Res. No. 524

Resolution calling on the New York State Legislature to pass, and the Governor to sign, A.8591/S.1709, in relation to legal representation in certain mortgage foreclosure actions.

Council Members Riley and Williams

Whereas, The Chief Administrator of the New York Courts has stated that there was a nearly 100 percent increase in foreclosure cases between 2022 and 2023, rising from 7,621 in their 2022 foreclosure report to 15,235 in their 2023 foreclosure report (2023 foreclosure report); and

Whereas, According to the National Bureau of Economic Research, a nonprofit organization that conducts research on economic issues, since the COVID-19 foreclosure moratorium was lifted in January 2022, the number of properties in pre-foreclosure has significantly increased across New York City, with Brooklyn seeing the most foreclosures; and

Whereas, For homeowners facing foreclosure, a lawyer can help them keep their home, but many homeowners struggle without legal representation due to the high cost of attorneys; and

Whereas, New York State law requires residential foreclosure parties to attend settlement conferences, which may help homeowners stay in their homes, but many homeowners attend these conferences unrepresented, increasing the risk of homeowners losing their homes; and

Whereas, In 2023 foreclosure report, 44 percent of New York homeowners in foreclosure settlement conferences lacked legal representation; and

Whereas, Navigating foreclosure without an attorney can be confusing, and homeowners often need help negotiating a repayment plan; and

Whereas, Under New York State law, no such right to have a legal counsel exists when a New York State resident is threatened with the loss of their home in a foreclosure, though the right exists in certain other types of civil proceedings, including certain family court or surrogate court matters; and

Whereas, A.8591, sponsored by Assembly Member Rodneyse Bichotte Hermelyn and pending in the New York State Assembly, and companion bill S.1709, sponsored by State Senator Leroy Comrie and pending in the New York State Senate, would provide  homeowners in foreclosure proceedings who cannot afford legal representation the right to counsel assigned by the court; and

Whereas, The right to counsel in certain mortgage foreclosure proceedings, as established by A.8591/S.1709, could help homeowners negotiate more favorable terms with lenders or even avoid foreclosure altogether; now, therefore, be it

Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, A.8591/S.1709, in relation to legal representation in certain mortgage foreclosure actions.

JLC

LS 16624

05/22/2024