NY S08203

Municipalities may enter into contracts to sell delinquent tax liens to private parties on or before December 31, 2010, with contracts not extending beyond December 31, 2012.

Local governing bodies must hold a public hearing with at least 30 days' notice before selling tax liens, and property owners must receive at least 30 days' advance notice of the sale.

Tax lien purchasers must provide municipalities with a 30-day advance notice of foreclosure actions, allowing municipalities to repurchase liens at cost plus accrued interest and collection fees.

Tax lien sales do not alter redemption periods, interest rates, or foreclosure procedures; purchasers may foreclose as provided under existing real property law following the redemption period expiration.

Municipalities must file annual written reports on tax lien sales with state officials, and the State Comptroller must issue a comprehensive report by July 1, 2012, on all private tax lien sales conducted during 2009-2011.