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A00448 Summary:

BILL NOA00448
 
SAME ASNo Same As
 
SPONSORRosenthal L
 
COSPNSR
 
MLTSPNSR
 
Amd §§27-2109.1 & 27-2130, NYC Ad Cd
 
Relates to requiring written notification by mortgagees commencing foreclosure actions on a multiple dwelling with ten or more units to the department of housing preservation and development to aid in the identification and improvements of at-risk properties.
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A00448 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           448
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2023
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Judiciary
 
        AN ACT to amend the administrative code of the  city  of  New  York,  in
          relation  to  requiring notification by mortgagees commencing foreclo-
          sure actions to aid in the identification and improvements of  at-risk
          properties

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 27-2109.1 of the administrative code of the city of
     2  New York is amended by adding a new subdivision d to read as follows:
     3    d. 1. Any mortgagee that commences an action in a court  of  competent
     4  jurisdiction  in  the  state  of  New  York to foreclose a mortgage on a
     5  multiple dwelling with ten or more units shall provide written notice to
     6  the department within fifteen days of service of the pleadings  commenc-
     7  ing  such action. If such action was commenced before the effective date
     8  of the local law that added this section, and remains pending as of such
     9  effective date, notification shall be provided  within  thirty  days  of
    10  such  effective  date. For purposes of this subdivision department shall
    11  mean the department of housing preservation and development.
    12    2. Such notice shall include, but is not  limited  to,  the  following
    13  information:  (i)  the  name  of the mortgagee plaintiff commencing such
    14  action and the mailing address, telephone number and e-mail  address  of
    15  such  mortgagee plaintiff, and, when applicable, the name of a principal
    16  or corporate officer  of  such  mortgagee  plaintiff,  and  the  mailing
    17  address, telephone number and e-mail address of such principal or corpo-
    18  rate  officer;  (ii)  the  name,  mailing  address, telephone number and
    19  e-mail address of the defendant in such action; (iii) the identification
    20  of such residential real property by street address and  block  and  lot
    21  number;  (iv) the date of the commencement of such action; (v) the court
    22  in which such action was commenced and the index number of such  action;
    23  (vi) the property's appraised fair market value; (vii) the amount of the
    24  principal  balance  owed  under the mortgage being foreclosed, including
    25  interest and principal arrears, late fees and any  other  sums  due  and
    26  owing  as  of  the  date of filing of the complaint; (viii) the interest
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00869-01-3

        A. 448                              2
 
     1  rate and maturity date of the mortgage being foreclosed,  including  the
     2  amount,  if  any,  necessary to bring the loan current as of the date of
     3  filing of the complaint; (ix) a list, including amounts,  of  any  other
     4  indebtedness on the residential real property that is the subject of the
     5  foreclosure  action  as set forth in the pleadings; (x) whether there is
     6  any government investment in the property; (xi) whether  there  are  any
     7  outstanding municipal arrears; (xii) whether such property has a certif-
     8  icate  of  occupancy;  (xiii)  any  code  violations  that  the property
     9  currently has; and (xiv) such other information as  the  department  may
    10  require by rule.
    11    3.  The  department  shall  then  make a determination of whether such
    12  property being foreclosed on is an "at-risk"  property.  In  making  its
    13  determination  the  department shall consider subparagraphs (vi) through
    14  (xiii) of paragraph two of this subdivision, and any  other  information
    15  the  department finds relevant to making its determination. For purposes
    16  of this section an "at-risk" property shall mean a property in  physical
    17  and/or financial distress.
    18    4.  In any foreclosure proceeding under this section where the depart-
    19  ment has declared the property to be at-risk, the department may move to
    20  have a receiver appointed or replaced. The department  shall  provide  a
    21  list  of  approved  receivers and managing agents to the office of court
    22  administration which shall require that the  court  appoint  a  receiver
    23  from  such  list within one hundred eighty days after the effective date
    24  of this subdivision. Any receiver or managing agents  shall  be  made  a
    25  party to the foreclosure proceedings.
    26    5.  A mortgagee shall notify the department within fifteen days of the
    27  discontinuance of an action for which notice pursuant to  paragraph  one
    28  of this subdivision has been received by the department, the issuance of
    29  a  judgment in such action, or the sale of the real property as a result
    30  of such action.
    31    6. The department may collect a two percent fee on  the  sale  of  the
    32  real  property as a result of such action. Such monies shall be provided
    33  to the receiver for the purposes of rehabilitating  the  property,  with
    34  the expended money becoming a priority lien on the property.
    35    §  2.  Section  27-2130  of the administrative code of the city of New
    36  York is amended to read as follows:
    37    § 27-2130 Grounds for appointment of receiver. 1. Whenever the depart-
    38  ment certifies that any condition in violation of this chapter or  other
    39  applicable  law  in  any  multiple  dwelling or any part of its premises
    40  constitutes a serious fire hazard or is a serious threat to life, health
    41  or safety, it may, upon failure of the owner to comply with an order  to
    42  correct  such  conditions  issued pursuant to section 27-2125 of article
    43  five of this subchapter, apply for the  appointment  of  a  receiver  to
    44  repair and correct the violations.
    45    2.  Whenever any mortgagee commences an action in a court of competent
    46  jurisdiction in the state of New York  to  foreclose  a  mortgage  on  a
    47  multiple  dwelling  with  ten or more units and where the department has
    48  declared the property being foreclosed on to be  an  "at-risk"  property
    49  pursuant  to  section 27-2109.1 of this chapter, the department may move
    50  to have a receiver appointed or replaced. The department may  provide  a
    51  list  of  approved  receivers and managing agents to the office of court
    52  administration which shall require that the  court  appoint  a  receiver
    53  from  such  list. For purposes of this subdivision department shall mean
    54  the department of housing preservation and development.
    55    § 3. This act shall take effect immediately.
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