Section 11-319. Sales of tax liens

a. A tax lien or tax liens on a property
  or any component of the amount thereof  may  be  sold  by  the  city  as
  authorized  by  subdivision b of this section, when such tax lien or tax
  liens shall have remained unpaid in whole  or  in  part  for  one  year,
  provided,  however, that a tax lien or tax liens on any class 1 property
  or on class 2 property that is a residential condominium or  residential
  cooperative, as such classes of property are defined in subdivision 1 of
  section  1802 of the real property tax law, may be sold by the city only
  when the real property tax component of such tax lien or tax liens shall
  have remained unpaid in whole or in part for three years or, in the case
  of abandoned class 1 property or abandoned class 2 property  that  is  a
  residential condominium or residential cooperative, for eighteen months,
  and  after  such  sale,  shall be transferred, in the manner provided by
  this chapter, and provided, further, however, that (i) the real property
  tax component of such  tax  lien  may  not  be  sold  pursuant  to  this
  subdivision  on  any  residential  real  property  in  class  1  that is
  receiving an exemption pursuant to section 11-245.3 or 11-245.4 of  this
  title,  or  where the owner of such residential real property in class 1
  has been allowed a credit pursuant to  subsection  (e)  of  section  six
  hundred  six  of  the tax law for the calendar year in which the date of
  the first publication, pursuant to subdivision a of  section  11-320  of
  this  chapter,  of  the  notice of sale, occurs or for the calendar year
  immediately preceding such date and  (ii)  the  sewer  rents  component,
  sewer surcharges component or water rents component of such tax lien may
  not  be  sold pursuant to this subdivision on any one family residential
  real property in class 1 or on any two or three family residential  real
  property  in  class 1 that is receiving an exemption pursuant to section
  11-245.3 or 11-245.4 of this title, or where the owner  of  any  two  or
  three  family  residential  real  property in class 1 has been allowed a
  credit pursuant to subsection (e) of section six hundred six of the  tax
  law  for  the  calendar year in which the date of the first publication,
  pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
  notice  of  sale,  occurs or for the calendar year immediately preceding
  such date. A tax lien or tax liens on any property classified as a class
  2 property, except a class 2 property that is a residential  condominium
  or  residential  cooperative,  or  class  3 property, as such classes of
  property are defined in subdivision  1  of  section  1802  of  the  real
  property  tax law, shall not be sold by the city unless such tax lien or
  tax liens include a real property tax component as of the  date  of  the
  first  publication,  pursuant to subdivision a of section 11-320 of this
  chapter, of the notice of sale. Notwithstanding any  provision  of  this
  subdivision  to the contrary, any such tax lien or tax liens that remain
  unpaid in whole or in part after such date may  be  sold  regardless  of
  whether  such  tax  lien  or  tax  liens  include  a  real  property tax
  component. A tax lien or tax liens on a property classified as a class 4
  property, as such class of property  is  defined  in  subdivision  1  of
  section 1802 of the real property tax law, shall not be sold by the city
  unless  such tax lien or tax liens include a real property tax component
  or sewer rents component or sewer surcharges component  or  water  rents
  component  as  of  the  date  of  the  first  publication,  pursuant  to
  subdivision a of section 11-320 of this chapter, of the notice of  sale,
  provided,  however, that any tax lien or tax liens that remain unpaid in
  whole or in part after such date may be sold regardless of whether  such
  tax lien or tax liens include a real property tax component, sewer rents
  component,  sewer  surcharges  component  or  water rents component. For
  purposes of this subdivision, the words "real property  tax"  shall  not
  include  an  assessment  or  charge  upon  property  imposed pursuant to
  section 25-411 of the administrative code. A sale of a tax lien  or  tax

  liens  shall  include,  in  addition  to  such  lien  or liens that have
  remained unpaid in whole or in part for one year, or, in the case of any
  class 1 property or class 2 property that is a  residential  condominium
  or residential cooperative, when the real property tax component of such
  lien  or  liens has remained unpaid in whole or in part for three years,
  any taxes, assessments, sewer rents, sewer surcharges, water rents,  any
  other  charges  that  are  made a lien subject to the provisions of this
  chapter, the costs of any advertisements and notices given  pursuant  to
  this  chapter,  any  other charges that are due and payable, a surcharge
  pursuant to section 11-332 of this chapter, and interest  and  penalties
  thereon  or  such component of the amount thereof as shall be determined
  by  the  commissioner  of  finance.  The  commissioner  of  finance  may
  promulgate  rules defining "abandoned" property, as such term is used in
  this subdivision.
    a-1. A subsequent tax lien or tax liens on a property or any component
  of the amount thereof may be sold by the city pursuant to this  chapter,
  provided, however, that notwithstanding any provision in this chapter to
  the  contrary,  such  tax  lien  or  tax liens may be sold regardless of
  whether such tax lien or tax liens have remained unpaid in whole  or  in
  part  for one year and, notwithstanding any provision in this chapter to
  the contrary, in the case of any class 1 property or  class  2  property
  that  is  a residential condominium or residential cooperative, such tax
  lien or tax liens may be sold if the real property tax component of such
  tax lien or tax liens has remained unpaid in whole or in  part  for  one
  year,  and  provided,  further,  however, that (i) the real property tax
  component of such tax lien may not be sold pursuant to this  subdivision
  on  any  residential  real  property  in  class  1  that is receiving an
  exemption pursuant to section 11-245.3 or 11-245.4  of  this  title,  or
  where  the  owner  of such residential real property in class 1 has been
  allowed a credit pursuant to subsection (e) of section six  hundred  six
  of  the  tax  law  for  the calendar year in which the date of the first
  publication, pursuant  to  subdivision  a  of  section  11-320  of  this
  chapter,  of  the  notice  of  sale,  occurs  or  for  the calendar year
  immediately preceding such date and  (ii)  the  sewer  rents  component,
  sewer surcharges component or water rents component of such tax lien may
  not  be  sold pursuant to this subdivision on any one family residential
  real property in class 1 or on any two or three family residential  real
  property  in  class 1 that is receiving an exemption pursuant to section
  11-245.3 or 11-245.4 of this title, or where the owner  of  any  two  or
  three  family  residential  real  property in class 1 has been allowed a
  credit pursuant to subsection (e) of section six hundred six of the  tax
  law  for  the  calendar year in which the date of the first publication,
  pursuant to subdivision a of section 11-320  of  this  chapter,  of  the
  notice  of  sale,  occurs or for the calendar year immediately preceding
  such date. For purposes of this subdivision, the  term  "subsequent  tax
  lien or tax liens" shall mean any tax lien or tax liens on property that
  become such on or after the date of sale of any tax lien or tax liens on
  such  property  that  have  been sold pursuant to this chapter, provided
  that the prior tax lien or tax liens remain unpaid as of the date of the
  first publication, pursuant to subdivision a of section 11-320  of  this
  chapter,  of the notice of sale of the subsequent tax lien or tax liens.
  A subsequent tax lien or tax liens on any property classified as a class
  2 property, except a class 2 property that is a residential  condominium
  or  residential  cooperative,  or  class  3 property, as such classes of
  property are defined in subdivision  1  of  section  1802  of  the  real
  property  tax law, shall not be sold by the city unless such tax lien or
  tax liens include a real property tax component as of the  date  of  the
  first  publication,  pursuant to subdivision a of section 11-320 of this

  chapter, of the notice of sale. Notwithstanding any  provision  of  this
  subdivision  to the contrary, any such tax lien or tax liens that remain
  unpaid in whole or in part after such date may  be  sold  regardless  of
  whether  such  tax  lien  or  tax  liens  include  a  real  property tax
  component. A subsequent tax lien or tax liens on a  property  classified
  as  a  class  4  property,  as  such  class  of  property  is defined in
  subdivision 1 of section 1802 of the real property tax law, shall not be
  sold by the city unless such tax  lien  or  tax  liens  include  a  real
  property  tax  component  or  sewer  rents component or sewer surcharges
  component or  water  rents  component  as  of  the  date  of  the  first
  publication,  pursuant  to  subdivision  a  of  section  11-320  of this
  chapter, of the notice of sale, provided, however, that any tax lien  or
  tax  liens that remain unpaid in whole or in part after such date may be
  sold regardless of whether such tax lien or tax  liens  include  a  real
  property   tax   component,  sewer  rents  component,  sewer  surcharges
  component or water rents component. For purposes  of  this  subdivision,
  the  words "real property tax" shall not include an assessment or charge
  upon property imposed pursuant to section 25-411 of  the  administrative
  code.  Nothing  in  this subdivision shall be deemed to limit the rights
  conferred by section 11-332 of this chapter on the holder of a tax  lien
  certificate with respect to a subsequent tax lien.
    a-2.  In  addition to any sale authorized pursuant to subdivision a or
  subdivision a-1 of this section and  notwithstanding  any  provision  of
  this  chapter to the contrary, beginning on December first, two thousand
  seven, the water rents, sewer rents and sewer surcharges  components  of
  any  tax  lien  on  any class of real property, as such real property is
  classified in subdivision one of section eighteen  hundred  two  of  the
  real property tax law, may be sold by the city pursuant to this chapter,
  where  such  water  rents,  sewer rents or sewer surcharges component of
  such tax lien, as of the date of  the  first  publication,  pursuant  to
  subdivision  a of section 11-320 of this chapter, of the notice of sale:
  (i) shall have remained unpaid in whole or in part  for  one  year,  and
  (ii)  equals  or  exceeds  the  sum  of  one thousand dollars; provided,
  however,  that  such  water  rents,  sewer  rents  or  sewer  surcharges
  component  of such tax lien may not be sold pursuant to this subdivision
  on any one family residential real property in class one or on  any  two
  or three family residential real property in class one that is receiving
  an  exemption pursuant to section 11-245.3 or 11-245.4 of this title, or
  where the owner of any two or three family residential real property  in
  class  one  has  been  allowed  a  credit  pursuant to subsection (e) of
  section six hundred six of the tax law for the calendar  year  in  which
  the  date of the first publication, pursuant to subdivision a of section
  11-320 of this chapter, of  the  notice  of  sale,  occurs  or  for  the
  calendar year immediately preceding such date. After such sale, any such
  water  rents, sewer rents or sewer surcharges component of such tax lien
  may be transferred in the manner provided by this chapter.
    a-3. In addition to any sale authorized pursuant to subdivision  a  or
  subdivision  a-1  of  this  section and notwithstanding any provision of
  this chapter to the contrary, beginning on December first, two  thousand
  seven, a subsequent tax lien on any class of real property, as such real
  property  is  classified  in subdivision one of section eighteen hundred
  two of the real property tax law, may be sold by the  city  pursuant  to
  this  chapter,  regardless  of  whether such subsequent tax lien, or any
  component of the amount thereof, shall have remained unpaid in whole  or
  in  part  for  one  year,  and regardless of whether such subsequent tax
  lien, or any component of the amount thereof, equals or exceeds the  sum
  of  one  thousand  dollars;  provided, however, that such subsequent tax
  lien may not be sold pursuant to this  subdivision  on  any  one  family

  residential  real  property  in  class one or on any two or three family
  residential real property in class one that is  receiving  an  exemption
  pursuant  to  section  11-245.3  or 11-245.4 of this title, or where the
  owner  of any two or three family residential real property in class one
  has been allowed a credit pursuant to  subsection  (e)  of  section  six
  hundred  six  of  the tax law for the calendar year in which the date of
  the first publication, pursuant to subdivision a of  section  11-320  of
  this  chapter,  of  the  notice of sale, occurs or for the calendar year
  immediately preceding such date. After such sale,  any  such  subsequent
  tax  lien, or any component of the amount thereof, may be transferred in
  the manner provided by this chapter. For purposes of  this  subdivision,
  the  term  "subsequent tax lien" shall mean the water rents, sewer rents
  or sewer surcharges component of any tax lien on property  that  becomes
  such  on  or  after  the date of sale of any water rents, sewer rents or
  sewer surcharges component of any tax lien on  such  property  that  has
  been  sold  pursuant  to  this chapter, provided that the prior tax lien
  remains unpaid as of the date of  the  first  publication,  pursuant  to
  subdivision  a  of section 11-320 of this chapter, of the notice of sale
  of the subsequent tax lien. Nothing in this subdivision shall be  deemed
  to  limit  the rights conferred by section 11-332 of this chapter on the
  holder of a tax lien certificate with respect to a subsequent tax lien.
    b. The commissioner of finance, on behalf of the city,  may  sell  tax
  liens,  either  individually,  in  combinations,  or  in  the aggregate,
  pursuant to the procedures provided herein. The commissioner of  finance
  shall  establish the terms and conditions of a sale of a tax lien or tax
  liens. Enactment of the local law that  added  this  sentence  shall  be
  deemed  to  constitute authorization by the council for the commissioner
  of finance to conduct a sale or sales of tax liens through and including
  December  thirty-first,  two  thousand  ten.  Subsequent   to   December
  thirty-first, two thousand ten, the city shall not have the authority to
  sell tax liens.
    1. (i) The commissioner of finance may, in his or her discretion, sell
  a  tax  lien or tax liens through a competitive sale. In addition to the
  advertisement and notice required to be  provided  pursuant  to  section
  11-320  of  this  chapter,  the  commissioner  of  finance or his or her
  designee shall cause to be published a notice of intention to sell a tax
  lien or tax liens through a competitive sale, which notice shall include
  the terms and conditions for such sale, the criteria by which bids shall
  be evaluated, and a request for any other information or documents  that
  the  commissioner of finance may require. Such notice shall be published
  in one newspaper of general circulation  in  the  city,  not  less  than
  fifteen  days  prior  to the date designated by the commissioner for the
  submission of bids.
    (ii) The commissioner of  finance  may,  in  his  or  her  discretion,
  establish  criteria  for  the eligibility of bidders pursuant to section
  11-321.1 of this chapter.
    (iii) The commissioner of finance may reject any or all bids,  or  may
  accept any combination of bids in a competitive sale.
    2. (i) The commissioner of finance may, in his or her discretion, sell
  a  tax  lien  or tax liens through a negotiated sale. In addition to the
  advertisement and notice required to be  provided  pursuant  to  section
  11-320  of  this  chapter,  the  commissioner  of  finance or his or her
  designee shall cause to be published a notice of intention to sell a tax
  lien or tax liens through a negotiated sale, which notice  shall  advise
  that  a request for statements of interest is available at the office of
  the department of finance, and which may require the submission  of  any
  information  or  documents  that  the  commissioner  deems  appropriate,
  provided, however, that if the negotiated sale is to a  trust  or  other

  entity  created  by  the  city  or in which the city has an ownership or
  residual interest, then the requirement that the notice  advise  that  a
  request  for  statements  of  interest is available at the office of the
  department of finance shall not apply. Such notice shall be published in
  one  newspaper of general circulation in the city, not less than fifteen
  days prior to the date designated by the commissioner for the receipt of
  statements of interest, or if the negotiated sale is to  such  trust  or
  other  entity, then such notice shall be published not less than fifteen
  days prior to the date of sale. For purposes of this  subparagraph,  the
  words "date of sale" shall have the same meaning provided in subdivision
  e of section 11-320 of this chapter.
    (ii)  The  commissioner  of finance may engage in a negotiated sale in
  accordance with criteria to be established pursuant to section  11-321.1
  of this chapter.
    (iii)  The  commissioner  of  finance  may execute a purchase and sale
  agreement and other necessary agreements with a designated purchaser  or
  purchasers to complete a negotiated sale.
    3.  The  commissioner of finance may establish a minimum price for the
  sale of tax liens that may be at a discount from or premium to the  lien
  amount.  Notwithstanding  the  preceding  sentence,  the commissioner of
  finance may not establish a minimum price for the sale of an  individual
  tax lien that is at a discount from the lien amount. The commissioner of
  finance  shall  sell  such  tax  liens  at a purchase price that, in the
  determination of such commissioner, is in  the  best  interests  of  the
  city.  The commissioner of finance, in his or her discretion, may accept
  cash or  cash  equivalent  in  immediately  available  funds,  or  other
  consideration acceptable to the commissioner, or any combination thereof
  in payment for a tax lien or tax liens.
    4.  The  amount  of  a  tax lien that is sold pursuant to this chapter
  shall be the unpaid amount of the lien as of the date of sale, including
  any interest and penalties thereon, any taxes, assessments, sewer rents,
  sewer surcharges, water rents, any other charges that are  made  a  lien
  subject   to   the   provisions  of  this  chapter,  the  costs  of  any
  advertisements and notices given pursuant to  this  chapter,  any  other
  charges  that  are  due  and  payable, any surcharge pursuant to section
  11-332 of this chapter, and interest  and  penalties  thereon,  or  such
  component   of  the  amount  thereof  as  shall  be  determined  by  the
  commissioner of finance, notwithstanding the amount paid for purchase of
  the tax lien or component of the amount thereof. For  purposes  of  this
  paragraph,  the  words,  "date  of  sale"  shall  have  the same meaning
  provided in section 11-320(e) of this chapter.
    5. (i) The commissioner of finance may, subsequent to  the  offer  for
  sale of any tax lien or tax liens and the failure to complete such sale,
  offer  such  tax lien or tax liens for sale again to any other person or
  persons who satisfied the terms  and  conditions  of  the  sale  without
  providing  any  additional  advertisements  or  notices pursuant to this
  chapter.
    (ii) Notwithstanding subparagraph (i) of this paragraph, any tax  lien
  that  was noticed for sale pursuant to this chapter, but was not sold on
  the  original  date  of  sale,  may  be  sold  without  any   additional
  advertisements  or  notices  pursuant  to this chapter if the subsequent
  date of sale is within six months of the second publication, pursuant to
  subdivision a of section 11-320 of this chapter, of the  notice  of  the
  original  date  of sale. If the subsequent date of sale is more than six
  months after the  second  publication,  pursuant  to  subdivision  a  of
  section  11-320  of  this chapter, of the notice of the original date of
  sale, then the commissioner of finance, or his or  her  designee,  shall
  provide  notice of the subsequent date of sale pursuant to subdivision b

  of section 11-320 of this chapter. No other additional advertisements or
  notices shall be necessary prior to the date of sale.
    6.  The rate of interest on any tax lien certificate shall be the rate
  fixed pursuant to section 11-224(g) of the code on the effective date of
  the local law that added this sentence.
    7. It is the intent of the city that a sale of a tax lien or tax liens
  pursuant to this chapter shall be a sale and not a borrowing.
    8. Whenever any tax lien purchased at a tax lien sale is found  to  be
  invalid, void or defective in whole or in part, or not to conform to any
  representation   or   warranty   with   respect  thereto,  made  by  the
  commissioner of finance in connection with the sale thereof, by judgment
  or decree of a court of competent jurisdiction or  by  determination  of
  the  commissioner of finance, the commissioner of finance may, in his or
  her discretion, substitute for such tax lien or portion thereof  another
  tax  lien  that  has  a value equivalent to the value of the tax lien or
  portion thereof found to be invalid,  void,  defective,  or  not  to  so
  conform,  or  may  refund  such value of the tax lien or portion thereof
  found to be invalid, void, defective, or not to so conform, or may use a
  combination of  substitution  and  refund.  No  other  remedy  shall  be
  available  to  a  purchaser  of a tax lien which is found to be invalid,
  void, defective, or not to conform to a representation or warranty  with
  respect  thereto  made by the commissioner of finance in connection with
  the sale thereof, in whole or in part.  Whenever  a  tax  lien  of  such
  equivalent value is to be substituted for a tax lien that has been found
  invalid,  void,  defective,  or  not to so conform, in whole or in part,
  pursuant to this section, the commissioner of  finance  or  his  or  her
  designee shall provide mailed notice of the intention to substitute such
  lien  of  such  equivalent  value  to any person required to be notified
  pursuant to section 11-320(b) of this chapter.
    9. The commissioner  of  finance  may  establish  requirements  for  a
  purchaser  of  a  tax lien to provide any information and documents that
  the commissioner  of  finance  deems  necessary,  including  information
  concerning the collection and enforcement of tax liens.
    10. Any tax lien or tax liens on property owned by a company organized
  pursuant to article XI of the state private housing finance law with the
  consent  and  approval  of  the  department  of housing preservation and
  development that are sold pursuant  to  this  chapter  shall  be  deemed
  defective.  For  the  purposes of this paragraph, property owned by such
  company shall be limited to property owned for the purpose, as set forth
  in section five hundred seventy-one of the state private housing finance
  law, of providing housing for families and persons of low income.