senate Bill S7408

Signed by Governor

Extends the effectiveness of provisions relating to new owners of buildings for which administrators have been appointed pursuant to article 7-A of the real property actions and proceedings law

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 09 / May / 2012
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 14 / May / 2012
    • 1ST REPORT CAL.740
  • 15 / May / 2012
    • 2ND REPORT CAL.
  • 16 / May / 2012
    • ADVANCED TO THIRD READING
  • 11 / Jun / 2012
    • PASSED SENATE
  • 11 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2012
    • REFERRED TO WAYS AND MEANS
  • 14 / Jun / 2012
    • SUBSTITUTED FOR A10215
  • 14 / Jun / 2012
    • ORDERED TO THIRD READING RULES CAL.129
  • 14 / Jun / 2012
    • PASSED ASSEMBLY
  • 14 / Jun / 2012
    • RETURNED TO SENATE
  • 22 / Jun / 2012
    • DELIVERED TO GOVERNOR
  • 29 / Jun / 2012
    • SIGNED CHAP.87

Summary

Extends the effectiveness of provisions until 2015 relating to new owners of buildings for which administrators have been appointed pursuant to article 7-A of the real property actions and proceedings law.

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Bill Details

See Assembly Version of this Bill:
A10215
Versions:
S7408
Legislative Cycle:
2011-2012
Law Section:
Real Property
Laws Affected:
Amd ยง2, Chap 375 of 1999

Sponsor Memo

BILL NUMBER:S7408

TITLE OF BILL:
An act
to amend chapter 375 of the laws of 1999 amending the real property
actions and proceedings law relating to new owners of buildings for
which administrators have been appointed pursuant to article 7-A of such
law, in relation to the effectiveness thereof

SUMMARY OF PROVISIONS:
Subdivision 10 of section 778 of the Real
Property Actions and Proceedings Law (the "RPAPL") grants the City of
New York the authority to evaporate ("reduce to zero") liens on
Article 7-A properties for municipally financed repairs. Such
authority expires on June 30, 2012 and this legislation would extend
this authority until June 30, 2015. Furthermore, the City's deadline
for submitting a report to the Governor, the Senate and the Assembly,
describing the program activities carried out during the two prior
calendar years pursuant to subdivision 10, is also extended.

REASONS FOR SUPPORT:
Pursuant to Article 7-A, the Civil Court of the
City of New York appoints administrators to operate privately owned
buildings that have been effectively abandoned by their owners and
are plagued by conditions dangerous to the life, health and safety of
tenants occupying such buildings. Administrators act under court
order to collect rents; which are used for providing essential
services to tenants and for making necessary repairs. In many
instances, City capital funds are utilized to repair or replace
buildings systems or to make essential repairs.

All money expended by the City for such purposes becomes a lien on the
property. Subdivision 10 of Section 778 of the RPAPL provides that a
new owner of an Article 7-A property may take advantage of lien
evaporation only if the owner enters into a regulatory agreement with
the New York City Department of Housing Preservation and Development
("HPD"). This regulatory agreement requires that the 7-A property
must be utilized for affordable housing for a term of not less than
30 years. The regulatory agreement also requires that the new owner
has no direct or indirect interests with the prior owner.

Article 7-A has enabled the City to encourage not-for-profit and
for-profit entities to purchase 7-A buildings, thereby allowing such
properties to be developed into a source of permanent affordable
housing for families and individuals. Article 7-A evaporation is
limited exclusively to the transfer of a building to a new owner who
has no business or other interests with the original owner. This will
prevent a prior owner of a 7-A administered building from benefiting
from lien evaporation. The new owner must comply with all provisions
of the regulatory agreement entered into with HPD in order for lien
evaporation to be utilized.

Since 2002, Article 7-A has helped make necessary repairs in 34
buildings consisting of 422 units. As a result, these residential
units have been successfully integrated back into communities
throughout New York City.


This legislation will continue to allow the City of New York to help
transform effectively abandoned buildings, often in dangerous
disrepair, sources of affordable housing.

Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

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

                                  7408

                            I N  S E N A T E

                               May 9, 2012
                               ___________

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

AN  ACT to amend chapter 375 of the laws of 1999 amending the real prop-
  erty actions and proceedings law relating to new owners  of  buildings
  for  which  administrators have been appointed pursuant to article 7-A
  of such law, in relation to the effectiveness thereof

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

  Section  1.  Section 2 of chapter 375 of the laws of 1999 amending the
real property actions and proceedings law  relating  to  new  owners  of
buildings for which administrators have been appointed pursuant to arti-
cle  7-A  of such law, as amended by chapter 265 of the laws of 2009, is
amended to read as follows:
  S 2. This act shall take effect immediately and shall remain in effect
until June 30, [2012] 2015, when upon such date the provisions  of  this
act shall expire and be deemed repealed.
  S 2. This act shall take effect immediately.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15796-01-2

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