NY State Senate Bill 2011-S696

Senate Bill S696

2011-2012 Legislative Session

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to judiciary
Jan 05, 2011	referred to judiciary

2011-S696 (ACTIVE) - Details

See Assembly Version of this Bill:: A636
Current Committee:: Senate Judiciary
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1972, RPAP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S8100, A6161
2013-2014: S2264, A854
2015-2016: A157
2017-2018: A1423
2019-2020: A5617

2011-S696 (ACTIVE) - Summary

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance.

2011-S696 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S696

TITLE OF BILL:

An act
to amend the real property actions and proceedings law, in relation
to title to an abandoned
multiple dwelling in a city, town or village

SUMMARY OF PROVISIONS:

Section 1 amends subdivision 3 of section 1972 of the real property
actions and proceedings law to require a mortgagee or lienor, who
institutes proceedings to foreclose, to have a receiver appointed and
ordered to enter into an agreement with the appropriate agency to
repair and correct violations of housing maintenance laws, or
alternatively to take possession of the premises themselves and enter
into a repair agreement with the city agency to prevent the agency
from taking title to an abandoned building.

Section 2 states the effective date.

JUSTIFICATION:

The purpose of the abandoned building law (article 19-A of the real
property actions and proceedings law) is to allow the city government

to take title to buildings to ensure they are properly managed after
abandonment. An owner may block such proceedings by resuming
management and undertaking repairs. If the owner does not make
repairs, then mortgagees and lienors may stop article 19-A
proceedings by merely starting a foreclosure action. However, current
law does not require the mortgagee or lienor to follow through with
the foreclosure action or ensure that someone is appointed and
empowered to manage the building.

In order to correct this situation, this bill would require the
mortgagee or lienor to proceed with the foreclosure action and have a
receiver appointed who must reach a repair agreement with the housing
and development administration, or alternatively such mortgagee or
lienor may take formally take possession and enter into such an
agreement. This will ensure that the building will be effectively
managed and repaired.

LEGISLATIVE HISTORY:

2010 - S.8100A Ordered to Third Reading Cal. 1893
2010 - A.6161  Referred to Judiciary
2008 - A.6419  Referred to Judiciary
2006 - S.3554  Referred to Judiciary/A.5768 Referred to Judiciary
2004 - S.542   Referred to Judiciary A.6640 Referred to Judiciary
2002 - S.7002  Referred to Judiciary/A.7748 Referred to Judiciary
2000 - A.7458  Calendar
1998 - A.7764  Calendar

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:


None.

EFFECTIVE DATE:

This act shall take effect on the 120th day after it shall have become
a law and shall apply to proceedings commenced on or after such date.

2011-S696 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   696

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation to title to an abandoned multiple dwelling in a city, town or
  village

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Subdivision 3 of section 1972 of the real property actions
and proceedings law, as added by chapter 864 of the  laws  of  1973,  is
amended to read as follows:
  3.  Within  five days of the service of notice on the owner, a copy of
the certification shall be served on each mortgagee, lienor  and  lessee
of  record, personally or by registered mail to the address set forth in
the recorded instrument or, if no address appears therein, to the person
at whose request the instrument was recorded.  Such copy shall,  in  the
case  of  a  mortgagee  or  lienor,  be  accompanied  by  a  notice that
proceedings pursuant to this article may be instituted unless the  mort-
gagee  or  lienor,  within  fifteen  days  of  such  mailing, either (A)
commences proceedings to foreclose the mortgage or lien  AND  MOVES  FOR
THE  APPOINTMENT OF A RECEIVER WHICH BRINGS THE BUILDING INTO COMPLIANCE
WITH THE APPLICABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM  THE  DATE
OF  APPOINTMENT OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY AGREEMENT
WITH THE DEPARTMENT or [enters into an agreement with the department  to
bring  the building] (B) TAKES POSSESSION OF THE PREMISES AS PROVIDED IN
THE MORTGAGE AND BRINGS THE BUILDING into compliance with the applicable
provisions of law WITHIN NINETY DAYS FROM THE DATE OF TAKING  POSSESSION
OR  SUCH  LONGER  PERIOD  AS  MAY  BE  ESTABLISHED BY AGREEMENT WITH THE
DEPARTMENT.  THE DEPARTMENT MAY, NOTWITHSTANDING ANYTHING TO THE CONTRA-
RY IN THIS SUBDIVISION, INSTITUTE PROCEEDINGS PURSUANT TO  THIS  ARTICLE
IF:    (I) THE APPLICATION FOR APPOINTMENT OF A RECEIVER IS DENIED, (II)

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD03082-01-1

S. 696                              2

THE RECEIVER FAILS TO BRING THE BUILDING INTO COMPLIANCE WITH THE APPLI-
CABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE OF  APPOINTMENT
OR  SUCH  LONGER  PERIOD  AS  MAY  BE  ESTABLISHED BY AGREEMENT WITH THE
DEPARTMENT;  OR  (III)  THE  MORTGAGEE  OR LIENOR IN POSSESSION FAILS TO
BRING THE BUILDING INTO COMPLIANCE WITH THE APPLICABLE PROVISIONS OF LAW
WITHIN NINETY DAYS FROM THE DATE OF TAKING  POSSESSION  OR  SUCH  LONGER
PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT.
  S  2.    This  act  shall take effect on the one hundred twentieth day
after it shall  have  become  a  law  and  shall  apply  to  proceedings
commenced on or after such date.

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