[HISTORY: Adopted by the Rochester City Council
7-13-1993 by Ord. No. 93-241. Amendments noted where applicable.]
The acquisition of real property by the City
of Rochester, through any means other than in-rem foreclosure, is
a function of the Division of Real Estate. Acquisitions require the
approval of City Council and are subject to the following guidelines:
A.
The Director of Real Estate shall negotiate the purchase
of real property for municipal purposes. The appraised value of the
property, as determined by a professional independent appraisal, shall
serve as the basis for a settlement through negotiation or condemnation.
Easements (both permanent and temporary) and licenses shall also be
acquired in accordance with these procedures.
B.
The Director of Real Estate may accept a donation
of real estate when it is deemed by the Commissioner of Neighborhood
and Business Development to be in the best interest of the City.
[Amended 6-16-2009 by Ord. No. 2009-179]
C.
Under federal programs, the Director of Real Estate
may acquire property using funds provided by the federal government.
D.
Under the Blight Program, privately owned properties
that are vacant and have a blighting effect on the surrounding neighborhood
may be acquired through negotiation or condemnation, after efforts
to work with the owner to achieve code compliance have failed. The
value of the property, as established by a professional independent
appraisal, shall serve as the basis for settlement through negotiation
or condemnation.
A.
The Director of Real Estate is authorized to lease
private property when needed for municipal purposes. At the request
of a City department, the Division of Real Estate will recommend for
consideration various sites that are available for lease. After selection
of a site by the department, the Director of Real Estate shall negotiate
lease terms and enter into a rental agreement, subject to approval
by City Council.
B.
The Director of Real Estate may, with approval of
the Commissioner of Neighborhood and Business Development, enter into
a rental agreement for a period of less than one year, on a month-to-month
basis.
[Amended 5-16-2006 by Ord. No. 2006-94; 6-16-2009 by Ord. No. 2009-179]
When applicable, the Division of Real Estate
shall administer relocation programs to provide relocation assistance
to individuals and businesses that are displaced through acquisition
of property by the City for municipal use.
Real property owned by the City which has been
acquired through tax foreclosure proceedings or other means and is
no longer needed for municipal purposes may be sold by the Director
of Real Estate, upon approval by City Council, through any method
authorized by statute, local law or ordinance.
All sales of City-owned real property at public
auction shall be made by the Director of Real Estate or his or her
representative after notice of the sale has been published at least
once in an official newspaper of the City, subject to the approval
by City Council of the sale price and purchaser. Such sales shall
also be subject to the following terms and conditions:
A.
Deposits.
(1)
The required deposit on an auctioned structure shall
be $1,000 or 25% of the purchase price, whichever is greater, and
the in-lieu of tax payment which will cover a time period of approximately
12 months. At the time of the auction, the high bidder for a structured
property must secure the bid by immediately depositing with the City
the amount of $1,000, or a deposit deemed appropriate by the Director
of Real Estate, payable only in cash or cashier's check. In the event
that the total of the purchase price and in-lieu-of-tax payment is
less than $1,000, the purchaser shall be required to pay the actual
total of these two figures at the time of the auction.
[Amended 5-16-2006 by Ord. No. 2006-94]
(2)
The required deposit on an auctioned vacant lot shall
be $50, payable only in cash or cashier's check.
[Amended 5-16-2006 by Ord. No. 2006-94]
(3)
The amount of the minimum bids and deposits collected
at the time of sale may be changed at the discretion of the Director
of Real Estate due to special circumstances of the property.
B.
Within a time period established by the Director of
Real Estate, any remaining balance of the twenty-five-percent deposit
and an in-lieu-of-tax payment covering a time period of approximately
12 months shall be delivered to the Division of Real Estate. At this
time, the high bidder for a structured property must also apply in
the Permit Office for a certificate of occupancy. If the high bidder
misses the deadline for payment of the twenty-five-percent deposit,
the high bidder shall forfeit the initial amount deposited to secure
the bid to the City as liquidated damages. The Division of Real Estate
shall then contact the second high bidder. Within 30 days of the auction,
the high bidder for a vacant lot must submit a written development
proposal to the Director of Real Estate. When it is deemed appropriate
by the Director of Real Estate, high bidders for selected structures
may also be required to submit a written development proposal within
30 days of the auction.
C.
After approval by City Council, the successful bidder
must conditionally close with the Law Department in a timely manner.
At the conditional closing, the purchaser shall be required to deposit
the balance of the purchase price with the City. From the date of
conditional closing, the purchaser shall have by contract a specified
time period to repair all building code violations cited by the Bureau
of Buildings and Zoning, or complete construction of an improvement
on the formerly vacant lot as signified by the issuance of a certificate
of occupancy, or meet any other applicable condition imposed by the
City. Extensions may be granted, in writing, by the Division of Real
Estate. In such cases, the successful bidder must pay to the City
additional in-lieu-of-tax payments and any other applicable City charges.
In lieu of conditional closing, the Director of Real Estate may provide
for title to be passed through a reverter deed which permits the City
to retake title in the event that the purchaser does not comply with
conditions of the sale. The use of such reverter deeds shall be upon
terms and conditions, including financial guaranties of rehabilitation,
as the Director of Real Estate shall establish.
[Amended 5-16-2006 by Ord. No. 2006-94; 6-20-2017 by Ord. No. 2017-170]
D.
After notification by the Bureau of Buildings and
Zoning that a certificate of occupancy has been issued, or that other
applicable City-imposed conditions have been met, the Division of
Real Estate shall notify the Law Department to record the deed.
[Amended 5-16-2006 by Ord. No. 2006-94; 6-20-2017 by Ord. No. 2017-170]
E.
The City shall provide only a title report for parcels
of real property sold at public auction. If the title to any portion
of a property is not insurable, the purchaser or the City shall have
the right to cancel the contract. In the event of such cancellation,
by either party, any money deposited with the City shall be returned
to the purchaser and there shall be no further liability on the part
of either party. Responsibility for obtaining title insurance or an
abstract shall be with the purchaser.
F.
All conveyances shall be by quitclaim deed and shall
be executed on behalf of the City by the Mayor. The Corporation Counsel
is hereby authorized, when, in his or her opinion, the interest of
the City will be promoted thereby, to procure title insurance for
any property sold at public auction, and the cost of such title insurance
may be deducted from the deposit payment made for such property.
[Amended 5-16-2006 by Ord. No. 2006-94]
G.
The purchaser shall pay closing costs as specified
in the purchase contract, which shall include but are not limited
to the recording fee, the state transfer tax, the title insurance
premium and filing fee for Form TP-584.
H.
Real property sold at public auction shall be sold
free and clear of any liens for City taxes or other City charges.
A.
Pursuant to the provisions of § 5-28 of the Charter of the City of Rochester, parcels of real property and the rights and easements therein may be sold by the Director of Real Estate by negotiated sale and without competitive bid, on such terms, prices and conditions as shall be approved by the Council of the City of Rochester.
B.
The sale price for real property sold by negotiated
sale shall be established by a professional independent appraisal.
Exceptions may be made if the Director of Real Estate estimates that
the value of the real property is $1,000 or less or the City has independently
established values for similar sales on file, which may be utilized
by the Director of Real Estate as comparables to establish the value
of real property. In such cases, the sale price shall be established
by a City staff appraisal. Exceptions may also be made for redemptions
by former owners of properties lost through tax foreclosure and properties
which do not receive bids at public auction, excluding owner-occupant
auctions and special sales, which may be offered by the Division of
Real Estate at a price established by the Director of Real Estate.
[Amended 7-23-2002 by Ord. No. 2002-233]
C.
Purchasers of real property sold through negotiated
sale must pay the City 25% of the purchase price in cash or cashier's
check at the time of the submission of an offer to purchase, as a
deposit payment to become part of the purchase price if the City Council
approves the sale. Such deposit payment shall be returned to the purchaser
if the offer is not accepted. Such deposit may be waived in the case
of City-sponsored housing development projects.
[Amended 5-16-2006 by Ord. No. 2006-94]
E.
The Director of Real Estate may pay brokerage commissions
for the disposal of real property by negotiated sale, subject to guidelines
adopted by the City Council.
F.
Nothing herein contained shall be construed as preventing
the sale of any real property acquired by the City in tax foreclosure
proceedings, and rights and easements therein, by public sale pursuant
to law.
[Amended 7-23-2002 by Ord. No. 2002-233]
The Director of Real Estate may sell parcels
of real property to owner-occupants through various owner-occupant
programs, including but not limited to the owner-occupant lottery,
the owner-occupant auction and the Tenant Ownership Program. Owner-occupant
purchasers shall not own other residential property and must meet
the income guidelines established by the Director of Real Estate.
The sale price for real property sold at an owner-occupant lottery
shall be $1. The sale price for real property sold at an owner-occupant
auction shall be established through an open competitive bidding process.
The sale price for real property sold through the Tenant Ownership
Program shall be established by a professional independent appraisal.
All owner-occupant purchasers shall occupy the purchased property
after the date of issuance of a certificate of occupancy for a minimum
period of time as established by the Director of Real Estate, provided
that the minimum period shall be not less than three years if no City
funding is used in the purchase and not less than five years if any
City funding is used. Failure to comply with the terms and conditions
of the sale agreements shall result in forfeiture of the deposit fee,
and the purchaser shall be prohibited from purchasing other City property
for a term of three years. Processing of owner-occupant sales shall
proceed in the same manner as with a sale by public auction.
A.
Real property may be sold through a request for proposal
sale at an auction or at a special sale when:
(1)
The legal use of a property is different from the
actual use;
(2)
The rehabilitation cost is excessive to the average
purchaser, and the City wishes to screen purchasers regarding the
cost estimates and funding for the project;
(3)
The parcel being sold is vacant land over 10,000 square
feet in size, where a proposal is required in order to ensure that
the property is to be developed in compliance with City codes and
that the purchaser has the ability to carry the proposal through to
completion;
(4)
The unique development of a property is anticipated;
or
(5)
The Director of Real Estate deems the type of property
sale to be in the best interest of the City.
B.
The purchase price of a parcel sold at a request for proposal sale shall be established by a professional independent appraisal or by the Director of Real Estate in accordance with § 21-6B.
C.
A purchaser in a request for proposal sale shall submit
a proposal plan to the Division of Real Estate. The plan must include
a description of the proposed reuse of the property, a timetable for
complete rehabilitation or construction work to be done, a description
of all work to be done, cost estimates for proposed work and verifiable
sources of finances to complete the project. The purchaser may include
any required contingencies such as bank financing, zoning or planning
changes which may be required. The proposal plan shall be reviewed
by the Commissioner of Neighborhood and Business Development and his
or her staff, as well as other appropriate departments and bureaus.
If the plan is disapproved, the purchaser's deposit shall be refunded.
If the plan is approved, the sale shall be processed in the same manner
as a sale by public auction.
[Amended 6-16-2009 by Ord. No. 2009-179]
A.
The Director of Real Estate may sell a parcel of real
property by land contract to a residential tenant, commercial tenant
or industrial tenant or at public sale. The sale price for real property
sold through a land contract sale shall be established by a professional
independent appraisal, unless the price is established at public auction.
The Bureau of Property Conservation and Inspection Services shall
inspect all properties sold through land contract and provide the
purchaser with a list of code violations. The purchaser must occupy
the property during the term of the land contract. A monthly payment
schedule shall be established which provides for equal monthly installments
of principal and interest, amortized for a period not to exceed 15
years. Such payment schedule shall be in accordance with rules and
regulations established by the Director of Real Estate and shall include
a monthly payment to cover estimated future City taxes, embellishments
and water and pure waters charges during the term of the land contract
agreement. Upon recording of the deed to the property in the purchaser's
name, the purchaser shall become directly responsible for payment
of such charges. Nonpayment of a monthly payment within 30 days of
the billing date constitutes default and subjects a land contract
to cancellation.
B.
A residential tenant must deposit 10% of the purchase price with the Division of Real Estate upon signing a land contract agreement. A commercial or industrial tenant must deposit 25% of the purchase price upon signing a land contract agreement. Purchasers at public auction must follow the procedures set forth in § 21-5 of the Municipal Code. Processing of such sale shall proceed in the manner set forth for the sale of real property at public auction. A land contract purchaser shall have nine months from the execution of the land contract agreement to complete rehabilitation of the property and eliminate code violations cited by the Bureau of Buildings and Zoning. When the last payment is made under the land contract agreement, the deed shall be recorded in the purchaser's name. Until the deed is filed, the City shall retain the right to periodically inspect the property to ensure property code compliance.
[Amended 6-20-2017 by Ord. No. 2017-170]
A.
A conveyance of a property to the City through tax
foreclosure may be canceled, by court order, upon application of the
Corporation Counsel, where deemed to be in the City's best interest.
Such application shall be discretionary on the part of the Corporation
Counsel, after consultation with other affected departments, and shall
require at least that the taxes and other charges due the City prior
to the foreclosure be paid. Other conditions may also be imposed.
B.
Former owners shall not have an absolute right to repurchase a property taken through county tax foreclosure proceedings and deeded to the City. The former owner may repurchase said property only at the discretion of the Director of Real Estate. Where sale of such a foreclosed property to the former owner is deemed to be in the City’s best interests by the Director of Real Estate, the sale price shall consist of all City tax arrears, delinquent water bills, pure waters charges previously paid by the City and any other City charges, interest to the date of payment, a ten-percent penalty, the cost of a title report and all current taxes. The former owner shall also pay all current county taxes and charges and all county taxes and charges which had been canceled through the foreclosure proceedings. The Director of Real Estate may establish rules and regulations governing the eligibility of the various categories of former owners and governing the time period in which they may elect to repurchase their former property. Former owners shall be screened in accordance with § 21-16 of the Municipal Code. Former owners may also be disapproved for repurchase due to previous noncompliance with City codes, criminal activity or nuisance points on a parcel currently or formerly owned by the former owner, default in a demolition hearing, or default on a City grant or loan agreement. Former owners who are occupants of a building shall be required to execute a standard City rental agreement. If the sale is not completed, the City may deduct any back rent owed from deposits made by the former owner as part of the purchase price. The former owner shall be required to obtain a certificate of occupancy within a certain time after City Council approval of the sale, as established by the Director of Real Estate. Title shall transfer to the former owner upon obtaining the certificate of occupancy. Any liens against a property that had been canceled as a result of the foreclosure shall be reinstated upon transfer of title to the former owner.
[1]
Editor's Note: This ordinance also repealed
former § 21-10, Sales to former owners, as amended.
The Director of Real Estate may sell real property
to tax-exempt organizations in accordance with guidelines adopted
by City Council.
The Director of Real Estate may sell buildable
parcels of vacant land by request for proposal sale, public auction
or negotiated sale, in accordance with guidelines adopted by City
Council. Further, the Director of Real Estate may sell unbuildable
residential vacant parcels of real estate to adjacent property owners
for $1 each. The purchaser shall, in addition to the purchase price
of $1 of the unbuildable parcel, pay the current Monroe County recording
fee. The purchaser shall combine the unbuildable parcel with the adjacent
private property to form one parcel with one tax account number. In
order to effect this purpose, the Mayor is authorized to make all
necessary corrections in the names of the owners of the privately
owned property approved by City Council to assure that the sales are
made to adjacent owners.
[Amended 5-16-2006 by Ord. No. 2006-94]
Rochester Urban Renewal property shall be sold
in accordance with New York State law. The sale must be approved by
the Rochester Urban Renewal Agency, and its action affirmed by City
Council. The procedures for submission and selection of development
proposals shall be the same as those established for the disposition
of City-owned real estate.
The Division of Real Estate may participate
in federally sponsored affordable housing programs as they become
available.
A.
The Mayor may cancel sales of real property which
have been approved by City Council when the purchaser requests cancellation
or when the purchaser fails to comply with the terms and conditions
of the purchase agreement.
B.
Cancellation shall be effective only after 30 days'
notice has been given to the City Council through an official communication,
followed by written notice from the Director of Real Estate to the
purchaser.
C.
For cancellations processed pursuant to this section, the City shall retain all deposits and in-lieu-of-tax payments as liquidated damages, except in those cases where the Corporation Counsel determines that the purchaser has a meritorious claim for the recovery of such deposits and in-lieu-of-tax payments. Proposed reimbursement of any such amount shall be communicated to the City Council in the notice required by Subsection B.
D.
City Council shall retain the authority to take legislative action regarding any sale to be canceled prior to the expiration of the 30 days' notice established in Subsection B.
E.
Purchasers who have real estate sales canceled as
a result of their failure to perform shall be barred from purchasing
additional City property for a period of three years. After such three-year
period, such purchasers may again be eligible to buy real property
from the City, provided that such purchasers shall be required to
place a double down payment for their first purchase at a public sale
after a cancellation.
A.
The City Council hereby deems it to be in the best
interest of the City to sell real property to purchasers who will
be responsible property owners, and to that end the Department of
Neighborhood and Business Development shall review City records to
determine whether or not potential purchasers have been the subject
of tax foreclosure proceedings, owe property taxes on other real property
within the City of Rochester, have been the subject of a cancellation
of sale by the City of Rochester or own other property within the
City of Rochester that is in violation of City codes.
[Amended 6-16-2009 by Ord. No. 2009-179]
B.
Purchasers who have engaged in fraudulent activity
in connection with the sale of a City-owned property, who have lost
real property through tax foreclosure proceedings within the previous
five years, who own property within the City of Rochester for which
taxes are not current, who have had a sale cancelled by the City of
Rochester within the previous three years, who have been held in contempt
of a court order for failure to abate code violations within the previous
five years or who have unsatisfied judgments in the Municipal Code
Violations Bureau within the previous five years shall be ineligible
to purchase property from the City. Purchasers who own property within
the City of Rochester that is in violation of City codes shall be
deemed ineligible to purchase property from the City unless the violation(s)
are on property that is part of construction, rehabilitation or development
projects, or is undergoing periodic certificate of occupancy renewal,
and it is established by the Department of Neighborhood and Business
Development that the purchaser is making satisfactory progress toward
the abatement of said violations. Where the purchaser is not an individual,
these provisions shall also apply to officers, principals and related
businesses or associations. Such provisions shall not apply to purchasers
of unbuildable vacant land.
[Amended 5-16-2006 by Ord. No. 2006-94; 1-16-2007 by Ord. No. 2007-4; 8-21-2012 by Ord. No. 2012-326]
The Director of Real Estate is hereby authorized
to promulgate rules and regulations governing the sale of real estate,
provided that such rules and regulations shall not be contrary to
any requirements established herein.
[Amended 7-12-1995 by Ord. No. 95-259; 6-16-2009 by Ord. No. 2009-179]
The Commissioner of Neighborhood and Business
Development through delegation to the Director of Real Estate is hereby
authorized to enter into temporary leases and license agreements,
for any term not longer than one year, on a month-to-month basis,
for real property owned by the City of Rochester and not currently
needed for municipal purposes. In addition, the Commissioner of Economic
Development is hereby authorized to grant temporary licenses for the
purpose of parking lot operations, revocable upon not more than 30
days' notice, for the use of real property owned by the City of Rochester
and not currently needed for municipal purposes. The Director of Real
Estate is authorized to evict from City property squatters, or tenants
who fail to abide by lease provisions.
When an easement over City-owned property is
necessary for public benefit, the Director of Real Estate is authorized
to enter into an easement agreement. The value of the easement shall
be established by a professional independent appraisal. Easements
may be granted to utility companies for $1 (payment waived) in instances
where the value of the City parcel is not diminished by the utility
easement or if a City action, such as road construction, created the
need for the utility easement.
[Amended 5-16-2006 by Ord. No. 2006-94]
Garden permits may be issued by the Director
of Real Estate for use of City-owned vacant lots by the public, for
gardening purposes. The permits are valid for a term of up to one
year and are renewable on an annual basis.
The Director of Real Estate may establish a
program to sell privately owned deteriorated structures in the City
by public auction. The Director of Real Estate shall establish rules
and regulations for said program, which shall have as its goal the
rehabilitation of deteriorated structures, reoccupation of vacant
structures and improving housing, neighborhood stability and vitality.
[Added 7-22-1997 by Ord. No. 97-299]
Only City employees acting in the performance
of their duties or persons in possession of written permission from
the City shall enter or remain in or about any vacant building owned
or leased by the City. Members of the Rochester Police Department
are hereby authorized to remove unauthorized persons and to commence
trespass, criminal trespass and/or burglary proceedings against such
unauthorized persons on behalf of the City.
[Added 9-25-2001 by Ord. No. 2001-39]
The Corporation Counsel is authorized to grant
and accept easements to resolve boundary line title issues, including
building encroachments between City-owned parcels and adjacent parcels,
and fence encroachments, of three feet or less in width. The Corporation
Counsel is further authorized to enter into boundary line agreements
and driveway agreements with the owners of parcels adjacent to City-owned
parcels. Consideration for said easements and agreements may be set
at $1 (payment waived).
[Added 5-16-2006 by Ord. No. 2006-93]
A.
The City Council deems it to be in the best interests
of the City and the public to at times lease City-owned real property
to responsible parties when doing so provides a benefit to the City
and its residents.
B.
Consistent with the provisions of § 20 of
the General City Law, the Director of Real Estate, subject to approval
by the City Council as set forth below, is authorized to lease City-owned
real property.
C.
Pursuant to § 5-29 of the City Charter, no ordinance approving a lease of City-owned real property for a period of one year or longer shall be authorized unless approved by the vote of 3/4 of all the members of the City Council. Leases with terms of one year or less shall be subject to the requirements of § 21-18.
D.
Any proposed lease with a term of more than one year
but no more than 10 years shall require Council approval that:
(1)
The term of the proposed lease is reasonable and necessary
in light of its intended purpose and the public will benefit throughout
the term of the lease;
(2)
If a lease contains options to renew that exceed 10
years, the City Council, by the vote of 3/4 of all the members of
the City Council, must approve said renewal or extension no more than
90 days and no less than 30 days prior to the expiration of the lease.
Conditions of any options to renew must be set forth in the proposed
lease;
(3)
In addition to customary provisions of default, the
proposed lease shall contain a clause providing that the lease will
terminate, at the City's option, upon the occurrence of defined "substantial
changes" in the use of the leasehold or performance of the lease by
the lessee. Enumerated examples of "substantial changes" shall be
set forth in each proposed lease, to avoid a material change in the
use and intent of the leasehold or the business to which the lease
relates;
(4)
The proposed lease provides for periodic reviews of
the use of the leasehold by the Director of Real Estate to determine
and ensure compliance on the part of the lessee.
E.
For proposed leases that exceed 10 years in duration,
or $50,000 in annual rent, the City Council shall be required, prior
to voting, to:
F.
No lease of City-owned real property may be transferred,
assigned, sublet or materially amended or modified except by approval
of City Council in the same manner provided by this section for a
new lease. This restriction shall be set forth in all leases subject
to this section.
