S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    885
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation to notice to tenants in mortgage foreclosure actions

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 2 and 3 of section 1305 of the  real  property
 actions  and  proceedings  law,  as  added by chapter 507 of the laws of
 2009, are amended to read as follows:
   2. Notwithstanding any other provision of law, a tenant of a unit  not
 subject  to  rent  control or rent stabilization shall have the right to
 remain in occupancy of the unit of the subject residential real property
 where he or she resides on the date of [mailing] SERVICE of  the  notice
 required  by subdivision three of this section for the greater of: (a) a
 period of ninety days from the date of the  [mailing]  SERVICE  of  such
 notice;  or  (b) for the remainder of the lease term IF THE TENANT OCCU-
 PIED THE PREMISES AT THE  COMMENCEMENT  OF  THE  FORECLOSURE  ACTION  OR
 RECEIVED  A  NOTICE  PURSUANT  TO SECTION THIRTEEN HUNDRED THREE OF THIS
 ARTICLE; OR (C) FOR THE REMAINDER OF THE LEASE TERM, PROVIDED  THAT  THE
 LEASE AGREEMENT WAS ENTERED INTO IN  GOOD FAITH PURSUANT TO THIS SECTION
 AND FEDERAL LAW, UP TO A MAXIMUM OF THREE YEARS, FOR TENANTS WHO DID NOT
 OCCUPY  THE  PREMISES  AT THE COMMENCEMENT OF THE FORECLOSURE ACTION AND
 THEREFORE DID NOT RECEIVE THE ORIGINAL NOTICE OF SERVICE REQUIRED PURSU-
 ANT TO SECTION THIRTEEN HUNDRED THREE OF THIS ARTICLE; provided that  if
 a  successor  in  interest  who  acquires title to such residential real
 property intends to occupy a single unit as his or her primary residence
 and the unit is not subject to a federal or state  statutory  system  of
 subsidy  or  other  federal or state statutory scheme, the successor may
 limit for one unit only, the tenant's right of occupancy to ninety days.
 For a lease to qualify under this subdivision,  the  tenant  under  such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD07178-01-1

 S. 885                              2
 
 lease  may  not  be the owner of the residential real property, and such
 lease must require the payment  of  rent  for  such  unit  that  is  not
 substantially  less  than  the fair market rent for the unit, unless the
 unit is subject to federal or state statutory system of subsidy or other
 federal  or  state statutory scheme.  A tenant under paragraph (a) [or],
 (b), OR (C) of this subdivision shall continue such tenancy  SUBJECT  TO
 ANY  LIMITATIONS IN THIS SUBDIVISION under the same terms and conditions
 as were in effect at the time of entry of the  judgment  of  foreclosure
 and  sale, or if no such judgment was entered, upon the terms and condi-
 tions that were in effect at the time of the transfer  of  ownership  of
 such  property.  For  purposes of this section, "fair market rent" shall
 mean rent for a unit of  residential  real  property  of  similar  size,
 location and condition.
   3.  Notwithstanding  any  other  provision of law, and consistent with
 subdivision two of this section, a successor in interest of  residential
 real  property  shall  provide written notice to all tenants IN THE SAME
 MANNER AS REQUIRED BY SUBDIVISION FOUR OF SECTION THIRTEEN HUNDRED THREE
 OF THIS ARTICLE: (a) that they are entitled to remain  in  occupancy  of
 such property for the remainder of the lease term, or a period of ninety
 days  from  the date of mailing of such notice, whichever is greater, on
 the same terms and conditions as were in effect at the time of entry  of
 the  judgment  of  foreclosure  and  sale,  or  if  no such judgment was
 entered, upon the terms and conditions as were in effect at the time  of
 transfer  of ownership of such property; and (b) of the name and address
 of the new owner. Any person or entity who or which becomes a  successor
 in  interest after the issuance of the ninety-day notice provided for in
 this subdivision, shall notify all tenants of its name and  address  and
 shall  assume  such interest subject to the right of the tenant to main-
 tain possession as provided in this subdivision.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter  of  the  laws of 2020 amending the real property
 actions and proceedings law relating to the definition of  "tenant"  for
 purposes  of  mortgage  foreclosures,  as  proposed in legislative bills
 numbers S. 5357 and A. 6370, take effect.