What's happening
This bill doubles the maximum civil penalty for certain mortgage violations from $500 to $1,000 per day per property.
Why it matters
Increases financial consequences for mortgage holders. By doubling the maximum daily penalty, the bill makes it much more costly for mortgagees and their agents to violate property maintenance requirements, creating a stronger incentive for compliance.
Potentially speeds up property repairs and code compliance. The higher penalty could prompt banks and mortgage servicers to address violations—like neglect of foreclosed or abandoned properties—more quickly, benefiting neighborhoods affected by blighted properties.
Could raise costs for non-compliant entities. Banks, mortgage companies, or their agents who fail to maintain properties could face significantly higher cumulative penalties, which might impact their business practices or financial planning.
Signals a tougher state stance on property neglect. The amendment demonstrates the state’s intent to crack down harder on property maintenance violations, aiming to protect communities from the negative effects of poorly maintained properties.
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Who cares
Headline styles
Increase Civil Penalties Limit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.459
- Referred to housing, construction and community development
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.881
- Referred to housing, construction and community development
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2700
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. KENNEDY -- 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 increasing the maximum civil penalty
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (a) of subdivision 8 of section 1308 of the real property actions and proceedings law, as added by section 1 of part Q of chapter 73 of the laws of 2016, is amended to read as follows:
(a) Violations of this section may be heard before a hearing officer or a court of competent jurisdiction. If it shall appear to the satisfaction of the hearing officer or the court, based on the preponderance of the evidence, that the mortgagee or agent of a mortgagee has violated this section, a civil penalty may be issued by the hearing officer or the court in the amount of up to [five hundred] one thousand dollars per day per property for each day the violation persisted.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03659-01-9
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 increasing the maximum civil penalty
Purpose
To require banks and finance companies to actively rehabilitate and maintain foreclosed properties which are a primary source of blight in neighborhoods and reduce property values for homes within a 1/8 mile radius of the foreclosed property.
Summary of provisions
Section 1308 of the real property, actions and proceedings law is amended to increase the per day fines from $500 to $1,000 for banks responsible for foreclosed properties.
Justification
Despite passing the Foreclosure Relief Act, some banks are still not taking the initiative to maintain these properties or take the law seri- ously.
Due to New York State's struggling financial situation a financial crisis emerged causing citizens to fall behind on their mortgages and in many instances leave or abandon their homes. The foreclosing institution is statutorily deemed taking control of the property and be responsible for maintenance and upkeep. The unmaintained and blighted home impacts the surrounding neighborhoods and there must be a priority in taking care of and maintaining these properties. This law would obligate mort- gage foreclosure plaintiffs to act and financial institutions cannot delay in taking action in providing upkeep on the vacant dwelling itself.
This will allow local governments to motivate banks or the banks will face a larger fine for their inaction.
Legislative history
2017-18: S.5054 Referred to Housing, Construction and Community Develop- ment
Fiscal implications
Positive revenue from collecting increased fines.
Effective date
Immediately after the bill has become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.