Bill Text: NY S07167 | 2017-2018 | General Assembly | Introduced

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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 7-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S07167 Detail]

Download: New_York-2017-S07167-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7167
                    IN SENATE
                                       (Prefiled)
                                     January 3, 2018
                                       ___________
        Introduced  by  Sens.  KLEIN, AVELLA, BAILEY, HAMILTON, PERALTA, SAVINO,
          VALESKY -- 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13629-02-7
        S. 7167                             2
     1  the  right  to  enforce the obligations described in this section in any
     2  court of competent jurisdiction after at least seven days notice to  the
     3  plaintiff  in  the  foreclosure  action  unless  emergency  repairs  are
     4  required.  Any  entity  acting pursuant to this subdivision shall have a
     5  cause of action in any  court  of  competent  jurisdiction  against  the
     6  plaintiff  in  the  foreclosure  action  to  recover costs incurred as a
     7  result of maintaining the property.   In  addition,  the  department  of
     8  financial services or the municipality in which the residential property
     9  is  located  may impose a civil penalty of five hundred dollars for each
    10  day a party required to maintain property pursuant to this section fails
    11  to do so or fails to comply with  the  provisions  of  section  thirteen
    12  hundred  ten of this article. The authority provided by this subdivision
    13  shall be in addition to, and shall not be deemed to diminish or  reduce,
    14  any  rights  of the parties described in this section under existing law
    15  against the mortgagor of such property  for  failure  to  maintain  such
    16  property.
    17    §  3. Section 1308 of the real property actions and proceedings law is
    18  amended by adding a new subdivision 7-a to read as follows:
    19    7-a. The department of financial services shall cause an inspection of
    20  the subject property to be conducted, with regard to compliance with the
    21  provisions of this section within four months of the date  the  servicer
    22  registers  with  the  statewide vacant and abandoned property electronic
    23  registry pursuant to section thirteen hundred ten of this  article,  and
    24  every six months thereafter until such time as the property is no longer
    25  subject to the provisions of this section.
    26    §  4.  Subdivision  2 of section 1310 of the real property actions and
    27  proceedings law, as added by section 4 of part Q of chapter  73  of  the
    28  laws of 2016, is amended to read as follows:
    29    2.  A lender, assignee or mortgage loan servicer shall submit or cause
    30  to be submitted to the  department  of  financial  services  information
    31  required  by  the  superintendent of financial services about any vacant
    32  and abandoned residential real property, as  that  term  is  defined  in
    33  subdivision  two of section thirteen hundred nine of this article, or as
    34  the superintendent of financial services may otherwise define that term,
    35  or about any foreclosed property for which the lender, assignee or mort-
    36  gage loan servicer has a duty to maintain pursuant to  section  thirteen
    37  hundred  seven  or thirteen hundred eight of this article within twenty-
    38  one business days of when the lender, assignee or mortgage loan servicer
    39  learns, or should have learned, that such property is vacant  and  aban-
    40  doned,  or that the property is the subject of a judgment of foreclosure
    41  and sale and remains vacant and abandoned, as the case  may  be.    Such
    42  information  shall, at a minimum, include: (a) the current name, address
    43  and contact information for the lender, assignee or mortgage loan servi-
    44  cer responsible for maintaining the vacant property; (b) whether a fore-
    45  closure action has been filed for the property in question, and, if  so,
    46  the  date on which the foreclosure action was commenced, or the date the
    47  judgement of foreclosure and sale was entered, as the case may be; [and]
    48  (c)  the  last  known  address   and   contact   information   for   the
    49  [mortgagor(s)] mortgagor or mortgagors of record; (d) the date the prop-
    50  erty  was  determined to be vacant or abandoned, or the date the duty of
    51  the lender, assignee or mortgage loan servicer to maintain the  property
    52  accrued;  and  (e)  the names of all officers of the lender, assignee or
    53  mortgage loan servicer upon which service of process may be made.
    54    § 5. This act shall take effect on the first of January next  succeed-
    55  ing the date on which it shall have become a law.