Bill > A3306

Introduced Session

This bill would revise the existing expedited process for mortgage lenders to foreclose vacant and abandoned residential properties, and would enhance the remedies available to common interest communities with respect to the foreclosure of vacant and abandoned units. With respect to the expedited vacant and abandoned residential property foreclosure process, the bill provides that such process only remains available to a residential mortgage lender if the foreclosure action is uncontested. The bill also requires any defense or objection to an application to proceed in this expedited manner to be accompanied by an affidavit stating that the defense or objection is not made solely for the purpose of delaying the expedited foreclosure action. Any defense or objection that is presented without the affidavit would not be considered by the court, except for good cause shown. With respect to the remedies available to common interest communities, the bill provides that, when a lender is entitled to proceed through the expedited foreclosure process, but has not done so, the board of the community may file with the Superior Court a motion to compel the lender to pay association fees. The bill requires the motion to be accompanied by an affidavit from a person having personal knowledge of the contents and to contain the facts necessary to establish that the action is uncontested. If the motion complies with these requirements, the Superior Court may either enter an order compelling the lender to pay to the planned real estate development the association fees coming due on or after the thirty-first day following entry of the order to pay, or, alternatively, approve an application for the appointment of a fiscal agent. The bill also allows the board of any common interest community to apply to the Superior Court for the appointment of a fiscal agent over an abandoned or unoccupied unit. The fiscal agent would be responsible for maintaining the unit and paying, through a licensee or otherwise, association fees and assessments for benefits such as utilities, common element expenses, amortization of common elements, administrative costs, and maintenance of the physical structure in order to protect, preserve, and maintain the unit for the benefit of the community, the unit owners in the community, and any others with an interest in the unit, including, without limitation, mortgage holders. However, a licensee would not obtain anti-eviction protections as a consequence of the license agreement. The fiscal agent may terminate the license agreement for any reason or no reason at all. The fiscal agent may make an accommodation, allowing the licensee up to 72 hours to vacate. However, such accommodation would not create a tenancy.

AI Summary

Committee Categories

Alaa Abdelaziz (D)*, 

Introduced, Referred to Assembly Housing Committee (on 01/09/2024)

Official Document