Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $650 per day for each day such violation persists after the judgement of foreclosure has been issued.
Summary
S02122 amends New York’s Real Property Actions and Proceedings Law to strengthen enforcement of the duty to maintain residential property after a foreclosure judgment has been entered. The bill authorizes two additional public enforcers—the Department of Financial Services (DFS) and the municipality where the property is located—to pursue violations of the foreclosure-maintenance requirement, rather than relying only on existing private or party-based remedies.
If a court or hearing officer finds by a preponderance of the evidence that a foreclosure plaintiff violated the maintenance duty, the bill allows a civil penalty of up to $650 per day for each day the violation continued after the foreclosure judgment. The penalty can continue until the property is transferred to a third party, and municipalities that bring the action may retain the penalties they recover. The bill also allows municipalities to enter and perform emergency repairs when a neglected foreclosed property poses an immediate threat to public health, safety, or welfare, with notice to the plaintiff as soon as practicable. DFS is given rulemaking authority to implement and enforce the new provisions.
Impact
The bill would expand enforcement tools under RPAPL section 1307 by adding public enforcement authority and monetary penalties for post-judgment property maintenance failures in foreclosure cases. It would affect foreclosure plaintiffs, municipalities, DFS, and owners or servicers responsible for maintaining foreclosed residential property, while preserving existing rights and remedies under current law. The measure also creates a new revenue source for municipalities that successfully enforce the provision and clarifies that emergency intervention is permitted for urgent health and safety conditions.
Sentiment
The available voting history suggests strong support for the bill. It passed the Senate Housing, Construction and Community Development Committee unanimously and later passed the Senate floor by wide margins, indicating broad agreement that stronger enforcement is needed to address neglected foreclosed properties. No committee transcript was provided, so the record does not show detailed debate, but the vote totals point to a generally favorable reception.
Contention
The main policy issue is the balance between stronger municipal/state enforcement and the burdens placed on foreclosure plaintiffs, lenders, or servicers who may be responsible for property upkeep after judgment. Supporters appear to favor the bill as a tool to prevent blight, protect neighborhoods, and ensure timely maintenance of abandoned or neglected foreclosed homes. Any opposition would likely center on the size of the daily penalty, the expansion of municipal authority to sue and enter properties for emergency repairs, and the potential for additional compliance and litigation costs for foreclosure parties, though the recorded votes show little visible resistance.
Same As
Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $500 per day for each day such violation persists after the judgement of foreclosure has been issued.
Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $500 per day for each day such violation persists after the judgement of foreclosure has been issued.
Relates to prosecution by the department of financial services (DFS) and municipalities of certain violations regarding residential real property by mortgage lenders and similar entities; directs DFS to promulgate standards of review of whether to prosecute such violations; requires deference to municipalities where both the municipality and DFS are authorized to prosecute such a violation; directs payments of civil penalties issued pursuant to such violations to be paid to DFS if DFS is the prosecuting entity.
Directs the department of financial services to periodically inspect residential real properties for which a lender has a duty to maintain; authorizes the department of financial services or the municipality to impose a $500 a day civil penalty for the failure of a lender to maintain an abandoned property that it has a duty to maintain; requires such lenders to register with the statewide vacant and abandoned property electronic registry.
Allows the department of financial services to have additional oversight of banks and insurance companies that are not currently licensed in this state; provides penalties for violations.
Requires that any penalties for violations of housing standards or building and fire codes be assessed and imposed within fourteen days; increases certain fine amounts for violations of housing standards.
Prohibits any increase in the average monthly rental of a property by a limited-profit housing company unless the appropriate local housing agency certifies that there exists no recorded violations against such property or that all recorded violations have been cleared, corrected or abated, and that such company is maintaining all essential services required to be furnished.
Authorizes municipalities in the county of Orange to add unpaid housing code violation penalties, costs and fines to such municipalities' annual tax levy in accordance with applicable law.