City Council:
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF MOUNT VERNON REQUESTING THAT
THE STATE SENATE AND ASSEMBLY INTRODUCE
AND ADOPT LEGISLATION MODIFYING CHAPTER 783
OF THE LAWS OF 1974 CONCERNING THE
OFFERING OF INSTALLMENT PAYMENT PLANS
WHEREAS, by Chapter 783 of the Laws of 1974, the State of New York authorized the City of Mount Vernon (the “City”) to adopt, by local law, provisions related to the commencement of foreclosure of tax liens by proceeding in rem (the “Special State Law”); and
WHEREAS, the City then adopted Local Law No. 7 of 1976, effective October 28, 1976, which was enacted pursuant to the authority contained in the Special State Law (the “Local Statute”); and
WHEREAS, the Local Statute permits the City to offer installment payment plans to taxpayers, but their duration is limited to two years and requires a 25% downpayment; and
WHEREAS, the COVID-19 pandemic had a serious, adverse financial impact on many of the City’s residents; and
WHEREAS, real property tax is an area where the City’s residents are struggling to keep up and many have now fallen into foreclosure status; and
WHEREAS, many City residents and real property owners are now in danger of losing their homes or primary assets; and
WHEREAS, as currently drafted, the Special State Law does not give the City the flexibility to offer installment payment plans that are comparable to neighboring jurisdictions, such as the City of New York and the City of Yonkers; and
WHEREAS, for example, the City of New York installment payment plans require a 10- 15% downpayment, the frequency of payments is quarterly, and the maximum term of the agreement is five (5), eight (8), or twelve (12) years depending on the type of property; and
WHEREAS, the City of Yonkers installment payment plans require no initial downpayment, the frequency of payments is “periodic installments”, the maximum term of the installment payment agreement is five (5) years; and
WHEREAS, the City is respectfully requesting that the State Senate and State Assembly amend the Special State Law to permit the City to offer installment sales agreements to City taxpayers for periods of up to the following maximum terms: (i) for low-income seniors (those seniors earning at or below 40% of the Area Median Income for Westchester County), ten (10) years; (ii) residential real property owners, five (5) years; (iii) all other property owners, three (3) years (the “Installment Payment Agreement Amendment”); and
WHEREAS, the City further requests that the Installment Payment Agreement Amendment reduce the required downpayment from 25% to 10% and provide flexibility in payment in monthly or quarterly increments; and
WHEREAS, the City believes that the foregoing amendments will enable to City to increase cash flow and resolve many outstanding balances while simultaneously giving City residents and property owners an opportunity to preserve their assets and move forward; NOW, THEREFORE, BE IT
RESOLVED, the City Council of the City of Mount Vernon issues this request to the New York State Senate and New York State Assembly (the “Legislature of the State of New York”) that in the 2024 legislative session, they introduce and adopt legislation authorizing the Installment Payment Agreement Amendment, as described in the recitals of this Resolution, which authority would sunset every ten (10) years subject to further extension by the State Legislature and the Governor; and be it further
RESOLVED, that the City Council of the City of Mount Vernon hereby requests the City Clerk to forward a copy of this Resolution to the Legislature of the State of New York and the City of Mount Vernon State Legislative Delegation.