The Business Council opposes this legislation that adopts the so-called “New York State Abandoned Property Neighborhood Relief Act of 2014.”
Regardless of the bill's good intentions, it would impose uncertain and unworkable mandates on financial institutions.
Some provisions of this proposal appear to duplicate or conflict with provisions of Chapter 507 of the Laws of 2009, resulting in compliance uncertainty for lenders.
Among other things, the bill would also require a lender engaged in a foreclosure action to maintain a vacant or abandoned property before it actually had ownership of the property. It is unreasonable to impose this requirement on the lender while the mortgagor is still in lawful possession of the property, and at a time when the lender may have no legal right to access the property in question.
Instead of imposing additional costs and complexity on mortgagees engaged in foreclosure on delinquent properties, the legislature should focus on streamlining the state's already complex and lengthy foreclosure process. Such an approach would be more effective in preventing the physical deterioration of delinquent property and the resultant adverse impact on neighborhoods.
For these reasons, The Business Council opposes approval of S.7350-A (Klein)/A9341-A (Weinstein).