[ ] is old law to be omitted.
LBD12095-01-6
S. 8159 2
eof; and to amend chapter 345 of the laws of 2009, amending the educa-
tion law and other laws relating to the New York city board of educa-
tion, chancellor, community councils and community superintendents, in
relation to the effectiveness thereof; and to amend the education law,
in relation to community school district based budgeting and expendi-
ture reporting (Part O); to amend the education law, in relation to
the duties and powers of charter entities (Part P); and to amend the
real property actions and proceedings law and the civil practice law
and rules, in relation to foreclosure proceedings and pre-foreclosure
notices (Part Q)
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act enacts into law major components of legislation
which are necessary to implement the state fiscal plan for the 2016-2017
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through Q. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that particular component,
shall be deemed to mean and refer to the corresponding section of the
Part in which it is found. Section three of this act sets forth the
general effective date of this act.
PART A
Section 1. Subsection (eee) of section 606 of the tax law, as added by
section 1 of part E of chapter 60 of the laws of 2016 is relettered
subsection (ggg).
S 2. Subdivision 16 of section 425 of the real property tax law, as
added by section 1 of part F of chapter 60 of the laws of 2016, is
renumbered subdivision 15-a and amended to read as follows:
[(16)] 15-a. DIRECT PAYMENTS. Notwithstanding any provision of law to
the contrary, when the commissioner finds that a property owner was
eligible for the STAR exemption authorized by this section on an assess-
ment roll, but the exemption was not taken into account in the calcu-
lation of the property owner's school tax bill due to an administrative
error, and the property owner or his or her agent paid an excessive
amount of school taxes on the property as a result, the commissioner [of
taxation and finance] is authorized to remit directly to the property
owner the tax savings that the STAR exemption would have yielded if the
STAR exemption had been taken into account in the calculation of that
taxpayer's school tax bill. The amounts payable under this section shall
be paid from the account established for the payment of STAR benefits to
late registrants pursuant to subparagraph (iii) of paragraph (a) of
subdivision fourteen of this section. Where such a payment has been
made, neither the property owner nor his or her agent shall be entitled
to a refund of the excessive amount of school taxes paid on account of
the administrative error.
S 3. Paragraph (c) of subdivision 11 of section 425 of the real prop-
erty tax law, as added by section 1 of part B of chapter 389 of the laws
of 1997, is amended to read as follows:
S. 8159 3
(c) Transfers of title. When the assessor has received a report pursu-
ant to section five hundred seventy-four of this [article] CHAPTER of a
transfer of title to real property which is exempt pursuant to this
section, the assessor shall [send the new owner or owners as shown ther-
eon an application for the exemption authorized by this section] DISCON-
TINUE THE EXEMPTION AS REQUIRED BY SUBDIVISION SIXTEEN OF THIS SECTION.
The assessor shall not implement the provisions of section five hundred
twenty of this chapter upon such a transfer, except to the extent that
the property may also be receiving one or more other exemptions.
S 4. Paragraph (c) of subdivision 6 of section 425 of the real proper-
ty tax law, as amended by chapter 570 of the laws of 1998, is amended to
read as follows:
(c) Senior citizens exemption. When property is eligible for the
senior citizens exemption authorized by section four hundred sixty-seven
of this article, it shall also be deemed to be eligible for the enhanced
exemption authorized by this section for certain senior citizens,
provided, where applicable, that the age requirement established by a
municipal corporation pursuant to subdivision five of section four
hundred sixty-seven of this article is satisfied, and no separate appli-
cation need be filed therefor. PROVIDED, HOWEVER, THAT THE PROVISIONS OF
THIS PARAGRAPH SHALL ONLY APPLY WHERE AT LEAST ONE OF THE APPLICANTS
HELD TITLE TO THE PROPERTY ON THE TAXABLE STATUS DATE OF THE ASSESSMENT
ROLL THAT WAS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND
FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR AND THE PROPERTY WAS GRANTED
AN EXEMPTION PURSUANT TO THIS SECTION ON SUCH ASSESSMENT ROLL.
S 5. Subdivision 16 of section 425 of the real property tax law, as
added by section 2 of part A of chapter 60 of the laws of 2016, is
amended to read as follows:
16. Transition to personal income tax credit. (a) Beginning with
assessment rolls used to levy school district taxes for the two thousand
sixteen--two thousand seventeen school year, no application for an
exemption under this section may be [filed or] approved unless at least
one of the applicants held title to the property on the taxable status
date of the assessment roll that was used to levy school district taxes
for the two thousand fifteen--two thousand sixteen school year and the
property was granted an exemption pursuant to this section on that
assessment roll. In the event that an application is submitted to the
assessor that cannot be approved due to this restriction, the assessor
shall notify the applicant that he or she is required by law to deny the
application, but that, in lieu of a STAR exemption, the applicant may
claim the personal income tax credit authorized by subsection (eee) of
section six hundred six of the tax law if eligible, and that the appli-
cant may contact the department of taxation and finance for further
information. The commissioner shall provide a form for assessors to use,
at their option, when making this notification. No STAR exemption may be
granted on the basis of an application that is not approvable due to
this restriction.
(b) WHERE PROPERTY RECEIVED AN EXEMPTION PURSUANT TO THIS SECTION ON
AN ASSESSMENT ROLL USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOU-
SAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR, AND AT LEAST ONE OF ITS
OWNERS HELD TITLE TO THE PROPERTY ON THE TAXABLE STATUS DATE OF SUCH
ASSESSMENT ROLL, THE EXEMPTION SHALL CONTINUE TO BE GRANTED ON SUBSE-
QUENT ASSESSMENT ROLLS WITHOUT REGARD TO THE PROVISIONS OF THIS SUBDIVI-
SION AS LONG AS ALL APPLICABLE REQUIREMENTS OF THIS SECTION ARE SATIS-
FIED. IN ADDITION, SUCH EXEMPTION SHALL BE SUBJECT TO MODIFICATION AS
FOLLOWS:
S. 8159 4
(I) A BASIC STAR EXEMPTION SHALL BE CHANGED TO AN ENHANCED STAR
EXEMPTION IF THE OWNERS AND SPOUSES PRIMARILY RESIDING ON THE PROPERTY
FILE A TIMELY APPLICATION SHOWING THAT THEIR AGES AND INCOMES MEET THE
REQUIREMENTS OF SUBDIVISION FOUR OF THIS SECTION.
(II) AN ENHANCED STAR EXEMPTION SHALL BE CHANGED TO A BASIC STAR
EXEMPTION IF THE COMBINED INCOME OF THE OWNERS AND SPOUSES PRIMARILY
RESIDING ON THE PROPERTY INCREASES ABOVE THE LIMIT SET BY SUBDIVISION
FOUR OF THIS SECTION, SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (III) OF
THIS PARAGRAPH, PROVIDED THAT IF THEIR COMBINED INCOME FALLS BELOW THE
LIMIT SET BY SUBDIVISION FOUR OF THIS SECTION IN THE FUTURE, THEIR
ENHANCED STAR EXEMPTION MAY BE RESUMED UPON TIMELY APPLICATION.
(III) A STAR EXEMPTION SHALL BE DISCONTINUED IF THE COMBINED INCOME OF
THE OWNERS AND SPOUSES PRIMARILY RESIDING ON THE PROPERTY INCREASES
ABOVE THE LIMIT SET BY SUBDIVISION THREE OF THIS SECTION, PROVIDED THAT
IF THEIR INCOME FALLS BELOW SUCH LIMIT IN THE FUTURE, THEIR STAR
EXEMPTION MAY BE RESUMED UPON TIMELY APPLICATION.
(IV) A STAR EXEMPTION SHALL BE PERMANENTLY DISCONTINUED IF THE OWNERS
FAIL TO SATISFY THE APPLICABLE RESIDENCY OR OWNERSHIP REQUIREMENT, OR
BOTH.
(C) If the owners of a parcel that is receiving the STAR exemption
authorized by this section want to claim the personal income tax credit
authorized by subsection (eee) of section six hundred six of the tax law
in lieu of such exemption, they all must renounce that exemption in the
manner provided by section four hundred ninety-six of this chapter, and
must pay any required taxes, interest and penalties, on or before Decem-
ber thirty-first of the taxable year for which they want to claim the
credit. Any such renunciation shall be irrevocable.
(D) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBDIVISION,
WHERE A PROPERTY SERVED AS THE PRIMARY RESIDENCE OF A MARRIED COUPLE ON
THE TAXABLE STATUS DATE OF THE ASSESSMENT ROLL THAT WAS USED TO LEVY
SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN
SCHOOL YEAR, BUT ONLY ONE OF THE SPOUSES HELD TITLE TO THE PROPERTY ON
THAT TAXABLE STATUS DATE, AND THAT SPOUSE HAS SINCE DIED AND HIS OR HER
INTEREST IN THE PROPERTY HAS BEEN INHERITED BY HIS OR HER SURVIVING
SPOUSE, THE SURVIVING SPOUSE SHALL BE ENTITLED TO APPLY FOR AND RECEIVE
AN EXEMPTION UNDER THIS SECTION TO THE SAME EXTENT AS IF HE OR SHE HAD
HELD TITLE TO THE PROPERTY ON THAT TAXABLE STATUS DATE.
[(c)] (E) The provisions of this subdivision shall apply to all appli-
cations for STAR exemptions beginning with assessment rolls used to levy
school district taxes for the two thousand sixteen--two thousand seven-
teen school year, including those submitted prior to the effective date
of this subdivision. If any application was approved prior to the effec-
tive date of this subdivision that is not approvable hereunder, such
approval shall be deemed void, and the assessor shall provide the appli-
cant with the notice required by paragraph (a) of this subdivision,
PROVIDED THAT IF A STAR EXEMPTION IS GRANTED ON A TENTATIVE OR FINAL
ASSESSMENT ROLL OR TAX ROLL ON THE BASIS OF AN APPLICATION THAT IS NOT
APPROVABLE HEREUNDER, THE ASSESSOR, OR OTHER LOCAL OFFICIAL OR OFFICIALS
HAVING CUSTODY AND CONTROL OF SUCH ROLL, IS HEREBY AUTHORIZED AND
DIRECTED TO REMOVE SUCH EXEMPTION FROM SUCH ROLL WITHOUT REGARD TO THE
PROVISIONS OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER OR ANY COMPA-
RABLE LAWS GOVERNING THE CORRECTION OF ADMINISTRATIVE ERRORS ON ASSESS-
MENT ROLLS AND TAX ROLLS, NOTWITHSTANDING ANY PROVISION OF LAW TO THE
CONTRARY. If an application was submitted prior to the effective date of
this subdivision but is not approvable hereunder, the applicant may
apply for advance payment of the personal income tax credit authorized
S. 8159 5
by subsection (eee) of section six hundred six of the tax law for the
two thousand sixteen taxable year, if eligible, in the manner provided
by paragraph ten of such subsection, [notwithstanding the time limita-
tions contained in that paragraph] EVEN IF THE PROPERTY WAS ACQUIRED
PRIOR TO JANUARY FIRST OF THE TAXABLE YEAR.
S 6. Subdivision 3 of section 520 of the real property tax law, as
amended by section 4 of part A of chapter 60 of the laws of 2016, is
amended to read as follows:
3. For purposes of any fiscal year or years during which title to such
property is transferred, such property shall be deemed to have been
omitted and the assessed value thereof shall be entered on the assess-
ment roll to be used for the next tax levy by or for each municipal
corporation in which such property is located in the same manner as
provided by title three of article five of this chapter with respect to
a parcel omitted from the assessment roll of the previous year. A pro
rata tax shall be extended against the property for the unexpired
portion of each fiscal year. Such real property shall be taxed at the
tax rate or tax rates for the fiscal year during which the transfer
occurred. The amount of tax or taxes levied pursuant to this subdivision
shall be deducted from the aggregate amount of taxes to be levied for
the fiscal year immediately succeeding the fiscal year during which the
transfer occurred[; provided, however, that where the property is
receiving a school tax relief (STAR) exemption authorized by section
four hundred twenty-five of this chapter, the portion of the tax or
taxes levied that equals the recovered STAR tax savings shall be applied
to reduce the amount of aid payable to the school district under subdi-
vision three of section thirteen hundred six-a of this chapter].
S 7. Subdivision 6 of section 1306-a of the real property tax law, as
added by section 5 of part A of chapter 60 of the laws of 2016, is
amended to read as follows:
6. When the commissioner determines, at least thirty days prior to the
levy of school district taxes, that an advance credit of the personal
income tax credit authorized by subsection (eee) of section six hundred
six of the tax law will be provided to the owners of a parcel in that
school district, he or she shall so notify the ASSESSOR, THE COUNTY
DIRECTOR OF REAL PROPERTY TAX SERVICES, AND THE authorities of the
school district, who shall cause a statement to be placed on the tax
bill for the parcel in substantially the following form: "A STAR
[reimbursement] check of $ will be mailed to you upon issuance by
the NYS Tax Department[.]". The commissioner shall [advice the school
district authorities] ADVISE SUCH OFFICIALS of the amount to be entered
therein. Notwithstanding any provision of law to the contrary, in the
event that the parcel in question had been granted a STAR exemption on
the assessment roll upon which school district taxes are to be levied,
such exemption shall be deemed null and void, SHALL BE REMOVED FROM THE
ASSESSMENT ROLL, and shall be disregarded when the parcel's tax liabil-
ity is determined. THE ASSESSOR OR OTHER LOCAL OFFICIAL OR OFFICIALS
HAVING CUSTODY AND CONTROL OF THE DATA FILE USED TO GENERATE SCHOOL
DISTRICT TAX ROLLS AND TAX BILLS SHALL BE AUTHORIZED AND DIRECTED TO
CHANGE SUCH FILE AS NECESSARY TO ENABLE THE SCHOOL DISTRICT AUTHORITIES
TO DISCHARGE THE DUTIES IMPOSED UPON THEM BY THIS SUBDIVISION.
S 8. Subsection (eee) of section 606 of the tax law, as added by
section 6 of part A of chapter 60 of the laws of 2016, is amended to
read as follows:
(eee) School tax relief (STAR) credit. (1) Definitions. For purposes
of this subsection:
S. 8159 6
(A) "Qualified taxpayer" means a resident individual of the state, who
maintained his or her primary residence in this state on December thir-
ty-first of the taxable year, AND who was an owner of that property on
that date, [who cannot receive the STAR exemption on that property
either because (i) he or she is precluded from filing an application for
the STAR exemption on that property pursuant to paragraph (a) of subdi-
vision sixteen of section four hundred twenty-five of the real property
tax law, or because (ii) he or she has irrevocably renounced his or her
claim to such exemption in conjunction with all other owners pursuant to
paragraph (b) of such subdivision, and who is required or chooses to
file a return under this article.] PROVIDED HOWEVER: (I) A taxpayer
whose primary residence received a STAR exemption for the associated
fiscal year [that commenced after the acquisition of such residence]
shall not be considered a qualified taxpayer for purposes of this
subsection.
(II) AN INDIVIDUAL MAY BE CONSIDERED A QUALIFIED TAXPAYER WITH RESPECT
TO NO MORE THAN ONE PRIMARY RESIDENCE DURING ANY GIVEN TAXABLE YEAR.
(III) IF A RESIDENT INDIVIDUAL WAS AN OWNER OF THE PROPERTY DURING THE
TAXABLE YEAR BUT DID NOT OWN IT ON DECEMBER THIRTY-FIRST OF THE TAXABLE
YEAR, HE OR SHE SHALL BE CONSIDERED A QUALIFIED TAXPAYER IF THE PROPERTY
WAS HIS OR HER PRIMARY RESIDENCE DURING THE TAXABLE YEAR AND HE OR SHE
PAID QUALIFYING TAXES ON THAT PROPERTY WHILE HE OR SHE WAS STILL AN
OWNER OF THAT PROPERTY.
(IV) IF A RESIDENT INDIVIDUAL HAS ACQUIRED OWNERSHIP OF PROPERTY
DURING A TAXABLE YEAR, SUCH RESIDENT INDIVIDUAL SHALL NOT BE CONSIDERED
A QUALIFIED TAXPAYER FOR THAT TAXABLE YEAR TO THE EXTENT THAT AN ADVANCE
PAYMENT OF THE CREDIT FOR THAT TAXABLE YEAR HAS BEEN ISSUED TO THE PRIOR
OWNER WITH RESPECT TO THE SAME PROPERTY, UNLESS SUCH RESIDENT INDIVIDUAL
CAN DEMONSTRATE THAT HE OR SHE PAID QUALIFYING TAXES ON SUCH PROPERTY
DURING THE TAXABLE YEAR, AND THAT THE PRIOR OWNER DID NOT.
(B) "Affiliated income" shall mean FOR PURPOSES OF THE BASIC STAR
CREDIT, the combined income of all of the owners of the parcel who
resided primarily thereon as of December thirty-first of the taxable
year, and of any owners' spouses residing primarily thereon as of such
date, AND FOR PURPOSES OF THE ENHANCED STAR CREDIT, THE COMBINED INCOME
OF ALL OF THE OWNERS OF THE PARCEL AS OF DECEMBER THIRTY-FIRST OF THE
TAXABLE YEAR, AND OF ANY OWNERS' SPOUSES RESIDING PRIMARILY THEREON AS
OF SUCH DATE; provided that FOR BOTH PURPOSES the income to be so
combined shall be the "adjusted gross income" for the taxable year as
reported for federal income tax purposes, or that would be reported as
adjusted gross income if a federal income tax return were required to be
filed, reduced by distributions, to the extent included in federal
adjusted gross income, received from an individual retirement account
and an individual retirement annuity. PROVIDED FURTHER, THAT IF THE
QUALIFIED TAXPAYER WAS AN OWNER OF THE PROPERTY DURING THE TAXABLE YEAR
BUT DID NOT OWN IT ON DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR, THEN
THE DETERMINATION AS TO WHETHER THE INCOME OF AN INDIVIDUAL SHOULD BE
INCLUDED IN "AFFILIATED INCOME" SHALL BE BASED UPON THE OWNERSHIP AND/OR
RESIDENCY STATUS OF THAT INDIVIDUAL AS OF THE FIRST DAY OF THE MONTH
DURING WHICH THE QUALIFIED TAXPAYER CEASED TO BE AN OWNER OF THE PROPER-
TY, RATHER THAN AS OF DECEMBER THIRTY-FIRST OF THE TAXABLE YEAR.
(C) "Associated fiscal year" means the school district fiscal year
that began on July first of the taxable year or, in the case of a city
school district that is subject to article fifty-two of the education
law, the city fiscal year that began on July first of the taxable year.
(D) "Owner" means:
S. 8159 7
(i) a person who owns a parcel in fee simple absolute or as a tenant
in common, a joint tenant or a tenant by the entirety,
(ii) an owner of a present interest in a parcel under a life estate,
(iii) a vendee in possession under an installment contract of sale,
(iv) a beneficial owner under a trust,
(v) a tenant-stockholder of a cooperative apartment corporation who
resides in a portion of real property owned by such cooperative apart-
ment corporation, to the extent represented by his or her share or
shares of stock in such corporation as determined by its or their
proportional relationship to the total outstanding stock of the corpo-
ration, including that owned by the corporation,
(vi) a resident of a farm dwelling that is owned either by a corpo-
ration of which the resident is a shareholder, a partnership of which
the resident is a partner, or by a limited liability company of which
the resident is an owner, or
(vii) a resident of a dwelling, other than a farm dwelling, that is
owned by a limited partnership of which the resident is a partner,
provided that the limited partnership that holds title to the property
does not engage in any commercial activity, that the limited partnership
was lawfully created to hold title solely for estate planning and asset
protection purposes, and that the partner or partners who primarily
reside thereon personally pay all of the real property taxes and other
costs associated with the property's ownership.
(E) "Qualifying taxes" means the school district taxes that were
levied upon the taxpayer's primary residence for the associated fiscal
year that were actually paid by the taxpayer during the taxable year;
or, in the case of a city school district that is subject to article
fifty-two of the education law, the combined city and school district
taxes that were levied upon the taxpayer's primary residence for the
associated fiscal year that were actually paid by the taxpayer during
the taxable year. In no case shall the term "qualifying taxes" be
construed to include penalties or interest.
(F) "STAR exemption" means the school tax relief (STAR) exemption
authorized by section four hundred twenty-five of the real property tax
law.
(G) "STAR tax savings" means the tax savings attributable to the STAR
exemption within a portion of a school district, as determined by the
commissioner pursuant to subdivision two of section thirteen hundred
six-a of the real property tax law.
(2) Allowance of credit. A qualified taxpayer shall be allowed a cred-
it as provided in paragraph three or four of this subsection, whichever
is applicable, against the taxes imposed by this article reduced by the
credits permitted by this article, provided that the requirements set
forth in the applicable subsection are satisfied. If the credit exceeds
the tax as so reduced for such year under this article, the excess shall
be treated as an overpayment, to be credited or refunded, without inter-
est. If a qualified taxpayer is not required to file a return pursuant
to section six hundred fifty-one of this article, a qualified taxpayer
may nevertheless receive the full amount of the credit to be credited or
repaid as an overpayment, without interest.
(3) Determination of basic STAR credit. (A) Beginning with taxable
years after two thousand fifteen, a basic STAR credit shall be available
to a qualified taxpayer if the affiliated income of the parcel that
serves as the taxpayer's primary residence is less than or equal to five
hundred thousand dollars.
S. 8159 8
(B) Subject to the provisions of subparagraph (C) of this paragraph,
such basic STAR credit shall be the lesser of:
(i) the basic STAR tax savings [applicable to the] FOR THE SCHOOL
DISTRICT PORTION IN WHICH THE taxpayer's primary residence IS LOCATED,
or
(ii) the taxpayer's qualifying taxes.
(C) If the qualifying taxes paid by the taxpayer constituted only a
portion of the total school district taxes that were levied upon the
taxpayer's primary residence for the associated fiscal year or, in the
case of a city school district that is subject to article fifty-two of
the education law, if the qualifying taxes paid by the taxpayer consti-
tuted only a portion of the total combined city and school district
taxes that were levied upon the taxpayer's primary residence for the
associated fiscal year, the credit allowable to such taxpayer shall be
equal to the amount determined pursuant to subparagraph (B) of this
paragraph multiplied by the percentage that such portion represents.
(4) Determination of enhanced STAR credit. (A) Beginning with taxable
years after two thousand fifteen, an enhanced STAR credit shall be
available to a qualified taxpayer where both of the following conditions
are satisfied:
(i) All of the owners of the parcel that serves as the taxpayer's
primary residence are at least sixty-five years of age as of December
thirty-first of the taxable year or, in the case of property owned by a
married couple or by siblings, at least one of the owners is at least
sixty-five years of age as of that date. The terms "siblings" as used
herein shall have the same meaning as set forth in section four hundred
sixty-seven of the real property tax law. In the case of property owned
by a married couple, one of whom is sixty-five years of age or over, the
credit, once allowed, shall not be disallowed because of the death of
the older spouse so long as the surviving spouse is at least sixty-two
years of age as of December thirty-first of the taxable year.
(ii) The affiliated income of the parcel that serves as the taxpayer's
primary residence is less than or equal to the income standard for the
taxable year established by the commissioner for the corresponding
"income tax year" pursuant to clause (C) of subparagraph (i) of para-
graph (b) of subdivision four of section four hundred twenty-five of the
real property tax law for purposes of the enhanced STAR exemption.
(B) Subject to the provisions of subparagraph (C) of this paragraph,
such credit shall be the lesser of:
(i) the enhanced STAR tax savings for the school district portion IN
WHICH THE TAXPAYER'S PRIMARY RESIDENCE IS LOCATED, or
(ii) the taxpayer's qualifying taxes.
(C) If the qualifying taxes paid by the taxpayer constituted only a
portion of the total school district taxes that were levied upon the
taxpayer's primary residence for the associated fiscal year or, in the
case of a city school district that is subject to article fifty-two of
the education law, if the qualifying taxes paid by the taxpayer consti-
tuted only a portion of the total combined city and school district
taxes that were levied upon the taxpayer's primary residence for the
associated fiscal year, the credit allowable to such taxpayer shall be
equal to the amount determined pursuant to subparagraph (B) of this
paragraph multiplied by the percentage that such portion represents.
(5) Disqualification. A taxpayer shall not qualify for the credit
authorized by this subsection if the parcel that serves as the taxpay-
er's primary residence received the STAR exemption on the assessment
roll upon which school district taxes for the associated fiscal year
S. 8159 9
where levied. Provided, however, that the taxpayer may remove this
disqualification by renouncing the exemption and making any required
payments by December thirty-first of the taxable year, as provided by
subdivision sixteen of section four hundred twenty-five of the real
property tax law.
(6) Special cases. (A) In the case of property consisting of a cooper-
ative apartment corporation that is described by paragraph (k) of subdi-
vision two of section four hundred twenty-five of the real property tax
law, the amount of the credit allowable with respect to a cooperative
apartment shall be equal to [sixty percent of] the basic STAR tax
savings for the school district portion, or [sixty percent of] the
enhanced STAR tax savings for the school district portion, whichever is
applicable. Provided, however, that in the case of a cooperative apart-
ment corporation that is described by subparagraph (iv) of paragraph (k)
of subdivision two of section four hundred twenty-five of the real prop-
erty tax law, the credit allowable with respect to a cooperative apart-
ment shall be equal to [twenty percent] ONE-THIRD of such amount.
(B) In the case of property consisting of a mobile home that is
described in paragraph (1) of subdivision two of section four hundred
twenty-five of the real property tax law, the amount of the credit
allowable with respect to such mobile home shall be equal to [twenty-
five percent of] the basic STAR tax savings for the school district
portion, or [twenty-five percent of] the enhanced STAR tax savings for
the school district portion, whichever is applicable, THAT WOULD BE
APPLIED TO A SEPARATELY ASSESSED PARCEL IN THE SCHOOL DISTRICT PORTION
WITH A TAXABLE ASSESSED VALUE EQUAL TO TWENTY THOUSAND DOLLARS MULTI-
PLIED BY THE LATEST STATE EQUALIZATION RATE OR SPECIAL EQUALIZATION RATE
FOR THE ASSESSING UNIT IN WHICH THE MOBILE HOME IS LOCATED. PROVIDED,
HOWEVER, THAT IF THE COMMISSIONER IS IN POSSESSION OF INFORMATION,
INCLUDING BUT NOT LIMITED TO ASSESSMENT RECORDS, THAT DEMONSTRATES TO
THE COMMISSIONER'S SATISFACTION THAT THE TAXPAYER'S MOBILE HOME IS WORTH
MORE THAN TWENTY THOUSAND DOLLARS, OR IF THE TAXPAYER PROVIDES THE
COMMISSIONER WITH SUCH INFORMATION, THE TAXPAYER'S CREDIT SHALL BE
INCREASED ACCORDINGLY, BUT IN NO CASE SHALL THE CREDIT EXCEED THE BASIC
STAR TAX SAVINGS OR ENHANCED STAR TAX SAVINGS, WHICHEVER IS APPLICABLE,
FOR THE SCHOOL DISTRICT PORTION.
(C) In the case of a primary residence that is located in two or more
school districts, the applicable basic or enhanced STAR tax savings for
the school district portion shall be determined as follows:
(i) determine the sum of the total school district taxes that were
levied upon the taxpayer's primary residence for the associated fiscal
year by each of the school districts in which the residence is located;
(ii) for each such school district, divide the total school district
taxes that were levied upon the taxpayer's primary residence by that
school district for the associated fiscal year by the sum determined in
clause (i) of this subparagraph. Express the result as a percentage with
two decimal places;
(iii) for each such school district, multiply the percentage deter-
mined in clause (ii) of this subparagraph by the basic or enhanced STAR
tax savings for the school district portion, whichever is applicable;
and
(iv) add the products determined in clause (iii) of this subparagraph.
(7) Disclosure of incomes. Where the commissioner has denied a taxpay-
er's claim for the credit authorized by this subsection in whole or in
part on the grounds that the affiliated income of the parcel in question
exceeds the applicable limit, the commissioner shall have the authority
S. 8159 10
to reveal to that taxpayer the names and incomes of the other taxpayers
whose incomes were included in the computation of such affiliated
income.
(8) Proof of claim. The commissioner may require a qualified taxpayer
to furnish the following information in support of his or her claim for
credit under this subsection: affiliated income, the total school
district taxes levied on the property for the associated fiscal year or,
in the case of a city school district that is subject to article fifty-
two of the education law, the total combined city and school district
taxes levied on the property for the associated fiscal year, the quali-
fying taxes paid by the taxpayer, the names and taxpayer identification
numbers of all owners of the property and spouses who primarily reside
on the property, the parcel identification number and all other informa-
tion that may be required by the commissioner to determine the credit.
(9) Returns. [If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one of this article, a claim for a
credit may be taken on a return filed with the commissioner within three
years from the time it would have been required that a return be filed
pursuant to such section had the qualified taxpayer had a taxable year
ending on December thirty-first. Returns under this paragraph shall be
in such form as shall be prescribed by the commissioner, who shall make
available such forms and instructions for filing such returns] WHETHER
OR NOT THE TAXPAYER IS REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX
HUNDRED FIFTY-ONE OF THIS ARTICLE, THE PROCESS FOR REQUESTING ADVANCE
PAYMENT OF SUCH CREDIT SHALL BE AS PROVIDED BY PARAGRAPH TEN OF THIS
SUBSECTION.
(10) Advance payments. (A) The commissioner shall establish a mech-
anism by which a qualified taxpayer [who has acquired a new primary
residence between January first and July first of the taxable year,
inclusive,] may apply for an advance payment of the credit authorized by
this section, provided that:
(i) [Any] IF THE TAXPAYER ACQUIRED A NEW PRIMARY RESIDENCE BETWEEN
JANUARY FIRST AND JULY FIRST OF THE TAXABLE YEAR, INCLUSIVE, ANY such
application must be submitted to the commissioner by the first day of
July of the taxable year, or such later date as may be prescribed by the
commissioner IN ORDER FOR THE TAXPAYER'S PAYMENT TO BE SUBJECT TO THE
PROCESSING SCHEDULE PROVIDED BY SUBPARAGRAPH (B) OF THIS PARAGRAPH, and
(ii) A qualified taxpayer who fails to apply for an advance payment of
such credit [in a timely manner] BY SUCH DATE may [request] APPLY FOR
and receive such credit in the manner [otherwise provided by this
section] PRESCRIBED BY THE COMMISSIONER, PROVIDED THAT SUCH APPLICATION
SHALL BE MADE WITHIN THREE YEARS FROM THE TIME THAT A RETURN FOR THE
TAXABLE YEAR WOULD HAVE HAD TO BE FILED PURSUANT TO SECTION SIX HUNDRED
FIFTY-ONE OF THIS ARTICLE. IF APPROVED, SUCH PAYMENT SHALL BE ISSUED AS
SOON AS IS PRACTICABLE AFTER THE SUBMISSION OF THE APPLICATION BUT SHALL
NOT BE SUBJECT TO THE PROCESSING SCHEDULE PRESCRIBED BY SUBPARAGRAPH (B)
OF THIS PARAGRAPH, AND
(III) A QUALIFIED TAXPAYER WHO HAS APPLIED FOR AN ADVANCE PAYMENT OF
SUCH CREDIT IN A TAXABLE YEAR MAY CONTINUE TO RECEIVE SUCH ADVANCE
PAYMENTS IN FUTURE TAXABLE YEARS WITHOUT REAPPLYING AS LONG AS HE OR SHE
REMAINS ELIGIBLE THEREFOR.
(B) On or before September fifteenth of each year, or as soon there-
after as practicable, the commissioner shall determine the eligibility
of taxpayers for this credit utilizing the information available to him
or her AS OBTAINED FROM THE APPLICATIONS SUBMITTED ON OR BEFORE JULY
FIRST OF THAT YEAR, OR SUCH LATER DATE AS MAY HAVE BEEN PRESCRIBED BY
S. 8159 11
THE COMMISSIONER FOR THAT PURPOSE, AND FROM SUCH OTHER SOURCES AS THE
COMMISSIONER DEEMS RELIABLE AND APPROPRIATE. For those taxpayers whom
the commissioner has determined eligible for this credit, the commis-
sioner shall advance a payment in the amount specified in paragraph
three, four or six of this subsection, whichever is applicable. Such
payment shall be issued by September thirtieth of the year the credit is
allowed, or as soon thereafter as is practicable. NOTHING CONTAINED
HEREIN SHALL BE DEEMED TO PRECLUDE THE COMMISSIONER FROM ISSUING
PAYMENTS AFTER SEPTEMBER THIRTIETH TO QUALIFIED TAXPAYERS WHOSE APPLICA-
TIONS WERE MADE AFTER JULY FIRST OF THAT YEAR, OR SUCH LATER DATE AS MAY
HAVE BEEN PRESCRIBED BY THE COMMISSIONER FOR SUCH PURPOSE.
(C) A taxpayer who has failed to receive an advance payment that he or
she believes was due to him or her, or who has received an advance
payment that he or she believes is less than the amount that was due to
him or her, may request payment of the claimed deficiency in a manner
prescribed by the commissioner.
[(C)] (D) An advance payment of credit provided pursuant to this
subsection that exceeds the taxpayer's qualifying taxes for that taxable
year shall be added back as tax on the income tax return for that taxa-
ble year.
[(D)] (E) If the commissioner determines after issuing an advance
payment that it was issued in an excessive amount or to an ineligible or
incorrect party, the commissioner shall be empowered to utilize any of
the procedures for collection, levy and lien of personal income tax set
forth in this article, any other relevant procedures referenced within
the provisions of this article, and any other law as may be applicable,
to recoup the improperly issued amount.
(11) Administration. The provisions of this article, including the
provisions of sections six hundred fifty-three, six hundred fifty-eight,
and six hundred fifty-nine of this article and the provisions of part
six of this article relating to procedure and administration, including
the judicial review of the decisions of the commissioner, except so much
of section six hundred eighty-seven of this article that permits a claim
for credit or refund to be filed after the period provided for in para-
graph nine of this subsection and except sections six hundred fifty-sev-
en, six hundred eighty-eight and six hundred ninety-six of this article,
shall apply to the provisions of this subsection in the same manner and
with the same force and effect as if the language of those provisions
had been incorporated in full into this subsection and had expressly
referred to the credit allowed or returns filed under this subsection,
except to the extent that any such provision is either inconsistent with
a provision of this subsection or is not relevant to this subsection. As
used in such sections and such part, the term "taxpayer" shall include a
qualified taxpayer under this subsection and, notwithstanding the
provisions of subsection (e) of section six hundred ninety-seven of this
article, where a qualified taxpayer has protested the denial of a claim
for credit under this subsection and the time to file a petition for
redetermination of a deficiency or for refund has not expired, he or she
shall, subject to such conditions as may be set by the commissioner,
receive such information (A) that is contained in any return filed under
this article by a member of his or her household for the taxable year
for which the credit is claimed, and (B) that the commissioner finds is
relevant and material to the issue of whether such claim was properly
denied.
(12) [In the case of a taxpayer who has itemized deductions from
federal adjusted gross income, and whose federal itemized deductions
S. 8159 12
include an amount for real estate taxes paid, the New York itemized
deduction otherwise allowable under section six hundred fifteen of this
chapter shall be reduced by the amount of the credit claimed under this
subsection.] WHEN THE CALCULATION OF ANY OTHER PERSONAL INCOME TAX CRED-
IT IS BASED IN WHOLE OR IN PART UPON THE REAL PROPERTY TAXES PAID BY THE
TAXPAYER, THE AMOUNT OF REAL PROPERTY TAXES SO PAID SHALL BE REDUCED BY
THE CREDIT AUTHORIZED BY THIS SUBSECTION, IF APPLICABLE, IN THE COURSE
OF PERFORMING SUCH CALCULATION. WHEN THE CALCULATION OF ANY OTHER
PERSONAL INCOME TAX CREDIT IS BASED IN WHOLE OR IN PART UPON AN INDIVID-
UAL'S STATE TAX LIABILITY, THE CREDIT AUTHORIZED BY THIS SUBSECTION
SHALL NOT BE TAKEN INTO ACCOUNT IN THE CALCULATION OF SUCH STATE TAX
LIABILITY. WHEN THE CALCULATION OF A CITY TAX SURCHARGE IS BASED IN
WHOLE OR IN PART UPON THE NET STATE TAX OF AN INDIVIDUAL, THE CREDIT
AUTHORIZED BY THIS SUBSECTION SHALL NOT BE TAKEN INTO ACCOUNT IN THE
CALCULATION OF SUCH NET STATE TAX.
S 9. This act shall take effect immediately; provided, however, that
sections one and two of this act shall be deemed to have been in full
force and effect on the same date and in the same manner as parts E and
F of chapter 60 of the laws of 2016, respectively; and provided,
further, that sections five, six, seven and eight of this act shall be
deemed to have been in full force and effect on the same date and in the
same manner as part A of chapter 60 of the laws of 2016, took effect.
PART B
Section 1. Paragraph 2 of subsection (g) of section 42 of the tax law,
as added by section 1 of part RR of chapter 60 of the laws of 2016, is
amended to read as follows:
(2) Article 22: Section 606, subsection [(eee)] (FFF).
S 2. Clause (xli) of subparagraph (B) of paragraph 1 of subsection (i)
of section 606 of the tax law, as added by section 3 of part RR of chap-
ter 60 of the laws of 2016, is amended to read as follows:
(xli) Farm workforce retention Amount of credit under
credit under subsection [(eee)] subdivision fifty-one of
(FFF) section two hundred ten-B
S 3. Subsection (eee) of section 606 of the tax law, as added by
section 4 of part RR of chapter 60 of the laws of 2016, is relettered
subsection (fff).
S 4. This act shall take effect immediately and shall be deemed to be
in effect on the same date and with the same effect as part RR of chap-
ter 60 of the laws of 2016, took effect.
PART C
Section 1. Paragraph d of subdivision 1 of section 207 of the racing,
pari-mutuel wagering and breeding law, as amended by section 1 of part
PP of chapter 59 of the laws of 2015, is amended to read as follows:
d. The board, which shall become effective upon appointment of a
majority of public members, shall terminate [four] FIVE years from its
date of creation. [The board shall propose, no less than one hundred
eighty days prior to its termination, recommendations to the governor
and the state legislature representing a statutory plan for the prospec-
tive not-for-profit governing structure of The New York Racing Associ-
ation, Inc.]
S 2. This act shall take effect immediately.
S. 8159 13
PART D
Section 1. Section 1 of chapter 53 of the laws of 2016 enacting the
Aid to Localities Budget, is amended by repealing the items hereinbelow
set forth in brackets and by adding to such section the other items
underscored in this section.
EDUCATION DEPARTMENT
AID TO LOCALITIES - REAPPROPRIATIONS 2016-17
OFFICE OF PREKINDERGARTEN THROUGH GRADE TWELVE EDUCATION PROGRAM
General Fund
Local Assistance Account - 10000
FOR NONPUBLIC SCHOOL AID PAYABLE IN THE 2014-15 STATE FISCAL YEAR.
NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGULATION TO THE
CONTRARY, THE AMOUNT APPROPRIATED HEREIN REPRESENTS THE MAXIMUM
AMOUNT PAYABLE DURING THE 2014-15 STATE FISCAL YEAR ................
97,589,000 ............................................ (RE. $7,000)
FOR AID PAYABLE FOR THE 2012-13 SCHOOL YEAR FOR ADDITIONAL NONPUBLIC
SCHOOL AID. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, FUNDS
APPROPRIATED HEREIN SHALL BE AVAILABLE FOR PAYMENT OF AID HERETOFORE
ACCRUED AND HEREAFTER TO ACCRUE ... 45,204,000 .... (RE. $3,672,000)
FOR ACADEMIC INTERVENTION FOR NONPUBLIC SCHOOLS BASED ON A PLAN TO BE
DEVELOPED BY THE COMMISSIONER OF EDUCATION AND APPROVED BY THE
DIRECTOR OF THE BUDGET ... 922,000 .................. (RE. $922,000)
FOR SERVICES AND EXPENSES OF SAFETY EQUIPMENT FOR NONPUBLIC SCHOOLS
... 4,500,000 ..................................... (RE. $4,500,000)
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016.
PART E
Section 1. Subparagraph (iv) of paragraph (a) of subdivision 3 of
section 3614-c of the public health law, as amended by chapter 56 of the
laws of 2016, is amended to read as follows:
(iv) for all periods on or after April first, two thousand sixteen,
the cash portion of the minimum rate of home care aide total compen-
sation shall be ten dollars or the minimum wage as laid out in paragraph
[(c)] (A) of subdivision one of section six hundred fifty-two of the
labor law, whichever is higher. The benefit portion of the minimum rate
of home care aide total compensation shall be four dollars and nine
cents.
S 2. Subparagraph (iv) of paragraph (b) of subdivision 3 of section
3614-c of the public health law, as amended by chapter 56 of the laws of
2016, is amended to read as follows:
(iv) for all periods on or after March first, two thousand sixteen,
the cash portion of the minimum rate of home care aide total compen-
sation shall be ten dollars or the minimum wage as laid out in paragraph
[(c)] (B) of subdivision one of section six hundred fifty-two of the
labor law, whichever is higher. The benefit portion of the minimum rate
of home care aide total compensation shall be three dollars and twenty-
two cents.
S 3. This act shall take effect immediately and shall be deemed to
have been in full force and effect on the same date and same manner as
chapter 56 of the laws of 2016 took effect.
S. 8159 14
PART F
Section 1. Section 11 of chapter 710 of the laws of 1988, amending the
social services law and the education law relating to medical assistance
eligibility of certain persons and providing for managed medical care
demonstration programs, as amended by section 25 of part D of chapter 59
of the laws of 2011, is amended to read as follows:
S 11. This act shall take effect immediately; except that the
provisions of sections one, two, three, four, eight and ten of this act
shall take effect on the ninetieth day after it shall have become a law;
and except that the provisions of sections five, six and seven of this
act shall take effect January 1, 1989; and except that effective imme-
diately, the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date are
authorized and directed to be made and completed on or before such
effective date; provided, however, that the provisions of section 364-j
of the social services law, as added by section one of this act shall
expire and be deemed repealed on and after March 31, [2016] 2019, the
provisions of section 364-k of the social services law, as added by
section two of this act, except subdivision 10 of such section, shall
expire and be deemed repealed on and after January 1, 1994, and the
provisions of subdivision 10 of section 364-k of the social services
law, as added by section two of this act, shall expire and be deemed
repealed on January 1, 1995.
S 2. Notwithstanding the provisions of article 5 of the general
construction law, the provisions of section 364-j of the social services
law are hereby revived and shall continue in full force and effect as
they existed on March 30, 2016.
S 3. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after March 30, 2016.
PART G
Section 1. 1. For the purposes of this act, "responsible entity" and
"project" shall mean the New York Convention Center Operating Corpo-
ration with respect to the Jacob K. Javits Convention Center project.
"Authorized entity" shall mean the New York Convention Center Develop-
ment Corporation with respect to the Jacob K. Javits Convention Center.
2. In connection with the design, erection, construction, enlargement,
alteration, improvement, relocation, removal, or demolition of any
building or structure constituting all or any part of a project, the
authorized entity may request that, for purposes of such project, the
dormitory authority act as the construction-permitting agency pursuant
to article 18 of the executive law and the regulations promulgated ther-
eunder, as now existing or hereafter amended. Notwithstanding any other
provision of any other state or local law, rule or regulation to the
contrary:
(a) when the dormitory authority acts as the construction-permitting
agency for a project or any portion thereof, at the request of the
authorized entity, the dormitory authority may elect, if deemed feasible
and appropriate, to subject all or any part of such project and all
buildings and structures constituting all or any part of the project to
the requirements of the New York City Construction Codes of 2014,
including but not limited to the Building, Mechanical, Plumbing, Fuel
Gas, and Energy Conservation Codes; the New York City Construction and
Maintenance Code of 1968; the New York City Fire Code of 2014; the New
S. 8159 15
York City Electrical Code; the New York City Energy Code; Titles 1
(Department of Buildings), 2 (Board of Standards and Appeals) and 3
(Fire Department) (collectively, the "New York City Codes"), as now
existing or hereafter amended, instead of the requirements of the New
York state uniform fire prevention and building code (the Uniform Code)
and the New York state energy conservation construction code (the NYS
Energy Code), as now existing or hereafter amended, for such project;
and
(b) in the event the dormitory authority makes the election authorized
pursuant to this subdivision to apply New York City Codes with respect
to all or any portion of a particular project, then notwithstanding the
fact that such project and all buildings and structures constituting all
or any part of such project shall be subject to the requirements of the
New York City Codes instead of the requirements of the Uniform Code and
NYS Energy Code:
(i) the dormitory authority shall be authorized to:
(A) render such services for all or any portion of any such project
without approval of any other state department, agency, officer or
office but only as directly related to the authority granted by this
act; and
(B) take all reasonably required actions to execute its duties as the
construction-permitting agency, including without limitation, those
required to review, permit and inspect the project and enforce the New
York City Codes; and
(C) issue a code compliance certificate, certificate of occupancy, or
a temporary approval for occupancy allowing use and occupancy of the
project or parts thereof after determining such project or parts thereof
complies with the requirements of the New York City Codes; and
(D) employ such experts and consultants as shall reasonably be
required to fulfill its responsibilities as the construction-permitting
agency; and
(ii) the dormitory authority shall continue to act as the construc-
tion-permitting agency for such project and for all buildings and struc-
tures constituting all or any part of such project, and shall determine
that the design of any such building and structure (or, if applicable,
the design of any phase or portion of any such building or structure)
complies with the requirements of the New York City Codes before issuing
a construction permit for such building or structure (or phase or
portion thereof) and shall determine that such building or structure
(or, if applicable, any phase or portion thereof) complies with the
requirements of the New York City Codes before issuing a code compliance
certificate or temporary approval for occupancy for such building or
structure (or phase or portion thereof); and
(iii) upon written request of the authorized entity or any other
interested party for a variance or modification of any provision or
requirement of any one or more of the New York City Codes, the depart-
ment of state shall be authorized to consider the evidence offered and
such other reports, studies and other information the department of
state may deem appropriate, arrange for the review of the request by
other state agencies or internal or external experts and consultants,
make findings of fact and conclusions of law, and render a decision in
writing on such request, granting or denying, in whole or in part, the
requested variance or modification, provided, however, that:
(A) no such variance or modification shall be granted unless the
applicant establishes to the satisfaction of the department of state
S. 8159 16
that granting such variance or modification shall not materially affect
adversely provisions for health, safety and security; and
(B) any decision to grant a variance or modification, in whole or in
part, shall also be noted on the applicable plans and specifications
signed and sealed by a professional engineer or architect; and
(iv) such project and all buildings and structures constituting all or
any part of such project shall continue to be subject to the provisions
of part 1204 of title 19 of the New York Codes, Rules and Regulations,
as now existing and as hereafter amended (hereinafter referred to as
"Part 1204"); provided, however, that for the purposes of applying part
1204, all references in part 1204 to the Uniform Code shall be deemed to
be references to the New York City Codes; and
(v) no municipal corporation or subdivision thereof shall have the
power to modify or change the plans or specifications for such project,
or the construction, plumbing, heating, lighting or other mechanical
branch work necessary to complete the work in question, nor to require
that any person, firm or corporation employed on any such work shall
perform any such work in any other different manner than that required
by such plans and specifications, nor to conduct construction-related
inspections, including but not limited to fire safety inspections or
other inspections of such project or of any building or structure
constituting all or any part of such project, nor to issue notices of
violation, orders to remedy, summonses, or other enforcement-related
instruments of any kind relating to any alleged violation of the New
York City Codes by such project or any building or structure constitut-
ing all or any part of such project, and no condition or requirement
whatever may be imposed by any such municipal corporation or subdivision
thereof in relation to work being done on such project, as such work
shall be under the sole control of the authorized entity in accordance
with the plans, specification and contracts in relation thereto,
provided that emergency personnel shall have access to the project site
for purposes of emergency operations, coordination, and preparedness;
and
(c) the authorized entity shall be responsible for reimbursement to
the dormitory authority for the costs incurred as the construction-per-
mitting agency for a project and reimbursement to the department of
state for costs incurred in considering a request for a variance or
modification as contemplated by subparagraph (iii) of paragraph (b) of
this subdivision for a project, and such costs shall be a cost of the
project.
3. Nothing in this act shall prohibit the responsible entity for a
project from negotiating an agreement with the applicable municipal
corporation whereby, upon completion of the project, the municipal
corporation or subdivision thereof assumes administration and enforce-
ment of any applicable codes with respect to a project.
4. Nothing in this section shall prohibit the authorized entity or
responsible entity, as the case may be, from utilizing the Uniform Code
and the NYS Energy Code, as now existing or hereafter amended for any
additional work that requires a construction permit.
S 2. This act shall take effect immediately.
PART H
Intentionally omitted.
PART I
S. 8159 17
Section 1. Section 1678-a of the public authorities law, as added by
section 1 of part RR of chapter 54 of the laws of 2016, is amended to
read as follows:
S 1678-a. New York state design and construction corporation act. 1.
Purposes of act. The purposes of the New York state design and
construction corporation act are to establish the New York state design
and construction corporation to provide (a) additional project manage-
ment expertise, monitoring and oversight on INDIVIDUAL public works
projects each having a total or aggregate construction value in excess
of fifty million dollars undertaken by state agencies, state departments
subject to the provisions of this section, and state authorities includ-
ing one created by chapter one hundred fifty-four of the laws of nine-
teen hundred twenty-one and one created by chapter eight hundred twen-
ty-four of the laws of nineteen hundred thirty-three herein after
referred to as "state entity"; and (b) a means to implement and recom-
mend improvements and other project changes on such proposed INDIVIDUAL
public works projects in excess of fifty million dollars in total or
aggregate value, in a more timely fashion, to ensure that such projects
can be accomplished, to the extent practicable, on time, within budget
and at an acceptable overall quality and cost to the state of New York.
2. New York state design and construction corporation. (a) There is
hereby established the New York state design and construction corpo-
ration as a subsidiary corporation of the dormitory authority.
(b) The dormitory authority may provide or lease to such subsidiary
corporation any real, personal or mixed property as shall be required in
order to carry out the purposes of this act. The authority may assign
any such employees to work for the corporation as shall be required in
order to carry out the purposes of this section and all such employees
shall retain their respective civil service classifications, seniority,
status, and rights pursuant to their collective bargaining units and/or
collective bargaining agreements, as applicable. ANY EMPLOYEE ASSIGNED
PURSUANT TO THIS SECTION SHALL REMAIN IN HIS OR HER COLLECTIVE BARGAIN-
ING UNIT, AND NO EMPLOYEE SHALL RECEIVE A REDUCTION IN SALARY OR BENE-
FITS DUE TO SUCH ASSIGNMENT. Notwithstanding any provision of law to the
contrary, the term "employee" as set forth in this section shall mean a
dormitory authority employee assigned, in whole, or in part, to work for
the corporation.
(c) Such corporation shall be a body corporate and politic constitut-
ing a public benefit corporation, and shall have all of the privileges,
immunities, tax exemptions and other exemptions of the dormitory author-
ity to the extent the same are not inconsistent with this section.
(d) The board of the corporation shall consist of three members as
designated by the governor, and the governor shall designate the chair
from among the members of the corporation's board. The members of the
corporation's board shall serve until such time as his or her successor
is appointed by the governor.
(e) A quorum shall consist of a majority of the members of the board.
A quorum shall be required for the board to conduct business, and
approval of any matter properly before the board shall require the
affirmative vote of the majority of the board. Meetings of the corpo-
ration shall be called by the chair, or by a majority of the members
appointed. Meetings shall be held at least bi-annually.
(f) Nothing in this subdivision shall be construed to impose any
liabilities, obligations or responsibilities of such corporation upon
the dormitory authority, and the authority shall have no liability or
S. 8159 18
responsibility therefor unless the authority expressly agrees by resol-
ution of the authority board to assume the same.
(g) The provisions of section sixteen hundred ninety-one of this title
shall in all respects apply to members of the corporation and any offi-
cer, employee or agent of the dormitory authority [transferred or]
assigned to the corporation, while acting within the scope of his, her
or its authority.
(h) All of the provisions of sections seventeen and nineteen of the
public officers law shall apply to the members, directors, officers and
employees of the corporation.
(i) The corporation created pursuant to this section shall be subject
to any other provisions of this chapter pertaining to subsidiaries of
public authorities to the extent that such provisions are not inconsist-
ent with the provisions of this section.
3. Corporation review and oversight of certain public works contracts.
For INDIVIDUAL public works projects having a total or aggregate
construction value in excess of fifty million dollars, hereinafter
referred to as "covered projects", and for any and all contracts relat-
ing to such covered projects which are advertised for bid or proposal or
otherwise procured and/or entered into on or after January first, two
thousand sixteen:
(a) Any state entity proposing a covered project shall provide written
notice to the corporation of such proposal, to include without limita-
tion, the estimated value of the covered project and a summary of the
scope and duration of such covered project. Projects shall not be
divided or segmented for the purposes of avoiding compliance with the
provisions of this act. For purposes of this section, "covered project"
shall not include capital projects of the office of state comptroller,
office of the attorney general or education department of the state of
New York.
(b) The corporation shall have the authority to, and may, in its sole
discretion, review, monitor, and oversee, in whole or in part, such
covered project, and make recommendations regarding necessary corrective
or other action to any state entity in connection with such covered
project provided that the corporation, in its sole discretion, deems
such covered project to be at risk of being delayed, not being completed
within budget, or not completed at an acceptable level of quality.
(c) For the purposes of this section, the term "project" shall mean
any work associated with the planning, acquisition, design, engineering,
environmental analysis, construction, reconstruction, restoration, reha-
bilitation, establishment, improvement, renovation, extension, repair,
revitalization, management and development of a capital asset as defined
in section two of the state finance law.
(d) The state entity undertaking such covered project shall cooperate
in good faith with the corporation, and provide reasonable access to all
personnel, books, records, plans, specifications, data and other infor-
mation as may be necessary for the corporation to perform its duties.
The corporation shall limit its request for access to such information
that is reasonably necessary, as determined by the corporation to
perform its duties.
(e) In the event the corporation determines that corrective or other
action is necessary for such covered project, then the corporation shall
provide the state entity with written notice of what corrective or other
actions the corporation recommends as necessary to accomplish the
project, to the extent practicable, on time, within budget and at an
S. 8159 19
acceptable overall cost to the state of New York. Such corrective or
other action may include, but not be limited to:
(i) Modification of such plans, schedules, specifications, designs and
estimates of costs for the construction of the project and equipment of
facilities;
(ii) Detailed analysis of the project schedule so as to cure delays
that may have occurred or prevent future delay;
(iii) Detailed analysis of project budget;
(iv) Detailed analysis of change orders and/or payments to prime
contractors, subcontractors and other parties;
(v) Detailed analysis of records of construction observations,
inspections and deficiencies;
(vi) Exercise of applicable rights and/or remedies with respect to
contracts, contractors, subcontractors or other consultants;
(vii) Procurement of independent auditors, project managers, legal
counsel, or other professionals for the benefit of the project;
(viii) Regular reporting of project status and milestones to the
corporation;
(ix) Active project management review and oversight utilizing addi-
tional resources provided by the corporation; and
(x) Periodic project review and audit by the corporation on a suitable
time interval determined by the corporation.
The state entity undertaking the project shall have a period of thirty
days, or shorter if the corporation determines that a shorter period is
required by the circumstances or longer if the corporation consents,
from receipt of written notice of recommended corrective action from the
corporation, to notify the corporation in writing of its acceptance or
rejection of the corrective or other action. In the event that the state
entity rejects any corrective or other action, in whole or in part, it
shall provide simultaneous written notice to the corporation accompanied
by a reasoned explanation in support of its rejection. Such rejection
shall be reported to the secretary to the governor and the director of
the division of budget within fifteen days of its receipt by the corpo-
ration.
(f) Any state entity proposing a covered project shall include a
summary of the provisions of this section in all such proposal and/or
bid documents for such projects.
4. General powers and duties of the corporation. (a) The corporation
shall have the power to:
(i) Sue and be sued;
(ii) Have a seal and alter the same at pleasure;
(iii) Make and alter by-laws for its organization and internal manage-
ment and make rules and regulations governing same;
(iv) [Appoint] ASSIGN such officers and employees from the officers
and employees of the authority, as it may require for the performance of
its duties and, FOR THOSE OFFICERS AND EMPLOYEES WHO ARE NOT REPRESENTED
BY A RECOGNIZED EMPLOYEE ORGANIZATION, fix and determine their quali-
fications, duties, and compensation[, and retain];
(V) RETAIN or employ counsel, auditors, private financial consultants,
professional engineers or other technical consultants and other services
on a contract basis or otherwise, for the rendering of professional,
business or technical services and advice;
[(v)] (VI) Make and execute contracts and all other instruments neces-
sary or convenient for the exercise of its powers and functions under
this section;
S. 8159 20
[(vi)] (VII) Engage the services of private consultants on a contract
basis for rendering professional and technical assistance advice relat-
ing to covered projects;
[(vii)] (VIII) Procure insurance against any loss in connection with
its activities, properties and other assets, in such amount and from
such insurance as it deems desirable; and
[(viii)] (IX) Invest any funds of the corporation, or any other monies
under its custody and control not required for immediate use or
disbursement, at the discretion of the corporation, in obligations of
the state or the United States government or obligations the principal
and interest of which are obligations in which the comptroller of the
state is authorized to invest pursuant to section ninety-eight of the
state finance law.
(b) The corporation may do any and all things necessary [or conven-
ient] to carry out and exercise the powers given and granted by this
section.
(c) Notwithstanding any other provision of law, to the contrary, all
state entities and their officers shall cooperate with the corporation
in good faith and may implement the recommendations of the corporation.
S 2. This act shall take effect immediately, provided, however, that
the amendments to section 1678-a of the public authorities law made by
section one of this act shall not affect the repeal of such section and
shall be deemed repealed therewith.
PART J
Section 1. Section 3 of chapter 549 of the laws of 1994, amending the
public authorities law relating to the membership composition of the
metropolitan transportation authority board, as amended by chapter 576
of the laws of 2011, is amended to read as follows:
S 3. This act shall take effect January 1, 1995 and shall expire and
be deemed repealed on June 30, [2016] 2020 and upon such date the
provisions of law amended by this act shall revert to and be read as if
the provisions of this act had not been enacted.
S 2. This act shall take effect immediately.
PART K
Section 1. Section 1 of chapter 53 of the laws of 2016, enacting the
Aid to Localities Budget, is amended by repealing the items hereinbelow
set forth in brackets and by adding to such section the other items
underscored in this section.
AID TO LOCALITIES 2016-17
OFFICE FOR THE AGING
COMMUNITY SERVICES PROGRAM ................................. 248,848,000
--------------
General Fund
Local Assistance Account - 10000
For services and expenses of [Jewish Commu-
nity Center of Hillcrest, Inc] HILLCREST
JEWISH CENTER, INC. ............................ 100,000
S. 8159 21
DEPARTMENT OF HEALTH
WADSWORTH CENTER FOR LABORATORIES AND RESEARCH PROGRAM ...... 14,304,400
--------------
General Fund
Local Assistance Account - 10000
For services and expenses [for a statewide
campaign to promote awareness of donating
umbilical cord blood to a public cord
blood bank. A portion or all of this
appropriation may be transferred to state
operations] OF UPSTATE UNIVERSITY HOSPITAL
- UPSTATE CORD BLOOD BANK ...................... 300,000
--------------
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016.
PART L
Section 1. That part of section 1 of chapter 53 of the laws of 2016,
enacting the Aid to Localities Budget, is amended by repealing the date
hereinbelow set forth in brackets and by adding the date underscored
below.
AID TO LOCALITIES 2016-17
EDUCATION DEPARTMENT
OFFICE OF PREKINDERGARTEN THROUGH GRADE TWELVE EDUCATION
PROGRAM ............................................... 30,363,782,000
--------------
General Fund
Local Assistance Account - 10000
Notwithstanding any inconsistent provision
of law, no school district shall be eligi-
ble for an apportionment of general
support for public schools from the funds
appropriated for the 2016-17 school year
in excess of the amount apportioned to
such school district in the base year, as
defined in subdivision 1 of section 3602
of the education law, unless such school
district has submitted documentation that
has been approved by the commissioner of
education by [September 1] DECEMBER 31 of
the current year demonstrating that it has
fully implemented the standards and proce-
dures for conducting annual teacher and
principal evaluations of teachers and
principals in accordance with the require-
ments of section 3012-d of the education
law and the regulations issued by the
S. 8159 22
commissioner. Provided further that any
apportionment withheld pursuant to this
appropriation shall not occur prior to
April 1 of the current year and shall not
have any effect on the base year calcu-
lation for use in the subsequent school
year.
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2016.
PART M
Section 1. Section 1 of chapter 55 of the laws of 2016 enacting the
Capital Projects Budget, as amended by section 3 of chapter 53 of the
laws of 2016, is amended by adding to such section the items underscored
in this section.
CITY UNIVERSITY OF NEW YORK
(APPROPRIATED TO THE CITY UNIVERSITY CONSTRUCTION FUND)
SENIOR COLLEGES
CAPITAL PROJECTS 2016-17
GENERAL MAINTENANCE AND IMPROVEMENTS (CCP)
Capital Projects Funds - Other
Capital Projects Fund
Administration Purpose
FOR ADDITIONAL SERVICES AND EXPENSES RELATED
TO ALTERATIONS AND IMPROVEMENTS TO VARIOUS
FACILITIES FOR CAPITAL PROJECTS, INCLUDING
BUT NOT LIMITED TO CAPITAL DESIGN,
CONSTRUCTION, ACQUISITION, RECONSTRUCTION,
REHABILITATION, AND EQUIPMENT; FOR HEALTH
AND SAFETY, PRESERVATION OF FACILITIES,
PROGRAM IMPROVEMENT OR PROGRAM CHANGE,
ENVIRONMENTAL PROTECTION, ENERGY CONSERVA-
TION, ACCREDITATION, FACILITIES FOR THE
PHYSICALLY DISABLED, PREVENTATIVE MAINTE-
NANCE AND RELATED PROJECTS, INCLUDING
COSTS INCURRED PRIOR TO APRIL 1, 2016 AND
SUBJECT TO A PLAN DEVELOPED AND SUBMITTED
BY THE CITY UNIVERSITY OF NEW YORK BOARD
OF TRUSTEES AND APPROVED BY THE DIRECTOR
OF THE BUDGET (30051650) .................... 20,000,000
STATE UNIVERSITY OF NEW YORK
(APPROPRIATED TO THE STATE UNIVERSITY CONSTRUCTION FUND)
CAPITAL PROJECTS 2016-17
GENERAL MAINTENANCE AND IMPROVEMENTS (CCP)
Capital Projects Funds - Other
Capital Projects Fund
S. 8159 23
Preservation of Facilities Purposes
FOR ADDITIONAL SERVICES AND EXPENSES RELATED
TO ALTERATIONS AND IMPROVEMENTS TO VARIOUS
FACILITIES FOR CAPITAL PROJECTS, INCLUDING
BUT NOT LIMITED TO SERVICES AND EXPENSES,
SERVICE AGREEMENTS OR SERVICE CONTRACTS
AND MEMORANDA OF UNDERSTANDING; FOR CAPI-
TAL DESIGN INCLUDING THE COST OF SERVICES
PROVIDED BY PRIVATE FIRMS, INCLUDING PREP-
ARATION OF DESIGNS, PLANS, SPECIFICATIONS
AND ESTIMATES; FOR PROPERTY ACQUISITION,
FACILITY CONSTRUCTION, RECONSTRUCTION,
REHABILITATION, EQUIPMENT; FOR HEALTH AND
SAFETY IMPROVEMENTS AND UPGRADES TO
PRESERVE OR ENHANCE FACILITY FUNCTIONING;
FOR PROGRAM IMPROVEMENTS OR PROGRAM
CHANGE; TO SUPPORT IMPROVEMENTS IN TECH-
NOLOGY, RESEARCH, ENVIRONMENTAL
PROTECTION, ENERGY AND RESOURCE CONSERVA-
TION, AND ACCREDITATION; TO FINANCE COSTS
ATTRIBUTABLE TO EXECUTIVE ORDER 88, ADA
AND CODE COMPLIANCE NEEDS, CLAIMS, EMER-
GENCIES AND REMEDIATION OF ENVIRONMENTAL
HAZARDS; TO ENSURE THE FUNCTIONALITY OF
MAJOR BUILDING SYSTEMS SUCH AS FIRE ALARMS
AND SPRINKLERS, ELECTRICAL, MECHANICAL,
PLUMBING, HEATING/COOLING SYSTEMS AND
SUPPORTING INFRASTRUCTURE, INCLUDING
UNDERGROUND UTILITIES; AND TO PROVIDE FOR
FACILITIES FOR THE DISABLED AND RELATED
PROJECTS INCLUDING COSTS INCURRED PRIOR TO
APRIL 1, 2016 SUBJECT TO A PLAN DEVELOPED
BY THE STATE UNIVERSITY OF NEW YORK AND
APPROVED BY THE DIRECTOR OF THE BUDGET
(28F31603) .................................. 30,000,000
PROJECT SCHEDULE
PROJECT AMOUNT
----------------------------------------------------------
(THOUSANDS OF DOLLARS)
ALBANY
CAMPUS-WIDE PROJECTS ............................. 1,400
ALFRED CERAMICS
CAMPUS-WIDE PROJECTS ............................... 100
ALFRED STATE
CAMPUS-WIDE PROJECTS ............................... 350
BINGHAMTON
CAMPUS-WIDE PROJECTS ............................. 1,550
BROCKPORT
CAMPUS-WIDE PROJECTS ............................... 850
BROOKLYN HEALTH SCIENCE CENTER (HSC)
CAMPUS-WIDE PROJECTS ............................... 550
BUFFALO COLLEGE
CAMPUS-WIDE PROJECTS ............................. 1,000
BUFFALO UNIVERSITY
S. 8159 24
CAMPUS-WIDE PROJECTS ............................. 2,550
CANTON
CAMPUS-WIDE PROJECTS ............................... 250
COBLESKILL
CAMPUS-WIDE PROJECTS ............................... 300
CORNELL
CAMPUS-WIDE PROJECTS ............................. 1,400
CORTLAND
CAMPUS-WIDE PROJECTS ............................... 700
DELHI
CAMPUS-WIDE PROJECTS ............................... 300
EMPIRE STATE
CAMPUS-WIDE PROJECTS ................................ 50
ENVIRONMENTAL SCIENCE AND FORESTRY
CAMPUS-WIDE PROJECTS ............................... 350
FARMINGDALE
CAMPUS-WIDE PROJECTS ............................... 700
FREDONIA
CAMPUS-WIDE PROJECTS ............................... 550
GENESEO
CAMPUS-WIDE PROJECTS ............................... 550
MARITIME
CAMPUS-WIDE PROJECTS ............................... 250
MORRISVILLE
CAMPUS-WIDE PROJECTS ............................... 350
NEW PALTZ
CAMPUS-WIDE PROJECTS ............................... 700
OLD WESTBURY
CAMPUS-WIDE PROJECTS ............................... 350
ONEONTA
CAMPUS-WIDE PROJECTS ............................... 600
OPTOMETRY
CAMPUS-WIDE PROJECTS ............................... 150
OSWEGO
CAMPUS-WIDE PROJECTS ............................... 900
PLATTSBURGH
CAMPUS-WIDE PROJECTS ............................... 600
POTSDAM
CAMPUS-WIDE PROJECTS ............................... 600
PURCHASE
CAMPUS-WIDE PROJECTS ............................... 650
STATE UNIV PLAZA
CAMPUS-WIDE PROJECTS ............................... 250
STONY BROOK, INCL HEALTH SCIENCE CENTER
(HSC) AND LONG ISLAND STATE VETERANS HOME:
CAMPUS-WIDE PROJECTS ............................. 3,100
SYRACUSE HEALTH SCIENCE CENTER (HSC)
CAMPUS-WIDE PROJECTS ............................... 500
SUNY POLYTECHNIC
CAMPUS-WIDE PROJECTS ............................... 150
UNIVERSITY-WIDE ALTERATIONS AND IMPROVEMENTS
MAINTENANCE UNDISTRIBUTED
FOR UNIVERSITY-WIDE CAPITAL PROJECT COSTS,
INCLUDING COSTS ATTRIBUTABLE TO EXECUTIVE
ORDER 88; ADA AND CODE COMPLIANCE CLAIMS;
ENVIRONMENTAL HAZARDS; EMERGENCIES HEALTH
S. 8159 25
AND SAFETY, AND ENERGY CONSERVATION NEEDS,
ASBESTOS AND PCB REMEDIATION; FIRE ALARMS
AND SPRINKLERS; ELECTRICAL, MECHANICAL,
PLUMBING AND HEATING AND COOLING SYSTEM
REQUIREMENTS AND OTHER UNIVERSITY-WIDE
NEEDS ............................................ 2,850
UNIVERSITY-WIDE ALTERATIONS AND IMPROVEMENTS
MAINTENANCE UNDISTRIBUTED
FOR PRIORITY CAPITAL PROJECTS ...................... 4,500
--------------
TOTAL ........................................... 30,000
==============
S 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on the same date and in the same
manner as chapter 55 of the laws of 2016 took effect.
PART N
Intentionally omitted.
PART O
Section 1. Section 34 of chapter 91 of the laws of 2002, amending the
education law and other laws relating to reorganization of the New York
city school construction authority, board of education and community
boards, as amended by section 1 of subpart D of part B of chapter 20 of
the laws of 2015, is amended to read as follows:
S 34. This act shall take effect July 1, 2002; provided, that sections
one through twenty, twenty-four, and twenty-six through thirty of this
act shall expire and be deemed repealed June 30, [2016] 2017 provided,
further, that notwithstanding any provision of article 5 of the general
construction law, on June 30, [2016] 2017 the provisions of subdivisions
3, 5, and 8, paragraph b of subdivision 13, subdivision 14, paragraphs
b, d, and e of subdivision 15, and subdivisions 17 and 21 of section
2554 of the education law as repealed by section three of this act,
subdivision 1 of section 2590-b of the education law as repealed by
section six of this act, paragraph (a) of subdivision 2 of section
2590-b of the education law as repealed by section seven of this act,
section 2590-c of the education law as repealed by section eight of this
act, paragraph c of subdivision 2 of section 2590-d of the education law
as repealed by section twenty-six of this act, subdivision 1 of section
2590-e of the education law as repealed by section twenty-seven of this
act, subdivision 28 of section 2590-h of the education law as repealed
by section twenty-eight of this act, subdivision 30 of section 2590-h of
the education law as repealed by section twenty-nine of this act, subdi-
vision 30-a of section 2590-h of the education law as repealed by
section thirty of this act shall be revived and be read as such
provisions existed in law on the date immediately preceding the effec-
tive date of this act; provided, however, that sections seven and eight
of this act shall take effect on November 30, 2003; provided further
that the amendments to subdivision 25 of section 2554 of the education
law made by section two of this act shall be subject to the expiration
and reversion of such subdivision pursuant to section 12 of chapter 147
of the laws of 2001, as amended, when upon such date the provisions of
section four of this act shall take effect.
S. 8159 26
S 2. Subdivision 12 of section 17 of chapter 345 of the laws of 2009,
amending the education law and other laws relating to the New York city
board of education, chancellor, community councils, and community super-
intendents, as amended by section 2 of subpart D of part B of chapter 20
of the laws of 2015, is amended to read as follows:
12. any provision in sections one, two, three, four, five, six, seven,
eight, nine, ten and eleven of this act not otherwise set to expire
pursuant to section 34 of chapter 91 of the laws of 2002, as amended, or
section 17 of chapter 123 of the laws of 2003, as amended, shall expire
and be deemed repealed June 30, [2016] 2017.
S 3. The education law is amended by adding a new section 2590-r-1 to
read as follows:
S 2590-R-1. COMMUNITY SCHOOL DISTRICT BASED BUDGETING AND EXPENDITURE
REPORTING. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,
COMMENCING WITH THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL
YEAR AND THEREAFTER, NO FEWER THAN FIFTEEN DAYS AFTER THE RELEASE OF THE
EXECUTIVE BUDGET OF THE CITY OF NEW YORK BY THE MAYOR OF THE CITY OF NEW
YORK, THE CHANCELLOR SHALL PROVIDE TO THE CITY COUNCIL AND SHALL MAKE
PUBLICLY AVAILABLE AND ON THE DISTRICT WEBSITE A DETAILED STATEMENT OF
THE TOTAL FUNDING ALLOCATION FOR EACH COMMUNITY SCHOOL DISTRICT FOR THE
SCHOOL BUDGET YEAR. AFTER THE CLOSE OF THE PRECEDING FISCAL YEAR, AND
PRIOR TO PRESENTATION OF THE FOLLOWING YEAR'S SCHOOL BUDGET, THE CHAN-
CELLOR SHALL PROVIDE TO THE CITY COUNCIL AND SHALL MAKE PUBLICLY AVAIL-
ABLE AND ON THE DISTRICT WEBSITE A DETAILED STATEMENT OF THE TOTAL FUND-
ING ALLOCATION FOR EACH COMMUNITY SCHOOL DISTRICT FOR THE PRECEDING
SCHOOL BUDGET YEAR. SUCH STATEMENTS SHALL BE IN A FORM DEVELOPED BY THE
DIRECTOR OF THE BUDGET.
S 4. This act shall take effect immediately.
PART P
Section 1. Section 355 of the education law is amended by adding a
new subdivision 2-a to read as follows:
2-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE, OR REGULATION
TO THE CONTRARY, THE STATE UNIVERSITY TRUSTEES CHARTER SCHOOL COMMITTEE,
AS A CHARTER ENTITY, ARE FURTHER AUTHORIZED AND EMPOWERED, TO PROMULGATE
REGULATIONS WITH RESPECT TO GOVERNANCE, STRUCTURE AND OPERATIONS OF
CHARTER SCHOOLS FOR WHICH THEY ARE THE CHARTER ENTITY PURSUANT TO
SECTION TWENTY-EIGHT HUNDRED FIFTY-ONE OF THIS CHAPTER.
S 2. Section 2851 of the education law is amended by adding a new
subdivision 5 to read as follows:
5. NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGULATION TO THE
CONTRARY FOR A PERIOD OF ONE YEAR FROM THE EFFECTIVE DATE OF THIS SUBDI-
VISION, A CHARTER SCHOOL APPROVED BY A CHARTER ENTITY LISTED IN SUBDIVI-
SION THREE OF THIS SECTION MAY APPLY AT ANY TIME DURING THIS PERIOD TO
ANOTHER CHARTER ENTITY, DEFINED IN PARAGRAPH (A), (B) OR (C) OF SUBDIVI-
SION THREE OF THIS SECTION TO REQUEST SUCH OTHER CHARTER ENTITY TO OVER-
SEE AND SUPERVISE SUCH CHARTER SCHOOL. ALL STANDARDS AND REQUIREMENTS
ESTABLISHED IN THE ORIGINAL CHARTER AGREEMENT SHALL REMAIN IN EFFECT
UNTIL THE SCHEDULED EXPIRATION OF SUCH CHARTER AGREEMENT AND PROVIDED
HOWEVER THAT ALL OBLIGATIONS OF THE PREVIOUS CHARTER ENTITY TO OVERSEE
AND SUPERVISE A CHARTER SCHOOL SHALL TERMINATE UPON THE TRANSFER OF
AUTHORIZATION OF SUCH CHARTER SCHOOL TO A NEW CHARTER ENTITY, AS DEFINED
IN SUBDIVISION FIVE OF SECTION TWENTY-EIGHT HUNDRED FIFTY-TWO OF THIS
ARTICLE, AND THE PREVIOUS CHARTER ENTITY SHALL PROVIDE IN A TIMELY FASH-
ION INFORMATION RELEVANT TO THE CHARTER AS REQUESTED BY SUCH OTHER CHAR-
S. 8159 27
TER ENTITY. A CHARTER SCHOOL THAT SEEKS TO CHANGE ITS CHARTER ENTITY
MUST HAVE MET ALL OTHER REQUIREMENTS OF THIS ARTICLE AND CANNOT BE IN
VIOLATION OF ANY LEGAL REQUIREMENT, IN PROBATIONARY STATUS, OR SLATED
FOR CLOSURE.
S 3. This act shall take effect immediately.
PART Q
Section 1. The real property actions and proceedings law is amended by
adding a new section 1308 to read as follows:
S 1308. INSPECTING, SECURING AND MAINTAINING VACANT AND ABANDONED
RESIDENTIAL REAL PROPERTY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO
THE CONTRARY, THE FOLLOWING SUBDIVISIONS OF THIS SECTION SHALL ONLY
APPLY TO VACANT AND ABANDONED ONE TO FOUR FAMILY RESIDENTIAL REAL PROP-
ERTY, AND ANY DUTIES AND RESPONSIBILITIES SO PRESCRIBED BY THIS SECTION
SHALL ONLY APPLY TO THE FIRST LIEN MORTGAGE HOLDER. VACANT AND ABANDONED
RESIDENTIAL REAL PROPERTY SHALL BE DEFINED PURSUANT TO SECTION THIRTEEN
HUNDRED NINE OF THIS ARTICLE. FOR EACH CALENDAR YEAR THIS SECTION SHALL
NOT APPLY TO STATE OR FEDERALLY CHARTERED BANKS, SAVINGS BANKS, SAVINGS
AND LOAN ASSOCIATIONS, OR CREDIT UNIONS WHICH: (1) ORIGINATE, OWN,
SERVICE AND MAINTAIN THEIR MORTGAGES OR A PORTION THEREOF; AND (2) HAVE
LESS THAN THREE-TENTHS OF ONE PERCENT OF THE TOTAL LOANS IN THE STATE
WHICH THEY EITHER ORIGINATE, OWN, SERVICE, OR MAINTAIN FOR THE CALENDAR
YEAR ENDING DECEMBER THIRTY-FIRST OF THE CALENDAR YEAR ENDING TWO YEARS
PRIOR TO THE CURRENT CALENDAR YEAR. FOR ANY STATE OR FEDERALLY CHARTERED
BANKS, SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, OR CREDIT UNIONS
WHICH ORIGINATE, OWN, SERVICE AND MAINTAIN BETWEEN THREE-TENTHS OF ONE
PERCENT AND FIVE-TENTHS OF ONE PERCENT OF THE TOTAL LOANS IN THE STATE
WHICH THEY EITHER ORIGINATE, OWN, SERVICE, OR MAINTAIN FOR THE CALENDAR
YEAR ENDING DECEMBER THIRTY-FIRST OF THE CALENDAR YEAR ENDING TWO YEARS
PRIOR TO THE CURRENT CALENDAR YEAR, THE APPLICATION OF THIS SECTION
SHALL BE PROSPECTIVE ONLY.
1. SUBJECT TO BANKRUPTCY FILINGS, CEASE AND DESIST ORDERS, THREATS OF
VIOLENCE, OR ACTIVE LOSS MITIGATION EFFORTS, WITHIN NINETY DAYS OF A
BORROWER'S DELINQUENCY, THE SERVICER AUTHORIZED TO ACCEPT PAYMENT OF THE
LOAN SHALL COMPLETE AN EXTERIOR INSPECTION OF THE SUBJECT PROPERTY TO
DETERMINE OCCUPANCY. THEREAFTER, THROUGHOUT THE DELINQUENCY OF THE LOAN,
THE SERVICER SHALL CONDUCT AN EXTERIOR INSPECTION OF THE PROPERTY EVERY
TWENTY-FIVE TO THIRTY-FIVE DAYS, AT DIFFERENT TIMES OF THE DAY.
2. IF A BORROWER IS DELINQUENT AND SUBJECT TO PROPERTY INSPECTIONS
PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE SERVICER SHALL SECURE
AND MAINTAIN THE RESIDENTIAL REAL PROPERTY PURSUANT TO SUBDIVISIONS
THREE, FOUR, FIVE, SIX, AND SEVEN OF THIS SECTION WHERE THE SERVICER HAS
A REASONABLE BASIS TO BELIEVE THAT THE RESIDENTIAL REAL PROPERTY IS
VACANT AND ABANDONED, AS DEFINED IN SECTION THIRTEEN HUNDRED NINE OF
THIS CHAPTER, AND IS NOT OTHERWISE RESTRICTED FROM ACCESSING THE PROPER-
TY.
3. WITHIN SEVEN BUSINESS DAYS OF DETERMINING THAT THE PROPERTY IS
VACANT AND ABANDONED BASED ON THE CRITERIA SET FORTH IN SUBDIVISION TWO
OF THIS SECTION, THE SERVICER SHALL POST A NOTICE ON AN EASILY ACCESSI-
BLE PART OF THE PROPERTY THAT WOULD BE REASONABLY VISIBLE TO THE BORROW-
ER, PROPERTY OWNER OR OCCUPANT, AND MONITOR THE PROPERTY FOR ANY CHANGE
IN OCCUPANCY OR CONTACT WITH THE BORROWER, PROPERTY OWNER OR OCCUPANT,
AND MONITOR TO ENSURE THAT THE NOTICE REMAINS POSTED SO LONG AS THE DUTY
TO MAINTAIN APPLIES. THE POSTED NOTICE SHALL PROVIDE THE SERVICER'S TOLL
FREE NUMBER OR SIMILAR CONTACT INFORMATION.
S. 8159 28
4. IF THE POSTED NOTICE IS NOT RESPONDED TO OR PERSISTS FOR SEVEN
CONSECUTIVE CALENDAR DAYS WITHOUT CONTACT WITH THE BORROWER, PROPERTY
OWNER OR OCCUPANT INDICATING THAT THE PROPERTY IS NOT VACANT OR ABAN-
DONED, OR IF AN EMERGENT PROPERTY CONDITION THAT COULD REASONABLY
DAMAGE, DESTROY OR HARM THE PROPERTY ARISES, THE SERVICER SHALL:
(A) IN CASES WHERE THE PROPERTY CONTAINS TWO OR MORE POINTS OF INGRESS
OR EGRESS, REPLACE NO MORE THAN ONE DOOR LOCK TO PROVIDE SUBSEQUENT
ACCESS TO THE PROPERTY;
(B) SECURE, REPLACE OR BOARD UP BROKEN DOORS AND WINDOWS;
(C) SECURE ANY PART OF THE PROPERTY THAT MAY BE DEEMED AN ATTRACTIVE
NUISANCE INCLUDING, BUT NOT LIMITED TO, A WATER FEATURE THAT COULD
CREATE A DROWNING RISK, REFRIGERATOR OR FREEZER UNITS, OUTBUILDINGS,
WELLS OR SEPTIC TANKS;
(D) TAKE REASONABLE MEASURES TO ENSURE THAT PIPES, DUCTS, CONDUCTORS,
FANS AND BLOWERS DO NOT DISCHARGE HARMFUL GASES, STEAM, VAPOR, HOT AIR,
GREASE, SMOKE, ODORS OR OTHER GASEOUS OR PARTICULATE WASTE DIRECTLY UPON
ABUTTING OR ADJACENT PUBLIC OR PRIVATE PROPERTY OR THAT OF ANOTHER
TENANT;
(E) WHERE APPROPRIATE, WINTERIZE THE APPLICABLE PLUMBING AND HEATING
SYSTEMS;
(F) PROVIDE BASIC UTILITIES INCLUDING, BUT NOT LIMITED TO, WATER,
ELECTRICITY, NATURAL GAS, PROPANE AND SEWER SERVICE, AS APPROPRIATE AND
WHEN ALLOWED BY THE LOCAL UTILITY PROVIDER, THAT ARE NEEDED FOR THE
OPERATION OF A SUMP PUMP OR DEHUMIDIFIER, OR WHEN THERE ARE JOINTLY
OWNED OR SHARED UTILITIES WITH ADJOINING PROPERTIES OR UNITS, EXCEPT FOR
TURNING OFF WATER SERVICE TO PREVENT FLOODING OR WATER LEAKS IN THE
PROPERTY, OR WHEN OTHER UTILITY SERVICE COULD REASONABLY CREATE A HAZARD
TO THE PROPERTY OR AN UNAUTHORIZED OCCUPANT OR PERSON ENTERING THE PROP-
ERTY;
(G) REMOVE AND REMEDIATE ANY SIGNIFICANT HEALTH AND SAFETY ISSUES,
INCLUDING OUTSTANDING CODE VIOLATIONS;
(H) TAKE REASONABLE MEASURES TO PREVENT THE GROWTH OF HARMFUL MOLD;
(I) RESPOND TO GOVERNMENT INQUIRIES REGARDING PROPERTY CONDITION,
SUBJECT TO RESTRICTIONS REGARDING FINANCIAL PRIVACY; AND
(J) ENSURE THAT THE NOTICE REQUIRED TO BE POSTED IN SUBDIVISION THREE
OF THIS SECTION REMAINS POSTED ON AN EASILY ACCESSIBLE PART OF THE PROP-
ERTY THAT WOULD BE REASONABLY VISIBLE TO THE BORROWER, PROPERTY OWNER OR
OCCUPANT SO LONG AS THE DUTY TO MAINTAIN APPLIES.
5. AT NO TIME SHALL A SERVICER REMOVE PERSONAL PROPERTY FROM THE PROP-
ERTY UNLESS:
(A) THE PERSONAL PROPERTY POSES A SIGNIFICANT HEALTH AND SAFETY ISSUE;
OR
(B) THERE IS AN UNCONTESTED ORDER TO DO SO BY A GOVERNMENTAL ENTITY.
6. A SERVICER WHO HAS DETERMINED A PROPERTY TO BE VACANT AND ABANDONED
AND WHO HAS SECURED THE SAME SHALL TAKE REASONABLE AND NECESSARY ACTIONS
TO MAINTAIN THE PROPERTY UNTIL THE EARLIER OF THE FOLLOWING EVENTS:
(A) AN OCCUPANT OF THE PROPERTY HAS ASSERTED HIS OR HER RIGHT TO OCCU-
PY THE PROPERTY, OR THE SERVICER OR ITS AGENTS HAVE RECEIVED THREATS OF
VIOLENCE;
(B) THE BORROWER HAS FILED FOR BANKRUPTCY;
(C) A COURT HAS ORDERED THE SERVICER TO STOP ANY MAINTENANCE OF THE
PROPERTY;
(D) A HOMEOWNERS' ASSOCIATION OR COOPERATIVE HAS PREVENTED THE SERVI-
CER FROM GAINING ACCESS TO OR MAINTAINING THE PROPERTY;
(E) THE PROPERTY HAS BEEN SOLD OR TRANSFERRED TO A NEW OWNER;
S. 8159 29
(F) THE SERVICER OR INVESTOR SUBJECT TO THE PROVISIONS OF THIS SECTION
HAS RELEASED THE LIEN ON THE PROPERTY; OR
(G) THE MORTGAGE NOTE HAS BEEN ASSIGNED, TRANSFERRED OR SOLD TO ANOTH-
ER SERVICER.
7. REASONABLE AND NECESSARY ACTIONS TO MAINTAIN THE PROPERTY INCLUDE,
BUT ARE NOT LIMITED TO:
(A) ENSURING THAT THE PROPERTY REMAINS SECURE PURSUANT TO SUBDIVISIONS
FOUR, FIVE AND SIX OF THIS SECTION; AND
(B) MAINTAINING PROPERTY IN A MANNER CONSISTENT WITH THE STANDARDS SET
FORTH IN 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
OF THE NEW YORK PROPERTY MAINTENANCE CODE, TO THE EXTENT THAT THE MORT-
GAGE SERVICER OR ITS AGENTS ARE ABLE TO OBTAIN NECESSARY OR REQUIRED
PERMITS OR APPROVALS.
8. (A) VIOLATIONS OF THIS SECTION MAY BE HEARD BEFORE A HEARING OFFI-
CER OR A COURT OF COMPETENT JURISDICTION. IF IT SHALL APPEAR TO THE
SATISFACTION OF THE HEARING OFFICER OR THE COURT, BASED ON THE PREPON-
DERANCE OF THE EVIDENCE, THAT THE MORTGAGEE OR AGENT OF A MORTGAGEE HAS
VIOLATED THIS SECTION, A CIVIL PENALTY MAY BE ISSUED BY THE HEARING
OFFICER OR THE COURT IN THE AMOUNT OF UP TO FIVE HUNDRED DOLLARS PER DAY
PER PROPERTY FOR EACH DAY THE VIOLATION PERSISTED.
(B) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY, AS APPROPRIATE AND
IN HIS OR HER SOLE DISCRETION, PURSUE ANY SUSPECTED VIOLATION OF THIS
SECTION. BEFORE TAKING SUCH ACTION, THE SUPERINTENDENT SHALL GIVE THE
LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER AT LEAST SEVEN DAYS' NOTICE
OF THE VIOLATION.
(C) IN ADDITION TO THE AUTHORITY GRANTED TO THE DEPARTMENT OF FINAN-
CIAL SERVICES, THE MUNICIPALITY IN WHICH SUCH RESIDENTIAL REAL PROPERTY
IS LOCATED, 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 LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER, UNLESS
THE PROPERTY REQUIRES EMERGENCY REPAIRS TO ADDRESS A THREAT TO PUBLIC
HEALTH, SAFETY OR WELFARE, IN WHICH CASE THE MUNICIPALITY MAY ENTER AND
MAINTAIN THE PROPERTY TO CURE THE EMERGENCY, PROVIDED HOWEVER, NOTICE
SHALL BE PROVIDED TO THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER AS
SOON AS PRACTICABLE. ANY MUNICIPALITY ACTING PURSUANT TO THIS SUBDIVI-
SION SHALL HAVE A CAUSE OF ACTION IN ANY COURT OF COMPETENT JURISDICTION
AGAINST THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER TO RECOVER COSTS
INCURRED AS A RESULT OF MAINTAINING THE PROPERTY. SUCH ENTITY SHALL
PROVIDE THE DEPARTMENT OF FINANCIAL SERVICES 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 PROCEEDING PURSUANT TO THIS SUBDI-
VISION. 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 MORTGA-
GOR OF SUCH PROPERTY FOR FAILURE TO MAINTAIN SUCH PROPERTY. ANY CIVIL
PENALTY IMPOSED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION IN AN
ACTION BROUGHT BY A MUNICIPALITY PURSUANT TO THIS PARAGRAPH SHALL BE
RETAINED BY SUCH MUNICIPALITY.
(D) THE DEPARTMENT OF FINANCIAL SERVICES IS AUTHORIZED AND EMPOWERED
TO ADOPT SUCH RULES AND REGULATIONS AS MAY, IN THE JUDGMENT OF THE
SUPERINTENDENT OF FINANCIAL SERVICES, BE NECESSARY FOR THE EFFECTIVE
IMPLEMENTATION, ADMINISTRATION, OPERATION AND ENFORCEMENT OF THIS
SECTION.
S. 8159 30
9. A SERVICER WHO PEACEFULLY ENTERS A VACANT AND ABANDONED PROPERTY IN
ORDER TO MAINTAIN PURSUANT TO THIS SECTION SHALL BE IMMUNE FROM LIABIL-
ITY WHEN SUCH SERVICER IS MAKING REASONABLE EFFORTS TO COMPLY WITH THE
STATUTE.
10. THE PROVISIONS OF THIS SECTION ARE SUBJECT TO FEDERAL LAWS, COURT
ORDERS AND INVESTOR AND INSURER GUIDELINES.
11. FOR ALL STATE OR FEDERALLY CHARTERED BANKS, SAVINGS BANKS,
SAVINGS AND LOAN ASSOCIATIONS, CREDIT UNIONS, OR SERVICERS FOR WHICH THE
PROVISIONS OF THIS SECTION DO NOT APPLY, PURSUANT TO THE OPENING PARA-
GRAPH OF THIS SECTION, ANY AGREEMENT BETWEEN SUCH STATE OR FEDERALLY
CHARTERED BANKS, SAVINGS BANKS, SAVINGS AND LOAN ASSOCIATIONS, CREDIT
UNIONS, OR SERVICERS AND THE DEPARTMENT OF FINANCIAL SERVICES THAT IS
ASSOCIATED WITH THE MAINTENANCE AND REPAIR OF VACANT AND ABANDONED PROP-
ERTY SHALL REMAIN IN FULL FORCE AND EFFECT BETWEEN THE AFOREMENTIONED
PARTIES FOR SO LONG AS THE TERMS AND CONDITIONS OF SUCH AGREEMENT REMAIN
IN EFFECT.
12. THE DEPARTMENT OF FINANCIAL SERVICES SHALL ISSUE SUCH RULES AND
REGULATIONS NECESSARY TO IMPLEMENT THE TERMS OF THIS SECTION, INCLUDING
BUT NOT LIMITED TO RULES AND REGULATIONS PERTAINING TO THE REPORTING OF
FINANCIAL INFORMATION THAT STATE OR FEDERALLY CHARTERED BANKS, SAVINGS
BANKS, SAVINGS AND LOAN ASSOCIATIONS, OR CREDIT UNIONS MUST PROVIDE TO
IMPLEMENT THIS SECTION.
13. NO LOCAL LAW, ORDINANCE, OR RESOLUTION SHALL IMPOSE A DUTY TO
MAINTAIN VACANT AND ABANDONED PROPERTY AS DEFINED IN SECTION THIRTEEN
HUNDRED NINE OF THIS ARTICLE IN A MANNER INCONSISTENT WITH THE
PROVISIONS OF THIS SECTION THAT ARE RELATED TO MAINTENANCE AS PROVIDED
UNDER SUBDIVISIONS THREE, FOUR, FIVE, SIX AND SEVEN OF THIS SECTION, OR
ESTABLISH RELATED PENALTIES NOR OTHER MONETARY OBLIGATIONS, WITH RESPECT
TO A STATE OR FEDERALLY CHARTERED BANK, SAVINGS BANK, SAVINGS AND LOAN
ASSOCIATION OR CREDIT UNION THAT ORIGINATES, OWNS, SERVICES OR MAINTAINS
A MORTGAGE RELATED TO SUCH PROPERTY.
NO LOCAL LAW, ORDINANCE, OR RESOLUTION SHALL IMPOSE A DUTY TO MAINTAIN
VACANT AND ABANDONED PROPERTY UPON ANY STATE OR FEDERALLY CHARTERED
BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR CREDIT UNION THAT
ORIGINATES, OWNS, SERVICES OR MAINTAINS A MORTGAGE RELATED TO SUCH PROP-
ERTY FOR WHICH THE PROVISIONS OF THIS SECTION, PURSUANT TO THE OPENING
PARAGRAPH OF THIS SECTION, DO NOT APPLY.
S 2. Rule 3408 of the civil practice law and rules, as added by chap-
ter 472 of the laws of 2008, subdivision (a) as amended by chapter 306
of the laws of 2013, subdivisions (d), (e), (f), (g) and (h) as added by
chapter 507 of the laws of 2009, is amended to read as follows:
Rule 3408. Mandatory settlement conference in residential foreclosure
actions. (a) In any residential foreclosure action involving a home
loan as such term is defined in section thirteen hundred four of the
real property actions and proceedings law, in which the defendant is a
resident of the property subject to foreclosure, plaintiff shall file
proof of service within twenty days of such service, however service is
made, and the court shall hold a mandatory conference within sixty days
after the date when proof of service upon such defendant is filed with
the county clerk, or on such adjourned date as has been agreed to by the
parties, for the purpose of holding settlement discussions pertaining to
the relative rights and obligations of the parties under the mortgage
loan documents, including, but not limited to: 1. determining whether
the parties can reach a mutually agreeable resolution to help the
defendant avoid losing his or her home, and evaluating the potential for
a resolution in which payment schedules or amounts may be modified or
S. 8159 31
other workout options may be agreed to, [and for] INCLUDING, BUT NOT
LIMITED TO, A LOAN MODIFICATION, SHORT SALE, DEED IN LIEU OF FORECLO-
SURE, OR ANY OTHER LOSS MITIGATION OPTION; OR 2. whatever other purposes
the court deems appropriate.
(b) At the initial conference held pursuant to this section, any
defendant currently appearing pro se, shall be deemed to have made a
motion to proceed as a poor person under section eleven hundred one of
this chapter. The court shall determine whether such permission shall be
granted pursuant to standards set forth in section eleven hundred one of
this chapter. If the court appoints defendant counsel pursuant to subdi-
vision (a) of section eleven hundred two of this chapter, it shall
adjourn the conference to a date certain for appearance of counsel and
settlement discussions pursuant to subdivision (a) of this section, and
otherwise shall proceed with the conference.
(c) At any conference held pursuant to this section, the plaintiff AND
THE DEFENDANT shall appear in person or by counsel, and [if appearing by
counsel, such counsel] EACH PARTY'S REPRESENTATIVE AT THE CONFERENCE
shall be fully authorized to dispose of the case. [The defendant shall
appear in person or by counsel.] If the defendant is appearing pro se,
the court shall advise the defendant of the nature of the action and his
or her rights and responsibilities as a defendant. Where appropriate,
the court may permit a representative of the plaintiff OR THE DEFENDANT
to attend the settlement conference telephonically or by video-confer-
ence.
(d) Upon the filing of a request for judicial intervention in any
action pursuant to this section, the court shall send either a copy of
such request or the defendant's name, address and telephone number (if
available) to a housing counseling agency or agencies on a list desig-
nated by the division of housing and community renewal for the judicial
district in which the defendant resides. Such information shall be used
by the designated housing counseling agency or agencies exclusively for
the purpose of making the homeowner aware of housing counseling and
foreclosure prevention services and options available to them.
(e) The court shall promptly send a notice to parties advising them of
the time and place of the settlement conference, the purpose of the
conference and the requirements of this section. The notice shall be in
a form prescribed by the office of court administration, or, at the
discretion of the office of court administration, the administrative
judge of the judicial district in which the action is pending, and shall
advise the parties of the documents that they [should] SHALL bring to
the conference.
1. For the plaintiff, such documents [should] SHALL include, but are
not limited to, (I) the payment history[,]; (II) an itemization of the
amounts needed to cure and pay off the loan[, and]; (III) the mortgage
and note OR COPIES OF THE SAME; (IV) STANDARD APPLICATION FORMS AND A
DESCRIPTION OF LOSS MITIGATION OPTIONS, IF ANY, WHICH MAY BE AVAILABLE
TO THE DEFENDANT; AND (V) ANY OTHER DOCUMENTATION REQUIRED BY THE
PRESIDING JUDGE. If the plaintiff is not the owner of the mortgage and
note, the plaintiff shall provide the name, address and telephone number
of the legal owner of the mortgage and note. FOR CASES IN WHICH THE
LENDER OR ITS SERVICING AGENT HAS EVALUATED OR IS EVALUATING ELIGIBILITY
FOR HOME LOAN MODIFICATION PROGRAMS OR OTHER LOSS MITIGATION OPTIONS, IN
ADDITION TO THE DOCUMENTS LISTED ABOVE, THE PLAINTIFF SHALL BRING A
SUMMARY OF THE STATUS OF THE LENDER'S OR SERVICING AGENT'S EVALUATION
FOR SUCH MODIFICATIONS OR OTHER LOSS MITIGATION OPTIONS, INCLUDING,
WHERE APPLICABLE, A LIST OF OUTSTANDING ITEMS REQUIRED FOR THE BORROWER
S. 8159 32
TO COMPLETE ANY MODIFICATION APPLICATION, AN EXPECTED DATE OF COMPLETION
OF THE LENDER'S OR SERVICER AGENT'S EVALUATION, AND, IF THE
MODIFICATION(S) WAS DENIED, A DENIAL LETTER OR ANY OTHER DOCUMENT
EXPLAINING THE REASON(S) FOR DENIAL AND THE DATA INPUT FIELDS AND VALUES
USED IN THE NET PRESENT VALUE EVALUATION. IF THE MODIFICATION WAS DENIED
ON THE BASIS OF AN INVESTOR RESTRICTION, THE PLAINTIFF SHALL BRING THE
DOCUMENTARY EVIDENCE WHICH PROVIDES THE BASIS FOR THE DENIAL, SUCH AS A
POOLING AND SERVICING AGREEMENT.
2. For the defendant, such documents [should] SHALL include, but are
not limited to, [proof of current income such as the two most recent pay
stubs, most recent tax return and most recent property tax statements]
IF APPLICABLE, INFORMATION ON CURRENT INCOME TAX RETURNS, EXPENSES,
PROPERTY TAXES AND PREVIOUSLY SUBMITTED APPLICATIONS FOR LOSS MITI-
GATION; BENEFITS INFORMATION; RENTAL AGREEMENTS OR PROOF OF RENTAL
INCOME; AND ANY OTHER DOCUMENTATION RELEVANT TO THE PROCEEDING REQUIRED
BY THE PRESIDING JUDGE.
(f) Both the plaintiff and defendant shall negotiate in good faith to
reach a mutually agreeable resolution, including BUT NOT LIMITED TO a
loan modification, SHORT SALE, DEED IN LIEU OF FORECLOSURE, OR ANY OTHER
LOSS MITIGATION, if possible. COMPLIANCE WITH THE OBLIGATION TO NEGOTI-
ATE IN GOOD FAITH PURSUANT TO THIS SECTION SHALL BE MEASURED BY THE
TOTALITY OF THE CIRCUMSTANCES, INCLUDING BUT NOT LIMITED TO THE FOLLOW-
ING FACTORS:
1. COMPLIANCE WITH THE REQUIREMENTS OF THIS RULE AND APPLICABLE COURT
RULES, COURT ORDERS, AND DIRECTIVES BY THE COURT OR ITS DESIGNEE
PERTAINING TO THE SETTLEMENT CONFERENCE PROCESS;
2. COMPLIANCE WITH APPLICABLE MORTGAGE SERVICING LAWS, RULES, REGU-
LATIONS, INVESTOR DIRECTIVES, AND LOSS MITIGATION STANDARDS OR OPTIONS
CONCERNING LOAN MODIFICATIONS, SHORT SALES, AND DEEDS IN LIEU OF FORE-
CLOSURE; AND
3. CONDUCT CONSISTENT WITH EFFORTS TO REACH A MUTUALLY AGREEABLE
RESOLUTION, INCLUDING BUT NOT LIMITED TO, AVOIDING UNREASONABLE DELAY,
APPEARING AT THE SETTLEMENT CONFERENCE WITH AUTHORITY TO FULLY DISPOSE
OF THE CASE, AVOIDING PROSECUTION OF FORECLOSURE PROCEEDINGS WHILE LOSS
MITIGATION APPLICATIONS ARE PENDING, AND PROVIDING ACCURATE INFORMATION
TO THE COURT AND PARTIES.
NEITHER OF THE PARTIES' FAILURE TO MAKE THE OFFER OR ACCEPT THE OFFER
MADE BY THE OTHER PARTY IS SUFFICIENT TO ESTABLISH A FAILURE TO NEGOTI-
ATE IN GOOD FAITH.
(g) The plaintiff must file a notice of discontinuance and vacatur of
the lis pendens within [one hundred fifty days] NINETY DAYS after any
settlement agreement or loan modification is fully executed.
(h) A party to a foreclosure action may not charge, impose, or other-
wise require payment from the other party for any cost, including but
not limited to attorneys' fees, for appearance at or participation in
the settlement conference.
(I) THE COURT MAY DETERMINE WHETHER EITHER PARTY FAILS TO COMPLY WITH
THE DUTY TO NEGOTIATE IN GOOD FAITH PURSUANT TO SUBDIVISION (F) OF THIS
SECTION, AND ORDER REMEDIES PURSUANT TO SUBDIVISIONS (J) AND (K) OF THIS
SECTION, EITHER ON MOTION OF ANY PARTY OR SUA SPONTE ON NOTICE TO THE
PARTIES, IN ACCORDANCE WITH SUCH PROCEDURES AS MAY BE ESTABLISHED BY THE
COURT OR THE OFFICE OF COURT ADMINISTRATION. A REFEREE, JUDICIAL HEARING
OFFICER, OR OTHER STAFF DESIGNATED BY THE COURT TO OVERSEE THE SETTLE-
MENT CONFERENCE PROCESS MAY HEAR AND REPORT FINDINGS OF FACT AND CONCLU-
SIONS OF LAW, AND MAY MAKE REPORTS AND RECOMMENDATIONS FOR RELIEF TO THE
S. 8159 33
COURT CONCERNING ANY PARTY'S FAILURE TO NEGOTIATE IN GOOD FAITH PURSUANT
TO SUBDIVISION (F) OF THIS SECTION.
(J) UPON A FINDING BY THE COURT THAT THE PLAINTIFF FAILED TO NEGOTIATE
IN GOOD FAITH PURSUANT TO SUBDIVISION (F) OF THIS SECTION, AND ORDER
REMEDIES PURSUANT TO THIS SUBDIVISION AND SUBDIVISION (K) OF THIS
SECTION THE COURT SHALL, AT A MINIMUM, TOLL THE ACCUMULATION AND
COLLECTION OF INTEREST, COSTS, AND FEES DURING ANY UNDUE DELAY CAUSED BY
THE PLAINTIFF, AND WHERE APPROPRIATE, THE COURT MAY ALSO IMPOSE ONE OR
MORE OF THE FOLLOWING:
1. COMPEL PRODUCTION OF ANY DOCUMENTS REQUESTED BY THE COURT PURSUANT
TO SUBDIVISION (E) OF THIS SECTION OR THE COURT'S DESIGNEE DURING THE
SETTLEMENT CONFERENCE;
2. IMPOSE A CIVIL PENALTY PAYABLE TO THE STATE THAT IS SUFFICIENT TO
DETER REPETITION OF THE CONDUCT AND IN AN AMOUNT NOT TO EXCEED
TWENTY-FIVE THOUSAND DOLLARS;
3. THE COURT MAY AWARD ACTUAL DAMAGES, FEES, INCLUDING ATTORNEY FEES
AND EXPENSES TO THE DEFENDANT AS A RESULT OF PLAINTIFF'S FAILURE TO
NEGOTIATE IN GOOD FAITH; OR
4. AWARD ANY OTHER RELIEF THAT THE COURT DEEMS JUST AND PROPER.
(K) UPON A FINDING BY THE COURT THAT THE DEFENDANT FAILED TO NEGOTIATE
IN GOOD FAITH PURSUANT TO SUBDIVISION (F) OF THIS SECTION, THE COURT
SHALL, AT A MINIMUM, REMOVE THE CASE FROM THE CONFERENCE CALENDAR. IN
CONSIDERING SUCH A FINDING, THE COURT SHALL TAKE INTO ACCOUNT EQUITABLE
FACTORS INCLUDING, BUT NOT LIMITED TO, WHETHER THE DEFENDANT WAS REPRES-
ENTED BY COUNSEL.
(L) AT THE FIRST SETTLEMENT CONFERENCE HELD PURSUANT TO THIS SECTION,
IF THE DEFENDANT HAS NOT FILED AN ANSWER OR MADE A PRE-ANSWER MOTION TO
DISMISS, THE COURT SHALL:
1. ADVISE THE DEFENDANT OF THE REQUIREMENT TO ANSWER THE COMPLAINT;
2. EXPLAIN WHAT IS REQUIRED TO ANSWER A COMPLAINT IN COURT;
3. ADVISE THAT IF AN ANSWER IS NOT INTERPOSED THE ABILITY TO CONTEST
THE FORECLOSURE ACTION AND ASSERT DEFENSES MAY BE LOST; AND
4. PROVIDE INFORMATION ABOUT AVAILABLE RESOURCES FOR FORECLOSURE
PREVENTION ASSISTANCE.
AT THE FIRST CONFERENCE HELD PURSUANT TO THIS SECTION, THE COURT SHALL
ALSO PROVIDE THE DEFENDANT WITH A COPY OF THE CONSUMER BILL OF RIGHTS
PROVIDED FOR IN SECTION THIRTEEN HUNDRED THREE OF THE REAL PROPERTY
ACTIONS AND PROCEEDINGS LAW.
(M) A DEFENDANT WHO APPEARS AT THE SETTLEMENT CONFERENCE BUT WHO
FAILED TO FILE A TIMELY ANSWER, PURSUANT TO RULE 320 OF THE CIVIL PRAC-
TICE LAW AND RULES, SHALL BE PRESUMED TO HAVE A REASONABLE EXCUSE FOR
THE DEFAULT AND SHALL BE PERMITTED TO SERVE AND FILE AN ANSWER, WITHOUT
ANY SUBSTANTIVE DEFENSES DEEMED TO HAVE BEEN WAIVED WITHIN THIRTY DAYS
OF INITIAL APPEARANCE AT THE SETTLEMENT CONFERENCE. THE DEFAULT SHALL
BE DEEMED VACATED UPON SERVICE AND FILING OF AN ANSWER.
(N) ANY MOTIONS SUBMITTED BY THE PLAINTIFF OR DEFENDANT SHALL BE HELD
IN ABEYANCE WHILE THE SETTLEMENT CONFERENCE PROCESS IS ONGOING, EXCEPT
FOR MOTIONS CONCERNING COMPLIANCE WITH THIS RULE AND ITS IMPLEMENTING
RULES.
S 3. Subdivision (a) of rule 3408 of the civil practice law and rules,
as added by chapter 472 of the laws of 2008, is amended to read as
follows:
(a) In any residential foreclosure action involving a high-cost home
loan consummated between January first, two thousand three and September
first, two thousand eight, or a subprime or nontraditional home loan, as
those terms are defined under section thirteen hundred four of the real
S. 8159 34
property actions and proceedings law, in which the defendant is a resi-
dent of the property subject to foreclosure, the court shall hold a
mandatory conference within sixty days after the date when proof of
service is filed with the county clerk, or on such adjourned date as has
been agreed to by the parties, for the purpose of holding settlement
discussions pertaining to the relative rights and obligations of the
parties under the mortgage loan documents, including, but not limited
to: 1. determining whether the parties can reach a mutually agreeable
resolution to help the defendant avoid losing his or her home, and eval-
uating the potential for a resolution in which payment schedules or
amounts may be modified or other workout options may be agreed to[, and
for] INCLUDING, BUT NOT LIMITED TO, A LOAN MODIFICATION, SHORT SALE,
DEED IN LIEU OF FORECLOSURE, OR ANY OTHER LOSS MITIGATION OPTION; OR 2.
whatever other purposes the court deems appropriate.
S 4. The real property actions and proceedings law is amended by
adding two new sections 1309 and 1310 to read as follows:
S 1309. EXPEDITED APPLICATION FOR JUDGMENT OF FORECLOSURE AND SALE FOR
VACANT AND ABANDONED PROPERTY. 1. THE PLAINTIFF IN ANY FORECLOSURE
PROCEEDING MAY MAKE AN APPLICATION BY NOTICE OF MOTION OR ORDER TO SHOW
CAUSE FOR A JUDGMENT OF FORECLOSURE AND SALE ON THE GROUNDS THAT THE
SUBJECT PROPERTY IS VACANT AND ABANDONED. THE MOTION OR ORDER TO SHOW
CAUSE SHALL INCLUDE THE LAST KNOWN ADDRESS OF THE BORROWER AND THE PROP-
ERTY ADDRESS. NOTWITHSTANDING SUBDIVISION (M) OF RULE THIRTY-FOUR
HUNDRED EIGHT OF THE CIVIL PRACTICE LAW AND RULES NO SUCH APPLICATION
MAY BE MADE UNTIL THE DEFENDANT'S TIME TO ANSWER THE COMPLAINT IN THE
FORECLOSURE PROCEEDING SHALL HAVE EXPIRED. SUCH APPLICATION SHALL BE
SERVED ON DEFENDANT, REGARDLESS OF WHETHER A DEFENDANT HAS FILED AN
ANSWER OR APPEARED IN THE CASE. SUCH APPLICATION SHALL: (A) STATE IN
BOLD LETTERS, ON THE FIRST PAGE OF THE NOTICE OF MOTION OR ORDER TO SHOW
CAUSE: (I) "THE PLAINTIFF IN THIS LAWSUIT HAS APPLIED FOR AN EXPEDITED
JUDGMENT OF FORECLOSURE AND SALE OF YOUR PROPERTY ON THE GROUND THAT IT
IS VACANT AND ABANDONED"; (II) "YOUR PROPERTY MAY BE FORECLOSED UPON AND
SOLD WITHOUT ANY FURTHER PROCEEDINGS IF YOU DO NOT RESPOND TO THIS
MOTION BY OR ON THE RETURN DATE, WHICH IS ___"; (III) "YOU HAVE THE
RIGHT TO STAY IN YOUR PROPERTY UNTIL A COURT ORDERS YOU TO LEAVE"; AND
(IV) "YOU MAY RESPOND TO THIS MOTION BY EITHER SUBMITTING A WRITTEN
DOCUMENT OR BY APPEARING IN COURT ON THE RETURN DATE."; (B) BE SUPPORTED
BY AFFIDAVIT AND OTHER PROOF, INCLUDING BUT NOT LIMITED TO: (I) PROOF OF
OWNERSHIP OF THE MORTGAGE AND THE NOTE, (II) PHOTOGRAPHS EVIDENCING THAT
THE SUBJECT PROPERTY IS VACANT AND ABANDONED AS PROVIDED FOR UNDER
SUBDIVISION TWO OF THIS SECTION, AND (III) IF AVAILABLE, UTILITY COMPANY
RECORDS OR OTHER DOCUMENTATION EVIDENCING THE VACANT AND ABANDONED
STATUS OF THE PREMISES; (C) SET FORTH, SUPPORTED BY DOCUMENTARY
EVIDENCE, THE SUMS ALLEGED TO BE DUE AND OWING UPON THE SUBJECT MORTGAGE
AND NOTE, INCLUDING THE CURRENT PRINCIPAL BALANCE AND A DETAILED AND
ITEMIZED ACCOUNT OF EACH FEE, EACH COST, AND A CALCULATION OF INTEREST
ACCRUED; AND (D) REQUEST THAT THE COURT CONFIRM THE SUMS DUE AND OWING
UPON THE SUBJECT MORTGAGE AND NOTE WITHOUT APPOINTMENT OF A REFEREE. THE
COURT SHALL PROMPTLY SEND A NOTICE TO THE DEFENDANT OF THE PLAINTIFF'S
NOTICE OF MOTION OR ORDER TO SHOW CAUSE FOR A JUDGEMENT OF FORECLOSURE
AND SALE ON THE GROUNDS THAT THE SUBJECT PROPERTY IS VACANT AND ABAN-
DONED. THE NOTICE SHALL ADVISE THE DEFENDANT THAT THE LENDER IS ASKING
THE COURT TO EXPEDITE A JUDGEMENT OF FORECLOSURE AND SALE OF HIS OR HER
PROPERTY ON THE GROUND THAT IT IS VACANT AND ABANDONED AND ABOUT THE
TIME AND PLACE OF THE COURT DATE. THE NOTICE SHALL BE IN A FORM
PRESCRIBED BY THE COURTS, OR, AT THE DISCRETION OF THE COURTS.
S. 8159 35
2. (A) AS USED IN THIS SECTION, "VACANT AND ABANDONED RESIDENTIAL
PROPERTY" MEANS RESIDENTIAL REAL PROPERTY, AS DEFINED IN SECTION THIR-
TEEN HUNDRED FIVE OF THIS ARTICLE, WITH RESPECT TO WHICH THE PLAINTIFF
HAS PROVEN, BY PREPONDERANCE OF THE EVIDENCE, THAT IT HAS CONDUCTED AT
LEAST THREE CONSECUTIVE INSPECTIONS OF SUCH PROPERTY, WITH EACH
INSPECTION CONDUCTED TWENTY-FIVE TO THIRTY-FIVE DAYS APART AND AT
DIFFERENT TIMES OF THE DAY, AND AT EACH INSPECTION (I) NO OCCUPANT WAS
PRESENT AND THERE WAS NO EVIDENCE OF OCCUPANCY ON THE PROPERTY TO INDI-
CATE THAT ANY PERSONS ARE RESIDING THERE; AND (II) THE RESIDENTIAL REAL
PROPERTY WAS NOT BEING MAINTAINED IN A MANNER CONSISTENT WITH THE STAND-
ARDS SET FORTH IN NEW YORK PROPERTY MAINTENANCE CODE CHAPTER 3 SECTIONS
301, 302 (EXCLUDING 302.2, 302.6, 302.8), 304.1, 304.3, 304.7, 304.10,
304.12, 304.13, 304.15, 304.16, 307.1 AND 308.1.
(B) RESIDENTIAL REAL PROPERTY WILL ALSO BE DEEMED VACANT AND ABANDONED
IF:
(I) A COURT OR OTHER APPROPRIATE STATE OR LOCAL GOVERNMENTAL ENTITY
HAS FORMALLY DETERMINED, FOLLOWING DUE NOTICE TO THE BORROWER AT THE
PROPERTY ADDRESS AND ANY OTHER KNOWN ADDRESSES, THAT SUCH RESIDENTIAL
REAL PROPERTY IS VACANT AND ABANDONED; OR
(II) EACH BORROWER AND OWNER HAS SEPARATELY ISSUED A SWORN WRITTEN
STATEMENT, EXPRESSING HIS OR HER INTENT TO VACATE AND ABANDON THE PROP-
ERTY AND AN INSPECTION OF THE PROPERTY SHOWS NO EVIDENCE OF OCCUPANCY TO
INDICATE THAT ANY PERSONS ARE RESIDING THERE.
(C) EVIDENCE OF LACK OF OCCUPANCY SHALL INCLUDE BUT NOT BE LIMITED TO
THE FOLLOWING CONDITIONS: (I) OVERGROWN OR DEAD VEGETATION; (II) ACCUMU-
LATION OF NEWSPAPERS, CIRCULARS, FLYER OR MAIL; (III) PAST DUE UTILITY
NOTICES, DISCONNECTED UTILITIES, OR UTILITIES NOT IN USE; (IV) ACCUMU-
LATION 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 TRES-
PASS; OR (VIII) THE PROPERTY HAS A BUILDING OR STRUCTURE THAT IS OR
APPEARS STRUCTURALLY UNSOUND OR HAS ANY OTHER CONDITION THAT PRESENTS A
POTENTIAL HAZARD OR DANGER TO THE SAFETY OF PERSONS.
(D) RESIDENTIAL REAL PROPERTY WILL NOT BE DEEMED VACANT AND ABANDONED
IF, ON THE PROPERTY:
(I) THERE IS AN UNOCCUPIED BUILDING THAT IS UNDERGOING CONSTRUCTION,
RENOVATION, OR REHABILITATION THAT IS PROCEEDING DILIGENTLY TO
COMPLETION;
(II) THERE IS A BUILDING OCCUPIED ON A SEASONAL BASIS, BUT OTHERWISE
SECURE;
(III) THERE IS A BUILDING THAT IS SECURE, BUT IS THE SUBJECT OF A
PROBATE ACTION, ACTION TO QUIET TITLE, OR OTHER OWNERSHIP DISPUTE OF
WHICH THE SERVICER HAS ACTUAL NOTICE;
(IV) THERE IS A BUILDING DAMAGED BY A NATURAL DISASTER AND ONE OR MORE
OWNER INTENDS TO REPAIR AND REOCCUPY THE PROPERTY; OR
(V) THERE IS A BUILDING OCCUPIED BY THE MORTGAGOR, A RELATIVE OF THE
MORTGAGOR OR A TENANT LAWFULLY IN POSSESSION.
3. IN CONNECTION WITH AN APPLICATION FOR A JUDGMENT OF FORECLOSURE AND
SALE ON THE GROUND THAT THE SUBJECT PROPERTY IS VACANT AND ABANDONED,
THE COURT MAY REQUIRE THE PLAINTIFF OR AN AGENT TO APPEAR TO PROVIDE
TESTIMONY IN SUPPORT OF THE APPLICATION.
4. THE COURT SHALL MAKE A WRITTEN FINDING AS SOON AS PRACTICABLE AS TO
WHETHER THE PLAINTIFF HAS PROVED THAT THE PROPERTY TO BE FORECLOSED UPON
PURSUANT TO THIS SECTION IS VACANT AND ABANDONED PURSUANT TO SUBDIVISION
TWO OF THIS SECTION AND, IF THE COURT DETERMINES THAT THE PROPERTY IS
VACANT AND ABANDONED, IT SHALL SET FORTH: (A) THE EVIDENCE RELIED UPON
S. 8159 36
BY THE COURT IN FINDING THAT THE PROPERTY IS VACANT AND ABANDONED; (B)
THE EVIDENCE SHOWING THAT THE PLAINTIFF IS THE OWNER AND HOLDER OF THE
SUBJECT MORTGAGE AND NOTE, OR HAS BEEN DELEGATED THE AUTHORITY TO INSTI-
TUTE A MORTGAGE FORECLOSURE ACTION BY THE OWNER OF SAME; AND (C) THE
SUMS DUE AND OWING UPON THE SUBJECT MORTGAGE AND NOTE AFTER A REVIEW OF
THE DETAILED AND ITEMIZED ACCOUNT OF EACH FEE, EACH COST, AND A CALCU-
LATION OF INTEREST ACCRUED.
5. WITH RESPECT TO FORECLOSURE ACTIONS BROUGHT PURSUANT TO THIS
SECTION:
(A) A JUDGMENT OF FORECLOSURE AND SALE SHALL NOT BE ENTERED PURSUANT
TO THIS SECTION IF THE MORTGAGOR OR ANY OTHER DEFENDANT HAS FILED AN
ANSWER, APPEARANCE, OTHER WRITTEN OBJECTION THAT IS NOT WITHDRAWN, OR
HAS OTHERWISE DEMONSTRATED AN INTENTION TO CONTEST THE FORECLOSURE
ACTION.
(B) A DENIAL OF A JUDGMENT OF FORECLOSURE AND SALE PURSUANT TO THIS
SECTION WHERE THE COURT DOES NOT FIND THAT THE MORTGAGED PROPERTY IS
VACANT AND ABANDONED SHALL NOT BE DEEMED TO BE ON THE MERITS FOR
PURPOSES OF ANY OTHER PROCEEDING WITH RESPECT TO SUCH REAL PROPERTY.
6. IT SHALL BE UNLAWFUL FOR A LENDER, ASSIGNEE, MORTGAGE LOAN SERVI-
CER, OR A THIRD PARTY AGENT OR OTHER PERSON ACTING ON BEHALF OF A LEND-
ER, ASSIGNEE OR MORTGAGE LOAN SERVICER TO ENTER RESIDENTIAL REAL PROPER-
TY THAT IS NOT VACANT AND ABANDONED FOR THE PURPOSE OF FORCING,
INTIMIDATING, HARASSING OR COERCING A LAWFUL OCCUPANT OF SUCH RESIDEN-
TIAL PROPERTY TO VACATE THAT PROPERTY IN ORDER TO RENDER THE PROPERTY
VACANT AND ABANDONED, OR TO OTHERWISE FORCE, INTIMIDATE, HARASS, OR
COERCE A LAWFUL OCCUPANT OF RESIDENTIAL REAL PROPERTY TO VACATE THAT
PROPERTY SO THAT IT MAY BE DEEMED VACANT AND ABANDONED, PROVIDED HOWEV-
ER, A LENDER, ASSIGNEE, MORTGAGE LOAN SERVICER, OR A THIRD PARTY AGENT
OR OTHER PERSON ACTING ON BEHALF OF A LENDER, ASSIGNEE OR MORTGAGE LOAN
SERVICER WHO PEACEFULLY ENTERS A VACANT AND ABANDONED PROPERTY IN ORDER
TO RENDER THE PROPERTY VACANT AND ABANDONED SHALL BE IMMUNE FROM LIABIL-
ITY WHEN SUCH LENDER, ASSIGNEE, MORTGAGE LOAN SERVICER, THIRD PARTY
AGENT OR OTHER PERSON ACTING ON BEHALF OF A LENDER, ASSIGNEE OR MORTGAGE
LOAN SERVICER IS MAKING REASONABLE EFFORTS TO COMPLY WITH THIS SECTION.
7. THE CHIEF ADMINISTRATIVE JUDGE OF THE COURTS SHALL ADOPT SUCH RULES
AS HE OR SHE DEEMS NECESSARY TO EXPEDITIOUSLY IMPLEMENT THE PROVISIONS
OF THIS SECTION.
S 1310. VACANT AND ABANDONED PROPERTY; STATEWIDE VACANT AND ABANDONED
PROPERTY ELECTRONIC REGISTRY. 1. THE DEPARTMENT OF FINANCIAL SERVICES
SHALL MAINTAIN A STATEWIDE VACANT AND ABANDONED PROPERTY REGISTRY IN THE
FORM OF AN ELECTRONIC DATABASE. THE DEPARTMENT OF FINANCIAL SERVICES
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. THE INFORMATION PROVIDED TO
THE DEPARTMENT OF FINANCIAL SERVICES PURSUANT TO THIS SECTION SHALL BE
DEEMED AND TREATED CONFIDENTIAL, PROVIDED HOWEVER, THE SUPERINTENDENT OF
FINANCIAL SERVICES, IN HER OR HIS SOLE DISCRETION, MAY RELEASE THE
INFORMATION IF IT IS IN THE BEST INTEREST OF THE PUBLIC. ANY SUCH
RELEASED INFORMATION SHALL CONTINUE TO BE TREATED CONFIDENTIALLY BY THE
PARTIES. THE DEPARTMENT OF FINANCIAL SERVICES SHALL, UPON WRITTEN
REQUEST, PROVIDE PUBLIC OFFICIALS OF ANY STATE DISTRICT, COUNTY, CITY,
TOWN OR VILLAGE WITH ACCESS TO INFORMATION SPECIFIC TO SUCH PUBLIC OFFI-
CIAL'S DISTRICT, COUNTY, CITY, TOWN OR VILLAGE MAINTAINED ON SUCH DATA-
BASE TO FURTHER THE PURPOSES OF 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.
S. 8159 37
2. A LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER SHALL SUBMIT OR CAUSE
TO BE SUBMITTED TO THE DEPARTMENT OF FINANCIAL SERVICES INFORMATION
REQUIRED BY THE SUPERINTENDENT OF FINANCIAL SERVICES ABOUT ANY VACANT
AND ABANDONED RESIDENTIAL REAL PROPERTY, AS THAT TERM IS DEFINED IN
SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED NINE OF THIS ARTICLE, OR AS
THE SUPERINTENDENT OF FINANCIAL SERVICES MAY OTHERWISE DEFINE THAT TERM,
WITHIN TWENTY-ONE BUSINESS DAYS OF WHEN THE LENDER, ASSIGNEE OR MORTGAGE
LOAN SERVICER LEARNS, OR SHOULD HAVE LEARNED, THAT SUCH PROPERTY IS
VACANT AND ABANDONED. SUCH INFORMATION SHALL, AT A MINIMUM, INCLUDE:
(A) THE CURRENT NAME, ADDRESS AND CONTACT INFORMATION FOR THE LENDER,
ASSIGNEE OR MORTGAGE LOAN SERVICER RESPONSIBLE FOR MAINTAINING THE
VACANT PROPERTY; (B) 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 (C) THE LAST KNOWN ADDRESS AND CONTACT INFOR-
MATION FOR THE MORTGAGOR(S) OF RECORD.
3. WHERE ANY OF THE INFORMATION CONTAINED IN A LENDER'S, ASSIGNEE'S OR
MORTGAGE LOAN SERVICER'S INITIAL SUBMISSION TO THE REGISTRY HAS MATE-
RIALLY CHANGED SINCE SUCH SUBMISSION, SUCH LENDER, ASSIGNEE OR MORTGAGE
LOAN SERVICER SHALL MAKE AN AMENDED SUBMISSION TO THE REGISTRY NOT LATER
THAN THIRTY DAYS AFTER THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER
LEARNS, OR REASONABLY SHOULD HAVE LEARNED, OF THE NEW OR CHANGED INFOR-
MATION.
4. THE DEPARTMENT OF FINANCIAL SERVICES IS AUTHORIZED AND EMPOWERED TO
ADOPT SUCH RULES AND REGULATIONS AS MAY IN THE JUDGMENT OF THE SUPER-
INTENDENT OF FINANCIAL SERVICES NECESSARY FOR THE EFFECTIVE ADMINIS-
TRATION AND OPERATION OF SUCH REGISTRY, 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 SUPERINTENDENT OF FINANCIAL SERVICES MAY AMEND SUCH
REGULATIONS FROM TIME TO TIME AS NECESSARY TO EFFECTUATE THE PURPOSE OF
THIS SECTION AND SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE.
5. THE DEPARTMENT OF FINANCIAL SERVICES SHALL ESTABLISH AND MAINTAIN A
TOLL-FREE HOTLINE THAT NEIGHBORS OF REAL PROPERTY THAT IS, OR APPEARS TO
BE, VACANT AND ABANDONED RESIDENTIAL REAL PROPERTY, AS SUCH TERM IS
DEFINED IN SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED NINE OF THIS
ARTICLE, AND OTHER COMMUNITY RESIDENTS CAN USE TO REPORT TO THE SUPER-
INTENDENT OF FINANCIAL SERVICES ANY HAZARDS, BLIGHT OR OTHER CONCERNS
RELATED TO SUCH PROPERTY. THE DEPARTMENT OF FINANCIAL SERVICES SHALL
INCLUDE ON ITS OFFICIAL PUBLIC WEBSITE INFORMATION ABOUT SUCH TOLL-FREE
HOTLINE.
NO LOCAL LAW, ORDINANCE, OR RESOLUTION SHALL IMPOSE A DUTY TO REGISTER
VACANT AND ABANDONED PROPERTY AS DEFINED IN SECTION THIRTEEN HUNDRED
NINE OF THE ARTICLE IN A MANNER INCONSISTENT WITH THE PROVISIONS OF THIS
SECTION THAT ARE RELATED TO REGISTRATION AS PROVIDED UNDER SECTION THIR-
TEEN HUNDRED TEN OF THIS ARTICLE OR ESTABLISH RELATED PENALTIES OR OTHER
MONETARY OBLIGATION, WITH RESPECT TO A STATE OR FEDERALLY CHARTERED
BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR CREDIT UNION THAT
ORIGINATES, OWNS, SERVICES OR MAINTAINS A MORTGAGE RELATED TO SUCH PROP-
ERTY.
NO LOCAL LAW, ORDINANCE, OR RESOLUTION SHALL IMPOSE A DUTY TO MAINTAIN
VACANT AND ABANDONED PROPERTY UPON ANY STATE OR FEDERALLY CHARTERED
BANK, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR CREDIT UNION THAT
ORIGINATES, OWNS, SERVICES OR MAINTAINS A MORTGAGE RELATED TO SUCH PROP-
ERTY FOR WHICH THE PROVISIONS OF THIS SECTION, PURSUANT TO THE OPENING
PARAGRAPH OF SECTION THIRTEEN HUNDRED EIGHT OF THIS ARTICLE, DO NOT
APPLY.
S. 8159 38
S 5. Subdivision 3 of section 1303 of the real property actions and
proceedings law, as amended by chapter 507 of the laws of 2009 and as
further amended by section 104 of part A of chapter 62 of the laws of
2011, is amended and a new subdivision 3-a is added to read as follows:
3. The notice to any mortgagor required by paragraph (a) of subdivi-
sion one of this section shall appear as follows:
Help for Homeowners in Foreclosure
New York State Law requires that we send you this notice about the
foreclosure process. Please read it carefully.
Summons and Complaint
You are in danger of losing your home. If you fail to respond to the
summons and complaint in this foreclosure action, you may lose your
home. Please read the summons and complaint carefully. You should imme-
diately contact an attorney or your local legal aid office to obtain
advice on how to protect yourself.
Sources of Information and Assistance
The State encourages you to become informed about your options in
foreclosure. In addition to seeking assistance from an attorney or legal
aid office, there are government agencies and non-profit organizations
that you may contact for information about possible options, including
trying to work with your lender during this process.
To locate an entity near you, you may call the toll-free helpline
maintained by the New York State Department of Financial Services at
(enter number) or visit the Department's website at (enter web address).
RIGHTS AND OBLIGATIONS
YOU ARE NOT REQUIRED TO LEAVE YOUR HOME AT THIS TIME. YOU HAVE THE RIGHT
TO STAY IN YOUR HOME DURING THE FORECLOSURE PROCESS. YOU ARE NOT
REQUIRED TO LEAVE YOUR HOME UNLESS AND UNTIL YOUR PROPERTY IS SOLD AT
AUCTION PURSUANT TO A JUDGMENT OF FORECLOSURE AND SALE.
REGARDLESS OF WHETHER YOU CHOOSE TO REMAIN IN YOUR HOME, YOU ARE
REQUIRED TO TAKE CARE OF YOUR PROPERTY AND PAY PROPERTY TAXES IN ACCORD-
ANCE WITH STATE AND LOCAL LAW.
Foreclosure rescue scams
Be careful of people who approach you with offers to "save" your home.
There are individuals who watch for notices of foreclosure actions in
order to unfairly profit from a homeowner's distress. You should be
extremely careful about any such promises and any suggestions that you
pay them a fee or sign over your deed. State law requires anyone offer-
ing such services for profit to enter into a contract which fully
describes the services they will perform and fees they will charge, and
which prohibits them from taking any money from you until they have
completed all such promised services.
3-A. NO LATER THAN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS SUBDI-
VISION, THE DEPARTMENT OF FINANCIAL SERVICES SHALL PUBLISH A CONSUMER
BILL OF RIGHTS, IN CONSULTATION WITH ALL STAKEHOLDERS, WHICH SHALL
DETAIL THE RIGHTS AND RESPONSIBILITIES OF THE PLAINTIFF AND DEFENDANT IN
A FORECLOSURE PROCEEDING. SUCH BILL OF RIGHTS SHALL BE UPDATED ON AN
ANNUAL BASIS AND AS APPROPRIATE.
S 6. Section 1304 of the real property actions and proceedings law, as
added by chapter 472 of the laws of 2008, subdivision 1 as amended and
subdivision 6 as added by chapter 155 of the laws of 2012, and subdivi-
sions 2 and 5 as amended by chapter 507 of the laws of 2009, and subdi-
vision 2 as further amended by section 104 of part A of chapter 62 of
the laws of 2011, is amended to read as follows:
S 1304. Required prior notices. 1. Notwithstanding any other
provision of law, with regard to a home loan, at least ninety days
S. 8159 39
before a lender, an assignee or a mortgage loan servicer commences legal
action against the borrower, OR BORROWERS AT THE PROPERTY ADDRESS AND
ANY OTHER ADDRESS OF RECORD, including mortgage foreclosure, such lend-
er, assignee or mortgage loan servicer shall give notice to the borrower
in at least fourteen-point type which shall include the following:
"YOU [COULD LOSE YOUR HOME] MAY BE AT RISK OF
FORECLOSURE. PLEASE READ THE FOLLOWING NOTICE CAREFULLY"
"As of ___, your home loan is ___ days AND DOLLARS in default.
Under New York State Law, we are required to send you this notice to
inform you that you are at risk of losing your home. [You can cure this
default by making the payment of _____ dollars by ____.]
[If you are experiencing financial difficulty, you should know that
there are several options available to you that may help you keep your
home.] Attached to this notice is a list of government approved housing
counseling agencies in your area which provide free [or very low-cost]
counseling. [You should consider contacting one of these agencies imme-
diately. These agencies specialize in helping homeowners who are facing
financial difficulty. Housing counselors can help you assess your finan-
cial condition and work with us to explore the possibility of modifying
your loan, establishing an easier payment plan for you, or even working
out a period of loan forbearance.] YOU CAN ALSO CALL THE NYS OFFICE OF
THE ATTORNEY GENERAL'S HOMEOWNER PROTECTION PROGRAM (HOPP) TOLL-FREE
CONSUMER HOTLINE TO BE CONNECTED TO FREE HOUSING COUNSELING SERVICES IN
YOUR AREA AT 1-855-HOME-456 (1-855-466-3456), OR VISIT THEIR WEBSITE AT
HTTP://WWW.AGHOMEHELP.COM/. A STATEWIDE LISTING BY COUNTY IS ALSO AVAIL-
ABLE AT HTTP://WWW.DFS.NY.GOV/CONSUMER/MORTG NYS NP COUNSELING AGEN-
CIES.HTM. QUALIFIED FREE HELP IS AVAILABLE; WATCH OUT FOR COMPANIES OR
PEOPLE WHO CHARGE A FEE FOR THESE SERVICES.
HOUSING COUNSELORS FROM NEW YORK-BASED AGENCIES LISTED ON THE WEBSITE
ABOVE ARE TRAINED TO HELP HOMEOWNERS WHO ARE HAVING PROBLEMS MAKING
THEIR MORTGAGE PAYMENTS AND CAN HELP YOU FIND THE BEST OPTION FOR YOUR
SITUATION. If you wish, you may also contact us directly at __________
and ask to discuss possible options.
While we cannot assure that a mutually agreeable resolution is possi-
ble, we encourage you to take immediate steps to try to achieve a resol-
ution. The longer you wait, the fewer options you may have.
If [this matter is not resolved] YOU HAVE NOT TAKEN ANY ACTIONS TO
RESOLVE THIS MATTER within 90 days from the date this notice was mailed,
we may commence legal action against you (or sooner if you cease to live
in the dwelling as your primary residence.)
If you need further information, please call the New York State
Department of Financial Services' toll-free helpline at (show number) or
visit the Department's website at (show web address)["].
IMPORTANT: YOU HAVE THE RIGHT TO REMAIN IN YOUR HOME UNTIL YOU RECEIVE
A COURT ORDER TELLING YOU TO LEAVE THE PROPERTY. IF A FORECLOSURE ACTION
IS FILED AGAINST YOU IN COURT, YOU STILL HAVE THE RIGHT TO REMAIN IN THE
HOME UNTIL A COURT ORDERS YOU TO LEAVE. YOU LEGALLY REMAIN THE OWNER OF
AND ARE RESPONSIBLE FOR THE PROPERTY UNTIL THE PROPERTY IS SOLD BY YOU
OR BY ORDER OF THE COURT AT THE CONCLUSION OF ANY FORECLOSURE
PROCEEDINGS. THIS NOTICE IS NOT AN EVICTION NOTICE, AND A FORECLOSURE
ACTION HAS NOT YET BEEN COMMENCED AGAINST YOU.
2. Such notice shall be sent by such lender, assignee (INCLUDING
PURCHASING INVESTOR) or mortgage loan servicer to the borrower, by
registered or certified mail and also by first-class mail to the last
known address of the borrower, and [if different,] to the residence that
is the subject of the mortgage. Such notice shall be sent by the lender,
S. 8159 40
assignee or mortgage loan servicer in a separate envelope from any other
mailing or notice. Notice is considered given as of the date it is
mailed. The notice shall contain a CURRENT list of at least five housing
counseling agencies [as designated by the division of housing and commu-
nity renewal, that serve the region where the borrower resides] SERVING
THE COUNTY WHERE THE PROPERTY IS LOCATED FROM THE MOST RECENT LISTING
AVAILABLE FROM DEPARTMENT OF FINANCIAL SERVICES. The list shall include
the counseling agencies' last known addresses and telephone numbers. The
department of financial services [and the division of housing and commu-
nity renewal] shall make available on [their respective] ITS websites a
listing, by [region] COUNTY, of such agencies. The lender, assignee or
mortgage loan servicer shall use [either of these] SUCH lists to meet
the requirements of this section.
3. The ninety day period specified in the notice contained in subdivi-
sion one of this section shall not apply, or shall cease to apply, if
the borrower has filed [an application for the adjustment of debts of
the borrower or an order for relief from the payment of debts,] FOR
BANKRUPTCY PROTECTION UNDER FEDERAL LAW, or if the borrower no longer
occupies the residence as the borrower's principal dwelling. NOTHING
HEREIN SHALL RELIEVE THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER OF
THE OBLIGATION TO SEND SUCH NOTICE, WHICH NOTICE SHALL BE A CONDITION
PRECEDENT TO COMMENCING A FORECLOSURE PROCEEDING.
4. The notice and the ninety day period required by subdivision one of
this section need only be provided once in a twelve month period to the
same borrower in connection with the same loan AND SAME DELINQUENCY.
SHOULD A BORROWER CURE A DELINQUENCY BUT RE-DEFAULT IN THE SAME TWELVE
MONTH PERIOD, THE LENDER SHALL PROVIDE A NEW NOTICE PURSUANT TO THIS
SECTION.
5. FOR ANY BORROWER KNOWN TO HAVE LIMITED ENGLISH PROFICIENCY, THE
NOTICE REQUIRED BY SUBDIVISION ONE OF THIS SECTION SHALL BE IN THE
BORROWER'S NATIVE LANGUAGE (OR A LANGUAGE IN WHICH THE BORROWER IS
PROFICIENT), PROVIDED THAT THE LANGUAGE IS ONE OF THE SIX MOST COMMON
NON-ENGLISH LANGUAGES SPOKEN BY INDIVIDUALS WITH LIMITED ENGLISH PROFI-
CIENCY IN THE STATE OF NEW YORK, BASED ON UNITED STATES CENSUS DATA. THE
DEPARTMENT OF FINANCIAL SERVICES SHALL POST THE NOTICE REQUIRED BY
SUBDIVISION ONE OF THIS SECTION ON ITS WEBSITE IN THE SIX MOST COMMON
NON-ENGLISH LANGUAGES SPOKEN BY INDIVIDUALS WITH LIMITED ENGLISH PROFI-
CIENCY IN THE STATE OF NEW YORK, BASED ON THE UNITED STATES CENSUS DATA.
6. (a) "Home loan" means a loan, including an open-end credit plan,
other than a reverse mortgage transaction, in which:
(i) The borrower is a natural person;
(ii) The debt is incurred by the borrower primarily for personal,
family, or household purposes;
(iii) The loan is secured by a mortgage or deed of trust on real
estate improved by a one to four family dwelling, or a condominium unit,
in either case, used or occupied, or intended to be used or occupied
wholly or partly, as the home or residence of one or more persons and
which is or will be occupied by the borrower as the borrower's principal
dwelling; and
(iv) The property is located in this state.
(b) "Lender" means a mortgage banker as defined in paragraph (f) of
subdivision one of section five hundred ninety of the banking law or an
exempt organization as defined in paragraph (e) of subdivision one of
section five hundred ninety of the banking law.
[6.] 7. The department of financial services shall prescribe the tele-
phone number and web address to be included in the notice.
S. 8159 41
S 7. Subdivisions 1, 2, 5 and 6 of section 1304 of the real property
actions and proceedings law, subdivision 1 as amended and subdivision 6
as added by chapter 155 of the laws of 2012, and subdivisions 2 and 5 as
added by chapter 472 of the laws of 2008, subdivision 2 and paragraph
(f) of subdivision 5 as further amended by section 104 of part A of
chapter 62 of the laws of 2011, are amended to read as follows:
1. Notwithstanding any other provision of law, with regard to a high-
cost home loan, as such term is defined in section six-l of the banking
law, a subprime home loan or a non-traditional home loan, at least nine-
ty days before a lender or a mortgage loan servicer commences legal
action against the borrower, including mortgage foreclosure, the lender
or mortgage loan servicer shall give notice to the borrower(S) AT THE
PROPERTY ADDRESS AND ANY OTHER ADDRESS OF RECORD in at least fourteen-
point type which shall include the following:
"YOU [COULD LOSE YOUR HOME] MAY BE AT RISK OF
FORECLOSURE. PLEASE READ THE FOLLOWING NOTICE CAREFULLY"
"As of ___, your home loan is ___ days AND DOLLARS in default.
Under New York State Law, we are required to send you this notice to
inform you that you are at risk of losing your home. [You can cure this
default by making the payment of _____ dollars by ____.] THERE MAY BE
OPTIONS AVAILABLE TO YOU TO KEEP YOUR HOME. THIS MAY INCLUDE APPLYING
FOR A LOAN MODIFICATION OF YOUR MORTGAGE, OR REINSTATING YOUR LOAN BY
MAKING THE PAYMENT.
[If you are experiencing financial difficulty, you should know that
there are several options available to you that may help you keep your
home.] Attached to this notice is a list of government approved housing
counseling agencies in your area which provide free or very low-cost
counseling. [You should consider contacting one of these agencies imme-
diately. These agencies specialize in helping homeowners who are facing
financial difficulty. Housing counselors can help you assess your finan-
cial condition and work with us to explore the possibility of modifying
your loan, establishing an easier payment plan for you, or even working
out a period of loan forbearance.] YOU CAN ALSO CALL THE NYS OFFICE OF
THE ATTORNEY GENERAL'S HOMEOWNER PROTECTION PROGRAM (HOPP) TOLL-FREE
CONSUMER HOTLINE TO BE CONNECTED TO FREE HOUSING COUNSELING SERVICES IN
YOUR AREA AT 1-855-HOME-456 (1-855-466-3456), OR VISIT THEIR WEBSITE AT
HTTP://WWW.AGHOMEHELP.COM/. A STATEWIDE LISTING BY COUNTY IS ALSO AVAIL-
ABLE AT HTTP://WWW.DFS.NY.GOV/CONSUMER/MORTG NYS NP COUNSELING AGEN-
CIES.HTM. QUALIFIED FREE HELP IS AVAILABLE; WATCH OUT FOR COMPANIES OR
PEOPLE WHO CHARGE A FEE FOR THESE SERVICES.
HOUSING COUNSELORS FROM NEW YORK-BASED AGENCIES LISTED ON THE WEBSITE
ABOVE ARE TRAINED TO HELP HOMEOWNERS WHO ARE HAVING PROBLEMS MAKING
THEIR MORTGAGE PAYMENTS AND CAN HELP YOU FIND THE BEST OPTION FOR YOUR
SITUATION. If you wish, you may also contact us directly at __________
and ask to discuss possible options.
While we cannot assure that a mutually agreeable resolution is possi-
ble, we encourage you to take immediate steps to try to achieve a resol-
ution. The longer you wait, the fewer options you may have.
If [this matter is not resolved] YOU HAVE NOT TAKEN ANY ACTIONS TO
RESOLVE THIS MATTER within 90 days from the date this notice was mailed,
we may commence legal action against you (or sooner if you cease to live
in the dwelling as your primary residence.)
If you need further information, please call the New York State
Department of Financial Services' toll-free helpline at (show number) or
visit the Department's website at (show web address)".
S. 8159 42
IMPORTANT: YOU HAVE THE RIGHT TO REMAIN IN YOUR HOME UNTIL YOU RECEIVE
A COURT ORDER TELLING YOU TO LEAVE THE PROPERTY. IF A FORECLOSURE ACTION
IS FILED AGAINST YOU IN COURT, YOU STILL HAVE THE RIGHT TO REMAIN IN THE
HOME UNTIL A COURT ORDERS YOU TO LEAVE. YOU LEGALLY REMAIN THE OWNER OF
AND ARE RESPONSIBLE FOR THE PROPERTY UNTIL THE PROPERTY IS SOLD BY YOU
OR BY ORDER OF THE COURT AT THE CONCLUSION OF ANY FORECLOSURE
PROCEEDINGS. THIS NOTICE IS NOT AN EVICTION NOTICE, AND A FORECLOSURE
ACTION HAS NOT YET BEEN COMMENCED AGAINST YOU.
2. Such notice shall be sent by the lender or mortgage loan servicer
to the borrower, by registered or certified mail and also by first-class
mail to the last known address of the borrower, and [if different,] to
the residence which is the subject of the mortgage. Notice is considered
given as of the date it is mailed. The notice shall contain a CURRENT
list of [at least five] United States department of housing and urban
development approved housing counseling agencies, or other housing coun-
seling agencies [as designated by the division of housing and community
renewal, that serve the region where the borrower resides.] SERVING THE
COUNTY WHERE THE PROPERTY IS LOCATED FROM THE MOST RECENT LISTING AVAIL-
ABLE FROM THE DEPARTMENT OF FINANCIAL SERVICES. The list shall include
the counseling agencies' last known addresses and telephone numbers. The
department of financial services [and/or the division of housing and
community renewal] shall make available a listing, by [region] COUNTY,
of such agencies which the lender or mortgage loan servicer may use to
meet the requirements of this section.
[5.] 6. (a) "Annual percentage rate" means the annual percentage rate
for the loan calculated according to the provisions of the Federal
Truth-in-Lending Act (15 U.S.C. S 1601, et seq.), and the regulations
promulgated thereunder by the federal reserve board (as said act and
regulations are amended from time to time).
(b) "Home loan" means a home loan, including an open-end credit plan,
other than a reverse mortgage transaction, in which:
(i) The principal amount of the loan at origination did not exceed the
conforming loan size that was in existence at the time of origination
for a comparable dwelling as established by the federal national mort-
gage association;
(ii) The borrower is a natural person;
(iii) The debt is incurred by the borrower primarily for personal,
family, or household purposes;
(iv) The loan is secured by a mortgage or deed of trust on real estate
upon which there is located or there is to be located a structure or
structures intended principally for occupancy of from one to four fami-
lies which is or will be occupied by the borrower as the borrower's
principal dwelling; and
(v) The property is located in this state.
(c) "Subprime home loan" for the purposes of this section, means a
home loan consummated between January first, two thousand three and
September first, two thousand eight in which the terms of the loan
exceed the threshold as defined in paragraph (d) of this subdivision. A
subprime home loan excludes a transaction to finance the initial
construction of a dwelling, a temporary or "bridge" loan with a term of
twelve months or less, such as a loan to purchase a new dwelling where
the borrower plans to sell a current dwelling within twelve months, or a
home equity line of credit.
(d) "Threshold" means, for a first lien mortgage loan, the annual
percentage rate of the home loan at consummation of the transaction
exceeds three percentage points over the yield on treasury securities
S. 8159 43
having comparable periods of maturity to the loan maturity measured as
of the fifteenth day of the month in which the loan was consummated; or
for a subordinate mortgage lien, the annual percentage rate of the home
loan at consummation of the transaction equals or exceeds five percent-
age points over the yield on treasury securities having comparable peri-
ods of maturity on the fifteenth day of the month in which the loan was
consummated; as determined by the following rules: if the terms of the
home loan offer any initial or introductory period, and the annual
percentage rate is less than that which will apply after the end of such
initial or introductory period, then the annual percentage rate that
shall be taken into account for purposes of this section shall be the
rate which applies after the initial or introductory period.
(e) "Non-traditional home loan" shall mean a payment option adjustable
rate mortgage or an interest only loan consummated between January
first, two thousand three and September first, two thousand eight.
(f) For purposes of determining the threshold, the department of
financial services shall publish on its website a listing of constant
maturity yields for U.S. Treasury securities for each month between
January first, two thousand three and September first, two thousand
eight, as published in the Federal Reserve Statistical Release on
selected interest rates, commonly referred to as the H.15 release, in
the following maturities, to the extent available in such release: six
month, one year, two year, three year, five year, seven year, ten year,
thirty year.
(g) "Lender" means a mortgage banker as defined in paragraph (f) of
subdivision one of section five hundred ninety of the banking law or an
exempt organization as defined in paragraph (e) of subdivision one of
section five hundred ninety of the banking law.
[6.] 7. The department of financial services shall prescribe the tele-
phone number and web address to be included in the notice.
S 8. Subdivision 1 of section 1351 of the real property actions and
proceedings law, as added by chapter 312 of the laws of 1962, is amended
to read as follows:
1. The judgment shall direct that the mortgaged premises, or so much
thereof as may be sufficient to discharge the mortgage debt, the
expenses of the sale and the costs of the action, and which may be sold
separately without material injury to the parties interested, be sold by
or under the direction of the sheriff of the county, or a referee WITHIN
NINETY DAYS OF THE DATE OF THE JUDGMENT.
S 9. Subdivision 1 of section 1353 of the real property actions and
proceedings law, as added by chapter 312 of the laws of 1962, is amended
to read as follows:
1. After the property has been sold, the officer conducting the sale
shall execute a deed to the purchaser. The plaintiff, or any other
party, may become a purchaser. IF THE PLAINTIFF (OR ITS AFFILIATE, AS
DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION SIX-L OF THE
BANKING LAW) IS THE PURCHASER, SUCH PARTY SHALL PLACE THE PROPERTY BACK
ON THE MARKET FOR SALE OR OTHER OCCUPANCY: (A) WITHIN ONE HUNDRED EIGHTY
DAYS OF THE EXECUTION OF THE DEED OF SALE, OR (B) WITHIN NINETY DAYS OF
COMPLETION OF CONSTRUCTION, RENOVATION, OR REHABILITATION OF THE PROPER-
TY, PROVIDED THAT SUCH CONSTRUCTION, RENOVATION, OR REHABILITATION
PROCEEDED DILIGENTLY TO COMPLETION, WHICHEVER COMES FIRST, PROVIDED
HOWEVER, A COURT OF COMPETENT JURISDICTION MAY GRANT AN EXTENSION FOR
GOOD CAUSE.
S 10. No local law, ordinance, or resolution shall impose a duty to
maintain or register vacant and abandoned property as defined in section
S. 8159 44
1309 of the real property actions and proceedings law in a manner incon-
sistent with the provisions of this act that are related to maintenance
as provided under subdivision 3, 4, 5, 6 and 7 of section 1308 of the
real property actions and proceedings law, or registration as provided
under section 1310 of the real property actions and proceedings law, or
establish related penalties or other monetary obligation, with respect
to a state or federally chartered bank, savings bank, savings and loan
association or credit union that originates, owns, services or maintains
mortgages related to such property.
No local law, ordinance, or resolution shall impose a duty to maintain
vacant and abandoned property upon any state or federally chartered
bank, savings bank, savings and loan association or credit union that
originates, owns, services or maintains mortgages related to such prop-
erty for which the provisions of this act, pursuant to the opening para-
graph of section 1308 of the real property actions and proceedings law
as added by section one of this act, do not apply.
S 11. This act shall take effect on the one hundred eightieth day
after it shall have become a law; provided, however, that:
(a) The amendments to subdivision (a) of rule 3408 of the civil prac-
tice law and rules made by section two of this act shall be subject to
the expiration and reversion of such subdivision pursuant to chapter 507
of the laws of 2009, as amended, when upon such date the provisions of
section three of this act shall take effect; and
(b) The amendments to subdivisions 1, 2, 5 and 6 of section 1304 of
the real property actions and proceedings law made by section six of
this act shall be subject to the expiration and reversion of such subdi-
visions pursuant to chapter 507 of the laws of 2009, as amended, when
upon such date the provisions of section seven of this act shall take
effect.
S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
S 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through Q of this act shall be
as specifically set forth in the last section of such Parts.
