Senate Bill S769

2015-2016 Legislative Session

Requires certain individuals or entities to maintain a property in good condition during the term of foreclosure

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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to housing, construction and community development
Jan 07, 2015	referred to housing, construction and community development

2015-S769 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1307, RPAP L; add §270.40, Pen L
Versions Introduced in 2013-2014 Legislative Session:: S5292

2015-S769 (ACTIVE) - Summary

Requires certain individuals or entities to maintain a property in good condition during the term of foreclosure; creates a class B misdemeanor for any person who violates such provisions.

2015-S769 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S769

TITLE OF BILL:  An act to amend the real property actions and
proceedings law and the penal law, in relation to requiring a
plaintiff in a mortgage foreclosure action to maintain the subject
property in good faith

PURPOSE:

To require plaintiffs in mortgage foreclosure actions to act in good
faith at the commencement of a foreclosure action and throughout the
foreclosure process and to create the crime of criminal negligence of
vacant real property in foreclosure proceedings.

SUMMARY OF PROVISIONS:

Section 1307 of the real property, actions and proceedings law is
amended to require plaintiffs from the commencement of foreclosure
proceedings to obtain a mortgage foreclosure in 'good faith' and
defines 'good faith' as honesty in fact and the observance of
reasonable standards of fair dealing.  The penal law is amended by
adding a new section 270.40 creates the crime of criminal negligence
of vacant real property under foreclosure proceedings, a class B
misdemeanor, when an entity is in violation of section 1307 of the
real property, actions and proceedings law.

JUSTIFICATION:

Due to New York State's struggling financial situation a financial
crisis emerged causing citizens to fall behind on their mortgages and
in many instances leave or abandon their homes. In some instances the
foreclosing institution will commence the process but not follow
through or delay taking control of the property which in some
instances can cause the property to become unmaintained and blighted
in the surrounding neighborhoods. This law would obligate mortgage
foreclosure plaintiffs to act in good faith when it commences a
foreclosure and throughout the foreclosure process. Financial
institutions cannot delay in taking action in controlling and
providing upkeep on the vacant dwelling itself.

This law also seeks to impose penalties on lenders in clear violation
of property maintenance laws for vacant or abandoned homes in
foreclosure proceedings. Municipalities across the country such as Las
Vegas, Nevada and Indio, California with similar laws on the books
have had great success in deterring bad actors from allowing abandoned
or vacant homes to fall into disrepair. The penalties imposed in this
bill will provide the State with a mechanism to hold lenders
accountable and prevent the blight of unmaintained homes in
neighborhoods across the State.

LEGISLATIVE HISTORY:

2013-14: S.5292 REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY
DEVELOPMENT

FISCAL & LOCAL IMPLICATIONS:


None.

EFFECTIVE DATE:

Immediately after the bill has become law.

2015-S769 (ACTIVE) - Bill Text download pdf

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

                                   769

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen. KENNEDY -- 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
  penal law, in relation to requiring a plaintiff in a mortgage foreclo-
  sure action to maintain the subject property in good faith

  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 "Good
Neighbor Act".
  S 2. Subdivision 1 of 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:
  1.  A  plaintiff [in] WHO COMMENCES a mortgage foreclosure action [who
obtains], INCLUDING A LENDER, AN ASSIGNEE OR A MORTGAGE  LOAN  SERVICER,
SEEKING  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 COMMENCEMENT OF THE ACTION OR the  issu-
ance  of such judgment, or is abandoned by the mortgagor but occupied by
a tenant, as defined under section thirteen hundred five of  this  arti-
cle,  shall  IN  GOOD  FAITH  maintain  such property until such time as
ownership has been transferred through the closing of title in  foreclo-
sure, 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. AS USED IN THIS
SECTION, THE TERM "GOOD FAITH" SHALL BE DEFINED AS HONESTY IN  FACT  AND
THE OBSERVANCE OF REASONABLE STANDARDS OF FAIR DEALING.

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

                                                           LBD03236-01-5

S. 769                              2

  S  3.  The penal law is amended by adding a new section 270.40 to read
as follows:
S 270.40 CRIMINAL  NEGLIGENCE  OF VACANT REAL PROPERTY UNDER FORECLOSURE
           PROCEEDINGS.
  A PERSON IS GUILTY OF CRIMINAL  NEGLIGENCE  OF  VACANT  REAL  PROPERTY
UNDER  FORECLOSURE PROCEEDINGS WHEN HE OR SHE VIOLATES THE PROVISIONS OF
SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF THE  REAL  PROPERTY
ACTIONS AND PROCEEDINGS LAW.
  CRIMINAL   NEGLIGENCE   OF  VACANT  REAL  PROPERTY  UNDER  FORECLOSURE
PROCEEDINGS IS A CLASS B MISDEMEANOR.
  S 4. This act shall take effect immediately.

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Senate Bill S769

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

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2015-S769 (ACTIVE) - Details

2015-S769 (ACTIVE) - Summary

2015-S769 (ACTIVE) - Sponsor Memo

2015-S769 (ACTIVE) - Bill Text download pdf

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Sponsored By

Timothy M. Kennedy

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

Actions

2015-S769 (ACTIVE) - Details

2015-S769 (ACTIVE) - Summary

2015-S769 (ACTIVE) - Sponsor Memo

2015-S769 (ACTIVE) - Bill Text download pdf

Comments