BILL NUMBER: S6420
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the real property actions and proceedings law, in
relation to foreclosure of certain properties
 
PURPOSE:
This bill will provide property owners the opportunity to collect back
rents in order to make their mortgage payments
 
SUMMARY OF PROVISIONS:
Section 1 (1) amends section 757 of the real property actions and
proceedings law (RPAPL) to prevent property owners from entering into a
state of foreclosure due to loss of rent payments until a special
proceeding to recover real property is maintained and any rent issues
are resolved. Such court shall track all loss of rent payment cases and
subsequent foreclosure cases;(2) and provides that if the foreclosure is
related to rent payments or tax, all tenants would have court records
related to the foreclosure sealed and deemed confidential.
Section 2 amends section 1302 of RPAPL to prevent a landlord from fore-
closure until a special proceeding to recover real property is main-
tained and any rent issues are resolved. Such court will track all loss
of rent payments and cases of foreclosure.
 
JUSTIFICATION:
If a landlord is in a state of foreclosure due to back rents, they
should be provided an opportunity to collect back rents in order to make
their foreclosure payments prior to entering into a state of foreclo-
sure. Given the current market and our state's housing stock, overall,
property owners entering into a state of foreclosure is bad for banks,
the economy, tenants, and basically everybody.
This bill will remedy the current failure of landlords to collect rent
and subsequently enter into a state of non-rent payment foreclosure.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS:
One hundredth eightieth day after it shall have become law.
 
EFFECTIVE DATE:
One hundred and eightieth day from passage.

Statutes affected:
S6420: 757 real property actions and proceedings law