NY State Senate Bill 2017-S1072

Senate Bill S1072

2017-2018 Legislative Session

Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more

download bill text pdf

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to housing, construction and community development
Mar 27, 2017	recalled from assembly
Jan 06, 2017	referred to housing, construction and community development

2017-S1072 (ACTIVE) - Details

See Assembly Version of this Bill:: A5953
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1325, RPAP L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5562
2015-2016: S1425, A7340
2019-2020: S481, A2178
2021-2022: S2536, A5980
2023-2024: S2954
2025-2026: S3823

2017-S1072 (ACTIVE) - Summary

Provides for the appointment of foreclosure receivers and managing agents in cities having a population of one million or more.

2017-S1072 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1072

 TITLE OF BILL :  An act to amend the real property actions and
proceedings law, in relation to the appointment of receivers in
actions to foreclose a mortgage

 PURPOSE :

Enables agencies with the jurisdictional power to administer and
enforce the statutes, laws, rules and regulations, relating to the
operation, repair and maintenance of residential real property to
appoint a list of qualified potential receivers or managing agents.

 SUMMARY OF PROVISIONS :

Subdivision one of section 1325 of the real property actions and
proceedings law is amended by the addition of section (b). The new
sections requires that cities with a population of one million or more
persons give authority to appropriate agency to create a list of
potential receivers or managing agents.

 JUSTIFICATION :

At the height of the housing boom, speculators purchased multi-family
housing at inflated prices using unrealistic expectations of future
revenue. This has led to situations where owners cannot afford to pay

the debt service on the large loans they took out. Many tenants now
find their buildings to be in significant disrepair as owners have cut
back on maintenance as well.

When a property enters foreclosure, the judge appoints a receiver to
manage the property during the foreclosure process. Currently, judges
have complete discretion which maybe at no fault of the judge, can
lead to receivers that are not prepared or qualified to manage
distressed multifamily property. This leads bad properties to languish
in disrepair or decent properties to decline.

This piece of legislation will allow appropriate agencies to state who
they find qualified to be receivers or managing agents. This list
would hold these agencies accountable for their appointments, which is
not the case currently. This ensures that those who are appointed as
receivers or managing agents are qualified individuals.

 LEGISLATIVE HISTORY :

2013-2014: S5562
2015-2016: S1425

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S1072 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1072
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN  ACT  to  amend  the  real  property  actions and proceedings law, in
   relation to the appointment of receivers in  actions  to  foreclose  a
   mortgage

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1325 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. (A) Where the action is for the foreclosure of a mortgage providing
 that a receiver may be appointed without notice, notice of a motion  for
 such appointment shall not be required.
   (B)  IN  A  CITY  WITH A POPULATION OF ONE MILLION OR MORE, THE AGENCY
 HAVING JURISDICTION FOR ADMINISTERING AND ENFORCING THE LAWS, RULES  AND
 REGULATIONS RELATING TO THE OPERATION, REPAIR OR MAINTENANCE OF RESIDEN-
 TIAL  REAL  PROPERTY MAY SUBMIT TO THE CHIEF ADMINISTRATIVE JUDGE OF THE
 SUPREME COURT A LIST OF PERSONS SUCH AGENCY HAS DETERMINED TO BE  QUALI-
 FIED  TO  BE APPOINTED AS A RECEIVER OR AS A MANAGING AGENT.  WHERE SUCH
 AGENCY SUBMITS SUCH LIST TO THE CHIEF ADMINISTRATIVE  JUDGE,  THE  COURT
 MAY  ONLY  APPOINT  A RECEIVER WHOSE NAME APPEARS ON SUCH LIST, AND SUCH
 RECEIVER MAY ONLY APPOINT A MANAGING AGENT WHOSE NAME  APPEARS  ON  SUCH
 LIST.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02112-01-7

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