NY State Senate Bill 2017-S6172

Senate Bill S6172

2017-2018 Legislative Session

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to judiciary
May 11, 2017	referred to judiciary

2017-S6172 (ACTIVE) - Details

See Assembly Version of this Bill:: A1423
Current Committee:: Senate Judiciary
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1972, RPAP L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A6161
2011-2012: A636
2013-2014: A854
2015-2016: A157
2019-2020: S4493, A5617
2021-2022: S271
2023-2024: S2389

2017-S6172 (ACTIVE) - Summary

Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance.

2017-S6172 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6172

 TITLE OF BILL :

An act to amend the real property actions and proceedings law, in
relation to title to an abandoned multiple dwelling in a city, town or
village

 PURPOSE OF BILL :

This bill amends the real property actions and proceedings law, to
require a mortgagee or lienor who institutes proceedings to foreclose,
to have a receiver appointed and ordered to enter into an agreement
with the appropriate agency to repair and correct violations of
housing maintenance laws, or alternatively to take possession of the
premises themselves and enter into a repair agreement with the city
agency to prevent the agency from taking title to an abandoned
building.

 JUSTIFICATION :

The purpose of the abandoned building law (article 19-A of the real
property actions and proceedings law) is to allow the city government
to take title to buildings to ensure they are properly managed after
abandonment. An owner may block such proceedings by resuming
management and undertaking repairs. If the owner does not make

repairs, then mortgagees and lienors may stop article 19-A proceedings
by merely starting a foreclosure action. However, current law does not
require the mortgagee or lienor to follow through with the foreclosure
action or ensure that someone is appointed and empowered to manage the
building.

In order to correct this situation, this bill would require the
mortgagee or lienor to proceed with the foreclosure action and have a
receiver appointed who must reach a repair agreement with the housing
and development administration, or alternatively such mortgagee or
lienor may formally take possession and enter into such an agreement.
This will ensure that, in fact, the building will be effectively
managed and repaired.

 LEGISLATIVE HISTORY :

2015-16: A.157 - A. Judi
2013-14: A.854/3.2264 - A.Cal/S. Judi
2011-12: A.636/8.696 - A. Cal/S. Judi
2010: A.6161-A/S.8100-A - A. Cal/S. Cal
2009: A.6161- A. Judi
2007-08: A.6419 - A. Judi
2005-06: A.5768/S.3554 - A. Judi/S. Judi
2003-04: A.6640/S.542 - A. Judi/S. Judi
2002: A.7748/S.7002 - A.  Judi/S. Judi
2001: A.7748 - A. Judi
2000: A.7458 - A. Cal
1999:  A.7458 - A. Judi
1997-98: A.7764 - A. Cal

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
This act shall take effect on the 120th day after it shall have become
a law and shall apply to proceedings commenced on or after such date.

2017-S6172 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6172
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 11, 2017
                                ___________
 
 Introduced  by Sen. HAMILTON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation to title to an abandoned multiple dwelling in a city, town or
   village

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Subdivision 3 of section 1972 of the real property actions
 and proceedings law, as added by chapter 864 of the  laws  of  1973,  is
 amended to read as follows:
   3.  Within  five days of the service of notice on the owner, a copy of
 the certification shall be served on each mortgagee, lienor  and  lessee
 of  record, personally or by registered mail to the address set forth in
 the recorded instrument or, if no address appears therein, to the person
 at whose request the instrument was recorded.  Such copy shall,  in  the
 case  of  a  mortgagee  or  lienor,  be  accompanied  by  a  notice that
 proceedings pursuant to this article may be instituted unless the  mort-
 gagee  or  lienor,  within  fifteen  days  of  such  mailing, either (A)
 commences proceedings to foreclose the mortgage or lien  AND  MOVES  FOR
 THE  APPOINTMENT OF A RECEIVER WHICH BRINGS THE BUILDING INTO COMPLIANCE
 WITH THE APPLICABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM  THE  DATE
 OF  APPOINTMENT OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY AGREEMENT
 WITH THE DEPARTMENT or [enters into an agreement with the department  to
 bring  the building] (B) TAKES POSSESSION OF THE PREMISES AS PROVIDED IN
 THE MORTGAGE AND BRINGS THE BUILDING into compliance with the applicable
 provisions of law WITHIN NINETY DAYS FROM THE DATE OF TAKING  POSSESSION
 OR  SUCH  LONGER  PERIOD  AS  MAY  BE  ESTABLISHED BY AGREEMENT WITH THE
 DEPARTMENT.  THE DEPARTMENT MAY, NOTWITHSTANDING ANYTHING TO THE CONTRA-
 RY IN THIS SUBDIVISION, INSTITUTE PROCEEDINGS PURSUANT TO  THIS  ARTICLE
 IF:    (I) THE APPLICATION FOR APPOINTMENT OF A RECEIVER IS DENIED, (II)
 THE RECEIVER FAILS TO BRING THE BUILDING INTO COMPLIANCE WITH THE APPLI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02826-01-7

 S. 6172                             2
 
 CABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE OF  APPOINTMENT
 OR  SUCH  LONGER  PERIOD  AS  MAY  BE  ESTABLISHED BY AGREEMENT WITH THE
 DEPARTMENT; OR (III) THE MORTGAGEE OR  LIENOR  IN  POSSESSION  FAILS  TO
 BRING THE BUILDING INTO COMPLIANCE WITH THE APPLICABLE PROVISIONS OF LAW
 WITHIN  NINETY  DAYS  FROM  THE DATE OF TAKING POSSESSION OR SUCH LONGER
 PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT.
   § 2.  This act shall take effect on  the  one  hundred  twentieth  day
 after  it  shall  have  become  a  law  and  shall  apply to proceedings
 commenced on or after such date.

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