S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5890
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 24, 2023
                                ___________
 
 Introduced  by  M. of A. FAHY -- read once and referred to the Committee
   on Judiciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation to authorizing municipalities and the department of financial
   services  to  seek civil penalties for violations of the duty to main-
   tain a foreclosed property

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 1307 of the real property actions and proceedings
 law is amended by adding a new subdivision 3-a to read as follows:
   3-A. (A) IN ADDITION TO THE RIGHTS TO ENFORCE CERTAIN OBLIGATIONS  AND
 RECOVER  CERTAIN  COSTS  PURSUANT  TO SUBDIVISION THREE OF THIS SECTION,
 VIOLATIONS OF THIS SECTION BY A  PLAINTIFF  IN  A  MORTGAGE  FORECLOSURE
 ACTION  MAY  BE BROUGHT BEFORE A HEARING OFFICER OR A COURT OF COMPETENT
 JURISDICTION BY AN ENTITY AUTHORIZED PURSUANT TO PARAGRAPH (B) OR (C) OF
 THIS SUBDIVISION. IF IT SHALL APPEAR TO THE SATISFACTION OF SUCH HEARING
 OFFICER OR COURT, BASED ON THE PREPONDERANCE OF THE EVIDENCE, THAT  SUCH
 PLAINTIFF  HAS  VIOLATED  THIS SECTION, A CIVIL PENALTY MAY BE ISSUED BY
 SUCH HEARING OFFICER OR COURT IN  THE  AMOUNT  OF  UP  TO  FIVE  HUNDRED
 DOLLARS PER DAY FOR EACH DAY SUCH VIOLATION PERSISTED AFTER THE JUDGMENT
 OF FORECLOSURE HAS BEEN ISSUED.
   (B)  THE  SUPERINTENDENT OF FINANCIAL SERVICES MAY, AS APPROPRIATE AND
 IN HIS OR HER SOLE DISCRETION, PURSUE ANY SUSPECTED  VIOLATION  OF  THIS
 SECTION  BY  A PLAINTIFF IN A MORTGAGE FORECLOSURE ACTION. BEFORE TAKING
 SUCH ACTION, THE SUPERINTENDENT OF FINANCIAL SERVICES  SHALL  GIVE  SUCH
 PLAINTIFF AT LEAST SEVEN DAYS' NOTICE OF SUCH VIOLATION.
   (C)  THE  MUNICIPALITY  IN  WHICH  SUCH  RESIDENTIAL  REAL PROPERTY IS
 LOCATED SHALL HAVE THE RIGHT TO ENFORCE  THE  OBLIGATIONS  DESCRIBED  IN
 THIS SECTION IN ANY COURT OF COMPETENT JURISDICTION AFTER AT LEAST SEVEN
 DAYS'  NOTICE  TO  THE  PLAINTIFF IN THE MORTGAGE FORECLOSURE ACTION FOR
 SUCH PROPERTY,  UNLESS  SUCH  PROPERTY  REQUIRES  EMERGENCY  REPAIRS  TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10031-01-3
              

 A. 5890                             2
 
 ADDRESS A THREAT TO PUBLIC HEALTH, SAFETY OR WELFARE, IN WHICH CASE SUCH
 MUNICIPALITY  MAY ENTER AND MAINTAIN SUCH PROPERTY TO CURE SUCH EMERGEN-
 CY, PROVIDED HOWEVER, NOTICE SHALL BE PROVIDED TO SUCH PLAINTIFF AS SOON
 AS PRACTICABLE. SUCH MUNICIPALITY SHALL PROVIDE THE DEPARTMENT OF FINAN-
 CIAL SERVICES WITH WRITTEN NOTICE AT LEAST TEN DAYS PRIOR TO BRINGING AN
 ACTION  PURSUANT TO THIS SUBDIVISION; PROVIDED, HOWEVER, THAT FAILURE TO
 COMPLY WITH SUCH NOTICE REQUIREMENT SHALL NOT BE A DEFENSE  AGAINST  THE
 ACTION  PURSUANT  TO  THIS  SUBDIVISION.  THE AUTHORITY PROVIDED BY THIS
 SUBDIVISION SHALL BE IN ADDITION TO, AND SHALL NOT BE DEEMED TO DIMINISH
 OR REDUCE, ANY RIGHTS OF THE PARTIES DESCRIBED  IN  THIS  SECTION  UNDER
 EXISTING  LAW AGAINST THE PLAINTIFF FOR FAILURE TO MAINTAIN SUCH PROPER-
 TY.  ANY CIVIL PENALTY IMPOSED PURSUANT TO PARAGRAPH (A) OF THIS  SUBDI-
 VISION IN AN ACTION BROUGHT BY A MUNICIPALITY PURSUANT TO THIS PARAGRAPH
 SHALL BE RETAINED BY SUCH MUNICIPALITY.
   (D)  THE  DEPARTMENT  OF  FINANCIAL  SERVICES  SHALL BE AUTHORIZED AND
 EMPOWERED TO ADOPT SUCH RULES AND REGULATIONS AS MAY, IN THE JUDGMENT OF
 THE SUPERINTENDENT OF FINANCIAL SERVICES, BE NECESSARY FOR THE EFFECTIVE
 IMPLEMENTATION,  ADMINISTRATION,  OPERATION  AND  ENFORCEMENT  OF   THIS
 SECTION.
   § 2. This act shall take effect immediately.