S T A T E O F N E W Y O R K
I N S E N A T E
March 16, 2010
Introduced by Sen. SAMPSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
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
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.
S. 7139 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.