Senate Bill S8397A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8397--A
 
                             I N  S E N A T E
 
                             February 22, 2022
                                ___________
 
 Introduced by Sens. KAVANAGH, MYRIE, RIVERA, SEPULVEDA -- read twice and
   ordered  printed, and when printed to be committed to the Committee on
   Housing,  Construction  and   Community   Development   --   committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT to amend subpart B of part C of chapter 417 of the laws of 2021,
   relating to foreclosure proceedings, in relation to extending residen-
   tial foreclosure protections until June thirtieth (Part A);  to  amend
   subpart  C  of  part C of chapter 417 of the laws of 2021, relating to
   tax  sales,  in  relation   to   extending   residential   foreclosure
   protections  until  June thirtieth (Part B); and to amend subpart D of
   part C of chapter 417 of the laws of 2021,  relating  to  establishing
   hardship  declarations  for  owners  of  residential real property, in
   relation to extending residential foreclosure protections  until  June
   thirtieth (Part C)
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act enacts into law components of legislation relating
 to  residential  foreclosure  protections.  Each  component  is   wholly
 contained  within  a Part identified as Parts A through C. The effective
 date for each particular provision contained within  such  Part  is  set
 forth  in  the  last  section of such Part. Any provision in any section
 contained within a Part, including the effective date of the Part, which
 makes reference to a section "of this act", when used in connection with
 that particular component, shall be deemed to  mean  and  refer  to  the
 corresponding  section of the Part in which it is found. Section four of
 this act sets forth the general effective date of this act.
 
                                  PART A
 
   Section 1. Paragraph b of subdivision 1 of section 2,  section  5  and
 section  6  of  subpart  B of part C of chapter 417 of the laws of 2021,
 relating to foreclosure proceedings, are amended to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14672-03-2
              

 S. 8397--A                          2
 
   b. the following statement, or a substantially equivalent statement in
 the mortgagor's primary language, in 14-point  type,  published  by  the
 office  of court administration, whether in physical or electronic writ-
 ten form:
   "NOTICE  TO  MORTGAGOR: If you have lost income or had increased costs
 during the COVID-19 pandemic, and you sign  and  deliver  this  hardship
 declaration form to your mortgage lender or other foreclosing party, you
 may  be  protected from foreclosure until at least [January 15] JUNE 30,
 2022. If a foreclosure action is filed against you and you provide  this
 form  to  the plaintiff or the court, the action will be postponed until
 [January 15] JUNE 30, 2022 unless the plaintiff moves to challenge  your
 declaration  of  hardship. If the court finds your hardship claim valid,
 the foreclosure action will be postponed until after [January  15]  JUNE
 30, 2022. While the action is postponed, you may remain in possession.
   If  your  mortgage lender or other foreclosing party provided you with
 this form, the mortgage lender or  other  foreclosing  party  must  also
 provide  you  with a mailing address and e-mail address to which you can
 return this form. If you are already in foreclosure proceedings, you may
 return this form to the court. You should keep a copy or picture of  the
 signed  form  for  your  records. You will still owe any unpaid mortgage
 payments and lawful fees to your lender. You should  also  keep  careful
 track  of  what  you  have paid and any amount you still owe.  Financial
 assistance may be available to you, even if  you  have  previously  been
 denied.  You  should  contact  your  local housing assistance office for
 application information.
            MORTGAGOR'S DECLARATION OF COVID-19-RELATED HARDSHIP
   I am the mortgagor of the property  at  (address  of  dwelling  unit).
 Including  my  primary residence, I own, whether directly or indirectly,
 ten or fewer residential dwelling units.  I  am  experiencing  financial
 hardship,  and  I am unable to pay my mortgage in full because of one or
 more of the following:
   1. Significant loss of household income during the COVID-19 pandemic.
   2. Increase in necessary out-of-pocket expenses related to  performing
 essential  work or related to health impacts during the COVID-19 pandem-
 ic.
   3. Childcare responsibilities  or  responsibilities  to  care  for  an
 elderly,  disabled,  or  sick family member during the COVID-19 pandemic
 have negatively affected my ability or the  ability  of  someone  in  my
 household to obtain meaningful employment or earn income or increased my
 necessary out-of-pocket expenses.
   4.  Moving expenses and difficulty I have securing alternative housing
 make it a hardship for me to relocate to another  residence  during  the
 COVID-19 pandemic.
   5. Other circumstances related to the COVID-19 pandemic have negative-
 ly affected my ability to obtain meaningful employment or earn income or
 have   significantly   reduced  my  household  income  or  significantly
 increased my expenses.
   6. One or more of my tenants has defaulted on a significant amount  of
 their rent payments since March 1, 2020.
   To  the extent I have lost household income or had increased expenses,
 any public assistance, including unemployment insurance, pandemic  unem-
 ployment  assistance, disability insurance, or paid family leave, that I
 have received since the start of the COVID-19 pandemic  does  not  fully
 make up for my loss of household income or increased expenses.
   I  understand  that I must comply with all other lawful terms under my
 mortgage agreement. I further understand that lawful fees, penalties  or
 S. 8397--A                          3
 
 interest for not having paid my mortgage in full as required by my mort-
 gage  agreement  may  still  be charged or collected and may result in a
 monetary judgment against me.   I further understand  that  my  mortgage
 lender,  or  other  foreclosing party may request a hearing to challenge
 the certification of hardship made herein, and  that  I  will  have  the
 opportunity  to  participate  in any actions or proceedings regarding my
 mortgage interest.  I also understand that my mortgage lender  or  other
 foreclosing party may pursue a foreclosure action against me on or after
 [January  15]  JUNE  30,  2022,  if  I  do not fully repay any missed or
 partial payments and lawful fees.
 Signed:
 Printed Name:
 Date Signed:
 NOTICE: You are signing and submitting this form under penalty  of  law.
 That  means  it is against the law to make a statement on this form that
 you know is false."
   § 5. In any action to foreclose a mortgage in which a judgment of sale
 has not been issued, including actions filed on or before March 7, 2020,
 if the mortgagor provides a  hardship  declaration  to  the  foreclosing
 party, the court, or an agent of the foreclosing party or the court, the
 proceeding shall be stayed until at least [January 15] JUNE 30, 2022. If
 such  hardship declaration is provided to the foreclosing party or agent
 of the foreclosing party, such foreclosing party or agent shall promptly
 file it with the court, advising the court in writing the  index  number
 of all relevant cases.
   § 6. In any action to foreclose a mortgage in which a judgment of sale
 has  been issued prior to the effective date of this act but has not yet
 been executed as of the effective date of this  act,  including  actions
 filed  on or before March 7, 2020, the court shall stay the execution of
 the judgment at least until the court has held a status conference  with
 the  parties.  In  any  action to foreclose a mortgage, if the mortgagor
 provides a hardship declaration to the foreclosing party, the court,  or
 an  agent  of the foreclosing party or the court, prior to the execution
 of the judgment, the execution shall be stayed until at  least  [January
 15] JUNE 30, 2022. If such hardship declaration is provided to the fore-
 closing  party or agent of the foreclosing party, such foreclosing party
 or agent shall promptly file it with the court, advising  the  court  in
 writing the index number of all relevant cases.
   §  2.  Section 10 of subpart B of part C of chapter 417 of the laws of
 2021, relating  to  foreclosure  proceedings,  is  amended  to  read  as
 follows:
   §  10.  This  act shall take effect immediately and sections one, two,
 three, four, five, six, seven and nine of this act shall expire [January
 15] JUNE 30, 2022.
   § 3. This act shall take effect immediately and  shall  be  deemed  to
 have  been  in  full  force  and  effect  on and after January 15, 2022;
 provided, however, that the amendments to sections 2, 5 and 6 of subpart
 B of part C of chapter 417 of the laws of 2021 made by  section  one  of
 this  act  shall not affect the expiration of such sections and shall be
 deemed to expire therewith.
 
                                  PART B
 
   Section 1. Paragraph b of subdivision 3 of section 2 and subdivision 3
 of section 3 of subpart C of part C of chapter 417 of the laws of  2021,
 relating to tax sales, are amended to read as follows:
 S. 8397--A                          4
 
   b. the following statement, or a substantially equivalent statement in
 the  owner's  primary language, in 14-point type, whether in physical or
 electronic written form:
   "OWNER DECLARATION OF COVID-19-RELATED HARDSHIP
   I  am  the  owner  of the property at (address).  Including my primary
 residence, I own, whether directly or indirectly, ten or fewer  residen-
 tial  dwelling  units.    I am experiencing financial hardship, and I am
 unable to pay my full tax bill because of one or more of the following:
   1. Significant loss of household income during the COVID-19 pandemic.
   2. Increase in necessary out-of-pocket expenses related to  performing
 essential  work or related to health impacts during the COVID-19 pandem-
 ic.
   3. Childcare responsibilities  or  responsibilities  to  care  for  an
 elderly,  disabled,  or  sick family member during the COVID-19 pandemic
 have negatively affected my ability or the  ability  of  someone  in  my
 household to obtain meaningful employment or earn income or increased my
 necessary out-of-pocket expenses.
   4.  Moving expenses and difficulty I have securing alternative housing
 make it a hardship for me to relocate to another  residence  during  the
 COVID-19 pandemic.
   5. Other circumstances related to the COVID-19 pandemic have negative-
 ly affected my ability to obtain meaningful employment or earn income or
 have   significantly   reduced  my  household  income  or  significantly
 increased my expenses.
   6. One or more of my tenants has defaulted on a significant amount  of
 their rent payments since March 1, 2020.
   To  the  extent  that  I  have  lost household income or had increased
 expenses,  any  public  assistance,  including  unemployment  insurance,
 pandemic  unemployment  assistance, disability insurance, or paid family
 leave, that I have received since the start  of  the  COVID-19  pandemic
 does  not  fully  make  up  for my loss of household income or increased
 expenses.
   I understand that lawful fees, penalties or interest  for  not  having
 paid  my  taxes in full may still be charged or collected and may result
 in a foreclosure action against me on or after  [January  15]  JUNE  30,
 2022, if I do not fully repay any missed or partial payments and fees.
 Signed:
 Printed Name:
 Date Signed:
 NOTICE:  You  are signing and submitting this form under penalty of law.
 That means it is against the law to make a statement on this  form  that
 you know is false."
   3.  The  submission  of  such  a  declaration, unless withdrawn by the
 owner, shall act as a temporary stay  applicable  to  all  entities  and
 persons  of  all  such  tax  lien  sales and tax foreclosure actions and
 proceedings  against  such  owner  for  such  property  that  have  been
 commenced  or  could  have  been  commenced before [January 15] JUNE 30,
 2022.
   § 2. Section 4 of subpart C of part C of chapter 417 of  the  laws  of
 2021, relating to tax sales, is amended to read as follows:
   §  4.  This act shall take effect immediately and sections one and two
 and subdivisions one, two, three, four, five and seven of section  three
 shall expire [January 15] JUNE 30, 2022.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force  and  effect  on  and  after  January  15,  2022
 provided,  however, that the amendments to sections 2 and 3 of subpart C
 S. 8397--A                          5
 
 of part C of chapter 417 of the laws of 2021 made by section one of this
 act shall not affect the expiration of such sections and shall be deemed
 to expire therewith.
 
                                  PART C
 
   Section  1.  Paragraph b of subdivision 2 of section 1 of subpart D of
 part C of chapter 417 of the laws  of  2021,  relating  to  establishing
 hardship  declarations  for  owners  of  residential  real  property, is
 amended to read as follows:
   b. the following statement, or a substantially equivalent statement in
 the owner or mortgagor's primary language, in 14-point type, whether  in
 physical  or  electronic  written  form, and the department of financial
 services shall publish  a  copy  of  the  hardship  declaration  on  its
 website:
   "NOTICE  TO  OWNER/MORTGAGOR: If you have lost income or had increased
 costs due to the COVID-19 pandemic, and you sign and deliver this  hard-
 ship  declaration  form  to  your  lending  institution,  you  cannot be
 discriminated against in the determination of whether credit  should  be
 extended  or  reported  negatively to a credit reporting agency until at
 least [January 15] JUNE 30, 2022.
   If a lending institution provided you  with  this  form,  the  lending
 institution  must  also  provide  you  with a mailing address and e-mail
 address to which you can return this form. You should  keep  a  copy  or
 picture of the signed form for your records.
   OWNER/MORTGAGOR DECLARATION OF COVID-19-RELATED HARDSHIP
   I  am  the  OWNER/MORTGAGOR  of  the  property at (address of dwelling
 unit).  Including my primary residence, I own, whether directly or indi-
 rectly, ten or fewer residential dwelling  units.    I  am  experiencing
 financial  hardship,  and I am unable to pay my mortgage in full because
 of one or more of the following:
   1. Significant loss of household income during the COVID-19 pandemic.
   2. Increase in necessary out-of-pocket expenses related to  performing
 essential  work or related to health impacts during the COVID-19 pandem-
 ic.
   3. Childcare responsibilities  or  responsibilities  to  care  for  an
 elderly,  disabled,  or  sick family member during the COVID-19 pandemic
 have negatively affected my ability or the  ability  of  someone  in  my
 household to obtain meaningful employment or earn income or increased my
 necessary out-of-pocket expenses.
   4.  Moving expenses and difficulty I have securing alternative housing
 make it a hardship for me to relocate to another  residence  during  the
 COVID-19 pandemic.
   5. Other circumstances related to the COVID-19 pandemic have negative-
 ly affected my ability to obtain meaningful employment or earn income or
 have   significantly   reduced  my  household  income  or  significantly
 increased my expenses.
   6. One or more of my tenants has defaulted on a significant amount  of
 their rent payments since March 1, 2020.
   To  the  extent  that  I  have  lost household income or had increased
 expenses,  any  public  assistance,  including  unemployment  insurance,
 pandemic  unemployment  assistance, disability insurance, or paid family
 leave, that I have received since the start  of  the  COVID-19  pandemic
 does  not  fully  make  up  for my loss of household income or increased
 expenses.
 Signed:
 S. 8397--A                          6
 
 Printed Name:
 Date Signed:
 NOTICE:  You  are signing and submitting this form under penalty of law.
 That means it is against the law to make a statement on this  form  that
 you know is false."
   §  2.  Section  2 of subpart D of part C of chapter 417 of the laws of
 2021, relating to establishing hardship declarations for owners of resi-
 dential real property, is amended to read as follows:
   § 2. This act SHALL take effect immediately and shall expire  [January
 15] JUNE 30, 2022.
   §  3.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and  effect  on  and  after  January  15,  2022;
 provided, however, that the amendments to section 1 of subpart D of part
 C  of  chapter  417  of the laws of 2021 made by section one of this act
 shall not affect the expiration of such sections and shall be deemed  to
 expire therewith.
   §  2.  Notwithstanding  the  provisions  of  article  5 of the general
 construction law, the provisions of subparts B, C and D  of  part  C  of
 chapter  417 of the laws of 2021, as amended by parts A, B and C of this
 act, are hereby revived and shall continue in full force and  effect  as
 such provisions existed on January 14, 2022.
   § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 4. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Parts A through C of this act shall be
 as specifically set forth in the last section of such Parts.