Directs the department of financial services to establish an electronic database of residential real property that was foreclosed upon, and is vacant or abandoned but occupied by tenants; grants municipalities, the department of law and certain non-governmental entities access to such database for the purposes of enforcing the duty to maintain foreclosed property.
STATE OF NEW YORK
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7434
IN SENATE
April 29, 2016
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Introduced by Sen. KLEIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to establishing a statewide
electronic database of foreclosed residential real property; and to
amend the real property actions and proceedings law, in relation to
authorizing the attorney general to enforce the duty to maintain fore-
closed property
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 37-b to
2 read as follows:
3 § 37-b. Statewide electronic database; foreclosed residential real
4 property. 1. Where a mortgagee or its agent has obtained a judgment of
5 foreclosure and sale pursuant to section thirteen hundred fifty-one of
6 the real property actions and proceedings law, involving residential
7 real property, as defined in section thirteen hundred five of such law,
8 that is or has become vacant, or has been abandoned by the mortgagor but
9 occupied by a tenant, shall provide written notice thereof to the
10 department, in such form and manner as shall be determined by the super-
11 intendent.
12 A mortgagee or its agent shall submit such notice within ten days of
13 when the mortgagee or its agent learns or reasonably should have learned
14 that the foreclosed residential real property is vacant or abandoned.
15 Such notice shall include, at a minimum, the current name, address and
16 contact information for the mortgagee or agent, the address of the real
17 property, the tax identification number of the real property, and wheth-
18 er the property is vacant or abandoned but occupied by tenants.
19 2. Where any of the information contained in a notice to the depart-
20 ment materially changes since the submission thereof or ownership of the
21 residential real property has been transferred, the mortgagee or its
22 agent shall make an amended submission not later than ten days after it
23 learns or reasonably should have learned of the new or changed informa-
24 tion.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14298-02-6
S. 7434 2
1 3. The department shall establish and maintain a statewide electronic
2 database of the information on foreclosed residential real property
3 received pursuant to this section. The department shall grant access to
4 such database to the department of law, for purposes of enforcing the
5 provisions of section thirteen hundred seven of the real property
6 actions and proceedings law. Furthermore, municipalities in which resi-
7 dential real property, included in such database, is located, shall have
8 access to the database for those properties within the municipality, for
9 the purposes of enforcing section thirteen hundred seven of the real
10 property actions and proceedings law. The information in the database
11 shall be kept and remain confidential by the department, the department
12 of law and municipalities; provided, however, such information may be
13 disclosed by a municipality, upon written request, to a neighborhood
14 association or any other non-governmental entity authorized to enforce
15 the provisions of section thirteen hundred seven of the real property
16 actions and proceedings law.
17 4. The department shall establish and maintain either a toll-free
18 telephone hotline or an internet web address whereby persons may report
19 the existence of foreclosed residential real property that is either
20 vacant or abandoned but occupied by tenants.
21 § 2. Section 1307 of the real property actions and proceedings law is
22 amended by adding two new subdivisions 9 and 10 to read as follows:
23 9. The attorney general shall have the authority to institute a civil
24 action or proceeding to enforce the provisions of this section.
25 10. A plaintiff in a mortgage foreclosure action who obtains a judg-
26 ment of foreclosure who knowingly violates any provision of this article
27 or any rule or regulation promulgated pursuant thereto, shall be subject
28 to a fine of not less than one thousand dollars for every residential
29 real property it fails to maintain.
30 § 3. This act shall take effect on the one hundred eightieth day after
31 it shall have become a law. Provided, however, that, effective imme-
32 diately, any and all actions necessary to implement the provisions of
33 this act on its effective date are authorized and directed to be
34 completed on or before such date.
