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Assembly Bill A8593

2023-2024 Legislative Session

Relates to evictions as the result of foreclosure

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Archive: Last Bill Status - In Assembly Committee

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2023-A8593 (ACTIVE) - Details

See Senate Version of this Bill:
S6420
Current Committee:
Assembly Judiciary
Law Section:
Real Property Actions and Proceedings Law
Laws Affected:
Amd §§757 & 1302, RPAP L
Versions Introduced in 2025-2026 Legislative Session:
A4377, S125

2023-A8593 (ACTIVE) - Summary

Provides that any landlord that is in mortgage foreclosure due to loss of rent payments cannot enter into a state of foreclosure until a court handling a special proceeding to recover rent resolves any rent issues.

2023-A8593 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8593
 
                           I N  A S S E M B L Y
 
                             January 12, 2024
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Judiciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation to foreclosure of certain properties
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 757 of the real property  actions  and  proceedings
 law, as added by section 23 of part M of chapter 36 of the laws of 2019,
 is amended to read as follows:
   §  757. Eviction as the result of foreclosure. 1. ANY LANDLORD THAT IS
 IN MORTGAGE FORECLOSURE DUE TO LOSS OF RENT PAYMENTS CANNOT ENTER INTO A
 STATE OF FORECLOSURE UNTIL A SPECIAL PROCEEDING TO RECOVER REAL PROPERTY
 IS MAINTAINED AND ANY RENT ISSUES ARE RESOLVED. SUCH COURT  SHALL  TRACK
 ALL LOSS OF RENT PAYMENT CASES AND SUBSEQUENT FORECLOSURE CASES.
   2.  In  the event that a lessee is removed from real property pursuant
 to this article, and the leased real property was the subject of a fore-
 closure proceeding pursuant to this chapter or  the  subject  of  a  tax
 foreclosure  proceeding,  the  court records relating to any such lessee
 shall be sealed and be deemed confidential. No disclosure or use of such
 information relating to any such lessee shall be authorized, and the use
 of such information shall be prohibited.
   § 2. Section 1302 of the real property actions and proceedings law  is
 amended by adding a new subdivision 3 to read as follows:
   3.  ANY  LANDLORD  THAT IS IN MORTGAGE FORECLOSURE DUE TO LOSS OF RENT
 PAYMENTS CANNOT ENTER INTO  A  STATE  OF  FORECLOSURE  UNTIL  A  SPECIAL
 PROCEEDING  TO  RECOVER  REAL PROPERTY IS MAINTAINED AND ANY RENT ISSUES
 ARE RESOLVED. SUCH COURT SHALL TRACK ALL LOSS OF RENT PAYMENT CASES  AND
 SUBSEQUENT FORECLOSURE CASES.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10803-02-3

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