S2546

The New York State Senate passed legislation Monday to address abandoned multifamily dwellings by preventing lenders from using foreclosure initiation to avoid municipal repair requirements. Senate Print 2546, sponsored by Sen. Myrie, passed 36-22 on a roll call vote. The bill amends the Real Property Actions and Proceedings Law to allow municipalities to determine abandonment based on threats to life, safety and health, and would require lienholders to either make repairs or allow cities to take possession within 90 days. The legislation extends protections previously applied to one-to-four family homes under the 2016 Zombie Law to multifamily dwellings, addressing what sponsors characterized as a significant problem in New York City. However, the bill drew substantial Republican opposition. Sen. Martins, voting against the measure, argued the legislation imposes repair obligations on lenders even when borrowers are current on mortgage payments and no contractual default exists. He contended the bill creates extracontractual obligations and suggested municipalities should be directly empowered to intervene and place liens on properties rather than forcing lenders to foreclose without contractual basis. Martins indicated willingness to work with the sponsor on alternative approaches.

The Senate passed legislation sponsored by Sen. Myrie to amend the Real Property Actions and Proceedings Law on a 35-21 vote. The bill, Calendar Number 347 (S2546), would take effect 120 days after becoming law. The measure drew opposition from 21 senators, primarily Republicans including Sens. Ashby, Borrello, Canzoneri-Fitzpatrick, Chan, Gallivan, Griffo, Helming, Lanza, Martins, Mattera, Murray, Oberacker, O'Mara, Palumbo, Rhoads, Rolison, Stec, Tedisco, Walczyk, Weber and Weik. No floor debate was recorded on the bill prior to the vote.