Bill > S02122

This bill amends the Real Property Actions and Proceedings Law to authorize municipalities and the Department of Financial Services (DFS) to seek civil penalties against plaintiffs in mortgage foreclosure actions who fail to properly maintain foreclosed properties. Specifically, the bill allows a hearing officer or court to impose a penalty of up to $650 per day for each day a property is not maintained after a foreclosure judgment is issued, with penalties continuing until the property is transferred to a third party. The superintendent of financial services can investigate potential violations after giving the plaintiff seven days' notice, and municipalities can enforce maintenance obligations through court action, with at least seven days' notice (or immediately in emergency cases affecting public health and safety). Municipalities that bring successful actions will retain the civil penalties collected. The DFS is empowered to develop rules and regulations for implementing these new enforcement provisions. The purpose of the bill appears to be addressing property neglect during the foreclosure process, which can negatively impact neighborhoods and local communities by allowing properties to fall into disrepair.

Housing and Urban Affairs, Justice

https://www.nysenate.gov/legislation/bills/2025/S2122