S 2117: 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.

  
  STATE OF NEW YORK ________________________________________________________________________ 2117 2025-2026 Regular Sessions  IN SENATE January 15, 2025 ___________ Introduced by Sen. FAHY -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT to amend the real property actions and proceedings law, in relation to prosecution by the department of financial services and municipalities of certain violations regarding residential real prop- erties The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property actions and proceedings law is amended by 2 adding a new section 1360 to read as follows: 3 § 1360. Superintendent of financial services; prosecution of 4 violations. 1. The superintendent of financial services shall promul- 5 gate, by regulation, standards of review for determinations by the 6 department of financial services of whether to prosecute violations 7 regarding residential real property, as authorized under this article. 8 2. Where the department of financial services and a municipality are 9 both authorized to prosecute a violation regarding residential real 10 property under this article, the department of financial services shall 11 not seek to prosecute such violation unless it receives confirmation 12 from such municipality that such municipality does not intend to prose- 13 cute such violation itself. 14 3. Where a hearing officer or court of competent jurisdiction decides 15 in favor of the department of financial services in a proceeding alleg- 16 ing a violation regarding residential real property under this article, 17 the proceeds of any civil penalty issued pursuant to such decision shall 18 be payable to the department of financial services for the purposes of 19 prosecuting future violations under this article. 20 4. For the purposes of this section, the term "residential real prop- 21 erty" shall mean real property located in this state improved by any 22 building or structure that is or may be used, in whole or in part, as EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05093-01-5 
 S. 2117 2 1 the home or residence of one or more persons, and shall include any 2 building or structure used for both residential and commercial purposes. 3 § 2. This act shall take effect on the sixtieth day after it shall 4 have become a law. Effective immediately, the addition, amendment and/or 5 repeal of any rule or regulation necessary for the implementation of 6 this act on its effective date are authorized to be made and completed 7 on or before such effective date.