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Who cares
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Sponsors
1 Co-sponsor
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
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 for the appointment of foreclosure receivers and managing agents in N.Y. city
In Assembly Committee · Judiciary · Sponsor Victor M. Pichardo
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S1425
Title of bill
An act to amend the real property actions and proceedings law, in relation to the appointment of receivers in actions to foreclose a mortgage
Purpose
Enables agencies with the jurisdictional power to administer and enforce the statutes, laws, rules and regulations, relating to the operation, repair and maintenance of residential real property to appoint a list of qualified potential receivers or managing agents.
Summary of provisions
Subdivision one of section 1325 of the real property actions and proceedings law is amended by the addition of section (b). The new sections requires that cities with a population of one million or more persons give authority to appropriate agency to create a list of potential receivers or managing agents.
Justification
At the height of the housing boom, speculators purchased multi-family housing at inflated prices using unrealistic expectations of future revenue. This has led to situations where owners cannot afford to pay the debt service on the large loans they took out. Many tenants now find their buildings to be in significant disrepair as owners have cut back on maintenance as well.
When a property enters foreclosure, the judge appoints a receiver to manage the property during the foreclosure process. Currently, judges have complete discretion which maybe at no fault of the judge, can lead to receivers that are not prepared or qualified to manage distressed multifamily property. This leads bad properties to languish in disrepair or decent properties to decline.
This piece of legislation will allow appropriate agencies to state who they find qualified to be receivers or managing agents. This list would hold these agencies accountable for their appointments, which is not the case currently. This ensures that those who are appointed as receivers or managing agents are qualified individuals.
Legislative history
New Bill
Fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.