Bill Text: NY S00414 | 2021-2022 | General Assembly | Introduced

---

Bill Title: Directs the department of financial services to periodically inspect residential real properties for which a lender has a duty to maintain; authorizes the department of financial services or the municipality to impose a $500 a day civil penalty for the failure of a lender to maintain an abandoned property that it has a duty to maintain; requires such lenders to register with the statewide vacant and abandoned property electronic registry.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S00414 Detail]

Download: New_York-2021-S00414-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                           414

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by  Sen.  BIAGGI -- read twice and ordered printed, and when
          printed to be committed to the Committee on Housing, Construction  and
          Community Development

        AN  ACT  to  amend  the  real  property  actions and proceedings law, in
          relation to directing the department of financial services to  conduct
          periodic inspections of vacant and abandoned residential real property
          required  to  be maintained by the mortgagee, authorize the department
          of financial services and  municipalities  to  impose  a  daily  civil
          penalty  upon  mortgagees  which fail to maintain abandoned and vacant
          residential real property, and requiring  lenders  having  a  duty  to
          maintain  residential  real  property  to  register with the statewide
          vacant and abandoned property registry

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

     1    Section  1.  Section 1307 of the real property actions and proceedings
     2  law is amended by adding a new subdivision 2-a to read as follows:
     3    2-a. The department of financial services shall cause an inspection to
     4  be conducted, with regard to compliance  with  the  provisions  of  this
     5  section,  of  each  residential  real  property  that  is subject to the
     6  provisions of this section within four months of the  date  the  lender,
     7  assignee  or  mortgage loan servicer registers with the statewide vacant
     8  and abandoned property registry pursuant to section thirteen hundred ten
     9  of this article and every six months thereafter until the property is no
    10  longer subject to the provisions of this section.
    11    § 2. Subdivision 3 of section 1307 of the real  property  actions  and
    12  proceedings law, as added by chapter 507 of the laws of 2009, is amended
    13  to read as follows:
    14    3.  The  department  of  financial services, the municipality in which
    15  such residential real  property  is  located,  any  tenant  lawfully  in
    16  possession,  and a board of managers of a condominium in which the prem-
    17  ises are located or  a  homeowners  association  if  said  premises  are
    18  subject  to the rules and regulations of such an association, shall have
    19  the right to enforce the obligations described in this  section  in  any

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00037-01-1
        S. 414                              2

     1  court  of competent jurisdiction after at least seven days notice to the
     2  plaintiff  in  the  foreclosure  action  unless  emergency  repairs  are
     3  required.  Any  entity  acting pursuant to this subdivision shall have a
     4  cause  of  action  in  any  court  of competent jurisdiction against the
     5  plaintiff in the foreclosure action  to  recover  costs  incurred  as  a
     6  result  of  maintaining  the  property.   In addition, the department of
     7  financial services or the municipality in which the residential property
     8  is located may impose a civil penalty of five hundred dollars  for  each
     9  day a party required to maintain property pursuant to this section fails
    10  to  do  so  or  fails  to comply with the provisions of section thirteen
    11  hundred ten of this article. The authority provided by this  subdivision
    12  shall  be in addition to, and shall not be deemed to diminish or reduce,
    13  any rights of the parties described in this section under  existing  law
    14  against  the  mortgagor  of  such  property for failure to maintain such
    15  property.
    16    § 3. Section 1308 of the real property actions and proceedings law  is
    17  amended by adding a new subdivision 7-a to read as follows:
    18    7-a. The department of financial services shall cause an inspection of
    19  the subject property to be conducted, with regard to compliance with the
    20  provisions  of  this section within four months of the date the servicer
    21  registers with the statewide vacant and  abandoned  property  electronic
    22  registry  pursuant  to section thirteen hundred ten of this article, and
    23  every six months thereafter until such time as the property is no longer
    24  subject to the provisions of this section.
    25    § 4. Subdivision 2 of section 1310 of the real  property  actions  and
    26  proceedings  law,  as  added by section 4 of part Q of chapter 73 of the
    27  laws of 2016, is amended to read as follows:
    28    2. A lender, assignee or mortgage loan servicer shall submit or  cause
    29  to  be  submitted  to  the  department of financial services information
    30  required by the superintendent of financial services  about  any  vacant
    31  and  abandoned  residential  real  property,  as that term is defined in
    32  subdivision two of section thirteen hundred nine of this article, or  as
    33  the superintendent of financial services may otherwise define that term,
    34  or about any foreclosed property for which the lender, assignee or mort-
    35  gage  loan  servicer has a duty to maintain pursuant to section thirteen
    36  hundred seven or thirteen hundred eight of this article  within  twenty-
    37  one business days of when the lender, assignee or mortgage loan servicer
    38  learns,  or  should have learned, that such property is vacant and aban-
    39  doned, or that the property is the subject of a judgment of  foreclosure
    40  and  sale  and  remains  vacant and abandoned, as the case may be.  Such
    41  information shall, at a minimum, include: (a) the current name,  address
    42  and contact information for the lender, assignee or mortgage loan servi-
    43  cer responsible for maintaining the vacant property; (b) whether a fore-
    44  closure  action has been filed for the property in question, and, if so,
    45  the date on which the foreclosure action was commenced, or the date  the
    46  judgement of foreclosure and sale was entered, as the case may be; [and]
    47  (c)   the   last   known   address   and  contact  information  for  the
    48  [mortgagor(s)] mortgagor or mortgagors of record; (d) the date the prop-
    49  erty was determined to be vacant or abandoned, or the date the  duty  of
    50  the  lender, assignee or mortgage loan servicer to maintain the property
    51  accrued; and (e) the names of all officers of the  lender,  assignee  or
    52  mortgage loan servicer upon which service of process may be made.
    53    §  5. This act shall take effect on the first of January next succeed-
    54  ing the date on which it shall have become a law.