What's happening
The bill requires mortgage servicers to pay homeowners' association or cooperative fees to maintain vacant and abandoned residential properties.
Why it matters
Shifts financial responsibility for HOA/co-op fees to mortgage servicers. during foreclosure or abandonment, ensuring that these entities—not neighborhoods or remaining owners—cover costs for maintaining shared amenities and services when a property stands vacant.
Reduces the risk of neglected properties causing blight or safety issues. , as continuous payment of association fees helps maintain landscaping, building repairs, security, and other communal functions that can otherwise deteriorate when units are abandoned.
Protects the financial stability of homeowners’ associations and cooperatives. , which often depend on full participation to avoid budget shortfalls. This can help prevent increased fees or special assessments for neighbors due to delinquencies from vacant properties.
May increase accountability among mortgage servicers. , incentivizing them to resolve foreclosures or property transfers more swiftly, since they are now on the hook for ongoing ownership costs until the property changes hands.
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Who cares
Headline styles
Secure Empty Homes
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Signed chap.168
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.69
- Substituted for A1800
- Referred to judiciary
- Delivered to assembly
- Passed senateVote 43–18
- Advanced to third reading
- 2nd report cal.
- 1st report cal.275
Show 1 earlier action
- 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.
Maintain Abandoned Homes
Assembly Floor Calendar · Sponsor William Magnarelli
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4182
2019-2020 Regular Sessions
IN SENATE
March 4, 2019
Introduced by Sen. SALAZAR -- 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 inspecting, securing and maintaining vacant and abandoned residential property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 4 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:
4. If the posted notice is not responded to or persists for seven consecutive calendar days without contact with the borrower, property owner or occupant indicating that the property is not vacant or abandoned, or if an emergent property condition that could reasonably damage, destroy or harm the property arises, the servicer shall:
(a) in cases where the property contains two or more points of ingress or egress, replace no more than one door lock to provide subsequent access to the property;
(b) secure, replace or board up broken doors and windows;
(c) secure any part of the property that may be deemed an attractive nuisance including, but not limited to, a water feature that could create a drowning risk, refrigerator or freezer units, outbuildings, wells or septic tanks;
(d) take reasonable measures to ensure that pipes, ducts, conductors, fans and blowers do not discharge harmful gases, steam, vapor, hot air, grease, smoke, odors or other gaseous or particulate waste directly upon abutting or adjacent public or private property or that of another tenant;
(e) where appropriate, winterize the applicable plumbing and heating systems;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00195-01-9
S. 4182 2
(f) provide basic utilities including, but not limited to, water, electricity, natural gas, propane and sewer service, as appropriate and when allowed by the local utility provider, that are needed for the operation of a sump pump or dehumidifier, or when there are jointly owned or shared utilities with adjoining properties or units, except for turning off water service to prevent flooding or water leaks in the property, or when other utility service could reasonably create a hazard to the property or an unauthorized occupant or person entering the property;
(g) remove and remediate any significant health and safety issues, including outstanding code violations;
(h) take reasonable measures to prevent the growth of harmful mold;
(i) respond to government inquiries regarding property condition, subject to restrictions regarding financial privacy; [and]
(j) ensure that the notice required to be posted in subdivision three of this section remains posted on an easily accessible part of the property that would be reasonably visible to the borrower, property owner or occupant so long as the duty to maintain applies; and
(k) pay homeowners' association or cooperative fees as needed to maintain the property.
§ 2. This act shall take effect immediately.
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 inspecting, securing and maintaining vacant and abandoned residential property
Purpose
To require mortgage holders of vacant and abandoned residential proper- ties that are part of a homeowners association (HOA)or co-op to continue paying HOA or cooperative fees when a property has been abandoned during the foreclosure process.
Summary of provisions
Section 1: Amends § 1308(4) of the Real Property Actions and Proceedings Law by adding new subdivision (k) to require holders of mortgages on vacant and abandoned residential properties to continue paying HOA and cooperative fees during the pending foreclosure, if applicable.
Section 2: Establishes the effective date.
Justification
Vacant and abandoned residential properties have become a significant issue in New York. Many times these properties are abandoned by their owner during a pending foreclosure. These properties then become "zombie properties" with no entity responsible for their upkeep during the pend- ing foreclosure. Often these properties become dilapidated and blighted before the foreclosure is finalized.
In 2016, the Legislature passed Chapter 73 of the Laws of 2016 that required the holders of mortgages on "zombie properties" to take respon- sibility for the upkeep and securing of these properties. While the law is focused on single-family houses, condominiums and co -ops are also subject to becoming "zombie properties". Maintenance and upkeep are often handled through a homeowners association. When a condo or co-op is abandoned by an owner, they stop paying HOA fees. This places a finan- cial burden on the HOA who must maintain the abandoned property to prevent damage or deterioration to other properties in the association.
This legislation would amend Chapter 73 of 2016 to require mortgage holders to pay HOA or co-op fees as part of their duty to maintain aban- doned properties they still hold mortgages on. This will ensure that HOAs and coop associations are able to maintain these properties during the pending foreclosure, preventing physical or economic damage to the other properties in the association.
Legislative history
2017-2018: A.6470
Fiscal implications
None to the State.
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.