Bill S5562-2013

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

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

Details

Actions

  • Jan 8, 2014: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
  • May 21, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

Memo

BILL NUMBER:S5562

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 mortgage

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:

Subdivision one of section 1325 of the real property actions and proceedings law is amended by the addition of section (b). The new sections requires that cities with a population of one million or more persons give authority to appropriate agency to create a list of potential receivers or managing agents.

JUSTIFICATION:

At the height of the housing boom, speculators purchased multi-family 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 significant disrepair as owners have cut back on maintenance 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 maybe at no fault of the judge, can lead to receivers that are not prepared or qualified to manage distressed multifamily property. This leads bad properties to languish in disrepair or decent properties 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 individuals.

LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5562 2013-2014 Regular Sessions IN SENATE May 21, 2013 ___________
Introduced by Sen. RIVERA -- 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. S 2. This act shall take effect immediately.

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