NY State Senate Bill 2025-S925

Senate Bill S925

2025-2026 Legislative Session

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

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Current Bill Status - In Senate Committee Housing, Construction And Community Development 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to housing, construction and community development

co-Sponsors

2025-S925 (ACTIVE) - Details

See Assembly Version of this Bill:: A1608
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §§1308 & 1310, RPAP L
Versions Introduced in 2023-2024 Legislative Session:: S1634, A4026

2025-S925 (ACTIVE) - 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.

2025-S925 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S925

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 OR GENERAL IDEA OF BILL:

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 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

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.

 
PRIOR LEGISLATIVE HISTORY:

2024: S1634B (Kavanagh) - PASSED SENATE /A4026A Rosenthal L - referred
to judiciary

2023: S1634B (Kavanagh) - ADVANCED TO THIRD READING /A4026A Rosenthal L
referred to judiciary

 
FISCAL IMPLICATIONS:

Minimal.

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

2025-S925 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    925
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by Sens. KAVANAGH, ADDABBO, JACKSON, MAY, WEBB -- 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] 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02344-01-5
 S. 925                              2
 
 services, in [her or his] SUCH  SUPERINTENDENT'S  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  department 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 offi-
 cial's  district, county, city, town or village maintained on such data-
 base 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  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
 S. 925                              3
 
 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 S925

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Sponsored By

Brian Kavanagh

Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee

co-Sponsors

Joseph P. Addabbo Jr.

Robert Jackson

Rachel May

Lea Webb

2025-S925 (ACTIVE) - Details

2025-S925 (ACTIVE) - Summary

2025-S925 (ACTIVE) - Sponsor Memo

2025-S925 (ACTIVE) - Bill Text download pdf

Comments