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

                                  7139

                            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
  Community Development

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

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.