Section 606. Extension of the time for payment and suspension of payment of real estate tax liens

1. As used in this  section  the  term  abandoned
  multiple  dwelling  shall  mean  a  class A or class B multiple dwelling
  containing in the aggregate not less than three dwelling units, at least
  eighty percent of the occupied dwelling units of which are  occupied  by
  persons  or  families  of  low  income  as defined in subdivision ten of
  section twelve of this chapter and which the  supervising  agency  shall
  find  has  been  abandoned  by  the  owner or owners thereof.   Any such
  finding shall be based on one or more of the following conditions:
    (a) Failure to make any payments in respect of real  estate  taxes  on
  said  multiple  dwelling  for  twelve  months  or more, and a continuing
  failure to maintain essential services, or failure to remove  violations
  of  the  local  housing maintenance code or other statutes applicable to
  multiple dwellings, where, as  a  result  of  either  such  failure  the
  multiple dwelling has become dangerous to the life, health and safety of
  its occupants; or
    (b)  Failure  to  make any payments in respect of real estate taxes on
  said multiple dwelling for twelve months or more and failure to  attempt
  to  collect  rent  from a majority of the tenants in lawful occupancy of
  dwelling  units  in  such  multiple  dwelling  for  a  period  of  three
  consecutive months or more; or
    (c)  The  entry of a judgment in favor of the petitioning tenants in a
  proceeding instituted pursuant to article seven-A of the  real  property
  actions  and  proceedings  law,  and  the  failure by the owner or other
  respondent to secure the removal of the administrator appointed pursuant
  to  such  judgment  within  ninety  days  after  his   appointment   and
  qualification; or
    (d)  The entry or filing of an order appointing a receiver pursuant to
  section three hundred nine of the multiple dwelling law or any other law
  authorizing the appointment of a municipality or any agency or  official
  thereof as receiver of a multiple dwelling, and the failure by the owner
  or  other  party  entitled thereto to secure the removal or discharge of
  such receiver within ninety days thereafter.
    2. Whenever a housing  project  (i)  of  a  housing  development  fund
  company  organized  pursuant to the provisions of article eleven of this
  chapter, (ii) of a company  organized  pursuant  to  the  provisions  of
  article  two,  four or five of this chapter, (iii) of a company or owner
  aided by article three, eight,  twelve,  fourteen  or  fifteen  of  this
  chapter,  or (iv) is to be financed by a mortgage made or insured by the
  federal government  or  any  agency  or  instrumentality  thereof  or  a
  mortgage  loan  entered  into  in  conjunction with a housing assistance
  payments contract in connection with  new  construction  or  substantial
  rehabilitation  pursuant  to  section eight of the United States Housing
  Act of 1937, as amended, is premised upon  the  acquisition,  ownership,
  rehabilitation and management of an abandoned multiple dwelling, as said
  term  is  defined  in  subdivision  one of this section, the supervising
  agency may, subject to the requirements  of  subdivision  four  of  this
  section,  enter  into  an  agreement with such housing company or owner,
  which agreement shall provide for one or  more  of  the  following  with
  respect  to  accrued real estate tax liens and municipal charges arising
  by operation of law  upon  the  properties  upon  which  such  abandoned
  multiple dwelling is located:
    (a)  The  extension  of  the  time  for  the payment of all or part of
  accrued real estate tax liens and municipal charges arising by operation
  of law by spreading the payment thereof over a period or periods of time
  to commence presently or at some future time, but  in  no  event  beyond
  forty  years  from  the  date  of such agreement; (b) The elimination of

  interest and penalties on all or part of  the  unpaid  real  estate  tax
  liens and municipal charges arising by operation of law;
    (c)  The  suspension  of  the payment of all or a part of accrued real
  estate tax liens and municipal charges arising by operation of law for a
  period not to exceed forty years from the date of such agreement;
    (d) The elimination of all or part of accrued real  estate  tax  liens
  and  municipal  charges  arising  by  operation  of law provided that in
  consideration of such  elimination  the  municipality  may  require  the
  housing  company to convey to it by deed an indefeasibly vested interest
  in the real property of the project, the value of  which  shall  be  set
  forth in such agreement but shall in no event be less than the amount of
  real  estate tax liens and municipal charges arising by operation of law
  eliminated, to take effect as provided therein but not later than  forty
  years from the date thereof.
    3.  No  such  agreement  for the extension or suspension of payment or
  elimination of accrued real  estate  tax  liens  and  municipal  charges
  arising  by operation of law shall be entered into until the supervising
  agency shall first have made written findings supported by  satisfactory
  evidence that:
    (a)  The  project  is  an  abandoned  multiple dwelling, as defined in
  subdivision one of this section, and the owner  who  so  abandoned  such
  dwelling  has  no  direct  or  indirect interest or participation in the
  project; and
    (b) The housing company has available or has a reasonable  expectation
  of obtaining from public or private sources, or both, adequate financing
  to acquire and rehabilitate the property; and
    (c)  The  housing company possesses or has given satisfactory evidence
  of its ability and intention  to  employ  adequate  competent  personnel
  capable  of  rehabilitating, supervising the rehabilitation and managing
  and  operating  the  property  in  accordance  with  the  standards  and
  conditions prescribed by this section and by the supervising agency; and
    (d)  The  proposed  rehabilitation  will effectuate the removal of all
  housing and other violations of record against the property as  well  as
  all  incipient  violations  disclosed  by inspections of the supervising
  agency and other agencies of the municipality charged  with  enforcement
  of   applicable   statutes   and  ordinances  prescribing  standards  of
  construction and housing maintenance and will result in the  removal  of
  all unsafe and unsanitary conditions; and
    (e)  The  proposed  rehabilitation  will not require the removal of or
  relocation  of  any  residential  tenants  in  occupancy,   other   than
  temporarily,  during  the period of construction, in which case suitable
  arrangements have been made for such temporary relocation; and
    (f) In order for the housing company to acquire the  property  and  to
  rehabilitate,  operate and maintain the same as provided herein, accrued
  real estate tax liens and municipal charges arising by operation of  law
  affecting  the  property  must  be extended, suspended or eliminated, in
  whole or in part, as provided in subdivision two of this section,  which
  finding  shall  set  forth  the  exact amount of accrued real estate tax
  liens and municipal charges arising by operation of law  and  set  forth
  full  details  as  to  the extension, suspension and elimination thereof
  required in order for the rents or carrying  charges  to  be  fixed  and
  established  by the supervising agency or as otherwise provided pursuant
  to the provisions of article two,  three,  four,  five,  eight,  eleven,
  twelve,  fourteen  or  fifteen  of this chapter, or in connection with a
  mortgage made or insured by the federal  government  or  any  agency  or
  instrumentality  thereof  or a mortgage loan entered into in conjunction
  with a housing assistance  payments  contract  in  connection  with  new
  construction  or substantial rehabilitation pursuant to section eight of

  the United States Housing Act of 1937,  as  amended,  whichever  may  be
  applicable,  and  shall further contain the calculations and assumptions
  upon which such finding is based and  shall  state  that  the  projected
  rents  or  carrying  charges  are  as  high as the present occupants can
  reasonably afford, and as can reasonably be charged  and  collected  for
  comparable  housing  accommodations  in  the  immediate  vicinity of the
  abandoned multiple dwelling; and
    (g) The abandoned multiple dwelling is located in  a  deteriorated  or
  deteriorating   neighborhood   or   one   imminently   threatened   with
  deterioration, and that unless the project is carried out, the  property
  will  become unsafe and unfit for continued human habitation in the near
  future, and that by reason of its present and probable future condition,
  the property is exerting or will in the near future, exert a deleterious
  influence upon the block in which it is located  and  upon  the  blocks,
  neighborhood and area immediately surrounding and adjacent thereto.
    4.  The agreement, with respect to a housing development fund company,
  shall contain all of the provisions required  by  section  five  hundred
  seventy-six  of  this  chapter,  and with regard to any housing company,
  including such housing development  fund  company,  shall  contain  such
  other provisions as may be approved by the local legislative body.
    5.  (a)  An  agreement authorized by subdivisions two and four of this
  section shall be submitted  by  the  supervising  agency  to  the  local
  legislative  body  of  the  municipality  in  which the project is to be
  located, which body may determine to extend,  suspend  and/or  eliminate
  the  payment of all or any part of the accrued real estate tax liens and
  municipal charges arising by operation of law on the  real  property  in
  such  project,  but  in  no  event  beyond  the limitations set forth in
  subdivision  two  of  this  section.    The  extension,  suspension   or
  elimination  of  real  estate tax liens and municipal charges arising by
  operation of law may include all  accrued  local  and  municipal  taxes,
  including  assessments,  water  and  sewer  rents  and sewer charges and
  special ad valorem levies and all emergency repair levies but shall  not
  include any taxes or municipal charges accruing in respect of any parcel
  for  any  period  commencing after a date fixed by the local legislative
  body, such date being not later than the projected date  of  substantial
  completion  of  the  rehabilitation  of  the  building  situated on such
  parcel.
    (b)  Where  the  municipality  acts  on  behalf  of   another   taxing
  jurisdiction  in assessing real property for the purpose of taxation, or
  in levying taxes therefor, the determination of  the  local  legislative
  body  in  granting  such extension, suspension or elimination shall have
  the effect of extending, suspending  or  eliminating  the  accrued  real
  estate tax liens against the real property in such project to the extent
  and subject to the provisions of paragraph (a) of this subdivision.