Authorizes the mortgagee or lienor of an abandoned multiple dwelling to apply for the appointment of a receiver to bring the building into compliance

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          3444

                               2025-2026 Regular Sessions

                                  I N  A S S E M B L Y

                                    January 27, 2025
                                       ___________

        Introduced by M. of A. LAVINE -- read once and referred to the Committee
          on Judiciary

        AN  ACT  to  amend  the  real  property  actions and proceedings law, in
          relation to title to an abandoned multiple dwelling in a city, town or
          village

          THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section 1.  Subdivision 3 of section 1972 of the real property actions
     2  and  proceedings  law,  as  added by chapter 864 of the laws of 1973, is
     3  amended to read as follows:
     4    3. Within five days of the service of notice on the owner, a  copy  of
     5  the  certification  shall be served on each mortgagee, lienor and lessee
     6  of record, personally or by registered mail to the address set forth  in
     7  the recorded instrument or, if no address appears therein, to the person
     8  at  whose  request the instrument was recorded.  Such copy shall, in the
     9  case of  a  mortgagee  or  lienor,  be  accompanied  by  a  notice  that
    10  proceedings  pursuant to this article may be instituted unless the mort-
    11  gagee or lienor,  within  fifteen  days  of  such  mailing,  either  (A)
    12  commences  proceedings  to  foreclose the mortgage or lien AND MOVES FOR
    13  THE APPOINTMENT OF A RECEIVER WHICH BRINGS THE BUILDING INTO  COMPLIANCE
    14  WITH  THE  APPLICABLE PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE
    15  OF APPOINTMENT OR SUCH LONGER PERIOD AS MAY BE ESTABLISHED BY  AGREEMENT
    16  WITH  THE DEPARTMENT or [enters into an agreement with the department to
    17  bring the building] (B) TAKES POSSESSION OF THE PREMISES AS PROVIDED  IN
    18  THE MORTGAGE AND BRINGS THE BUILDING into compliance with the applicable
    19  provisions  of law WITHIN NINETY DAYS FROM THE DATE OF TAKING POSSESSION
    20  OR SUCH LONGER PERIOD AS  MAY  BE  ESTABLISHED  BY  AGREEMENT  WITH  THE
    21  DEPARTMENT.  THE DEPARTMENT MAY, NOTWITHSTANDING ANYTHING TO THE CONTRA-
    22  RY  IN  THIS SUBDIVISION, INSTITUTE PROCEEDINGS PURSUANT TO THIS ARTICLE
    23  IF:  (I) THE APPLICATION FOR APPOINTMENT OF A RECEIVER IS  DENIED,  (II)
    24  THE RECEIVER FAILS TO BRING THE BUILDING INTO COMPLIANCE WITH THE APPLI-

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06784-01-5
        A. 3444                             2

     1  CABLE  PROVISIONS OF LAW WITHIN NINETY DAYS FROM THE DATE OF APPOINTMENT
     2  OR SUCH LONGER PERIOD AS  MAY  BE  ESTABLISHED  BY  AGREEMENT  WITH  THE
     3  DEPARTMENT;  OR  (III)  THE  MORTGAGEE  OR LIENOR IN POSSESSION FAILS TO
     4  BRING THE BUILDING INTO COMPLIANCE WITH THE APPLICABLE PROVISIONS OF LAW
     5  WITHIN  NINETY  DAYS  FROM  THE DATE OF TAKING POSSESSION OR SUCH LONGER
     6  PERIOD AS MAY BE ESTABLISHED BY AGREEMENT WITH THE DEPARTMENT.
     7    § 2.  This act shall take effect on  the  one  hundred  twentieth  day
     8  after  it  shall  have  become  a  law  and  shall  apply to proceedings
     9  commenced on or after such date.