BILL NUMBER: S3823

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to the appointment of receivers in actions to foreclose a mort-
gage

 
PURPOSE:

Enables agencies with the jurisdictional power to administer and enforce
the statutes, laws, rules, and regulations relating to the operation,
repair, and maintenance of residential real property to appoint a list
of qualified potential receivers or managing agents.

 
SUMMARY OF PROVISIONS:

  Section  1  of  this  bill amends subdivision 1 of section 1325 of the
Real Property Actions and Proceedings Law, as  it  relates  to  mortgage
foreclosures  by  adding  paragraph  (b),  to require that cities with a
population of one million or more persons give authority to  the  appro-
              

priate agency to create a list of qualified receivers or managing agents
to the Chief Administrative Judge of the New York State Supreme Court to
choose from.

  Section 2 provides the effective date.

 
JUSTIFICATION:

At  the  height  of  the housing boom, speculators purchased multifamily
housing at inflated prices  using  unrealistic  expectations  of  future
revenue.  This  has  led to situations where owners cannot afford to pay
the debt service on the large loans they took out. Many tenants now find
their buildings to be in states of significant disrepair and neglect  as
owners have cut back on maintenance expenses as well.

When  a  property  enters  foreclosure, the judge appoints a receiver to
manage the property during the foreclosure  process.  Currently,  judges
have  complete discretion which may be at no fault of the judge, but can
lead to selecting receivers that are not prepared or qualified to manage
the distressed multifamily property. This leads neglected properties  to
languish in disrepair or decent properties' conditions to decline.

This  piece of legislation would allow appropriate agencies to state who
they find qualified to be receivers or managing agents. This list  would
hold these agencies accountable for their appointments, which is not the
case  currently.  This ensures that those who are appointed as receivers
or managing agents are qualified professionals.

 
LEGISLATIVE HISTORY:

2013-2014: S5562/No Same As

2015-2016: S14251/A7340 Pichardo

2017-2018: S1072/A5953 Pichardo

2019-2020: S481/A2178 Pichardo
2021-2022: S2536 Rivera/No same as

2023-2024: S2954 Rivera/A9998 Jackson

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Effective Immediately.