S T A T E O F N E W Y O R K
________________________________________________________________________
6932--A
2015-2016 Regular Sessions
I N A S S E M B L Y
April 10, 2015
___________
Introduced by M. of A. WEINSTEIN, WOERNER, BRINDISI, SKARTADOS, KAMIN-
SKY, RUSSELL, MAGNARELLI, SKOUFIS, LAVINE, SOLAGES, ROBINSON, CAHILL,
BARRETT, PEOPLES-STOKES, MAYER, SANTABARBARA, HOOPER, SCHIMEL, FAHY,
WOZNIAK, TITONE -- Multi-Sponsored by -- M. of A. CERETTO, CURRAN,
GALEF, KEARNS, McDONALD, MURRAY -- (at request of the Department of
Law) -- read once and referred to the Committee on Judiciary -- recom-
mitted to the Committee on Judiciary in accordance with Assembly Rule
3, sec. 2 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT establishing the "New York state abandoned property neighborhood
relief act of 2016"; and to amend the real property actions and
proceedings law, in relation to the duty of the mortgagee or its loan
servicing agent to maintain property secured by delinquent mortgage
and in relation to special foreclosure proceedings for vacant aban-
doned property; and to amend the state finance law, in relation to
establishing the abandoned property neighborhood relief fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "New York
state abandoned property neighborhood relief act of 2016".
S 2. Section 1307 of the real property actions and proceedings law, as
added by chapter 507 of the laws of 2009, is amended to read as follows:
S 1307. Duty to maintain [foreclosed] property SECURED BY DELINQUENT
MORTGAGE. 1. [A plaintiff in a mortgage foreclosure action who obtains
a judgment of foreclosure and sale pursuant to section thirteen hundred
fifty-one of this article, involving residential real property, as
defined in section thirteen hundred five of this article, that is
vacant, or becomes vacant after the issuance of such judgment, or is
abandoned by the mortgagor but occupied by a tenant] (A) WITH RESPECT TO
A MORTGAGE LOAN SECURED BY RESIDENTIAL REAL PROPERTY, as defined under
section thirteen hundred five of this article, WHERE THE PROPERTY IS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09229-09-6
A. 6932--A 2
"VACANT AND ABANDONED" AS DEFINED IN PARAGRAPH (B) OF THIS SUBDIVISION
OR A FORECLOSURE ACTION HAS BEEN COMMENCED AGAINST THE PROPERTY BECAUSE
THE MORTGAGOR HAS FAILED TO MAINTAIN THE PROPERTY OR WHERE A JUDGMENT OF
FORECLOSURE UNDER SECTION THIRTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE HAS
BEEN OBTAINED ON THE PROPERTY THAT HAS BEEN ABANDONED BY THE MORTGAGOR
BUT REMAINS OCCUPIED BY A TENANT LAWFULLY IN POSSESSION, THE MORTGAGEE
OR ITS LOAN SERVICING AGENT shall maintain such property until such time
as ownership has been transferred through the closing of title in fore-
closure, or other disposition, and the deed for such property has been
duly recorded; provided, however, that if a municipality or governmental
entity holds a mortgage [subordinate to one or more mortgages] on the
residential real property, the municipality or governmental entity shall
not be subject to the requirements of this section.
(B) FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL BE
DEEMED "VACANT AND ABANDONED" WHEN: (I) AT LEAST THREE MONTHLY PAYMENTS
ARE PAST DUE ON THE MORTGAGE LOAN OR THE MORTGAGOR HAS INFORMED THE
MORTGAGEE OR LOAN SERVICING COMPANY IN WRITING THAT THE MORTGAGOR DOES
NOT INTEND TO OCCUPY THE PROPERTY IN THE FUTURE; AND (II) EITHER: (A)
THERE IS A REASONABLE BASIS TO BELIEVE THAT THE PROPERTY IS NOT OCCUPIED
WHICH SHALL BE DETERMINED IN ACCORDANCE WITH THE REQUIREMENTS OF PARA-
GRAPH (B-1) OF THIS SUBDIVISION; (B) SUCH RESIDENTIAL REAL PROPERTY IS A
RISK TO THE HEALTH, SAFETY OR WELFARE OF THE PUBLIC OR ANY ADJOINING OR
ADJACENT PROPERTY OWNERS, DUE TO ACTS OF VANDALISM, LOITERING, CRIMINAL
CONDUCT, OR PHYSICAL DESTRUCTION OR DETERIORATION OF THE PROPERTY; OR
(C) THE RELEVANT GOVERNMENTAL AUTHORITY HAS DECLARED THE PROPERTY UNFIT
FOR OCCUPANCY AND TO REMAIN VACANT AND UNOCCUPIED OR TO BE DEMOLISHED.
WHERE A MORTGAGEE OR LOAN SERVICING COMPANY HAS RECEIVED WRITTEN NOTICE
FROM A MORTGAGOR THAT SUCH MORTGAGOR DOES NOT INTEND TO OCCUPY SUCH
PROPERTY IN THE FUTURE, THE MORTGAGEE OR LOAN SERVICING COMPANY SHALL
PROMPTLY NOTIFY THE ATTORNEY GENERAL IN WRITING OF ITS RECEIPT OF SUCH
NOTIFICATION AND THE DATE THEREOF.
(B-1) FOR PURPOSES OF PARAGRAPH (B) OF THIS SUBDIVISION, A REASONABLE
BASIS TO BELIEVE THAT RESIDENTIAL REAL PROPERTY IS NOT OCCUPIED SHALL,
AT A MINIMUM, BE BASED UPON PERIODIC INSPECTIONS OF SUCH PROPERTY, AT
LEAST THIRTY DAYS APART, WHERE TWO OR MORE SUCH INSPECTIONS REVEAL
EVIDENCE OF ABANDONMENT. FOR PURPOSES OF THIS SUBDIVISION, "EVIDENCE OF
ABANDONMENT" SHALL INCLUDE BUT NOT BE LIMITED TO ANY OF THE FOLLOWING
CONDITIONS: (I) OVERGROWN OR DEAD VEGETATION; (II) ACCUMULATION OF NEWS-
PAPERS, CIRCULARS, FLYERS OR MAIL; (III) PAST DUE UTILITY NOTICES,
DISCONNECTED UTILITIES, OR UTILITIES NOT IN USE; (IV) ACCUMULATION OF
TRASH REFUSE OR OTHER DEBRIS; (V) ABSENCE OF WINDOW COVERINGS SUCH AS
CURTAINS, BLINDS, OR SHUTTERS; (VI) ONE OR MORE BOARDED, MISSING OR
BROKEN WINDOWS; (VII) THE PROPERTY IS OPEN TO CASUAL ENTRY OR TRESPASS;
OR (VIII) THE PROPERTY HAS A BUILDING OR STRUCTURE THAT IS OR APPEARS
STRUCTURALLY UNSOUND OR HAS ANY OTHER CONDITION THAT PRESENTS A POTEN-
TIAL HAZARD OR DANGER TO THE SAFETY OF PERSONS.
(B-2) FOR PURPOSES OF DETERMINING WHETHER RESIDENTIAL REAL PROPERTY IS
OCCUPIED, THE MORTGAGEE OR LOAN SERVICING COMPANY SHALL CONDUCT OR CAUSE
TO BE CONDUCTED PERIODIC INSPECTIONS OF SUCH PROPERTY AT LEAST ONCE
EVERY THIRTY DAYS COMMENCING NO LATER THAN SEVEN DAYS AFTER THE DATE
UPON WHICH TWO MORTGAGE PAYMENTS ON SUCH PROPERTY ARE PAST DUE, OR SOON-
ER IF SO REQUIRED BY FEDERAL STATUTE, RULE, REGULATION, PUBLISHED GUID-
ANCE, OR OTHER REQUIREMENTS OF THE FEDERAL NATIONAL MORTGAGE ASSOCI-
ATION, FEDERAL HOME LOAN MORTGAGE CORPORATION OR FEDERAL HOUSING FINANCE
AGENCY.
A. 6932--A 3
(B-3) FOR PURPOSES OF PARAGRAPH (B) OF THIS SUBDIVISION, RESIDENTIAL
REAL PROPERTY SHALL NOT BE DEEMED "VACANT AND ABANDONED" WHERE SUCH
PROPERTY IS: (I) AN UNOCCUPIED BUILDING WHICH IS UNDERGOING
CONSTRUCTION, RENOVATION OR REHABILITATION THAT IS PROCEEDING TO
COMPLETION, AND THE BUILDING IS IN COMPLIANCE WITH ALL APPLICABLE ORDI-
NANCES, CODES, REGULATIONS AND STATUTES; (II) A BUILDING OCCUPIED ON A
SEASONAL BASIS THAT IS OTHERWISE SECURE; (III) A BUILDING THAT IS
SECURE, BUT IS THE SUBJECT OF A PROBATE ACTION, ACTION TO QUIET TITLE,
OR OTHER SIMILAR OWNERSHIP DISPUTE; (IV) A BUILDING DAMAGED BY A NATURAL
DISASTER AND ONE OR MORE OWNER INTENDS TO REPAIR AND REOCCUPY THE PROP-
ERTY; OR (V) OCCUPIED BY THE MORTGAGOR, A RELATIVE OF THE MORTGAGOR OR A
TENANT LAWFULLY IN POSSESSION.
2. Such [plaintiff] MORTGAGEE AND/OR ITS LOAN SERVICING AGENT shall
have the right to peaceably enter upon such property DETERMINED TO BE
VACANT AND ABANDONED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, or to
cause others to peaceably enter upon the property for the limited
purpose of inspections, repairs and maintenance as required by this
section, or as otherwise ordered by court; provided, however, that if
the property is occupied by a tenant LAWFULLY IN POSSESSION, at least
seven days notice must be given to such tenant, unless emergency repairs
are required in which case reasonable notice shall be provided to the
tenant.
2-A. (A) IT SHALL BE UNLAWFUL FOR A MORTGAGEE, ITS SERVICER OR A THIRD
PARTY AGENT OR OTHER PERSON ACTING ON BEHALF OF A MORTGAGEE TO ENTER
RESIDENTIAL REAL PROPERTY THAT IS NOT VACANT AND ABANDONED FOR THE
PURPOSE OF FORCING, INTIMIDATING, HARASSING OR COERCING A LAWFUL OCCU-
PANT OF SUCH RESIDENTIAL PROPERTY TO VACATE THAT PROPERTY IN ORDER TO
RENDER THE PROPERTY VACANT AND ABANDONED, OR TO OTHERWISE FORCE, INTIM-
IDATE, HARASS, OR COERCE A LAWFUL OCCUPANT OF RESIDENTIAL REAL PROPERTY
TO VACATE THAT PROPERTY SO THAT IT MAY BE CONSIDERED AS VACANT AND ABAN-
DONED.
(B) LIABILITY FOR SUCH UNLAWFUL CONDUCT SHALL EXTEND TO ANY MORTGAGEE
FOR WHOSE BENEFIT THE ACTIONS WERE INITIATED, IN ADDITION TO ANY AGENT,
EMPLOYEE OR SUBCONTRACTOR OF THE MORTGAGEE WHO RETAINED, HIRED OR OTHER-
WISE ENLISTED THE PERPETRATOR.
(C) A HOMEOWNER AND/OR OCCUPANT WHO HAS BEEN SUBJECTED TO SUCH UNLAW-
FUL CONDUCT MAY BRING AN ACTION FOR DAMAGES AND INJUNCTIVE RELIEF WHICH
MAY BE RAISED AS A COUNTERCLAIM IN A FORECLOSURE OR EVICTION PROCEEDING,
OR IN ANY OTHER ACTION OR PROCEEDING BROUGHT TO REGAIN POSSESSION OF, OR
QUIET TITLE TO, RESIDENTIAL REAL PROPERTY, OR MAY BE RAISED AS AN AFFIR-
MATIVE ACTION IN ANY COURT OF COMPETENT JURISDICTION.
(D) PUNITIVE DAMAGES, COSTS AND/OR ATTORNEY FEES, MAY BE AWARDED WHEN
THE CONDUCT COMPLAINED OF HAS BEEN CARRIED OUT WITH KNOWING DISREGARD OF
THE RIGHTS OF THE OCCUPANT OR WAS PART OF A PATTERN OF CONDUCT INTENDED
TO SECURE THE VACATING OF PROPERTIES SO THAT THOSE PROPERTIES WOULD BE
CONSIDERED AS VACANT AND ABANDONED FOR PURPOSES OF THIS SECTION.
3. [The] IN ADDITION TO THE AUTHORITY GRANTED TO THE ATTORNEY GENERAL
PURSUANT TO SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SEVEN-A OF
THIS ARTICLE, THE municipality in which such residential real property
is located, any tenant lawfully in possession, and a board of managers
of a condominium in which the premises are located or a homeowners asso-
ciation if said premises are subject to the rules and regulations of
such an association, shall have the right to enforce the obligations
described in this section in any court of competent jurisdiction after
at least seven days notice to the [plaintiff in the foreclosure action]
MORTGAGEE OR ITS LOAN SERVICING AGENT unless emergency repairs are
A. 6932--A 4
required. Any entity acting pursuant to this subdivision shall have a
cause of action in any court of competent jurisdiction against the
[plaintiff in the foreclosure action] MORTGAGEE OR ITS LOAN SERVICING
AGENT to recover costs incurred as a result of maintaining the property.
SUCH ENTITY SHALL PROVIDE THE ATTORNEY GENERAL WITH WRITTEN NOTICE AT
LEAST TEN DAYS PRIOR TO BRINGING AN ACTION PURSUANT TO THIS SUBDIVISION;
PROVIDED, HOWEVER, THAT FAILURE TO COMPLY WITH THIS NOTICE REQUIREMENT
SHALL NOT BE A DEFENSE TO THE ENTITY'S PROCEEDING. The authority
provided by this subdivision shall be in addition to, and shall not be
deemed to diminish or reduce, any rights of the parties described in
this section under existing law against the mortgagor of such property
for failure to maintain such property.
4. In the event the mortgagor of the property commences a proceeding
in bankruptcy court prior to the completion of the public auction
ordered in the judgment of sale, the duties created by this section
shall be suspended during the pendency of the bankruptcy proceeding or
until such time as an order has been entered in that proceeding lifting
or removing the automatic stay of the foreclosure sale.
5. For the purposes of this section "maintain" shall mean keeping the
subject property in a manner that is consistent with the standards set
forth in the New York property maintenance code chapter 3 sections 301,
302 (excluding 302.2, 302.6 and 302.8), 304.1, 304.3, 304.7, 304.10,
304.12, 304.13, 304.15, 304.16, 307.1, and 308.1; provided, however,
that if the property is occupied by a tenant, then such property must
also be maintained in a safe and habitable condition.
6. A [plaintiff] MORTGAGEE OR ITS LOAN SERVICING AGENT shall be
relieved of its responsibilities [to maintain the residential real prop-
erty that is the subject of a foreclosure action] UNDER PARAGRAPH (A) OF
SUBDIVISION ONE OF THIS SECTION for the period that a receiver of such
property is serving.
7. Nothing contained in this section shall diminish in any way the
obligations pursuant to any state or local law of the mortgagor of the
property or a receiver of rents and profits appointed in an action to
foreclose a mortgage to maintain the property prior to the closing of
title pursuant to a foreclosure sale.
8. This section shall not preempt, reduce or limit any rights or obli-
gations imposed by any local laws with respect to property maintenance
and the locality's ability to enforce those laws.
S 3. The real property actions and proceedings law is amended by
adding a new section 1307-a to read as follows:
S 1307-A. DELINQUENT MORTGAGE; VACANT AND ABANDONED PROPERTY; STATE-
WIDE VACANT AND ABANDONED PROPERTY ELECTRONIC REGISTRY. 1. WHERE A
MORTGAGOR IS THREE MONTHLY PAYMENTS PAST DUE ON A MORTGAGE LOAN SECURED
BY RESIDENTIAL REAL PROPERTY, THE MORTGAGEE OR ITS LOAN SERVICING AGENT
SHALL PROVIDE WRITTEN NOTICE TO THE MORTGAGOR STATING THAT THE MORTGAGOR
HAS THE RIGHT TO OCCUPY THE PROPERTY UNTIL HE OR SHE IS ORDERED TO LEAVE
THE PROPERTY BY A COURT OF COMPETENT JURISDICTION. SUCH NOTICE SHALL BE
PROVIDED TO THE MORTGAGOR WITHIN FIFTEEN DAYS OF THE DATE THAT THE HOME-
OWNER'S ACCOUNT IS PAST DUE BY NINETY DAYS, AND A COPY OF SUCH NOTICE
SHALL PROMPTLY BE PROVIDED BY SUCH MORTGAGEE OR LOAN SERVICING AGENT TO
THE ATTORNEY GENERAL. THE NOTICE SHALL BE IN FOURTEEN-POINT FONT AND
SHALL INCLUDE THE FOLLOWING LANGUAGE IN A CLEAR AND CONSPICUOUS FORMAT:
"AS YOUR LOAN SERVICER OR MORTGAGE HOLDER, WE ARE REQUIRED TO SEND YOU
THIS NOTICE PURSUANT TO NEW YORK STATE LAW.
A. 6932--A 5
AS THE OWNER OF YOUR HOME, YOU HAVE THE RIGHT TO OCCUPY YOUR HOME
UNTIL SUCH TIME AS YOU ARE ORDERED TO LEAVE BY A COURT OF COMPETENT
JURISDICTION.
WE MAY INITIATE COLLECTION ACTIVITY INCLUDING TAKING STEPS TO COMMENCE
AND LITIGATE A FORECLOSURE LAWSUIT AGAINST YOU AND THE PROPERTY.
YOU ARE ALLOWED BY NEW YORK STATE LAW TO CONTINUE LIVING IN YOUR HOME
REGARDLESS OF ANY COLLECTION METHODS WE PURSUE OR ORAL OR WRITTEN STATE-
MENTS MADE DURING THE COLLECTIONS PROCESS, INCLUDING THE FORECLOSURE
PROCESS, UNTIL SUCH TIME AS YOU ARE ORDERED BY A COURT TO LEAVE YOUR
PROPERTY."
2. (A) THE ATTORNEY GENERAL SHALL MAINTAIN A STATEWIDE VACANT AND
ABANDONED PROPERTY REGISTRY IN THE FORM OF AN ELECTRONIC DATABASE. THE
ATTORNEY GENERAL MAY, IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF
THE STATE FINANCE LAW, RETAIN A PRIVATE CONTRACTOR TO ADMINISTER SUCH
DATABASE FOR THE PURPOSES OF SATISFYING THIS REQUIREMENT, AND SHALL,
UPON WRITTEN REQUEST, PROVIDE APPROPRIATE OFFICIALS OF ANY COUNTY, CITY,
TOWN OR VILLAGE WITH DIRECT ELECTRONIC ACCESS TO INFORMATION MAINTAINED
ON SUCH DATABASE FOR THE PURPOSE OF ENFORCING THIS SECTION, SECTION
THIRTEEN HUNDRED SEVEN OF THIS ARTICLE OR ARTICLE NINETEEN-A OF THIS
CHAPTER, OR ANY OTHER RELATED LAW, CODE, RULE, REGULATION OR ORDINANCE.
(B) A MORTGAGEE OR ITS AGENT SHALL SUBMIT TO THE ATTORNEY GENERAL
INFORMATION REQUIRED BY THE ATTORNEY GENERAL ABOUT ANY VACANT AND ABAN-
DONED RESIDENTIAL REAL PROPERTY, AS THAT TERM IS DEFINED IN PARAGRAPH
(B) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTI-
CLE, WITHIN FIFTEEN DAYS OF WHEN THE MORTGAGEE OR ITS AGENTS LEARN, OR
REASONABLY SHOULD HAVE LEARNED, THAT SUCH PROPERTY IS VACANT AND ABAN-
DONED. SUCH INFORMATION SHALL, AT A MINIMUM, INCLUDE: (I) THE CURRENT
NAME, ADDRESS AND CONTACT INFORMATION FOR THE LENDER OR SERVICER RESPON-
SIBLE FOR MAINTAINING THE VACANT PROPERTY; (II) WHETHER A FORECLOSURE
ACTION HAS BEEN FILED FOR THE PROPERTY IN QUESTION, AND, IF SO, THE DATE
ON WHICH THE FORECLOSURE ACTION WAS COMMENCED; AND (III) THE LAST KNOWN
ADDRESS AND CONTACT INFORMATION FOR THE MORTGAGEE OF RECORD.
(C) WHERE ANY OF THE INFORMATION CONTAINED IN A MORTGAGEE'S OR ITS
AGENT'S INITIAL SUBMISSION TO THE REGISTRY HAS MATERIALLY CHANGED SINCE
SUCH SUBMISSION, SUCH MORTGAGEE OR AGENT SHALL MAKE AN AMENDED
SUBMISSION TO THE REGISTRY NOT LATER THAN THIRTY DAYS AFTER THE MORTGA-
GEE OR ITS AGENTS LEARN, OR REASONABLY SHOULD HAVE LEARNED, OF THE NEW
OR CHANGED INFORMATION.
(D) THE ATTORNEY GENERAL IS AUTHORIZED AND EMPOWERED TO ADOPT SUCH
RULES AND REGULATIONS AS MAY IN THE JUDGMENT OF THE ATTORNEY GENERAL BE
NECESSARY FOR THE EFFECTIVE ADMINISTRATION AND OPERATION OF SUCH REGIS-
TRY, INCLUDING BUT NOT LIMITED TO RULES AND REGULATIONS GOVERNING ACCESS
TO THE REGISTRY AND SPECIFYING THE MANNER AND FREQUENCY OF REGISTRATION
AND THE INFORMATION THAT MUST BE PROVIDED. THE ATTORNEY GENERAL MAY
AMEND SUCH REGULATIONS FROM TIME TO TIME AS NECESSARY TO EFFECTUATE THE
PURPOSE OF THIS SECTION AND SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTI-
CLE.
(D-1) THE ATTORNEY GENERAL SHALL TAKE SUCH MEASURES AS HE OR SHE DEEMS
APPROPRIATE TO ENSURE THAT THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OR
THE FEDERAL HOME LOAN MORTGAGE ASSOCIATION, AS APPLICABLE, IS PROMPTLY
NOTIFIED IN WRITING, WHICH MAY INCLUDE NOTIFICATION BY EMAIL OR OTHER
ELECTRONIC MEANS, WHEN RESIDENTIAL REAL PROPERTY WITH RESPECT TO WHICH
EITHER SUCH ASSOCIATION IS THE MORTGAGEE, SERVICER OR INSURER, IS ADDED
TO THE REGISTRY.
(E) THE ATTORNEY GENERAL SHALL ESTABLISH AND MAINTAIN A TOLL-FREE
HOTLINE THAT NEIGHBORS OF REAL PROPERTY THAT IS, OR APPEARS TO BE,
A. 6932--A 6
VACANT AND ABANDONED RESIDENTIAL REAL PROPERTY, AS SUCH TERM IS DEFINED
IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF
THIS ARTICLE, AND OTHER COMMUNITY RESIDENTS CAN USE TO REPORT TO THE
ATTORNEY GENERAL ANY HAZARDS, BLIGHT OR OTHER CONCERNS RELATED TO SUCH
PROPERTY AND TO OBTAIN PUBLICLY AVAILABLE INFORMATION CONCERNING THE
STATUS OF SUCH PROPERTY. SUCH PUBLICLY AVAILABLE INFORMATION SHALL
INCLUDE BUT NOT BE LIMITED TO WHETHER SUCH PROPERTY IS CURRENTLY LISTED
ON THE STATEWIDE VACANT AND ABANDONED PROPERTY REGISTRY ESTABLISHED
PURSUANT TO THIS SUBDIVISION, AND THE IDENTITY OF THE MORTGAGEE OR LOAN
SERVICING COMPANY RESPONSIBLE FOR MAINTAINING SUCH VACANT AND ABANDONED
PROPERTY PURSUANT TO SUBDIVISION ONE OF THIS SECTION. THE OFFICE OF THE
ATTORNEY GENERAL SHALL INCLUDE ON ITS OFFICIAL PUBLIC WEBSITE INFORMA-
TION ABOUT SUCH TOLL-FREE HOTLINE.
3. (A) WHENEVER A MORTGAGEE OR AGENT OF A MORTGAGEE SHALL VIOLATE THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE, AN APPLICA-
TION MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
THE STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A
SPECIAL PROCEEDING TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE
DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE CONTIN-
UANCE OF SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF
THE COURT OR JUSTICE THAT THE DEFENDANT HAS, IN FACT, VIOLATED THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE, AN INJUNCTION
MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY
FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY PERSON HAS, IN FACT,
BEEN INJURED OR DAMAGED THEREBY. IN CONNECTION WITH ANY SUCH PROPOSED
APPLICATION, THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A
DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE
WITH THE CIVIL PRACTICE LAW AND RULES.
(B) IN ADDITION TO, OR IN LIEU OF, THE RELIEF AUTHORIZED IN PARAGRAPHS
(A) AND (C) OF THIS SUBDIVISION, A MUNICIPALITY WHERE THE RESIDENTIAL
REAL PROPERTY IS LOCATED MAY INTERVENE AS A MATTER OF RIGHT IN ANY FORE-
CLOSURE ACTION COMMENCED UNDER THIS ARTICLE FOR THE PURPOSES OF REQUEST-
ING INJUNCTIVE RELIEF TO ASSURE THAT THE PROPERTY IN QUESTION IS MAIN-
TAINED IN ACCORDANCE WITH ALL ORDINANCES, CODES, REGULATIONS AND
STATUTES AND THAT THE FORECLOSURE ACTION IS TIMELY PROSECUTED. THE
INTERVENOR MAY MOVE TO HAVE ANY ADJOURNMENTS OR VOLUNTARY DISCONTIN-
UANCES IN SUCH FORECLOSURE ACTION CONDITIONED UPON THE POSTING OF A BOND
OR OTHER UNDERTAKING OR TO ORDER OTHER MEASURES INTENDED TO ENSURE ONGO-
ING MAINTENANCE OF THE PROPERTY UNTIL SUCH TIME AS TITLE TO THE PROPERTY
HAS BEEN TRANSFERRED THROUGH A FORECLOSURE SALE OR OTHERWISE. INTER-
VENTION IN A FORECLOSURE ACTION PURSUANT TO THIS PARAGRAPH SHALL BE
AVAILABLE WITH RESPECT TO ANY RESIDENTIAL PROPERTY SECURED BY A MORTGAGE
LOAN AS DEFINED UNDER SECTION THIRTEEN HUNDRED FIVE OF THIS ARTICLE,
REGARDLESS OF WHETHER THE PROPERTY IS OCCUPIED, SO LONG AS ONE OF THE
OTHER CONDITIONS DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION ONE OF
SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE IS PRESENT.
(C) WHENEVER THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS
SECTION OR SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE BY A MORTGAGEE
OR AGENT OF A MORTGAGEE HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL
PENALTY OF UP TO ONE THOUSAND DOLLARS PER DAY FOR EACH DAY THE VIOLATION
PERSISTED IN ADDITION TO THE COSTS OF MAINTAINING THE PROPERTY. NOTWITH-
STANDING ANY PROVISION OF LAW TO THE CONTRARY, ALL CIVIL PENALTIES
COLLECTED BY THE ATTORNEY GENERAL PURSUANT TO THIS PARAGRAPH SHALL BE
DEPOSITED TO THE CREDIT OF THE ABANDONED PROPERTY NEIGHBORHOOD RELIEF
FUND ESTABLISHED PURSUANT TO SECTION NINETY-ONE-G OF THE STATE FINANCE
LAW.
A. 6932--A 7
(D) THE PROVISIONS OF THIS SECTION MAY ALSO BE ENFORCED BY ANY LOCALI-
TY OR MUNICIPALITY IN WHICH THE VACANT PROPERTY IS LOCATED, PROVIDED
THAT THE LOCALITY OR MUNICIPALITY PROVIDES THE ATTORNEY GENERAL WITH
WRITTEN NOTICE AT LEAST TEN DAYS PRIOR TO COMMENCING SUCH AN ACTION
UNDER THIS SECTION; AND PROVIDED FURTHER THAT FAILURE TO COMPLY WITH
THIS NOTICE REQUIREMENT SHALL NOT BE A DEFENSE TO THE LOCALITY'S OR
MUNICIPALITY'S PROCEEDING. ANY CIVIL PENALTY IMPOSED PURSUANT TO PARA-
GRAPH (C) OF THIS SUBDIVISION IN AN ACTION BROUGHT BY A MUNICIPALITY
PURSUANT TO THIS PARAGRAPH SHALL BE RETAINED BY SUCH MUNICIPALITY.
4. THIS SECTION SHALL NOT PREEMPT, REDUCE OR LIMIT ANY RIGHTS OR OBLI-
GATIONS IMPOSED BY ANY LOCAL LAW WITH RESPECT TO PROPERTY MAINTENANCE
AND THE LOCALITY'S ABILITY TO ENFORCE THOSE LAWS.
S 4. A part of the supreme court shall be devoted to foreclosure
actions involving property alleged to be vacant and abandoned.
S 5. The real property actions and proceedings law is amended by
adding a new section 1308 to read as follows:
S 1308. SPECIAL FORECLOSURE PROCEEDING FOR VACANT AND ABANDONED RESI-
DENTIAL REAL PROPERTY. 1. IN ANY FORECLOSURE ACTION INVOLVING RESIDEN-
TIAL REAL PROPERTY, AS DEFINED IN SECTION THIRTEEN HUNDRED FIVE OF THIS
ARTICLE, ALLEGED TO BE VACANT AND ABANDONED, THE PLAINTIFF MAY MAKE AN
APPLICATION FOR AN ORDER TO SHOW CAUSE UPON NOTICE WHICH SEEKS ENTRY OF
JUDGMENT OF FORECLOSURE AND SALE ON THE GROUNDS THAT SUCH PROPERTY IS
VACANT AND ABANDONED. ANY SUCH APPLICATION SHALL BE MADE VIA ORDER TO
SHOW CAUSE, WHEREIN THE COURT SHALL DIRECT SERVICE CONSISTENT WITH
SECTION THREE HUNDRED EIGHT OF THE CIVIL PRACTICE LAW AND RULES. NO SUCH
APPLICATION SHALL BE DIRECTED TO BE SERVED UPON DEFENDANT UNTIL THE TIME
TO ANSWER THE COMPLAINT IN SUCH ACTION SHALL HAVE EXPIRED, NOR SHALL ANY
SUCH APPLICATION BE GRANTED UNTIL AFTER THE MANDATORY SETTLEMENT CONFER-
ENCE PURSUANT TO RULE THREE THOUSAND FOUR HUNDRED EIGHT OF THE CIVIL
PRACTICE LAW AND RULES HAS BEEN NOTICED TO ANY SUCH DEFENDANT, AND AFTER
ALL SUCH DEFENDANTS HAVE FAILED TO APPEAR FOR SAID CONFERENCE. SUCH
APPLICATION SHALL:
(A) STATE ON THE FACE OF THE ORDER TO SHOW CAUSE THAT "THIS ORDER TO
SHOW CAUSE SEEKS ENTRY OF A JUDGMENT OF FORECLOSURE AND SALE PURSUANT TO
REAL PROPERTY ACTIONS AND PROCEEDINGS LAW S 1308 ON THE GROUND THAT THE
MORTGAGED PREMISES ARE VACANT AND ABANDONED";
(B) SET FORTH THE ALLEGATIONS EVIDENCING VACANT AND ABANDONED RESIDEN-
TIAL PROPERTY AS PROVIDED FOR UNDER SUBDIVISION FOUR OF THIS SECTION AND
ATTACH DOCUMENTARY EVIDENCE IN SUPPORT;
(C) STATE WITHIN THE AFFIDAVIT OR AFFIRMATION SUPPORTING THE APPLICA-
TION THE SUMS ALLEGED TO BE DUE AND OWING UPON THE SUBJECT MORTGAGE
DOCUMENTS AND ATTACH DOCUMENTARY EVIDENCE IN SUPPORT, INCLUDING BUT NOT
LIMITED TO PROOF OF OWNERSHIP OF THE MORTGAGE AND THE NOTE; AND
(D) STATE WITHIN THE AFFIDAVIT OR AFFIRMATION SUPPORTING THE APPLICA-
TION THAT AN IMMEDIATE ORDER OF REFERENCE IS SOUGHT FOR THE APPOINTMENT
OF A REFEREE TO COMPUTE PURSUANT TO THIS CHAPTER.
2. THE CHIEF ADMINISTRATIVE JUDGE OF THE COURTS SHALL ADOPT SUCH RULES
AS HE OR SHE DEEMS NECESSARY TO EXPEDITIOUSLY IMPLEMENT THE PROVISIONS
OF THIS SUBDIVISION.
3. THE COURT SHALL TAKE THE EVIDENCE SUPPORTING THE FACTS AND CIRCUM-
STANCES STATED IN THE ORDER TO SHOW CAUSE AND SHALL EXAMINE THE PLAIN-
TIFF OR HIS OR HER AGENT, AT AN EVIDENTIARY HEARING UNDER OATH, AS TO
THE EVIDENCE PRESENTED WITH RESPECT TO VACANT AND ABANDONED PROPERTY,
AND SHALL MAKE A WRITTEN FINDING WHETHER THE PROPERTY TO BE FORECLOSED
UPON PURSUANT TO THIS SECTION MEETS THE DEFINITION OF VACANT AND ABAN-
DONED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION AND SHALL SET FORTH
A. 6932--A 8
WITH SPECIFICITY THE FACTORS MET UNDER SUCH SECTION. EVIDENCE TO BE
SUBMITTED TO THE COURT SHALL INCLUDE UTILITY COMPANY RECORDS EVIDENCING
THE ABANDONED STATUS OF THE PREMISES. WRITTEN FINDINGS SHALL INCLUDE
EVIDENCE THAT THE PLAINTIFF IS THE OWNER AND HOLDER OF THE SUBJECT MORT-
GAGE AND NOTE, OR HAS BEEN DELEGATED THE AUTHORITY TO INSTITUTE A MORT-
GAGE FORECLOSURE ACTION BY THE OWNER OF SAME.
4. (A) AS USED IN THIS SECTION, "VACANT AND ABANDONED" RESIDENTIAL
REAL PROPERTY MEANS RESIDENTIAL REAL PROPERTY, AS DEFINED IN SECTION
THIRTEEN HUNDRED FIVE OF THIS ARTICLE, WITH RESPECT TO WHICH THE MORTGA-
GEE PROVES TO THE SATISFACTION OF THE COURT THAT THE MORTGAGED PROPERTY
IS NOT OCCUPIED BY A MORTGAGOR OR TENANT AS DEFINED IN SECTION THIRTEEN
HUNDRED FIVE OF THIS ARTICLE, AND:
(1) THE PROPERTY IS A RISK TO THE HEALTH, SAFETY, OR WELFARE OF THE
PUBLIC, OR ANY ADJOINING OR ADJACENT PROPERTY OWNERS, DUE TO ACTS OF
VANDALISM, LOITERING, CRIMINAL CONDUCT, OR PHYSICAL DESTRUCTION OR DETE-
RIORATION OF THE PROPERTY; OR
(2) THE RELEVANT GOVERNMENTAL AUTHORITY HAS DECLARED THE PROPERTY
UNFIT FOR OCCUPANCY AND TO REMAIN VACANT AND UNOCCUPIED OR TO BE DEMOL-
ISHED.
(B) FOR PURPOSES OF THIS SECTION, RESIDENTIAL REAL PROPERTY SHALL NOT
BE CONSIDERED "VACANT AND ABANDONED" IF THE PROPERTY IS A BUILDING
DESCRIBED IN SUBPARAGRAPH (I), (II), (III) OR (IV) OF PARAGRAPH (B-3) OF
SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE, OR IS
OCCUPIED AS DESCRIBED IN SUBPARAGRAPH (V) OF SUCH PARAGRAPH.
5. (A) A JUDGMENT OF FORECLOSURE AND SALE SHALL NOT BE ENTERED PURSU-
ANT TO THIS SECTION IF THE MORTGAGOR OR ANY OTHER DEFENDANT HAS FILED AN
ANSWER, APPEARANCE OR OTHER WRITTEN OBJECTION THAT IS NOT WITHDRAWN.
(B) THE COURT'S DENIAL OF A JUDGMENT OF FORECLOSURE AND SALE PURSUANT
TO THIS SECTION WHERE THE COURT DOES NOT FIND THAT THE MORTGAGED PROPER-
TY IS VACANT AND ABANDONED SHALL NOT BE ON THE MERITS.
(C) THE PROVISIONS OF THIS SECTION SHALL NOT PREEMPT, REDUCE OR LIMIT
ANY RIGHTS OR OBLIGATIONS IMPOSED BY ANY LOCAL LAWS WITH RESPECT TO
PROPERTY MAINTENANCE OR A LOCALITY'S ABILITY TO ENFORCE SUCH LAWS.
(D) THE PROVISIONS OF THIS SECTION SHALL NOT ABROGATE ANY RIGHTS OR
DUTIES PURSUANT TO THIS ARTICLE.
S 6. The state finance law is amended by adding a new section 91-g to
read as follows:
S 91-G. ABANDONED PROPERTY NEIGHBORHOOD RELIEF FUND; ENFORCEMENT
ASSISTANCE GRANTS. 1. THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE
STATE COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE "ABANDONED PROPERTY
NEIGHBORHOOD RELIEF FUND."
2. SUCH FUND SHALL CONSIST OF ALL CIVIL PENALTIES COLLECTED BY THE
ATTORNEY GENERAL PURSUANT TO PARAGRAPH (C) OF SUBDIVISION THREE OF
SECTION THIRTEEN HUNDRED SEVEN-A OF THE REAL PROPERTY ACTIONS AND
PROCEEDINGS LAW AND REQUIRED TO BE DEPOSITED INTO THIS FUND, AND ALL
OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR
SOURCE PURSUANT TO LAW. ANY INCOME EARNED ON MONEYS WITHIN THE ABANDONED
PROPERTY NEIGHBORHOOD RELIEF FUND SHALL BE ADDED TO AND MADE AVAILABLE
FOR THE PURPOSE OF SUCH FUND.
3. MONIES OF THE FUND SHALL BE ALLOCATED TO AND EXPENDED BY THE ATTOR-
NEY GENERAL, ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER, ONLY FOR
THE PURPOSE OF PROVIDING ABANDONED PROPERTY ENFORCEMENT ASSISTANCE
GRANTS TO LOCALITIES IN ACCORDANCE WITH SUBDIVISIONS FOUR, FIVE AND SIX
OF THIS SECTION.
4. THE CHIEF ELECTED OFFICIAL OF A COUNTY, CITY, TOWN OR VILLAGE
LOCATED WITHIN THE STATE MAY, ON AN ANNUAL BASIS, SUBMIT A WRITTEN
A. 6932--A 9
APPLICATION TO THE ATTORNEY GENERAL, OR HIS OR HER AUTHORIZED DESIGNEE,
FOR AN ABANDONED PROPERTY ENFORCEMENT ASSISTANCE GRANT FROM AVAILABLE
MONEYS IN THE ABANDONED PROPERTY NEIGHBORHOOD RELIEF FUND ESTABLISHED
PURSUANT TO SUBDIVISION ONE OF THIS SECTION. THE ATTORNEY GENERAL SHALL
REQUIRE THAT APPLICATIONS SUBMITTED PURSUANT TO THIS SUBDIVISION PROVIDE
SUCH INFORMATION AS THE ATTORNEY GENERAL DEEMS APPROPRIATE, INCLUDING,
AT A MINIMUM, THE FOLLOWING:
(A) THE AMOUNT OF FUNDING SOUGHT;
(B) A DETAILED DESCRIPTION OF THE IMPACT THAT THE PRESENCE OF VACANT
AND ABANDONED RESIDENTIAL REAL PROPERTIES IN THE REQUESTING LOCALITY HAS
HAD ON ITS AFFECTED COMMUNITIES, THE LOCALITY'S EFFORTS TO ADDRESS THE
PROBLEM TO DATE AND THE RESULT OF THOSE EFFORTS;
(C) A DETAILED DESCRIPTION OF THE ENFORCEMENT PURPOSE OR PURPOSES TO
WHICH THE FUNDING WILL BE APPLIED, WITH SPECIFIC REFERENCE TO THE
PROVISION OR PROVISIONS OF SECTIONS THIRTEEN HUNDRED SEVEN AND THIRTEEN
HUNDRED SEVEN-A OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW SOUGHT
TO BE ENFORCED; AND
(D) THE DATE AND RESULT OF ANY PRIOR APPLICATIONS MADE BY THE LOCALITY
TO THE ATTORNEY GENERAL PURSUANT TO THIS SECTION.
5. IN DETERMINING WHETHER TO APPROVE AN APPLICATION SUBMITTED PURSUANT
TO SUBDIVISION FOUR OF THIS SECTION, THE ATTORNEY GENERAL SHALL, AT A
MINIMUM, CONSIDER:
(A) THE EXTENT TO WHICH THE PRESENCE OF VACANT AND ABANDONED RESIDEN-
TIAL PROPERTIES IN THE REQUESTING LOCALITY HAS NEGATIVELY IMPACTED THE
COMMUNITIES WHERE THOSE PROPERTIES ARE LOCATED AND THE LOCALITY AS A
WHOLE;
(B) THE LIKELY IMPACT APPROVAL OF THE APPLICATION AND DISBURSEMENT OF
FUNDS WOULD HAVE ON ADDRESSING THE PROBLEM OF VACANT AND ABANDONED RESI-
DENTIAL PROPERTIES IN THE REQUESTING LOCALITY THROUGH ENHANCED ENFORCE-
MENT OF SECTIONS THIRTEEN HUNDRED SEVEN AND THIRTEEN HUNDRED SEVEN-A OF
THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW;
(C) THE AVAILABILITY OF OTHER SOURCES OF FUNDING TO PAY SOME OR ALL OF
THE ENFORCEMENT COSTS FOR WHICH THE REQUESTING LOCALITY SEEKS FUNDING;
AND
(D) WHERE THE REQUESTING LOCALITY PREVIOUSLY APPLIED FOR AND RECEIVED
AN ENFORCEMENT ASSISTANCE GRANT PURSUANT TO THIS SECTION, WHETHER THE
GRANT FUNDS WERE USED BY THE LOCALITY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION AND ANY APPLICABLE RULES OR REGULATIONS ADOPTED BY THE
ATTORNEY GENERAL.
6. UPON APPROVAL OF AN APPLICATION, THE ATTORNEY GENERAL MAY AUTHORIZE
DISBURSEMENT OF FUNDS IN ANY AMOUNT UP TO THE AMOUNT SOUGHT BY THE
REQUESTING LOCALITY. SUCH DISBURSEMENT MAY BE BY ADVANCE PAYMENT TO THE
LOCALITY BEFORE IT INCURS THE COST FOR WHICH ITS APPLICATION SOUGHT
FUNDING, BY REIMBURSEMENT TO THE LOCALITY AFTER IT INCURS AND PAYS SUCH
COSTS IN THE FIRST INSTANCE, OR BY SOME COMBINATION THEREOF, AS THE
ATTORNEY GENERAL DETERMINES IS APPROPRIATE UNDER THE CIRCUMSTANCES. ANY
AND ALL ENFORCEMENT ASSISTANCE GRANT MONEYS DISBURSED PURSUANT TO THIS
SECTION SHALL BE USED BY THE RECIPIENT COUNTY, CITY, TOWN OR VILLAGE
SOLELY TO AID IN THE ENFORCEMENT BY SUCH LOCALITY OF SECTIONS THIRTEEN
HUNDRED SEVEN AND THIRTEEN HUNDRED SEVEN-A OF THE REAL PROPERTY ACTIONS
AND PROCEEDINGS LAW.
7. THE ATTORNEY GENERAL SHALL ADOPT SUCH RULES AND REGULATIONS AS HE
OR SHE DEEMS APPROPRIATE TO EFFECTUATE THE PURPOSES OF THIS SECTION,
INCLUDING PROVISIONS FOR PERIODIC MONITORING AND EVALUATION OF THE
ENFORCEMENT ASSISTANCE GRANT PROGRAM ESTABLISHED HEREIN.
A. 6932--A 10
8. THE STATE COMPTROLLER SHALL HAVE THE POWER TO INSPECT, EXAMINE AND
AUDIT THE FISCAL AFFAIRS OF ANY LOCALITY AWARDED AN ENFORCEMENT ASSIST-
ANCE GRANT PURSUANT TO THIS SECTION TO THE EXTENT NECESSARY TO DETERMINE
WHETHER THE FUNDING RECEIVED HAS BEEN USED IN ACCORDANCE WITH THE
PURPOSE OR PURPOSES FOR WHICH IT WAS SOUGHT IN THE APPLICATION, AND
WHETHER THERE HAS BEEN COMPLIANCE WITH THE APPLICABLE PROVISIONS OF THIS
SECTION AND ANY APPLICABLE RULES OR REGULATIONS ADOPTED BY THE ATTORNEY
GENERAL.
9. THE ATTORNEY GENERAL, IN CONSULTATION WITH THE STATE COMPTROLLER,
SHALL REPORT ANNUALLY TO THE GOVERNOR AND THE LEGISLATURE REGARDING THE
OPERATION AND SUCCESS OF SUCH GRANT PROGRAM.
S 7. This act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that effective immediately, the
addition and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective date is authorized and
directed to be made and completed on or before such effective date.