Bill Text: NY A08593 | 2023-2024 | General Assembly | Introduced

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Bill Title: Provides that any landlord that is in mortgage foreclosure due to loss of rent payments cannot enter into a state of foreclosure until a court handling a special proceeding to recover rent resolves any rent issues.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-12 - referred to judiciary [A08593 Detail]

Download: New_York-2023-A08593-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8593

                   IN ASSEMBLY

                                    January 12, 2024
                                       ___________

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

        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation to foreclosure of certain properties

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

     1    Section 1. Section 757 of the real property  actions  and  proceedings
     2  law, as added by section 23 of part M of chapter 36 of the laws of 2019,
     3  is amended to read as follows:
     4    §  757. Eviction as the result of foreclosure. 1. Any landlord that is
     5  in mortgage foreclosure due to loss of rent payments cannot enter into a
     6  state of foreclosure until a special proceeding to recover real property
     7  is maintained and any rent issues are resolved. Such court  shall  track
     8  all loss of rent payment cases and subsequent foreclosure cases.
     9    2.  In  the event that a lessee is removed from real property pursuant
    10  to this article, and the leased real property was the subject of a fore-
    11  closure proceeding pursuant to this chapter or  the  subject  of  a  tax
    12  foreclosure  proceeding,  the  court records relating to any such lessee
    13  shall be sealed and be deemed confidential. No disclosure or use of such
    14  information relating to any such lessee shall be authorized, and the use
    15  of such information shall be prohibited.
    16    § 2. Section 1302 of the real property actions and proceedings law  is
    17  amended by adding a new subdivision 3 to read as follows:
    18    3.  Any  landlord  that is in mortgage foreclosure due to loss of rent
    19  payments cannot enter into  a  state  of  foreclosure  until  a  special
    20  proceeding  to  recover  real property is maintained and any rent issues
    21  are resolved. Such court shall track all loss of rent payment cases  and
    22  subsequent foreclosure cases.
    23    § 3. This act shall take effect on the one hundred eightieth day after
    24  it shall have become a law.


         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10803-02-3