Relates to notice to be provided prior to a foreclosure action by a homeowners' association, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3470
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2025
                                ___________
 
 Introduced by M. of A. LAVINE -- read once and referred to the Committee
   on Judiciary
 
 AN  ACT to amend the real property law and the real property actions and
   proceedings law, in relation to the foreclosure of  liens  for  unpaid
   assessments due to a homeowners' association or condominium board

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 339-aa of the real  property  law,  as  amended  by
 chapter 104 of the laws of 1992, is amended to read as follows:
   §  339-aa.  Lien  for  common charges; duration; foreclosure. The lien
 provided for in [the immediately preceding] section THREE HUNDRED  THIR-
 TY-NINE-Z  OF  THIS ARTICLE shall be effective from and after the filing
 in the office of the recording officer in which the declaration is filed
 a verified notice of lien stating the name (if any) and address  of  the
 property,  the  liber and page of record of the declaration, the name of
 the record owner of the unit,  the  unit  designation,  the  amount  and
 purpose  for  which  due,  and  the date when due; and shall continue in
 effect until all sums secured thereby, with the interest thereon,  shall
 have  been  fully  paid  or  until expiration six years from the date of
 filing, whichever occurs sooner. In the event that unpaid common charges
 are due, any member of the board of managers may file a notice  of  lien
 as  described  herein  if  no notice of lien has been filed within sixty
 days after the unpaid charges are due. Upon such payment the unit  owner
 shall be entitled to an instrument duly executed and acknowledged certi-
 fying  to  the  fact  of  payment.  Such  lien may be foreclosed by suit
 authorized by and brought in the name of the board of  managers,  acting
 on behalf of the unit owners, in like manner as a mortgage of real prop-
 erty  PURSUANT  TO  ARTICLE  THIRTEEN  OF  THE REAL PROPERTY ACTIONS AND
 PROCEEDINGS LAW, without the necessity, however, of naming  as  a  party
 defendant  any  person  solely by reason of his owning a common interest
 with respect to the property.  THE BOARD OF MANAGERS SHALL  BE  REQUIRED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07202-01-5
 A. 3470                             2
 
 TO  PROVIDE  NOTICE  TO THE UNIT OWNER AT LEAST NINETY DAYS PRIOR TO THE
 COMMENCEMENT OF A FORECLOSURE PROCEEDING AT THE PROPERTY ADDRESS AND ANY
 OTHER ADDRESS OF RECORD. SUCH NOTICE SHALL BE IN FOURTEEN-POINT TYPE AND
 SHALL  INFORM  THE  OWNER  THAT  THE BOARD INTENDS TO FILE AN ACTION FOR
 FORECLOSURE TO ENFORCE THE LIEN AND SHALL STATE THE ADDRESS OF THE PROP-
 ERTY AND THE SPECIFIC AMOUNT DUE. In any such foreclosure the unit owner
 shall be required to pay a reasonable rental for the unit for any period
 prior to sale pursuant to  judgment  of  foreclosure  and  sale,  if  so
 provided  in the by-laws, and the plaintiff in such foreclosure shall be
 entitled to the appointment of a receiver to collect the same. The board
 of managers, acting on behalf of the  unit  owners,  shall  have  power,
 unless  prohibited  by  the  by-laws,  to bid in the unit at foreclosure
 sale, and to acquire and hold, lease, mortgage and convey the same. Suit
 to recover a money judgment for unpaid common charges shall be maintain-
 able without foreclosing or waiving the  lien  securing  the  same,  and
 foreclosure  shall  be maintainable notwithstanding the pendency of suit
 to recover a money judgment.
   Notwithstanding any other provision of this article,  if  a  municipal
 corporation  acquires  title  to  a  unit as a result of tax enforcement
 proceedings, such municipal corporation shall  not  be  liable  for  and
 shall not be subject to suit for recovery of the common charges applica-
 ble  to  such unit during the period while title to such unit is held by
 the municipal corporation or for the payment of any rental for the  unit
 under  the  provisions of this section, except to the extent of any rent
 arising from such unit received by  such  municipal  corporation  during
 such period.
   Except as herein specifically provided, nothing contained herein shall
 affect  or  impair  or  release  the  unit from the lien for such common
 charges or impair or diminish the rights of the manager or the board  of
 managers  on  behalf  of  the unit owners under this section and section
 three hundred thirty-nine-z.
   § 2. The real property actions  and  proceedings  law  is  amended  by
 adding a new article 20-A to read as follows:
                                ARTICLE 20-A
             ENFORCEMENT OF LIENS BY A HOMEOWNERS' ASSOCIATION
 
 SECTION 2010. ENFORCEMENT OF LIENS BY A HOMEOWNERS' ASSOCIATION.
   § 2010. ENFORCEMENT  OF  LIENS  BY A HOMEOWNERS' ASSOCIATION. AT LEAST
 NINETY DAYS PRIOR TO THE COMMENCEMENT OF A FORECLOSURE ACTION TO ENFORCE
 A LIEN FOR UNPAID COMMON CHARGES, ASSESSMENTS, FEES OR FINES OWED TO  AN
 INCORPORATED HOMEOWNERS' ASSOCIATION, WHICH IS PERMITTED PURSUANT TO THE
 GOVERNING  DOCUMENTS  OF  SUCH  ASSOCIATION,  THE  BOARD OR OTHER ENTITY
 REPRESENTING THE ASSOCIATION SHALL PROVIDE NOTICE TO THE  OWNER  AT  THE
 PROPERTY  ADDRESS AND ANY OTHER ADDRESS OF RECORD, IN AT LEAST FOURTEEN-
 POINT TYPE, THAT THE ASSOCIATION INTENDS TO FILE AN ACTION FOR  FORECLO-
 SURE TO ENFORCE THE LIEN AND SHALL STATE THE ADDRESS OF THE PROPERTY AND
 THE SPECIFIC AMOUNT DUE.
   § 3. This act shall take effect immediately and shall apply to actions
 commenced on and after such date.