[Adopted 2-11-2019 by Res. No. 29-2019]
All conveyances authorized subsequent to February 12, 2019,
are subject to this updated plan as well as to the approval of the
Albany County Legislature.
The updated "Disposition Plan for Real Property Acquired by
Albany County Through the 'In Rem' Delinquent Tax Foreclosure Process,"
as filed with the Clerk of the County Legislature, is hereby approved
and adopted, replacing all prior disposition plans for tax-foreclosed
properties.
A.
Real Property Tax Law § 1166 provides that: "Whenever any
tax district shall become vested with the title to real property by
virtue of a foreclosure proceeding brought pursuant to the provisions
of this article, such tax district is hereby authorized to sell and
convey the real property so acquired, either with or without advertising
for bids, notwithstanding the provisions of any general, special or
local law."
B.
This section further provides that: "No such sale shall be effective
unless and until such sale has been approved and confirmed by a majority
vote of the governing body of the tax district . . ."
It is the intent, policy and plan of Albany County to sell and
convey all properties title to which has been acquired by it through
the "in rem" delinquent tax lien foreclosure process in accordance
with the following provisions, which it has determined in its sole
judgment and discretion will best effectuate the benefit to the community
that will result from such disposition.
The County will henceforth sell and convey all properties acquired
by it through the "in rem" delinquent tax lien foreclosure process
in the following preferential order, subject to the conditions thereunder
stated:
A.
Properties which will be discretionally conveyed by the County to
itself for its stated governmental purposes. The list of properties
acquired by the County through the "in rem" delinquent tax lien foreclosure
process proposed for sale and conveyance to the County shall first
be reviewed for conservation use purposes and received approval for
transfer from the Legislative Conservation and Improvement Committee.
Properties shall be listed based on lien year and locality. This review
will be undertaken by the staff of the County Department of Economic
Development, Conservation and Planning. Such list will also be forwarded
to the County Legislators for review. All such conveyances shall be
made for nominal consideration, payment of which shall be deemed to
have been waived.
B.
Properties which will be discretionally conveyed by the County back
to their immediate former owner(s) upon a showing of hardship. The
sale price for reacquisition of these properties shall be the amount
of their outstanding delinquent tax liability (inclusive of interest,
penalties and legal charges) prior to foreclosure and all current
taxes levied (inclusive of interest, penalties and legal charges)
prior to the date of reacquisition. The full amount of the sale price
and closing costs must be submitted to the County in escrow as a prerequisite
to its requesting approval of the County Legislature for the reacquisition
and will be refunded only in the event such approval is not granted.
The recipient of the property is required to close within 60 days
of certified legislation approving the reacquisition. The deed back
shall provide that any and all liens upon and other interests in the
property which were extinguished as the result of its foreclosure,
except to the extent they were subsequently reduced, discharged, satisfied
and/or otherwise terminated of record, upon the recording of said
deed shall be deemed reinstated and restored to the full extent they
existed at the time they were so extinguished.
C.
Properties which will be discretionally conveyed by the County to
individuals or entities who own abutting or adjacent parcels. The
sale price for these properties shall be the appraised value or an
amount equal to the extinguished tax liability. The recipient of the
property is required to close within 60 days of certified legislation
approving the conveyance.
D.
Properties which will be discretionally conveyed by the County to
other municipal corporations for use for a governmental purpose. The
amount to be paid for the property shall be its assessed value, outstanding
tax liability (inclusive of interest, penalties and legal charges)
prior to its foreclosure, or some other amount which reflects the
benefit to the community stemming from the proposed use of the property.
A deed provision requiring that the property be used for a stated
governmental purpose or open space preservation or conservation purpose
and providing that the County shall have a right of reacquisition
through reverter in the event the property is at any time not or no
longer being so used may be required.
E.
Properties which will be conveyed by the County to not-for-profit/nonprofit
entities for use for a public purpose. The amount to be paid for the
property shall be its assessed value, outstanding delinquent tax liability
(inclusive of interest, penalties and legal charges) prior to foreclosure,
or some other amount which reflects the benefit to the community stemming
from the proposed use of the property. A deed provision requiring
that the property be used for a stated public purpose and providing
the County shall have a right of reacquisition through reverter in
the event the property is at any time not or no longer being so used
may be required. Written notice to the local municipality(s) in which
the property is located shall be required no less than 30 days prior
to consideration by the County Legislature of such property transfer.
Proof of compliance with the aforementioned written notice requirement
shall be provided to the Legislature as a precondition to the Legislature's
consideration of any conveyance falling under this subsection.
F.
Properties which will be discretionally conveyed by the County to
individuals or entities for economic development purposes.
(1)
The amount to be paid for these properties shall be either its appraised
value or outstanding delinquent tax liability (inclusive of interest,
penalties and legal charges). A deed provision requiring a right of
reacquisition through reverter in the event the property is not or
no longer being so used may be required. Public notification of the
availability of the property proposed for private sale shall be made
through all appropriate means (newspaper, website, etc.) prior to
authorization of sale by the County Legislature. Written notice to
the local municipality(s) in which the property is located shall be
required no less than 30 days prior to consideration by the County
Legislature of such property transfer. Proof of compliance with the
aforementioned written notice requirement shall be provided to the
Legislature as a precondition to the Legislature's consideration of
any conveyance falling under this subsection. The recipient of the
property is required to close within 90 days of certified legislation
approving transfer.
(2)
If they have been withdrawn from foreclosure, these properties shall
be conditionally offered for sale via sealed bid for either their
appraised value, outstanding delinquent tax liability (inclusive of
interest, penalties and legal charges) prior to foreclosure, or an
amount which reflects the benefit to the community stemming from the
proposed use of the property with disclosure of the reasons for their
withdrawal. It shall be the bidder's responsibility to research all
information in the County's property file in this regard. Written
notice to the local municipality(s) in which the property is located
shall be required no less than 30 days prior to consideration by the
County Legislature of such property transfer. Proof of compliance
with the aforementioned written notice requirement shall be provided
to the Legislature as a precondition to the Legislature's consideration
of any conveyance falling under this subsection. Upon bid approval
by the County Legislature, the full amount of the sale price and closing
costs must be submitted to the County in escrow prior to and as a
prerequisite to the completion of the foreclosure process. A signed
statement by the bidder acknowledging receipt of full disclosure regarding
the condition of the property, insofar as known to the County, will
be required at that time. The County shall not be liable for any conditions
known or unknown on these properties, and the purchaser will be required
to execute a release, hold -harmless and indemnification agreement
in this regard at the closing of the sale. Deed title will be transferred
directly to the successful bidder pursuant to assignment without recourse.
G.
Properties which will be discretionally conveyed by the County to
the Albany County Land Bank Corporation.
(1)
The sale price for the conveyance of such properties shall be $1,
payment of which consideration shall be waived by the County. (The
Albany County Land Bank will be responsible for payment to the County
of budgeted revenues based on the current year's adopted budget. This
payment will be remitted to the County by October 1 of said calendar
year.)
(2)
The Land Bank is prohibited from conveying a property acquired from
Albany County back to the property's immediate former owner(s) for
less consideration than the amount of the delinquent taxes (inclusive
of interest, penalties and legal charges) owed on the property at
the time of its foreclosure. If the Land Bank wishes to sell a property
back to its immediate former owner(s) for less than the amount of
the delinquent taxes (inclusive of interest, penalties and legal charges)
owed on the property at the time of its foreclosure by the County,
the Land Bank must provide the County with a compelling reason for
doing so and obtain the prior written authorization of the County
Legislature in the form of a resolution in this regard. The deed back
shall provide that any and all liens upon and other interests in the
property which were extinguished as the result of its foreclosure
by the County, except to the extent they were subsequently reduced,
discharged, satisfied and/or otherwise terminated of record, shall
by deed provision be deemed reinstated and restored to the full extent
they existed at the time they were so extinguished. The foregoing
requirements shall be included in every deed from the County to the
Land Bank and provide that the County shall have a right of reacquisition
through reverter in the event these requirements are not met.
(3)
County employees and members of the Albany County Legislature who
are involved with the negotiation or preparation of the sale and closing
process of properties title to which has been acquired by the County
through the "in rem" delinquent tax lien foreclosure process, have
access to knowledge or information about a parcel conveyed by the
County to the Land Bank or about the present or proposed use of nearby
parcels through their County position, which knowledge or information
is not accessible to the general public, or who have the authority
to appoint employees who have any of the foregoing powers or access
to the foregoing information, are specifically precluded from purchasing
properties conveyed to the Land Bank by the County during and for
two years after the termination of their County employment.
(4)
Properties which have received EnergizeNY benefit loan financing
from the Energy Improvement Corporation for energy-efficiency or renewable
energy upgrades shall not be conveyed to the Albany County Land Bank
Corporation unless that loan, inclusive of interest, has been completely
repaid.
All County sales and conveyances of properties title to which
has been acquired by the County through the "in rem" delinquent tax
lien foreclosure process, including those to the Land Bank, are discretionary
and the County Executive and/or County Legislature may for any reason
reject any sale request. All such County property sales and conveyances,
including those to the Land Bank, are subject to such additional requirements
and/or conditions as the County Legislature may discretionarily choose
to impose in connection with them. All such County property sales
and conveyances, including those to the Land Bank, must be approved
by the County Legislature.
A.
The County will provide the necessary deeds, transfer tax statements
(TP584), and real property transfer reports (RP5217). The County will
pro-rate any current real property taxes which are owed on the property
as of the closing date.
B.
If the approved preferred buyer (including the Land Bank) fails to
close on a property sale within the required period of time, only
the County Legislature can grant an extension. There is no right to
an extension.
C.
If the approved preferred buyer fails to timely close on the property,
any deposit made will be forfeited and the approved buyer may be held
liable for any costs or expenses incurred by the County on resale
of the property.
County-owned surplus real property which was not acquired by
the "in rem" delinquent tax lien foreclosure process will continue
to be disposed of pursuant to provisions of County Local Law No. 2-1998,[1] which authorizes the County Executive to sell and convey
surplus real property owned by the County subject to County legislative
approval.
