NY State Senate Bill 2025-S2546

Senate Bill S2546

2025-2026 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

Current 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 21, 2025	referred to judiciary

2025-S2546 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §1972, RPAP L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S6172
2019-2020: S4493
2021-2022: S271
2023-2024: S2389

2025-S2546 (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.

2025-S2546 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2546

SPONSOR: MYRIE
 
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:

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 agree with the appropriate
agency to repair and correct violations of housing maintenance laws, or
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.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 3 of section 1972 of the real property

actions and proceedings law, as added by chapter 864 of the laws of 1973
which requires the appointment of a receiver who would bring the build-
ing into compliance with applicable provisions of law within ninety days
from the date of appointment or a time frame determined via agreement
with the department. The department may institute proceedings only if
the application for appointment or a receiver is denied, the receiver
fails to bring the building into compliance with applicable provisions
of law, or the mortgagee or lienor fails to bring the building into
compliance.

Section 2 provides the effective date.

 
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 aban-
donment. 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 fore-
closure action. However, current law does not require the mortgagee or
lender to follow through with the foreclosure action or ensure that
someone is appointed and empowered to manage the building.

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 devel-
opment administration, or alternatively, such mortgagee or lienor may
formally take possession and enter into such an agreement.  This will
ensure that the building will be effectively managed and repaired.

 
LEGISLATIVE HISTORY:

S2389 of 2023-24: Passed Senate.

S271 of 2021-22: Passed Senate.

S4493 of 2019-20: Referred to Judiciary.

S6172 of 2017-28: Referred to Judiciary.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
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.

2025-S2546 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2546
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2025
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- 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.
                                                            LBD06784-01-5

 S. 2546                             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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