A06470 Summary:
| BILL NO | A06470 |
| SAME AS | SAME AS S05800 |
| SPONSOR | Magnarelli |
| COSPNSR | D'Urso, Skoufis, Peoples-Stokes, Steck, Cook, Galef, Hooper |
| MLTSPNSR | Schimminger, Simon |
| Amd §1308, RPAP L | |
| Requires a servicer in a mortgage foreclosure action of residential real property to pay homeowners' association or cooperative fees as needed to maintain the property. | |
A06470 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to inspecting, securing and maintaining vacant and abandoned residential property PURPOSE: To require mortgage holders of vacant and abandoned residential proper- ties that are part of a homeowners association (HOA) or co-op to contin- ue paying HOA or cooperative fees when a property has been abandoned during the foreclosure process. SUMMARY OF PROVISIONS: Section 1: Amends § 1308(4) of the Real Property Actions and Proceedings Law by adding new subdivision (k) to require holders of mortgages on vacant and abandoned residential properties to continue paying HOA and cooperative fees during the pending foreclosure, if applicable. Section 2: Establishes the effective date. JUSTIFICATION: Vacant and abandoned residential properties have become a significant issue in New York. Many times these properties are abandoned by their owner during a pending foreclosure. These properties then become "zombie properties" with no entity responsible for their upkeep during the pend- ing foreclosure. Often these properties become dilapidated and blighted before the foreclosure is finalized. In 2016, the Legislature passed Chapter 73 of the Laws of 2016 that required the holders of mortgages on "zombie properties" to take respon- sibility for the upkeep and securing of these properties. While the law is focused on single-family houses, condominiums and co-ops are also subject to becoming "zombie properties". Maintenance and upkeep are often handled through a homeowners association. When a condo or co-op is abandoned by an owner, they stop paying HOA fees. This places a finan- cial burden on the HOA who must maintain the abandoned property to prevent damage or deterioration to other properties in the association. This legislation would amend Chapter 73 of 2016 to require mortgage holders to pay HOA or co-op fees as part of their duty to maintain aban- doned properties they still hold mortgages on. This will ensure that HOAs and coop associations are able to maintain these properties during the pending foreclosure, preventing physical or economic damage to the other properties in the association. LEGISLATIVE HISTORY: New bill. FISCAL IMPLICATIONS: None to the State. EFFECTIVE DATE: This act shall take effect immediately.