senate Bill S5562

Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more

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Bill Status


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

  • 21 / May / 2013
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • 08 / Jan / 2014
    • REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Summary

Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more.

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Bill Details

Versions:
S5562
Legislative Cycle:
2013-2014
Current Committee:
Senate Housing, Construction And Community Development
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Amd ยง1325, RPAP L

Sponsor Memo

BILL NUMBER:S5562

TITLE OF BILL: An act to amend the real property actions and
proceedings law, in relation to the appointment of receivers in
actions to foreclose a mortgage

PURPOSE:

Enables agencies with the jurisdictional power to administer and
enforce the statutes, laws, rules and regulations, relating to the
operation, repair and maintenance of residential real property to
appoint a list of qualified potential receivers or managing agents.

SUMMARY OF PROVISIONS:

Subdivision one of section 1325 of the real property actions and
proceedings law is amended by the addition of section (b). The new
sections requires that cities with a population of one million or more
persons give authority to appropriate agency to create a list of
potential receivers or managing agents.

JUSTIFICATION:

At the height of the housing boom, speculators purchased multi-family
housing at inflated prices using unrealistic expectations of future
revenue. This has led to situations where owners cannot afford to pay
the debt service on the large loans they took out. Many tenants now
find their buildings to be in significant disrepair as owners have cut
back on maintenance as well.

When a property enters foreclosure, the judge appoints a receiver to
manage the property during the foreclosure process. Currently, judges
have complete discretion which maybe at no fault of the judge, can
lead to receivers that are not prepared or qualified to manage
distressed multifamily property. This leads bad properties to languish
in disrepair or decent properties to decline.

This piece of legislation will allow appropriate agencies to state who
they find qualified to be receivers or managing agents. This list
would hold these agencies accountable for their appointments, which is
not the case currently. This ensures that those who are appointed as
receivers or managing agents are qualified individuals.

LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  5562

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 21, 2013
                               ___________

Introduced  by  Sen.  RIVERA -- 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 the appointment of receivers in  actions  to  foreclose  a
  mortgage

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

  Section 1. Subdivision 1 of section 1325 of the real property  actions
and  proceedings  law,  as  added by chapter 312 of the laws of 1962, is
amended to read as follows:
  1. (A) Where the action is for the foreclosure of a mortgage providing
that a receiver may be appointed without notice, notice of a motion  for
such appointment shall not be required.
  (B)  IN  A  CITY  WITH A POPULATION OF ONE MILLION OR MORE, THE AGENCY
HAVING JURISDICTION FOR ADMINISTERING AND ENFORCING THE LAWS, RULES  AND
REGULATIONS RELATING TO THE OPERATION, REPAIR OR MAINTENANCE OF RESIDEN-
TIAL  REAL  PROPERTY MAY SUBMIT TO THE CHIEF ADMINISTRATIVE JUDGE OF THE
SUPREME COURT A LIST OF PERSONS SUCH AGENCY HAS DETERMINED TO BE  QUALI-
FIED  TO  BE APPOINTED AS A RECEIVER OR AS A MANAGING AGENT.  WHERE SUCH
AGENCY SUBMITS SUCH LIST TO THE CHIEF ADMINISTRATIVE  JUDGE,  THE  COURT
MAY  ONLY  APPOINT  A RECEIVER WHOSE NAME APPEARS ON SUCH LIST, AND SUCH
RECEIVER MAY ONLY APPOINT A MANAGING AGENT WHOSE NAME  APPEARS  ON  SUCH
LIST.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11147-01-3

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