S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10226

                          I N  A S S E M B L Y

                             March 11, 2010
                               ___________

Introduced  by  M. of A. ROSENTHAL, SILVER, WEINSTEIN, KAVANAGH, LENTOL,
  GLICK -- read once and referred to the Committee on Judiciary

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation to required notice to tenants upon a mortgage foreclosure

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 4 and 5 of section 1303 of the  real  property
actions  and proceedings law, subdivision 4 as amended and subdivision 5
as added by chapter 507 of the laws of 2009,  are  amended  to  read  as
follows:
  4.  The  notice to any tenant required by paragraph (b) of subdivision
one of this section shall be delivered within ten days of the service of
the summons and complaint. Such notice shall be in bold,  fourteen-point
type,  and  THE  PARAGRAPH  OF  THE NOTICE BEGINNING WITH THE WORDS "ALL
RENT-STABILIZED" AND ENDING WITH THE WORDS "FULL HEARING IN COURT" SHALL
BE PRINTED ENTIRELY IN CAPITAL LETTERS AND UNDERLINED.  THE  FORECLOSING
PARTY  SHALL  PROVIDE  ITS  NAME,  ADDRESS  AND  TELEPHONE NUMBER ON THE
NOTICE. THE NOTICE shall be printed on colored paper that is other  than
the  color  of  the  summons  and complaint, and the title of the notice
shall be in bold, twenty-point type. The notice  shall  be  on  its  own
page.  For  buildings  with  fewer  than five dwelling units, the notice
shall be delivered to the tenant,  by  certified  mail,  return  receipt
requested,  and by first-class mail to the tenant's address at the prop-
erty if the identity of the tenant is known to  the  plaintiff,  and  by
first-class  mail  delivered to "occupant" if the identity of the tenant
is not known to the plaintiff. For buildings with five or more  dwelling
units,  a  legible  copy of the notice shall be posted on the outside of
each entrance and exit of the building.
  5. The notice required by paragraph (b) of  subdivision  one  of  this
section shall appear as follows:
              Notice to Tenants of Buildings in Foreclosure
  New  York State Law requires that we provide you this notice about the
foreclosure process. Please read it carefully.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16304-02-0
              

A. 10226                            2

  WE, (NAME OF FORECLOSING PARTY), ARE THE  FORECLOSING  PARTY  AND  ARE
LOCATED  AT  (FORECLOSING  PARTY'S ADDRESS). WE CAN BE REACHED AT (FORE-
CLOSING PARTY'S TELEPHONE NUMBER).
  The dwelling where your apartment is located is the subject of a fore-
closure  proceeding. If you have a lease, are not the owner of the resi-
dence, and the lease requires payment of rent that at the  time  it  was
entered  into  was  not substantially less than the fair market rent for
the property, you may be entitled to remain in occupancy for the remain-
der of your lease term. If you do not have a lease, you will be entitled
to remain in your home until ninety days after any person or entity  who
acquires title to the property provides you with a notice as required by
section  1305  of  the  Real  Property  Actions and Proceedings Law. The
notice shall provide information regarding the name and address  of  the
new  owner  and  your rights to remain in your home. These rights are in
addition to any others you may have if you are a subsidized tenant under
federal, state or local law or if you  are  a  tenant  subject  to  rent
control, rent stabilization or a federal statutory scheme.
  ALL  RENT-STABILIZED TENANTS AND RENT-CONTROLLED TENANTS ARE PROTECTED
UNDER THE RENT REGULATIONS WITH RESPECT TO EVICTION AND LEASE  RENEWALS.
THESE  RIGHTS  ARE UNAFFECTED BY A BUILDING ENTERING FORECLOSURE STATUS.
THE TENANTS IN RENT-STABILIZED AND RENT-CONTROLLED BUILDINGS CONTINUE TO
BE AFFORDED THE SAME LEVEL OF PROTECTION EVEN THOUGH THE BUILDING IS THE
SUBJECT OF FORECLOSURE. EVICTIONS CAN  ONLY  OCCUR  IN  NEW  YORK  STATE
PURSUANT TO A COURT ORDER AND AFTER A FULL HEARING IN COURT.
  If  you need further information, please call the New York State Bank-
ing Department's toll-free helpline at  1-877-BANK-NYS  (1-877-226-5697)
or visit the Department's website at http://www.banking.state.ny.us.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.