Bill S2264-2013

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance.

Details

Actions

  • Jan 8, 2014: REFERRED TO JUDICIARY
  • Jan 15, 2013: REFERRED TO JUDICIARY

Memo

BILL NUMBER:S2264

TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to title to an abandoned multiple dwelling in a city, town or village

SUMMARY OF PROVISIONS:

Section 1: amends subdivision 3 of section 1972 of the real property actions and proceedings law to require a mortgagee or lienor, who institutes proceedings to foreclose, to have a receiver appointed and ordered to enter into an agreement with the appropriate agency to repair and correct violations of housing maintenance laws, or alternatively to take possession of the premises themselves and enter into a repair agreement with the city agency to prevent the agency from taking title to an abandoned building.

Section 2: Effective 120 days after it shall have become law.

JUSTIFICATION: The purpose of the abandoned building law (article 19-A of the real property actions and proceedings law) is to allow the city government to take title to buildings to ensure they are properly managed after abandonment. An owner may block such proceedings by resuming management and undertaking repairs. If the owner does not make repairs, then mortgagees and lienors may stop article 19-A proceedings by merely starting a foreclosure action. However, current law does not require the mortgagee or lienor to follow through with the foreclosure action or ensure that someone is appointed and empowered to manage the building.

In order to correct this situation, this bill would require the mortgagee or lienor to proceed with the foreclosure action and have a receiver appointed who must reach a repair agreement with the housing and development administration, or alternatively such mortgagee or lienor may take formally take possession and enter into such an agreement. This will ensure that the building will be effectively managed and repaired.

LEGISLATIVE HISTORY: 2012 - S. 696 Referred to Judiciary 2010 S.8100A Ordered to Third Reading Cal.1893 2010 - A.6161 Referred to Judiciary 2008- A.6419 Referred to Judiciary 2006- S.3554 Referred to Judiciary/A.5768 Referred to Judiciary 2004- S.542 Referred to Judiciary A.6640 Referred to Judiciary 2002- S.7002 Referred to Judiciary/A.7748 Referred to Judiciary 2000- A.7458 Calendar 1998A.7764 Calendar

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect on the 120th day after it shall have become a law and shall apply to proceedings commenced on or after such date.


Text

STATE OF NEW YORK ________________________________________________________________________ 2264 2013-2014 Regular Sessions IN SENATE January 15, 2013 ___________
Introduced by Sen. KLEIN -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property actions and proceedings law, in relation to title to an abandoned multiple dwelling in a city, town or village THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 1972 of the real property actions and proceedings law, as added by chapter 864 of the laws of 1973, is amended to read as follows: 3. Within five days of the service of notice on the owner, a copy of the certification shall be served on each mortgagee, lienor and lessee of record, personally or by registered mail to the address set forth in the recorded instrument or, if no address appears therein, to the person at whose request the instrument was recorded. Such copy shall, in the case of a mortgagee or lienor, be accompanied by a notice that proceedings pursuant to this article may be instituted unless the mort- gagee or lienor, within fifteen days of such mailing, either (A) commences proceedings to foreclose the mortgage or lien AND MOVES FOR THE APPOINTMENT OF A RECEIVER WHICH BRINGS THE BUILDING INTO COMPLIANCE WITH THE APPLICABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE OF APPOINTMENT OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT or [enters into an agreement with the department to bring the building] (B) TAKES POSSESSION OF THE PREMISES AS PROVIDED IN THE MORTGAGE AND BRINGS THE BUILDING into compliance with the applicable provisions of law WITHIN NINETY DAYS FROM THE DATE OF TAKING POSSESSION OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT. THE DEPARTMENT MAY, NOTWITHSTANDING ANYTHING TO THE CONTRA- RY IN THIS SUBDIVISION, INSTITUTE PROCEEDINGS PURSUANT TO THIS ARTICLE IF: (I) THE APPLICATION FOR APPOINTMENT OF A RECEIVER IS DENIED, (II) THE RECEIVER FAILS TO BRING THE BUILDING INTO COMPLIANCE WITH THE APPLI-
CABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE OF APPOINTMENT OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT; OR (III) THE MORTGAGEE OR LIENOR IN POSSESSION FAILS TO BRING THE BUILDING INTO COMPLIANCE WITH THE APPLICABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE OF TAKING POSSESSION OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law and shall apply to proceedings commenced on or after such date.

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