Interest rates applicable to installment agreements for the payment of property tax arrears.

A Local Law to amend the administrative code of the city of New York, in relation to the interest rate applicable to real property with an assessed value of two hundred fifty thousand dollars or less for which the owner of such property has entered into an agreement with the department of finance for the payment in installments of real property taxes, assessments or other charges, and to repeal subdivision (c) of section 11-312 and subdivision (e) of section 11-313 of the administrative code of the city of New York, relating to written recommendations by the banking commission of a proposed interest rate to be charged for the nonpayment of water rents and sewer rents

This bill would authorize the New York City Banking Commission to recommend, and the Council to adopt, an interest rate that would be applicable to the property tax arrears that accrue while an eligible property with an assessed value of $250,000 or less is the subject of a valid payment agreement plan with the Department of Finance. Eligible properties must be the primary resident of the homeowner(s) whose total income does not exceed $200,000. These threshold cover 82 percent on New York City primary resident homeowners. The rate recommended by the Banking Commission must be at least equal to the most recently determined federal short-term interest rate rounded to the nearest half percent. The Department of Finance must conduct outreach for the new rate and report back to the Mayor and the Speaker. In addition, the local law would repeal provisions requiring the Banking Commission to make certain recommendations for interest rates for the nonpayment of water and sewer rents because those provisions are preempted by a State law setting such interest rates.