S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1827
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2023
                                ___________
 
 Introduced by M. of A. JEAN-PIERRE, SILLITTI, COLTON, ANDERSON, BARRETT,
   SIMON,  DAVILA, STECK, TAYLOR, DE LOS SANTOS -- read once and referred
   to the Committee on Judiciary
 
 AN ACT to stay certain foreclosure proceedings
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Except as provided in section two of this act, foreclosure
 proceedings for non-payment of mortgage payments that would be  eligible
 for coverage under the New York state homeowner assistance fund adminis-
 tered  by  the  division  of  housing and community renewal shall not be
 commenced against a mortgagor who has applied for such coverage  or  any
 local   program  administering  federal  emergency  mortgage  assistance
 program funds unless or until a determination of ineligibility is  made.
 Except  as  provided in section two of this act, in any pending foreclo-
 sure proceeding, whether filed prior to, on, or after the effective date
 of this act, against a mortgagor who has applied or subsequently applies
 for benefits under the New York state homeowner assistance fund  or  any
 local   program  administering  federal  emergency  mortgage  assistance
 program funds to cover all or part of the arrears claimed by  the  peti-
 tioner,  all  proceedings  shall  be  stayed  pending a determination of
 eligibility. Evidence of a payment received pursuant  to  the  New  York
 state homeowner assistance fund or a local program administering federal
 emergency  mortgage  assistance  program  funds may be presented in such
 proceeding and create a presumption that the mortgagor's obligation  for
 the time period covered by the payment has been fully satisfied.
   §  2.  Section  one  of this act shall not apply if a mortgagor inten-
 tionally causes significant damage to the property that is  the  subject
 of the mortgage agreement, provided:
   1. If a foreclosure proceeding is not pending on the effective date of
 this act, the petitioner shall file an affidavit under penalty of perju-
 ry  with the petition attesting that the respondent intentionally caused
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03021-01-3
              

 A. 1827                             2
 
 significant damage to the property, with a specific description  of  the
 damages alleged.
   2.  If  a  foreclosure  proceeding is pending on the effective date of
 this act, but the petitioner has not previously alleged that the mortga-
 gor intentionally caused significant damage to the property,  the  peti-
 tioner  shall be required to submit a new petition with such allegations
 and comply with all notice and service requirements under article  thir-
 teen of the real property actions and proceedings law.
   3.  For the purposes of this act, a mere allegation of the behavior by
 the petitioner or an agent of  the  petitioner  alleging  such  behavior
 shall  not  be  sufficient  evidence to establish that the mortgagor has
 intentionally caused significant damage to the property.
   4. If the petitioner fails to  establish  that  the  mortgagor  inten-
 tionally   caused  significant  damage  to  the  property:  (i)  if  the
 mortgagor's application is  still  pending,  the  court  shall  stay  or
 continue  to  stay  any  further  proceedings pending a determination of
 eligibility pursuant to section one of this act; or (ii) if the  mortga-
 gee has accepted payment of mortgage arrears and agreed not to foreclose
 the mortgage, the court shall dismiss the proceeding with prejudice.
   5.  If  the  petitioner  establishes  that the mortgagor intentionally
 caused significant damage to the property, the proceeding  may  continue
 pursuant   to   article  thirteen  of  the  real  property  actions  and
 proceedings law.
   § 3. This act shall take effect immediately.