NY State Senate Bill 2009-S1363

Archive: Last Bill Status - Stricken

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 11, 2010	recommit, enacting clause stricken
Jan 06, 2010	referred to housing, construction and community development returned to senate died in assembly
May 06, 2009	referred to judiciary delivered to assembly passed senate
Apr 28, 2009	amended on third reading (t) 1363c
Mar 05, 2009	amended on third reading 1363b
Feb 23, 2009	advanced to third reading amended 1363a
Feb 11, 2009	2nd report cal.
Feb 10, 2009	1st report cal.19
Jan 28, 2009	referred to judiciary

Votes

- May 6, 2009 - Floor Vote
  S1363
  
  Aye
  
  37
  
  Nay
  
  24
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Floor Vote: May 6, 2009
      
      aye (37)
      
      Adams
      
      Addabbo Jr.
      
      Aubertine
      
      Breslin
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Foley
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      Maziarz
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Robach
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      nay (24)
      
      Alesi
      
      Bonacic
      
      DeFrancisco
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Johnson
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Marcellino
      
      McDonald
      
      Nozzolio
      
      Ranzenhofer
      
      Saland
      
      Seward
      
      Skelos
      
      Volker
      
      Winner
      
      Young
      
      excused (1)
      
      Little

Bill Amendments

Original

C (Active)

2009-S1363 - Details

2009-S1363 - Summary

Provides special protections to tenants of properties that have been foreclosed.

2009-S1363 - Sponsor Memo

                                 BILL NUMBER:  S1363

 TITLE OF BILL :

An act to amend the real property actions and proceedings law, in
relation to foreclosure notices


 PURPOSE :

Provides special protections to tenants of properties that have been
foreclosed

 SUMMARY OF PROVISIONS :

Adds a new subdivision 6 to section 1303 of the real property actions
and proceedings law requiring tenants to be notified when the
ownership of the subject property changes ownership due to a
foreclosure proceeding. Additionally, if the new owner wishes to evict
the current tenants of the subject property within 6 months of taking
ownership, such owner shall be required to give tenants 30 days notice
of their intent to commence eviction proceedings.

 JUSTIFICATION :

While New York policymakers have been focusing on finding ways to

assist homeowners stay in their homes and asking financial
institutions to work with families to assist in that request, the
plight of renters living in foreclosed properties has been largely
forgotten.  Many properties facing foreclosure in New York --
including single-family homes and multifamily buildings -- are
investment properties occupied by these renters, leaving thousands of
families at risk of eviction. More importantly, these evictions
proceed against renters who have paid their rent on a timely and
regular basis.

When a landlord becomes in default on their mortgage they are notified
after a certain period of time that a foreclosure action has been
started against them in court. They can either choose to negotiate
with the lender on an acceptable payment plan or if so needed they can
discuss a modification of the mortgage to make the loan more afford.
If the landlord does not become current on the mortgage, the
foreclosure process will continue and the home will eventually be put
up for auction. When this home is put up for auction it can either be
purchased by an individual, another banking or lending institution, or
it can remain the property of the foreclosing lending institution and
become which is referred to as an REO property. Whatever the case may
be, the foreclosing bank will then file an eviction notice against the
landlord to clear the property. Unfortunately more often than not the
landlord is not the sole occupant of the property. In fact many times
the property is not owner-occupied and what results is scores of
tenants not realizing they have lost their shelter until there is a
Marshall's notice on the door letting them know they have to move
because the house has been sold.

On HousingPolicy.org, a project of the Center for Housing Policy, the
impact of this issue has been discussed and studied by various
non-profits.

* A 2008 study of rental housing in the United States which notes that
almost 20 percent of all foreclosures are rental properties.
* Another 2008 study indicates that rental properties could be
involved in 38 percent of foreclosures nationally and approximately
half of foreclosures in Nevada, Illinois, and New York.


This legislation would provide notice to affected tenants of a
foreclosure and of any plans to terminate their tenancy through
eviction.

* Within 30 days of taking ownership of a foreclosed property, bank or
new owner shall provide written notice of the change in ownership to
tenants and occupants by certified mail with a signed receipt. Until
this notice is served, tenants shall not be liable for paying rent to
the bank or new owner.
* Bank or new owner must file proof of service of notice of its
ownership at the commencement of any proceeding to collect rent from a
tenant or occupant of a foreclosed property.
* Bank or new owner shall provide written notice of any intent to
evict a tenant or occupant by certified mail with a signed receipt at
least 30 days prior to the commencement of an eviction proceeding.
* Bank or new owner must file proof of service of notice of its intent
to evict at the commencement of any proceeding to evict a tenant or
occupant of a foreclosed property.
* This section shall only apply where the tenant or occupant is not
the mortgagor or a member of the mortgagor's household and the lease
or tenancy is the result of an arms-length transaction.

 LEGISLATIVE HISTORY :

None. This is new legislation.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the 90th day after it shall have become
a law and shall apply to any foreclosure proceeding that takes place
on or after such date regardless if such proceeding was commenced
prior to such date.

2009-S1363 - Bill Text download pdf

2009-S1363A - Details

2009-S1363A - Summary

Provides special protections to tenants of properties that have been foreclosed.

2009-S1363A - Sponsor Memo

                                 BILL NUMBER:  S1363A

 TITLE OF BILL :

An act to amend the real property actions and proceedings law, in
relation to foreclosure notices


 PURPOSE :

Provides special protections to tenants of properties that have been
foreclosed

 SUMMARY OF PROVISIONS :

Adds a new subdivision 6 to section 1303 of the real property actions
and proceedings law requiring tenants to be notified when the
ownership of the subject property changes ownership due to a
foreclosure proceeding. Additionally, if the new owner wishes to evict
the current tenants of the subject property within 6 months of taking
ownership, such owner shall be required to give tenants 30 days notice
of their intent to commence eviction proceedings.

 JUSTIFICATION :

While New York policymakers have been focusing on finding ways to

assist homeowners stay in their homes and asking financial
institutions to work with families to assist in that request, the
plight of renters living in foreclosed properties has been largely
forgotten.  Many properties facing foreclosure in New York --
including single-family homes and multifamily buildings -- are
investment properties occupied by these renters, leaving thousands of
families at risk of eviction. More importantly, these evictions
proceed against renters who have paid their rent on a timely and
regular basis.

When a landlord becomes in default on their mortgage they are notified
after a certain period of time that a foreclosure action has been
started against them in court. They can either choose to negotiate
with the lender on an acceptable payment plan or if so needed they can
discuss a modification of the mortgage to make the loan more afford.
If the landlord does not become current on the mortgage, the
foreclosure process will continue and the home will eventually be put
up for auction. When this home is put up for auction it can either be
purchased by an individual, another banking or lending institution, or
it can remain the property of the foreclosing lending institution and
become which is referred to as an REO property. Whatever the case may
be, the foreclosing bank will then file an eviction notice against the
landlord to clear the property. Unfortunately more often than not the
landlord is not the sole occupant of the property. In fact many times
the property is not owner-occupied and what results is scores of
tenants not realizing they have lost their shelter until there is a
Marshall's notice on the door letting them know they have to move
because the house has been sold.

On HousingPolicy.org, a project of the Center for Housing Policy, the
impact of this issue has been discussed and studied by various
non-profits.

* A 2008 study of rental housing in the United States which notes that
almost 20 percent of all foreclosures are rental properties.
* Another 2008 study indicates that rental properties could be
involved in 38 percent of foreclosures nationally and approximately
half of foreclosures in Nevada, Illinois, and New York.


This legislation would provide notice to affected tenants of a
foreclosure and of any plans to terminate their tenancy through
eviction.

* Within 30 days of taking ownership of a foreclosed property, bank or
new owner shall provide written notice of the change in ownership to
tenants and occupants by certified mail with a signed receipt. Until
this notice is served, tenants shall not be liable for paying rent to
the bank or new owner.
* Bank or new owner must file proof of service of notice of its
ownership at the commencement of any proceeding to collect rent from a
tenant or occupant of a foreclosed property.
* Bank or new owner shall provide written notice of any intent to
evict a tenant or occupant by certified mail with a signed receipt at
least 30 days prior to the commencement of an eviction proceeding.
* Bank or new owner must file proof of service of notice of its intent
to evict at the commencement of any proceeding to evict a tenant or
occupant of a foreclosed property.
* This section shall only apply where the tenant or occupant is not
the mortgagor or a member of the mortgagor's household and the lease
or tenancy is the result of an arms-length transaction.

 LEGISLATIVE HISTORY :

None. This is new legislation.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the 90th day after it shall have become
a law and shall apply to any foreclosure proceeding that takes place
on or after such date regardless if such proceeding was commenced
prior to such date.

2009-S1363A - Bill Text download pdf

2009-S1363B - Details

2009-S1363B - Summary

Provides special protections to tenants of properties that have been foreclosed.

2009-S1363B - Sponsor Memo

                                 BILL NUMBER:  S1363B

 TITLE OF BILL :

An act to amend the real property actions and proceedings law, in
relation to foreclosure notices


 PURPOSE :

Provides special protections to tenants of properties that have been
foreclosed

 SUMMARY OF PROVISIONS :

Adds a new subdivision 6 to section 1303 of the real property actions
and proceedings law requiring tenants to be notified when the
ownership of the subject property changes ownership due to a
foreclosure proceeding. Additionally, if the new owner wishes to evict
the current tenants of the subject property within 6 months of taking
ownership, such owner shall be required to give tenants 30 days notice
of their intent to commence eviction proceedings,

 JUSTIFICATION :

While New York policymakers have been focusing on finding ways to

assist homeowners stay in their homes and asking financial
institutions to work with families to assist in that request, the
plight of renters living in foreclosed properties has been largely
forgotten.  Many properties facing foreclosure in New York --
including single-family homes and multifamily buildings -- are
investment properties occupied by these renters, leaving thousands of
families at risk of eviction. More importantly, these evictions
proceed against renters who have paid their rent on a timely and
regular basis.

When a landlord becomes in default on their mortgage they are notified
after a certain period of time that a foreclosure action has been
started against them in court. They can either choose to negotiate
with the lender on an acceptable payment plan or if so needed they can
discuss a modification of the mortgage to make the loan more afford.
If the landlord does not become current on the mortgage, the
foreclosure process will continue and the home will eventually be put
up for auction. When this home is put up for auction it can either be
purchased by an individual, another banking or lending institution, or
it can remain the property of the foreclosing lending institution and
become which is referred to as an REO property. Whatever the case may
be, the foreclosing bank will then file an eviction notice against the
landlord to clear the property. Unfortunately more often than not the
landlord is not the sole occupant of the property. In fact many times
the property is not owner-occupied and what results is scores of
tenants not realizing they have lost their shelter until there is a
Marshall's notice on the door letting them know they have to move
because the house has been sold.

On HousingPolicy.org, a project of the Center for Housing Policy, the
impact of this issue has been discussed and studied by various
non-profits.

* A 2008 study of rental housing in the United States which notes that
almost 20 percent of all foreclosures are rental properties.
* Another 2008 study indicates that rental properties could be
involved in 38 percent of foreclosures nationally and approximately
half of foreclosures in Nevada, Illinois, and New York.


This legislation would provide notice to affected tenants of a
foreclosure and of any plans to terminate their tenancy through
eviction.

* Within 30 days of taking ownership of a foreclosed property, bank or
new owner shall provide written notice of the change in ownership to
tenants and occupants by certified mail with a signed receipt. Until
this notice is served, tenants shall not be liable for paying rent to
the bank or new owner.
* For multiple dwellings of 4 or more units, notice of ownership may
be effected by posting notice at each entry and exit to the building.
* Bank or new owner must file proof of service of notice of its
ownership at the commencement of any proceeding to collect rent from a
tenant or occupant of a foreclosed property,
* Bank or new owner shall provide written notice of any intent to
evict a tenant or occupant by certified mail with a signed receipt at
least 30 days prior to the commencement of an eviction proceeding.
* Bank or new owner must file proof of service of notice of its intent
to evict at the commencement of any proceeding to evict a tenant or
occupant of a foreclosed property,
* This section shall only apply where the tenant or occupant is not
the mortgagor or a member of the mortgagor's family or household.

 LEGISLATIVE HISTORY :

None. This is new legislation.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the 90th day after it shall have become
a law and shall apply to any foreclosure proceeding that takes place
on or after such date regardless if such proceeding was commenced
prior to such date.

2009-S1363B - Bill Text download pdf

co-Sponsors

View additional co-sponsors

2009-S1363C (ACTIVE) - Details

2009-S1363C (ACTIVE) - Summary

Provides special protections to tenants of properties that have been foreclosed.

2009-S1363C (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1363C

 TITLE OF BILL :

An act to amend the civil practice law and rules and the real property
actions and proceedings law, in relation to evictions of tenants upon
foreclosure of a property


 PURPOSE :

Provides special protections to tenants of properties that have been
foreclosed.

 SUMMARY OF PROVISIONS :

1. Amends section 5102 of the CPLR to afford tenants in residential
buildings with fewer than 6 dwelling units 90 days notice prior to an
execution directing delivery of the premises if that property has been
foreclosed in the prior 6 months.
2. Amends section 221 of the RPAPL to afford tenants in residential
buildings with fewer than 6 dwelling units 90 days notice prior to an
execution directing delivery of the premises if that property has been
foreclosed in the prior 6 months.
3. Amends section 713 of the RPAPL to afford tenants in residential
buildings with fewer than 6 dwelling units 90 days notice prior to

commencement of a special proceeding to obtain possession the premises
if that property has been foreclosed in the prior 6 months.
4. Amends section 1301 of the RPAPL to require foreclosure summonses
to contain notices to tenants of residential buildings with fewer than
6 dwelling units.
5. Amends section 1303 of the RPAPL to give tenants in residential
buildings with fewer than 6 dwellings units notice similar to the
notice already given to homeowners in foreclosure of the availability
of housing counseling services.
6. Amends section 1305 of the RPAPL to require notice to tenants in
residential buildings with fewer than 6 dwelling units of the
commencement of a foreclosure action, the result of that action and
any resulting change in building ownership. New-tenants must also be
given notice of the pendency and status of a foreclosure action at the
time they sign a lease.
7. If notice of a change of building ownership is not given within 30
days to tenants in a residential building with fewer than 6 dwelling
units, such tenants are relieved of their obligation to pay rent until
such notice is given.
8. Amends section 1311 of the RPAPL to provide that foreclosing
entities must make good faith efforts to ascertain the identity of any
tenants residing in a covered building before serving them notice of a
foreclosure as 'john or jane doe" 9. Amends sections 1311 and 1351 of
the RPAPL to provide that tenancy of tenants not named in a
foreclosure action is not affected by the judgment in that action.

 JUSTIFICATION :

While New York policymakers have been focusing on finding ways to
assist homeowners stay in their homes and asking financial
institutions to work with families to assist in that request, the
plight of renters living in foreclosed properties has been largely
forgotten.  Many properties facing foreclosure in New York --
including single-family homes and multifamily buildings -- are
investment properties occupied by these renters, leaving thousands of
families at risk of eviction. More importantly, these evictions
proceed against renters who have paid their rent on a timely and
regular basis.


When a landlord becomes in default on their mortgage they are notified
after a certain period of time that a foreclosure action has been
started against them in court. They can either choose to negotiate
with the lender on an acceptable payment plan or if so needed they can
discuss a modification of the mortgage to make the loan more afford.
If the landlord does not become current on the mortgage, the
foreclosure process will continue and the home will eventually be put
up for auction. When this home is put up for auction it can either be
purchased by an individual, another banking or lending institution, or
it can remain the property of the foreclosing lending institution and
become which is referred to as an REO property. Whatever the case may
be, the foreclosing bank will then file an eviction notice against the
landlord to clear the property. Unfortunately more often than not the
landlord is not the sole occupant of the property. In fact many times
the property is not owner-occupied and what results is scores of
tenants not realizing they have lost their shelter until there is a
Marshal's notice on the door letting them know they have to move
because the house has been sold.

On HousingPolicy.org, a project of the Center for Housing Policy, the
impact of this issue has been discussed and studied by various
non-profits.

* A 2008 study of rental housing in the United States which notes that
almost 20 percent of all foreclosures are rental properties.
* Another 2008 study indicates that rental properties could be
involved in 38 percent of foreclosures nationally and approximately
half of foreclosures in Nevada, Illinois, and New York.

This legislation would provide notice to affected tenants of a
foreclosure and of any plans to recover possession of the property, as
well as an additional 90 days notice before any applicable proceeding
is commenced.

 LEGISLATIVE HISTORY :
None. This is new legislation.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the 90th day after it shall have become
a law.

2009-S1363C (ACTIVE) - Bill Text download pdf

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

                                 1363--C
    Cal. No. 19

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 28, 2009
                               ___________

Introduced  by  Sens. KLEIN, ADAMS, ADDABBO, BRESLIN, DIAZ, FOLEY, HUNT-
  LEY, C. JOHNSON, MONSERRATE, MONTGOMERY, ONORATO, SAVINO, STAVISKY  --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Judiciary -- reported favorably from said  committee,
  ordered  to first and second report, amended on second report, ordered
  to a third reading, and to be  reprinted  as  amended,  retaining  its
  place  in  the  order  of  third  reading -- again amended and ordered
  reprinted, retaining its place in the order of third reading --  again
  amended  and  ordered  reprinted,  retaining its place in the order of
  third reading

AN ACT to amend the civil practice law and rules and the  real  property
  actions  and proceedings law, in relation to evictions of tenants upon
  foreclosure of a property

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

  Section  1.  Section  5102  of  the  civil  practice law and rules, as
amended by chapter 531 of the laws  of  1963,  is  amended  to  read  as
follows:
  S  5102.  Enforcement of judgment or order awarding possession of real
property or a chattel. A judgment or order, or a part thereof,  awarding
possession  of  real  property  or  a  chattel  may  be  enforced  by an
execution, which shall particularly describe the property and  designate
the  party  to  whom  the  judgment  or order awards its possession. The
execution shall comply with the provisions of section 5230, except  that
it shall direct the sheriff to deliver possession of the property to the
party designated.  In an action to recover a chattel, where the judgment
awards  possession  of the chattel and in the alternative its value, the
execution shall also direct the sheriff, if the chattel cannot be  found
within  his  county,  to levy upon real and personal property as upon an
execution to enforce a money  judgment.  After  the  death  of  a  party
against  whom  a  judgment or order awarding possession of real property

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

                                                           LBD07696-20-9

S. 1363--C                          2

has been obtained, an order granting leave to issue such  execution  may
be  granted upon twenty days' notice, to be served in the same manner as
a summons, to the occupants of the real property and  to  the  heirs  or
devisees  of  the  deceased  party. IF THE REAL PROPERTY TO BE DELIVERED
INCLUDES A DWELLING UNIT LOCATED IN A  RESIDENTIAL  BUILDING  CONTAINING
LESS THAN SIX DWELLING UNITS, THE JUDGMENT IN A FORECLOSURE ACTION SHALL
PROVIDE  THAT  ONLY AN OCCUPANT OF SUCH DWELLING UNIT WHO WAS NAMED AS A
DEFENDANT IN THE FORECLOSURE ACTION AND WHO WAS SERVED WITH  THE  NOTICE
REQUIRED  BY SECTION THIRTEEN HUNDRED THREE OF THE REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW MAY BE SUBJECT TO AN EXECUTION DIRECTING DELIVERY OF
SUCH DWELLING UNIT AND SUCH OCCUPANT SHALL BE SERVED WITH  A  NINETY-DAY
NOTICE  TO QUIT, IN THE MANNER PRESCRIBED IN SECTION SEVEN HUNDRED THIR-
TY-FIVE OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW, PRIOR  TO  THE
EXECUTION  OF  THAT  PART  OF  THE  JUDGMENT  THAT  DIRECTS  DELIVERY OF
POSSESSION OF THE DWELLING UNIT.
  S 2. Section 221 of the real property actions and proceedings law,  as
added by chapter 312 of the laws of 1962, is amended to read as follows:
  S  221.  Compelling  delivery of possession of real property.  Where a
judgment affecting the title to, or the possession, enjoyment or use of,
real property allots to any person a distinct parcel of  real  property,
or  contains a direction for the sale of real property, or confirms such
an allotment or sale, it also may direct the delivery of the  possession
of  the  property  to  the  person  entitled thereto. If a party, or his
representative or successor, who is bound  by  the  judgment,  withholds
possession  from  the  person  thus declared to be entitled thereto, the
court, by order, in its discretion, besides punishing  the  disobedience
as  a  contempt,  may  require  the  sheriff  to  put  that  person into
possession.  Such an order shall be executed as if it were an  execution
for  the delivery of the possession of the property.  IF THE PROPERTY TO
BE DELIVERED INCLUDES A DWELLING UNIT LOCATED IN A RESIDENTIAL  BUILDING
CONTAINING  LESS  THAN SIX DWELLING UNITS, THE JUDGMENT IN A FORECLOSURE
ACTION SHALL PROVIDE THAT ONLY AN OCCUPANT OF SUCH DWELLING UNIT WHO WAS
NAMED AS A DEFENDANT IN THE FORECLOSURE ACTION AND WHO WAS  SERVED  WITH
THE  NOTICE  REQUIRED  BY SECTION THIRTEEN HUNDRED THREE OF THIS CHAPTER
MAY BE SUBJECT TO AN EXECUTION DIRECTING DELIVERY OF SUCH DWELLING  UNIT
AND  SUCH  OCCUPANT SHALL BE SERVED WITH A NINETY-DAY NOTICE TO QUIT, IN
THE MANNER PRESCRIBED IN SECTION SEVEN HUNDRED THIRTY-FIVE OF THIS CHAP-
TER, PRIOR TO THE EXECUTION OF THAT PART OF THE  JUDGMENT  THAT  DIRECTS
DELIVERY OF POSSESSION OF THE DWELLING UNIT.
  S 3. The opening paragraph of section 713 of the real property actions
and proceedings law is designated subdivision (a).
  S 4. Paragraph 5 of subdivision (a) of section 713 of the real proper-
ty actions and proceedings law, as amended by chapter 642 of the laws of
1976,  such  subdivision  as designated by section three of this act, is
amended to read as follows:
  5. The property has been sold  in  foreclosure  and  either  the  deed
delivered  pursuant  to  such sale, or a copy of such deed, certified as
provided in the civil practice law and  rules,  has  been  exhibited  to
[him]  THE RESPONDENT WHO IS NOT THE OCCUPANT OF A DWELLING UNIT LOCATED
IN A RESIDENTIAL BUILDING CONTAINING LESS THAN SIX DWELLING UNITS.
  S 5. Section 713 of the real property actions and proceedings  law  is
amended by adding a new subdivision (b) to read as follows:
  (B)  GROUNDS  WHERE NO LANDLORD-TENANT RELATIONSHIP EXISTS AFTER FORE-
CLOSURE SALE OF RESIDENTIAL PROPERTY. A SPECIAL PROCEEDING MAY BE  MAIN-
TAINED  UNDER  THIS  ARTICLE  TO  OBTAIN  POSSESSION  OF A DWELLING UNIT
LOCATED IN A RESIDENTIAL BUILDING  CONTAINING  LESS  THAN  SIX  DWELLING

S. 1363--C                          3

UNITS  AFTER  A  NINETY-DAY  NOTICE  TO  QUIT  HAS  BEEN SERVED UPON THE
RESPONDENT IN THE MANNER PRESCRIBED IN SECTION SEVEN HUNDRED THIRTY-FIVE
OF THIS ARTICLE, UPON THE FOLLOWING GROUND: THE PROPERTY HAS  BEEN  SOLD
IN  FORECLOSURE  AND RESPONDENT WAS NAMED AS A DEFENDANT IN THE FORECLO-
SURE ACTION AND WAS SERVED WITH THE NOTICE REQUIRED BY SECTION  THIRTEEN
HUNDRED  THREE OF THIS CHAPTER AND EITHER THE DEED DELIVERED PURSUANT TO
SUCH SALE, OR A COPY OF SUCH DEED, CERTIFIED AS PROVIDED  IN  THE  CIVIL
PRACTICE LAW AND RULES, HAS BEEN EXHIBITED TO THE RESPONDENT.
  S  6. Section 1301 of the real property actions and proceedings law is
amended by adding a new subdivision 4 to read as follows:
  4. THE SUMMONS SHALL CONTAIN A NOTICE ADVISING  THAT  A  TENANT  OF  A
DWELLING UNIT LOCATED IN A RESIDENTIAL BUILDING CONTAINING LESS THAN SIX
DWELLING UNITS WHO IS NOT THE MORTGAGOR HAS THE OPTION TO APPEAR WITHOUT
CONTESTING  THE  MERITS  OF  THE  ACTION,  BUT MAY APPEAR SOLELY FOR THE
PURPOSE OF RECEIVING THE FURTHER ORDERS OF  THE  COURT  RELATED  TO  THE
DISPOSITION  AND SALE OF THE PROPERTY AND DESCRIBING A PROCEDURE TO MAKE
SUCH AN APPEARANCE IN THE ACTION.
  S 7. Section 1303 of the real property actions and proceedings law, as
amended by chapter 472 of the laws  of  2008,  is  amended  to  read  as
follows:
  S  1303. Foreclosures; required notices. 1. The foreclosing party in a
mortgage foreclosure action, (A) which involves residential real proper-
ty consisting of owner-occupied [one-to-four-family]  ONE-TO-FIVE-FAMILY
dwellings  shall  provide  notice to the mortgagor OR (B) WHICH INVOLVES
RESIDENTIAL REAL PROPERTY  CONSISTING  OF  ONE-TO-FIVE-FAMILY  DWELLINGS
SHALL PROVIDE NOTICE TO ANY TENANT OF A DWELLING UNIT IN SUCH REAL PROP-
ERTY WHO IS NAMED AS A DEFENDANT IN THE FORECLOSURE ACTION in accordance
with  the  provisions  of  this  section  with regard to information and
assistance about the foreclosure process.
  2. The notice required by this section shall  be  delivered  with  the
summons  and  complaint  to  commence  a  foreclosure action. The notice
required by this section shall be in bold, fourteen-point type and 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.
  3. The notice required by this section TO BE GIVEN TO HOMEOWNERS shall
appear as follows:
                   Help for Homeowners in Foreclosure
  New York State Law requires that we send you  this  notice  about  the
foreclosure process. Please read it carefully.
Summons and Complaint
  You  are  in danger of losing your home. If you fail to respond to the
summons and complaint in this foreclosure  action,  you  may  lose  your
home.  Please read the summons and complaint carefully. You should imme-
diately contact an attorney or your local legal  aid  office  to  obtain
advice on how to protect yourself.
Sources of Information and Assistance
  The  State  encourages  you  to  become informed about your options in
foreclosure. In addition to seeking assistance from an attorney or legal
aid office, there are government agencies and  non-profit  organizations
that  you  may contact for information about possible options, including
trying to work with your lender during this process.
  To locate an entity near you, you  may  call  the  toll-free  helpline
maintained  by  the  New  York State Banking Department at _____________
(enter number) or visit  the  Department's  website  at  _______________
(enter web address).

S. 1363--C                          4

Foreclosure rescue scams
  Be careful of people who approach you with offers to "save" your home.
There  are  individuals  who watch for notices of foreclosure actions in
order to unfairly profit from a  homeowner's  distress.  You  should  be
extremely  careful  about any such promises and any suggestions that you
pay them a fee or sign over your deed. State law requires anyone  offer-
ing  such  services  for  profit  to  enter  into a contract which fully
describes the services they will perform and fees they will charge,  and
which  prohibits  them  from  taking  any money from you until they have
completed all such promised services.
  4. THE NOTICE REQUIRED BY THIS SECTION TO BE GIVEN  TO  TENANTS  SHALL
APPEAR AS FOLLOWS:
              HELP FOR TENANTS OF BUILDINGS IN FORECLOSURE
  NEW  YORK  STATE  LAW  REQUIRES THAT WE SEND YOU THIS NOTICE ABOUT THE
FORECLOSURE PROCESS. PLEASE READ IT CAREFULLY.
SUMMONS AND COMPLAINT
  YOU ARE IN DANGER OF LOSING YOUR HOME. IF YOU FAIL TO RESPOND  TO  THE
SUMMONS  AND  COMPLAINT  IN  THIS  FORECLOSURE ACTION, YOU MAY LOSE YOUR
HOME. YOU MAY ALSO BE EVICTED FROM YOUR HOME IF YOUR LANDLORD  IS  FORE-
CLOSED UPON. PLEASE READ THE SUMMONS AND COMPLAINT CAREFULLY.
  YOU  HAVE  THE  OPTION  TO  APPEAR  IN THIS FORECLOSURE ACTION WITHOUT
CONTESTING THE MERITS OF THE ACTION.  YOU  MAY  APPEAR  SOLELY  FOR  THE
PURPOSE  OF  RECEIVING  THE  FURTHER  ORDERS OF THE COURT RELATED TO THE
DISPOSITION AND SALE OF THE PROPERTY. THE SUMMONS DESCRIBES  THE  MANNER
IN WHICH YOU CAN MAKE SUCH AN APPEARANCE.
  YOU  SHOULD  IMMEDIATELY  CONTACT  AN ATTORNEY OR YOUR LOCAL LEGAL AID
OFFICE TO OBTAIN ADVICE ON HOW TO PROTECT YOURSELF.
SOURCES OF INFORMATION AND ASSISTANCE
  THE STATE ENCOURAGES YOU TO BECOME  INFORMED  ABOUT  YOUR  OPTIONS  IN
FORECLOSURE. IN ADDITION TO SEEKING ASSISTANCE FROM AN ATTORNEY OR LEGAL
AID  OFFICE,  THERE ARE GOVERNMENT AGENCIES AND NON-PROFIT ORGANIZATIONS
THAT YOU MAY CONTACT FOR INFORMATION ABOUT POSSIBLE  OPTIONS,  INCLUDING
TRYING  TO  WORK  WITH YOUR LANDLORD'S LENDER OR A NEW OWNER DURING THIS
PROCESS IN ORDER TO PREVENT YOUR EVICTION AND TO ENSURE THAT YOUR DWELL-
ING IS PROPERLY MAINTAINED.
  TO LOCATE AN ENTITY NEAR YOU, YOU  MAY  CALL  THE  TOLL-FREE  HELPLINE
MAINTAINED  BY  THE  NEW  YORK  STATE  DIVISION OF HOUSING AND COMMUNITY
RENEWAL AT            (ENTER NUMBER) OR VISIT THE DIVISION'S WEBSITE  AT
(ENTER  WEB  ADDRESS).  IF YOUR RENTAL UNIT IS LOCATED IN NEW YORK CITY,
YOU MAY ALSO CALL THE HELPLINE MAINTAINED BY THE NEW YORK  CITY  DEPART-
MENT  OF  HOUSING PRESERVATION AND DEVELOPMENT AT           OR VISIT THE
DEPARTMENT'S WEBSITE AT          (ENTER WEB ADDRESS).
  5. The banking department,  THE  DIVISION  OF  HOUSING  AND  COMMUNITY
RENEWAL  OR  THE  NEW  YORK  CITY DEPARTMENT OF HOUSING PRESERVATION AND
DEVELOPMENT shall prescribe the telephone number and web address  to  be
included in the APPROPRIATE notice.
  [5]  6.  The banking department, THE DIVISION OF HOUSING AND COMMUNITY
RENEWAL OR THE NEW YORK CITY  DEPARTMENT  OF  HOUSING  PRESERVATION  AND
DEVELOPMENT  shall  post on its website or otherwise make readily avail-
able the name and contact information of government agencies or non-pro-
fit organizations that may be contacted for information about the  fore-
closure   process,   EVICTION   PREVENTION,  AND  REQUIREMENTS  FOR  THE
MAINTENANCE OF PROPERTIES DURING THE PENDENCY  OF  FORECLOSURE  ACTIONS,
including  maintaining  a toll-free helpline to disseminate the informa-
tion required by this section.

S. 1363--C                          5

  S 8. The real property actions  and  proceedings  law  is  amended  by
adding a new section 1305 to read as follows:
  S 1305. NOTICES TO TENANTS. 1. IN A MORTGAGE FORECLOSURE ACTION, WHICH
INVOLVES  RESIDENTIAL  REAL  PROPERTY  CONSISTING  OF ONE-TO-FIVE-FAMILY
DWELLINGS, A PLAINTIFF UPON COMMENCEMENT OF THE ACTION OR DISCONTINUANCE
OF THE ACTION, THE PREVAILING PLAINTIFF, A PLAINTIFF TAKING  A  DEED  IN
LIEU  OF  FORECLOSURE,  A RECEIVER APPOINTED IN SUCH ACTION, A PURCHASER
FROM THE MORTGAGOR OR THE PURCHASER AT A FORECLOSURE SALE PURSUANT TO  A
JUDGMENT  OF  FORECLOSURE SHALL PROVIDE NOTICE OF THE DATE OF EVERY SUCH
OCCURRENCE TO ANY TENANT RESIDING IN SUCH PROPERTY WITHIN THIRTY DAYS OF
THE COMMENCEMENT OF THE ACTION, DISCONTINUANCE OF THE  ACTION,  JUDGMENT
OF FORECLOSURE, APPOINTMENT OF A RECEIVER OR THE CLOSING OF TITLE PURSU-
ANT  TO  A FORECLOSURE SALE OR OTHER DISPOSITION.  THEREAFTER, UNTIL THE
CLOSING OF TITLE PURSUANT TO A FORECLOSURE SALE OR OTHER DISPOSITION  OF
THE  PROPERTY,  SUCH  NOTICE  OF  EVERY  SUCH  OCCURRENCE  SHALL ALSO BE
PROVIDED TO A NEW TENANT AT THE TIME SUCH NEW TENANT ENTERS INTO A LEASE
OR OTHER RENTAL AGREEMENT AND THEREAFTER FOR  A  DWELLING  UNIT  IN  THE
PROPERTY.
  2.  THE  NOTICE  SHALL ADVISE THE TENANT OF THE OCCURRENCE OF AN EVENT
DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, AS WELL AS  OF  THE  NAME,
ADDRESS  AND  TELEPHONE  NUMBER  OF THE PERSON OR ENTITY RESPONSIBLE FOR
MAINTENANCE OF THE PROPERTY  AND  ENTITLED  TO  COLLECT  RENT  FROM  THE
TENANT.
  3. THE NOTICE SHALL BE PERSONALLY SERVED UPON THE TENANT, OR SERVED BY
CERTIFIED  MAIL,  RETURN RECEIPT REQUESTED, AND ALSO BY FIRST-CLASS MAIL
TO THE TENANT'S ADDRESS AT THE PROPERTY. THE NOTICE SHALL BE ACCOMPANIED
BY AN ACKNOWLEDGEMENT OF SERVICE THAT SHALL BE SIGNED BY THE  TENANT  SO
SERVED.  IF A TENANT REFUSES TO SIGN THE ACKNOWLEDGEMENT OF SERVICE, THE
SERVING PARTY MAY FILE WITH A COURT A SWORN AFFIDAVIT STATING THE MANNER
IN WHICH THE TENANT WAS SERVED AND THAT THE TENANT REFUSED TO SIGN  SUCH
ACKNOWLEDGMENT.
  4.  A  TENANT WHO IS NOT SERVED BY THE NOTICE REQUIRED BY THIS SECTION
WITHIN THE TIME PERIOD FOR SERVICE OF SUCH NOTICE SHALL  NOT  BE  LIABLE
FOR  ANY  RENT FROM THE EXPIRATION OF SUCH TIME PERIOD UNTIL SUCH NOTICE
IS DULY SERVED UPON SUCH TENANT.
  5. A TENANT ENTITLED TO NOTICE PURSUANT TO THIS SECTION SHALL  NOT  BE
SUBJECT  TO  AN  EXECUTION PURSUANT TO SECTION TWO HUNDRED TWENTY-ONE OF
THIS CHAPTER OR SECTION FIFTY-ONE HUNDRED TWO OF THE CIVIL PRACTICE  LAW
AND RULES OR BE MADE A DEFENDANT OR RESPONDENT IN ANY ACTION OR PROCEED-
ING  SEEKING  POSSESSION OF SUCH TENANT'S DWELLING UNIT BROUGHT PURSUANT
TO SUBDIVISION (B) OF SECTION SEVEN HUNDRED  THIRTEEN  OF  THIS  CHAPTER
UNLESS  SUCH  TENANT  WAS  PREVIOUSLY SERVED WITH THE NOTICE REQUIRED BY
THIS SECTION. THE NOTICE REQUIRED BY THIS SECTION SHALL BE  IN  ADDITION
TO  THE  NOTICES  TO QUIT REQUIRED BY SECTION TWO HUNDRED TWENTY-ONE AND
SUBDIVISION (B) OF SECTION SEVEN HUNDRED THIRTEEN  OF  THIS  CHAPTER  OR
SECTION FIFTY-ONE HUNDRED TWO OF THE CIVIL PRACTICE LAW AND RULES.
  6.  ANY PROVISION OF A LEASE OR RENTAL AGREEMENT PURPORTING TO WAIVE A
PROVISION OF THIS SECTION IS NULL AND VOID.
  S 9. Section 1311 of the real property actions and proceedings law  is
amended by adding two new subdivisions 5 and 6 to read as follows:
  5.  A PERSON MAY NOT BE NAMED AS A PARTY DEFENDANT BY USE OF A PSEUDO-
NYM UNLESS PLAINTIFF HAS SUBMITTED TO THE COURT AN  AFFIDAVIT  ATTESTING
TO THE INQUIRY UNDERTAKEN SO AS TO DEMONSTRATE THAT REASONABLE AND DILI-
GENT EFFORTS WERE MADE TO ASCERTAIN THE IDENTITY OF SUCH DEFENDANT.
  6.  THE  TENANCY  OF A TENANT WHO IS NOT NAMED AS A PARTY DEFENDANT IN
THE ACTION SHALL NOT BE AFFECTED IN ANY  WAY  BY  THE  JUDGMENT  IN  THE

S. 1363--C                          6

ACTION.   THE INTEREST OF THE PREVAILING PLAINTIFF IN THE ACTION AND ANY
PURCHASER PURSUANT TO A FORECLOSURE SALE SHALL BE SUBJECT TO THE  INTER-
EST OF ANY SUCH TENANT.
  S 10. Section 1351 of the real property actions and proceedings law is
amended by adding a new subdivision 4 to read as follows:
  4.  THE  TENANCY  OF A TENANT WHO IS NOT NAMED AS A PARTY DEFENDANT IN
THE ACTION SHALL NOT BE AFFECTED IN ANY  WAY  BY  THE  JUDGMENT  IN  THE
ACTION.   THE INTEREST OF THE PREVAILING PLAINTIFF IN THE ACTION AND ANY
PURCHASER PURSUANT TO A FORECLOSURE SALE SHALL BE SUBJECT TO THE  INTER-
EST OF ANY SUCH TENANT.
  S  11.  This act shall take effect on the ninetieth day after it shall
have become a law.

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