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Tompkins Legislature asks state to change in-rem foreclosure law amid debate
Summary
The Tompkins County Legislature passed a resolution May 5 urging New York State to amend the in-rem foreclosure law so counties are not required to guarantee unpaid municipal taxes; members amended the NYSAC-drafted language before approving the measure.
The Tompkins County Legislature voted May 5 to urge the New York State Legislature to reform the state's in-rem foreclosure law. The resolution asks Albany to relieve counties of the obligation to guarantee unpaid taxes owed to towns and school districts, and it includes alternative language to allow for interest-free state loans as a replacement mechanism.
Deborah Dawson proposed an amendment to eliminate language that would require counties to guarantee delinquent taxes beyond foreclosure proceeds; legislators discussed the potential administrative and financial consequences in detail. Lawmakers debated the equity impact on towns, villages and school districts and whether the county should remain the guarantor. Finance and legal staff explained timing issues, potential clawback mechanisms, and how interest and penalties currently accrue during foreclosure.
After discussion, the legislature adopted a friendly amendment to keep a strong statewide ask while preserving an option for interest-free state loans in lieu of a full state guarantee. The chamber then took a final vote on the amended resolution; the chair announced the motion carried and the amended resolution was adopted.
The adopted resolution directs the county to transmit the local government request to state lawmakers and NYSAC. The measure is an advocacy item asking the state to change statutory responsibilities for foreclosure and tax guarantees; it does not itself change county law or fiscal policy.
Next steps: The county will forward the amended resolution to state legislative contacts and NYSAC for consideration as part of state-level policy discussions.
