Bill Text: NY A01972 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to notice to tenants in mortgage foreclosure actions; permits tenants who did not occupy the premises at the commencement of the foreclosure action to remain in occupancy for the remainder of the lease term, up to a maximum of three years.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-02-01 - substituted by s885 [A01972 Detail]

Download: New_York-2021-A01972-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          1972

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    January 13, 2021
                                       ___________

        Introduced by M. of A. WILLIAMS -- read once and referred to the Commit-
          tee on Judiciary

        AN  ACT  to  amend  the  real  property  actions and proceedings law, in
          relation to notice to tenants in mortgage foreclosure actions

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivisions 2 and 3 of section 1305 of the real property
     2  actions and proceedings law, as added by chapter  507  of  the  laws  of
     3  2009, are amended to read as follows:
     4    2.  Notwithstanding any other provision of law, a tenant of a unit not
     5  subject to rent control or rent stabilization shall have  the  right  to
     6  remain in occupancy of the unit of the subject residential real property
     7  where  he  or she resides on the date of [mailing] service of the notice
     8  required by subdivision three of this section for the greater of: (a)  a
     9  period  of  ninety  days  from the date of the [mailing] service of such
    10  notice; or (b) for the remainder of the lease term if the  tenant  occu-
    11  pied  the  premises  at  the  commencement  of the foreclosure action or
    12  received a notice pursuant to section thirteen  hundred  three  of  this
    13  article;  or  (c) for the remainder of the lease term, provided that the
    14  lease agreement was entered into in  good faith pursuant to this section
    15  and federal law, up to a maximum of three years, for tenants who did not
    16  occupy the premises at the commencement of the  foreclosure  action  and
    17  therefore did not receive the original notice of service required pursu-
    18  ant  to section thirteen hundred three of this article; provided that if
    19  a successor in interest who acquires  title  to  such  residential  real
    20  property intends to occupy a single unit as his or her primary residence
    21  and  the  unit  is not subject to a federal or state statutory system of
    22  subsidy or other federal or state statutory scheme,  the  successor  may
    23  limit for one unit only, the tenant's right of occupancy to ninety days.
    24  For  a  lease  to  qualify under this subdivision, the tenant under such
    25  lease may not be the owner of the residential real  property,  and  such

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07178-01-1
        A. 1972                             2

     1  lease  must  require  the  payment  of  rent  for  such unit that is not
     2  substantially less than the fair market rent for the  unit,  unless  the
     3  unit is subject to federal or state statutory system of subsidy or other
     4  federal  or  state statutory scheme.  A tenant under paragraph (a) [or],
     5  (b), or (c) of this subdivision shall continue such tenancy  subject  to
     6  any  limitations in this subdivision under the same terms and conditions
     7  as were in effect at the time of entry of the  judgment  of  foreclosure
     8  and  sale, or if no such judgment was entered, upon the terms and condi-
     9  tions that were in effect at the time of the transfer  of  ownership  of
    10  such  property.  For  purposes of this section, "fair market rent" shall
    11  mean rent for a unit of  residential  real  property  of  similar  size,
    12  location and condition.
    13    3.  Notwithstanding  any  other  provision of law, and consistent with
    14  subdivision two of this section, a successor in interest of  residential
    15  real  property  shall  provide written notice to all tenants in the same
    16  manner as required by subdivision four of section thirteen hundred three
    17  of this article: (a) that they are entitled to remain  in  occupancy  of
    18  such property for the remainder of the lease term, or a period of ninety
    19  days  from  the date of mailing of such notice, whichever is greater, on
    20  the same terms and conditions as were in effect at the time of entry  of
    21  the  judgment  of  foreclosure  and  sale,  or  if  no such judgment was
    22  entered, upon the terms and conditions as were in effect at the time  of
    23  transfer  of ownership of such property; and (b) of the name and address
    24  of the new owner. Any person or entity who or which becomes a  successor
    25  in  interest after the issuance of the ninety-day notice provided for in
    26  this subdivision, shall notify all tenants of its name and  address  and
    27  shall  assume  such interest subject to the right of the tenant to main-
    28  tain possession as provided in this subdivision.
    29    § 2. This act shall take effect on the  same  date  and  in  the  same
    30  manner  as  a  chapter  of  the  laws of 2020 amending the real property
    31  actions and proceedings law relating to the definition of  "tenant"  for
    32  purposes  of  mortgage  foreclosures,  as  proposed in legislative bills
    33  numbers S. 5357 and A. 6370, take effect.