NY State Senate Bill S4781A

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
In Committee
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- Passed Senate
- Passed Assembly
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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 03, 2016	print number 4781a
Feb 03, 2016	amend (t) and recommit to housing, construction and community development
Jan 06, 2016	referred to housing, construction and community development
Apr 15, 2015	referred to housing, construction and community development

Bill Amendments

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Co-Sponsors

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S4781 - Details

See Assembly Version of this Bill:: A6932
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1307, add §§1307-a & 1308, RPAP L; add §91-g, St Fin L

S4781 - Summary

Establishes the "Abandoned Property Neighborhood Relief Act of 2016"; relates to the duty of the mortgagee or its loan servicing agent to maintain property secured by a delinquent mortgage.

S4781 - Sponsor Memo

BILL NUMBER:S4781

TITLE OF BILL:

An act establishing the "New York state abandoned property
neighborhood relief act of 2015"; and to amend the real property
actions and proceedings law, in relation to the duty of the mortgagee
or its loan servicing agent to maintain property secured by delinquent
mortgage and in relation to special foreclosure proceedings for vacant
abandoned property; and to amend the state finance law, in relation to
establishing the abandoned property neighborhood relief fund

PURPOSE:

To help community residents and municipalities throughout the State
better address the growing problem of vacant and abandoned residential
properties by creating a statewide registry of such properties and
imposing a duty on mortgagees and their loan servicing agents to
report these properties to the registry and take earlier
(pre-foreclosure) action to identify, secure and maintain them.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 establishes the title of the Act as the "New York State
Abandoned Property Neighborhood Relief Act of 2015."

Section 2 amends section 1307 of the Real Property Actions and
Proceedings Law to: create a definition of "vacant and abandoned"
residential real property; expand the existing duty of a mortgagee to
maintain vacant residential real property to include pre-foreclosure
"vacant and abandoned" residential property as defined in the bill,
and to expand such duty to the mortgagee's loan servicing agent;
establish a periodic inspection requirement for mortgagees and loan
servicing agents to determine if residential real property subject to
a delinquent mortgage is currently occupied; and make it unlawful for
a mortgagee or loan servicing agent, or a person acting on their
behalf, to enter residential real property that is not vacant or
abandoned for the purpose of forcing, intimidating, harassing or
coercing a lawful occupant thereof to vacate the property in order to
render it vacant and abandoned.

Section 3 adds a new section 1307-a to the Real Property Actions and
Proceedings Law to: require the Attorney General to establish and
maintain a statewide electronic Vacant and Abandoned Property Registry
that shall be accessible to local officials across the State; require
mortgagees or their agents to promptly submit to the statewide
Registry information about vacant and abandoned properties, including
but not limited to the current name, address and contact information
for the lender or servicer responsible for maintaining the property,
whether a foreclosure action has been filed, and any updated material
information when it becomes available; require mortgagees or their
loan servicing agents to provide prompt written notice to mortgagors,
when the mortgage on their residential real property is three monthly
payments past due, of the mortgagor's right to occupy the property
until he or she is ordered to leave by a court of competent
jurisdiction; require the Attorney General to take appropriate
measures to ensure that the Federal National Mortgage Association and


the Federal Home Loan Mortgage Association are promptly notified when
certain properties are added to the electronic registry; authorize a
municipality wherein vacant and abandoned residential property is
located to intervene as of right in a foreclosure action involving the
property for the purpose of requesting injunctive relief to ensure the
property is maintained in accordance with law and that the foreclosure
action is timely prosecuted; require the Attorney General to establish
and maintain a toll-free hotline that community members concerned
about vacant and abandoned properties can call to report such
properties and to obtain information relating to such properties,
including but not limited to whether a specific property is listed on
the Attorney General's statewide Vacant and Abandoned Property
Registry and, if so, the identity of the mortgagee or loan servicing
company responsible for maintaining the property; and authorize the
Attorney General, and any affected locality upon written notice to the
Attorney General, to seek injunctive relief and/or civil penalties
against mortgagees and/or their agents for violations of RPAPL
sections 1307 and 1307-a

Section 4 requires that a part of the Supreme Court be devoted to
foreclosure actions involving property alleged to be vacant and
abandoned.

Section 5 adds a new section 1308 to the Real Property Actions and
Proceedings Law to establish a special foreclosure proceeding for
vacant and abandoned residential real property.

Section 6 adds a new section 91-g to the State Finance Law to create
the Abandoned Property Neighborhood Relief Fund, to be comprised of
all civil penalties collected by the Attorney General in enforcement
actions under RPAPL section 1307-a(3)(c), and to establish a procedure
for the disbursement to localities of Enforcement Assistance Grants
from available monies in such fund to aid such localities in the
enforcement of RPAPL sections 1307 and 1307-a.

Section 7 establishes an effective date of 90 days after the act shall
have become a law.

EXISTING LAW:

Section 1307 of the Real Property Actions and Proceedings Law
currently requires a plaintiff in a mortgage foreclosure action who
obtains a Judgment of Foreclosure and Sale involving residential real
property that is or becomes vacant to maintain the property until such
time as ownership of the property has been transferred through the
closing of title in foreclosure or other disposition, and the deed is
duly recorded.

JUSTIFICATION:

Vacant and abandoned residential properties securing delinquent
mortgages fall into disrepair and harm neighboring properties and the
surrounding community. These properties are a blight on neighborhoods
because they are often boarded up, inhabited by squatters or used for
criminal purposes. When a vacant and abandoned property is not
maintained for an extended period of time, there is a decline in the
community's real estate market and the state's property tax base.


There is also an increased likelihood of crime in and around the
property. There are instances of such properties being used by
criminals to manufacture and/or distribute illegal drugs.
Municipalities are often forced to expend taxpayer funds to prevent a
vacant and abandoned property from becoming a public hazard. If a
municipality is forced to care for a significant number of vacant and
abandoned properties, its budget can be depleted quickly.

Current law, enacted in 2009, imposes a duty on plaintiff-mortgagees
to maintain vacant residential properties only after a Judgment of
Foreclosure and Sale has been entered. Unfortunately, this law has
proven inadequate to address the growing number of vacant and
abandoned properties falling into disrepair across New York State. A
survey in one jurisdiction showed that most vacant and abandoned
properties were not subject to foreclosure actions and, if they were,
the cases had not proceeded to Judgment of Foreclosure and Sale. In
many instances, the plaintiff-mortgagee abandoned the foreclosure
effort. In others, the plaintiff-mortgagee sought to vacate its own
Judgment of Foreclosure and Sale, bringing the property outside of the
existing maintenance requirement imposed on the plaintiff-mortgagee by
statute. There is also evidence showing that current and former New
York homeowners have been misled into believing they need to leave
their homes earlier in the foreclosure process than they actually have
to, resulting in even more vacant and abandoned properties.

In response to this growing threat to communities across New York
State, the Abandoned Property Neighborhood Relief Act of 2015 will
ensure that homeowners are provided with early notice that they are
legally entitled to remain in their homes until ordered to leave by a
court and will require mortgagees and their loan servicers and agents
to identify, secure and maintain vacant and abandoned properties much
earlier in the mortgage delinquency timeline. It will also require
that they electronically register these properties with the
newly-created Vacant and Abandoned Property Registry to be established
and maintained by the Attorney General. The Registry, in turn, will
provide a much needed and readily available source of information on
vacant and abandoned residential properties to local officials
throughout the State, and will be supplemented by a toll-free hotline
that community residents can use to report suspected vacant and
abandoned properties to the Attorney General and receive information
regarding the status of registered properties, including the identity
of the mortgagee or agent responsible for maintaining them. The Act
also would establish in the State Finance Law a new Abandoned Property
Neighborhood Relief Fund, to be comprised of civil penalty monies
collected by the Attorney General in enforcement actions under the
Act, which monies would be used to fund Enforcement Assistance Grants
to aid localities in their enforcement of the Act.

PRIOR LEGISLATIVE HISTORY:

2014: S 7350-A/Klein - referred to Judiciary

FISCAL IMPLICATIONS:

It is expected that there will be costs to the Office of the Attorney
General for the establishment and maintenance of the statewide Vacant


and Abandoned Property Registry and the toll-free community resident
hotline established by the Act.

EFFECTIVE DATE:

90 days.

S4781 - Bill Text download pdf

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

                                  4781

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sens.  KLEIN,  VALESKY,  SAVINO, CARLUCCI, AVELLA -- (at
  request of the Attorney General) -- read twice  and  ordered  printed,
  and  when  printed  to  be  committed  to  the  Committee  on Housing,
  Construction and Community Development

AN ACT establishing the "New York state abandoned property  neighborhood
  relief  act  of  2015";  and  to  amend  the real property actions and
  proceedings law, in relation to the duty of the mortgagee or its  loan
  servicing  agent  to  maintain property secured by delinquent mortgage
  and in relation to special foreclosure proceedings  for  vacant  aban-
  doned  property;  and  to  amend the state finance law, in relation to
  establishing the abandoned property neighborhood relief fund

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

  Section  1.  This act shall be known and may be cited as the "New York
state abandoned property neighborhood relief act of 2015".
  S 2. Section 1307 of the real property actions and proceedings law, as
added by chapter 507 of the laws of 2009, is amended to read as follows:
  S 1307. Duty to maintain [foreclosed] property SECURED  BY  DELINQUENT
MORTGAGE.   1. [A plaintiff in a mortgage foreclosure action who obtains
a judgment of foreclosure and sale pursuant to section thirteen  hundred
fifty-one  of  this  article,  involving  residential  real property, as
defined in section thirteen  hundred  five  of  this  article,  that  is
vacant,  or  becomes  vacant  after the issuance of such judgment, or is
abandoned by the mortgagor but occupied by a tenant] (A) WITH RESPECT TO
A MORTGAGE LOAN SECURED BY RESIDENTIAL REAL PROPERTY, as  defined  under
section  thirteen  hundred  five  of this article, WHERE THE PROPERTY IS
"VACANT AND ABANDONED" AS DEFINED IN PARAGRAPH (B) OF  THIS  SUBDIVISION
OR  A FORECLOSURE ACTION HAS BEEN COMMENCED AGAINST THE PROPERTY BECAUSE
THE MORTGAGOR HAS FAILED TO MAINTAIN THE PROPERTY OR WHERE A JUDGMENT OF
FORECLOSURE UNDER SECTION THIRTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE HAS
BEEN OBTAINED ON THE PROPERTY THAT HAS BEEN ABANDONED BY  THE  MORTGAGOR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09229-04-5

S. 4781                             2

BUT  REMAINS  OCCUPIED BY A TENANT LAWFULLY IN POSSESSION, THE MORTGAGEE
OR ITS LOAN SERVICING AGENT shall maintain such property until such time
as ownership has been transferred through the closing of title in  fore-
closure,  or  other disposition, and the deed for such property has been
duly recorded; provided, however, that if a municipality or governmental
entity holds a mortgage [subordinate to one or more  mortgages]  on  the
residential real property, the municipality or governmental entity shall
not be subject to the requirements of this section.
  (B)  FOR  PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL BE
DEEMED "VACANT AND ABANDONED" WHEN:  (I) AT LEAST THREE MONTHLY PAYMENTS
ARE PAST DUE ON THE MORTGAGE LOAN OR  THE  MORTGAGOR  HAS  INFORMED  THE
MORTGAGEE  OR  LOAN SERVICING COMPANY IN WRITING THAT THE MORTGAGOR DOES
NOT INTEND TO OCCUPY THE PROPERTY IN THE FUTURE; AND  (II)  EITHER:  (A)
THERE IS A REASONABLE BASIS TO BELIEVE THAT THE PROPERTY IS NOT OCCUPIED
WHICH  SHALL  BE DETERMINED IN ACCORDANCE WITH THE REQUIREMENTS OF PARA-
GRAPH (B-1) OF THIS SUBDIVISION; (B) SUCH RESIDENTIAL REAL PROPERTY IS A
RISK TO THE HEALTH, SAFETY OR WELFARE OF THE PUBLIC OR ANY ADJOINING  OR
ADJACENT  PROPERTY OWNERS, DUE TO ACTS OF VANDALISM, LOITERING, CRIMINAL
CONDUCT, OR PHYSICAL DESTRUCTION OR DETERIORATION OF  THE  PROPERTY;  OR
(C)  THE RELEVANT GOVERNMENTAL AUTHORITY HAS DECLARED THE PROPERTY UNFIT
FOR OCCUPANCY AND TO REMAIN VACANT AND UNOCCUPIED OR TO  BE  DEMOLISHED.
WHERE  A MORTGAGEE OR LOAN SERVICING COMPANY HAS RECEIVED WRITTEN NOTICE
FROM A MORTGAGOR THAT SUCH MORTGAGOR DOES  NOT  INTEND  TO  OCCUPY  SUCH
PROPERTY  IN  THE  FUTURE, THE MORTGAGEE OR LOAN SERVICING COMPANY SHALL
PROMPTLY NOTIFY THE ATTORNEY GENERAL IN WRITING OF ITS RECEIPT  OF  SUCH
NOTIFICATION AND THE DATE THEREOF.
  (B-1)  FOR PURPOSES OF PARAGRAPH (B) OF THIS SUBDIVISION, A REASONABLE
BASIS TO BELIEVE THAT RESIDENTIAL REAL PROPERTY IS NOT  OCCUPIED  SHALL,
AT  A  MINIMUM,  BE BASED UPON PERIODIC INSPECTIONS OF SUCH PROPERTY, AT
LEAST THIRTY DAYS APART, WHERE  TWO  OR  MORE  SUCH  INSPECTIONS  REVEAL
EVIDENCE  OF ABANDONMENT. FOR PURPOSES OF THIS SUBDIVISION, "EVIDENCE OF
ABANDONMENT" SHALL INCLUDE BUT NOT BE LIMITED TO ANY  OF  THE  FOLLOWING
CONDITIONS: (I) OVERGROWN OR DEAD VEGETATION; (II) ACCUMULATION OF NEWS-
PAPERS,  CIRCULARS,  FLYERS  OR  MAIL;  (III)  PAST DUE UTILITY NOTICES,
DISCONNECTED UTILITIES, OR UTILITIES NOT IN USE;  (IV)  ACCUMULATION  OF
TRASH  REFUSE  OR  OTHER DEBRIS; (V) ABSENCE OF WINDOW COVERINGS SUCH AS
CURTAINS, BLINDS, OR SHUTTERS; (VI) ONE  OR  MORE  BOARDED,  MISSING  OR
BROKEN  WINDOWS; (VII) THE PROPERTY IS OPEN TO CASUAL ENTRY OR TRESPASS;
OR (VIII) THE PROPERTY HAS A BUILDING OR STRUCTURE THAT  IS  OR  APPEARS
STRUCTURALLY  UNSOUND  OR HAS ANY OTHER CONDITION THAT PRESENTS A POTEN-
TIAL HAZARD OR DANGER TO THE SAFETY OF PERSONS.
  (B-2) FOR PURPOSES OF DETERMINING WHETHER RESIDENTIAL REAL PROPERTY IS
OCCUPIED, THE MORTGAGEE OR LOAN SERVICING COMPANY SHALL CONDUCT OR CAUSE
TO BE CONDUCTED PERIODIC INSPECTIONS OF  SUCH  PROPERTY  AT  LEAST  ONCE
EVERY  THIRTY  DAYS  COMMENCING  NO LATER THAN SEVEN DAYS AFTER THE DATE
UPON WHICH TWO MORTGAGE PAYMENTS ON SUCH PROPERTY ARE PAST DUE, OR SOON-
ER IF SO REQUIRED BY FEDERAL STATUTE, RULE, REGULATION, PUBLISHED  GUID-
ANCE,  OR  OTHER  REQUIREMENTS  OF THE FEDERAL NATIONAL MORTGAGE ASSOCI-
ATION, FEDERAL HOME LOAN MORTGAGE CORPORATION OR FEDERAL HOUSING FINANCE
AGENCY.
  (B-3) FOR PURPOSES OF PARAGRAPH (B) OF THIS  SUBDIVISION,  RESIDENTIAL
REAL  PROPERTY  SHALL  NOT  BE  DEEMED "VACANT AND ABANDONED" WHERE SUCH
PROPERTY  IS:  (I)  AN   UNOCCUPIED   BUILDING   WHICH   IS   UNDERGOING
CONSTRUCTION,   RENOVATION  OR  REHABILITATION  THAT  IS  PROCEEDING  TO
COMPLETION, AND THE BUILDING IS IN COMPLIANCE WITH ALL APPLICABLE  ORDI-
NANCES,  CODES,  REGULATIONS AND STATUTES; (II) A BUILDING OCCUPIED ON A

S. 4781                             3

SEASONAL BASIS THAT IS  OTHERWISE  SECURE;  (III)  A  BUILDING  THAT  IS
SECURE,  BUT  IS THE SUBJECT OF A PROBATE ACTION, ACTION TO QUIET TITLE,
OR OTHER SIMILAR OWNERSHIP DISPUTE; (IV) A BUILDING DAMAGED BY A NATURAL
DISASTER  AND ONE OR MORE OWNER INTENDS TO REPAIR AND REOCCUPY THE PROP-
ERTY; OR (V) OCCUPIED BY THE MORTGAGOR, A RELATIVE OF THE MORTGAGOR OR A
TENANT LAWFULLY IN POSSESSION.
  2. Such [plaintiff] MORTGAGEE AND/OR ITS LOAN  SERVICING  AGENT  shall
have  the  right  to peaceably enter upon such property DETERMINED TO BE
VACANT AND ABANDONED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, or  to
cause  others  to  peaceably  enter  upon  the  property for the limited
purpose of inspections, repairs and  maintenance  as  required  by  this
section,  or  as  otherwise ordered by court; provided, however, that if
the property is occupied by a tenant LAWFULLY IN  POSSESSION,  at  least
seven days notice must be given to such tenant, unless emergency repairs
are  required  in  which case reasonable notice shall be provided to the
tenant.
  2-A. (A) IT SHALL BE UNLAWFUL FOR A MORTGAGEE, ITS SERVICER OR A THIRD
PARTY AGENT OR OTHER PERSON ACTING ON BEHALF OF  A  MORTGAGEE  TO  ENTER
RESIDENTIAL  REAL  PROPERTY  THAT  IS  NOT  VACANT AND ABANDONED FOR THE
PURPOSE OF FORCING, INTIMIDATING, HARASSING OR COERCING A  LAWFUL  OCCU-
PANT  OF  SUCH  RESIDENTIAL PROPERTY TO VACATE THAT PROPERTY IN ORDER TO
RENDER THE PROPERTY VACANT AND ABANDONED, OR TO OTHERWISE FORCE,  INTIM-
IDATE,  HARASS, OR COERCE A LAWFUL OCCUPANT OF RESIDENTIAL REAL PROPERTY
TO VACATE THAT PROPERTY SO THAT IT MAY BE CONSIDERED AS VACANT AND ABAN-
DONED.
  (B) LIABILITY FOR SUCH UNLAWFUL CONDUCT SHALL EXTEND TO ANY  MORTGAGEE
FOR  WHOSE BENEFIT THE ACTIONS WERE INITIATED, IN ADDITION TO ANY AGENT,
EMPLOYEE OR SUBCONTRACTOR OF THE MORTGAGEE WHO RETAINED, HIRED OR OTHER-
WISE ENLISTED THE PERPETRATOR.
  (C) A HOMEOWNER AND/OR OCCUPANT WHO HAS BEEN SUBJECTED TO SUCH  UNLAW-
FUL  CONDUCT MAY BRING AN ACTION FOR DAMAGES AND INJUNCTIVE RELIEF WHICH
MAY BE RAISED AS A COUNTERCLAIM IN A FORECLOSURE OR EVICTION PROCEEDING,
OR IN ANY OTHER ACTION OR PROCEEDING BROUGHT TO REGAIN POSSESSION OF, OR
QUIET TITLE TO, RESIDENTIAL REAL PROPERTY, OR MAY BE RAISED AS AN AFFIR-
MATIVE ACTION IN ANY COURT OF COMPETENT JURISDICTION.
  (D) PUNITIVE DAMAGES, COSTS AND/OR ATTORNEY FEES, MAY BE AWARDED  WHEN
THE CONDUCT COMPLAINED OF HAS BEEN CARRIED OUT WITH KNOWING DISREGARD OF
THE  RIGHTS OF THE OCCUPANT OR WAS PART OF A PATTERN OF CONDUCT INTENDED
TO SECURE THE VACATING OF PROPERTIES SO THAT THOSE PROPERTIES  WOULD  BE
CONSIDERED AS VACANT AND ABANDONED FOR PURPOSES OF THIS SECTION.
  3.  [The] IN ADDITION TO THE AUTHORITY GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO SUBDIVISION THREE OF SECTION  THIRTEEN  HUNDRED  SEVEN-A  OF
THIS  ARTICLE,  THE municipality in which such residential real property
is located, any tenant lawfully in possession, and a board  of  managers
of a condominium in which the premises are located or a homeowners asso-
ciation  if  said  premises  are subject to the rules and regulations of
such an association, shall have the right  to  enforce  the  obligations
described  in  this section in any court of competent jurisdiction after
at least seven days notice to the [plaintiff in the foreclosure  action]
MORTGAGEE  OR  ITS  LOAN  SERVICING  AGENT  unless emergency repairs are
required. Any entity acting pursuant to this subdivision  shall  have  a
cause  of  action  in  any  court  of competent jurisdiction against the
[plaintiff in the foreclosure action] MORTGAGEE OR  ITS  LOAN  SERVICING
AGENT to recover costs incurred as a result of maintaining the property.
SUCH  ENTITY  SHALL  PROVIDE THE ATTORNEY GENERAL WITH WRITTEN NOTICE AT
LEAST TEN DAYS PRIOR TO BRINGING AN ACTION PURSUANT TO THIS SUBDIVISION;

S. 4781                             4

PROVIDED, HOWEVER, THAT FAILURE TO COMPLY WITH THIS  NOTICE  REQUIREMENT
SHALL  NOT  BE  A  DEFENSE  TO  THE  ENTITY'S  PROCEEDING. The authority
provided by this subdivision shall be in addition to, and shall  not  be
deemed  to  diminish  or  reduce, any rights of the parties described in
this section under existing law against the mortgagor of  such  property
for failure to maintain such property.
  4.  In  the event the mortgagor of the property commences a proceeding
in bankruptcy court prior  to  the  completion  of  the  public  auction
ordered  in  the  judgment  of  sale, the duties created by this section
shall be suspended during the pendency of the bankruptcy  proceeding  or
until  such time as an order has been entered in that proceeding lifting
or removing the automatic stay of the foreclosure sale.
  5. For the purposes of this section "maintain" shall mean keeping  the
subject  property  in a manner that is consistent with the standards set
forth in the New York property maintenance code chapter 3 sections  301,
302  (excluding  302.2,  302.6  and 302.8), 304.1, 304.3, 304.7, 304.10,
304.12, 304.13, 304.15, 304.16, 307.1,  and  308.1;  provided,  however,
that  if  the  property is occupied by a tenant, then such property must
also be maintained in a safe and habitable condition.
  6. A [plaintiff] MORTGAGEE  OR  ITS  LOAN  SERVICING  AGENT  shall  be
relieved of its responsibilities [to maintain the residential real prop-
erty that is the subject of a foreclosure action] UNDER PARAGRAPH (A) OF
SUBDIVISION  ONE  OF THIS SECTION for the period that a receiver of such
property is serving.
  7. Nothing contained in this section shall diminish  in  any  way  the
obligations  pursuant  to any state or local law of the mortgagor of the
property or a receiver of rents and profits appointed in  an  action  to
foreclose  a  mortgage  to maintain the property prior to the closing of
title pursuant to a foreclosure sale.
  8. This section shall not preempt, reduce or limit any rights or obli-
gations imposed by any local laws with respect to  property  maintenance
and the locality's ability to enforce those laws.
  S  3.  The  real  property  actions  and proceedings law is amended by
adding a new section 1307-a to read as follows:
  S 1307-A. DELINQUENT MORTGAGE; VACANT AND ABANDONED  PROPERTY;  STATE-
WIDE  VACANT  AND  ABANDONED  PROPERTY ELECTRONIC REGISTRY.   1. WHERE A
MORTGAGOR IS THREE MONTHLY PAYMENTS PAST DUE ON A MORTGAGE LOAN  SECURED
BY  RESIDENTIAL REAL PROPERTY, THE MORTGAGEE OR ITS LOAN SERVICING AGENT
SHALL PROVIDE WRITTEN NOTICE TO THE MORTGAGOR STATING THAT THE MORTGAGOR
HAS THE RIGHT TO OCCUPY THE PROPERTY UNTIL HE OR SHE IS ORDERED TO LEAVE
THE PROPERTY BY A COURT OF COMPETENT JURISDICTION. SUCH NOTICE SHALL  BE
PROVIDED TO THE MORTGAGOR WITHIN FIFTEEN DAYS OF THE DATE THAT THE HOME-
OWNER'S  ACCOUNT  IS  PAST DUE BY NINETY DAYS, AND A COPY OF SUCH NOTICE
SHALL PROMPTLY BE PROVIDED BY SUCH MORTGAGEE OR LOAN SERVICING AGENT  TO
THE  ATTORNEY  GENERAL.   THE NOTICE SHALL BE IN FOURTEEN-POINT FONT AND
SHALL INCLUDE THE FOLLOWING LANGUAGE IN A CLEAR AND CONSPICUOUS FORMAT:
  "AS YOUR LOAN SERVICER OR MORTGAGE HOLDER, WE ARE REQUIRED TO SEND YOU
THIS NOTICE PURSUANT TO NEW YORK STATE LAW.
  AS THE OWNER OF YOUR HOME, YOU HAVE THE  RIGHT  TO  OCCUPY  YOUR  HOME
UNTIL  SUCH  TIME  AS  YOU  ARE ORDERED TO LEAVE BY A COURT OF COMPETENT
JURISDICTION.
  WE MAY INITIATE COLLECTION ACTIVITY INCLUDING TAKING STEPS TO COMMENCE
AND LITIGATE A FORECLOSURE LAWSUIT AGAINST YOU AND THE PROPERTY.
  YOU ARE ALLOWED BY NEW YORK STATE LAW TO CONTINUE LIVING IN YOUR  HOME
REGARDLESS OF ANY COLLECTION METHODS WE PURSUE OR ORAL OR WRITTEN STATE-
MENTS  MADE  DURING  THE  COLLECTIONS PROCESS, INCLUDING THE FORECLOSURE

S. 4781                             5

PROCESS, UNTIL SUCH TIME AS YOU ARE ORDERED BY A  COURT  TO  LEAVE  YOUR
PROPERTY."
  2.  (A)  THE  ATTORNEY  GENERAL  SHALL MAINTAIN A STATEWIDE VACANT AND
ABANDONED PROPERTY REGISTRY IN THE FORM OF AN ELECTRONIC  DATABASE.  THE
ATTORNEY  GENERAL  MAY,  IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF
THE STATE FINANCE LAW, RETAIN A PRIVATE CONTRACTOR  TO  ADMINISTER  SUCH
DATABASE  FOR  THE  PURPOSES  OF SATISFYING THIS REQUIREMENT, AND SHALL,
UPON WRITTEN REQUEST, PROVIDE APPROPRIATE OFFICIALS OF ANY COUNTY, CITY,
TOWN OR VILLAGE WITH DIRECT ELECTRONIC ACCESS TO INFORMATION  MAINTAINED
ON  SUCH  DATABASE  FOR  THE  PURPOSE OF ENFORCING THIS SECTION, SECTION
THIRTEEN HUNDRED SEVEN OF THIS ARTICLE OR  ARTICLE  NINETEEN-A  OF  THIS
CHAPTER, OR ANY OTHER RELATED LAW, CODE, RULE, REGULATION OR ORDINANCE.
  (B)  A  MORTGAGEE  OR  ITS  AGENT SHALL SUBMIT TO THE ATTORNEY GENERAL
INFORMATION REQUIRED BY THE ATTORNEY GENERAL ABOUT ANY VACANT AND  ABAN-
DONED  RESIDENTIAL  REAL  PROPERTY, AS THAT TERM IS DEFINED IN PARAGRAPH
(B) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF  THIS  ARTI-
CLE,  WITHIN  FIFTEEN DAYS OF WHEN THE MORTGAGEE OR ITS AGENTS LEARN, OR
REASONABLY SHOULD HAVE LEARNED, THAT SUCH PROPERTY IS VACANT  AND  ABAN-
DONED.    SUCH INFORMATION SHALL, AT A MINIMUM, INCLUDE: (I) THE CURRENT
NAME, ADDRESS AND CONTACT INFORMATION FOR THE LENDER OR SERVICER RESPON-
SIBLE FOR MAINTAINING THE VACANT PROPERTY; (II)  WHETHER  A  FORECLOSURE
ACTION HAS BEEN FILED FOR THE PROPERTY IN QUESTION, AND, IF SO, THE DATE
ON  WHICH THE FORECLOSURE ACTION WAS COMMENCED; AND (III) THE LAST KNOWN
ADDRESS AND CONTACT INFORMATION FOR THE MORTGAGEE OF RECORD.
  (C) WHERE ANY OF THE INFORMATION CONTAINED IN  A  MORTGAGEE'S  OR  ITS
AGENT'S  INITIAL SUBMISSION TO THE REGISTRY HAS MATERIALLY CHANGED SINCE
SUCH  SUBMISSION,  SUCH  MORTGAGEE  OR  AGENT  SHALL  MAKE  AN   AMENDED
SUBMISSION  TO THE REGISTRY NOT LATER THAN THIRTY DAYS AFTER THE MORTGA-
GEE OR ITS AGENTS LEARN, OR REASONABLY SHOULD HAVE LEARNED, OF  THE  NEW
OR CHANGED INFORMATION.
  (D)  THE  ATTORNEY  GENERAL  IS AUTHORIZED AND EMPOWERED TO ADOPT SUCH
RULES AND REGULATIONS AS MAY IN THE JUDGMENT OF THE ATTORNEY GENERAL  BE
NECESSARY  FOR THE EFFECTIVE ADMINISTRATION AND OPERATION OF SUCH REGIS-
TRY, INCLUDING BUT NOT LIMITED TO RULES AND REGULATIONS GOVERNING ACCESS
TO THE REGISTRY AND SPECIFYING THE MANNER AND FREQUENCY OF  REGISTRATION
AND  THE  INFORMATION  THAT MUST BE PROVIDED.   THE ATTORNEY GENERAL MAY
AMEND SUCH REGULATIONS FROM TIME TO TIME AS NECESSARY TO EFFECTUATE  THE
PURPOSE OF THIS SECTION AND SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTI-
CLE.
  (D-1) THE ATTORNEY GENERAL SHALL TAKE SUCH MEASURES AS HE OR SHE DEEMS
APPROPRIATE  TO ENSURE THAT THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OR
THE FEDERAL HOME LOAN MORTGAGE ASSOCIATION, AS APPLICABLE,  IS  PROMPTLY
NOTIFIED  IN  WRITING,  WHICH MAY INCLUDE NOTIFICATION BY EMAIL OR OTHER
ELECTRONIC MEANS, WHEN RESIDENTIAL REAL PROPERTY WITH RESPECT  TO  WHICH
EITHER  SUCH ASSOCIATION IS THE MORTGAGEE, SERVICER OR INSURER, IS ADDED
TO THE REGISTRY.
  (E) THE ATTORNEY GENERAL SHALL  ESTABLISH  AND  MAINTAIN  A  TOLL-FREE
HOTLINE  THAT  NEIGHBORS  OF  REAL  PROPERTY  THAT IS, OR APPEARS TO BE,
VACANT AND ABANDONED RESIDENTIAL REAL PROPERTY, AS SUCH TERM IS  DEFINED
IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF
THIS  ARTICLE,  AND  OTHER  COMMUNITY RESIDENTS CAN USE TO REPORT TO THE
ATTORNEY GENERAL ANY HAZARDS, BLIGHT OR OTHER CONCERNS RELATED  TO  SUCH
PROPERTY  AND  TO  OBTAIN  PUBLICLY AVAILABLE INFORMATION CONCERNING THE
STATUS OF SUCH  PROPERTY.  SUCH  PUBLICLY  AVAILABLE  INFORMATION  SHALL
INCLUDE  BUT NOT BE LIMITED TO WHETHER SUCH PROPERTY IS CURRENTLY LISTED
ON THE STATEWIDE VACANT  AND  ABANDONED  PROPERTY  REGISTRY  ESTABLISHED

S. 4781                             6

PURSUANT  TO THIS SUBDIVISION, AND THE IDENTITY OF THE MORTGAGEE OR LOAN
SERVICING COMPANY RESPONSIBLE FOR MAINTAINING SUCH VACANT AND  ABANDONED
PROPERTY  PURSUANT TO SUBDIVISION ONE OF THIS SECTION. THE OFFICE OF THE
ATTORNEY  GENERAL  SHALL INCLUDE ON ITS OFFICIAL PUBLIC WEBSITE INFORMA-
TION ABOUT SUCH TOLL-FREE HOTLINE.
  3. (A) WHENEVER A MORTGAGEE OR AGENT OF A MORTGAGEE SHALL VIOLATE THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE,  AN  APPLICA-
TION  MAY  BE  MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
THE STATE OF NEW YORK TO A COURT OR JUSTICE  HAVING  JURISDICTION  BY  A
SPECIAL  PROCEEDING  TO  ISSUE  AN  INJUNCTION,  AND  UPON NOTICE TO THE
DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE  CONTIN-
UANCE  OF  SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF
THE COURT OR JUSTICE THAT THE DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE, AN INJUNCTION
MAY  BE  ISSUED  BY SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY
FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS, IN FACT,
BEEN INJURED OR DAMAGED THEREBY. IN CONNECTION WITH  ANY  SUCH  PROPOSED
APPLICATION, THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A
DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE
WITH THE CIVIL PRACTICE LAW AND RULES.
  (B) IN ADDITION TO, OR IN LIEU OF, THE RELIEF AUTHORIZED IN PARAGRAPHS
(A)  AND  (C)  OF THIS SUBDIVISION, A MUNICIPALITY WHERE THE RESIDENTIAL
REAL PROPERTY IS LOCATED MAY INTERVENE AS A MATTER OF RIGHT IN ANY FORE-
CLOSURE ACTION COMMENCED UNDER THIS ARTICLE FOR THE PURPOSES OF REQUEST-
ING INJUNCTIVE RELIEF TO ASSURE THAT THE PROPERTY IN QUESTION  IS  MAIN-
TAINED  IN  ACCORDANCE  WITH  ALL  ORDINANCES,  CODES,  REGULATIONS  AND
STATUTES AND THAT THE  FORECLOSURE  ACTION  IS  TIMELY  PROSECUTED.  THE
INTERVENOR  MAY  MOVE  TO  HAVE ANY ADJOURNMENTS OR VOLUNTARY DISCONTIN-
UANCES IN SUCH FORECLOSURE ACTION CONDITIONED UPON THE POSTING OF A BOND
OR OTHER UNDERTAKING OR TO ORDER OTHER MEASURES INTENDED TO ENSURE ONGO-
ING MAINTENANCE OF THE PROPERTY UNTIL SUCH TIME AS TITLE TO THE PROPERTY
HAS BEEN TRANSFERRED THROUGH A FORECLOSURE  SALE  OR  OTHERWISE.  INTER-
VENTION  IN  A  FORECLOSURE  ACTION  PURSUANT TO THIS PARAGRAPH SHALL BE
AVAILABLE WITH RESPECT TO ANY RESIDENTIAL PROPERTY SECURED BY A MORTGAGE
LOAN AS DEFINED UNDER SECTION THIRTEEN HUNDRED  FIVE  OF  THIS  ARTICLE,
REGARDLESS  OF  WHETHER  THE PROPERTY IS OCCUPIED, SO LONG AS ONE OF THE
OTHER CONDITIONS DESCRIBED  IN  PARAGRAPH  (B)  OF  SUBDIVISION  ONE  OF
SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE IS PRESENT.
  (C)  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A VIOLATION OF THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE BY A MORTGAGEE
OR AGENT OF A MORTGAGEE HAS OCCURRED,  THE  COURT  MAY  IMPOSE  A  CIVIL
PENALTY OF UP TO ONE THOUSAND DOLLARS PER DAY FOR EACH DAY THE VIOLATION
PERSISTED IN ADDITION TO THE COSTS OF MAINTAINING THE PROPERTY. NOTWITH-
STANDING  ANY  PROVISION  OF  LAW  TO  THE CONTRARY, ALL CIVIL PENALTIES
COLLECTED BY THE ATTORNEY GENERAL PURSUANT TO THIS  PARAGRAPH  SHALL  BE
DEPOSITED  TO  THE  CREDIT OF THE ABANDONED PROPERTY NEIGHBORHOOD RELIEF
FUND ESTABLISHED PURSUANT TO SECTION NINETY-ONE-G OF THE  STATE  FINANCE
LAW.
  (D) THE PROVISIONS OF THIS SECTION MAY ALSO BE ENFORCED BY ANY LOCALI-
TY  OR  MUNICIPALITY  IN  WHICH THE VACANT PROPERTY IS LOCATED, PROVIDED
THAT THE LOCALITY OR MUNICIPALITY PROVIDES  THE  ATTORNEY  GENERAL  WITH
WRITTEN  NOTICE  AT  LEAST  TEN  DAYS PRIOR TO COMMENCING SUCH AN ACTION
UNDER THIS SECTION; AND PROVIDED FURTHER THAT  FAILURE  TO  COMPLY  WITH
THIS  NOTICE  REQUIREMENT  SHALL  NOT  BE A DEFENSE TO THE LOCALITY'S OR
MUNICIPALITY'S PROCEEDING.  ANY CIVIL PENALTY IMPOSED PURSUANT TO  PARA-

S. 4781                             7

GRAPH  (C)  OF  THIS  SUBDIVISION IN AN ACTION BROUGHT BY A MUNICIPALITY
PURSUANT TO THIS PARAGRAPH SHALL BE RETAINED BY SUCH MUNICIPALITY.
  4. THIS SECTION SHALL NOT PREEMPT, REDUCE OR LIMIT ANY RIGHTS OR OBLI-
GATIONS  IMPOSED  BY  ANY LOCAL LAW WITH RESPECT TO PROPERTY MAINTENANCE
AND THE LOCALITY'S ABILITY TO ENFORCE THOSE LAWS.
  S 4. A part of the supreme  court  shall  be  devoted  to  foreclosure
actions involving property alleged to be vacant and abandoned.
  S  5.  The  real  property  actions  and proceedings law is amended by
adding a new section 1308 to read as follows:
  S 1308. SPECIAL FORECLOSURE PROCEEDING FOR VACANT AND ABANDONED  RESI-
DENTIAL  REAL PROPERTY. 1.  IN ANY FORECLOSURE ACTION INVOLVING RESIDEN-
TIAL REAL PROPERTY, AS DEFINED IN SECTION THIRTEEN HUNDRED FIVE OF  THIS
ARTICLE,  ALLEGED  TO BE VACANT AND ABANDONED, THE PLAINTIFF MAY MAKE AN
APPLICATION FOR AN ORDER TO SHOW CAUSE UPON NOTICE WHICH SEEKS ENTRY  OF
JUDGMENT  OF  FORECLOSURE  AND SALE ON THE GROUNDS THAT SUCH PROPERTY IS
VACANT AND ABANDONED. ANY SUCH APPLICATION SHALL BE MADE  VIA  ORDER  TO
SHOW  CAUSE,  WHEREIN  THE  COURT  SHALL  DIRECT SERVICE CONSISTENT WITH
SECTION THREE HUNDRED EIGHT OF THE CIVIL PRACTICE LAW AND RULES. NO SUCH
APPLICATION SHALL BE DIRECTED TO BE SERVED UPON DEFENDANT UNTIL THE TIME
TO ANSWER THE COMPLAINT IN SUCH ACTION SHALL HAVE EXPIRED, NOR SHALL ANY
SUCH APPLICATION BE GRANTED UNTIL AFTER THE MANDATORY SETTLEMENT CONFER-
ENCE PURSUANT TO RULE THREE THOUSAND FOUR HUNDRED  EIGHT  OF  THE  CIVIL
PRACTICE LAW AND RULES HAS BEEN NOTICED TO ANY SUCH DEFENDANT, AND AFTER
ALL  SUCH  DEFENDANTS  HAVE  FAILED  TO APPEAR FOR SAID CONFERENCE. SUCH
APPLICATION SHALL:
  (A) STATE ON THE FACE OF THE ORDER TO SHOW CAUSE THAT "THIS  ORDER  TO
SHOW CAUSE SEEKS ENTRY OF A JUDGMENT OF FORECLOSURE AND SALE PURSUANT TO
REAL  PROPERTY ACTIONS AND PROCEEDINGS LAW S 1308 ON THE GROUND THAT THE
MORTGAGED PREMISES ARE VACANT AND ABANDONED";
  (B) SET FORTH THE ALLEGATIONS EVIDENCING VACANT AND ABANDONED RESIDEN-
TIAL PROPERTY AS PROVIDED FOR UNDER SUBDIVISION FOUR OF THIS SECTION AND
ATTACH DOCUMENTARY EVIDENCE IN SUPPORT;
  (C) STATE WITHIN THE AFFIDAVIT OR AFFIRMATION SUPPORTING THE  APPLICA-
TION  THE  SUMS  ALLEGED  TO  BE DUE AND OWING UPON THE SUBJECT MORTGAGE
DOCUMENTS AND ATTACH DOCUMENTARY EVIDENCE IN SUPPORT, INCLUDING BUT  NOT
LIMITED TO PROOF OF OWNERSHIP OF THE MORTGAGE AND THE NOTE; AND
  (D)  STATE WITHIN THE AFFIDAVIT OR AFFIRMATION SUPPORTING THE APPLICA-
TION THAT AN IMMEDIATE ORDER OF REFERENCE IS SOUGHT FOR THE  APPOINTMENT
OF A REFEREE TO COMPUTE PURSUANT TO THIS CHAPTER.
  2. THE CHIEF ADMINISTRATIVE JUDGE OF THE COURTS SHALL ADOPT SUCH RULES
AS  HE  OR SHE DEEMS NECESSARY TO EXPEDITIOUSLY IMPLEMENT THE PROVISIONS
OF THIS SUBDIVISION.
  3. THE COURT SHALL TAKE THE EVIDENCE SUPPORTING THE FACTS AND  CIRCUM-
STANCES  STATED  IN THE ORDER TO SHOW CAUSE AND SHALL EXAMINE THE PLAIN-
TIFF OR HIS OR HER AGENT, AT AN EVIDENTIARY HEARING UNDER  OATH,  AS  TO
THE  EVIDENCE  PRESENTED  WITH RESPECT TO VACANT AND ABANDONED PROPERTY,
AND SHALL MAKE A WRITTEN FINDING WHETHER THE PROPERTY TO  BE  FORECLOSED
UPON  PURSUANT  TO THIS SECTION MEETS THE DEFINITION OF VACANT AND ABAN-
DONED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION AND SHALL  SET  FORTH
WITH  SPECIFICITY  THE  FACTORS  MET  UNDER SUCH SECTION. EVIDENCE TO BE
SUBMITTED TO THE COURT SHALL INCLUDE UTILITY COMPANY RECORDS  EVIDENCING
THE  ABANDONED  STATUS  OF  THE PREMISES. WRITTEN FINDINGS SHALL INCLUDE
EVIDENCE THAT THE PLAINTIFF IS THE OWNER AND HOLDER OF THE SUBJECT MORT-
GAGE AND NOTE, OR HAS BEEN DELEGATED THE AUTHORITY TO INSTITUTE A  MORT-
GAGE FORECLOSURE ACTION BY THE OWNER OF SAME.

S. 4781                             8

  4.  (A)  AS  USED  IN THIS SECTION, "VACANT AND ABANDONED" RESIDENTIAL
REAL PROPERTY MEANS RESIDENTIAL REAL PROPERTY,  AS  DEFINED  IN  SECTION
THIRTEEN HUNDRED FIVE OF THIS ARTICLE, WITH RESPECT TO WHICH THE MORTGA-
GEE  PROVES TO THE SATISFACTION OF THE COURT THAT THE MORTGAGED PROPERTY
IS  NOT OCCUPIED BY A MORTGAGOR OR TENANT AS DEFINED IN SECTION THIRTEEN
HUNDRED FIVE OF THIS ARTICLE, AND:
  (1) THE PROPERTY IS A RISK TO THE HEALTH, SAFETY, OR  WELFARE  OF  THE
PUBLIC,  OR  ANY  ADJOINING  OR ADJACENT PROPERTY OWNERS, DUE TO ACTS OF
VANDALISM, LOITERING, CRIMINAL CONDUCT, OR PHYSICAL DESTRUCTION OR DETE-
RIORATION OF THE PROPERTY; OR
  (2) THE RELEVANT GOVERNMENTAL  AUTHORITY  HAS  DECLARED  THE  PROPERTY
UNFIT  FOR OCCUPANCY AND TO REMAIN VACANT AND UNOCCUPIED OR TO BE DEMOL-
ISHED.
  (B) FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL  NOT
BE  CONSIDERED  "VACANT  AND  ABANDONED"  IF  THE PROPERTY IS A BUILDING
DESCRIBED IN SUBPARAGRAPH (I), (II), (III) OR (IV) OF PARAGRAPH (B-3) OF
SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE, OR IS
OCCUPIED AS DESCRIBED IN SUBPARAGRAPH (V) OF SUCH PARAGRAPH.
  5. (A) A JUDGMENT OF FORECLOSURE AND SALE SHALL NOT BE ENTERED  PURSU-
ANT TO THIS SECTION IF THE MORTGAGOR OR ANY OTHER DEFENDANT HAS FILED AN
ANSWER, APPEARANCE OR OTHER WRITTEN OBJECTION THAT IS NOT WITHDRAWN.
  (B)  THE COURT'S DENIAL OF A JUDGMENT OF FORECLOSURE AND SALE PURSUANT
TO THIS SECTION WHERE THE COURT DOES NOT FIND THAT THE MORTGAGED PROPER-
TY IS VACANT AND ABANDONED SHALL NOT BE ON THE MERITS.
  (C) THE PROVISIONS OF THIS SECTION SHALL NOT PREEMPT, REDUCE OR  LIMIT
ANY  RIGHTS  OR  OBLIGATIONS  IMPOSED  BY ANY LOCAL LAWS WITH RESPECT TO
PROPERTY MAINTENANCE OR A LOCALITY'S ABILITY TO ENFORCE SUCH LAWS.
  (D) THE PROVISIONS OF THIS SECTION SHALL NOT ABROGATE  ANY  RIGHTS  OR
DUTIES PURSUANT TO THIS ARTICLE.
  S  6. The state finance law is amended by adding a new section 91-g to
read as follows:
  S 91-G.  ABANDONED  PROPERTY  NEIGHBORHOOD  RELIEF  FUND;  ENFORCEMENT
ASSISTANCE GRANTS. 1.  THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE
STATE  COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE "ABANDONED PROPERTY
NEIGHBORHOOD RELIEF FUND."
  2. SUCH FUND SHALL CONSIST OF ALL CIVIL  PENALTIES  COLLECTED  BY  THE
ATTORNEY  GENERAL  PURSUANT  TO  PARAGRAPH  (C)  OF SUBDIVISION THREE OF
SECTION THIRTEEN HUNDRED  SEVEN-A  OF  THE  REAL  PROPERTY  ACTIONS  AND
PROCEEDINGS  LAW  AND  REQUIRED  TO BE DEPOSITED INTO THIS FUND, AND ALL
OTHER MONEYS CREDITED OR TRANSFERRED THERETO  FROM  ANY  OTHER  FUND  OR
SOURCE PURSUANT TO LAW. ANY INCOME EARNED ON MONEYS WITHIN THE ABANDONED
PROPERTY  NEIGHBORHOOD  RELIEF FUND SHALL BE ADDED TO AND MADE AVAILABLE
FOR THE PURPOSE OF SUCH FUND.
  3. MONIES OF THE FUND SHALL BE ALLOCATED TO AND EXPENDED BY THE ATTOR-
NEY GENERAL, ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER, ONLY FOR
THE PURPOSE  OF  PROVIDING  ABANDONED  PROPERTY  ENFORCEMENT  ASSISTANCE
GRANTS  TO LOCALITIES IN ACCORDANCE WITH SUBDIVISIONS FOUR, FIVE AND SIX
OF THIS SECTION.
  4. THE CHIEF ELECTED OFFICIAL OF  A  COUNTY,  CITY,  TOWN  OR  VILLAGE
LOCATED  WITHIN  THE  STATE  MAY,  ON  AN ANNUAL BASIS, SUBMIT A WRITTEN
APPLICATION TO THE ATTORNEY GENERAL, OR HIS OR HER AUTHORIZED  DESIGNEE,
FOR  AN  ABANDONED  PROPERTY ENFORCEMENT ASSISTANCE GRANT FROM AVAILABLE
MONEYS IN THE ABANDONED PROPERTY NEIGHBORHOOD  RELIEF  FUND  ESTABLISHED
PURSUANT  TO SUBDIVISION ONE OF THIS SECTION. THE ATTORNEY GENERAL SHALL
REQUIRE THAT APPLICATIONS SUBMITTED PURSUANT TO THIS SUBDIVISION PROVIDE

S. 4781                             9

SUCH INFORMATION AS THE ATTORNEY GENERAL DEEMS  APPROPRIATE,  INCLUDING,
AT A MINIMUM, THE FOLLOWING:
  (A) THE AMOUNT OF FUNDING SOUGHT;
  (B)  A  DETAILED DESCRIPTION OF THE IMPACT THAT THE PRESENCE OF VACANT
AND ABANDONED RESIDENTIAL REAL PROPERTIES IN THE REQUESTING LOCALITY HAS
HAD ON ITS AFFECTED COMMUNITIES, THE LOCALITY'S EFFORTS TO  ADDRESS  THE
PROBLEM TO DATE AND THE RESULT OF THOSE EFFORTS;
  (C)  A  DETAILED DESCRIPTION OF THE ENFORCEMENT PURPOSE OR PURPOSES TO
WHICH THE FUNDING WILL  BE  APPLIED,  WITH  SPECIFIC  REFERENCE  TO  THE
PROVISION  OR PROVISIONS OF SECTIONS THIRTEEN HUNDRED SEVEN AND THIRTEEN
HUNDRED SEVEN-A OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW  SOUGHT
TO BE ENFORCED; AND
  (D) THE DATE AND RESULT OF ANY PRIOR APPLICATIONS MADE BY THE LOCALITY
TO THE ATTORNEY GENERAL PURSUANT TO THIS SECTION.
  5. IN DETERMINING WHETHER TO APPROVE AN APPLICATION SUBMITTED PURSUANT
TO  SUBDIVISION  FOUR  OF THIS SECTION, THE ATTORNEY GENERAL SHALL, AT A
MINIMUM, CONSIDER:
  (A) THE EXTENT TO WHICH THE PRESENCE OF VACANT AND ABANDONED  RESIDEN-
TIAL  PROPERTIES  IN THE REQUESTING LOCALITY HAS NEGATIVELY IMPACTED THE
COMMUNITIES WHERE THOSE PROPERTIES ARE LOCATED AND  THE  LOCALITY  AS  A
WHOLE;
  (B)  THE LIKELY IMPACT APPROVAL OF THE APPLICATION AND DISBURSEMENT OF
FUNDS WOULD HAVE ON ADDRESSING THE PROBLEM OF VACANT AND ABANDONED RESI-
DENTIAL PROPERTIES IN THE REQUESTING LOCALITY THROUGH ENHANCED  ENFORCE-
MENT  OF SECTIONS THIRTEEN HUNDRED SEVEN AND THIRTEEN HUNDRED SEVEN-A OF
THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW;
  (C) THE AVAILABILITY OF OTHER SOURCES OF FUNDING TO PAY SOME OR ALL OF
THE ENFORCEMENT COSTS FOR WHICH THE REQUESTING LOCALITY  SEEKS  FUNDING;
AND
  (D)  WHERE THE REQUESTING LOCALITY PREVIOUSLY APPLIED FOR AND RECEIVED
AN ENFORCEMENT ASSISTANCE GRANT PURSUANT TO THIS  SECTION,  WHETHER  THE
GRANT  FUNDS WERE USED BY THE LOCALITY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION AND ANY APPLICABLE RULES OR REGULATIONS ADOPTED  BY  THE
ATTORNEY GENERAL.
  6. UPON APPROVAL OF AN APPLICATION, THE ATTORNEY GENERAL MAY AUTHORIZE
DISBURSEMENT  OF  FUNDS  IN  ANY  AMOUNT  UP TO THE AMOUNT SOUGHT BY THE
REQUESTING LOCALITY. SUCH DISBURSEMENT MAY BE BY ADVANCE PAYMENT TO  THE
LOCALITY  BEFORE  IT  INCURS  THE  COST FOR WHICH ITS APPLICATION SOUGHT
FUNDING, BY REIMBURSEMENT TO THE LOCALITY AFTER IT INCURS AND PAYS  SUCH
COSTS  IN  THE  FIRST  INSTANCE,  OR BY SOME COMBINATION THEREOF, AS THE
ATTORNEY GENERAL DETERMINES IS APPROPRIATE UNDER THE CIRCUMSTANCES.  ANY
AND  ALL  ENFORCEMENT ASSISTANCE GRANT MONEYS DISBURSED PURSUANT TO THIS
SECTION SHALL BE USED BY THE RECIPIENT COUNTY,  CITY,  TOWN  OR  VILLAGE
SOLELY  TO  AID IN THE ENFORCEMENT BY SUCH LOCALITY OF SECTIONS THIRTEEN
HUNDRED SEVEN AND THIRTEEN HUNDRED SEVEN-A OF THE REAL PROPERTY  ACTIONS
AND PROCEEDINGS LAW.
  7.  THE  ATTORNEY GENERAL SHALL ADOPT SUCH RULES AND REGULATIONS AS HE
OR SHE DEEMS APPROPRIATE TO EFFECTUATE THE  PURPOSES  OF  THIS  SECTION,
INCLUDING  PROVISIONS  FOR  PERIODIC  MONITORING  AND  EVALUATION OF THE
ENFORCEMENT ASSISTANCE GRANT PROGRAM ESTABLISHED HEREIN.
  8. THE STATE COMPTROLLER SHALL HAVE THE POWER TO INSPECT, EXAMINE  AND
AUDIT  THE FISCAL AFFAIRS OF ANY LOCALITY AWARDED AN ENFORCEMENT ASSIST-
ANCE GRANT PURSUANT TO THIS SECTION TO THE EXTENT NECESSARY TO DETERMINE
WHETHER THE FUNDING RECEIVED  HAS  BEEN  USED  IN  ACCORDANCE  WITH  THE
PURPOSE  OR  PURPOSES  FOR  WHICH  IT WAS SOUGHT IN THE APPLICATION, AND
WHETHER THERE HAS BEEN COMPLIANCE WITH THE APPLICABLE PROVISIONS OF THIS

S. 4781                            10

SECTION AND ANY APPLICABLE RULES OR REGULATIONS ADOPTED BY THE  ATTORNEY
GENERAL.
  9.  THE  ATTORNEY GENERAL, IN CONSULTATION WITH THE STATE COMPTROLLER,
SHALL REPORT ANNUALLY TO THE GOVERNOR AND THE LEGISLATURE REGARDING  THE
OPERATION AND SUCCESS OF SUCH GRANT PROGRAM.
  S  7.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that  effective  immediately,  the
addition  and/or  repeal  of  any  rule  or regulation necessary for the
implementation of this act on  its  effective  date  is  authorized  and
directed to be made and completed on or before such effective date.

Co-Sponsors

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S4781A (ACTIVE) - Details

See Assembly Version of this Bill:: A6932
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1307, add §§1307-a & 1308, RPAP L; add §91-g, St Fin L

S4781A (ACTIVE) - Summary

Establishes the "Abandoned Property Neighborhood Relief Act of 2016"; relates to the duty of the mortgagee or its loan servicing agent to maintain property secured by a delinquent mortgage.

S4781A (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S4781A

 TITLE OF BILL :  An act establishing the "New York state abandoned
property neighborhood relief act of 2016"; and to amend the real
property actions and proceedings law, in relation to the duty of the
mortgagee or its loan servicing agent to maintain property secured by
delinquent mortgage and in relation to special foreclosure proceedings
for vacant abandoned property; and to amend the state finance law, in
relation to establishing the abandoned property neighborhood relief
fund

 PURPOSE :

To help community residents and municipalities throughout the State
better address the growing problem of vacant and abandoned residential
properties by creating a statewide registry of such properties and
imposing a duty on mortgagees and their loan servicing agents to
report these properties to the registry and take earlier
(pre-foreclosure) action to identify, secure and maintain them.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 establishes the title of the Act as the "New York State
Abandoned Property Neighborhood Relief Act of 2016."

Section 2 amends section 1307 of the Real Property Actions and

Proceedings Law to: create a definition of "vacant and abandoned"
residential real property; expand the existing duty of a mortgagee to
maintain vacant residential real property to include pre-foreclosure
"vacant and abandoned" residential property as defined in the bill,
and to expand such duty to the mortgagee's loan servicing agent;
establish a periodic inspection requirement for mortgagees and loan
servicing agents to determine if residential real property subject to
a delinquent mortgage is currently occupied; and make it unlawful for
a mortgagee or loan servicing agent, or a person acting on their
behalf, to enter residential real property that is not vacant or
abandoned for the purpose of forcing, intimidating, harassing or
coercing a lawful occupant thereof to vacate the property in order to
render it vacant and abandoned.

Section 3 adds a new section 1307-a to the Real Property Actions and
Proceedings Law to: require the Attorney General to establish and
maintain a statewide electronic Vacant and Abandoned Property Registry
that shall be accessible to local officials across the State; require
mortgagees or their agents to promptly submit to the statewide
Registry information about vacant and abandoned properties, including
but not limited to the current name, address and contact information
for the lender or servicer responsible for maintaining the property,
whether a foreclosure action has been tiled, and any updated material
information when it becomes available; require mortgagees or their
loan servicing agents to provide prompt written notice to mortgagors,
when the mortgage on their residential real property is three monthly
payments past due, of the mortgagor's right to occupy the property
until he or she is ordered to leave by a court of competent
jurisdiction; require the Attorney General to take appropriate
measures to ensure that the Federal National Mortgage Association and
the Federal Home Loan Mortgage Association are promptly notified when
certain properties are added to the electronic registry; authorize a
municipality wherein vacant and abandoned residential property is
located to intervene as of right in a foreclosure action involving the
property for the purpose of requesting injunctive relief to ensure the
property is maintained in accordance with law and that the foreclosure
action is timely prosecuted; require the Attorney General to establish
and maintain a toll-free hotline that community members concerned
about vacant and abandoned properties can call to report such
properties and to obtain information relating to such properties,
including but not limited to whether a specific property is listed on
the Attorney General's statewide Vacant and Abandoned Property
Registry and, if so, the identity of the mortgagee or loan servicing
company responsible for maintaining the property; and authorize the
Attorney General, and any affected locality upon written notice to the
Attorney General, to seek injunctive relief and/or civil penalties
against mortgagees and/or their agents for violations of RPAPL
sections 1307 and 1307-a.

Section 4 requires that a part of the Supreme Court be devoted to
foreclosure actions involving property alleged to be vacant and
abandoned.

Section 5 adds a new section 1308 to the Real Property Actions and
Proceedings Law to establish a special foreclosure proceeding for
vacant and abandoned residential real property.

Section 6 adds a new section 91-g to the State Finance Law to create
the Abandoned Property Neighborhood Relief Fund, to be comprised of
all civil penalties collected by the Attorney General in enforcement
actions under RPAPL section 1307-a(3)(c), and to establish a procedure
for the disbursement to localities of Enforcement Assistance Grants
from available monies in such fund to aid such localities in the
enforcement of RPAPL sections 1307 and 1307-a.

Section 7 establishes an effective date of 90 days after the act shall
have become a law.

 EXISTING LAW :

Section 1307 of the Real Property Actions and Proceedings Law
currently requires a plaintiff in a mortgage foreclosure action who
obtains a Judgment of Foreclosure and Sale involving residential real
property that is or becomes vacant to maintain the property until such
time as ownership of the property has been transferred through the
closing of title in foreclosure or other disposition, and the deed is
duly recorded.

 JUSTIFICATION :

Vacant and abandoned residential properties securing delinquent
mortgages fall into disrepair and harm neighboring properties and the
surrounding community. 'These properties are a blight on neighborhoods
because they are often boarded up, inhabited by squatters or used for
criminal purposes. When a vacant and abandoned property is not
maintained for an extended period of time, there is a decline in the
community's real estate market and the state's property tax base.
There is also an increased likelihood of crime in and around the
property. There are instances of such properties being used by
criminals to manufacture and/or distribute illegal drugs.
Municipalities are often forced to expend taxpayer funds to prevent a
vacant and abandoned property from becoming a public hazard. If a
municipality is forced to care for a significant number of vacant and
abandoned properties, its budget can be depleted quickly.

Current law, enacted in 2009, imposes a duty on plaintiff-mortgagees
to maintain vacant residential properties only after a Judgment of
Foreclosure and Sale has been entered. Unfortunately, this law has
proven inadequate to address the growing number of vacant and
abandoned' properties falling into disrepair across New York State. A
survey in one jurisdiction showed that most vacant and abandoned
properties were not subject to foreclosure actions and, if they were,
the cases had not proceeded to Judgment of Foreclosure and Sale. In
many instances, the plaintiff-mortgagee abandoned the foreclosure
effort. In others, the plaintiff-mortgagee sought to vacate its own
Judgment of Foreclosure and Sale, bringing the property outside of the
existing maintenance requirement imposed on the plaintiff-mortgagee by
statute. There is also evidence showing that current and former New
York homeowners have been misled into believing they need to leave
their homes earlier in the foreclosure process than they actually have
to, resulting in even more vacant and abandoned properties.

In response to this growing threat to communities across New York
State, the Abandoned Property Neighborhood Relief Act of 2016 will
ensure that homeowners are provided with early notice that they are
legally entitled to remain in their homes until ordered to leave by a
court and will require mortgagees and their loan servicers and agents
to identify, secure and maintain vacant and abandoned properties much
earlier in the mortgage delinquency timeline. It will also require
that they electronically register these properties with the
newly-created Vacant and Abandoned Property Registry to be established
and maintained by the Attorney General. The Registry, in turn, will
provide a much needed and readily available source of information on
vacant and abandoned residential properties to local officials
throughout the State, and will be supplemented by a toll-free hotline
that community residents can use to report suspected vacant and
abandoned properties to the Attorney General and receive information
regarding the status of registered properties, including the identity
of the mortgagee or agent responsible for maintaining them. The Act
also would establish in the State Finance Law a new Abandoned Property
Neighborhood Relief Fund, to be comprised of civil penalty monies
collected by the Attorney General in enforcement actions under the
Act, which monies would be used to fund Enforcement Assistance Grants
to aid localities in their enforcement of the Act.

 PRIOR LEGISLATIVE HISTORY :

2014: 5.7350-A/Klein - referred to Judiciary
2015: S.4781/Klein referred to Housing, Construction and Community
Development

 FISCAL IMPLICATIONS :

It is expected that there will be costs to the Office of the Attorney
General for the establishment and maintenance of the statewide Vacant
and Abandoned Property Registry and the toll-free community resident
hotline established by the Act.

 EFFECTIVE DATE :
90 days.

S4781A (ACTIVE) - Bill Text download pdf

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

                                 4781--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sens. KLEIN, VALESKY, SAVINO, CARLUCCI, AVELLA, ADDABBO,
  COMRIE, DIAZ, ESPAILLAT, HOYLMAN, KENNEDY, LATIMER, PANEPINTO,  PERAL-
  TA,  PERKINS,  RIVERA, ROBACH, SERRANO, SQUADRON -- (at request of the
  Attorney General) -- read twice and ordered printed, and when  printed
  to be committed to the Committee on Housing, Construction and Communi-
  ty   Development   --   recommitted   to  the  Committee  on  Housing,
  Construction and Community Development in accordance with Senate  Rule
  6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT establishing the "New York state abandoned property  neighborhood
  relief  act  of  2016";  and  to  amend  the real property actions and
  proceedings law, in relation to the duty of the mortgagee or its  loan
  servicing  agent  to  maintain property secured by delinquent mortgage
  and in relation to special foreclosure proceedings  for  vacant  aban-
  doned  property;  and  to  amend the state finance law, in relation to
  establishing the abandoned property neighborhood relief fund

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

  Section  1.  This act shall be known and may be cited as the "New York
state abandoned property neighborhood relief act of 2016".
  S 2. Section 1307 of the real property actions and proceedings law, as
added by chapter 507 of the laws of 2009, is amended to read as follows:
  S 1307. Duty to maintain [foreclosed] property SECURED  BY  DELINQUENT
MORTGAGE.   1. [A plaintiff in a mortgage foreclosure action who obtains
a judgment of foreclosure and sale pursuant to section thirteen  hundred
fifty-one  of  this  article,  involving  residential  real property, as
defined in section thirteen  hundred  five  of  this  article,  that  is
vacant,  or  becomes  vacant  after the issuance of such judgment, or is
abandoned by the mortgagor but occupied by a tenant] (A) WITH RESPECT TO
A MORTGAGE LOAN SECURED BY RESIDENTIAL REAL PROPERTY, as  defined  under
section  thirteen  hundred  five  of this article, WHERE THE PROPERTY IS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09229-10-6

S. 4781--A                          2

"VACANT AND ABANDONED" AS DEFINED IN PARAGRAPH (B) OF  THIS  SUBDIVISION
OR  A FORECLOSURE ACTION HAS BEEN COMMENCED AGAINST THE PROPERTY BECAUSE
THE MORTGAGOR HAS FAILED TO MAINTAIN THE PROPERTY OR WHERE A JUDGMENT OF
FORECLOSURE UNDER SECTION THIRTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE HAS
BEEN  OBTAINED  ON THE PROPERTY THAT HAS BEEN ABANDONED BY THE MORTGAGOR
BUT REMAINS OCCUPIED BY A TENANT LAWFULLY IN POSSESSION,  THE  MORTGAGEE
OR ITS LOAN SERVICING AGENT shall maintain such property until such time
as  ownership has been transferred through the closing of title in fore-
closure, or other disposition, and the deed for such property  has  been
duly recorded; provided, however, that if a municipality or governmental
entity  holds  a  mortgage [subordinate to one or more mortgages] on the
residential real property, the municipality or governmental entity shall
not be subject to the requirements of this section.
  (B) FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY  SHALL  BE
DEEMED "VACANT AND ABANDONED" WHEN:  (I) AT LEAST THREE MONTHLY PAYMENTS
ARE  PAST  DUE  ON  THE  MORTGAGE LOAN OR THE MORTGAGOR HAS INFORMED THE
MORTGAGEE OR LOAN SERVICING COMPANY IN WRITING THAT THE  MORTGAGOR  DOES
NOT  INTEND  TO  OCCUPY THE PROPERTY IN THE FUTURE; AND (II) EITHER: (A)
THERE IS A REASONABLE BASIS TO BELIEVE THAT THE PROPERTY IS NOT OCCUPIED
WHICH SHALL BE DETERMINED IN ACCORDANCE WITH THE REQUIREMENTS  OF  PARA-
GRAPH (B-1) OF THIS SUBDIVISION; (B) SUCH RESIDENTIAL REAL PROPERTY IS A
RISK  TO THE HEALTH, SAFETY OR WELFARE OF THE PUBLIC OR ANY ADJOINING OR
ADJACENT PROPERTY OWNERS, DUE TO ACTS OF VANDALISM, LOITERING,  CRIMINAL
CONDUCT,  OR  PHYSICAL  DESTRUCTION OR DETERIORATION OF THE PROPERTY; OR
(C) THE RELEVANT GOVERNMENTAL AUTHORITY HAS DECLARED THE PROPERTY  UNFIT
FOR  OCCUPANCY  AND TO REMAIN VACANT AND UNOCCUPIED OR TO BE DEMOLISHED.
WHERE A MORTGAGEE OR LOAN SERVICING COMPANY HAS RECEIVED WRITTEN  NOTICE
FROM  A  MORTGAGOR  THAT  SUCH  MORTGAGOR DOES NOT INTEND TO OCCUPY SUCH
PROPERTY IN THE FUTURE, THE MORTGAGEE OR LOAN  SERVICING  COMPANY  SHALL
PROMPTLY  NOTIFY  THE ATTORNEY GENERAL IN WRITING OF ITS RECEIPT OF SUCH
NOTIFICATION AND THE DATE THEREOF.
  (B-1) FOR PURPOSES OF PARAGRAPH (B) OF THIS SUBDIVISION, A  REASONABLE
BASIS  TO  BELIEVE THAT RESIDENTIAL REAL PROPERTY IS NOT OCCUPIED SHALL,
AT A MINIMUM, BE BASED UPON PERIODIC INSPECTIONS OF  SUCH  PROPERTY,  AT
LEAST  THIRTY  DAYS  APART,  WHERE  TWO  OR MORE SUCH INSPECTIONS REVEAL
EVIDENCE OF ABANDONMENT. FOR PURPOSES OF THIS SUBDIVISION, "EVIDENCE  OF
ABANDONMENT"  SHALL  INCLUDE  BUT NOT BE LIMITED TO ANY OF THE FOLLOWING
CONDITIONS: (I) OVERGROWN OR DEAD VEGETATION; (II) ACCUMULATION OF NEWS-
PAPERS, CIRCULARS, FLYERS OR  MAIL;  (III)  PAST  DUE  UTILITY  NOTICES,
DISCONNECTED  UTILITIES,  OR  UTILITIES NOT IN USE; (IV) ACCUMULATION OF
TRASH REFUSE OR OTHER DEBRIS; (V) ABSENCE OF WINDOW  COVERINGS  SUCH  AS
CURTAINS,  BLINDS,  OR  SHUTTERS;  (VI)  ONE OR MORE BOARDED, MISSING OR
BROKEN WINDOWS; (VII) THE PROPERTY IS OPEN TO CASUAL ENTRY OR  TRESPASS;
OR  (VIII)  THE  PROPERTY HAS A BUILDING OR STRUCTURE THAT IS OR APPEARS
STRUCTURALLY UNSOUND OR HAS ANY OTHER CONDITION THAT PRESENTS  A  POTEN-
TIAL HAZARD OR DANGER TO THE SAFETY OF PERSONS.
  (B-2) FOR PURPOSES OF DETERMINING WHETHER RESIDENTIAL REAL PROPERTY IS
OCCUPIED, THE MORTGAGEE OR LOAN SERVICING COMPANY SHALL CONDUCT OR CAUSE
TO  BE  CONDUCTED  PERIODIC  INSPECTIONS  OF SUCH PROPERTY AT LEAST ONCE
EVERY THIRTY DAYS COMMENCING NO LATER THAN SEVEN  DAYS  AFTER  THE  DATE
UPON WHICH TWO MORTGAGE PAYMENTS ON SUCH PROPERTY ARE PAST DUE, OR SOON-
ER  IF SO REQUIRED BY FEDERAL STATUTE, RULE, REGULATION, PUBLISHED GUID-
ANCE, OR OTHER REQUIREMENTS OF THE  FEDERAL  NATIONAL  MORTGAGE  ASSOCI-
ATION, FEDERAL HOME LOAN MORTGAGE CORPORATION OR FEDERAL HOUSING FINANCE
AGENCY.

S. 4781--A                          3

  (B-3)  FOR  PURPOSES OF PARAGRAPH (B) OF THIS SUBDIVISION, RESIDENTIAL
REAL PROPERTY SHALL NOT BE DEEMED  "VACANT  AND  ABANDONED"  WHERE  SUCH
PROPERTY   IS:   (I)   AN   UNOCCUPIED   BUILDING  WHICH  IS  UNDERGOING
CONSTRUCTION,  RENOVATION  OR  REHABILITATION  THAT  IS  PROCEEDING   TO
COMPLETION,  AND THE BUILDING IS IN COMPLIANCE WITH ALL APPLICABLE ORDI-
NANCES, CODES, REGULATIONS AND STATUTES; (II) A BUILDING OCCUPIED  ON  A
SEASONAL  BASIS  THAT  IS  OTHERWISE  SECURE;  (III)  A BUILDING THAT IS
SECURE, BUT IS THE SUBJECT OF A PROBATE ACTION, ACTION TO  QUIET  TITLE,
OR OTHER SIMILAR OWNERSHIP DISPUTE; (IV) A BUILDING DAMAGED BY A NATURAL
DISASTER  AND ONE OR MORE OWNER INTENDS TO REPAIR AND REOCCUPY THE PROP-
ERTY; OR (V) OCCUPIED BY THE MORTGAGOR, A RELATIVE OF THE MORTGAGOR OR A
TENANT LAWFULLY IN POSSESSION.
  2. Such [plaintiff] MORTGAGEE AND/OR ITS LOAN  SERVICING  AGENT  shall
have  the  right  to peaceably enter upon such property DETERMINED TO BE
VACANT AND ABANDONED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, or  to
cause  others  to  peaceably  enter  upon  the  property for the limited
purpose of inspections, repairs and  maintenance  as  required  by  this
section,  or  as  otherwise ordered by court; provided, however, that if
the property is occupied by a tenant LAWFULLY IN  POSSESSION,  at  least
seven days notice must be given to such tenant, unless emergency repairs
are  required  in  which case reasonable notice shall be provided to the
tenant.
  2-A. (A) IT SHALL BE UNLAWFUL FOR A MORTGAGEE, ITS SERVICER OR A THIRD
PARTY AGENT OR OTHER PERSON ACTING ON BEHALF OF  A  MORTGAGEE  TO  ENTER
RESIDENTIAL  REAL  PROPERTY  THAT  IS  NOT  VACANT AND ABANDONED FOR THE
PURPOSE OF FORCING, INTIMIDATING, HARASSING OR COERCING A  LAWFUL  OCCU-
PANT  OF  SUCH  RESIDENTIAL PROPERTY TO VACATE THAT PROPERTY IN ORDER TO
RENDER THE PROPERTY VACANT AND ABANDONED, OR TO OTHERWISE FORCE,  INTIM-
IDATE,  HARASS, OR COERCE A LAWFUL OCCUPANT OF RESIDENTIAL REAL PROPERTY
TO VACATE THAT PROPERTY SO THAT IT MAY BE CONSIDERED AS VACANT AND ABAN-
DONED.
  (B) LIABILITY FOR SUCH UNLAWFUL CONDUCT SHALL EXTEND TO ANY  MORTGAGEE
FOR  WHOSE BENEFIT THE ACTIONS WERE INITIATED, IN ADDITION TO ANY AGENT,
EMPLOYEE OR SUBCONTRACTOR OF THE MORTGAGEE WHO RETAINED, HIRED OR OTHER-
WISE ENLISTED THE PERPETRATOR.
  (C) A HOMEOWNER AND/OR OCCUPANT WHO HAS BEEN SUBJECTED TO SUCH  UNLAW-
FUL  CONDUCT MAY BRING AN ACTION FOR DAMAGES AND INJUNCTIVE RELIEF WHICH
MAY BE RAISED AS A COUNTERCLAIM IN A FORECLOSURE OR EVICTION PROCEEDING,
OR IN ANY OTHER ACTION OR PROCEEDING BROUGHT TO REGAIN POSSESSION OF, OR
QUIET TITLE TO, RESIDENTIAL REAL PROPERTY, OR MAY BE RAISED AS AN AFFIR-
MATIVE ACTION IN ANY COURT OF COMPETENT JURISDICTION.
  (D) PUNITIVE DAMAGES, COSTS AND/OR ATTORNEY FEES, MAY BE AWARDED  WHEN
THE CONDUCT COMPLAINED OF HAS BEEN CARRIED OUT WITH KNOWING DISREGARD OF
THE  RIGHTS OF THE OCCUPANT OR WAS PART OF A PATTERN OF CONDUCT INTENDED
TO SECURE THE VACATING OF PROPERTIES SO THAT THOSE PROPERTIES  WOULD  BE
CONSIDERED AS VACANT AND ABANDONED FOR PURPOSES OF THIS SECTION.
  3.  [The] IN ADDITION TO THE AUTHORITY GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO SUBDIVISION THREE OF SECTION  THIRTEEN  HUNDRED  SEVEN-A  OF
THIS  ARTICLE,  THE municipality in which such residential real property
is located, any tenant lawfully in possession, and a board  of  managers
of a condominium in which the premises are located or a homeowners asso-
ciation  if  said  premises  are subject to the rules and regulations of
such an association, shall have the right  to  enforce  the  obligations
described  in  this section in any court of competent jurisdiction after
at least seven days notice to the [plaintiff in the foreclosure  action]
MORTGAGEE  OR  ITS  LOAN  SERVICING  AGENT  unless emergency repairs are

S. 4781--A                          4

required. Any entity acting pursuant to this subdivision  shall  have  a
cause  of  action  in  any  court  of competent jurisdiction against the
[plaintiff in the foreclosure action] MORTGAGEE OR  ITS  LOAN  SERVICING
AGENT to recover costs incurred as a result of maintaining the property.
SUCH  ENTITY  SHALL  PROVIDE THE ATTORNEY GENERAL WITH WRITTEN NOTICE AT
LEAST TEN DAYS PRIOR TO BRINGING AN ACTION PURSUANT TO THIS SUBDIVISION;
PROVIDED, HOWEVER, THAT FAILURE TO COMPLY WITH THIS  NOTICE  REQUIREMENT
SHALL  NOT  BE  A  DEFENSE  TO  THE  ENTITY'S  PROCEEDING. The authority
provided by this subdivision shall be in addition to, and shall  not  be
deemed  to  diminish  or  reduce, any rights of the parties described in
this section under existing law against the mortgagor of  such  property
for failure to maintain such property.
  4.  In  the event the mortgagor of the property commences a proceeding
in bankruptcy court prior  to  the  completion  of  the  public  auction
ordered  in  the  judgment  of  sale, the duties created by this section
shall be suspended during the pendency of the bankruptcy  proceeding  or
until  such time as an order has been entered in that proceeding lifting
or removing the automatic stay of the foreclosure sale.
  5. For the purposes of this section "maintain" shall mean keeping  the
subject  property  in a manner that is consistent with the standards set
forth in the New York property maintenance code chapter 3 sections  301,
302  (excluding  302.2,  302.6  and 302.8), 304.1, 304.3, 304.7, 304.10,
304.12, 304.13, 304.15, 304.16, 307.1,  and  308.1;  provided,  however,
that  if  the  property is occupied by a tenant, then such property must
also be maintained in a safe and habitable condition.
  6. A [plaintiff] MORTGAGEE  OR  ITS  LOAN  SERVICING  AGENT  shall  be
relieved of its responsibilities [to maintain the residential real prop-
erty that is the subject of a foreclosure action] UNDER PARAGRAPH (A) OF
SUBDIVISION  ONE  OF THIS SECTION for the period that a receiver of such
property is serving.
  7. Nothing contained in this section shall diminish  in  any  way  the
obligations  pursuant  to any state or local law of the mortgagor of the
property or a receiver of rents and profits appointed in  an  action  to
foreclose  a  mortgage  to maintain the property prior to the closing of
title pursuant to a foreclosure sale.
  8. This section shall not preempt, reduce or limit any rights or obli-
gations imposed by any local laws with respect to  property  maintenance
and the locality's ability to enforce those laws.
  S  3.  The  real  property  actions  and proceedings law is amended by
adding a new section 1307-a to read as follows:
  S 1307-A. DELINQUENT MORTGAGE; VACANT AND ABANDONED  PROPERTY;  STATE-
WIDE  VACANT  AND  ABANDONED  PROPERTY ELECTRONIC REGISTRY.   1. WHERE A
MORTGAGOR IS THREE MONTHLY PAYMENTS PAST DUE ON A MORTGAGE LOAN  SECURED
BY  RESIDENTIAL REAL PROPERTY, THE MORTGAGEE OR ITS LOAN SERVICING AGENT
SHALL PROVIDE WRITTEN NOTICE TO THE MORTGAGOR STATING THAT THE MORTGAGOR
HAS THE RIGHT TO OCCUPY THE PROPERTY UNTIL HE OR SHE IS ORDERED TO LEAVE
THE PROPERTY BY A COURT OF COMPETENT JURISDICTION. SUCH NOTICE SHALL  BE
PROVIDED TO THE MORTGAGOR WITHIN FIFTEEN DAYS OF THE DATE THAT THE HOME-
OWNER'S  ACCOUNT  IS  PAST DUE BY NINETY DAYS, AND A COPY OF SUCH NOTICE
SHALL PROMPTLY BE PROVIDED BY SUCH MORTGAGEE OR LOAN SERVICING AGENT  TO
THE  ATTORNEY  GENERAL.   THE NOTICE SHALL BE IN FOURTEEN-POINT FONT AND
SHALL INCLUDE THE FOLLOWING LANGUAGE IN A CLEAR AND CONSPICUOUS FORMAT:
  "AS YOUR LOAN SERVICER OR MORTGAGE HOLDER, WE ARE REQUIRED TO SEND YOU
THIS NOTICE PURSUANT TO NEW YORK STATE LAW.

S. 4781--A                          5

  AS THE OWNER OF YOUR HOME, YOU HAVE THE  RIGHT  TO  OCCUPY  YOUR  HOME
UNTIL  SUCH  TIME  AS  YOU  ARE ORDERED TO LEAVE BY A COURT OF COMPETENT
JURISDICTION.
  WE MAY INITIATE COLLECTION ACTIVITY INCLUDING TAKING STEPS TO COMMENCE
AND LITIGATE A FORECLOSURE LAWSUIT AGAINST YOU AND THE PROPERTY.
  YOU  ARE ALLOWED BY NEW YORK STATE LAW TO CONTINUE LIVING IN YOUR HOME
REGARDLESS OF ANY COLLECTION METHODS WE PURSUE OR ORAL OR WRITTEN STATE-
MENTS MADE DURING THE COLLECTIONS  PROCESS,  INCLUDING  THE  FORECLOSURE
PROCESS,  UNTIL  SUCH  TIME  AS YOU ARE ORDERED BY A COURT TO LEAVE YOUR
PROPERTY."
  2. (A) THE ATTORNEY GENERAL SHALL  MAINTAIN  A  STATEWIDE  VACANT  AND
ABANDONED  PROPERTY  REGISTRY IN THE FORM OF AN ELECTRONIC DATABASE. THE
ATTORNEY GENERAL MAY, IN ACCORDANCE WITH THE  APPLICABLE  PROVISIONS  OF
THE  STATE  FINANCE  LAW, RETAIN A PRIVATE CONTRACTOR TO ADMINISTER SUCH
DATABASE FOR THE PURPOSES OF SATISFYING  THIS  REQUIREMENT,  AND  SHALL,
UPON WRITTEN REQUEST, PROVIDE APPROPRIATE OFFICIALS OF ANY COUNTY, CITY,
TOWN  OR VILLAGE WITH DIRECT ELECTRONIC ACCESS TO INFORMATION MAINTAINED
ON SUCH DATABASE FOR THE PURPOSE  OF  ENFORCING  THIS  SECTION,  SECTION
THIRTEEN  HUNDRED  SEVEN  OF  THIS ARTICLE OR ARTICLE NINETEEN-A OF THIS
CHAPTER, OR ANY OTHER RELATED LAW, CODE, RULE, REGULATION OR ORDINANCE.
  (B) A MORTGAGEE OR ITS AGENT SHALL  SUBMIT  TO  THE  ATTORNEY  GENERAL
INFORMATION  REQUIRED BY THE ATTORNEY GENERAL ABOUT ANY VACANT AND ABAN-
DONED RESIDENTIAL REAL PROPERTY, AS THAT TERM IS  DEFINED  IN  PARAGRAPH
(B)  OF  SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTI-
CLE, WITHIN FIFTEEN DAYS OF WHEN THE MORTGAGEE OR ITS AGENTS  LEARN,  OR
REASONABLY  SHOULD  HAVE LEARNED, THAT SUCH PROPERTY IS VACANT AND ABAN-
DONED.  SUCH INFORMATION SHALL, AT A MINIMUM, INCLUDE: (I)  THE  CURRENT
NAME, ADDRESS AND CONTACT INFORMATION FOR THE LENDER OR SERVICER RESPON-
SIBLE  FOR  MAINTAINING  THE VACANT PROPERTY; (II) WHETHER A FORECLOSURE
ACTION HAS BEEN FILED FOR THE PROPERTY IN QUESTION, AND, IF SO, THE DATE
ON WHICH THE FORECLOSURE ACTION WAS COMMENCED; AND (III) THE LAST  KNOWN
ADDRESS AND CONTACT INFORMATION FOR THE MORTGAGEE OF RECORD.
  (C)  WHERE  ANY  OF  THE INFORMATION CONTAINED IN A MORTGAGEE'S OR ITS
AGENT'S INITIAL SUBMISSION TO THE REGISTRY HAS MATERIALLY CHANGED  SINCE
SUCH   SUBMISSION,  SUCH  MORTGAGEE  OR  AGENT  SHALL  MAKE  AN  AMENDED
SUBMISSION TO THE REGISTRY NOT LATER THAN THIRTY DAYS AFTER THE  MORTGA-
GEE  OR  ITS AGENTS LEARN, OR REASONABLY SHOULD HAVE LEARNED, OF THE NEW
OR CHANGED INFORMATION.
  (D) THE ATTORNEY GENERAL IS AUTHORIZED AND  EMPOWERED  TO  ADOPT  SUCH
RULES  AND REGULATIONS AS MAY IN THE JUDGMENT OF THE ATTORNEY GENERAL BE
NECESSARY FOR THE EFFECTIVE ADMINISTRATION AND OPERATION OF SUCH  REGIS-
TRY, INCLUDING BUT NOT LIMITED TO RULES AND REGULATIONS GOVERNING ACCESS
TO  THE REGISTRY AND SPECIFYING THE MANNER AND FREQUENCY OF REGISTRATION
AND THE INFORMATION THAT MUST BE PROVIDED.   THE  ATTORNEY  GENERAL  MAY
AMEND  SUCH REGULATIONS FROM TIME TO TIME AS NECESSARY TO EFFECTUATE THE
PURPOSE OF THIS SECTION AND SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTI-
CLE.
  (D-1) THE ATTORNEY GENERAL SHALL TAKE SUCH MEASURES AS HE OR SHE DEEMS
APPROPRIATE TO ENSURE THAT THE FEDERAL NATIONAL MORTGAGE ASSOCIATION  OR
THE  FEDERAL  HOME LOAN MORTGAGE ASSOCIATION, AS APPLICABLE, IS PROMPTLY
NOTIFIED IN WRITING, WHICH MAY INCLUDE NOTIFICATION BY  EMAIL  OR  OTHER
ELECTRONIC  MEANS,  WHEN RESIDENTIAL REAL PROPERTY WITH RESPECT TO WHICH
EITHER SUCH ASSOCIATION IS THE MORTGAGEE, SERVICER OR INSURER, IS  ADDED
TO THE REGISTRY.
  (E)  THE  ATTORNEY  GENERAL  SHALL  ESTABLISH AND MAINTAIN A TOLL-FREE
HOTLINE THAT NEIGHBORS OF REAL PROPERTY  THAT  IS,  OR  APPEARS  TO  BE,

S. 4781--A                          6

VACANT  AND ABANDONED RESIDENTIAL REAL PROPERTY, AS SUCH TERM IS DEFINED
IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF
THIS ARTICLE, AND OTHER COMMUNITY RESIDENTS CAN USE  TO  REPORT  TO  THE
ATTORNEY  GENERAL  ANY HAZARDS, BLIGHT OR OTHER CONCERNS RELATED TO SUCH
PROPERTY AND TO OBTAIN PUBLICLY  AVAILABLE  INFORMATION  CONCERNING  THE
STATUS  OF  SUCH  PROPERTY.  SUCH  PUBLICLY  AVAILABLE INFORMATION SHALL
INCLUDE BUT NOT BE LIMITED TO WHETHER SUCH PROPERTY IS CURRENTLY  LISTED
ON  THE  STATEWIDE  VACANT  AND  ABANDONED PROPERTY REGISTRY ESTABLISHED
PURSUANT TO THIS SUBDIVISION, AND THE IDENTITY OF THE MORTGAGEE OR  LOAN
SERVICING  COMPANY RESPONSIBLE FOR MAINTAINING SUCH VACANT AND ABANDONED
PROPERTY PURSUANT TO SUBDIVISION ONE OF THIS SECTION. THE OFFICE OF  THE
ATTORNEY  GENERAL  SHALL INCLUDE ON ITS OFFICIAL PUBLIC WEBSITE INFORMA-
TION ABOUT SUCH TOLL-FREE HOTLINE.
  3. (A) WHENEVER A MORTGAGEE OR AGENT OF A MORTGAGEE SHALL VIOLATE THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE,  AN  APPLICA-
TION  MAY  BE  MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
THE STATE OF NEW YORK TO A COURT OR JUSTICE  HAVING  JURISDICTION  BY  A
SPECIAL  PROCEEDING  TO  ISSUE  AN  INJUNCTION,  AND  UPON NOTICE TO THE
DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE  CONTIN-
UANCE  OF  SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF
THE COURT OR JUSTICE THAT THE DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE, AN INJUNCTION
MAY  BE  ISSUED  BY SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY
FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS, IN FACT,
BEEN INJURED OR DAMAGED THEREBY. IN CONNECTION WITH  ANY  SUCH  PROPOSED
APPLICATION, THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A
DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE
WITH THE CIVIL PRACTICE LAW AND RULES.
  (B) IN ADDITION TO, OR IN LIEU OF, THE RELIEF AUTHORIZED IN PARAGRAPHS
(A)  AND  (C)  OF THIS SUBDIVISION, A MUNICIPALITY WHERE THE RESIDENTIAL
REAL PROPERTY IS LOCATED MAY INTERVENE AS A MATTER OF RIGHT IN ANY FORE-
CLOSURE ACTION COMMENCED UNDER THIS ARTICLE FOR THE PURPOSES OF REQUEST-
ING INJUNCTIVE RELIEF TO ASSURE THAT THE PROPERTY IN QUESTION  IS  MAIN-
TAINED  IN  ACCORDANCE  WITH  ALL  ORDINANCES,  CODES,  REGULATIONS  AND
STATUTES AND THAT THE  FORECLOSURE  ACTION  IS  TIMELY  PROSECUTED.  THE
INTERVENOR  MAY  MOVE  TO  HAVE ANY ADJOURNMENTS OR VOLUNTARY DISCONTIN-
UANCES IN SUCH FORECLOSURE ACTION CONDITIONED UPON THE POSTING OF A BOND
OR OTHER UNDERTAKING OR TO ORDER OTHER MEASURES INTENDED TO ENSURE ONGO-
ING MAINTENANCE OF THE PROPERTY UNTIL SUCH TIME AS TITLE TO THE PROPERTY
HAS BEEN TRANSFERRED THROUGH A FORECLOSURE  SALE  OR  OTHERWISE.  INTER-
VENTION  IN  A  FORECLOSURE  ACTION  PURSUANT TO THIS PARAGRAPH SHALL BE
AVAILABLE WITH RESPECT TO ANY RESIDENTIAL PROPERTY SECURED BY A MORTGAGE
LOAN AS DEFINED UNDER SECTION THIRTEEN HUNDRED  FIVE  OF  THIS  ARTICLE,
REGARDLESS  OF  WHETHER  THE PROPERTY IS OCCUPIED, SO LONG AS ONE OF THE
OTHER CONDITIONS DESCRIBED  IN  PARAGRAPH  (B)  OF  SUBDIVISION  ONE  OF
SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE IS PRESENT.
  (C)  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A VIOLATION OF THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE BY A MORTGAGEE
OR AGENT OF A MORTGAGEE HAS OCCURRED,  THE  COURT  MAY  IMPOSE  A  CIVIL
PENALTY OF UP TO ONE THOUSAND DOLLARS PER DAY FOR EACH DAY THE VIOLATION
PERSISTED IN ADDITION TO THE COSTS OF MAINTAINING THE PROPERTY. NOTWITH-
STANDING  ANY  PROVISION  OF  LAW  TO  THE CONTRARY, ALL CIVIL PENALTIES
COLLECTED BY THE ATTORNEY GENERAL PURSUANT TO THIS  PARAGRAPH  SHALL  BE
DEPOSITED  TO  THE  CREDIT OF THE ABANDONED PROPERTY NEIGHBORHOOD RELIEF
FUND ESTABLISHED PURSUANT TO SECTION NINETY-ONE-G OF THE  STATE  FINANCE
LAW.

S. 4781--A                          7

  (D) THE PROVISIONS OF THIS SECTION MAY ALSO BE ENFORCED BY ANY LOCALI-
TY  OR  MUNICIPALITY  IN  WHICH THE VACANT PROPERTY IS LOCATED, PROVIDED
THAT THE LOCALITY OR MUNICIPALITY PROVIDES  THE  ATTORNEY  GENERAL  WITH
WRITTEN  NOTICE  AT  LEAST  TEN  DAYS PRIOR TO COMMENCING SUCH AN ACTION
UNDER  THIS  SECTION;  AND  PROVIDED FURTHER THAT FAILURE TO COMPLY WITH
THIS NOTICE REQUIREMENT SHALL NOT BE A  DEFENSE  TO  THE  LOCALITY'S  OR
MUNICIPALITY'S  PROCEEDING.  ANY CIVIL PENALTY IMPOSED PURSUANT TO PARA-
GRAPH (C) OF THIS SUBDIVISION IN AN ACTION  BROUGHT  BY  A  MUNICIPALITY
PURSUANT TO THIS PARAGRAPH SHALL BE RETAINED BY SUCH MUNICIPALITY.
  4. THIS SECTION SHALL NOT PREEMPT, REDUCE OR LIMIT ANY RIGHTS OR OBLI-
GATIONS  IMPOSED  BY  ANY LOCAL LAW WITH RESPECT TO PROPERTY MAINTENANCE
AND THE LOCALITY'S ABILITY TO ENFORCE THOSE LAWS.
  S 4. A part of the supreme  court  shall  be  devoted  to  foreclosure
actions involving property alleged to be vacant and abandoned.
  S  5.  The  real  property  actions  and proceedings law is amended by
adding a new section 1308 to read as follows:
  S 1308. SPECIAL FORECLOSURE PROCEEDING FOR VACANT AND ABANDONED  RESI-
DENTIAL  REAL PROPERTY. 1.  IN ANY FORECLOSURE ACTION INVOLVING RESIDEN-
TIAL REAL PROPERTY, AS DEFINED IN SECTION THIRTEEN HUNDRED FIVE OF  THIS
ARTICLE,  ALLEGED  TO BE VACANT AND ABANDONED, THE PLAINTIFF MAY MAKE AN
APPLICATION FOR AN ORDER TO SHOW CAUSE UPON NOTICE WHICH SEEKS ENTRY  OF
JUDGMENT  OF  FORECLOSURE  AND SALE ON THE GROUNDS THAT SUCH PROPERTY IS
VACANT AND ABANDONED. ANY SUCH APPLICATION SHALL BE MADE  VIA  ORDER  TO
SHOW  CAUSE,  WHEREIN  THE  COURT  SHALL  DIRECT SERVICE CONSISTENT WITH
SECTION THREE HUNDRED EIGHT OF THE CIVIL PRACTICE LAW AND RULES. NO SUCH
APPLICATION SHALL BE DIRECTED TO BE SERVED UPON DEFENDANT UNTIL THE TIME
TO ANSWER THE COMPLAINT IN SUCH ACTION SHALL HAVE EXPIRED, NOR SHALL ANY
SUCH APPLICATION BE GRANTED UNTIL AFTER THE MANDATORY SETTLEMENT CONFER-
ENCE PURSUANT TO RULE THREE THOUSAND FOUR HUNDRED  EIGHT  OF  THE  CIVIL
PRACTICE LAW AND RULES HAS BEEN NOTICED TO ANY SUCH DEFENDANT, AND AFTER
ALL  SUCH  DEFENDANTS  HAVE  FAILED  TO APPEAR FOR SAID CONFERENCE. SUCH
APPLICATION SHALL:
  (A) STATE ON THE FACE OF THE ORDER TO SHOW CAUSE THAT "THIS  ORDER  TO
SHOW CAUSE SEEKS ENTRY OF A JUDGMENT OF FORECLOSURE AND SALE PURSUANT TO
REAL  PROPERTY ACTIONS AND PROCEEDINGS LAW S 1308 ON THE GROUND THAT THE
MORTGAGED PREMISES ARE VACANT AND ABANDONED";
  (B) SET FORTH THE ALLEGATIONS EVIDENCING VACANT AND ABANDONED RESIDEN-
TIAL PROPERTY AS PROVIDED FOR UNDER SUBDIVISION FOUR OF THIS SECTION AND
ATTACH DOCUMENTARY EVIDENCE IN SUPPORT;
  (C) STATE WITHIN THE AFFIDAVIT OR AFFIRMATION SUPPORTING THE  APPLICA-
TION  THE  SUMS  ALLEGED  TO  BE DUE AND OWING UPON THE SUBJECT MORTGAGE
DOCUMENTS AND ATTACH DOCUMENTARY EVIDENCE IN SUPPORT, INCLUDING BUT  NOT
LIMITED TO PROOF OF OWNERSHIP OF THE MORTGAGE AND THE NOTE; AND
  (D)  STATE WITHIN THE AFFIDAVIT OR AFFIRMATION SUPPORTING THE APPLICA-
TION THAT AN IMMEDIATE ORDER OF REFERENCE IS SOUGHT FOR THE  APPOINTMENT
OF A REFEREE TO COMPUTE PURSUANT TO THIS CHAPTER.
  2. THE CHIEF ADMINISTRATIVE JUDGE OF THE COURTS SHALL ADOPT SUCH RULES
AS  HE  OR SHE DEEMS NECESSARY TO EXPEDITIOUSLY IMPLEMENT THE PROVISIONS
OF THIS SUBDIVISION.
  3. THE COURT SHALL TAKE THE EVIDENCE SUPPORTING THE FACTS AND  CIRCUM-
STANCES  STATED  IN THE ORDER TO SHOW CAUSE AND SHALL EXAMINE THE PLAIN-
TIFF OR HIS OR HER AGENT, AT AN EVIDENTIARY HEARING UNDER  OATH,  AS  TO
THE  EVIDENCE  PRESENTED  WITH RESPECT TO VACANT AND ABANDONED PROPERTY,
AND SHALL MAKE A WRITTEN FINDING WHETHER THE PROPERTY TO  BE  FORECLOSED
UPON  PURSUANT  TO THIS SECTION MEETS THE DEFINITION OF VACANT AND ABAN-
DONED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION AND SHALL  SET  FORTH

S. 4781--A                          8

WITH  SPECIFICITY  THE  FACTORS  MET  UNDER SUCH SECTION. EVIDENCE TO BE
SUBMITTED TO THE COURT SHALL INCLUDE UTILITY COMPANY RECORDS  EVIDENCING
THE  ABANDONED  STATUS  OF  THE PREMISES. WRITTEN FINDINGS SHALL INCLUDE
EVIDENCE THAT THE PLAINTIFF IS THE OWNER AND HOLDER OF THE SUBJECT MORT-
GAGE  AND NOTE, OR HAS BEEN DELEGATED THE AUTHORITY TO INSTITUTE A MORT-
GAGE FORECLOSURE ACTION BY THE OWNER OF SAME.
  4. (A) AS USED IN THIS SECTION,  "VACANT  AND  ABANDONED"  RESIDENTIAL
REAL  PROPERTY  MEANS  RESIDENTIAL  REAL PROPERTY, AS DEFINED IN SECTION
THIRTEEN HUNDRED FIVE OF THIS ARTICLE, WITH RESPECT TO WHICH THE MORTGA-
GEE PROVES TO THE SATISFACTION OF THE COURT THAT THE MORTGAGED  PROPERTY
IS  NOT OCCUPIED BY A MORTGAGOR OR TENANT AS DEFINED IN SECTION THIRTEEN
HUNDRED FIVE OF THIS ARTICLE, AND:
  (1) THE PROPERTY IS A RISK TO THE HEALTH, SAFETY, OR  WELFARE  OF  THE
PUBLIC,  OR  ANY  ADJOINING  OR ADJACENT PROPERTY OWNERS, DUE TO ACTS OF
VANDALISM, LOITERING, CRIMINAL CONDUCT, OR PHYSICAL DESTRUCTION OR DETE-
RIORATION OF THE PROPERTY; OR
  (2) THE RELEVANT GOVERNMENTAL  AUTHORITY  HAS  DECLARED  THE  PROPERTY
UNFIT  FOR OCCUPANCY AND TO REMAIN VACANT AND UNOCCUPIED OR TO BE DEMOL-
ISHED.
  (B) FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL  NOT
BE  CONSIDERED  "VACANT  AND  ABANDONED"  IF  THE PROPERTY IS A BUILDING
DESCRIBED IN SUBPARAGRAPH (I), (II), (III) OR (IV) OF PARAGRAPH (B-3) OF
SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE, OR IS
OCCUPIED AS DESCRIBED IN SUBPARAGRAPH (V) OF SUCH PARAGRAPH.
  5. (A) A JUDGMENT OF FORECLOSURE AND SALE SHALL NOT BE ENTERED  PURSU-
ANT TO THIS SECTION IF THE MORTGAGOR OR ANY OTHER DEFENDANT HAS FILED AN
ANSWER, APPEARANCE OR OTHER WRITTEN OBJECTION THAT IS NOT WITHDRAWN.
  (B)  THE COURT'S DENIAL OF A JUDGMENT OF FORECLOSURE AND SALE PURSUANT
TO THIS SECTION WHERE THE COURT DOES NOT FIND THAT THE MORTGAGED PROPER-
TY IS VACANT AND ABANDONED SHALL NOT BE ON THE MERITS.
  (C) THE PROVISIONS OF THIS SECTION SHALL NOT PREEMPT, REDUCE OR  LIMIT
ANY  RIGHTS  OR  OBLIGATIONS  IMPOSED  BY ANY LOCAL LAWS WITH RESPECT TO
PROPERTY MAINTENANCE OR A LOCALITY'S ABILITY TO ENFORCE SUCH LAWS.
  (D) THE PROVISIONS OF THIS SECTION SHALL NOT ABROGATE  ANY  RIGHTS  OR
DUTIES PURSUANT TO THIS ARTICLE.
  S  6. The state finance law is amended by adding a new section 91-g to
read as follows:
  S 91-G.  ABANDONED  PROPERTY  NEIGHBORHOOD  RELIEF  FUND;  ENFORCEMENT
ASSISTANCE GRANTS. 1.  THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE
STATE  COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE "ABANDONED PROPERTY
NEIGHBORHOOD RELIEF FUND."
  2. SUCH FUND SHALL CONSIST OF ALL CIVIL  PENALTIES  COLLECTED  BY  THE
ATTORNEY  GENERAL  PURSUANT  TO  PARAGRAPH  (C)  OF SUBDIVISION THREE OF
SECTION THIRTEEN HUNDRED  SEVEN-A  OF  THE  REAL  PROPERTY  ACTIONS  AND
PROCEEDINGS  LAW  AND  REQUIRED  TO BE DEPOSITED INTO THIS FUND, AND ALL
OTHER MONEYS CREDITED OR TRANSFERRED THERETO  FROM  ANY  OTHER  FUND  OR
SOURCE PURSUANT TO LAW. ANY INCOME EARNED ON MONEYS WITHIN THE ABANDONED
PROPERTY  NEIGHBORHOOD  RELIEF FUND SHALL BE ADDED TO AND MADE AVAILABLE
FOR THE PURPOSE OF SUCH FUND.
  3. MONIES OF THE FUND SHALL BE ALLOCATED TO AND EXPENDED BY THE ATTOR-
NEY GENERAL, ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER, ONLY FOR
THE PURPOSE  OF  PROVIDING  ABANDONED  PROPERTY  ENFORCEMENT  ASSISTANCE
GRANTS  TO LOCALITIES IN ACCORDANCE WITH SUBDIVISIONS FOUR, FIVE AND SIX
OF THIS SECTION.
  4. THE CHIEF ELECTED OFFICIAL OF  A  COUNTY,  CITY,  TOWN  OR  VILLAGE
LOCATED  WITHIN  THE  STATE  MAY,  ON  AN ANNUAL BASIS, SUBMIT A WRITTEN

S. 4781--A                          9

APPLICATION TO THE ATTORNEY GENERAL, OR HIS OR HER AUTHORIZED  DESIGNEE,
FOR  AN  ABANDONED  PROPERTY ENFORCEMENT ASSISTANCE GRANT FROM AVAILABLE
MONEYS IN THE ABANDONED PROPERTY NEIGHBORHOOD  RELIEF  FUND  ESTABLISHED
PURSUANT  TO SUBDIVISION ONE OF THIS SECTION. THE ATTORNEY GENERAL SHALL
REQUIRE THAT APPLICATIONS SUBMITTED PURSUANT TO THIS SUBDIVISION PROVIDE
SUCH INFORMATION AS THE ATTORNEY GENERAL DEEMS  APPROPRIATE,  INCLUDING,
AT A MINIMUM, THE FOLLOWING:
  (A) THE AMOUNT OF FUNDING SOUGHT;
  (B)  A  DETAILED DESCRIPTION OF THE IMPACT THAT THE PRESENCE OF VACANT
AND ABANDONED RESIDENTIAL REAL PROPERTIES IN THE REQUESTING LOCALITY HAS
HAD ON ITS AFFECTED COMMUNITIES, THE LOCALITY'S EFFORTS TO  ADDRESS  THE
PROBLEM TO DATE AND THE RESULT OF THOSE EFFORTS;
  (C)  A  DETAILED DESCRIPTION OF THE ENFORCEMENT PURPOSE OR PURPOSES TO
WHICH THE FUNDING WILL  BE  APPLIED,  WITH  SPECIFIC  REFERENCE  TO  THE
PROVISION  OR PROVISIONS OF SECTIONS THIRTEEN HUNDRED SEVEN AND THIRTEEN
HUNDRED SEVEN-A OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW  SOUGHT
TO BE ENFORCED; AND
  (D) THE DATE AND RESULT OF ANY PRIOR APPLICATIONS MADE BY THE LOCALITY
TO THE ATTORNEY GENERAL PURSUANT TO THIS SECTION.
  5. IN DETERMINING WHETHER TO APPROVE AN APPLICATION SUBMITTED PURSUANT
TO  SUBDIVISION  FOUR  OF THIS SECTION, THE ATTORNEY GENERAL SHALL, AT A
MINIMUM, CONSIDER:
  (A) THE EXTENT TO WHICH THE PRESENCE OF VACANT AND ABANDONED  RESIDEN-
TIAL  PROPERTIES  IN THE REQUESTING LOCALITY HAS NEGATIVELY IMPACTED THE
COMMUNITIES WHERE THOSE PROPERTIES ARE LOCATED AND  THE  LOCALITY  AS  A
WHOLE;
  (B)  THE LIKELY IMPACT APPROVAL OF THE APPLICATION AND DISBURSEMENT OF
FUNDS WOULD HAVE ON ADDRESSING THE PROBLEM OF VACANT AND ABANDONED RESI-
DENTIAL PROPERTIES IN THE REQUESTING LOCALITY THROUGH ENHANCED  ENFORCE-
MENT  OF SECTIONS THIRTEEN HUNDRED SEVEN AND THIRTEEN HUNDRED SEVEN-A OF
THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW;
  (C) THE AVAILABILITY OF OTHER SOURCES OF FUNDING TO PAY SOME OR ALL OF
THE ENFORCEMENT COSTS FOR WHICH THE REQUESTING LOCALITY  SEEKS  FUNDING;
AND
  (D)  WHERE THE REQUESTING LOCALITY PREVIOUSLY APPLIED FOR AND RECEIVED
AN ENFORCEMENT ASSISTANCE GRANT PURSUANT TO THIS  SECTION,  WHETHER  THE
GRANT  FUNDS WERE USED BY THE LOCALITY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION AND ANY APPLICABLE RULES OR REGULATIONS ADOPTED  BY  THE
ATTORNEY GENERAL.
  6. UPON APPROVAL OF AN APPLICATION, THE ATTORNEY GENERAL MAY AUTHORIZE
DISBURSEMENT  OF  FUNDS  IN  ANY  AMOUNT  UP TO THE AMOUNT SOUGHT BY THE
REQUESTING LOCALITY. SUCH DISBURSEMENT MAY BE BY ADVANCE PAYMENT TO  THE
LOCALITY  BEFORE  IT  INCURS  THE  COST FOR WHICH ITS APPLICATION SOUGHT
FUNDING, BY REIMBURSEMENT TO THE LOCALITY AFTER IT INCURS AND PAYS  SUCH
COSTS  IN  THE  FIRST  INSTANCE,  OR BY SOME COMBINATION THEREOF, AS THE
ATTORNEY GENERAL DETERMINES IS APPROPRIATE UNDER THE CIRCUMSTANCES.  ANY
AND  ALL  ENFORCEMENT ASSISTANCE GRANT MONEYS DISBURSED PURSUANT TO THIS
SECTION SHALL BE USED BY THE RECIPIENT COUNTY,  CITY,  TOWN  OR  VILLAGE
SOLELY  TO  AID IN THE ENFORCEMENT BY SUCH LOCALITY OF SECTIONS THIRTEEN
HUNDRED SEVEN AND THIRTEEN HUNDRED SEVEN-A OF THE REAL PROPERTY  ACTIONS
AND PROCEEDINGS LAW.
  7.  THE  ATTORNEY GENERAL SHALL ADOPT SUCH RULES AND REGULATIONS AS HE
OR SHE DEEMS APPROPRIATE TO EFFECTUATE THE  PURPOSES  OF  THIS  SECTION,
INCLUDING  PROVISIONS  FOR  PERIODIC  MONITORING  AND  EVALUATION OF THE
ENFORCEMENT ASSISTANCE GRANT PROGRAM ESTABLISHED HEREIN.

S. 4781--A                         10

  8. THE STATE COMPTROLLER SHALL HAVE THE POWER TO INSPECT, EXAMINE  AND
AUDIT  THE FISCAL AFFAIRS OF ANY LOCALITY AWARDED AN ENFORCEMENT ASSIST-
ANCE GRANT PURSUANT TO THIS SECTION TO THE EXTENT NECESSARY TO DETERMINE
WHETHER THE FUNDING RECEIVED  HAS  BEEN  USED  IN  ACCORDANCE  WITH  THE
PURPOSE  OR  PURPOSES  FOR  WHICH  IT WAS SOUGHT IN THE APPLICATION, AND
WHETHER THERE HAS BEEN COMPLIANCE WITH THE APPLICABLE PROVISIONS OF THIS
SECTION AND ANY APPLICABLE RULES OR REGULATIONS ADOPTED BY THE  ATTORNEY
GENERAL.
  9.  THE  ATTORNEY GENERAL, IN CONSULTATION WITH THE STATE COMPTROLLER,
SHALL REPORT ANNUALLY TO THE GOVERNOR AND THE LEGISLATURE REGARDING  THE
OPERATION AND SUCCESS OF SUCH GRANT PROGRAM.
  S  7.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that  effective  immediately,  the
addition  and/or  repeal  of  any  rule  or regulation necessary for the
implementation of this act on  its  effective  date  is  authorized  and
directed to be made and completed on or before such effective date.

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The New York State Senate

senate Bill S4781A

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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senate Bill S4781A

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Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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Bill Amendments

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S4781 - Details

S4781 - Summary

S4781 - Sponsor Memo

S4781 - Bill Text download pdf

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S4781A (ACTIVE) - Details

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S4781A (ACTIVE) - Sponsor Memo

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