Bill Text: NY A05938 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to prosecution by the department of financial services (DFS) and municipalities of certain violations regarding residential real property by mortgage lenders and similar entities; directs DFS to promulgate standards of review of whether to prosecute such violations; requires deference to municipalities where both the municipality and DFS are authorized to prosecute such a violation; directs payments of civil penalties issued pursuant to such violations to be paid to DFS if DFS is the prosecuting entity.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-01-03 - referred to judiciary [A05938 Detail]

Download: New_York-2023-A05938-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5938

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 24, 2023
                                       ___________

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

        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation  to  prosecution  by the department of financial services and
          municipalities of certain violations regarding residential real  prop-
          erties

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

     1    Section 1. The real property actions and proceedings law is amended by
     2  adding a new section 1360 to read as follows:
     3    §  1360.  Superintendent  of  financial   services;   prosecution   of
     4  violations.    1. The superintendent of financial services shall promul-
     5  gate, by regulation, standards  of  review  for  determinations  by  the
     6  department  of  financial  services  of  whether to prosecute violations
     7  regarding residential real property, as authorized under this article.
     8    2. Where the department of financial services and a  municipality  are
     9  both  authorized  to  prosecute  a  violation regarding residential real
    10  property under this article, the department of financial services  shall
    11  not  seek  to  prosecute  such violation unless it receives confirmation
    12  from such municipality that such municipality does not intend to  prose-
    13  cute such violation itself.
    14    3.  Where a hearing officer or court of competent jurisdiction decides
    15  in favor of the department of financial services in a proceeding  alleg-
    16  ing  a violation regarding residential real property under this article,
    17  the proceeds of any civil penalty issued pursuant to such decision shall
    18  be payable to the department of financial services for the  purposes  of
    19  prosecuting future violations under this article.
    20    4.  For the purposes of this section, the term "residential real prop-
    21  erty" shall mean real property located in this  state  improved  by  any
    22  building  or  structure  that is or may be used, in whole or in part, as

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10032-01-3
        A. 5938                             2

     1  the home or residence of one or more  persons,  and  shall  include  any
     2  building or structure used for both residential and commercial purposes.
     3    §  2.  This  act  shall take effect on the sixtieth day after it shall
     4  have become a law. Effective immediately, the addition, amendment and/or
     5  repeal of any rule or regulation necessary  for  the  implementation  of
     6  this  act  on its effective date are authorized to be made and completed
     7  on or before such effective date.