NY State Senate Bill 2025-S2122A

Senate Bill S2122A

2025-2026 Legislative Session

Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property

download bill text pdf

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
May 01, 2025	print number 2122a
May 01, 2025	amend and recommit to housing, construction and community development
Jan 15, 2025	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

2025-S2122 - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1307, RPAP L

2025-S2122 - Summary

Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $650 per day for each day such violation persists after the judgement of foreclosure has been issued.

2025-S2122 - Sponsor Memo

                                 
BILL NUMBER: S2122

SPONSOR: FAHY
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to authorizing municipalities and the department of financial
services to seek civil penalties for violations of the duty to maintain
a foreclosed property

 
PURPOSE OR GENERAL IDEA OF BILL:

Authorizes municipalities and the department of financial services to
seek civil penalties for violations of the duty to maintain a foreclosed
property.

This bill would extend the authority of the department of financial
services and municipalities to prosecute zombie properties beyond judg-
ment of foreclosure by amending Real Property Actions and Proceedings
Law 1307 to include the same remedies available under Real Property
Actions and Proceedings Law 1308; which allow the department of finan-
cial services and municipalities to sue for $5001 per violation per day
after a judgment of foreclosure has been issued.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Section 1307 of the real property actions and
proceedings law by adding a new subdivision 3-a:

a. Provides that violations of this section may be brought before a
hearing officer or a court by the Department of Financial Services and
municipalities, as authorized by paragraph b or c of this subdivision.
Sets the civil penalty for violation of this section at $500 per day of
the violation.

b. Authorizes the superintendent of financial services to pursue
violations of this section by a plaintiff in a mortgage foreclosure
action. Sets the minimum time to give notice to the plaintiff at seven
days.

c. Authorizes municipalities to enforce obligations described in this
section provided that sufficient notice is given to the plaintiff in the
mortgage foreclosure for such property, unless such property requires
emergency repairs under certain circumstances, in which case, the muni-
cipality may enter and maintain such property to cure such emergency
provided that such plaintiff is notified as soon as practicable.
Further, this paragraph requires the municipality to provide the Depart-
ment of Financial Services with at least ten days notice prior to bring-
ing an action pursuant to this subdivision.

d. Authorizes the department of financial services to adopt rules and
regulations as necessary for the implementation, administration, opera-
tion, and enforcement of this section.

Section 2: Sets the effective date.

 
JUSTIFICATION:


This bill allows for the Department of Financial Services ("DFS" or the
"Department") and municipalities to undertake additional enforcement
activities relating to zombie properties. Zombie properties are mort-
gage-delinquent properties that the homeowner has abandoned, which typi-
cally languish for years in a state of disrepair and neglect until the
mortgagee completes the foreclosure process.

Currently, the Department and municipalities are contained from initiat-
ing action against mortgage lenders who fail to maintain a property to
code after they are awarded a judgment of foreclosure.  Properties may
sit in limbo for years after a judgment is issued before being sold at
auction, and the inability to prosecute zombie property law violations
for this category of buildings allows these property owners to abdicate
their responsibilities to the community. As a result, the Department has
not prosecuted zombie properties in recent years and left enforcement of
zombie property laws up to municipalities, many of which do not have the
resources to pursue these cases.

This bill broadens the window during the foreclosure process when these
cases may be filed to include the period beyond when a judgment of fore-
closure is issued.

 
PRIOR LEGISLATIVE HISTORY:

A5890 (2023-24)

 
FISCAL IMPLICATION:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S2122 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2122
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sen.  FAHY  --  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 authorizing municipalities and the department of financial
   services to seek civil penalties for violations of the duty  to  main-
   tain a foreclosed property
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1307 of the real property actions  and  proceedings
 law is amended by adding a new subdivision 3-a to read as follows:
   3-A.  (A) IN ADDITION TO THE RIGHTS TO ENFORCE CERTAIN OBLIGATIONS AND
 RECOVER CERTAIN COSTS PURSUANT TO SUBDIVISION  THREE  OF  THIS  SECTION,
 VIOLATIONS  OF  THIS  SECTION  BY  A PLAINTIFF IN A MORTGAGE FORECLOSURE
 ACTION MAY BE BROUGHT BEFORE A HEARING OFFICER OR A COURT  OF  COMPETENT
 JURISDICTION BY AN ENTITY AUTHORIZED PURSUANT TO PARAGRAPH (B) OR (C) OF
 THIS SUBDIVISION. IF IT SHALL APPEAR TO THE SATISFACTION OF SUCH HEARING
 OFFICER  OR COURT, BASED ON THE PREPONDERANCE OF THE EVIDENCE, THAT SUCH
 PLAINTIFF HAS VIOLATED THIS SECTION, A CIVIL PENALTY MAY  BE  ISSUED  BY
 SUCH  HEARING  OFFICER  OR  COURT  IN  THE  AMOUNT OF UP TO FIVE HUNDRED
 DOLLARS PER DAY FOR EACH DAY SUCH VIOLATION PERSISTED AFTER THE JUDGMENT
 OF FORECLOSURE HAS BEEN ISSUED.
   (B) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY, AS  APPROPRIATE  AND
 IN SUCH SUPERINTENDENT'S SOLE DISCRETION, PURSUE ANY SUSPECTED VIOLATION
 OF  THIS SECTION BY A PLAINTIFF IN A MORTGAGE FORECLOSURE ACTION. BEFORE
 TAKING SUCH ACTION, THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL  GIVE
 SUCH PLAINTIFF AT LEAST SEVEN DAYS' NOTICE OF SUCH VIOLATION.
   (C)  THE  MUNICIPALITY  IN  WHICH  SUCH  RESIDENTIAL  REAL PROPERTY IS
 LOCATED SHALL HAVE THE RIGHT TO ENFORCE  THE  OBLIGATIONS  DESCRIBED  IN
 THIS SECTION IN ANY COURT OF COMPETENT JURISDICTION AFTER AT LEAST SEVEN
 DAYS'  NOTICE  TO  THE  PLAINTIFF IN THE MORTGAGE FORECLOSURE ACTION FOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05092-01-5

 S. 2122                             2
 
 SUCH PROPERTY,  UNLESS  SUCH  PROPERTY  REQUIRES  EMERGENCY  REPAIRS  TO
 ADDRESS A THREAT TO PUBLIC HEALTH, SAFETY OR WELFARE, IN WHICH CASE SUCH
 MUNICIPALITY  MAY ENTER AND MAINTAIN SUCH PROPERTY TO CURE SUCH EMERGEN-
 CY, PROVIDED HOWEVER, NOTICE SHALL BE PROVIDED TO SUCH PLAINTIFF AS SOON
 AS PRACTICABLE. SUCH MUNICIPALITY SHALL PROVIDE THE DEPARTMENT OF FINAN-
 CIAL SERVICES WITH WRITTEN NOTICE AT LEAST TEN DAYS PRIOR TO BRINGING AN
 ACTION  PURSUANT TO THIS SUBDIVISION; PROVIDED, HOWEVER, THAT FAILURE TO
 COMPLY WITH SUCH NOTICE REQUIREMENT SHALL NOT BE A DEFENSE  AGAINST  THE
 ACTION  PURSUANT  TO  THIS  SUBDIVISION.  THE AUTHORITY PROVIDED BY THIS
 SUBDIVISION SHALL BE IN ADDITION TO, AND SHALL NOT BE DEEMED TO DIMINISH
 OR REDUCE, ANY RIGHTS OF THE PARTIES DESCRIBED  IN  THIS  SECTION  UNDER
 EXISTING  LAW AGAINST THE PLAINTIFF FOR FAILURE TO MAINTAIN SUCH PROPER-
 TY.  ANY CIVIL PENALTY IMPOSED PURSUANT TO PARAGRAPH (A) OF THIS  SUBDI-
 VISION IN AN ACTION BROUGHT BY A MUNICIPALITY PURSUANT TO THIS PARAGRAPH
 SHALL BE RETAINED BY SUCH MUNICIPALITY.
   (D)  THE  DEPARTMENT  OF  FINANCIAL  SERVICES  SHALL BE AUTHORIZED AND
 EMPOWERED TO ADOPT SUCH RULES AND REGULATIONS AS MAY, IN THE JUDGMENT OF
 THE SUPERINTENDENT OF FINANCIAL SERVICES, BE NECESSARY FOR THE EFFECTIVE
 IMPLEMENTATION,  ADMINISTRATION,  OPERATION  AND  ENFORCEMENT  OF   THIS
 SECTION.
   § 2. This act shall take effect immediately.

2025-S2122A (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1307, RPAP L

2025-S2122A (ACTIVE) - Summary

2025-S2122A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2122--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sen.  FAHY  --  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 the  real  property  actions  and  proceedings  law,  in
   relation to authorizing municipalities and the department of financial
   services  to  seek civil penalties for violations of the duty to main-
   tain a foreclosed property
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 1307 of the real property actions and proceedings
 law is amended by adding a new subdivision 3-a to read as follows:
   3-A. (A) IN ADDITION TO THE RIGHTS TO ENFORCE CERTAIN OBLIGATIONS  AND
 RECOVER  CERTAIN  COSTS  PURSUANT  TO SUBDIVISION THREE OF THIS SECTION,
 VIOLATIONS OF THIS SECTION BY A  PLAINTIFF  IN  A  MORTGAGE  FORECLOSURE
 ACTION  MAY  BE BROUGHT BEFORE A HEARING OFFICER OR A COURT OF COMPETENT
 JURISDICTION BY AN ENTITY AUTHORIZED PURSUANT TO PARAGRAPH (B) OR (C) OF
 THIS SUBDIVISION. IF IT SHALL APPEAR TO THE SATISFACTION OF SUCH HEARING
 OFFICER OR COURT, BASED ON THE PREPONDERANCE OF THE EVIDENCE, THAT  SUCH
 PLAINTIFF  HAS  VIOLATED  THIS SECTION, A CIVIL PENALTY MAY BE ISSUED BY
 SUCH HEARING OFFICER OR COURT IN THE AMOUNT OF UP TO SIX  HUNDRED  FIFTY
 DOLLARS PER DAY FOR EACH DAY SUCH VIOLATION PERSISTED AFTER THE JUDGMENT
 OF  FORECLOSURE  HAS  BEEN ISSUED. SUCH PENALTY MAY BE APPLIED UNTIL THE
 PROPERTY HAS BEEN TRANSFERRED TO A THIRD  PARTY,  WHETHER  THE  DETERMI-
 NATION  OF  THE VIOLATION WAS MADE BEFORE OR AFTER THE JUDGMENT OF FORE-
 CLOSURE WAS ISSUED.
   (B) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY, AS  APPROPRIATE  AND
 IN SUCH SUPERINTENDENT'S SOLE DISCRETION, PURSUE ANY SUSPECTED VIOLATION
 OF  THIS SECTION BY A PLAINTIFF IN A MORTGAGE FORECLOSURE ACTION. BEFORE
 TAKING SUCH ACTION, THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL  GIVE
 SUCH PLAINTIFF AT LEAST SEVEN DAYS' NOTICE OF SUCH VIOLATION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05092-02-5

 S. 2122--A                          2
 
   (C)  THE  MUNICIPALITY  IN  WHICH  SUCH  RESIDENTIAL  REAL PROPERTY IS
 LOCATED SHALL HAVE THE RIGHT TO ENFORCE  THE  OBLIGATIONS  DESCRIBED  IN
 THIS SECTION IN ANY COURT OF COMPETENT JURISDICTION AFTER AT LEAST SEVEN
 DAYS'  NOTICE  TO  THE  PLAINTIFF IN THE MORTGAGE FORECLOSURE ACTION FOR
 SUCH  PROPERTY,  UNLESS  SUCH  PROPERTY  REQUIRES  EMERGENCY  REPAIRS TO
 ADDRESS A THREAT TO PUBLIC HEALTH, SAFETY OR WELFARE, IN WHICH CASE SUCH
 MUNICIPALITY MAY ENTER AND MAINTAIN SUCH PROPERTY TO CURE SUCH  EMERGEN-
 CY, PROVIDED HOWEVER, NOTICE SHALL BE PROVIDED TO SUCH PLAINTIFF AS SOON
 AS PRACTICABLE. SUCH MUNICIPALITY SHALL PROVIDE THE DEPARTMENT OF FINAN-
 CIAL SERVICES WITH WRITTEN NOTICE AT LEAST TEN DAYS PRIOR TO BRINGING AN
 ACTION  PURSUANT TO THIS SUBDIVISION; PROVIDED, HOWEVER, THAT FAILURE TO
 COMPLY WITH SUCH NOTICE REQUIREMENT SHALL NOT BE A DEFENSE  AGAINST  THE
 ACTION  PURSUANT  TO  THIS  SUBDIVISION.  THE AUTHORITY PROVIDED BY THIS
 SUBDIVISION SHALL BE IN ADDITION TO, AND SHALL NOT BE DEEMED TO DIMINISH
 OR REDUCE, ANY RIGHTS OF THE PARTIES DESCRIBED  IN  THIS  SECTION  UNDER
 EXISTING  LAW AGAINST THE PLAINTIFF FOR FAILURE TO MAINTAIN SUCH PROPER-
 TY.  ANY CIVIL PENALTY IMPOSED PURSUANT TO PARAGRAPH (A) OF THIS  SUBDI-
 VISION IN AN ACTION BROUGHT BY A MUNICIPALITY PURSUANT TO THIS PARAGRAPH
 SHALL BE RETAINED BY SUCH MUNICIPALITY.
   (D)  THE  DEPARTMENT  OF  FINANCIAL  SERVICES  SHALL BE AUTHORIZED AND
 EMPOWERED TO ADOPT SUCH RULES AND REGULATIONS AS MAY, IN THE JUDGMENT OF
 THE SUPERINTENDENT OF FINANCIAL SERVICES, BE NECESSARY FOR THE EFFECTIVE
 IMPLEMENTATION,  ADMINISTRATION,  OPERATION  AND  ENFORCEMENT  OF   THIS
 SECTION.
   § 2. This act shall take effect immediately.

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