Relates to requiring a mortgagor to provide notice of imminent foreclosure to his or her tenant or prospective tenant prior to he or she renewing or signing a lease agreement.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5241
SPONSOR: Williams TITLE OF BILL:
An act to amend the real property law, in relation to requiring a mort-
gagor to provide notice of imminent foreclosure to his or her tenant or
tenants
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to add a new section that will require a
mortgagor to provide notice of imminent foreclosure to his/her tenants
or potential tenants prior to signing or renewing a lease agreement.
SUMMARY OF SPECIFIC PROVISIONS:
The real property law is being amended by adding a new section, 235-h.
235-which states that "imminent foreclosure" shall mean a mortgagor has
received notice of foreclosure delivered along with a summons and
complaint, as required in subdivision 2 of section 1303 of the real
property actions and proceedings law. A mortgagor shall disclose immi-
nent foreclosure to his/her tenants or prospective tenants prior to
signing or renewing a lease.
JUSTIFICATION:
This bill is designed to protect the rights of tenant/s and or prospec-
tive tenants by requiring mortgagers to disclose to his/her tenant/s or
tenants of imminent foreclosure. Informing tenants of imminent foreclo-
sure provides them with the adequate time needed to find a new home and
to make necessary preparations before the foreclosure process is
completed.
PRIOR LEGISLATIVE HISTORY:
2018: A7095
2019: A6851
2020: A6851
FISCAL IMPLICATIONS TO STATE AND LOCAL GOVERNMENT:
None.
EFFECTIVE DATE:
Immediately.
