Senate Bill S6236

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6236
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 16, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law, in relation to enacting  the  "COVID-19
   Foreclosure  Relief Act of 2021"; and providing for the repeal of such
   provisions upon expiration thereof

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "COVID-19
 Foreclosure Relief Act of 2021".
   § 2. The banking law is amended by adding a new section 9-y to read as
 follows:
   § 9-Y. PROPERTY TAX REIMBURSEMENT. 1. FOR PURPOSES  OF  THIS  SECTION,
 "REGULATED INSTITUTION" SHALL MEAN ANY NEW YORK REGULATED BANKING ORGAN-
 IZATION  AS  DEFINED IN THIS ARTICLE AND ANY NEW YORK REGULATED MORTGAGE
 SERVICER ENTITY SUBJECT TO SUPERVISION BY THE DEPARTMENT.
   2. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND DIRECTED  TO  IMPLEMENT
 AND ADMINISTER A PROPERTY TAX REIMBURSEMENT PROGRAM FOR REGULATED INSTI-
 TUTIONS.  SUCH PROGRAM SHALL BE FUNDED SOLELY FROM FUNDS RECEIVED PURSU-
 ANT TO THE AMERICAN RESCUE PLAN ACT OF 2021. THE SUPERINTENDENT AND EACH
 LOCALITY IN RECEIPT OF FUNDS FROM THE AMERICAN RESCUE PLAN ACT OF  2021,
 SHALL  WORK  JOINTLY  TO  ENSURE  THAT  THE ALLOCATION OF FUNDS FOR THIS
 PROGRAM, WHETHER GRANTED TO THE STATE OR DIRECTLY TO SUCH LOCALITIES, IS
 EQUAL TO ONE BILLION DOLLARS.    THE  SUPERINTENDENT  MAY  DELEGATE  THE
 IMPLEMENTATION  OR  ADMINISTRATION OF ANY PORTION OF THIS PROGRAM TO ANY
 STATE AGENCY, CITY, COUNTY OR TOWN IN ACCORDANCE WITH THE PROVISIONS  OF
 THIS SECTION.
   3. REGULATED INSTITUTIONS THAT FUND OR HAVE FUNDED A MORTGAGOR'S PROP-
 ERTY TAXES SHALL BE ELIGIBLE FOR REIMBURSEMENT OF SUCH FUNDS IF:
   (A)  THE MORTGAGOR IS AN INDIVIDUAL WHOSE PRIMARY RESIDENCE IS LOCATED
 IN NEW YORK AND IS ENCUMBERED BY A HOME LOAN PURSUANT TO  PARAGRAPH  (A)
 OF SUBDIVISION SIX OF SECTION THIRTEEN HUNDRED FOUR OF THE REAL PROPERTY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10621-02-1

 S. 6236                             2
 
 ACTIONS AND PROCEEDINGS LAW OR WHOSE PRIMARY RESIDENCE IS LOCATED IN NEW
 YORK AND IS ENCUMBERED BY ANY LOAN OTHERWISE MEETING THE REQUIREMENTS OF
 A  HOME  LOAN UNDER PARAGRAPH (A) OF SUBDIVISION SIX OF SECTION THIRTEEN
 HUNDRED  FOUR  OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW, FROM OR
 SERVICED BY A REGULATED INSTITUTION;
   (B) THE MORTGAGOR HAS DEFAULTED ON SUCH HOME LOAN OR SUCH LOAN  OTHER-
 WISE  MEETING  THE REQUIREMENTS OF A HOME LOAN ON OR AFTER JANUARY TWEN-
 TY-FIRST, TWO THOUSAND TWENTY; AND
   (C) THE REGULATED INSTITUTION FUNDS OR  HAS  FUNDED  SUCH  MORTGAGOR'S
 PROPERTY TAXES ON OR AFTER JANUARY TWENTY-FIRST, TWO THOUSAND TWENTY.
   4.  AS  SOON  AS  PRACTICABLE  AND NO LATER THAN THIRTY DAYS AFTER THE
 EFFECTIVE DATE OF THIS SECTION, THE  SUPERINTENDENT  SHALL  ESTABLISH  A
 PROCESS FOR REGULATED INSTITUTIONS TO APPLY FOR SUCH REIMBURSEMENT. SUCH
 PROCESS  SHALL  BE  MADE  ACCESSIBLE  ONLINE AND SHALL BE DISTRIBUTED TO
 REGULATED INSTITUTIONS THROUGHOUT THE STATE.
   5. THE SUPERINTENDENT SHALL ESTABLISH PROCEDURES TO ENSURE THE  ELIGI-
 BILITY  OF, AND EQUITABLE DISTRIBUTION TO, REGULATED INSTITUTIONS APPLY-
 ING FOR OR RECEIVING ASSISTANCE UNDER THIS SECTION. REQUIRED  DOCUMENTA-
 TION  SHALL INCLUDE PROOF OF FUNDING OF PROPERTY TAXES BY SUCH REGULATED
 INSTITUTION.
   6. UPON RECEIPT OF THE REIMBURSEMENT PAYMENT FOR PROPERTY TAXES  PAID,
 THE  INSTITUTION  SHALL  MAIL  THE  MORTGAGOR A STREAMLINED MODIFICATION
 OFFER WITHIN THIRTY DAYS. UPON THE MORTGAGOR'S ACCEPTANCE OF THE MODIFI-
 CATION OFFER, THE INSTITUTION SHALL IMMEDIATELY:
   (A) REINSTATE THE MORTGAGOR'S LOAN AND REQUEST THAT ALL CONSUMER CRED-
 IT  AGENCIES  REMOVE  ALL  NEGATIVE  OR  DEROGATORY  COMMENTS  FROM  THE
 MORTGAGOR'S  CONSUMER  CREDIT  REPORT  MADE  ON OR AFTER JANUARY TWENTY-
 FIRST, TWO THOUSAND TWENTY;
   (B) STOP ALL PRE-FORECLOSURE ACTIONS; AND/OR
   (C) DISCONTINUE ALL PENDING FORECLOSURE ACTIONS AND VACATE  ANY  JUDG-
 MENT OF FORECLOSURE AND SALE, WHERE APPLICABLE.
   7.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO REPAYMENT
 OF PROPERTY TAXES AND/OR SCHOOL TAXES SHALL BE REQUIRED BY  A  MORTGAGOR
 FOR PAYMENTS FUNDED BY A REGULATED INSTITUTION ON BEHALF OF SUCH MORTGA-
 GOR,  FOR TAXES FUNDED BETWEEN JANUARY TWENTY-FIRST, TWO THOUSAND TWENTY
 UNTIL THE LATER OF DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE OR THE
 EXPIRATION OF THE STATE DISASTER EMERGENCY ISSUED  IN  RESPONSE  TO  THE
 COVID-19 PANDEMIC.
   §  3.  This  act shall take effect immediately and shall expire and be
 deemed repealed upon the allocation of all available funding pursuant to
 subdivision 2 of section 9-y of the banking law, as added by section two
 of this act; provided that  the  superintendent  of  financial  services
 shall  notify  the legislative bill drafting commission upon the date on
 which all available funding has been allocated pursuant to subdivision 2
 of section 9-y of the banking law, in  order  that  the  commission  may
 maintain an accurate and timely effective data base of the official text
 of  the laws of the state of New York in furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.