BILL NUMBER: S2389 Revised 4/13/23
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 enter into an agreement with
the appropriate agency to repair and correct violations of housing main-
tenance laws, or alternatively to take possession of the premises them-
selves 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.
In order to correct this situation, this bill would require the mortga-
gee 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, in fact, the building will be effectively managed and
repaired.
 
LEGISLATIVE HISTORY:
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.