NY State Senate Bill 2023-S2954

Senate Bill S2954

2023-2024 Legislative Session

Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more

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Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to housing, construction and community development
Jan 26, 2023	referred to housing, construction and community development

co-Sponsors

2023-S2954 (ACTIVE) - Details

See Assembly Version of this Bill:: A9998
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1325, RPAP L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5562
2015-2016: S1425
2017-2018: S1072
2019-2020: S481
2021-2022: S2536

2023-S2954 (ACTIVE) - Summary

Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more.

2023-S2954 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2954

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to the appointment of receivers in actions to foreclose a mort-
gage

 
PURPOSE:

Enables agencies with the jurisdictional power to administer and enforce
the statutes, laws, rules, and regulations relating to the operation,
repair, and maintenance of residential real property to appoint a list
of qualified potential receivers or managing agents.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill amends subdivision 1 of section 1325 of the real
property actions and proceedings law as it relates to mortgage foreclo-
sures by adding paragraph (b). The new paragraph requires that cities
with a population of one million or more persons give authority to the

appropriate agency to create a list of qualified receivers or managing
agents to the Chief Administrative Judge of the New York State Supreme
Court to choose from.

 
JUSTIFICATION:

At the height of the housing boom, speculators purchased multifamily
housing at inflated prices using unrealistic expectations of future
revenue. This has led to situations where owners cannot afford to pay
the debt service on the large loans they took out. Many tenants now find
their buildings to be in states of significant disrepair and neglect as
owners have cut back on maintenance expenses as well.

When a property enters foreclosure, the judge appoints a receiver to
manage the property during the foreclosure process. Currently, judges
have complete discretion which may be at no fault of the judge, but can
lead to selecting receivers that are not prepared or qualified to manage
the distressed multifamily property. This leads neglected properties to
languish in disrepair or decent properties' conditions to decline.

This piece of legislation will allow appropriate agencies to state who
they find qualified to be receivers or managing agents. This list would
hold these agencies accountable for their appointments, which is not the
case currently. This ensures that those who are appointed as receivers
or managing agents are qualified professionals.

 
LEGISLATIVE HISTORY:

2013-2014: S55621 No Same As

2015-2016: S14251 / A7340 Pichardo

2017-2018: S1072 /A5953 Pichardo

2019-2020: S481 / A2178 Pichardo

2021-2022: S2536 Rivera /A1036 Seawright
 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S2954 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2954
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2023
                                ___________
 
 Introduced  by  Sens.  RIVERA, PARKER -- read twice and ordered printed,
   and when  printed  to  be  committed  to  the  Committee  on  Housing,
   Construction and Community Development
 
 AN  ACT  to  amend  the  real  property  actions and proceedings law, in
   relation to the appointment of receivers in  actions  to  foreclose  a
   mortgage

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1325 of the real property  actions
 and  proceedings  law,  as  added by chapter 312 of the laws of 1962, is
 amended to read as follows:
   1. (A) Where the action is for the foreclosure of a mortgage providing
 that a receiver may be appointed without notice, notice of a motion  for
 such appointment shall not be required.
   (B)  IN  A  CITY  WITH A POPULATION OF ONE MILLION OR MORE, THE AGENCY
 HAVING JURISDICTION FOR ADMINISTERING AND ENFORCING THE LAWS, RULES  AND
 REGULATIONS RELATING TO THE OPERATION, REPAIR OR MAINTENANCE OF RESIDEN-
 TIAL  REAL  PROPERTY MAY SUBMIT TO THE CHIEF ADMINISTRATIVE JUDGE OF THE
 SUPREME COURT A LIST OF PERSONS SUCH AGENCY HAS DETERMINED TO BE  QUALI-
 FIED  TO  BE APPOINTED AS A RECEIVER OR AS A MANAGING AGENT.  WHERE SUCH
 AGENCY SUBMITS SUCH LIST TO THE CHIEF ADMINISTRATIVE  JUDGE,  THE  COURT
 MAY  ONLY  APPOINT  A RECEIVER WHOSE NAME APPEARS ON SUCH LIST, AND SUCH
 RECEIVER MAY ONLY APPOINT A MANAGING AGENT WHOSE NAME  APPEARS  ON  SUCH
 LIST.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07029-01-3

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Senate Bill S2954

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Sponsored By

Gustavo Rivera