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Bill

A 11044

Requires a mortgagor to provide notice of imminent foreclosure

2025 Regular Session Introduced by Monique Chandler-Waterman

Mortgagors must inform tenants of imminent foreclosure before lease renewal or signing, with a $500 credit to the tenant if disclosure is missed.

REFERRED TO JUDICIARY
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Bill Summary · A 11044

Summary of New York Bill A. 11044 (2025-2026)

Purpose and Intent

  • Goal: Require mortgagors (owners with a mortgage) to inform current or prospective tenants about an imminent foreclosure.
  • The aim is to enhance tenant awareness of foreclosure risk before they renew or sign a lease, potentially enabling tenants to make informed housing decisions or seek remedies.

Key Provisions

  1. Definition

    • Introduces a new Real Property Law section, § 235-k, defining “imminent foreclosure” as a mortgagor receiving foreclosure notice delivered with a summons and complaint, as required by the Real Property Actions and Proceedings Law (RPAPL § 1303(2)).

  2. Notification Requirement

    • Before a tenant or prospective tenant renews or signs a lease, the mortgagor must disclose to the tenant that foreclosure is imminent.

  3. Delivery of Notice

    • The mortgagor must send a copy of the original summons and complaint to the tenant or prospective tenant by certified mail.
    • This notice must be sent at least two weeks prior to the renewal or signing of the lease.

  4. Penalties for Non-Disclosure

    • If the mortgagor fails to disclose, they must pay a credit of $500 to the tenant or prospective tenant.
    • The credit is against the agreed-upon rental price of the lease.
    • This remedy is in addition to any other equitable or statutory remedies available.

  5. Effective Date

    • The act would take effect immediately upon enactment.

Who Is Affected

  • Mortgagors/Property Owners who have issued or will issue a foreclosure notice connected to a property they rent.
  • Current Tenants and Prospective Tenants seeking to renew or sign leases in properties facing imminent foreclosure.
  • The provision applies prior to lease renewal or signing, ensuring tenants are informed ahead of new lease terms.

Procedural and Timeline Considerations

  • Implementation hinges on mortgage foreclosure notices being delivered with a summons and complaint as required by RPAPL § 1303(2).
  • Once a mortgagor becomes aware of an imminent foreclosure, they must provide the two-week certified mail notice before lease renewal or signing.
  • If disclosure is omitted, a monetary credit of $500 is triggered automatically against the lease price, in addition to any other remedies.

Practical Implications

  • Potentially improves tenant transparency and bargaining power in foreclosure-affected properties.
  • Creates a monetary incentive for mortgagors to disclose foreclosure risk to tenants prior to lease transactions.
  • Could impact landlord-tenant dynamics in foreclosing properties and may influence tenant decision-making (e.g., delaying renewal, seeking relocation, or negotiating terms).

Note

  • The bill was introduced in the Assembly by M. of A. Chandler-Waterman and referred to the Judiciary Committee on April 24, 2026. It includes a co-sponsor, Monique Chandler-Waterman.

Compiled from official sources — confirm details with the bill’s official record.

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