improvements and maintaining the property.
(3)
Whether the proposal accords with the best use of the property.
(4)
Whether the proposal will be a benefit to neighborhood condition,
appearance and property values.
(5)
Whether the proposal will result in the highest long-term tax return
to the City.
(6)
Consideration of applicant's history of code compliance.
E.
Consideration by the City Council. The Bureau of Surplus Property
shall make a recommendation to the City Council for approval or rejection
of the proposal. As soon as possible after deadline for submission
of proposals, the City Council shall vote on the proposal.
F.
Proposal contracts. Within 30 days of the acceptance of the proposal
by the City Council, the purchaser shall pay the purchase price and
execute a contract setting forth the conditions of sale as outlined
in the proposal and guaranteeing performance.
G.
The Mayor shall provide quarterly reports to the City Council listing
all reverter releases executed since the previous report.
A.
Public auctions may be conducted by the Bureau of Surplus Property
after proposals are acted on by the City Council and throughout the
year, as needed.
B.
Property shall be sold as advertised, starting at the minimum bid.
C.
The auction shall not be completed until a down payment is made by
the high bidder. In the event the high bidder fails to make a down
payment at the conclusion of the bidding, bidding shall commence at
the last amount offered prior to being struck down.
A.
Offers for private sale may be received by the Bureau of Surplus
Property on any parcel at any time, but in no event will the offer
be accepted by the City Council until the proposal period is over
and there is no auction bid which has not yet been acted upon.
B.
Owners of land adjacent to vacant land and to buildings which cannot
be rehabilitated, and which the buyer agrees to demolish, on the surplus
property list have first priority for private sale.
C.
All private sales will be made for at least the appraised value as determined pursuant to § 83-3B.
D.
At the request of a prospective purchaser, individual lots may be
combined or divided, at the discretion of the City Assessor, to make
more desirable property. Such new lots shall be appraised by the Assessor.
