What's happening
This bill exempts a debtor's interest in their rent-stabilized lease from being included in bankruptcy proceedings in New York.
Why it matters
Protects tenants in rent-stabilized apartments from losing their lease during bankruptcy,. which can be crucial for maintaining stable housing, especially in New York City where affordable rentals are scarce.
Prevents creditors and bankruptcy trustees from treating rent-stabilized leases as assets to be claimed or sold off,. ensuring that tenants aren’t pressured or evicted as a result of their financial distress.
Helps preserve the broader rent-stabilization system. by reducing incentives for landlords or speculators to push vulnerable tenants out during bankruptcy proceedings, thereby maintaining long-term affordability and housing stability in affected communities.
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Who cares
Headline styles
Protect Rent-Stabilized Leases
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.403
- Referred to judiciary
- Referred to judiciary
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.
Protect Rent-Stabilized Leases
In Assembly Committee · Judiciary · Sponsor N. Nick Perry
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3137
2019-2020 Regular Sessions
IN SENATE
February 4, 2019
Introduced by Sen. MYRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the debtor and creditor law, in relation to exempting a debtor's interest in his or her rent-stabilized lease from bankruptcy proceedings
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 282 of the debtor and creditor law, as amended by chapter 206 of the laws of 1998, is amended to read as follows:
2. Bankruptcy exemption for right to receive benefits. The debtor's right to receive or the debtor's interest in: (a) a social security benefit, unemployment compensation or a local public assistance benefit; (b) a veterans' benefit; (c) a disability, illness, or unemployment benefit; (d) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor; [and] (e) the debtor's interest in his or her rent-stabilized lease; and (f) all payments under a stock bonus, pension, profit sharing, or similar plan or contract on account of illness, disability, death, age, or length of service unless (i) such plan or contract, except those qualified under section 401, 408 or 408A of the United States Internal Revenue Code of 1986, as amended, was established by the debtor or under the auspices of an insider that employed the debtor at the time the debtor's rights under such plan or contract arose, (ii) such plan is on account of age or length of service, and (iii) such plan or contract does not qualify under section four hundred one (a), four hundred three (a), four hundred three (b), four hundred eight, four hundred eight A, four hundred nine or four hundred fifty-seven of the Internal Revenue Code of nineteen hundred eighty-six, as amended.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02573-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the debtor and creditor law, in relation to exempting a debtor's interest in his or her rent-stabilized lease from bankruptcy proceedings
Purpose
The purpose of this legislation is to protect a debtor facing bankrupt- cy. Exemption shall be granted to the debtor interest in his or her rent-stabilized lease.
Summary of provisions
Section one of the bill amends subdivision 2 of § 282 of the debtor and creditor law to add the debtor's interest in his or her rent stabilized lease as authorized bankruptcy exemption for right to receive benefits. This will ensure that all benefits remain in place without regard to the debtor's financial standing.
Section two of the bill provides the effective date.
Justification
As of 2009, 1,412,838 non-business bankruptcy claims were filed within the United States according to the Administrative Office of the U.S. Courts. Under subdivision 2 of section 282 of the debtor and creditor law, exemptions for the right to receive benefits are made for debtors facing bankruptcy. This bill would reiterate such benefits, while adding that the debtor's interest in his or her rent stabilized lease be upheld and respected.Additionally this bill looks to ensure that one's lease on a rent-stabilized property cannot be nullified or held as collateral as a result of the filing of bankruptcy of the debtor, and shall be enti- tled as an exemption benefit within this subdivision.
Legislative history
2017-2018: A.547 - Judiciary 2015-2016: A.6350 - Judiciary
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.