BILL NUMBER: S1264
SPONSOR: PERSAUD
 
TITLE OF BILL:
An act to amend the real property law, in relation to requiring a mort-
gagor to provide notice of imminent foreclosure to their tenant or
tenants
 
PURPOSE:
Ensuring tenants are knowledgeable about the units they are renting and
providing them enough time to make informed decisions for themselves and
their families regarding their housing.
 
SUMMARY OF PROVISIONS:
Section 1 amends the real property law by adding a new section, 235-j
that requires mortgagors to disclose imminent foreclosure to tenants or
prospective tenants prior to renewing or signing a lease agreement. It
imposes a credit owed for failure to comply.
Section 2 provides the effective date.
 
JUSTIFICATION:
As foreclosure rates nationwide continue to rise, this bill provides
additional protection to tenants in the event of an imminent foreclo-
sure. A 2023 report by Attom finds that in January 2023 properties with
foreclosure filings increased by 36 percent from the previous year and 2
percent from the prior month. With this number slated to increase, it is
important to provide timely information to tenants and prospective
tenants so they can feel secure in their ability to make informed deci-
sions about their housing.
 
LEGISLATIVE HISTORY:
2023/2024 - S6524 referred to Senate Judiciary Committee
2021/2022 - S53 referred to Senate Judiciary Committee
2019/2020 - S1055 referred to Senate Judiciary Committee
2017-2018 - S5378 referred to Senate Judiciary Committee
 
FISCAL IMPACT ON THE STATE:
To be determined.
 
EFFECTIVE DATE: This act shall take effect immediately.