NY State Senate Bill 2017-S5800

Senate Bill S5800

2017-2018 Legislative Session

Relates to inspecting, securing and maintaining vacant and abandoned residential real property

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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
May 01, 2017	referred to housing, construction and community development

co-Sponsors

2017-S5800 (ACTIVE) - Details

See Assembly Version of this Bill:: A6470
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1308, RPAP L
Versions Introduced in 2019-2020 Legislative Session:: S4182, A1800

2017-S5800 (ACTIVE) - Summary

Requires a servicer in a mortgage foreclosure action of residential real property to pay homeowners' association or cooperative fees as needed to maintain the property.

2017-S5800 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5800

 TITLE OF BILL :  An act to amend the real property actions and
proceedings law, in relation to inspecting, securing and maintaining
vacant and abandoned residential property

 PURPOSE :

To require mortgage holders of vacant and abandoned residential
properties that are part of a homeowners association (HOA)or co-op to
continue paying HOA or cooperative fees when a property has been
abandoned during the foreclosure process.

 SUMMARY OF PROVISIONS :

Section 1: Amends § 1308(4) of the Real Property Actions and
Proceedings Law by adding new subdivision (k) to require holders of
mortgages on vacant and abandoned residential properties to continue
paying HOA and cooperative fees during the pending foreclosure, if
applicable.

Section 2: Establishes the effective date.

 JUSTIFICATION :

Vacant and abandoned residential properties have become a significant

issue in New York. Many times these properties are abandoned by their
owner during a pending foreclosure. These properties then become
"zombie properties" with no entity responsible for their upkeep during
the pending foreclosure. Often these properties become dilapidated and
blighted before the foreclosure is finalized.

In 2016, the Legislature passed Chapter 73 of the Laws of 2016 that
required the holders of mortgages on "zombie properties" to take
responsibility for the upkeep and securing of these properties. While
the law is focused on single-family houses, condominiums and co-ops
are also subject to becoming "zombie properties". Maintenance and
upkeep are often handled through a homeowners association. When a
condo or co-op is abandoned by an owner, they stop paying HOA fees.

This places a financial burden on the HOA who must maintain the
abandoned property to prevent damage or deterioration to other
properties in the association.  This legislation would amend Chapter
73 of 2016 to require mortgage holders to pay HOA or co-op fees as
part of their duty to maintain abandoned properties they still hold
mortgages on. This will ensure that HOAs and coop associations are
able to maintain these properties during the pending foreclosure,
preventing physical or economic damage to the other properties in the
association.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S5800 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5800
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 1, 2017
                                ___________
 
 Introduced by Sen. MARCHIONE -- 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 inspecting, securing and maintaining vacant and abandoned
   residential property

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 4 of section 1308 of the real property actions
 and proceedings law, as added by section 1 of part Q of  chapter  73  of
 the laws of 2016, is amended to read as follows:
   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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10242-01-7

 S. 5800                             2
 
   (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; AND
   (K) PAY HOMEOWNERS' ASSOCIATION OR COOPERATIVE FEES AS NEEDED TO MAIN-
 TAIN THE PROPERTY.
   § 2. This act shall take effect immediately.

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Senate Bill S5800

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Sponsored By

Kathleen A. Marchione