Senate Bill S2700

                                
 
BILL NUMBER: S2700

SPONSOR: KENNEDY
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to increasing the maximum civil penalty

 
PURPOSE:

To require banks and finance companies to actively rehabilitate and
maintain foreclosed properties which are a primary source of blight in
neighborhoods and reduce property values for homes within a 1/8 mile
radius of the foreclosed property.

 
SUMMARY OF PROVISIONS:

Section 1308 of the real property, actions and proceedings law is
amended to increase the per day fines from $500 to $1,000 for banks
responsible for foreclosed properties.

              

 
JUSTIFICATION:

Despite passing the Foreclosure Relief Act, some banks are still not
taking the initiative to maintain these properties or take the law seri-
ously.

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. The foreclosing institution
is statutorily deemed taking control of the property and be responsible
for maintenance and upkeep. The unmaintained and blighted home impacts
the surrounding neighborhoods and there must be a priority in taking
care of and maintaining these properties. This law would obligate mort-
gage foreclosure plaintiffs to act and financial institutions cannot
delay in taking action in providing upkeep on the vacant dwelling
itself.

This will allow local governments to motivate banks or the banks will
face a larger fine for their inaction.

 
LEGISLATIVE HISTORY:

2017-18: S.5054 Referred to Housing, Construction and Community Develop-
ment

 
FISCAL IMPLICATIONS:

Positive revenue from collecting increased fines.

 
EFFECTIVE DATE:
Immediately after the bill has become law.