BILL NUMBER: S2627A
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the real property law, in relation to establishing the
homeowner protection program
 
PURPOSE OR GENERAL IDEA OF BILL:
Since 2012, the Homeowner Protection Program (HOPP) has provided free
legal services and housing counseling to help New Yorkers facing threats
to homeownership to remain in their homes. This bill would codify the
funding and administration of this important program.
 
SUMMARY OF PROVISIONS:
Section 1. Amends the real property law by adding a new section 265-c.
Subdivision 1 of the new section 265-c provides for the department of
law to establish HOPP to offer free legal services and housing coun-
seling to homeowners for the purpose of mitigating threats to homeowner-
ship. It also provides for the department of law to provide grants to
eligible organizations to provide services under HOPP, with the funding
appropriated annually.
Subdivision 2 of the new section 265-c provides for the department of
law to establish criteria for the administration of grant applications
to fund at least one organization per county to provide services under
HOPP. It also provides for funding to ensure adequate training, techni-
cal assistance, and support for organizations providing legal services
and housing counseling under HOPP.
Subdivision 3 of the new section 265-c sets forth the reporting require-
ments for organizations receiving funding to provide services under
HOPP.
Section 2. Sets the effective date.
 
JUSTIFICATION:
Legislative intent:
The legislature declares that the establishment of the homeowner
protection program (HOPP) is necessary to ensure continuation of New
York's investment in its statewide network of non-profit civil legal
services providers and housing counseling agencies offering a range of
homeownership retention and preservation services to homeowners in every
county in the state. The program is also necessary to ensure that the
statutory mandates of sections thirteen hundred three and thirteen
hundred four of the real property actions and proceedings law and rule
thirty-four hundred eight of the civil practice law and rules are
fulfilled, so that free housing counseling and legal services are avail-
able to homeowners as provided for by sections thirteen hundred three
and thirteen hundred four of the real property actions and proceedings
law in every county, and so that legal services are available to assist
homeowners answering complaints and participating in mandatory settle-
ment conferences pursuant to rule thirty-four hundred eight of the civil
practice law and rules.
Program Justification:
The Homeowner Protection Program (HOPP) was established in 2012 to
provide legal services and housing counseling to New York homeowners at
risk of losing their homes. Originally funded by the state's bank
settlement funds, HOPP has, in recent years, received annual allocation
from the State to support its network of 33 legal services organizations
and 56 housing counseling agencies. Statewide, 150,000 families have
been helped by HOPP, with over 15,000 families receiving assistance each
year.
It is necessary to codify HOPP and to mandate annual appropriations to
fund this program to ensure access to homeownership retention and fore-
closure mitigation services is maintained for homeowners facing the
potential loss of their homes. For example, between January and December
2022, there was an 85% increase in delinquency notices sent to New York
City homeowners. Statewide, as of February 2023, there were 346,928 New
York families at risk of losing their homes due to delinquency, accord-
ing to February 2023 data from the U.S. Census Household Pulse Survey.
If annual funding for HOPP is not mandated, the loss of funding for the
network would leave these families without the help they need to save
their homes.
It is also necessary to codify HOPP to ensure that the statutory
mandates of RPAPL 1303, 1304 and CPLR 3408 are fulfilled, so that free
housing counseling and legal services are available to homeowners as
provided for by RPAPL sections 1303 and 1304 in every county, and so
that legal services are available to assist homeowners answering
complaints and participating in mandatory settlement conferences pursu-
ant to CPLR section 3408, which requires a copy of the filing of judi-
cial intervention to be sent to a housing counseling agency so the home-
owner can be notified of foreclosure prevention services including pro
bono representation at settlement conferences. Without HOPP and its
network of organizations, compliance with these mandates would not be
possible.
Social Justice Impact:
Racial disparities in mortgage costs have led to higher rates of fore-
closure on homeowners of color. A study by the Center for Responsible
Lending found that Black and Latino families lose their homes at about
twice the rate of White families.
 
PRIOR LEGISLATIVE HISTORY:
2024: S7927C (Kavanagh) / A7636 (Solages) - Vetoed Memo.134
 
FISCAL IMPLICATIONS:
Subject to allocation levels.
 
EFFECTIVE DATE:
This act shall take effect immediately.