A new bill could let New York municipalities take fire insurance money from absentee owners.
The bill, awaiting the signature of New York Gov. Andrew Cuomo, would let cities place tax liens on insurance money in order to recover unpaid taxes and other costs from residential buildings destroyed by fire.
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Current state law allows a similar action for commercial buildings, but hasn’t been applied to residences, according to the Albany Times-Union. That’s allowed landlords to pocket fire insurance payouts while their tenants are displaced and their buildings fall off the tax rolls. The new bill amends that law to include all property except for one- and two-family owner-occupied residences, according to the Times-Union.
Assemblyman John T. McDonald III, who sponsored the bill, used to serve as mayor of Cohoes, N.Y. During his tenure there, he said, he saw many property owners pawn off the costs of fire-damaged properties on to city and county taxpayers – even as their own fire-damaged buildings lowered the value of nearby homes.
“When you’re an out-of-town property manager who wants to shirk your responsibility – that’s just ridiculous,” McDonald said. “…It’s just wrong. This is going to give direction on how these properties are managed.”
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