City of Utica, NY Sales of Land for Unpaid Taxes or Assessments

Editor's Note: The Sales of Land for unpaid taxes or assessments shall be governed by the "Uniform Delinquent Tax Enforcement Act" as codified by Article 11 of the Real Property Tax Law of the State of New York, which is and shall be hereby adopted. Local Law 1 of 2005, adopted November 8, repealed the former Sections 8.031—8.039. Those sections remain effective for taxes subject to the 2006 tax sale and prior. The provisions are as follows:
§ 8.031. Notice; conduct of sale; purchase by City; time of sale; exclusions from sale.
(a) Whenever any tax or assessment charged on any tax lists or assessment list together with the fees and penalties thereon remains unpaid, the City Comptroller shall, except as otherwise provided in this division, advertise and sell the real estate mentioned in the tax list or assessment list for the tax, fees, penalties and expenses. When there is more than one tax or assessment upon the same parcel of land, the description of such parcel shall be inserted but once in the advertisement. The City Comptroller shall charge each parcel of land included in the notice of sale with $15 to cover the expenses of printing and publication.
(b) The City Comptroller shall cause to be published once in the official newspaper a list or statement of the real estate charged with the payment of taxes and assessment with additions, fees, penalties and expenses, and so liable to be sold, and also a notice that the real estate will, on a day to be specified in the notice and the succeeding days, be sold at public auction to the highest bidder at the Comptroller's office in the City, to pay the taxes, additions, fees, penalties and expenses thereon which may remain unpaid at the time of the sale.
(c) The City Comptroller shall also, prior to the commencement of the publication required in this section, cause a notice of the tax sale to be sent by first class mail to the names and addresses of the owners and mortgagees, as shown on the assessment roll, of each parcel to be sold. The notice shall contain a brief description of the parcel, the aggregate amount due on the parcel at the time of sale, and a statement that unless the amount is paid prior to the commencement of the tax sale the parcel will be sold. The expense of mailing such notice shall be $1 for each notice sent and shall be an additional expense chargeable against the parcel.
(d) On the day named in the notice, the Comptroller shall commence the sale of the real estate at auction to the highest bidder and shall continue the sale from day to day until the whole thereof is sold, but the owner of any piece of land or representatives thereof may redeem the same at any time before the actual sale thereof by paying the tax or assessment for which it is to be sold with all penalties, additions, fees and expenses.
(e) It shall be the duty of the City Comptroller to bid in for the City all parcels of real estate at the sale which shall not be purchased by any other person at a rate sufficient to pay the taxes or assessments, with all penalties, additions, fees and expenses. The City Comptroller shall subsequently transfer the certificate of the same to any person who will pay the amounts so chargeable thereon, plus an assignment fee of $100. The assignee shall be entitled to a deed of the real estate, which shall become absolute in the same manner and on the performance of like conditions as if the assignee had purchased at the sale, unless the real estate is redeemed as provided in this division.
(f) The sale shall be made by the Comptroller on or before March 31 of the tax year for which the tax or assessment is not paid or at such other times that the Common Council may direct by ordinance.
(g) Where in the opinion of the corporation counsel it is impracticable to collect the taxes by personal action, the corporation shall so inform the Comptroller, and the Comptroller shall advertise and sell the property at the next tax sale. For the purpose of charging points, ownership of property shall be determined as such ownership appears on the City assessment rolls.
Sec. 8.032. Payment of bid price, delivery of certificates; record of certificates, deeds, assignments; rights of purchaser.
[1964 Charter Laws, § 14-25; N.Y. Laws 1923, ch. 658, art. V, § 6; L.L. No. 4-1987, § 5(b)(1)]
(a) The purchaser at a sale conducted under the provisions of this division shall pay the amount of the respective bid to the Comptroller within 48 hours after the sale, and thereupon the Comptroller shall execute and deliver to the purchaser, including the City, a certificate in writing which shall contain a description of the real estate purchased, the amount paid therefor, the date of sale, and that the same was sold for unpaid City taxes and assessments or unpaid county taxes as may be. A duplicate of the certificate shall be filed in the office of the City Comptroller. The Comptroller shall keep a record of all certificates and deeds so executed and a record of assignments of certificates.
(b) The purchaser or the legal representative or assigns thereof may, upon receiving a certificate, lawfully hold and enjoy for such person's own proper use and benefit, and the use and benefit of such person's heirs and assigns, forever, the real estate described in the certificate, unless the same is redeemed as provided in this division. Such person and the heirs and assigns thereof may at any time after the time prescribed in Section 8.033 for the redemption of the premises has expired and the notice provided for in such section has been given if the premises have not been redeemed, obtain actual possession of the premises by an action at law or by causing the occupant of such real estate to be removed therefrom and the possession thereof to be delivered to such person in the same manner and by the same proceedings, by and before the same officers as in the case of a tenant holding over after the expiration of term, without permission of the landlord.
§ 8.033. Redemption of lands.
[1964 Charter Laws, § 14-26; N.Y. Laws 1862, ch. 18, § 56; N.Y. Laws 1901, ch. 577, § 2; N.Y. Laws 1909, ch. 111, § 1; L.L. No. 4-1987, § 5(b)(1); L.L. No. 7-1990, § 1; L.L. No. 1-1992, § 2, 7-1-1992]
(a) The owner of or any person interested in or having a lien upon any real estate sold for taxes or assessments may redeem the same at any time within 15 months after the day of such sale, by paying to the Comptroller for the use of the purchaser upon such sale, his heirs and assigns the sum mentioned in the certificate given to him and the interest on the amount of tax, additions, fees, interest and expenses at the rate of 12% to be computed from the date of such certificate.
(b) After the expiration of six months from the date of the sale, notice shall be given by the purchaser of any real estate sold for taxes or assessments or by his heirs, representatives or assigns, to the occupant, owner in fee or registered agent of the owner or mortgagee, judgment creditor or other person having a lien on such real estate on record in the office of the County Clerk; except that it shall not be necessary to serve such notice upon the City of Utica or the County of Oneida, or the holders of county tax sale certificate. Such notice shall be either written or partly written and partly printed, and shall state briefly the lot or parcel of land to be redeemed, the amount due at the time of sale, the amount for which the property was sold, the expense of making searches thereon, the last day of redemption of any such real estate and the office or place and hour when and where the money for such redemption can be paid, which office or place of business shall be in the City of Utica and which hours shall be between 10:00 in the forenoon and 3:00 in the afternoon. The last day of redemption to be specified in said notice shall be not less than three months from the day of service of the same, nor prior to 12 months from the date of such sale.
(c) Such notice shall be sent by first class mail to the name and address of the owner as shown on the current assessment roll, to the name and address of any other person having a lien or interest of record in such real estate as shown on the record in the County Clerk's office evidencing such lien or interest. Additional notices shall be sent addressed to "occupant" at the parcel address. In addition, the Comptroller shall, commencing not less than 14 days prior to the mailing of said notice, cause publication of a notice to be made once in each of three nonconsecutive weeks in the newspaper designated for publication of public notices for the City of Utica. Such notice shall contain a list of the lands in the City sold for nonpayment of taxes and not redeemed, specifying particularly every parcel unredeemed, the name of the owner thereof as it appears on the current assessment roll, the amount necessary to redeem the same computed to the last day upon which redemption can be made and a statement that unless such lands are redeemed on or before such day they will be conveyed to the purchaser. The expense of publishing such notice shall be apportioned among the several parcels included therein. The expense of mailing such notice is hereby determined to be $1 for each and every notice sent and it shall, together with the expense of publishing the notice, be added to and become part of the amount required to be paid for redemption of such real estate. Such notice with the proof of service thereof shall be exhibited to the Comptroller prior to his issuing a conveyance of such real estate, and the proof of service of such notice shall be filed with such conveyance.
(d) It shall be the duty of the Comptroller whenever any parcel of land shall be struck off to the City, to seasonably procure the necessary searches to enable the City to perfect its title to such lands, and he shall, in his annual estimate for his department, include a sufficient sum to enable him to carry the same into effect. The sums so paid by such purchaser, his heirs, representatives, assigns, including the City, for searches, shall be deemed an expense and shall be added to the amount required to be paid for redemption of such real estate.
§ 8.034. Search to perfect notice; cost of search; duty of Comptroller to obtain search.
[1964 Charter Laws, § 14-27; N.Y. Laws 1923, ch. 658, art. V, § 7; L.L. No. 2-1940, § 1; L.L. No. 5-1978, § 2; L.L. No. 4-1987, § 5(b)(1)]
Any purchaser of any lot, pursuant to the provisions of this division or the heirs, representatives or assigns purchaser, may obtain from any person legally authorized to make foreclosure or partition searches a full and complete search of the property, setting out in full the facts shown on the records of the County Clerk necessary to enable the purchaser to serve the notice required by the provisions of this division. The purchaser shall be entitled to the cost of such search at whatever reasonable rate may be charged by the person performing the search. It shall be the duty of the City Comptroller whenever any parcel of land is struck off to the City to seasonably procure from any person, legally authorized to make foreclosure or partition searches the necessary searches to enable the City to perfect its title to the lands. There shall be included in annual estimate for the City Comptroller's office a sum sufficient to pay for such searches.
§ 8.035. Owner of certificate of sale of unredeemed land to apply for conveyance; time for application.
[1964 Charter Laws, § 14-28; N.Y. Laws 1938, ch. 399, § 1; L.L. No. 4-1987, § 5(b)(1)]
The owner of any certificate for the sale of land sold by the City Comptroller for taxes and not redeemed, except the state, the county and City and the purchaser at the tax sale who is the owner with a duly recorded title of the land sold, must make application in writing to the City Comptroller for a conveyance of the land described in the certificate within four years after the expiration of one year from the last day of the sale. If application for a conveyance is not made as provided in this section the certificate shall become void, and no claim may be maintained under the purchase.
§ 8.036. Conveyance of unredeemed land; effect; recordation.
[1964 Charter Laws, § 11-29; N.Y. Laws 1923, ch. 658, art. V, § 8; L.L. No. 4-1987, § 5(b)(1)]
(a) If real estate or any part thereof is not redeemed as provided in this division, the Comptroller shall execute, acknowledge and deliver to the purchaser under the provisions of this division, including the City, or the heirs, successors or assigns or the purchaser, a conveyance of the real estate so sold and not redeemed, which conveyance shall vest in the grantee an absolute estate in fee simple, subject to all claims which the City, county or state may have thereon for taxes or other liens or incumbrances. The Comptroller shall be entitled to receive from each grantee, for the use of the City, the sum of $2 for preparing the conveyance. Each conveyance shall be attested by the City Clerk and the seal of the City attached thereto, and when so executed shall be presumptive evidence that the sale and all proceedings prior thereto, from and including the assessment of the lands sold, and that all notices required by law for the redemption thereof, were regular and in accordance with the provisions of law relating thereto. After one year from the date of the conveyance, such presumption shall be conclusive. The Comptroller may receive evidence of the loss or wrongful detention of any certificate, and on satisfactory proof of the fact may execute and deliver a conveyance to such person as may appear to be the rightful owner of such certificate. Every conveyance executed under the provisions of this division may be recorded in the same manner and with like effect as a conveyance of real estate properly acknowledged or proven.
§ 8.037. Irregularities, errors in tax, assessment, or proceedings for collection; reimbursement of purchaser; reassessment of property.
[1964 Charter Laws, § 14-31; N.Y. Laws 1923, ch. 658, art. V, § 10]
Whenever any purchaser under a sale held pursuant to the provisions of this division or the heirs, representatives or assigns of such a person is unable to recover or retain possession of the real estate due to an irregularity or error in the assessment or levy of a tax or assessment, or in any proceedings for the collection of any tax or assessment, the Common Council shall reimburse the person in an amount equal to the purchase money so paid with interest from the time of payment, at the rate of 6%, the amount thereof to be presented and audited as other City charges. Thereupon the Common Council shall order a reassessment of any amount or sum so paid. The reassessment shall be made in the same manner as the original assessment should have been made, and shall have the same force and effect as if the assessment had originally been properly made. In all cases where the Common Council has the power to order a local improvement, and the improvement, or the assessment therefor is finally declared void by reason of any irregularities or defects in the proceeding brought to determine the legality of same, the Common Council may pass an ordinance designating the improvement so made, the whole expense thereof and the part or portion of territory benefited thereby, and cause the expense to be assessed in the same manner as are other local assessments. Such action shall have the same validity and binding force as if the same had originally been properly done.
§ 8.038. Redemption of lands sold to City; redemption by mortgagee or lienholder.
[1964 Charter Laws, § 14-34; N.Y. Laws 1923, ch. 658, art. V, § 13]
The Common Council shall not, except by unanimous vote, allow owners or others interested in lands sold to the City for nonpayment of taxes or assessments, to redeem the same, unless there is paid to the City the amount for which the sale shall have been made, and all accrued interest thereon and the expenses properly charged thereon. If any person having a lien by mortgage, judgment or otherwise, upon lands sold for taxes or assessments, redeems the same from the sale, the person may add the amount paid to redeem to the mortgage, judgment or lien, and enforce it with interest as part thereof.
§ 8.039. Procedure for sale of land acquired by City for unpaid taxes.
[1964 Charter Laws, § 14-39; L.L. No. 7-1978, §§ 2—5; L.L. No. 4-1987, § 5(b)(1); L.L. No. 4-1990, § 1; L.L. No. 1-1997, § 1; L.L. No. 1-2003, § 2]
(a) In this section "enforcement officer" means the director of real estate of the City or if there is no director of real estate, the person designated by the Mayor to act pursuant to the provisions of this section.
(b) Where title to property has vested in the City by deed pursuant to acquisition thereof for unpaid taxes or liens due the City, the property shall be sold either by public or private sale by the enforcement officer. Except as otherwise provided by law, no such sale shall be made to any person who was the record owner of any property at the time the City acquired the property for unpaid taxes for a period of five years from the date of the acquisition, but this restriction does not apply where the purchaser is a not-for-profit organization engaged in a program for the rehabilitation of such properties and the property is to be used in such program to provide housing for low income persons. No sale shall become final until approved by the Common Council.
(c) As a prerequisite to the sale of the property, the City Comptroller shall, within 10 days from the end of the redemption period as provided by law, provide the Common Council and the enforcement officer with a list of each and every property so acquired by the City with the pertinent data thereof from the tax rolls.
(d) The enforcement officer shall not dispose of any property acquired for unpaid taxes by private sale until such property has been offered at least once by public auction. For those properties that have not been offered by public auction, the public auction shall be held within 30 days from the date the list was forwarded as provided in Subsection (c) of this section. Any bid at any public auction shall be subject to the approval of the board of estimate and apportionment and the Common Council.
(e) The enforcement officer shall conduct a public sale by giving notice thereof in the official newspaper at least once per week for two consecutive weeks, the last notice to be not less than three days prior to the date set for the public auction. The notice shall provide a list of the properties for sale and state that the properties shall be sold on an "as is" basis by quit-claim deed, subject to the rights of any occupants thereof, subject to real estate taxes that become due from the date of such sale, and that no such sale shall be made to any person who was the record owner of any property at the time the City acquired title to such property for unpaid taxes for a period of five years from the date of such acquisition, and that the sale will be subject to the approval of the board of estimate and apportionment and the Common Council. The notice shall further provide other terms such as amount and type of deposit, as may be determined by the person conducting the sale to be usual and proper. The board of estimate and apportionment shall submit all approved offers to the Common Council within 10 days of the auction. The Common Council shall act thereupon as provided in this section. Any offers not so submitted to the Common Council by the board of estimate and apportionment shall be considered rejected by the board and in such case the deposit shall be returned to the bidder by the Comptroller. If any bid is rejected, the enforcement officer may accept private offers for private sale or conduct additional public sales if the interests of the City are served thereby.
(f) The enforcement officer shall conduct a private sale by negotiating when possible with prospective purchasers and securing a purchase offer in writing on a form approved by the corporation counsel and a deposit in full for the subject property. The enforcement officer shall forward the deposit to the City Comptroller and shall complete an informational form approved by the Common Council which shall indicate pertinent data regarding such property, and comments from interested departments or bureaus concerning the subject property. The enforcement officer shall submit the offer and completed informational form to the Common Council within seven days from the receipt of the written offer. The Common Council shall act thereon as provided in this section.
(g) The Common Council shall act upon any sale by legislative act within 30 days of receipt of a bid or offer on real property acquired for unpaid taxes. If an ordinance is not passed or rejected within such 30 days, the offer shall be construed as a rejection and the City Treasurer shall return the deposit to the bidder or the prospective purchaser without any interest.
(h) With respect to sales of residential properties acquired for nonpayment of taxes which are the subject of competing offers, sales may be made to persons not submitting the highest offer in the following situations:
(1) Persons desiring to buy such property should be asked whether they are willing to be domiciled in the property, for at least one year and to give assurances of such under penalty of reverter to the City, or under other such penalties deemed acceptable to the corporation counsel
(2) Where such persons give assurances of being so domiciled in the property, a sale to such a person may be approved even where another person (who is not willing to give such assurances) may offer a higher price for the property; however, where two or more persons submit such assurances, such sale shall be made to the person submitting the higher offer.
(3) A sale in these circumstances for less than the highest offer may not be made:
(a) If the proposed purchaser's ability to repair, maintain and pay taxes associated with the property is not reasonably established;
(b) Where the offer does not meet the City's estimate of fair market value; or
(c) Where the terms and conditions of the sale are not met.
(4) This subsection is not intended to confer any rights, legal or equitable, on any person, and failure to comply with this subsection, or any of its terms, shall not be a basis to set aside any deed or to fix liability on the City or any other person.
(5) During the time that an application under this subsection is pending, the time limits provided in Subsection (g) of this section shall be tolled.
(i) In addition to the required deposit, all purchase offers shall be accompanied by a non-refundable processing fee in the amount of $20.

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Editor's Note: This local law also repealed former Sec. 8.031, Notice; conduct of sale; purchase by City; time of sale; exclusions from sale, added 3-1-2006 by L.L. No. 1-2006. Local Law No. 4-2013 also provided that it shall be operative for all transactions made after its adoption.