S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7413
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              April 15, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07202-01-5
              

 S. 7413                             2
 
 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
 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.