NY State Senate Bill 2015-S7434

Senate Bill S7434

2015-2016 Legislative Session

Directs the department of financial services to establish an electronic database of residential real property that was foreclosed upon

download bill text pdf

Archive: Last Bill Status - In Senate Committee Finance 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 11, 2016	reported and committed to finance
Apr 29, 2016	referred to banks

Votes

- May 11, 2016 - Banks Committee Vote
  S7434
  
  12
  
  Aye
  
  2
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Banks Committee Vote: May 11, 2016
      
      aye (12)
      
      Amedore
      
      Avella
      
      Breslin
      
      Golden
      
      Hamilton
      
      Kennedy
      
      Latimer
      
      Marcellino
      
      Murphy
      
      O'Mara
      
      Parker
      
      Savino
      
      nay (2)
      
      Akshar
      
      Bonacic
      
      aye wr (3)
      
      Farley
      
      Marchione
      
      Martins
      
      excused (2)
      
      Diaz
      
      Sanders Jr.

co-Sponsors

2015-S7434 (ACTIVE) - Details

See Assembly Version of this Bill:: A10072
Current Committee:: Senate Finance
Law Section:: Banking Law
Laws Affected:: Add §37-b, Bank L; amd §1307, RPAP L

2015-S7434 (ACTIVE) - Summary

Directs the department of financial services to establish an electronic database of residential real property that was foreclosed upon, and is vacant or abandoned but occupied by tenants; grants municipalities, the department of law and certain non-governmental entities access to such database for the purposes of enforcing the duty to maintain foreclosed property.

2015-S7434 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7434

 TITLE OF BILL :

An act to amend the banking law, in relation to establishing a
statewide electronic database of foreclosed residential real property;
and to amend the real property actions and proceedings law, in
relation to authorizing the attorney general to enforce the duty to
maintain foreclosed property

 PURPOSE :

The purpose of this legislation is to ensure financial institutions
that obtain a judgment of foreclosure and sale on real residential
property adhere by the legal requirement to maintain such property. To
better hold these financial institutions accountable, this
legislation: requires the department of financial services establish a
statewide database of foreclosed real residential property with
essential information made available to municipalities and, upon a
freedom of information law request, non-government entities; demands
the department of financial services establish a toll-free hotline for
residents to report foreclosed real residential properties; and
authorizes the attorney general to impose fines and initiate legal
proceedings against financial institutions that fail to adhere by the
duty to maintain foreclosed real residential properties they possess.

 SUMMARY OF PROVISIONS :

Section 1: Amends the banking law by adding a new section 37-b to
require financial institutions that obtain a judgment of foreclosure
and sale on a real residential property submit a notice to the
department of financial services with essential contact and
geographical information on such property within ten days of learning
the foreclosed residential real property is vacant or abandoned. Any
new information or changes to existing information contained in the
original notice must be submitted to the department of financial
services no later than ten days after the financial institution
learned of the new or changed information.

The department of financial services is required to establish and
maintain a statewide electronic database of the information received
on foreclosed residential real property. The office of the attorney
general and municipalities with foreclosed residential real property
listed on the electronic database are granted access to the database
for the purposes of enforcing the duty to maintain such property.
Neighborhood associations, nonprofits, and other non-government
entities authorized to enforce the duty to maintain are granted access
to the database upon filing a freedom of information law request.

The department of financial services is required to establish and
maintain a toll-free hotline or internet web address for state
residents to contact with reports of foreclosed residential real
property.

Section 2: Amends section 1307 of the real property actions and
proceeding law by adding two new subdivisions. Subdivision 9
authorizes the attorney general to institute a civil action or
proceeding against financial institutions to enforce the duty to
maintain. Subdivision 10 authorizes the office of the attorney general
to impose a fine of $1,000 per real residential property on financial
institutions that fail to maintain such property for which they have
obtained a judgment of foreclosure.

Section 3: The act takes effect one hundred an eighty days after it
becomes law. However, effective immediately, actions necessary to

implement the provisions of the act are authorized and directed to be
completed before the one hundred and eighty days.

 JUSTIFICATION :

Section 1307 of the real property actions and proceedings law extends
the duty to maintain property to owners, including financial
institutions, that are awarded a judgment of foreclosure, and allows
municipalities, tenants, or boards of managers with regards to a
condo, the right to enforce the duty to maintain after at least seven
days' notice, unless emergency repairs are required, and to have a
cause of action to recover costs incurred as a result of maintaining
the property. However, a series of investigations titled "The Next
Great American Robbery" provide evidence that financial institutions
in possession of these foreclosed homes fail to properly maintain
these properties, municipalities often face many challenges in
identifying lenders when attempting to enforce the duty to maintain,
and the legal process for municipalities to recover the costs incurred
has proven to be cumbersome and costly. This legislation is an effort
to make information on foreclosed homes in the state easily accessible
to municipalities and non-government entities to better enforce the
duty to maintain, while holding financial institutions accountable if
they fail to adhere by state law.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATION :

To be determined.

 EFFECTIVE DATE :
On January first, next succeeding the date upon which it shall have
become a law.

2015-S7434 (ACTIVE) - Bill Text download pdf

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

                                  7434

                            I N  S E N A T E

                             April 29, 2016
                               ___________

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

AN ACT to amend the banking law, in relation to establishing a statewide
  electronic database of foreclosed residential real  property;  and  to
  amend  the  real  property actions and proceedings law, in relation to
  authorizing the attorney general to enforce the duty to maintain fore-
  closed property

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

  Section  1. The banking law is amended by adding a new section 37-b to
read as follows:
  S 37-B. STATEWIDE ELECTRONIC  DATABASE;  FORECLOSED  RESIDENTIAL  REAL
PROPERTY.  1.  WHERE A MORTGAGEE OR ITS AGENT HAS OBTAINED A JUDGMENT OF
FORECLOSURE AND SALE PURSUANT TO SECTION THIRTEEN HUNDRED  FIFTY-ONE  OF
THE  REAL  PROPERTY  ACTIONS  AND PROCEEDINGS LAW, INVOLVING RESIDENTIAL
REAL PROPERTY, AS DEFINED IN SECTION THIRTEEN HUNDRED FIVE OF SUCH  LAW,
THAT IS OR HAS BECOME VACANT, OR HAS BEEN ABANDONED BY THE MORTGAGOR BUT
OCCUPIED  BY  A  TENANT,  SHALL  PROVIDE  WRITTEN  NOTICE THEREOF TO THE
DEPARTMENT, IN SUCH FORM AND MANNER AS SHALL BE DETERMINED BY THE SUPER-
INTENDENT.
  A MORTGAGEE OR ITS AGENT SHALL SUBMIT SUCH NOTICE WITHIN TEN  DAYS  OF
WHEN THE MORTGAGEE OR ITS AGENT LEARNS OR REASONABLY SHOULD HAVE LEARNED
THAT  THE  FORECLOSED  RESIDENTIAL REAL PROPERTY IS VACANT OR ABANDONED.
SUCH NOTICE SHALL INCLUDE, AT A MINIMUM, THE CURRENT NAME,  ADDRESS  AND
CONTACT  INFORMATION FOR THE MORTGAGEE OR AGENT, THE ADDRESS OF THE REAL
PROPERTY, THE TAX IDENTIFICATION NUMBER OF THE REAL PROPERTY, AND WHETH-
ER THE PROPERTY IS VACANT OR ABANDONED BUT OCCUPIED BY TENANTS.
  2. WHERE ANY OF THE INFORMATION CONTAINED IN A NOTICE TO  THE  DEPART-
MENT MATERIALLY CHANGES SINCE THE SUBMISSION THEREOF OR OWNERSHIP OF THE
RESIDENTIAL  REAL  PROPERTY  HAS  BEEN TRANSFERRED, THE MORTGAGEE OR ITS
AGENT SHALL MAKE AN AMENDED SUBMISSION NOT LATER THAN TEN DAYS AFTER  IT
LEARNS  OR REASONABLY SHOULD HAVE LEARNED OF THE NEW OR CHANGED INFORMA-
TION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14298-02-6

S. 7434                             2

  3. THE DEPARTMENT SHALL ESTABLISH AND MAINTAIN A STATEWIDE  ELECTRONIC
DATABASE  OF  THE  INFORMATION  ON  FORECLOSED RESIDENTIAL REAL PROPERTY
RECEIVED PURSUANT TO THIS SECTION. THE DEPARTMENT SHALL GRANT ACCESS  TO
SUCH  DATABASE  TO  THE DEPARTMENT OF LAW, FOR PURPOSES OF ENFORCING THE
PROVISIONS  OF  SECTION  THIRTEEN  HUNDRED  SEVEN  OF  THE REAL PROPERTY
ACTIONS AND PROCEEDINGS LAW. FURTHERMORE, MUNICIPALITIES IN WHICH  RESI-
DENTIAL REAL PROPERTY, INCLUDED IN SUCH DATABASE, IS LOCATED, SHALL HAVE
ACCESS TO THE DATABASE FOR THOSE PROPERTIES WITHIN THE MUNICIPALITY, FOR
THE  PURPOSES  OF  ENFORCING  SECTION THIRTEEN HUNDRED SEVEN OF THE REAL
PROPERTY ACTIONS AND PROCEEDINGS LAW. THE INFORMATION  IN  THE  DATABASE
SHALL  BE KEPT AND REMAIN CONFIDENTIAL BY THE DEPARTMENT, THE DEPARTMENT
OF LAW AND MUNICIPALITIES; PROVIDED, HOWEVER, SUCH  INFORMATION  MAY  BE
DISCLOSED  BY  A  MUNICIPALITY,  UPON WRITTEN REQUEST, TO A NEIGHBORHOOD
ASSOCIATION OR ANY OTHER NON-GOVERNMENTAL ENTITY AUTHORIZED  TO  ENFORCE
THE  PROVISIONS  OF  SECTION THIRTEEN HUNDRED SEVEN OF THE REAL PROPERTY
ACTIONS AND PROCEEDINGS LAW.
  4. THE DEPARTMENT SHALL ESTABLISH  AND  MAINTAIN  EITHER  A  TOLL-FREE
TELEPHONE  HOTLINE OR AN INTERNET WEB ADDRESS WHEREBY PERSONS MAY REPORT
THE EXISTENCE OF FORECLOSED RESIDENTIAL REAL  PROPERTY  THAT  IS  EITHER
VACANT OR ABANDONED BUT OCCUPIED BY TENANTS.
  S  2. Section 1307 of the real property actions and proceedings law is
amended by adding two new subdivisions 9 and 10 to read as follows:
  9. THE ATTORNEY GENERAL SHALL HAVE THE AUTHORITY TO INSTITUTE A  CIVIL
ACTION OR PROCEEDING TO ENFORCE THE PROVISIONS OF THIS SECTION.
  10.  A  PLAINTIFF IN A MORTGAGE FORECLOSURE ACTION WHO OBTAINS A JUDG-
MENT OF FORECLOSURE WHO KNOWINGLY VIOLATES ANY PROVISION OF THIS ARTICLE
OR ANY RULE OR REGULATION PROMULGATED PURSUANT THERETO, SHALL BE SUBJECT
TO A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS  FOR  EVERY  RESIDENTIAL
REAL PROPERTY IT FAILS TO MAINTAIN.
  S 3. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a law. Provided, however, that, effective imme-
diately, any and all actions necessary to implement  the  provisions  of
this  act  on  its  effective  date  are  authorized  and directed to be
completed on or before such date.

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.

Senate Bill S7434

Share this bill

Sponsored By

Jeffrey D. Klein