What's happening
The bill requires that in NYC, court-appointed receivers and managing agents in mortgage foreclosures must be selected from a city-approved list.
Why it matters
Increases oversight and accountability. By requiring receivers and managing agents in foreclosure cases to be selected from a city-vetted list, the bill aims to ensure only qualified, vetted individuals manage foreclosed properties, potentially reducing mismanagement or conflicts of interest.
Empowers local housing agencies. The city agency responsible for enforcing housing laws gains the authority to determine who is qualified to serve as a receiver or managing agent, strengthening local control over property management during foreclosure.
Potentially improves property conditions for residents. Since managing agents must be approved by the city agency focused on housing standards, tenants in foreclosed properties may benefit from better maintenance and adherence to housing codes during the foreclosure process.
Limits judicial discretion in appointments. Judges in NYC foreclosure cases would be restricted to choosing from the approved list, reducing opportunities for favoritism or arbitrary selections and promoting a more standardized process.
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Who cares
Headline styles
Tighten Foreclosure Receiver Rules
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to housing, construction and community development
- Recalled from assembly
- 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.
Limit Foreclosure Receiver Choices
In Assembly Committee · Judiciary · Sponsor Victor M. Pichardo
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1072
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
Introduced by Sen. RIVERA -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to amend the real property actions and proceedings law, in relation to the appointment of receivers in actions to foreclose a mortgage
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1325 of the real property actions and proceedings law, as added by chapter 312 of the laws of 1962, is amended to read as follows:
1. (a) Where the action is for the foreclosure of a mortgage providing that a receiver may be appointed without notice, notice of a motion for such appointment shall not be required.
(b) In a city with a population of one million or more, the agency having jurisdiction for administering and enforcing the laws, rules and regulations relating to the operation, repair or maintenance of residential real property may submit to the chief administrative judge of the supreme court a list of persons such agency has determined to be qualified to be appointed as a receiver or as a managing agent. Where such agency submits such list to the chief administrative judge, the court may only appoint a receiver whose name appears on such list, and such receiver may only appoint a managing agent whose name appears on such list.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02112-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2013-2014: S5562 2015-2016: S1425
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.