Relates to prosecution by the department of financial services and municipalities of certain violations regarding residential real property

Latest action Apr 13, 2026

Relates to prosecution by the department of financial services (DFS) and municipalities of certain violations regarding residential real property by mortgage lenders and similar entities; directs DFS to promulgate standards of review of whether to prosecute such violations; requires deference to municipalities where both the municipality and DFS are authorized to prosecute such a violation; directs payments of civil penalties issued pursuant to such violations to be paid to DFS if DFS is the prosecuting entity.

Not chosen yet

Where it stands

Passed one of the two chambers; it still needs the other.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A8403, the matching bill in the Assembly.

Amends the Real Property Actions and Proceedings Law.

Committee

Housing, Construction And Community Development · New York State Senate

Also referred to Judiciary · New York State Assembly, Judiciary · New York State Senate.

Purpose, from the sponsor's memo

Relates to prosecution by the Department of Financial Services and muni- cipalities of certain violations regarding residential real property by requiring the department to set standards of review when determining to prosecute such violations and coordinate with municipalities when prose- cuting such violations and allowing for the proceeds that the department receives upon Successful prosecution of such violations to be redirected from the general fund to the department to prosecute future violations.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateApr 13, 2026Result: passed
(35) (17) (0) (11)
Vote: Committee vote · Housing, Construction And Community Development
Senate Housing, Construction And Community DevelopmentMar 18, 2026Result: passed
(8) (3) (0) (0)
Vote: Floor vote
NY SenateJun 11, 2025Result: passed
(38) (21) (0) (4)
Vote: Committee vote · Housing, Construction And Community Development
Senate Housing, Construction And Community DevelopmentMay 12, 2025Result: passed
(10) (1) (0) (0)

The sponsor's argument

Why Patricia Fahy says this is needed

Zombie properties are mortgage-delinquent properties that have been abandoned by the owner but languish for years in disrepair and neglect until the mortgagee completes the foreclosure process. Current law authorizes the Department of Financial Services ("DFS" or the "Depart- ment") and municipalities to prosecute violations of certain residential real property violations, referred to as "zombie property cases." Howev- er, due to financial constraints, ambiguity in the law, and other reasons, DFS has not exercised its authority. In instances where the Department prosecutes zombie properties and where the court finds in favor of the Department, proceeds of any civil penalty issued pursuant to such decision are awarded to the state's general fund, while the Department of Financial Services has no budget to under-take these pros- ecutions. This has created an unfunded mandate for the Department, which has not prosecuted zombie properties in recent years and left enforcement of zombie property laws up to municipalities, many of which do not have the resources to pursue these cases. This bill requires DFS to set a standard of review when determining whether to prosecute such violations and to coordinate with municipalities when prosecuting such violations. It allows for the proceeds that the Department receives upon successful prosecution of such violations to be redirected from the general fund to the Department for the purposes of prosecuting future violations. When the Department successfully prosecutes a zombie proper- ty, this bill will ensure that the resultant funds are returned to the department for further zombie property prosecution instead of the gener- al fund where the funding is currently allocated. Depending on agency feedback, a portion of these funds might also be allocated to munici- palities in need of said funds.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Apr 13, 2026
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Apr 13, 2026
Passed a chamber
PASSED SENATE
NY Senate
Apr 13, 2026
Referred to committee
REFERRED TO JUDICIARY
NY Assembly
Mar 23, 2026
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
Mar 19, 2026
2ND Report CAL.
2ND REPORT CAL.
NY Senate

Show full history (12 earlier events)

Mar 18, 2026
1ST Report CAL.574
1ST REPORT CAL.574
NY Senate
Jan 7, 2026
Died in Assembly
DIED IN ASSEMBLY
NY Assembly
Jan 7, 2026
Referred to committee
REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
NY Senate
Jan 7, 2026
Referred to committee
REFERRED TO JUDICIARY
NY Assembly
Jun 11, 2025
Sent to the executive
DELIVERED TO ASSEMBLY
NY Senate
Jun 11, 2025
Passed a chamber
PASSED SENATE
NY Senate
Jun 11, 2025
Referred to committee
REFERRED TO JUDICIARY
NY Assembly
May 14, 2025
Advanced to Third Reading
ADVANCED TO THIRD READING
NY Senate
May 13, 2025
2ND Report CAL.
2ND REPORT CAL.
NY Senate
May 13, 2025
Referred to committee
REFERRED TO JUDICIARY
NY Assembly
May 12, 2025
1ST Report CAL.977
1ST REPORT CAL.977
NY Senate
Jan 15, 2025
Referred to committee
REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Nov 3, 2026. About our data

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Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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