NY State Senate Bill 2023-S1634A

Senate Bill S1634A

2023-2024 Legislative Session

Relates to penalties for failure to comply with maintenance and reporting of vacant and abandoned properties, and reporting and release of information

download bill text pdf

Current Bill Status - In Assembly 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
Mar 26, 2024	referred to judiciary delivered to assembly passed senate
Jan 17, 2024	advanced to third reading
Jan 16, 2024	2nd report cal.
Jan 09, 2024	1st report cal.105
Jan 03, 2024	referred to housing, construction and community development
Jun 10, 2023	committed to rules
Jun 05, 2023	amended on third reading 1634b
Jan 30, 2023	advanced to third reading amended 1634a
Jan 25, 2023	2nd report cal.
Jan 24, 2023	1st report cal.200
Jan 13, 2023	referred to housing, construction and community development

Votes

- Mar 26, 2024 - Floor Vote
  S1634A
  
  55
  
  Aye
  
  6
  
  Nay
  
  1
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Mar 26, 2024
      
      aye (55)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      Weik
      
      nay (6)
      
      Borrello
      
      Oberacker
      
      Palumbo
      
      Stec
      
      Tedisco
      
      Weber
      
      absent (1)
      
      Sanders Jr.
      
      excused (1)
      
      Walczyk
  Jan 9, 2024 - Housing, Construction And Community Development Committee Vote
  S1634A
  
  8
  
  Aye
  
  1
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: Jan 9, 2024
      
      aye (8)
      
      Brisport
      
      Cleare
      
      Jackson
      
      Kavanagh
      
      May
      
      Myrie
      
      Rivera
      
      Salazar
      
      nay (1)
      
      Borrello
      
      aye wr (2)
      
      Helming
      
      Martins
  Jan 24, 2023 - Housing, Construction And Community Development Committee Vote
  S1634A
  
  8
  
  Aye
  
  1
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Housing, Construction And Community Development Committee Vote: Jan 24, 2023
      
      aye (8)
      
      Brisport
      
      Cleare
      
      Jackson
      
      Kavanagh
      
      May
      
      Myrie
      
      Rivera
      
      Salazar
      
      nay (1)
      
      Borrello
      
      aye wr (2)
      
      Helming
      
      Martins

Bill Amendments

Original

B (Active)

2023-S1634 - Details

See Assembly Version of this Bill:: A4026
Current Committee:: Assembly Judiciary
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §§1308 & 1310, RPAP L

2023-S1634 - Summary

Relates to penalties for failure to comply with maintenance and reporting of vacant and abandoned properties, and reporting and release of information; provides for the sharing of information between municipalities; provides for enforcement for failure to report on abandoned and vacant properties.

2023-S1634 - Sponsor Memo

                                 
BILL NUMBER: S1634

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to penalties for failure to comply with maintenance and report-
ing of vacant and abandoned properties, and reporting and release of
information

 
PURPOSE:

This bill authorizes government entities that receive information on
vacant and abandoned properties that is collected by the Department of
Financial Services (DFS) to share the information with other government
entities to facilitate coordination; expands the type of information
that lenders and mortgage servicers must submit to DFS; and directs DFS
to publish data from the vacant and abandoned property registry annual-
ly.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 increases the penalty for violating the provisions set forth
in Real Property Action and Proceedings Law *1308 on inspecting, secur-
ing, and maintaining vacant and abandoned residential real properties
from up to $500 to up to $1,000 per day per property for each day the
violation persists.

Section 2 authorizes state districts, counties, cities, towns, and
villages that currently receive vacant and abandoned properties registry
data from the Department of Financial Services to share such information
with other state districts, counties, cities, towns, and villages.

Section 3 expands the types of information that lenders, assignees, and
mortgage loan servicers must provide to the Department of Financial
Services on vacant and abandoned properties.

Section 4 provides that violation in providing information to the
Department of Financial Services for the statewide vacant and abandoned
property electronic registry under § 1310 of the Real Property Actions
and Proceedings Law may be heard before a hearing officer or a court of
competent jurisdiction, and civil penalties may be issued by the hearing
officer or the court for up to $5,000.

Section 5 directs the Department of Financial Services to publish data
in the vacant and abandoned property registry annually.

Section 6 sets forth the effective date.

 
JUSTIFICATION:

When a residential property enters into foreclosure, there is a risk
that it will fall into disrepair if the homeowner facing mortgage
arrears leaves the property and the lender or mortgage servicer holding
the delinquent loan fails to provide upkeep and maintenance.  Abandoned
properties can have detrimental effects on a neighborhood, increasing
blight and attracting break-ins or squatters. Left to deteriorate over
months or years, these vacant and abandoned "zombie homes" can lead to a
decrease in surrounding properties' real estate values while increasing
the costs to municipalities to address hazardous conditions that result
from extended periods of neglect.

In June 2016, the state legislature passed the "Zombie Property and
Foreclosure Prevention Act" (Chapter 73 of 2016, Part Q) to address the
rise in zombie homes in the aftermath of the 2008 foreclosure crisis.
The law directs the Department of Financial Services to establish a
vacant and abandoned property registry, among other provisions intended
to combat the presence of abandoned properties

(https://www.dfsny.gov/apps_andlicensing/mortgage_companies/zombiepropje
gislation).

Maintaining a registry is the first step to identifying the scope of
property abandonment statewide and provides the necessary data to muni-
cipalities to take action. For example, vacancy data collected by the
New York City Department of Housing Preservation and Development for the
registry enables the agency to coordinate with the City's Law Department
to pursue legal actions against banks and mortgage servicers where
appropriate

(https://www.nyc.gov/site/hpd/services-and-information/zombie-homes-init
iative.page).

Expanding the type of data collected for the registry and allowing for
municipalities to share vacancy information with one another would
better allow localities' enforcement agencies to have the necessary
information to pursue property title holders who fail to properly main-
tain buildings while in foreclosure. Increasing penalties for mortgagees
who fail to provide upkeep for abandoned properties they are responsible
for would disincentivize willful neglect of vacant and abandoned proper-
ties. And directing DFS to publicly share vacant properties information
via an annual report would ensure the data is made available in a format
that is accessible so policymakers and the public in communities around
the state can better assess the impact and status of these properties..

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

Minimal

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law .

2023-S1634 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1634
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- 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 penalties for  failure  to  comply  with  maintenance  and
   reporting  of  vacant  and  abandoned  properties,  and  reporting and
   release of information
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of subdivision 8 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:
   (a) Violations of this section may be heard before a  hearing  officer
 or  a  court of competent jurisdiction. If it shall appear to the satis-
 faction of the hearing officer or the court, based on the  preponderance
 of the evidence, that the mortgagee or agent of a mortgagee has violated
 this  section,  a  civil penalty may be issued by the hearing officer or
 the court in the amount of up to [five hundred] ONE THOUSAND dollars per
 day per property for each day the violation persisted.
   § 2. Subdivision 1 of section 1310 of the real  property  actions  and
 proceedings  law,  as  added by section 4 of part Q of chapter 73 of the
 laws of 2016, is amended to read as follows:
   1. The department of financial services  shall  maintain  a  statewide
 vacant  and  abandoned  property  registry  in the form of an electronic
 database. The department of financial services may, in  accordance  with
 the  applicable  provisions  of  the state finance law, retain a private
 contractor to administer such database for the  purposes  of  satisfying
 this  requirement.  The information provided to the department of finan-
 cial services pursuant to this  section  shall  be  deemed  and  treated
 confidential,   provided   however,   the  superintendent  of  financial
 services, in her or his sole discretion, may release the information  if
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05004-01-3

 S. 1634                             2
 
 it  is in the best interest of the public. Any such released information
 shall continue to be treated confidentially by the parties. The  depart-
 ment  of  financial services shall, upon written request, provide public
 officials  of  any  state  district,  county, city, town or village with
 access to information specific to such public official's district, coun-
 ty, city, town or village maintained on such  database  to  further  the
 purposes of this section, section thirteen hundred seven of this article
 or  article  nineteen-A of this chapter, or any other related law, code,
 rule, regulation or ordinance, AND SUCH STATE  DISTRICT,  COUNTY,  CITY,
 TOWN  OR  VILLAGE  THAT RECEIVES SUCH INFORMATION FROM THE DEPARTMENT OF
 FINANCIAL  SERVICES  MAY  SHARE  SUCH  INFORMATION  WITH  ANOTHER  STATE
 DISTRICT,  COUNTY, CITY, TOWN OR VILLAGE FOR THE PURPOSE OF COORDINATING
 AND COOPERATING TO FURTHER THE PURPOSES OF THIS SECTION,  SECTION  THIR-
 TEEN HUNDRED SEVEN OF THIS ARTICLE OR ARTICLE NINETEEN-A OF THIS CHAPTER
 OR ANY OTHER RELATED LAW, CODE, RULE, REGULATION OR ORDINANCE.
   §  3.  Subdivision  2 of section 1310 of the real property actions and
 proceedings law, as added by section 4 of part Q of chapter  73  of  the
 laws of 2016, is amended to read as follows:
   2.  A lender, assignee or mortgage loan servicer shall submit or cause
 to be submitted to the  department  of  financial  services  information
 required  by  the  superintendent of financial services about any vacant
 and abandoned residential real property, as  that  term  is  defined  in
 subdivision  two of section thirteen hundred nine of this article, or as
 the superintendent of financial services may otherwise define that term,
 within twenty-one business days of when the lender, assignee or mortgage
 loan servicer learns, or should have  learned,  that  such  property  is
 vacant and abandoned. Such information shall, at a minimum, include: (a)
 the  current  name, TITLE, MAILING address, ADDRESS FOR SERVICE OF PROC-
 ESS, and contact information, INCLUDING DIRECT PHONE  NUMBER  AND  EMAIL
 ADDRESS  for [the] EACH lender, assignee [or] AND mortgage loan servicer
 responsible for maintaining the vacant property, AND  FOR  EACH  LENDER,
 ASSIGNEE  AND  MORTGAGE  LOAN SERVICER THAT IS AUTHORIZED OR REQUIRED TO
 PROVIDE FUNDS FOR THE MAINTENANCE OF SUCH PROPERTY; (b) whether a  fore-
 closure  action has been filed for the property in question, and, if so,
 the date on which the foreclosure action was commenced; and (c) the last
 known address and contact information for [the mortgagor(s)] ANY MORTGA-
 GOR of record.
   § 4. Section 1310 of the real property actions and proceedings law  is
 amended by adding a new subdivision 6 to read as follows:
   6.  (A) THIS SECTION MAY BE ENFORCED IN THE SAME MANNER AS PROVIDED IN
 PARAGRAPHS (B), (C) AND (D) OF SUBDIVISION  EIGHT  OF  SECTION  THIRTEEN
 HUNDRED EIGHT OF THIS ARTICLE.
   (B)  A VIOLATION OF THIS SECTION MAY BE HEARD BEFORE A HEARING OFFICER
 OR A COURT OF COMPETENT JURISDICTION. IF IT SHALL APPEAR TO  THE  SATIS-
 FACTION  OF THE HEARING OFFICER OR THE COURT, BASED ON THE PREPONDERANCE
 OF THE EVIDENCE, THAT THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER HAS
 VIOLATED THIS SECTION BY FAILING TO SUBMIT OR TO CAUSE TO  BE  SUBMITTED
 TO  THE DEPARTMENT OF FINANCIAL SERVICES ANY INFORMATION REQUIRED BY THE
 SUPERINTENDENT OF FINANCIAL SERVICES  ABOUT  ANY  VACANT  AND  ABANDONED
 PROPERTY  PURSUANT  TO  THIS  SECTION,  OR  FAILING  TO  MAKE AN AMENDED
 SUBMISSION WHEN ANY SUCH INFORMATION HAS MATERIALLY  CHANGED  SINCE  THE
 LATEST  SUBMISSION,  AS REQUIRED BY SUBDIVISION THREE OF THIS SECTION, A
 CIVIL PENALTY MAY BE ISSUED BY THE HEARING OFFICER OR THE COURT  IN  THE
 AMOUNT  OF  UP TO FIVE THOUSAND DOLLARS PER PROPERTY FOR EACH SUCH FAIL-
 URE.
 S. 1634                             3
 
   § 5. Section 1310 of the real property actions and proceedings law  is
 amended by adding a new subdivision 7 to read as follows:
   7. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL PUBLISH ON OR BEFORE
 FEBRUARY  FIFTEENTH EACH YEAR AN ANNUAL REPORT PRESENTING DATA REGARDING
 PROPERTIES THAT APPEARED ON THE REGISTRY DURING  THE  MOST  RECENT  YEAR
 ENDING  DECEMBER  THIRTY-FIRST.  SUCH DATA SHALL, AT A MINIMUM, INCLUDE,
 FOR EACH COUNTY, CITY, AND TOWN, THE TOTAL NUMBER OF PROPERTIES AND  THE
 TOTAL  NUMBER  OF DWELLING UNITS IN SUCH PROPERTIES: (A) INCLUDED IN THE
 REGISTRY AT THE BEGINNING OF THE YEAR, (B) ADDED TO THE REGISTRY  DURING
 THE  YEAR,  (C)  REMOVED  FROM  THE  REGISTRY  DURING  THE YEAR, AND (D)
 INCLUDED IN THE REGISTRY AT THE END OF THE YEAR. FOR PROPERTIES INCLUDED
 IN THE REGISTRY AT THE END OF THE YEAR, THE  DATA  SHALL  INDICATE,  FOR
 EACH  COUNTY,  CITY,  OR TOWN, HOW MANY PROPERTIES AND DWELLING UNITS IN
 SUCH PROPERTIES HAVE BEEN INCLUDED IN THE REGISTRY FOR (I)  SIX  CONSEC-
 UTIVE  MONTHS  OR  LESS, (II) ONE YEAR OR LESS, (III) TWO YEARS OR LESS,
 (IV) THREE YEARS OR LESS, OR (V) LONGER THAN THREE YEARS.
   § 6. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

co-Sponsors

2023-S1634A - Details

See Assembly Version of this Bill:: A4026
Current Committee:: Assembly Judiciary
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §§1308 & 1310, RPAP L

2023-S1634A - Summary

2023-S1634A - Sponsor Memo

                                 
BILL NUMBER: S1634A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to penalties for failure to comply with maintenance and report-
ing of vacant and abandoned properties, and reporting and release of
information

 
PURPOSE:

This bill seeks to reduce neighborhood blight and other problems caused
by vacant and abandoned properties by making information on such proper-
ties more readily available to be shared among local governments and the
general public, and by increasing the penalties for failure to properly
maintain such properties.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 increases the maximum penalty for violating the provisions set
forth in Real Property Action and Proceedings Law (RPAPL) § 1308 regard-

ing inspecting, securing, and maintaining vacant and abandoned residen-
tial real properties from $500 to $1,000 per day per property for each
day the violation persists.

Section 2 authorizes state districts, counties, cities, towns, and
villages that currently receive vacant and abandoned properties registry
data from the Department of Financial Services to share such information
with other state districts, counties, cities, towns, villages, and
municipal landbanks.

Section 3 expands the types of information that lenders, assignees, and
mortgage loan servicers must provide to the Department of Financial
Services on vacant and abandoned properties.

Section 4 provides that a violation in providing information to DFS for
the statewide vacant and abandoned property electronic registry under
RPAPL § 1310 of the may be heard before a hearing officer or a court of
competent jurisdiction, and civil penalties may be issued by the hearing
officer or the court for up to $5,000.

Section 5 directs DFS to publish data in the vacant and abandoned prop-
erty registry annually.

Section 6 sets forth the effective date.

 
JUSTIFICATION:

When a residential property enters into foreclosure, there is a risk
that it will fall into disrepair if the homeowner facing mortgage
arrears leaves the property and the lender or mortgage servicer holding
the delinquent loan fails to provide upkeep and maintenance.  Abandoned
properties can have detrimental effects on a neighborhood, increasing
blight and attracting break-ins or squatters. Left to deteriorate over
months or years, these vacant and abandoned properties -sometimes called
"zombie homes" -- can lead to a decrease in surrounding properties' real
estate values while increasing the costs to municipalities to address
hazardous conditions that result from extended periods of neglect.
In June 2016, the State enacted the "Zombie Property and Foreclosure
Prevention Act" (Chapter 73 of 2016, Part Q) to address the rise in
abandoned homes in the aftermath of the 2008 foreclosure crisis. The law
directs the Department of Financial Services (DFS) to establish a vacant
and abandoned property registry, among other provisions intended to
combat the presence of abandoned properties. (See
https://www.dfs.ny.gov/apps_and_licensing/mortgage_companies/zombie_prop
legislation.)

Maintaining a registry is the first step to identifying the scope of
property abandonment statewide and provides the necessary data to muni-
cipalities to take action. For example, vacancy data collected by the
New York City Department of Housing Preservation and Development for the
registry enables the agency to coordinate with the City's Law Department
to pursue legal actions against banks and mortgage servicers where
appropriate. (See https://www.nyc.gov/site/hpd/services-and
-information/zombie-homes-in itiative.page.)

By expanding the type of data collected for the registry and allowing
for municipalities to share vacancy information with one another this
bill would better enable localities' enforcement agencies to pursue
property title holders who fail to properly maintain buildings while in
foreclosure. Increasing penalties for mortgagees who fail to provide
upkeep for abandoned properties they are responsible for would disincen-
tivize willful neglect of vacant and abandoned properties. And directing
DFS to publicly report data on vacant properties would ensure the data
is made available in an accessible format so policymakers and the public
in communities around the state can better assess the impact and status
of these properties, and the efficacy of public programs intended to
ameliorate the problem.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

Minimal

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

2023-S1634A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1634--A
     Cal. No. 200
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community  Development  --  reported  favorably  from  said committee,
   ordered to first and second report, amended on second report,  ordered
   to  a  third  reading,  and  to be reprinted as amended, retaining its
   place in the order of third reading
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation  to  penalties  for  failure  to  comply with maintenance and
   reporting of  vacant  and  abandoned  properties,  and  reporting  and
   release of information
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 8 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:
   (a)  Violations  of this section may be heard before a hearing officer
 or a court of competent jurisdiction. If it shall appear to  the  satis-
 faction  of the hearing officer or the court, based on the preponderance
 of the evidence, that the mortgagee or agent of a mortgagee has violated
 this section, a civil penalty may be issued by the  hearing  officer  or
 the court in the amount of up to [five hundred] ONE THOUSAND dollars per
 day per property for each day the violation persisted.
   §  2.  Subdivision  1 of section 1310 of the real property actions and
 proceedings law, as added by section 4 of part Q of chapter  73  of  the
 laws of 2016, is amended to read as follows:
   1.  The  department  of  financial services shall maintain a statewide
 vacant and abandoned property registry in  the  form  of  an  electronic
 database.  The  department of financial services may, in accordance with
 the applicable provisions of the state finance  law,  retain  a  private
 contractor  to  administer  such database for the purposes of satisfying
 this requirement. The information provided to the department  of  finan-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05004-02-3
 S. 1634--A                          2
 
 cial  services  pursuant  to  this  section  shall be deemed and treated
 confidential,  provided  however,  the   superintendent   of   financial
 services,  in her or his sole discretion, may release the information if
 it  is in the best interest of the public. Any such released information
 shall continue to be treated confidentially by the parties. The  depart-
 ment  of  financial services shall, upon written request, provide public
 officials of any state district, county,  city,  town  or  village  with
 access to information specific to such public official's district, coun-
 ty,  city,  town  or  village maintained on such database to further the
 purposes of this section, section thirteen hundred seven of this article
 or article nineteen-A of this chapter, or any other related  law,  code,
 rule,  regulation  or  ordinance, AND SUCH STATE DISTRICT, COUNTY, CITY,
 TOWN OR VILLAGE THAT RECEIVES SUCH INFORMATION FROM  THE  DEPARTMENT  OF
 FINANCIAL  SERVICES  MAY  SHARE  SUCH  INFORMATION  WITH  ANOTHER  STATE
 DISTRICT, COUNTY, CITY, TOWN, VILLAGE  OR  MUNICIPAL  LANDBANK  FOR  THE
 PURPOSE  OF COORDINATING AND COOPERATING TO FURTHER THE PURPOSES OF THIS
 SECTION, SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE OR ARTICLE NINE-
 TEEN-A OF THIS CHAPTER OR ANY OTHER RELATED LAW, CODE, RULE,  REGULATION
 OR ORDINANCE.
   §  3.  Subdivision  2 of section 1310 of the real property actions and
 proceedings law, as added by section 4 of part Q of chapter  73  of  the
 laws of 2016, is amended to read as follows:
   2.  A lender, assignee or mortgage loan servicer shall submit or cause
 to be submitted to the  department  of  financial  services  information
 required  by  the  superintendent of financial services about any vacant
 and abandoned residential real property, as  that  term  is  defined  in
 subdivision  two of section thirteen hundred nine of this article, or as
 the superintendent of financial services may otherwise define that term,
 within twenty-one business days of when the lender, assignee or mortgage
 loan servicer learns, or should have  learned,  that  such  property  is
 vacant and abandoned. Such information shall, at a minimum, include: (a)
 the  current  name, TITLE, MAILING address, ADDRESS FOR SERVICE OF PROC-
 ESS, and contact information, INCLUDING DIRECT PHONE  NUMBER  AND  EMAIL
 ADDRESS  for [the] EACH lender, assignee [or] AND mortgage loan servicer
 responsible for maintaining the vacant property, AND  FOR  EACH  LENDER,
 ASSIGNEE  AND  MORTGAGE  LOAN SERVICER THAT IS AUTHORIZED OR REQUIRED TO
 PROVIDE FUNDS FOR THE MAINTENANCE OF SUCH PROPERTY; (b) whether a  fore-
 closure  action has been filed for the property in question, and, if so,
 the date on which the foreclosure action was commenced; and (c) the last
 known address and contact information for [the mortgagor(s)] ANY MORTGA-
 GOR of record.
   § 4. Section 1310 of the real property actions and proceedings law  is
 amended by adding a new subdivision 6 to read as follows:
   6.  (A) THIS SECTION MAY BE ENFORCED IN THE SAME MANNER AS PROVIDED IN
 PARAGRAPHS (B), (C) AND (D) OF SUBDIVISION  EIGHT  OF  SECTION  THIRTEEN
 HUNDRED EIGHT OF THIS ARTICLE.
   (B)  A VIOLATION OF THIS SECTION MAY BE HEARD BEFORE A HEARING OFFICER
 OR A COURT OF COMPETENT JURISDICTION. IF IT SHALL APPEAR TO  THE  SATIS-
 FACTION  OF THE HEARING OFFICER OR THE COURT, BASED ON THE PREPONDERANCE
 OF THE EVIDENCE, THAT THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER HAS
 VIOLATED THIS SECTION BY FAILING TO SUBMIT OR TO CAUSE TO  BE  SUBMITTED
 TO  THE DEPARTMENT OF FINANCIAL SERVICES ANY INFORMATION REQUIRED BY THE
 SUPERINTENDENT OF FINANCIAL SERVICES  ABOUT  ANY  VACANT  AND  ABANDONED
 PROPERTY  PURSUANT  TO  THIS  SECTION,  OR  FAILING  TO  MAKE AN AMENDED
 SUBMISSION WHEN ANY SUCH INFORMATION HAS MATERIALLY  CHANGED  SINCE  THE
 LATEST  SUBMISSION,  AS REQUIRED BY SUBDIVISION THREE OF THIS SECTION, A
 S. 1634--A                          3
 
 CIVIL PENALTY MAY BE ISSUED BY THE HEARING OFFICER OR THE COURT  IN  THE
 AMOUNT  OF  UP TO FIVE THOUSAND DOLLARS PER PROPERTY FOR EACH SUCH FAIL-
 URE.
   §  5. Section 1310 of the real property actions and proceedings law is
 amended by adding a new subdivision 7 to read as follows:
   7. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL PUBLISH ON OR BEFORE
 FEBRUARY FIFTEENTH EACH YEAR AN ANNUAL REPORT PRESENTING DATA  REGARDING
 PROPERTIES  THAT  APPEARED  ON  THE REGISTRY DURING THE MOST RECENT YEAR
 ENDING DECEMBER THIRTY-FIRST. SUCH DATA SHALL, AT  A  MINIMUM,  INCLUDE,
 FOR  EACH COUNTY, CITY, AND TOWN, THE TOTAL NUMBER OF PROPERTIES AND THE
 TOTAL NUMBER OF DWELLING UNITS IN SUCH PROPERTIES: (A) INCLUDED  IN  THE
 REGISTRY  AT THE BEGINNING OF THE YEAR, (B) ADDED TO THE REGISTRY DURING
 THE YEAR, (C) REMOVED  FROM  THE  REGISTRY  DURING  THE  YEAR,  AND  (D)
 INCLUDED IN THE REGISTRY AT THE END OF THE YEAR. FOR PROPERTIES INCLUDED
 IN  THE  REGISTRY  AT  THE END OF THE YEAR, THE DATA SHALL INDICATE, FOR
 EACH COUNTY, CITY, OR TOWN, HOW MANY PROPERTIES AND  DWELLING  UNITS  IN
 SUCH  PROPERTIES  HAVE BEEN INCLUDED IN THE REGISTRY FOR (I) SIX CONSEC-
 UTIVE MONTHS OR LESS, (II) ONE YEAR OR LESS, (III) TWO  YEARS  OR  LESS,
 (IV) THREE YEARS OR LESS, OR (V) LONGER THAN THREE YEARS.
   §  6.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

co-Sponsors

2023-S1634B (ACTIVE) - Details

See Assembly Version of this Bill:: A4026
Current Committee:: Assembly Judiciary
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §§1308 & 1310, RPAP L

2023-S1634B (ACTIVE) - Summary

2023-S1634B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1634B

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to penalties for failure to comply with maintenance and report-
ing of vacant and abandoned properties, and reporting and release of
information

 
PURPOSE:

This bill seeks to reduce neighborhood blight and other problems caused
by vacant and abandoned properties by making information on such proper-
ties more readily available to be shared among local governments and the
general public, and by increasing the penalties for failure to properly
maintain such properties.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 increases the maximum penalty for violating the provisions set
forth in Real Property Action and Proceedings Law (RPAPL) § 1308 regard-

ing inspecting, securing, and maintaining vacant and abandoned residen-
tial real properties from $500 to $650 per day per property for each day
the violation persists.

Section 2 authorizes state districts, counties, cities, towns, and
villages that currently receive vacant and abandoned properties registry
data from the Department of Financial Services to share such information
with other state districts, counties, cities, towns, villages, and
municipal landbanks.

Section 3 expands the types of information that lenders, assignees, and
mortgage loan servicers must provide to the Department of Financial
Services on vacant and abandoned properties.

Section 4 provides that a violation in providing information to DFS for
the statewide vacant and abandoned property electronic registry under
RPAPL § 1310 of the may be heard before a hearing officer or a court of
competent jurisdiction, and civil penalties may be issued by the hearing
officer or the court for up to $5,000.

Section 5 directs DFS to publish data in the vacant and abandoned prop-
erty registry annually. Section 6 sets forth the effective date.

 
JUSTIFICATION:

When a residential property enters into foreclosure, there is a risk
that it will fall into disrepair if the homeowner facing mortgage
arrears leaves the property and the lender or mortgage servicer holding
the delinquent loan fails to provide upkeep and maintenance.  Abandoned
properties can have detrimental effects on a neighborhood, increasing
blight and attracting break-ins or squatters. Left to deteriorate over
months or years, these vacant and abandoned properties--sometimes called
"zombie homes" -- can lead to a decrease in surrounding properties' real
estate values while increasing the costs to municipalities to address
hazardous conditions that result from extended periods of neglect.


In June 2016, the State enacted the "Zombie Property and Foreclosure
Prevention Act" (Chapter 73 of 2016, Part Q) to address the rise in
abandoned homes in the aftermath of the 2008 foreclosure crisis. The law
directs the Department of Financial Services (DFS) to establish a vacant
and abandoned property registry, among other provisions intended to
combat the presence of abandoned properties. (See
https://www.dfs.ny.gov/apps_and_licensing/mortgage_companies/zombie
_prop_legislation.)

Maintaining a registry is the first step to identifying the scope of
property abandonment statewide and provides the necessary data to muni-
cipalities to take action. For example, vacancy data collected by the
New York City Department of Housing Preservation and Development for the
registry enables the agency to coordinate with the City's Law Department
to pursue legal actions against banks and mortgage servicers where
appropriate.  (See https://www.nyc.gov/site/hpd/services-and-information
/zombie-homes-initiative.page.)

By expanding the type of data collected for the registry and allowing
for municipalities to share vacancy information with one another this
bill would better enable localities' enforcement agencies to pursue
property title holders who fail to properly maintain buildings while in
foreclosure. Increasing penalties for mortgagees who fail to provide
upkeep for abandoned properties they are responsible for would disincen-
tivize willful neglect of vacant and abandoned properties. And directing
DFS to publicly report data on vacant properties would ensure the data
is made available in an accessible format so policymakers and the public
in communities around the state can better assess the impact and status
of these properties, and the efficacy of public programs intended to
ameliorate the problem.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

Minimal

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

2023-S1634B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1634--B
     Cal. No. 200
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2023
                                ___________
 
 Introduced by Sens. KAVANAGH, ADDABBO -- read twice and ordered printed,
   and  when  printed  to  be  committed  to  the  Committee  on Housing,
   Construction and Community Development -- reported favorably from said
   committee, ordered to first  and  second  report,  amended  on  second
   report,  ordered  to  a third reading, and to be reprinted as amended,
   retaining its place in the order of third reading -- reported  favora-
   bly  from  said  committee  to  third  reading,  amended  and  ordered
   reprinted, retaining its place in the order of third reading
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation  to  penalties  for  failure  to  comply with maintenance and
   reporting of  vacant  and  abandoned  properties,  and  reporting  and
   release of information
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 8 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:
   (a)  Violations  of this section may be heard before a hearing officer
 or a court of competent jurisdiction. If it shall appear to  the  satis-
 faction  of the hearing officer or the court, based on the preponderance
 of the evidence, that the mortgagee or agent of a mortgagee has violated
 this section, a civil penalty may be issued by the  hearing  officer  or
 the  court  in  the amount of up to [five] SIX hundred FIFTY dollars per
 day per property for each day the violation persisted.
   § 2. Subdivision 1 of section 1310 of the real  property  actions  and
 proceedings  law,  as  added by section 4 of part Q of chapter 73 of the
 laws of 2016, is amended to read as follows:
   1. The department of financial services  shall  maintain  a  statewide
 vacant  and  abandoned  property  registry  in the form of an electronic
 database. The department of financial services may, in  accordance  with
 the  applicable  provisions  of  the state finance law, retain a private
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05004-04-3
 S. 1634--B                          2
 
 contractor to administer such database for the  purposes  of  satisfying
 this  requirement.  The information provided to the department of finan-
 cial services pursuant to this  section  shall  be  deemed  and  treated
 confidential,   provided   however,   the  superintendent  of  financial
 services, in her or his sole discretion, may release the information  if
 it  is in the best interest of the public. Any such released information
 shall continue to be treated confidentially by the parties. The  depart-
 ment  of  financial services shall, upon written request, provide public
 officials of any state district, county,  city,  town  or  village  with
 access to information specific to such public official's district, coun-
 ty,  city,  town  or  village maintained on such database to further the
 purposes of this section, section thirteen hundred seven of this article
 or article nineteen-A of this chapter, or any other related  law,  code,
 rule,  regulation  or  ordinance, AND SUCH STATE DISTRICT, COUNTY, CITY,
 TOWN OR VILLAGE THAT RECEIVES SUCH INFORMATION FROM  THE  DEPARTMENT  OF
 FINANCIAL  SERVICES  MAY  SHARE  SUCH  INFORMATION  WITH  ANOTHER  STATE
 DISTRICT, COUNTY, CITY, TOWN, VILLAGE  OR  MUNICIPAL  LANDBANK  FOR  THE
 PURPOSE  OF COORDINATING AND COOPERATING TO FURTHER THE PURPOSES OF THIS
 SECTION, SECTION THIRTEEN HUNDRED SEVEN OF THIS ARTICLE OR ARTICLE NINE-
 TEEN-A OF THIS CHAPTER OR ANY OTHER RELATED LAW, CODE, RULE,  REGULATION
 OR ORDINANCE.
   §  3.  Subdivision  2 of section 1310 of the real property actions and
 proceedings law, as added by section 4 of part Q of chapter  73  of  the
 laws of 2016, is amended to read as follows:
   2.  A lender, assignee or mortgage loan servicer shall submit or cause
 to be submitted to the  department  of  financial  services  information
 required  by  the  superintendent of financial services about any vacant
 and abandoned residential real property, as  that  term  is  defined  in
 subdivision  two of section thirteen hundred nine of this article, or as
 the superintendent of financial services may otherwise define that term,
 within twenty-one business days of when the lender, assignee or mortgage
 loan servicer learns, or should have  learned,  that  such  property  is
 vacant and abandoned. Such information shall, at a minimum, include: (a)
 the  current  name, TITLE, MAILING address, ADDRESS FOR SERVICE OF PROC-
 ESS, and contact information, INCLUDING DIRECT PHONE  NUMBER  AND  EMAIL
 ADDRESS  for [the] EACH lender, assignee [or] AND mortgage loan servicer
 responsible for maintaining the vacant property, AND  FOR  EACH  LENDER,
 ASSIGNEE  AND  MORTGAGE  LOAN SERVICER THAT IS AUTHORIZED OR REQUIRED TO
 PROVIDE FUNDS FOR THE MAINTENANCE OF SUCH PROPERTY; (b) whether a  fore-
 closure  action has been filed for the property in question, and, if so,
 the date on which the foreclosure action was commenced; and (c) the last
 known address and contact information for [the mortgagor(s)] ANY MORTGA-
 GOR of record.
   § 4. Section 1310 of the real property actions and proceedings law  is
 amended by adding a new subdivision 6 to read as follows:
   6.  (A) THIS SECTION MAY BE ENFORCED IN THE SAME MANNER AS PROVIDED IN
 PARAGRAPHS (B), (C) AND (D) OF SUBDIVISION  EIGHT  OF  SECTION  THIRTEEN
 HUNDRED EIGHT OF THIS ARTICLE.
   (B)  A VIOLATION OF THIS SECTION MAY BE HEARD BEFORE A HEARING OFFICER
 OR A COURT OF COMPETENT JURISDICTION. IF IT SHALL APPEAR TO  THE  SATIS-
 FACTION  OF THE HEARING OFFICER OR THE COURT, BASED ON THE PREPONDERANCE
 OF THE EVIDENCE, THAT THE LENDER, ASSIGNEE OR MORTGAGE LOAN SERVICER HAS
 VIOLATED THIS SECTION BY FAILING TO SUBMIT OR TO CAUSE TO  BE  SUBMITTED
 TO  THE DEPARTMENT OF FINANCIAL SERVICES ANY INFORMATION REQUIRED BY THE
 SUPERINTENDENT OF FINANCIAL SERVICES  ABOUT  ANY  VACANT  AND  ABANDONED
 PROPERTY  PURSUANT  TO  THIS  SECTION,  OR  FAILING  TO  MAKE AN AMENDED
 S. 1634--B                          3
 
 SUBMISSION WHEN ANY SUCH INFORMATION HAS MATERIALLY  CHANGED  SINCE  THE
 LATEST  SUBMISSION,  AS REQUIRED BY SUBDIVISION THREE OF THIS SECTION, A
 CIVIL PENALTY MAY BE ISSUED BY THE HEARING OFFICER OR THE COURT  IN  THE
 AMOUNT  OF  UP TO FIVE THOUSAND DOLLARS PER PROPERTY FOR EACH SUCH FAIL-
 URE.
   § 5. Section 1310 of the real property actions and proceedings law  is
 amended by adding a new subdivision 7 to read as follows:
   7. THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL PUBLISH ON OR BEFORE
 FEBRUARY  FIFTEENTH EACH YEAR AN ANNUAL REPORT PRESENTING DATA REGARDING
 PROPERTIES THAT APPEARED ON THE REGISTRY DURING  THE  MOST  RECENT  YEAR
 ENDING  DECEMBER  THIRTY-FIRST.  SUCH DATA SHALL, AT A MINIMUM, INCLUDE,
 FOR EACH COUNTY, CITY, AND TOWN, THE TOTAL NUMBER OF PROPERTIES AND  THE
 TOTAL  NUMBER  OF DWELLING UNITS IN SUCH PROPERTIES: (A) INCLUDED IN THE
 REGISTRY AT THE BEGINNING OF THE YEAR, (B) ADDED TO THE REGISTRY  DURING
 THE  YEAR,  (C)  REMOVED  FROM  THE  REGISTRY  DURING  THE YEAR, AND (D)
 INCLUDED IN THE REGISTRY AT THE END OF THE YEAR. FOR PROPERTIES INCLUDED
 IN THE REGISTRY AT THE END OF THE YEAR, THE  DATA  SHALL  INDICATE,  FOR
 EACH  COUNTY,  CITY,  OR TOWN, HOW MANY PROPERTIES AND DWELLING UNITS IN
 SUCH PROPERTIES HAVE BEEN INCLUDED IN THE REGISTRY FOR (I)  SIX  CONSEC-
 UTIVE  MONTHS  OR  LESS, (II) ONE YEAR OR LESS, (III) TWO YEARS OR LESS,
 (IV) THREE YEARS OR LESS, OR (V) LONGER THAN THREE YEARS.
   § 6. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

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Senate Bill S1634A

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Sponsored By

Brian Kavanagh

Current Bill Status - In Assembly Committee

Bill Amendments

2023-S1634 - Details

2023-S1634 - Summary

2023-S1634 - Sponsor Memo

2023-S1634 - Bill Text download pdf

co-Sponsors

Joseph P. Addabbo Jr.

2023-S1634A - Details

2023-S1634A - Summary

2023-S1634A - Sponsor Memo

2023-S1634A - Bill Text download pdf

co-Sponsors

Joseph P. Addabbo Jr.

Robert Jackson

Rachel May

Lea Webb

2023-S1634B (ACTIVE) - Details

2023-S1634B (ACTIVE) - Summary

2023-S1634B (ACTIVE) - Sponsor Memo

2023-S1634B (ACTIVE) - Bill Text download pdf

Comments