New York 2025-2026 Regular Session

New York Assembly Bill A08983

Introduced
8/13/25  
Refer
8/13/25  

Caption

Directs the department of financial services to periodically inspect residential real properties for which a lender has a duty to maintain; authorizes the department of financial services or the municipality to impose a $500 a day civil penalty for the failure of a lender to maintain an abandoned property that it has a duty to maintain; requires such lenders to register with the statewide vacant and abandoned property electronic registry.

Impact

Upon enactment, A08983 would authorize municipalities and the Department of Financial Services to impose a civil penalty of $500 per day on lenders that fail to maintain properties they are responsible for. This financial deterrent is designed to encourage lenders to take their obligations seriously, ultimately benefiting local communities by ensuring that such properties do not contribute to urban decay and safety concerns. Furthermore, it establishes a requirement for lenders to register with a statewide electronic registry for vacant and abandoned properties, promoting accountability and transparency.

Summary

Bill A08983 proposes to address the ongoing issue of vacant and abandoned residential properties by mandating that mortgage lenders take an active role in maintaining these properties. It directs the Department of Financial Services to conduct periodic inspections of residential real properties for which a lender is responsible. The bill aims to enhance property upkeep, thereby improving community standards and reducing negative impacts associated with abandoned properties.

Contention

The bill may face contention regarding the balance between lender responsibilities and property owners' rights. Some stakeholders argue that while maintaining properties is crucial, the imposition of strict fines could lead to negative financial implications for lenders, especially smaller institutions. Additionally, there may be concerns about the feasibility and efficiency of the proposed inspections, raising questions about the logistical implications for both the Department of Financial Services and local municipalities in executing these mandates.

Companion Bills

NY S01426

Same As Directs the department of financial services to periodically inspect residential real properties for which a lender has a duty to maintain; authorizes the department of financial services or the municipality to impose a $500 a day civil penalty for the failure of a lender to maintain an abandoned property that it has a duty to maintain; requires such lenders to register with the statewide vacant and abandoned property electronic registry.

Previously Filed As

NY S01426

Directs the department of financial services to periodically inspect residential real properties for which a lender has a duty to maintain; authorizes the department of financial services or the municipality to impose a $500 a day civil penalty for the failure of a lender to maintain an abandoned property that it has a duty to maintain; requires such lenders to register with the statewide vacant and abandoned property electronic registry.

NY A08083

Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $500 per day for each day such violation persists after the judgement of foreclosure has been issued.

NY A4211

Requires creditors to maintain interior of vacant and abandoned residential property under foreclosure.

NY S02122

Authorizes municipalities and the department of financial services to seek civil penalties for violations of the duty to maintain a foreclosed property in an amount of up to $650 per day for each day such violation persists after the judgement of foreclosure has been issued.

NY S01784

Relates to the inspection of property that has been vacated for abandoned animals; requires property owners and lessors to inspect such property within three days and to immediately notify the appropriate authorities when such person finds an animal which appears to be abandoned.

NY HB2716

Vacant; abandoned property; inspection; maintenance

NY A713

Requires mortgage lenders to maintain vacant, age-restricted dwelling units during foreclosure.

NY S65

Requires mortgage lenders to maintain vacant, age-restricted dwelling units during foreclosure.

NY A753

Concerns expedited process for foreclosing vacant and abandoned residential properties in uncontested actions.

NY S3046

Concerns expedited process for foreclosing vacant and abandoned residential properties in uncontested actions.

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