S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6143
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Judiciary
 
 AN ACT to amend the administrative code of the  city  of  New  York,  in
   relation  to  requiring notification by mortgagees commencing foreclo-
   sure actions to aid in the identification and improvements of  at-risk
   properties

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 27-2109.1 of the administrative code of the city of
 New York is amended by adding a new subdivision d to read as follows:
   D. 1. ANY MORTGAGEE THAT COMMENCES AN ACTION IN A COURT  OF  COMPETENT
 JURISDICTION  IN  THE  STATE  OF  NEW  YORK TO FORECLOSE A MORTGAGE ON A
 MULTIPLE DWELLING WITH TEN OR MORE UNITS SHALL PROVIDE WRITTEN NOTICE TO
 THE DEPARTMENT WITHIN FIFTEEN DAYS OF SERVICE OF THE PLEADINGS  COMMENC-
 ING  SUCH ACTION. IF SUCH ACTION WAS COMMENCED BEFORE THE EFFECTIVE DATE
 OF THE LOCAL LAW THAT ADDED THIS SECTION, AND REMAINS PENDING AS OF SUCH
 EFFECTIVE DATE, NOTIFICATION SHALL BE PROVIDED  WITHIN  THIRTY  DAYS  OF
 SUCH  EFFECTIVE  DATE. FOR PURPOSES OF THIS SUBDIVISION DEPARTMENT SHALL
 MEAN THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT.
   2. SUCH NOTICE SHALL INCLUDE, BUT IS NOT  LIMITED  TO,  THE  FOLLOWING
 INFORMATION:  (I)  THE  NAME  OF THE MORTGAGEE PLAINTIFF COMMENCING SUCH
 ACTION AND THE MAILING ADDRESS, TELEPHONE NUMBER AND E-MAIL  ADDRESS  OF
 SUCH  MORTGAGEE PLAINTIFF, AND, WHEN APPLICABLE, THE NAME OF A PRINCIPAL
 OR CORPORATE OFFICER  OF  SUCH  MORTGAGEE  PLAINTIFF,  AND  THE  MAILING
 ADDRESS, TELEPHONE NUMBER AND E-MAIL ADDRESS OF SUCH PRINCIPAL OR CORPO-
 RATE  OFFICER;  (II)  THE  NAME,  MAILING  ADDRESS, TELEPHONE NUMBER AND
 E-MAIL ADDRESS OF THE DEFENDANT IN SUCH ACTION; (III) THE IDENTIFICATION
 OF SUCH RESIDENTIAL REAL PROPERTY BY STREET ADDRESS AND  BLOCK  AND  LOT
 NUMBER;  (IV) THE DATE OF THE COMMENCEMENT OF SUCH ACTION; (V) THE COURT
 IN WHICH SUCH ACTION WAS COMMENCED AND THE INDEX NUMBER OF SUCH  ACTION;
 (VI) THE PROPERTY'S APPRAISED FAIR MARKET VALUE; (VII) THE AMOUNT OF THE
 PRINCIPAL  BALANCE  OWED  UNDER THE MORTGAGE BEING FORECLOSED, INCLUDING
 INTEREST AND PRINCIPAL ARREARS, LATE FEES AND ANY  OTHER  SUMS  DUE  AND
 OWING  AS  OF  THE  DATE OF FILING OF THE COMPLAINT; (VIII) THE INTEREST
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07967-01-7

 A. 6143                             2
 
 RATE AND MATURITY DATE OF THE MORTGAGE BEING FORECLOSED,  INCLUDING  THE
 AMOUNT,  IF  ANY,  NECESSARY TO BRING THE LOAN CURRENT AS OF THE DATE OF
 FILING OF THE COMPLAINT; (IX) A LIST, INCLUDING AMOUNTS,  OF  ANY  OTHER
 INDEBTEDNESS ON THE RESIDENTIAL REAL PROPERTY THAT IS THE SUBJECT OF THE
 FORECLOSURE  ACTION  AS SET FORTH IN THE PLEADINGS; (X) WHETHER THERE IS
 ANY GOVERNMENT INVESTMENT IN THE PROPERTY; (XI) WHETHER  THERE  ARE  ANY
 OUTSTANDING MUNICIPAL ARREARS; (XII) WHETHER SUCH PROPERTY HAS A CERTIF-
 ICATE  OF  OCCUPANCY;  (XIII)  ANY  CODE  VIOLATIONS  THAT  THE PROPERTY
 CURRENTLY HAS; AND (XIV) SUCH OTHER INFORMATION AS  THE  DEPARTMENT  MAY
 REQUIRE BY RULE.
   3.  THE  DEPARTMENT  SHALL  THEN  MAKE A DETERMINATION OF WHETHER SUCH
 PROPERTY BEING FORECLOSED ON IS AN "AT-RISK"  PROPERTY.  IN  MAKING  ITS
 DETERMINATION  THE  DEPARTMENT SHALL CONSIDER SUBPARAGRAPHS (VI) THROUGH
 (XIII) OF PARAGRAPH TWO OF THIS SUBDIVISION, AND ANY  OTHER  INFORMATION
 THE  DEPARTMENT FINDS RELEVANT TO MAKING ITS DETERMINATION. FOR PURPOSES
 OF THIS SECTION AN "AT-RISK" PROPERTY SHALL MEAN A PROPERTY IN  PHYSICAL
 AND/OR FINANCIAL DISTRESS.
   4.  IN ANY FORECLOSURE PROCEEDING UNDER THIS SECTION WHERE THE DEPART-
 MENT HAS DECLARED THE PROPERTY TO BE AT-RISK, THE DEPARTMENT MAY MOVE TO
 HAVE A RECEIVER APPOINTED OR REPLACED. THE DEPARTMENT  SHALL  PROVIDE  A
 LIST  OF  APPROVED  RECEIVERS AND MANAGING AGENTS TO THE OFFICE OF COURT
 ADMINISTRATION WHICH SHALL REQUIRE THAT THE  COURT  APPOINT  A  RECEIVER
 FROM  SUCH  LIST WITHIN ONE HUNDRED EIGHTY DAYS AFTER THE EFFECTIVE DATE
 OF THIS SUBDIVISION. ANY RECEIVER OR MANAGING AGENTS  SHALL  BE  MADE  A
 PARTY TO THE FORECLOSURE PROCEEDINGS.
   5.  A MORTGAGEE SHALL NOTIFY THE DEPARTMENT WITHIN FIFTEEN DAYS OF THE
 DISCONTINUANCE OF AN ACTION FOR WHICH NOTICE PURSUANT TO  PARAGRAPH  ONE
 OF THIS SUBDIVISION HAS BEEN RECEIVED BY THE DEPARTMENT, THE ISSUANCE OF
 A  JUDGMENT IN SUCH ACTION, OR THE SALE OF THE REAL PROPERTY AS A RESULT
 OF SUCH ACTION.
   6. THE DEPARTMENT MAY COLLECT A TWO PERCENT FEE ON  THE  SALE  OF  THE
 REAL  PROPERTY AS A RESULT OF SUCH ACTION. SUCH MONIES SHALL BE PROVIDED
 TO THE RECEIVER FOR THE PURPOSES OF REHABILITATING  THE  PROPERTY,  WITH
 THE EXPENDED MONEY BECOMING A PRIORITY LIEN ON THE PROPERTY.
   §  2.  Section  27-2130  of the administrative code of the city of New
 York is amended to read as follows:
   § 27-2130 Grounds for appointment of receiver. 1. Whenever the depart-
 ment certifies that any condition in violation of this chapter or  other
 applicable  law  in  any  multiple  dwelling or any part of its premises
 constitutes a serious fire hazard or is a serious threat to life, health
 or safety, it may, upon failure of the owner to comply with an order  to
 correct  such  conditions  issued pursuant to section 27-2125 of article
 five of this subchapter, apply for the  appointment  of  a  receiver  to
 repair and correct the violations.
   2.  WHENEVER ANY MORTGAGEE COMMENCES AN ACTION IN A COURT OF COMPETENT
 JURISDICTION IN THE STATE OF NEW YORK  TO  FORECLOSE  A  MORTGAGE  ON  A
 MULTIPLE  DWELLING  WITH  TEN OR MORE UNITS AND WHERE THE DEPARTMENT HAS
 DECLARED THE PROPERTY BEING FORECLOSED ON TO BE  AN  "AT-RISK"  PROPERTY
 PURSUANT  TO  SECTION 27-2109.1 OF THIS CHAPTER, THE DEPARTMENT MAY MOVE
 TO HAVE A RECEIVER APPOINTED OR REPLACED. THE DEPARTMENT MAY  PROVIDE  A
 LIST  OF  APPROVED  RECEIVERS AND MANAGING AGENTS TO THE OFFICE OF COURT
 ADMINISTRATION WHICH SHALL REQUIRE THAT THE  COURT  APPOINT  A  RECEIVER
 FROM  SUCH  LIST. FOR PURPOSES OF THIS SUBDIVISION DEPARTMENT SHALL MEAN
 THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT.
   § 3. This act shall take effect immediately.