What's happening
This bill requires that tenants forced to move before their lease ends due to foreclosure receive up to $1,500 in relocation costs.
Why it matters
Provides financial relief for tenants. By requiring up to $1,500 in relocation costs from foreclosure proceeds, the bill helps tenants cover moving expenses when they're forced out unexpectedly, reducing financial disruption.
Incentivizes responsible foreclosure practices. This measure may encourage lenders and property owners to consider the impact of foreclosure on tenants, potentially influencing how foreclosures are managed and communicated.
Establishes a clear legal right for tenants. The amendment sets a legal precedent ensuring tenants are not left without support during foreclosures, strengthening tenant protections during housing instability.
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Who cares
Tenants in foreclosed properties
Lessees required to vacate before their leases end would receive relocation costs of up to $1,500 per lessee from the foreclosure sale proceeds.
Officers conducting foreclosure sales
They would be required to pay eligible tenants’ relocation costs out of the sale proceeds.
Mortgage lenders and other foreclosure creditors
Required relocation payments would draw on sale proceeds otherwise available for distribution.
Headline styles
Relocation Help for Tenants
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2443
2017-2018 Regular Sessions
IN SENATE
January 13, 2017
Introduced by Sens. HAMILTON, PERKINS, PERSAUD -- 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 granting certain tenants the right to relocation costs from the proceeds of a foreclosure sale
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1354 of the real property actions and proceedings law is amended by adding a new subdivision 2-a to read as follows:
2-a. The officer conducting the sale shall pay out of the proceeds, the relocation costs, not exceeding one thousand five hundred dollars per lessee, of any lessee of an interest in the property sold who is required to vacate the real property prior to the termination of his or her lease.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00706-01-7
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 granting certain tenants the right to relocation costs from the proceeds of a foreclosure sale
Purpose
To provide relocation assistance for tenants whose property owner's property enters into foreclosure.
Summary of provisions
Section 1 amends 1354 of the real property actions and proceedings law by adding new subdivision 2-a regarding disbursing funds from the sale of the property to tenants whose leases have not expired, not to exceed $1,500.
Section 2 states the effective date.
Justification
Securing housing options for NYS residents is crucial in this economic climate. The government needs to protect residents should their property owner's property go into foreclosure. As it stands finding affordable housing in NYS is difficult. This is especially the case when residents are unexpectedly displaced. However, there is no current law/statute in place to this effect. This bill would address the current situation by ensuring that part of the proceeds from the sale of any foreclosed property would be set aside to assist current lease holders with relocation assistance.
Legislative history
2010: A.4678/S.2955 - Held in Housing, construction and Community Development 2011: A.3661/S.3589 - Referred to Housing, Construction & Community Development 2012: A.2661/S.3589 Referred to Housing, Construction & Community Development 2015: S4347 Referred to Housing, Construction & Community Development
Fiscal implications
To be determined.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.