Senate Bill S5655

                                 BILL NUMBER:  S5655

 TITLE OF BILL :  An act to amend the real property actions and
proceedings law, in relation to the definition of "tenant" for
purposes of mortgage foreclosures

 PURPOSE OF BILL :

To ensure that all tenants lawfully residing in a home under
foreclosure receive the notice protections intended for tenants
residing in foreclosed properties.

 SUMMARY OF PROVISIONS OF BILL :

Section 1. Amends paragraph (c) of section 1305 of the Real Property
and Procedures Law by expanding the definition of tenants entitled to
notice of rights from those who were lawful tenants at the time the
foreclosure was commenced to those who are lawful tenants during the
pendency of the foreclosure action.

Section 2 provides for an effective date on the first of January
following the date on which the proposal becomes law with the terms of
the act to apply to actions commenced on or after such date.

 JUSTIFICATION :

              

In 2009, via chapter 507, New York State enacted the New York State
Governor's proposal into law that included various provisions relating
to foreclosure. One of the provisions of that law added section 1305
of the Real Property Act and Proceedings Law (RPAPL).  This provision
provides that tenants residing in properties under foreclosure have
the right, as long as they continue to pay rent, to remain in the
property for the greater of 90 days after the foreclosure sale, or the
remainder of their lease, unless the buyer intends to occupy the
property.

RPAPL 1305, however, defines a tenant as someone who was lawfully
residing in the home under foreclosure at the time the foreclosure was
commenced. Therefore, lawfully residing tenants who enter into leases
with landlords after the commencement of a foreclosure action and
during the pendency of the foreclosure, who were not tenants at the
time the foreclosure was commenced, are not covered by the notice
requirement of RPAPL 1305. This was an oversight.

RPAPL section 1305 was intended to establish protections for tenants
in foreclosed homes. The written notice of rights under this section
was intended for all lawfully residing tenants during the pendency of
the foreclosure. Since foreclosure proceedings often take longer than
a year to complete, tenants who enter into leases while the
foreclosure is pending do not know of their rights, and find
themselves Without the benefit of the notice provision intended for
them underRPAPL 1305.

This measure would remedy this oversight to fulfill the intent of the
original law.

 LEGISLATIVE HISTORY :

2016 - S. 7792 - Remained in Senate Housing Committee, moved to
Assembly Third Reading.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
It would take effect on the first of January following the date on
which the proposal becomes law with the terms of the act to apply to
actions commenced on or after such date.