NY State Senate Bill 2015-S6259

Senate Bill S6259

2015-2016 Legislative Session

Directs the court to provide notice to the former owners of foreclosed property of the right to file a claim for the excess funds from the sale of the real property

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 16, 2016	referred to judiciary delivered to assembly passed senate
May 11, 2016	advanced to third reading
May 10, 2016	2nd report cal.
May 09, 2016	1st report cal.717
Jan 06, 2016	referred to housing, construction and community development

Votes

- May 16, 2016 - Floor Vote
  S6259
  
  59
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 16, 2016
      
      aye (59)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      nay (1)
      
      Perkins
      
      excused (3)
      
      Diaz
      
      Nozzolio
      
      Seward
  May 9, 2016 - Housing, Construction And Community Development Committee Vote
  S6259
  
  9
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: May 9, 2016
      
      aye (9)
      
      Avella
      
      Bonacic
      
      Boyle
      
      Espaillat
      
      Gallivan
      
      Krueger
      
      Little
      
      Panepinto
      
      Young

2015-S6259 (ACTIVE) - Details

Current Committee:: Assembly Judiciary
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §§1354 & 1136, RPAP L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3948
2019-2020: S882, S4683
2021-2022: S3130
2023-2024: S2082

2015-S6259 (ACTIVE) - Summary

Directs the court to provide notice to the former owners of foreclosed property of the right to file a claim for the excess funds from the sale of the real property.

2015-S6259 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6259

 TITLE OF BILL :  An act to amend the real property actions and
proceedings law and the real property tax law, in relation to
requiring the court in a foreclosure action to provide notice to the
former owner of the real property of the right to apply for surplus
moneys from the sale of such property

 PURPOSE :

This bill will require that those who formerly owned foreclosed
property are notified that they may be entitled to a portion of the
surplus of funds remaining after an in rem foreclosure sale.

 SUMMARY OF PROVISIONS :

Section 1. Adds a new subdivision 5 to section 1354 of the real
property actions and proceedings law to require that after the surplus
monies resulting from an in rem foreclosure tax sale are provided to
the court, the court shall provide notice to the former owner or
owners of the property of their right to file a written notice of
claim to all of a portion of such proceeds pursuant to section 1361 of
the real property tax law.

Section 2. Adds a new subdivision 4 to section 1136 of the real
property tax law to require a court that has vested title to in rem

foreclosed property to a municipal entity shall notify the former
property owner or owners that they may be entitled to file for any
surplus funds which may result from a future tax sale of such
property.

 JUSTIFICATION :

Currently there is no state requirement that former owners of a
property foreclosed upon for failure to pay taxes are notified of
their potential entitlement to any surplus funds which may result when
the property is sold. The bill will close a loophole in state law
which was highlighted in a recent news article examining the city of
Buffalo's unclaimed tax foreclosure process. The City retained
approximately $11.6 million in auction proceeds after the in rem
foreclosure sale, which have never been claimed. The funds would
eventually be transmitted to the state as unclaimed funds. Many former
owners and other property lienholders were never made aware that the
sale of their former property resulted in a surplus to which they may
be legally entitled. This bill requires that a former be owner be
notified that there is a potential surplus when the title is vested in
the municipality and again, if, after the property has been sold by
the municipality so that they will be afforded knowledge of the
existence of a surplus and their right to file a claim for a portion
of those funds.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediate.

2015-S6259 (ACTIVE) - Bill Text download pdf

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

                                  6259

                            I N  S E N A T E

                               (PREFILED)

                             January 6, 2016
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to  amend the real property actions and proceedings law and the
  real property tax law, in relation to requiring the court in  a  fore-
  closure action to provide notice to the former owner of the real prop-
  erty  of  the  right to apply for surplus moneys from the sale of such
  property

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

  Section  1.  Section 1354 of the real property actions and proceedings
law is amended by adding a new subdivision 5 to read as follows:
  5. THE COURT SHALL PROVIDE NOTICE TO THE FORMER OWNER OR OWNERS OF THE
FORECLOSED REAL PROPERTY OF THE EXISTENCE OF  SURPLUS  MONEYS  RESULTING
FROM  THE  SALE AND THEIR RIGHT TO FILE A WRITTEN NOTICE OF CLAIM TO ALL
OR A PORTION OF SUCH  PROCEEDS  PURSUANT  TO  SECTION  THIRTEEN  HUNDRED
SIXTY-ONE OF THIS ARTICLE.
  S  2. Section 1136 of the real property tax law is amended by adding a
new subdivision 4 to read as follows:
  4. NOTICE TO FORMER OWNERS. IN THE EVENT THE COURT DIRECTS THE SALE OF
REAL PROPERTY PURSUANT TO THIS SECTION, THE COURT SHALL  PROVIDE  NOTICE
TO  THE  FORMER  OWNER  OR  OWNERS  OF THE FORECLOSED REAL PROPERTY THAT
OWNERSHIP OF SUCH PROPERTY HAS BEEN TRANSFERRED TO A MUNICIPALITY  OR  A
TAX  DISTRICT,  THAT  AFTER  THE  SALE THEREOF THERE IS A POTENTIAL THAT
SURPLUS MONEYS MAY RESULT FROM THE SALE  AND  IN  THE  EVENT  A  SURPLUS
RESULTS,  SUCH  OWNER  OR  OWNERS  SHALL  HAVE A RIGHT TO FILE A WRITTEN
NOTICE OF CLAIM TO ALL OR A PORTION OF SUCH PROCEEDS PURSUANT TO SECTION
THIRTEEN HUNDRED SIXTY-ONE OF THE REAL PROPERTY ACTIONS AND  PROCEEDINGS
LAW.
  S 3. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13264-02-5

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.