senate Bill S2264

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance

download pdf

Sponsor

Bill Status


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

actions

  • 15 / Jan / 2013
    • REFERRED TO JUDICIARY
  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY

Summary

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A854
Versions:
S2264
Legislative Cycle:
2013-2014
Current Committee:
Senate Judiciary
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Amd ยง1972, RPAP L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S696, A636
2009-2010: S8100A, A6161A
2007-2008: A6419, A6419

Sponsor Memo

BILL NUMBER:S2264

TITLE OF BILL: An act to amend the real property actions and
proceedings law, in relation to title to an abandoned multiple
dwelling in a city, town or village

SUMMARY OF PROVISIONS:

Section 1: amends subdivision 3 of section 1972 of the real property
actions and proceedings law to require a mortgagee or lienor, who
institutes proceedings to foreclose, to have a receiver appointed and
ordered to enter into an agreement with the appropriate agency to
repair and correct violations of housing maintenance laws, or
alternatively to take possession of the premises themselves and enter
into a repair agreement with the city agency to prevent the agency
from taking title to an abandoned building.

Section 2: Effective 120 days after it shall have become law.

JUSTIFICATION: The purpose of the abandoned building law (article
19-A of the real property actions and proceedings law) is to allow the
city government to take title to buildings to ensure they are properly
managed after abandonment. An owner may block such proceedings by
resuming management and undertaking repairs. If the owner does not
make repairs, then mortgagees and lienors may stop article 19-A
proceedings by merely starting a foreclosure action. However, current
law does not require the mortgagee or lienor to follow through with
the foreclosure action or ensure that someone is appointed and
empowered to manage the building.

In order to correct this situation, this bill would require the
mortgagee or lienor to proceed with the foreclosure action and have a
receiver appointed who must reach a repair agreement with the housing
and development administration, or alternatively such mortgagee or
lienor may take formally take possession and enter into such an
agreement. This will ensure that the building will be effectively
managed and repaired.

LEGISLATIVE HISTORY: 2012 - S. 696 Referred to Judiciary 2010 -
S.8100A Ordered to Third Reading Cal.1893 2010 - A.6161 Referred to
Judiciary 2008- A.6419 Referred to Judiciary 2006- S.3554 Referred to
Judiciary/A.5768 Referred to Judiciary 2004- S.542 Referred to
Judiciary A.6640 Referred to Judiciary 2002- S.7002 Referred to
Judiciary/A.7748 Referred to Judiciary 2000- A.7458 Calendar 1998-
A.7764 Calendar

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect on the 120th day after it
shall have become a law and shall apply to proceedings commenced on or
after such date.

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

                                  2264

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation to title to an abandoned multiple dwelling in a city, town or
  village

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

  Section 1.  Subdivision 3 of section 1972 of the real property actions
and proceedings law, as added by chapter 864 of the  laws  of  1973,  is
amended to read as follows:
  3.  Within  five days of the service of notice on the owner, a copy of
the certification shall be served on each mortgagee, lienor  and  lessee
of  record, personally or by registered mail to the address set forth in
the recorded instrument or, if no address appears therein, to the person
at whose request the instrument was recorded.  Such copy shall,  in  the
case  of  a  mortgagee  or  lienor,  be  accompanied  by  a  notice that
proceedings pursuant to this article may be instituted unless the  mort-
gagee  or  lienor,  within  fifteen  days  of  such  mailing, either (A)
commences proceedings to foreclose the mortgage or lien  AND  MOVES  FOR
THE  APPOINTMENT OF A RECEIVER WHICH BRINGS THE BUILDING INTO COMPLIANCE
WITH THE APPLICABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM  THE  DATE
OF  APPOINTMENT OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY AGREEMENT
WITH THE DEPARTMENT or [enters into an agreement with the department  to
bring  the building] (B) TAKES POSSESSION OF THE PREMISES AS PROVIDED IN
THE MORTGAGE AND BRINGS THE BUILDING into compliance with the applicable
provisions of law WITHIN NINETY DAYS FROM THE DATE OF TAKING  POSSESSION
OR  SUCH  LONGER  PERIOD  AS  MAY  BE  ESTABLISHED BY AGREEMENT WITH THE
DEPARTMENT.  THE DEPARTMENT MAY, NOTWITHSTANDING ANYTHING TO THE CONTRA-
RY IN THIS SUBDIVISION, INSTITUTE PROCEEDINGS PURSUANT TO  THIS  ARTICLE
IF:    (I) THE APPLICATION FOR APPOINTMENT OF A RECEIVER IS DENIED, (II)
THE RECEIVER FAILS TO BRING THE BUILDING INTO COMPLIANCE WITH THE APPLI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03700-01-3

S. 2264                             2

CABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE OF  APPOINTMENT
OR  SUCH  LONGER  PERIOD  AS  MAY  BE  ESTABLISHED BY AGREEMENT WITH THE
DEPARTMENT; OR (III) THE MORTGAGEE OR  LIENOR  IN  POSSESSION  FAILS  TO
BRING THE BUILDING INTO COMPLIANCE WITH THE APPLICABLE PROVISIONS OF LAW
WITHIN  NINETY  DAYS  FROM  THE DATE OF TAKING POSSESSION OR SUCH LONGER
PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT.
  S 2.  This act shall take effect on  the  one  hundred  twentieth  day
after  it  shall  have  become  a  law  and  shall  apply to proceedings
commenced on or after such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.