Bill > A05966

This bill requires mortgagees (lenders) who are initiating foreclosure actions on multiple dwellings with ten or more units to provide detailed written notification to the Department of Housing Preservation and Development (HPD) within fifteen days of serving legal documents. The notification must include comprehensive information about the property, such as the mortgagee's contact details, property address, property value, mortgage balance, outstanding municipal arrears, code violations, and other relevant financial and physical characteristics. HPD will then assess whether the property is "at-risk," which means it is in physical and/or financial distress. If a property is deemed at-risk, HPD gains the authority to request the appointment or replacement of a receiver to manage the property and can collect a two percent fee on the property's sale to fund rehabilitation efforts. The bill aims to proactively identify and address potentially neglected or distressed multi-unit residential properties during the foreclosure process, with the ultimate goal of preserving housing quality and preventing neighborhood deterioration.

Justice

https://www.nysenate.gov/legislation/bills/2025/A5966