[HISTORY: Adopted by the City Council of the City of Newburgh 9-13-1993 by L.L. No. 4-1993. Amendments noted where applicable.]
Tax sales — See Charter, Art. VIII.
The Council of the City of Newburgh finds that the City annually acquires title to several properties by foreclosure for unpaid taxes or other charges, pursuant to Article 11, Title 3, of the Real Property Tax Law of the State of New York. Immediately after acquiring title, the City usually receives several requests to repurchase these properties by former owners or other interested parties to pay the taxes or charges owed. The Council generally grants these requests, but, although § 1166 of the Real Property Tax Law permits the City to sell such properties at private sale, a special resolution is required to approve each sale. It is the intent of this chapter to specifically supersede Real Property Tax Law § 1166, Subdivision 1, in part, so as to permit the private sale of real property acquired by in rem foreclosure to former owners thereof without the necessity of Council approval.
As used in this chapter, the following terms shall have the meanings indicated:
- FORMER OWNER
- An individual or corporation in title to a piece of real property immediately prior to the City taking title thereto.
- IN REM PROPERTY
- A piece of real property acquired by the City of Newburgh through a foreclosure of taxes in rem, pursuant to Article 11, Title 3, of the Real Property Tax Law of the State of New York.
- The holder of a mortgage, judgment or other lien on a piece of real property immediately prior to the City taking title thereto.
Annually, as soon after the last day set for redemption in the City of Newburgh's proceeding for the foreclosure of taxes in rem, pursuant to Article 11, Title 3, of the Real Property Tax Law of the State of New York, as may be practicable, the Council shall consider a resolution to authorize the repurchase process established by this chapter to commence. Said resolution shall be adopted upon a majority vote of the total membership of the Council. If said resolution is not enacted, the repurchase procedure set forth herein shall not be in effect.
Any former owner or lienor may request the repurchase of an in rem property. Such request must be in writing, addressed to the City Manager, plus the deposit provided for in § 93-5, and must be received no later than 60 days after the date of filing the deed conveying title to said in rem property to the City. A former owner or owners shall be given first priority over a lienor where an owner and a lienor both make a request to repurchase the same property. Requests of lienors to repurchase should be honored on the basis of the first received by the City Manager.
Each request to repurchase must be accompanied by a deposit equal to 10% of the taxes shown as owing on the list of delinquent taxes for the in rem proceeding for each of the in rem properties which it is requesting to repurchase. Said deposit must be in cash, good certified or bank check payable to the City of Newburgh.
The amount required to repurchase a property shall be the total amount of taxes, water and sewer charges, sanitation charges, interest and penalties due and owing or that would have been owing had the City not taken title to the property as of the time of repurchase of the in rem property, whether or not set forth on the list of delinquent taxes, plus an additional penalty equal to 30% of said total, figured to the date of payment.
All repurchase requests timely received, as provided in § 93-4, together with the deposit required by § 93-5, timely received, are approved and the City Manager is authorized to execute a deed conveying title of the City of Newburgh, as acquired in any in rem proceeding, to the former owner or lienor of that in rem property in accordance with the conditions and procedures set forth in this chapter. The deed shall be in quit claim form and shall contain a property description by Tax Map section, block and lot only.
Payment in full of the amount due on any in rem property as calculated pursuant to § 93-6 must be made in cash, good certified or bank check, payable to the City of Newburgh no later than 120 days after the date of the filing of the deed conveying title to the in rem property to the City.
No payment shall be accepted after the expiration of the time limit in § 93-8. Upon such expiration, the request to repurchase such in rem property shall be deemed to be in default and the City shall retain the deposit tendered with such request as liquidated damages.
No extensions of time to either request repurchase or make payment shall be granted under any circumstances.
Upon the expiration of said time limitations, the in rem property shall be sold at public auction to the highest bidder or retained for public purposes or otherwise disposed of, pursuant to § 1166 of the Real Property Tax Law.
The provisions herein authorizing the repurchase of in rem properties shall not apply to any in rem property which the Council determines, in its sole discretion, should be retained for public purposes. Excepted properties may also include properties having vacant, board up buildings or vacant buildings that would be boarded up pursuant to law thereon. The Council shall state in the resolution provided for in § 93-3, a list of the properties to be retained by the City.
The provisions herein authorizing the repurchase of in rem properties shall not apply to any in rem property on which an answer was filed in the in rem proceeding.
After the timely receipt of the payment in full, as required by § 93-6, the City Manager shall execute and deliver a quit claim deed conveying such interest to an in rem property as the City acquired by its in rem foreclosure proceeding to the former owner or lienor without any further or confirming resolution of the Council.
This chapter shall take effect immediately.