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

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S2264-2013 Actions

• Jan 15, 2013: REFERRED TO JUDICIARY

S2264-2013 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 1998-
A.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.

S2264-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2264

                         2013-2014 Regular Sessions

                              I N  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-

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD03700-01-3

 S. 2264                             2

  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.