NY A11258

Requires municipalities to notify property owners when their property generates a surplus at a tax foreclosure auction held on or after January 1, 2009.

Municipalities must make reasonable efforts to contact property owners by mail, telephone, or electronic mail within a reasonable timeframe following the auction.

Notification must include the possible existence of a surplus, instructions on how to obtain it, contact information for free legal services if available, and steps the homeowner must take to claim the surplus.

Defines surplus as the amount remaining after the property auction and all outstanding taxes, county tax and utility liens, and administrative fees have been paid.

Permits municipalities to charge a reasonable fee for notification expenses, capped at 5% of the total surplus for cases exceeding $1,000.