Bill Text: NY A09076 | 2021-2022 | General Assembly | Introduced

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Bill Title: Requires a stay of certain foreclosure proceedings where the mortgagor has applied for coverage under the New York state homeowner assistance fund or any local program administering federal emergency mortgage assistance program funds; allows such foreclosure proceedings to proceed against a mortgagor who has caused significant damage to the property.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Introduced - Dead) 2022-01-31 - referred to judiciary [A09076 Detail]

Download: New_York-2021-A09076-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9076

                   IN ASSEMBLY

                                    January 31, 2022
                                       ___________

        Introduced  by  M.  of  A.  JEAN-PIERRE -- read once and referred to the
          Committee on Judiciary

        AN ACT to stay certain foreclosure proceedings

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. Except as provided in section two of this act, foreclosure
     2  proceedings for non-payment of mortgage payments that would be  eligible
     3  for coverage under the New York state homeowner assistance fund adminis-
     4  tered  by  the  division  of  housing and community renewal shall not be
     5  commenced against a mortgagor who has applied for such coverage  or  any
     6  local   program  administering  federal  emergency  mortgage  assistance
     7  program funds unless or until a determination of ineligibility is  made.
     8  Except  as  provided in section two of this act, in any pending foreclo-
     9  sure proceeding, whether filed prior to, on, or after the effective date
    10  of this act, against a mortgagor who has applied or subsequently applies
    11  for benefits under the New York state homeowner assistance fund  or  any
    12  local   program  administering  federal  emergency  mortgage  assistance
    13  program funds to cover all or part of the arrears claimed by  the  peti-
    14  tioner,  all  proceedings  shall  be  stayed  pending a determination of
    15  eligibility. Evidence of a payment received pursuant  to  the  New  York
    16  state homeowner assistance fund or a local program administering federal
    17  emergency  mortgage  assistance  program  funds may be presented in such
    18  proceeding and create a presumption that the mortgagor's obligation  for
    19  the time period covered by the payment has been fully satisfied.
    20    §  2.  Section  one  of this act shall not apply if a mortgagor inten-
    21  tionally causes significant damage to the property that is  the  subject
    22  of the mortgage agreement, provided:
    23    1. If a foreclosure proceeding is not pending on the effective date of
    24  this act, the petitioner shall file an affidavit under penalty of perju-
    25  ry  with the petition attesting that the respondent intentionally caused
    26  significant damage to the property, with a specific description  of  the
    27  damages alleged.
    28    2.  If  a  foreclosure  proceeding is pending on the effective date of
    29  this act, but the petitioner has not previously alleged that the mortga-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14121-01-1
        A. 9076                             2

     1  gor intentionally caused significant damage to the property,  the  peti-
     2  tioner  shall be required to submit a new petition with such allegations
     3  and comply with all notice and service requirements under article  thir-
     4  teen of the real property actions and proceedings law.
     5    3.  For the purposes of this act, a mere allegation of the behavior by
     6  the petitioner or an agent of  the  petitioner  alleging  such  behavior
     7  shall  not  be  sufficient  evidence to establish that the mortgagor has
     8  intentionally caused significant damage to the property.
     9    4. If the petitioner fails to  establish  that  the  mortgagor  inten-
    10  tionally   caused  significant  damage  to  the  property:  (i)  if  the
    11  mortgagor's application is  still  pending,  the  court  shall  stay  or
    12  continue  to  stay  any  further  proceedings pending a determination of
    13  eligibility pursuant to section one of this act; or (ii) if the  mortga-
    14  gee has accepted payment of mortgage arrears and agreed not to foreclose
    15  the mortgage, the court shall dismiss the proceeding with prejudice.
    16    5.  If  the  petitioner  establishes  that the mortgagor intentionally
    17  caused significant damage to the property, the proceeding  may  continue
    18  pursuant   to   article  thirteen  of  the  real  property  actions  and
    19  proceedings law.
    20    § 3. This act shall take effect immediately.