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A00393 Summary:

BILL NOA00393
 
SAME ASSAME AS S05706
 
SPONSORCruz
 
COSPNSR
 
MLTSPNSR
 
Amd §1308, RPAP L
 
Relates to increasing the maximum civil penalty from $500 to $1000 per day per property for each day the mortgagee or agent of the mortgagee has been in violation.
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A00393 Actions:

BILL NOA00393
 
01/09/2023referred to judiciary
01/03/2024referred to judiciary
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A00393 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A393
 
SPONSOR: Cruz
  TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to increasing the maximum civil penalty   PURPOSE OR GENERAL IDEA OF BILL:: To require banks and finance Companies to actively rehabilitate and maintain foreclosed properties which are a primary source of blight in neighborhoods and reduce property values for homes within a 1/8 mile radius of the foreclosed property.   SUMMARY OF SPECIFIC PROVISIONS:: Section 1: Amends section 1308 of the real property and proceedings law to increase the per day fines from $500 to $1000 for banks responsible for foreclosed properties. Section 2: Sets the effective date.   JUSTIFICATION:: Despite passing the Foreclosure Relief Act, some banks are still not taking the initiative to maintain these properties or take the law seri- ously. Due to New York State's struggling financial situation, a financial crisis emerged causing citizens to fall behind on their mortgages and in many instances leave or abandon their homes. The foreclosing institution is statutorily deemed taking control of the property and responsible for maintenance and upkeep. The unmaintained and blighted home impacts the surrounding neighborhoods and there must be a priority in taking care of and maintaining these properties. Multiplied by thousands of homes facing foreclosure and thousands more already foreclosed on and the proliferation of blight and its negative consequences on communities is a daily problem for tens of thousands of New Yorkers. This law would obligate mortgage foreclosure plaintiffs to act. Financial institutions should not be allowed to delay in taking action in providing upkeep on the vacant dwelling itself. This measure will allow local governments to motivate banks or the banks will face a larger fine for their inaction.   PRIOR LEGISLATIVE HISTORY:: 2017-18: S.5054 Referred to Housing, Construction and Community Develop- ment 2019-20: S.2700 Referred to Housing, Construction and Community Develop- ment   FISCAL IMPLICATIONS:: Positive revenue from collecting increased fines.   EFFECTIVE DATE:: This act shall take effect immediately.
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A00393 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           393
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2023
                                       ___________
 
        Introduced  by  M. of A. CRUZ -- read once and referred to the Committee
          on Judiciary
 
        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation to increasing the maximum civil penalty
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph (a) of subdivision 8 of section 1308 of the  real
     2  property actions and proceedings law, as added by section 1 of part Q of
     3  chapter 73 of the laws of 2016, is amended to read as follows:
     4    (a)  Violations  of this section may be heard before a hearing officer
     5  or a court of competent jurisdiction. If it shall appear to  the  satis-
     6  faction  of the hearing officer or the court, based on the preponderance
     7  of the evidence, that the mortgagee or agent of a mortgagee has violated
     8  this section, a civil penalty may be issued by the  hearing  officer  or
     9  the court in the amount of up to [five hundred] one thousand dollars per
    10  day per property for each day the violation persisted.
    11    § 2. This act shall take effect immediately.
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02299-01-3
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