[HISTORY: Adopted by the Board of Trustees of the Village
of Johnson City 8-21-2012 by L.L. No. 9-2012. Amendments noted where
applicable.]
As used in this chapter, any inconsistent provision of law notwithstanding,
the following terms shall have the following meanings:
The Building Official of the Village of Johnson City.
Any lien, including liens for taxes, special ad valorem levies,
special assessments and municipal charges, arising by operation of
law against property in favor of the Village and remaining undischarged
for a period of one year or more.
Property upon which there is erected any residential, commercial
or industrial building or structure except an owner-occupied single-family
residential structure and owner-occupied two-family residential structures.
[Amended 12-5-2017 by L.L. No.
12-2017]
A lien upon fire insurance proceeds pursuant to this chapter
and § 22 of the General Municipal Law and § 331
of the Insurance Law and any amendments thereto.
The Treasurer of the Village of Johnson City.
The Treasurer shall file a notice of intention to claim against
the proceeds of fire insurance policies, pursuant to § 22
of the General Municipal Law, with the State Superintendent of Financial
Services for entry in the index of liens maintained by him as provided
in § 331 of the Insurance Law.
Prior to the payment of any proceeds of a policy of insurance
for damages caused by fire to real property, which policy insures
the interest of an owner and is issued on real property located within
the Village, and following notification to the Treasurer by an insurer
of the filing of a claim for payment of such proceeds, the Treasurer
shall claim, by serving a certificate of lien, against such proceeds
to the extent of any lien (including interest and penalties to the
date of the claim) thereon, which claim, when made and perfected in
the manner provided for in § 22 of the General Municipal
Law and § 331 of the Insurance Law, shall constitute a special
lien against such proceeds and shall, as to such proceeds, be prior
to all other liens and claims, except the claims of a mortgagee of
record named in such policy. Notice of the service of the certificate
of the special lien shall be given to the insured by certified mail
to the address as it appears on the records of the insurer.
The provisions of this chapter shall not be deemed or construed
to alter or impair the right of the Village to acquire or enforce
the lien against property but shall be in addition to any other power
provided by law to acquire or enforce such right.
The Building Official is empowered, authorized and directed
to administer the provisions of this chapter. So far as practicable
and subject to the approval of the Village Board, the services of
all other Village departments and agencies shall be made available
by their respective heads to the Building Official for the carrying
out of his or her functions.
Whenever the proceeds of a policy of fire insurance will be
or have been paid to the Village instead of an insured, all or part
of such proceeds may be paid or released to the insured if the insured
satisfies the Building Official that the affected premises has been
or will be repaired or restored, that such repairs or restoration
are in the public interest, and the insured is issued and complies
with a certificate of the Building Official pursuant to this chapter.
To secure such payment or release of proceeds, the insured must notify
the Building Official, in writing, within 45 days after the mailing
to the insured of a notice of the service of the certificate of special
lien, of the intention to restore or repair the affected premises
and must file with the Building Official a completed application with
all required supporting documentation pursuant to this chapter within
60 days thereafter, unless the Building Official grants an extension
for a stated period of time.
The release or return to the insured of any amounts to which
he or she would otherwise be entitled to claim shall be subject to
the following conditions:
A.Â
Such release or return shall be subject to the repair or restoration
of the affected premises, in accordance with applicable building laws,
to the condition it was in prior to the time the lien of the Village
arose, or to an improved condition.
B.Â
The insured shall file with the Building Official an application
in affidavit form with such supporting documentation as he or she
shall require containing the following:
(1)Â
A complete description of the nature and extent of the damage to
the insured premises and of the condition of the premises prior to
the time the lien of the Village arose.
(2)Â
A complete description of the nature of the repairs or restoration
to be undertaken and the cost thereof.
(3)Â
A statement as to the source of funds needed to complete such repairs
or restoration if the insurance proceeds are not sufficient.
(4)Â
The name and address of each contractor who will effect such repairs
or restoration.
(5)Â
An estimated time schedule showing how long the repairs or restoration,
and each phase thereof, will take.
(6)Â
Such other information as may be required by the Building Official
to enable him or her to determine whether the repairs or restoration
are in the public interest and will be or have been timely and properly
made.
C.Â
Upon a preliminary approval by the Building Official of an application pursuant to Subsection B of this section, he or she may issue a certificate evidencing the right of release to the insured of amounts representing insurance proceeds, upon such conditions as may be set forth therein.
D.Â
The repairs or restoration required shall be completed in compliance
with the terms and conditions of the certificate prior to the release
or return of any part of the insurance proceeds; provided, however,
that the Building Official may, upon the written request of the insured
and in his or her sole discretion, approve a prior release of such
proceeds or a portion thereof, in a lump sum or in installments, where
the insured certifies and demonstrates that such release is required
to permit such repairs or restoration to go forward. Any such insurance
proceeds released or returned prior to the completion of the repairs
or restoration required by the Building Official may be paid directly
to the contractor or contractors responsible for making such repairs
or restoration. Such payment shall, to the extent thereof, release
the Building Official from further liability to the insured.
E.Â
Whenever the Building Official approves a release of all or part
of the insurance proceeds prior to compliance with the terms and conditions
of the agreement, the Building Official may require the insured to
post an undertaking in an amount sufficient to assume the restoration
or improvement of the property, obtain a performance bond or deposit
such proceeds in an escrow account.
If the insured fails to notify the Village of his or its intention
to repair or restore the affected premises as required in this chapter,
fails to file a completed application pursuant to this chapter or
fails to obtain a certificate from the Building Official or comply
therewith within the time set forth, the right of the insured to assert
a claim against the insurance proceeds, except to the extent they
exceed the amount of the lien, shall terminate.
There shall be established in the office of the Treasurer a
fund for the deposit of fire insurance proceeds to be held and applied
in accordance with this chapter. Such funds shall not be held together
with the general tax levies in the general fund.
Until termination of the insured's right to claim against
the insurance proceeds, any proceeds received by the Village shall
be deposited in a special fund and shall be retained therein. Upon
termination of the insured's right to claim against the proceeds,
the proceeds and any interest accrued thereon shall be applied to
the liens affecting the premises in a manner determined by the Treasurer
and may be transferred to the general fund.
The lien or liens against the affected premises upon which the
special lien against proceeds is based shall continue in full force
and effect, except to the extent that such lien or liens are or have
been paid.
The Building Official may, pursuant to this chapter, release,
compromise or adjust the special lien upon insurance proceeds created
by this chapter. Any certificate issued by such Building Official
pursuant to this chapter shall be for the purpose of preserving and
evidencing the right of release of the special lien created by this
chapter subject solely to the provisions of this chapter and shall
not be deemed to be a contract subject to Village regulation. Any
repair or restoration performed in anticipation of a release of insurance
proceeds shall not be deemed to be a public work or municipal project
or to have been done pursuant to a municipal contract.
The Building Official shall be empowered to promulgate rules
and regulations and to adopt approved forms to be used by applicants.
