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.
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.
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