S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9780
 
                           I N  A S S E M B L Y
 
                               April 9, 2024
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Judiciary
 
 AN  ACT to amend the real property law and the real property actions and
   proceedings law, in relation to the foreclosure of  liens  for  unpaid
   assessments due to a homeowners' association or condominium board
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 339-aa of the real  property  law,  as  amended  by
 chapter 104 of the laws of 1992, is amended to read as follows:
   §  339-aa.  Lien  for  common charges; duration; foreclosure. The lien
 provided for in [the immediately preceding] section THREE HUNDRED  THIR-
 TY-NINE-Z  OF  THIS ARTICLE shall be effective from and after the filing
 in the office of the recording officer in which the declaration is filed
 a verified notice of lien stating the name (if any) and address  of  the
 property,  the  liber and page of record of the declaration, the name of
 the record owner of the unit,  the  unit  designation,  the  amount  and
 purpose  for  which  due,  and  the date when due; and shall continue in
 effect until all sums secured thereby, with the interest thereon,  shall
 have  been  fully  paid  or  until expiration six years from the date of
 filing, whichever occurs sooner. In the event that unpaid common charges
 are due, any member of the board of managers may file a notice  of  lien
 as  described  herein  if  no notice of lien has been filed within sixty
 days after the unpaid charges are due. Upon such payment the unit  owner
 shall be entitled to an instrument duly executed and acknowledged certi-
 fying  to  the  fact  of  payment.  Such  lien may be foreclosed by suit
 authorized by and brought in the name of the board of  managers,  acting
 on behalf of the unit owners, in like manner as a mortgage of real prop-
 erty  PURSUANT  TO  ARTICLE  THIRTEEN  OF  THE REAL PROPERTY ACTIONS AND
 PROCEEDINGS LAW, without the necessity, however, of naming  as  a  party
 defendant  any  person  solely by reason of his owning a common interest
 with respect to the property.  THE BOARD OF MANAGERS SHALL  BE  REQUIRED
 TO  PROVIDE  NOTICE  TO THE UNIT OWNER AT LEAST NINETY DAYS PRIOR TO THE
 COMMENCEMENT OF A FORECLOSURE PROCEEDING AT THE PROPERTY ADDRESS AND ANY
 OTHER ADDRESS OF RECORD. SUCH NOTICE SHALL BE IN FOURTEEN-POINT TYPE AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15049-01-4
 A. 9780                             2
 
 SHALL INFORM THE OWNER THAT THE BOARD INTENDS  TO  FILE  AN  ACTION  FOR
 FORECLOSURE TO ENFORCE THE LIEN AND SHALL STATE THE ADDRESS OF THE PROP-
 ERTY AND THE SPECIFIC AMOUNT DUE. In any such foreclosure the unit owner
 shall be required to pay a reasonable rental for the unit for any period
 prior  to  sale  pursuant  to  judgment  of  foreclosure and sale, if so
 provided in the by-laws, and the plaintiff in such foreclosure shall  be
 entitled to the appointment of a receiver to collect the same. The board
 of  managers,  acting  on  behalf  of the unit owners, shall have power,
 unless prohibited by the by-laws, to bid  in  the  unit  at  foreclosure
 sale, and to acquire and hold, lease, mortgage and convey the same. Suit
 to recover a money judgment for unpaid common charges shall be maintain-
 able  without  foreclosing  or  waiving  the lien securing the same, and
 foreclosure shall be maintainable notwithstanding the pendency  of  suit
 to recover a money judgment.
   Notwithstanding  any  other  provision of this article, if a municipal
 corporation acquires title to a unit as  a  result  of  tax  enforcement
 proceedings,  such  municipal  corporation  shall  not be liable for and
 shall not be subject to suit for recovery of the common charges applica-
 ble to such unit during the period while title to such unit is  held  by
 the  municipal corporation or for the payment of any rental for the unit
 under the provisions of this section, except to the extent of  any  rent
 arising  from  such  unit  received by such municipal corporation during
 such period.
   Except as herein specifically provided, nothing contained herein shall
 affect or impair or release the unit  from  the  lien  for  such  common
 charges  or impair or diminish the rights of the manager or the board of
 managers on behalf of the unit owners under  this  section  and  section
 three hundred thirty-nine-z.
   §  2.  The  real  property  actions  and proceedings law is amended by
 adding a new article 20-A to read as follows:
                                ARTICLE 20-A
             ENFORCEMENT OF LIENS BY A HOMEOWNERS' ASSOCIATION
 
 SECTION 2010. ENFORCEMENT OF LIENS BY A HOMEOWNERS' ASSOCIATION.
   § 2010. ENFORCEMENT OF LIENS BY A HOMEOWNERS'  ASSOCIATION.  AT  LEAST
 NINETY DAYS PRIOR TO THE COMMENCEMENT OF A FORECLOSURE ACTION TO ENFORCE
 A  LIEN FOR UNPAID COMMON CHARGES, ASSESSMENTS, FEES OR FINES OWED TO AN
 INCORPORATED HOMEOWNERS' ASSOCIATION, WHICH IS PERMITTED PURSUANT TO THE
 GOVERNING DOCUMENTS OF SUCH  ASSOCIATION,  THE  BOARD  OR  OTHER  ENTITY
 REPRESENTING  THE  ASSOCIATION  SHALL PROVIDE NOTICE TO THE OWNER AT THE
 PROPERTY ADDRESS AND ANY OTHER ADDRESS OF RECORD, IN AT LEAST  FOURTEEN-
 POINT  TYPE, THAT THE ASSOCIATION INTENDS TO FILE AN ACTION FOR FORECLO-
 SURE TO ENFORCE THE LIEN AND SHALL STATE THE ADDRESS OF THE PROPERTY AND
 THE SPECIFIC AMOUNT DUE.
   § 3. This act shall take effect immediately and shall apply to actions
 commenced on and after such date.