What's happening
The bill requires courts in New York City to appoint receivers and managing agents for foreclosed properties only from an approved agency list.
Why it matters
Limits court discretion by requiring the use of a pre-approved list of qualified receivers and managing agents. , aiming to ensure that only vetted individuals manage foreclosed properties—potentially reducing mismanagement, fraud, or neglect.
Empowers city agencies (such as NYC’s Department of Housing Preservation and Development). to determine who is qualified to oversee distressed properties, which could lead to higher standards for property maintenance and better outcomes for tenants.
May make the process of appointing a receiver more transparent and accountable. , since the list is subject to agency oversight and not simply judicial preference or private connections.
Could affect the speed and efficiency of foreclosure proceedings. , as the pool of eligible receivers and agents may be smaller and subject to agency updates, potentially reducing conflicts of interest but also possibly causing administrative delays.
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Who cares
Headline styles
Tighten Foreclosure Receiver Rules
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
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.
Require Qualified Foreclosure Managers
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
481
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
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.
LBD05462-01-9
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 the appointment of receivers in actions to foreclose a mort- gage
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 poten- tial 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/ No Same as
2015-2016: S1425/ A7340 Pichardo
2017-2018: S1072/ A5953 Pichardo
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.