Bill Text: NY S00769 | 2015-2016 | General Assembly | Introduced

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Bill Title: Requires certain individuals or entities to maintain a property in good condition during the term of foreclosure; creates a class B misdemeanor for any person who violates such provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S00769 Detail]

Download: New_York-2015-S00769-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          769
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 7, 2015
                                      ___________
       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 and the
         penal law, in relation to requiring a plaintiff in a mortgage foreclo-
         sure action to maintain the subject property in good faith
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  This  act  shall  be  known and may be cited as the "Good
    2  Neighbor Act".
    3    S 2. Subdivision 1 of section 1307 of the real  property  actions  and
    4  proceedings law, as added by chapter 507 of the laws of 2009, is amended
    5  to read as follows:
    6    1.  A  plaintiff [in] WHO COMMENCES a mortgage foreclosure action [who
    7  obtains], INCLUDING A LENDER, AN ASSIGNEE OR A MORTGAGE  LOAN  SERVICER,
    8  SEEKING  a judgment of foreclosure and sale pursuant to section thirteen
    9  hundred fifty-one of this article, involving residential real  property,
   10  as  defined  in  section  thirteen hundred five of this article, that is
   11  vacant, or becomes vacant after COMMENCEMENT OF THE ACTION OR the  issu-
   12  ance  of such judgment, or is abandoned by the mortgagor but occupied by
   13  a tenant, as defined under section thirteen hundred five of  this  arti-
   14  cle,  shall  IN  GOOD  FAITH  maintain  such property until such time as
   15  ownership has been transferred through the closing of title in  foreclo-
   16  sure, or other disposition, and the deed for such property has been duly
   17  recorded;  provided,  however,  that  if  a municipality or governmental
   18  entity holds a mortgage subordinate to one  or  more  mortgages  on  the
   19  residential real property, the municipality or governmental entity shall
   20  not  be  subject  to  the  requirements of this section. AS USED IN THIS
   21  SECTION, THE TERM "GOOD FAITH" SHALL BE DEFINED AS HONESTY IN  FACT  AND
   22  THE OBSERVANCE OF REASONABLE STANDARDS OF FAIR DEALING.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03236-01-5
       S. 769                              2
    1    S  3.  The penal law is amended by adding a new section 270.40 to read
    2  as follows:
    3  S 270.40 CRIMINAL  NEGLIGENCE  OF VACANT REAL PROPERTY UNDER FORECLOSURE
    4             PROCEEDINGS.
    5    A PERSON IS GUILTY OF CRIMINAL  NEGLIGENCE  OF  VACANT  REAL  PROPERTY
    6  UNDER  FORECLOSURE PROCEEDINGS WHEN HE OR SHE VIOLATES THE PROVISIONS OF
    7  SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SEVEN OF THE  REAL  PROPERTY
    8  ACTIONS AND PROCEEDINGS LAW.
    9    CRIMINAL   NEGLIGENCE   OF  VACANT  REAL  PROPERTY  UNDER  FORECLOSURE
   10  PROCEEDINGS IS A CLASS B MISDEMEANOR.
   11    S 4. This act shall take effect immediately.