Proposed NY Bill Requires Maintenance of Tenant-Occupied Properties
Legislation Update
January 13, 2021
Source: The New York State Senate (S1579 full bill text)
Sponsor Memo
BILL NUMBER: S1579
SPONSOR: PARKER
TITLE OF BILL:
An act to amend the real property actions and proceedings law, in relation to requiring a plaintiff in a mortgage foreclosure action to maintain the subject property in good faith
PURPOSE:
To require plaintiffs in mortgage foreclosure actions to Act in good faith at the commencement of a foreclosure action and throughout the foreclosure process
SUMMARY OF PROVISIONS:
Section 1307 of the real property, actions and proceedings law is amended to require plaintiffs from the commencement of foreclosure proceedings to obtain a mortgage foreclosure in ‘good faith’ and defines ‘good faith’ as honesty in fact and the observance of reason able standards of fair dealing.
JUSTIFICATION:
Struggling financial situation a financial crises causes citizens to fall behind on their mortgages and in many instances leave or abandon their homes. In some instances the foreclosing institution will commence the process but not follow through or delay taking control of the property which in some instances can cause the property to become unmaintained and blighted in the surrounding neighborhoods. This law would obligate mortgage foreclosure plaintiffs to act in good faith when it commences a foreclosure and throughout the foreclosure process. Financial institutions cannot delay in taking action in controlling and providing upkeep on the vacant dwelling itself.
