NY A05966

Mortgagees foreclosing on multiple dwellings with 10 or more units must provide written notice to the NYC Department of Housing Preservation and Development within 15 days of commencing the action

Required notice must include detailed information such as mortgagee and defendant contact details, property address, court information, appraised value, principal balance owed, interest rate, other property debts, government investment status, municipal arrears, certificate of occupancy status, and code violations

The department will determine whether foreclosed properties are "at-risk" (in physical and/or financial distress) based on the financial and condition information provided

For at-risk properties, the department may move to appoint or replace a receiver from an approved list, with receivers and managing agents becoming parties to foreclosure proceedings

The department may collect a 2% fee on the sale of foreclosed properties, with proceeds going to the receiver for property rehabilitation as a priority lien