§ 1307. Duty to maintain foreclosed property. 1. A plaintiff who
commences a mortgage foreclosure action, including a lender, an assignee
or a mortgage loan servicer, seeking a judgment of foreclosure and sale
pursuant to section thirteen hundred fifty-one of this article,
involving residential real property, as defined in section thirteen
hundred five of this article, that is vacant, or becomes vacant after
commencement of the action or the issuance of such judgment, or is
abandoned by the mortgagor but occupied by a tenant, as defined under
section thirteen hundred five of this article, shall maintain such
property until such time as ownership has been transferred through the
closing of title in foreclosure, or other disposition, and the deed for
such property has been duly recorded; provided, however, that if a
municipality or governmental entity holds a mortgage subordinate to one
or more mortgages on the residential real property, the municipality or
governmental entity shall not be subject to the requirements of this
section.

2. Such plaintiff shall have the right to peaceably enter upon such
property, or to cause others to peaceably enter upon the property for
the limited purpose of inspections, repairs and maintenance as required
by this section, or as otherwise ordered by court; provided, however,
that if the property is occupied by a tenant, at least seven days notice
must be given to such tenant, unless emergency repairs are required in
which case reasonable notice shall be provided to the tenant.

(a) A residential property is deemed vacant for the purposes of this
section if the residential property meets the definition of a "vacant
and abandoned residential property" under section thirteen hundred nine
of this article or there is an order or finding by a court of competent
jurisdiction or by the municipality in which the residential property is
located that the property is vacant;

(b) A residential property is deemed abandoned by the mortgagor if:
(i) All owners of the residential property have indicated in writing
that they have abandoned all rights of possession to the residential
property;

(ii) There is an order or finding by a court of competent jurisdiction
or by the municipality in which the residential property is located,
either on the initiative of the court or municipality or in response to
a complaint filed with the court or municipality by a tenant in lawful
occupancy, that the property was abandoned by the mortgagor; or

(iii) The plaintiff receives a complaint from a tenant in lawful
occupancy of the residential property indicating that the owner of the
residential property has ceased maintaining the property and:

(1) The plaintiff posts a notice on the residential property that
would be reasonably visible to the owner of the property indicating that
the property is deemed abandoned and the owner must contact the
plaintiff at a number listed on the notice if the owner still occupies
or claims the right to occupy the property; and

(2) The plaintiff has received no communication within one week of
posting the notice of the owner's intention to occupy the property.

(c) Such plaintiff shall have the right to peaceably enter upon such
property, or to cause others to peaceably enter upon the property for
the limited purpose of inspections, repairs and maintenance as required
by this section, or as otherwise ordered by court; provided, however,
that if the property is occupied by a tenant, at least seven days notice
must be given to such tenant, unless emergency repairs are required in
which case reasonable notice shall be provided to the tenant.

(d) Any plaintiff that enters a residential property without a good
faith basis for believing that the property is vacant or abandoned and
who does not comply with the requirements of paragraph (b) of this
subdivision shall be subject to a penalty of five hundred dollars that
may be sought by the owner of the residential property or any tenant in
lawful possession of such property. This penalty may be recovered by a
property owner or tenant in lawful occupancy of such property either
within the foreclosure action pending against the subject residential
real property or in a separate action commenced to collect the penalty.

3. The municipality in which such residential real property is
located, any tenant lawfully in possession, and a board of managers of a
condominium in which the premises are located or a homeowners
association if said premises are subject to the rules and regulations of
such an association, 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 foreclosure action
unless emergency repairs are required. Any entity acting pursuant to
this subdivision shall have a cause of action in any court of competent
jurisdiction against the plaintiff in the foreclosure action to recover
costs incurred as a result of maintaining the property. 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 mortgagor of such property
for failure to maintain such property.

4. In the event the mortgagor of the property commences a proceeding
in bankruptcy court prior to the completion of the public auction
ordered in the judgment of sale, the duties created by this section
shall be suspended during the pendency of the bankruptcy proceeding or
until such time as an order has been entered in that proceeding lifting
or removing the automatic stay of the foreclosure sale.

5. For the purposes of this section "maintain" shall mean keeping the
subject property in a manner that is consistent with the standards set
forth in the New York property maintenance code chapter 3 sections 301,
302 (excluding 302.2, 302.6 and 302.8), 304.1, 304.3, 304.7, 304.10,
304.12, 304.13, 304.15, 304.16, 307.1, and 308.1; provided, however,
that if the property is occupied by a tenant, then such property must
also be maintained in a safe and habitable condition.

6. A plaintiff shall be relieved of its responsibilities to maintain
the residential real property that is the subject of a foreclosure
action for the period that a receiver of such property is serving.

7. Nothing contained in this section shall diminish in any way the
obligations pursuant to any state or local law of the mortgagor of the
property or a receiver of rents and profits appointed in an action to
foreclose a mortgage to maintain the property prior to the closing of
title pursuant to a foreclosure sale.

8. This section shall not preempt, reduce or limit any rights or
obligations imposed by any local laws with respect to property
maintenance and the locality's ability to enforce those laws.