Provides that any landlord that is in mortgage foreclosure due to loss of rent payments cannot enter into a state of foreclosure until a court handling a special proceeding to recover rent resolves any rent issues.
STATE OF NEW YORK
________________________________________________________________________
6420
2023-2024 Regular Sessions
IN SENATE
April 19, 2023
___________
Introduced by Sen. COMRIE -- 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 foreclosure of certain properties
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 757 of the real property actions and proceedings
2 law, as added by section 23 of part M of chapter 36 of the laws of 2019,
3 is amended to read as follows:
4 § 757. Eviction as the result of foreclosure. 1. Any landlord that is
5 in mortgage foreclosure due to loss of rent payments cannot enter into a
6 state of foreclosure until a special proceeding to recover real property
7 is maintained and any rent issues are resolved. Such court shall track
8 all loss of rent payment cases and subsequent foreclosure cases.
9 2. In the event that a lessee is removed from real property pursuant
10 to this article, and the leased real property was the subject of a fore-
11 closure proceeding pursuant to this chapter or the subject of a tax
12 foreclosure proceeding, the court records relating to any such lessee
13 shall be sealed and be deemed confidential. No disclosure or use of such
14 information relating to any such lessee shall be authorized, and the use
15 of such information shall be prohibited.
16 § 2. Section 1302 of the real property actions and proceedings law is
17 amended by adding a new subdivision 3 to read as follows:
18 3. Any landlord that is in mortgage foreclosure due to loss of rent
19 payments cannot enter into a state of foreclosure until a special
20 proceeding to recover real property is maintained and any rent issues
21 are resolved. Such court shall track all loss of rent payment cases and
22 subsequent foreclosure cases.
23 § 3. This act shall take effect on the one hundred eightieth day after
24 it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10803-02-3
