New York Assembly Bill A08403

New York 2025-2026 Regular Session

• Introduced: 5/13/25
• Refer: 5/13/25

Caption

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.

Impact

One of the significant impacts of A08403 is the proposed deference to municipalities in instances where both the DFS and a municipality have the authority to prosecute a violation regarding residential properties. In cases where a municipality is already taking action, the DFS will not initiate its prosecution unless clarified otherwise. This shift aims to enhance cooperation between state-level authorities and local governments, thus aiming for a more cohesive approach to enforcing residential property laws.

Summary

Bill A08403 aims to amend the real property actions and proceedings law to enhance the prosecution of violations concerning residential real properties by the Department of Financial Services (DFS) and municipalities. The groundbreaking aspect of this bill is its directive for the DFS to establish standards of review to determine under what circumstances it should prosecute such violations. This new level of oversight by the DFS is expected to streamline the process for addressing complaints mainly involving mortgage lenders and similar entities that potentially infringe upon residential property regulations.

Conclusion

Ultimately, A08403 seeks to clarify the roles of the DFS and local municipalities in enforcing residential real property laws, with provisions for penalties and the allocation of civil penalty proceeds. The implications of this bill will be closely monitored by various stakeholders, including local governments, homeowners, and financial entities, as they navigate the evolving landscape of real property regulation under New York state law.

Contention

At the core of A08403 lies the contention surrounding the balance of power between state and local authorities. Supporters of the bill state that it would provide a more organized and consistent method for handling violations while giving municipalities the ability to address local concerns. However, critics argue that it may inhibit local municipalities' ability to take swift action against violators effectively. The potential for overlap between state and local enforcement could lead to confusion regarding authority and responsibilities, raising discussions among legislators about the most efficient framework for protecting residential properties.