S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1972
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2021
                                ___________
 
 Introduced by M. of A. WILLIAMS -- read once and referred to the Commit-
   tee on Judiciary
 
 AN  ACT  to  amend  the  real  property  actions and proceedings law, in
   relation to notice to tenants in mortgage foreclosure actions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivisions 2 and 3 of section 1305 of the real property
 actions and proceedings law, as added by chapter  507  of  the  laws  of
 2009, are amended to read as follows:
   2.  Notwithstanding any other provision of law, a tenant of a unit not
 subject to rent control or rent stabilization shall have  the  right  to
 remain in occupancy of the unit of the subject residential real property
 where  he  or she resides on the date of [mailing] SERVICE of the notice
 required by subdivision three of this section for the greater of: (a)  a
 period  of  ninety  days  from the date of the [mailing] SERVICE of such
 notice; or (b) for the remainder of the lease term IF THE  TENANT  OCCU-
 PIED  THE  PREMISES  AT  THE  COMMENCEMENT  OF THE FORECLOSURE ACTION OR
 RECEIVED A NOTICE PURSUANT TO SECTION THIRTEEN  HUNDRED  THREE  OF  THIS
 ARTICLE;  OR  (C) FOR THE REMAINDER OF THE LEASE TERM, PROVIDED THAT THE
 LEASE AGREEMENT WAS ENTERED INTO IN  GOOD FAITH PURSUANT TO THIS SECTION
 AND FEDERAL LAW, UP TO A MAXIMUM OF THREE YEARS, FOR TENANTS WHO DID NOT
 OCCUPY THE PREMISES AT THE COMMENCEMENT OF THE  FORECLOSURE  ACTION  AND
 THEREFORE DID NOT RECEIVE THE ORIGINAL NOTICE OF SERVICE REQUIRED PURSU-
 ANT  TO SECTION THIRTEEN HUNDRED THREE OF THIS ARTICLE; provided that if
 a successor in interest who acquires  title  to  such  residential  real
 property intends to occupy a single unit as his or her primary residence
 and  the  unit  is not subject to a federal or state statutory system of
 subsidy or other federal or state statutory scheme,  the  successor  may
 limit for one unit only, the tenant's right of occupancy to ninety days.
 For  a  lease  to  qualify under this subdivision, the tenant under such
 lease may not be the owner of the residential real  property,  and  such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07178-01-1

 A. 1972                             2
 
 lease  must  require  the  payment  of  rent  for  such unit that is not
 substantially less than the fair market rent for the  unit,  unless  the
 unit is subject to federal or state statutory system of subsidy or other
 federal  or  state statutory scheme.  A tenant under paragraph (a) [or],
 (b), OR (C) of this subdivision shall continue such tenancy  SUBJECT  TO
 ANY  LIMITATIONS IN THIS SUBDIVISION under the same terms and conditions
 as were in effect at the time of entry of the  judgment  of  foreclosure
 and  sale, or if no such judgment was entered, upon the terms and condi-
 tions that were in effect at the time of the transfer  of  ownership  of
 such  property.  For  purposes of this section, "fair market rent" shall
 mean rent for a unit of  residential  real  property  of  similar  size,
 location and condition.
   3.  Notwithstanding  any  other  provision of law, and consistent with
 subdivision two of this section, a successor in interest of  residential
 real  property  shall  provide written notice to all tenants IN THE SAME
 MANNER AS REQUIRED BY SUBDIVISION FOUR OF SECTION THIRTEEN HUNDRED THREE
 OF THIS ARTICLE: (a) that they are entitled to remain  in  occupancy  of
 such property for the remainder of the lease term, or a period of ninety
 days  from  the date of mailing of such notice, whichever is greater, on
 the same terms and conditions as were in effect at the time of entry  of
 the  judgment  of  foreclosure  and  sale,  or  if  no such judgment was
 entered, upon the terms and conditions as were in effect at the time  of
 transfer  of ownership of such property; and (b) of the name and address
 of the new owner. Any person or entity who or which becomes a  successor
 in  interest after the issuance of the ninety-day notice provided for in
 this subdivision, shall notify all tenants of its name and  address  and
 shall  assume  such interest subject to the right of the tenant to main-
 tain possession as provided in this subdivision.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of  the  laws of 2020 amending the real property
 actions and proceedings law relating to the definition of  "tenant"  for
 purposes  of  mortgage  foreclosures,  as  proposed in legislative bills
 numbers S. 5357 and A. 6370, take effect.