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Sponsors
2 Co-sponsors
History
- Reported and committed to finance
- Referred to banks
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.
Directs the department of financial services to establish an electronic database of residential real property that was foreclosed upon
In Assembly Committee · Banks · Sponsor Helene Weinstein
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the banking law, in relation to establishing a statewide electronic database of foreclosed residential real property; and to amend the real property actions and proceedings law, in relation to authorizing the attorney general to enforce the duty to maintain foreclosed property
Purpose
The purpose of this legislation is to ensure financial institutions that obtain a judgment of foreclosure and sale on real residential property adhere by the legal requirement to maintain such property. To better hold these financial institutions accountable, this legislation: requires the department of financial services establish a statewide database of foreclosed real residential property with essential information made available to municipalities and, upon a freedom of information law request, non-government entities; demands the department of financial services establish a toll-free hotline for residents to report foreclosed real residential properties; and authorizes the attorney general to impose fines and initiate legal proceedings against financial institutions that fail to adhere by the duty to maintain foreclosed real residential properties they possess.
Summary of provisions
Section 1: Amends the banking law by adding a new section 37-b to require financial institutions that obtain a judgment of foreclosure and sale on a real residential property submit a notice to the department of financial services with essential contact and geographical information on such property within ten days of learning the foreclosed residential real property is vacant or abandoned. Any new information or changes to existing information contained in the original notice must be submitted to the department of financial services no later than ten days after the financial institution learned of the new or changed information.
Read the full memo (724 words)
The department of financial services is required to establish and maintain a statewide electronic database of the information received on foreclosed residential real property. The office of the attorney general and municipalities with foreclosed residential real property listed on the electronic database are granted access to the database for the purposes of enforcing the duty to maintain such property. Neighborhood associations, nonprofits, and other non-government entities authorized to enforce the duty to maintain are granted access to the database upon filing a freedom of information law request.
The department of financial services is required to establish and maintain a toll-free hotline or internet web address for state residents to contact with reports of foreclosed residential real property.
Section 2: Amends section 1307 of the real property actions and proceeding law by adding two new subdivisions. Subdivision 9 authorizes the attorney general to institute a civil action or proceeding against financial institutions to enforce the duty to maintain. Subdivision 10 authorizes the office of the attorney general to impose a fine of $1,000 per real residential property on financial institutions that fail to maintain such property for which they have obtained a judgment of foreclosure.
Section 3: The act takes effect one hundred an eighty days after it becomes law. However, effective immediately, actions necessary to
implement the provisions of the act are authorized and directed to be completed before the one hundred and eighty days.
Justification
Section 1307 of the real property actions and proceedings law extends the duty to maintain property to owners, including financial institutions, that are awarded a judgment of foreclosure, and allows municipalities, tenants, or boards of managers with regards to a condo, the right to enforce the duty to maintain after at least seven days' notice, unless emergency repairs are required, and to have a cause of action to recover costs incurred as a result of maintaining the property. However, a series of investigations titled "The Next Great American Robbery" provide evidence that financial institutions in possession of these foreclosed homes fail to properly maintain these properties, municipalities often face many challenges in identifying lenders when attempting to enforce the duty to maintain, and the legal process for municipalities to recover the costs incurred has proven to be cumbersome and costly. This legislation is an effort to make information on foreclosed homes in the state easily accessible to municipalities and non-government entities to better enforce the duty to maintain, while holding financial institutions accountable if they fail to adhere by state law.
Legislative history
New Bill.
Fiscal implication
To be determined.
Effective date
On January first, next succeeding the date upon which 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.