Assembly Bill A5665

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5665
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2017
                                ___________
 
 Introduced by M. of A. CURRAN -- read once and referred to the Committee
   on Judiciary
 
 AN  ACT  to amend the real property law, in relation to Superstorm Sandy
   real property foreclosure relief
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The  real property law is amended by adding a new section
 283 to read as follows:
   § 283. SUPERSTORM SANDY REAL PROPERTY  FORECLOSURE  RELIEF.    1.  (A)
 NOTWITHSTANDING  ANY  PROVISION  OF GENERAL, SPECIAL OR LOCAL LAW TO THE
 CONTRARY, AN ELIGIBLE REAL PROPERTY  OWNER  OF  AFFECTED  REAL  PROPERTY
 DAMAGED  AS  A  RESULT  OF  SUPERSTORM SANDY MAY, UPON COMMENCEMENT OF A
 MORTGAGE FORECLOSURE ACTION PURSUANT TO ARTICLE  THIRTEEN  OF  THE  REAL
 PROPERTY  ACTIONS  AND  PROCEEDINGS  LAW,  MAKE APPLICATION TO THE COURT
 HAVING JURISDICTION  OVER  THE  ACTION  FOR  A  TEMPORARY  STAY  IN  THE
 PROCEEDINGS.
   (B)  A  COURT RECEIVING AN APPLICATION FOR A STAY OF MORTGAGE FORECLO-
 SURE PROCEEDINGS PURSUANT TO THIS SECTION MAY, IN ITS DISCRETION,  GRANT
 SUCH  A  STAY  NOT EXCEEDING THIRTY-SIX MONTHS FOLLOWING A DETERMINATION
 THAT AN APPLICANT IS AN ELIGIBLE REAL PROPERTY OWNER ENTITLED TO SUCH  A
 STAY AS DEFINED IN THIS SECTION.
   2.  (A)  AN  ELIGIBLE REAL PROPERTY OWNER SHALL REMAIN RESPONSIBLE FOR
 ALL PROPERTY TAXES AND FEES INCURRED OR DUE DURING A COURT ORDERED  STAY
 OF FORECLOSURE PROCEEDINGS PURSUANT TO THIS SECTION.
   (B)  AN ELIGIBLE REAL PROPERTY OWNER SHALL MAINTAIN SUCH AFFECTED REAL
 PROPERTY DURING A COURT ORDERED STAY OF FORECLOSURE PROCEEDINGS PURSUANT
 TO THIS SECTION.
   3. (A) A STAY OF FORECLOSURE PROCEEDINGS AWARDED TO AN  ELIGIBLE  REAL
 PROPERTY  OWNER  PURSUANT TO THIS SECTION SHALL CEASE UPON REINSTATEMENT
 OF THE FORECLOSED AFFECTED REAL  PROPERTY,  A  SETTLEMENT  OF  THE  DEBT
 BETWEEN  THE ELIGIBLE PROPERTY OWNER AND LENDER, OR UPON A DETERMINATION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09853-01-7

 A. 5665                             2
 
 MADE BY THE COURT THAT THE ELIGIBLE REAL PROPERTY  OWNER  HAS  ABANDONED
 THE  AFFECTED REAL PROPERTY PRIOR TO REINSTATEMENT OR A SETTLEMENT BEING
 REACHED.
   (B)  NOTHING  IN THIS SUBDIVISION SHALL BE CONSTRUED SO AS TO PROHIBIT
 THE LAWFUL TRANSFER OF REAL PROPERTY PRIOR TO A JUDGMENT OF SALE.
   4. DEFINITIONS.  AS USED IN THIS SECTION:
   (A) "ELIGIBLE REAL PROPERTY OWNER" SHALL MEAN AN INDIVIDUAL WHO  OWNED
 AN  AFFECTED  PROPERTY  ON  OCTOBER  TWENTY-NINTH THROUGH THIRTIETH, TWO
 THOUSAND TWELVE AND IS ELIGIBLE FOR ASSISTANCE  THROUGH  THE  NY  RISING
 HOUSING RECOVERY PROGRAM.
   (B) "AFFECTED REAL PROPERTY" SHALL MEAN ANY TAX LOT LOCATED IN A COUN-
 TY  INCLUDED  IN  FEMA DISASTER DECLARATION DR-4085 FOLLOWING SUPERSTORM
 SANDY AND WHICH CONTAINED RESIDENTIAL REAL PROPERTY.
   (C) "STAY" SHALL MEAN THE COURT SUSPENDS PROCEEDINGS FOR A  PERIOD  OF
 TIME  NECESSARY  FOR AN ELIGIBLE REAL PROPERTY TO REINSTATE THE AFFECTED
 PROPERTY OR REACH A SETTLEMENT WITH A LENDER RELATING TO THE  DEBT  OWED
 ON  THE AFFECTED PROPERTY. IN NO CIRCUMSTANCES SHALL THAT PERIOD OF TIME
 EXCEED THIRTY-SIX MONTHS.
   (D) "NY RISING HOUSING RECOVERY PROGRAM" SHALL MEAN THE PROGRAM  OPER-
 ATED  BY  THE  GOVERNOR'S  OFFICE OF STORM RECOVERY (GOSR) TO FACILITATE
 HOME REHABILITATION AND RECOVERY FOR THOSE IMPACTED BY  CERTAIN  NATURAL
 DISASTERS.
   § 2. This act shall take effect immediately.