S T A T E O F N E W Y O R K
________________________________________________________________________
5634
2019-2020 Regular Sessions
I N A S S E M B L Y
February 14, 2019
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Introduced by M. of A. WEINSTEIN, DINOWITZ, COLTON, TAYLOR -- read once
and referred to the Committee on Judiciary
AN ACT to amend the real property actions and proceedings law, in
relation to directing the department of financial services to conduct
periodic inspections of vacant and abandoned residential real property
required to be maintained by the mortgagee, authorize the department
of financial services and municipalities to impose a daily civil
penalty upon mortgagees which fail to maintain abandoned and vacant
residential real property, and requiring lenders having a duty to
maintain residential real property to register with the statewide
vacant and abandoned property registry
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1307 of the real property actions and proceedings
law is amended by adding a new subdivision 2-a to read as follows:
2-A. THE DEPARTMENT OF FINANCIAL SERVICES SHALL CAUSE AN INSPECTION TO
BE CONDUCTED, WITH REGARD TO COMPLIANCE WITH THE PROVISIONS OF THIS
SECTION, OF EACH RESIDENTIAL REAL PROPERTY THAT IS SUBJECT TO THE
PROVISIONS OF THIS SECTION WITHIN FOUR MONTHS OF THE DATE THE LENDER,
ASSIGNEE OR MORTGAGE LOAN SERVICER REGISTERS WITH THE STATEWIDE VACANT
AND ABANDONED PROPERTY REGISTRY PURSUANT TO SECTION THIRTEEN HUNDRED TEN
OF THIS ARTICLE AND EVERY SIX MONTHS THEREAFTER UNTIL THE PROPERTY IS NO
LONGER SUBJECT TO THE PROVISIONS OF THIS SECTION.
§ 2. Subdivision 3 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:
3. The DEPARTMENT OF FINANCIAL SERVICES, THE municipality in which
such residential real property is located, any tenant lawfully in
possession, and a board of managers of a condominium in which the prem-
ises are located or a homeowners association if said premises are
subject to the rules and regulations of such an association, shall have
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00881-01-9
A. 5634 2
the right to enforce the obligations described in this section in any
court of competent jurisdiction after at least seven days notice to the
plaintiff in the foreclosure action unless emergency repairs are
required. Any entity acting pursuant to this subdivision shall have a
cause of action in any court of competent jurisdiction against the
plaintiff in the foreclosure action to recover costs incurred as a
result of maintaining the property. IN ADDITION, THE DEPARTMENT OF
FINANCIAL SERVICES OR THE MUNICIPALITY IN WHICH THE RESIDENTIAL PROPERTY
IS LOCATED MAY IMPOSE A CIVIL PENALTY OF FIVE HUNDRED DOLLARS FOR EACH
DAY A PARTY REQUIRED TO MAINTAIN PROPERTY PURSUANT TO THIS SECTION FAILS
TO DO SO OR FAILS TO COMPLY WITH THE PROVISIONS OF SECTION THIRTEEN
HUNDRED TEN OF THIS ARTICLE. The authority provided by this subdivision
shall be in addition to, and shall not be deemed to diminish or reduce,
any rights of the parties described in this section under existing law
against the mortgagor of such property for failure to maintain such
property.
§ 3. Section 1308 of the real property actions and proceedings law is
amended by adding a new subdivision 7-a to read as follows:
7-A. THE DEPARTMENT OF FINANCIAL SERVICES SHALL CAUSE AN INSPECTION OF
THE SUBJECT PROPERTY TO BE CONDUCTED, WITH REGARD TO COMPLIANCE WITH THE
PROVISIONS OF THIS SECTION WITHIN FOUR MONTHS OF THE DATE THE SERVICER
REGISTERS WITH THE STATEWIDE VACANT AND ABANDONED PROPERTY ELECTRONIC
REGISTRY PURSUANT TO SECTION THIRTEEN HUNDRED TEN OF THIS ARTICLE, AND
EVERY SIX MONTHS THEREAFTER UNTIL SUCH TIME AS THE PROPERTY IS NO LONGER
SUBJECT TO THE PROVISIONS OF THIS SECTION.
§ 4. Subdivision 2 of section 1310 of the real property actions and
proceedings law, as added by section 4 of part Q of chapter 73 of the
laws of 2016, is amended to read as follows:
2. A lender, assignee or mortgage loan servicer shall submit or cause
to be submitted to the department of financial services information
required by the superintendent of financial services about any vacant
and abandoned residential real property, as that term is defined in
subdivision two of section thirteen hundred nine of this article, or as
the superintendent of financial services may otherwise define that term,
OR ABOUT ANY FORECLOSED PROPERTY FOR WHICH THE LENDER, ASSIGNEE OR MORT-
GAGE LOAN SERVICER HAS A DUTY TO MAINTAIN PURSUANT TO SECTION THIRTEEN
HUNDRED SEVEN OR THIRTEEN HUNDRED EIGHT OF THIS ARTICLE within twenty-
one business days of when the lender, assignee or mortgage loan servicer
learns, or should have learned, that such property is vacant and aban-
doned, OR THAT THE PROPERTY IS THE SUBJECT OF A JUDGMENT OF FORECLOSURE
AND SALE AND REMAINS VACANT AND ABANDONED, AS THE CASE MAY BE. Such
information shall, at a minimum, include: (a) the current name, address
and contact information for the lender, assignee or mortgage loan servi-
cer responsible for maintaining the vacant property; (b) whether a fore-
closure action has been filed for the property in question, and, if so,
the date on which the foreclosure action was commenced, OR THE DATE THE
JUDGEMENT OF FORECLOSURE AND SALE WAS ENTERED, AS THE CASE MAY BE; [and]
(c) the last known address and contact information for the
[mortgagor(s)] MORTGAGOR OR MORTGAGORS of record; (D) THE DATE THE PROP-
ERTY WAS DETERMINED TO BE VACANT OR ABANDONED, OR THE DATE THE DUTY OF
THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER TO MAINTAIN THE PROPERTY
ACCRUED; AND (E) THE NAMES OF ALL OFFICERS OF THE LENDER, ASSIGNEE OR
MORTGAGE LOAN SERVICER UPON WHICH SERVICE OF PROCESS MAY BE MADE.
§ 5. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.