Exemptions from the sale of tax liens.

A Local Law to amend the administrative code of the city of New York, in relation to exemptions from the sale of tax liens

This bill would create a position of a not-for-profit ombudsperson within the Department of Finance (DOF). Moreover, this bill would exempt from the City’s lien sale any property owned by a not-for-profit organization that received a not-for-profit property tax exemption under in at least one of the prior two fiscal years, provided that: (1) such exemption was granted on or after the date on which such property was conveyed to a not-for-profit organization; (2) the property tax component of such lien arose on or after the date on which such real property was conveyed to such not-for-profit organization; and (3) such not-for-profit organization was organized or conducted for an eligible not-for-profit purpose. Additionally, the bill would provide an exemption for any property for which the owner has, in good faith, submitted a pending application for a not-for-profit property tax exemption pursuant to the above sections with DOF, as well as any property for which the owner is appealing the denial of such an exemption with the Tax Commission. Additionally, the bill would require notice to owners of Class 4 properties of the availability of exemptions and other actions to remove a property from the sale, as well as mandate certain other changes to the lien sale notice. Finally, the bill would require DOF to include information about how to remove a property from the lien sale when denying an application for certain exemptions.