S 2122: Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $650 per day for each day such violation persists after the judgement of foreclosure has been issued.

  
  STATE OF NEW YORK ________________________________________________________________________ 2122 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 authorizing municipalities and the department of financial services to seek civil penalties for violations of the duty to main- tain a foreclosed property The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1307 of the real property actions and proceedings 2 law is amended by adding a new subdivision 3-a to read as follows: 3 3-a. (a) In addition to the rights to enforce certain obligations and 4 recover certain costs pursuant to subdivision three of this section, 5 violations of this section by a plaintiff in a mortgage foreclosure 6 action may be brought before a hearing officer or a court of competent 7 jurisdiction by an entity authorized pursuant to paragraph (b) or (c) of 8 this subdivision. If it shall appear to the satisfaction of such hearing 9 officer or court, based on the preponderance of the evidence, that such 10 plaintiff has violated this section, a civil penalty may be issued by 11 such hearing officer or court in the amount of up to five hundred 12 dollars per day for each day such violation persisted after the judgment 13 of foreclosure has been issued. 14 (b) The superintendent of financial services may, as appropriate and 15 in such superintendent's sole discretion, pursue any suspected violation 16 of this section by a plaintiff in a mortgage foreclosure action. Before 17 taking such action, the superintendent of financial services shall give 18 such plaintiff at least seven days' notice of such violation. 19 (c) The municipality in which such residential real property is 20 located shall have the right to enforce the obligations described in 21 this section in any court of competent jurisdiction after at least seven 22 days' notice to the plaintiff in the mortgage foreclosure action for EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05092-01-5 
 S. 2122 2 1 such property, unless such property requires emergency repairs to 2 address a threat to public health, safety or welfare, in which case such 3 municipality may enter and maintain such property to cure such emergen- 4 cy, provided however, notice shall be provided to such plaintiff as soon 5 as practicable. Such municipality shall provide the department of finan- 6 cial services with written notice at least ten days prior to bringing an 7 action pursuant to this subdivision; provided, however, that failure to 8 comply with such notice requirement shall not be a defense against the 9 action pursuant to this subdivision. The authority provided by this 10 subdivision shall be in addition to, and shall not be deemed to diminish 11 or reduce, any rights of the parties described in this section under 12 existing law against the plaintiff for failure to maintain such proper- 13 ty. Any civil penalty imposed pursuant to paragraph (a) of this subdi- 14 vision in an action brought by a municipality pursuant to this paragraph 15 shall be retained by such municipality. 16 (d) The department of financial services shall be authorized and 17 empowered to adopt such rules and regulations as may, in the judgment of 18 the superintendent of financial services, be necessary for the effective 19 implementation, administration, operation and enforcement of this 20 section. 21 § 2. This act shall take effect immediately.