S 2627: Establishes the homeowner protection program; provides that the department of law shall establish the homeowner protection program to ensure the availability of free housing counseling and legal services to homeowners for the purposes of mitigating threats to homeownership; provides that the department of law shall provide grants to eligible not-for-profit housing counseling organizations and legal services organizations to provide services under the program.

  
  STATE OF NEW YORK ________________________________________________________________________ 2627 2025-2026 Regular Sessions  IN SENATE January 22, 2025 ___________ Introduced by Sens. KAVANAGH, BRISPORT, COONEY, GOUNARDES, HINCHEY, JACKSON, MYRIE, S. RYAN -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law, in relation to establishing the homeowner protection program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property law is amended by adding a new section 2 265-c to read as follows: 3 § 265-c. Homeowner protection program. 1. Legislative intent. The 4 legislature declares that the establishment of the homeowner protection 5 program (HOPP) is necessary to ensure continuation of New York's invest- 6 ment in its statewide network of non-profit civil legal services provid- 7 ers and housing counseling agencies offering a range of homeownership 8 retention and preservation services to homeowners in every county in the 9 state. The program is also necessary to ensure that the statutory 10 mandates of sections thirteen hundred three and thirteen hundred four of 11 the real property actions and proceedings law and rule thirty-four 12 hundred eight of the civil practice law and rules are fulfilled, so that 13 free housing counseling and legal services are available to homeowners 14 as provided for by sections thirteen hundred three and thirteen hundred 15 four of the real property actions and proceedings law in every county, 16 and so that legal services are available to assist homeowners answering 17 complaints and participating in mandatory settlement conferences pursu- 18 ant to rule thirty-four hundred eight of the civil practice law and 19 rules. 20 2. Counseling and legal representation of individuals who are facing 21 loss of their home or threats to homeownership. (a) Within one year of 22 the effective date of this section, the department of law shall estab- 23 lish the homeowner protection program to ensure the availability of free 24 housing counseling and legal services to homeowners for the purposes of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03310-01-5 
 S. 2627 2 1 mitigating threats to homeownership including, but not limited to, 2 homeownership retention, home preservation, estate planning, as a tool 3 for preventing theft of real property and other scams targeted to home- 4 owners, preventing avoidable foreclosures and displacement, preserving 5 home equity, preserving homeownership, especially in communities of 6 color, and for any other purposes related to preserving homeownership. 7 Such program shall be funded by annual appropriation by the legislature. 8 (b) The department of law shall provide grants to eligible not-for- 9 profit housing counseling organizations and legal services organizations 10 to provide services under the program. Such services shall include, but 11 not be limited to, assistance with loss mitigation and loan and workout 12 applications and negotiations; assistance in applying for assistance 13 programs for homeowners; assistance with resolving property tax, utility 14 and building code violation debts and liens; representation in mortgage 15 and tax and utility lien foreclosure litigation, limited scope represen- 16 tation at settlement conferences pursuant to rule thirty-four hundred 17 eight of the civil practice law and rules; assistance to unrepresented 18 litigants with answers and motions in judicial foreclosure proceedings 19 and brief advice; assistance to homeowners victimized by deed fraud, 20 distressed property consultant, partition and other scammers; and 21 redress of predatory and discriminatory lending, abusive mortgage 22 servicing, and property flipping, including affirmative litigation and 23 administrative complaints with federal, state and local fair housing 24 agencies; and for whatever other purpose deemed necessary by the depart- 25 ment of law to preserve homeownership. 26 3. Program administration. (a) The department of law shall establish 27 criteria for selection of grant applications, review applications and 28 make awards, and exercise and perform such other functions as are 29 related to the purposes of this section. 30 (b) The department of law shall make one-year grants, within the 31 amounts appropriated for that purpose, to not-for-profit housing coun- 32 seling organizations serving homeowners at risk of losing their homes, 33 and legal services organizations, to provide counseling services and 34 legal representation of persons who reside in the state of New York who 35 are facing threats to homeownership. 36 (c) The department of law shall make one-year grants, within the 37 amounts appropriated for that purpose, to ensure that housing counseling 38 and legal services are available free of charge to homeowners in every 39 county of the state and to ensure that the statutory mandates of 40 sections thirteen hundred three and thirteen hundred four of the real 41 property actions and proceedings law and rule thirty-four hundred eight 42 of the civil practice law and rules are fulfilled. 43 (d) The department of law shall make one-year grants, within the 44 amounts appropriated for that purpose, to ensure adequate training, 45 technical assistance and support is provided to the not-for-profit hous- 46 ing counseling and legal services organizations providing services under 47 this section, and to ensure the management of grants and supportive 48 services including, but not limited to, toll-free hotlines, dedicated 49 outreach, technical expertise and other assistance is made available to 50 the organizations providing services. 51 4. Reporting. Each not-for-profit housing counseling organization and 52 legal services organization receiving a grant under this section shall 53 at a minimum report to the attorney general no later than sixty days 54 after the end of each one-year grant. Such report shall include an 55 accounting of the funds received by the grant and the services provided. 56 § 2. This act shall take effect immediately.