BILL NUMBER: S125
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 the property is maintained and any rent issues are
resolved. The court will track all loss of rent payment cases and subse-
quent 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 adds the same language from section 757 to a new section 1302
subdivision 3 of RPAPL to maintain uniformity in the administrative
code.
Section 3 is an effective date 180 days after the bill becomes law.
 
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. It is impossible for small property landlords to maintain real
property ownership if they are unable to collect rent. A side-effect of
the failure by tenants to make rent payments to smaller mom and pop
landlords is often property acquisition from hedge funds or banks, which
is increasingly a problem for the middle-class, and gets us further and
further from securing the "American Dream." This is an effort to main-
tain wealth in the community, not outside it- and give smaller landlords
the opportunity to get back on their feet.
 
LEGISLATIVE HISTORY:
2024: S6420 Comrie / A8593 Vanel
 
FISCAL IMPLICATIONS:
One hundredth eightieth day after it shall have become law.
 
EFFECTIVE DATE:
One hundred and eightieth day from passage.

Statutes affected:
S125: 757 real property actions and proceedings law, 1302 real property actions and proceedings law