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
                                ___________
 
 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.