NY A03901

Requires surplus proceeds from tax foreclosure property sales to be distributed to former property owners after all taxes, interest, penalties, and administrative costs are paid to local government

Establishes that if the foreclosed property has other liens, those lienholders are paid first from excess proceeds in the same priority order as mortgage foreclosures, with any remaining funds going to the prior owner

Exempts abandoned properties from surplus distribution requirements, including properties on municipal vacant/abandoned registries or certified as abandoned commercial/industrial real property

Mandates municipalities notify former property owners when their foreclosed property sold for a surplus, including instructions on how to claim the funds

Takes effect October 1, 2025 and applies to all tax foreclosure proceedings commenced on or after that date