Relates to notice to tenants in mortgage foreclosure actions; permits tenants who did not occupy the premises at the commencement of the foreclosure action to remain in occupancy for the remainder of the lease term, up to a maximum of three years.
STATE OF NEW YORK
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885
2021-2022 Regular Sessions
IN SENATE(Prefiled)
January 6, 2021
___________
Introduced by Sen. COMRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the real property actions and proceedings law, in
relation to notice to tenants in mortgage foreclosure actions
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 2 and 3 of section 1305 of the real property
2 actions and proceedings law, as added by chapter 507 of the laws of
3 2009, are amended to read as follows:
4 2. Notwithstanding any other provision of law, a tenant of a unit not
5 subject to rent control or rent stabilization shall have the right to
6 remain in occupancy of the unit of the subject residential real property
7 where he or she resides on the date of [mailing] service of the notice
8 required by subdivision three of this section for the greater of: (a) a
9 period of ninety days from the date of the [mailing] service of such
10 notice; or (b) for the remainder of the lease term if the tenant occu-
11 pied the premises at the commencement of the foreclosure action or
12 received a notice pursuant to section thirteen hundred three of this
13 article; or (c) for the remainder of the lease term, provided that the
14 lease agreement was entered into in good faith pursuant to this section
15 and federal law, up to a maximum of three years, for tenants who did not
16 occupy the premises at the commencement of the foreclosure action and
17 therefore did not receive the original notice of service required pursu-
18 ant to section thirteen hundred three of this article; provided that if
19 a successor in interest who acquires title to such residential real
20 property intends to occupy a single unit as his or her primary residence
21 and the unit is not subject to a federal or state statutory system of
22 subsidy or other federal or state statutory scheme, the successor may
23 limit for one unit only, the tenant's right of occupancy to ninety days.
24 For a lease to qualify under this subdivision, the tenant under such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07178-01-1
S. 885 2
1 lease may not be the owner of the residential real property, and such
2 lease must require the payment of rent for such unit that is not
3 substantially less than the fair market rent for the unit, unless the
4 unit is subject to federal or state statutory system of subsidy or other
5 federal or state statutory scheme. A tenant under paragraph (a) [or],
6 (b), or (c) of this subdivision shall continue such tenancy subject to
7 any limitations in this subdivision under the same terms and conditions
8 as were in effect at the time of entry of the judgment of foreclosure
9 and sale, or if no such judgment was entered, upon the terms and condi-
10 tions that were in effect at the time of the transfer of ownership of
11 such property. For purposes of this section, "fair market rent" shall
12 mean rent for a unit of residential real property of similar size,
13 location and condition.
14 3. Notwithstanding any other provision of law, and consistent with
15 subdivision two of this section, a successor in interest of residential
16 real property shall provide written notice to all tenants in the same
17 manner as required by subdivision four of section thirteen hundred three
18 of this article: (a) that they are entitled to remain in occupancy of
19 such property for the remainder of the lease term, or a period of ninety
20 days from the date of mailing of such notice, whichever is greater, on
21 the same terms and conditions as were in effect at the time of entry of
22 the judgment of foreclosure and sale, or if no such judgment was
23 entered, upon the terms and conditions as were in effect at the time of
24 transfer of ownership of such property; and (b) of the name and address
25 of the new owner. Any person or entity who or which becomes a successor
26 in interest after the issuance of the ninety-day notice provided for in
27 this subdivision, shall notify all tenants of its name and address and
28 shall assume such interest subject to the right of the tenant to main-
29 tain possession as provided in this subdivision.
30 § 2. This act shall take effect on the same date and in the same
31 manner as a chapter of the laws of 2020 amending the real property
32 actions and proceedings law relating to the definition of "tenant" for
33 purposes of mortgage foreclosures, as proposed in legislative bills
34 numbers S. 5357 and A. 6370, take effect.
