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History
- Recommit, enacting clause stricken
- Referred to housing, construction and community development
- Returned to senate
- Died in assembly
- Referred to judiciary
- Delivered to assembly
- Passed senateVote 37–24
- Amended on third reading (t) 1363c
- Amended on third reading 1363b
- Advanced to third reading
- Amended 1363a
- 2nd report cal.
Show 2 earlier actions
- 1st report cal.19
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides special protections to tenants of properties that have been foreclosed
In Assembly Committee · Judiciary · Sponsor Michele Titus
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the civil practice law and rules and the real property actions and proceedings law, in relation to evictions of tenants upon foreclosure of a property
Purpose
Provides special protections to tenants of properties that have been foreclosed.
Summary of provisions
1. Amends section 5102 of the CPLR to afford tenants in residential buildings with fewer than 6 dwelling units 90 days notice prior to an execution directing delivery of the premises if that property has been foreclosed in the prior 6 months. 2. Amends section 221 of the RPAPL to afford tenants in residential buildings with fewer than 6 dwelling units 90 days notice prior to an execution directing delivery of the premises if that property has been foreclosed in the prior 6 months. 3. Amends section 713 of the RPAPL to afford tenants in residential buildings with fewer than 6 dwelling units 90 days notice prior to commencement of a special proceeding to obtain possession the premises if that property has been foreclosed in the prior 6 months. 4. Amends section 1301 of the RPAPL to require foreclosure summonses to contain notices to tenants of residential buildings with fewer than 6 dwelling units. 5. Amends section 1303 of the RPAPL to give tenants in residential buildings with fewer than 6 dwellings units notice similar to the notice already given to homeowners in foreclosure of the availability of housing counseling services. 6. Amends section 1305 of the RPAPL to require notice to tenants in residential buildings with fewer than 6 dwelling units of the commencement of a foreclosure action, the result of that action and any resulting change in building ownership. New-tenants must also be given notice of the pendency and status of a foreclosure action at the time they sign a lease. 7. If notice of a change of building ownership is not given within 30 days to tenants in a residential building with fewer than 6 dwelling units, such tenants are relieved of their obligation to pay rent until such notice is given. 8. Amends section 1311 of the RPAPL to provide that foreclosing entities must make good faith efforts to ascertain the identity of any tenants residing in a covered building before serving them notice of a foreclosure as 'john or jane doe" 9. Amends sections 1311 and 1351 of the RPAPL to provide that tenancy of tenants not named in a foreclosure action is not affected by the judgment in that action.
Read the full memo (860 words)
Justification
While New York policymakers have been focusing on finding ways to assist homeowners stay in their homes and asking financial institutions to work with families to assist in that request, the plight of renters living in foreclosed properties has been largely forgotten. Many properties facing foreclosure in New York -- including single-family homes and multifamily buildings -- are investment properties occupied by these renters, leaving thousands of families at risk of eviction. More importantly, these evictions proceed against renters who have paid their rent on a timely and regular basis.
When a landlord becomes in default on their mortgage they are notified after a certain period of time that a foreclosure action has been started against them in court. They can either choose to negotiate with the lender on an acceptable payment plan or if so needed they can discuss a modification of the mortgage to make the loan more afford. If the landlord does not become current on the mortgage, the foreclosure process will continue and the home will eventually be put up for auction. When this home is put up for auction it can either be purchased by an individual, another banking or lending institution, or it can remain the property of the foreclosing lending institution and become which is referred to as an REO property. Whatever the case may be, the foreclosing bank will then file an eviction notice against the landlord to clear the property. Unfortunately more often than not the landlord is not the sole occupant of the property. In fact many times the property is not owner-occupied and what results is scores of tenants not realizing they have lost their shelter until there is a Marshal's notice on the door letting them know they have to move because the house has been sold.
On HousingPolicy.org, a project of the Center for Housing Policy, the impact of this issue has been discussed and studied by various non-profits.
* A 2008 study of rental housing in the United States which notes that almost 20 percent of all foreclosures are rental properties. * Another 2008 study indicates that rental properties could be involved in 38 percent of foreclosures nationally and approximately half of foreclosures in Nevada, Illinois, and New York.
This legislation would provide notice to affected tenants of a foreclosure and of any plans to recover possession of the property, as well as an additional 90 days notice before any applicable proceeding is commenced.
Legislative history
None. This is new legislation.
Fiscal implications
None.
Effective date
This act shall take effect on the 90th day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.