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.