New York Assembly Bill A10627

Overview

New York Assembly Bill A10627, introduced by the Committee on Rules at the request of Assembly Member Lavine, aims to amend the Real Property Actions and Proceedings Law concerning the title to abandoned multiple dwellings in cities, towns, or villages. When notified of the city’s intention to institute proceedings on such properties, the bill outlines the responsibilities and timelines for mortgagees, lienors, and lessees.

Key Provisions

1. Notification Process:
   • The bill requires that within five days of serving notice to the property owner, a copy of the certification must also be served to each mortgagee, lienor, and lessee of record.
   • This service can be done personally or by registered mail to the address listed in the recorded instrument. If no address is listed, it should be sent to the person who requested the recording of the instrument.
2. Action Requirements for Mortgagees and Lienors:
   • Upon receiving the notification, mortgagees and lienors have 15 days to either:
     • (a) Commence foreclosure proceedings and move for the appointment of a receiver who must bring the building into compliance with applicable laws within 90 days of appointment or as otherwise agreed or
     • (b) Take possession of the premises as provided in the mortgage and bring the building into compliance within 90 days or as otherwise agreed.
3. Department’s Authority to Institute Proceedings:
   • The department may proceed with legal actions if:
     • (i) The application for the appointment of a receiver is denied.
     • (ii) The appointed receiver fails to bring the building into compliance within the specified time.
     • (iii) The mortgagee or lienor in possession fails to bring the building into compliance within the specified time.
4. Effective Date:
   • The act will take effect 120 days after becoming law and will apply to proceedings commenced on or after that date.

Key Takeaways

1. Timely Notification: The bill mandates a strict timeline for notifying mortgagees, lienors, and lessees when a property is subject to abandonment proceedings.
2. Action Deadlines: Mortgagees and lienors must act within 15 days to address the compliance issues of the abandoned property.
3. Department Oversight: The department retains the authority to take legal action if the responsible parties fail to comply with the regulations within the specified timeframes.
4. Future Applicability: The provisions will apply to new proceedings initiated after the law takes effect, ensuring clarity and structure in handling abandoned multiple dwellings.

To read the entire bill, please click here  A10627.