Senate Bill S663

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

                                   663

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 12, 2009
                               ___________

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

AN ACT to amend the lien law, in relation  to  authorizing  a  lien  for
  common charges owed to a homeowners' association

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

  Section 1. The lien law is amended by adding a  new  section  42-a  to
read as follows:
  S  42-A. LIEN FOR COMMON CHARGES OWED TO A HOMEOWNERS' ASSOCIATION. 1.
THE BOARD OF THE HOMEOWNERS' ASSOCIATION, ON BEHALF OF  THE  ASSOCIATION
MEMBERS,  SHALL  HAVE  A LIEN ON A MEMBER'S REAL PROPERTY FOR THE UNPAID
COMMON CHARGES THEREOF, TOGETHER WITH INTEREST  THEREON,  PRIOR  TO  ALL
OTHER  LIENS EXCEPT ONLY (I) LIENS FOR TAXES ON THE UNIT IN FAVOR OF ANY
ASSESSING UNIT, SCHOOL  DISTRICT,  SPECIAL  DISTRICT,  COUNTY  OR  OTHER
TAXING UNIT, AND (II) ALL SUMS UNPAID ON A FIRST OR SUBORDINATE MORTGAGE
OF RECORD.
  2.  UPON  THE  SALE  OR  CONVEYANCE OF SUCH REAL PROPERTY, SUCH UNPAID
COMMON CHARGES SHALL BE PAID OUT OF THE SALE PROCEEDS OR BY THE GRANTEE.
ANY GRANTOR OR GRANTEE OF SUCH PROPERTY SHALL BE ENTITLED TO A STATEMENT
FROM THE OWNER OR HOMEOWNERS' ASSOCIATION SETTING FORTH  THE  AMOUNT  OF
THE UNPAID COMMON CHARGES ACCRUED AGAINST THE PROPERTY, AND NEITHER SUCH
GRANTOR  NOR GRANTEE SHALL BE LIABLE FOR NOR SHALL THE PROPERTY CONVEYED
BE SUBJECT TO A LIEN FOR ANY UNPAID COMMON CHARGES AGAINST SUCH PROPERTY
ACCRUED PRIOR TO SUCH CONVEYANCE IN EXCESS OF  THE  AMOUNT  THEREIN  SET
FORTH.
  3. THE LIEN SHALL BE EFFECTIVE FROM AND AFTER THE FILING IN THE OFFICE
OF THE RECORDING OFFICER IN WHICH THE DEED TO THE REAL PROPERTY IS FILED
A  VERIFIED  NOTICE OF LIEN STATING THE NAME (IF ANY) AND ADDRESS OF THE
PROPERTY, THE LIBER AND PAGE OF RECORD OF THE PROPERTY DEED, THE NAME OF
THE RECORD OWNER OF THE REAL PROPERTY, THE METES AND BOUNDS OF THE PROP-
ERTY, THE AMOUNT AND PURPOSE FOR WHICH DUE, AND THE DATE WHEN  DUE;  AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05305-01-9
              

S. 663                              2

SHALL CONTINUE IN EFFECT UNTIL ALL SUMS SECURED THEREBY, WITH THE INTER-
EST  THEREON,  SHALL  HAVE BEEN FULLY PAID OR UNTIL EXPIRATION SIX YEARS
FROM THE DATE OF FILING, WHICHEVER OCCURS  SOONER.  IN  THE  EVENT  THAT
UNPAID  COMMON  CHARGES ARE DUE, ANY MEMBER OF THE BOARD OF THE HOMEOWN-
ERS' ASSOCIATION MAY FILE A NOTICE OF LIEN AS DESCRIBED IN THIS  SECTION
IF  NO  NOTICE OF LIEN HAS BEEN FILED WITHIN SIXTY DAYS AFTER THE UNPAID
CHARGES ARE DUE. UPON SUCH PAYMENT THE  REAL  PROPERTY  OWNER  SHALL  BE
ENTITLED  TO  AN INSTRUMENT DULY EXECUTED AND ACKNOWLEDGED CERTIFYING TO
THE FACT OF PAYMENT.
  4. A HOMEOWNERS' ASSOCIATION LIEN ON REAL PROPERTY FOR  UNPAID  COMMON
CHARGES  THEREOF  MAY  BE  ENFORCED AGAINST SUCH PROPERTY, AND AGAINST A
PERSON LIABLE FOR THE DEBT UPON WHICH THE LIEN IS FOUNDED, BY AN ACTION,
BY THE LIENOR IN THE SAME COURT AND IN THE SAME MANNER AS  A  MECHANIC'S
LIEN.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.