NY State Senate Bill 2011-S1960

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 14, 2011	referred to housing, construction and community development

2011-S1960 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Add §773-a, amd §§778 & 1325, RPAP L
Versions Introduced in 2009-2010 Legislative Session:: S906

2011-S1960 (ACTIVE) - Summary

Provides that receivership shall not be material nor a defense to the appointment of an administrator, pursuant to provisions of the real property actions and proceedings law relating to special proceedings by tenants of dwellings in the city of New York, to deposit rent and make repairs to multiple dwellings, although a receiver in foreclosure may participate in such proceeding and may be appointed as administrator if the court so decides; provides that a receiver need not be named as a party or served with process in such special proceeding; requires receiver to register with the municipal department within seven days of appointment or else any action taken by such receiver may be voided by the court.

2011-S1960 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1960

TITLE OF BILL:
An act
to amend the real property actions and proceedings law, in relation
to proceedings to deposit rents

PURPOSE/SUMMARY OF PROVISIONS:
This bill would amend the real property
actions and proceedings law by adding a new section seven hundred
seventy-three, a new subdivision eight under section seven hundred
seventy-eight, and three new subdivisions, four, five and six, under
section thirteen hundred twenty-five. This bill has been introduced
as a result of the Gomez vs. Smith Williamsburg Better Housing Court
decision filed in Kings County, Trial Term, Part 35A. The purpose of
this bill is to prevent slum-mortgagees from using the issue of
receivership as a tactic to delay the implementation of article 7-A
proceedings. The bill would establish that receivership shall not be
adjourned, dismissed or delayed because the petitioner has not
requested or received prior approval from the supreme court, the
supreme court has not authorized such a lawsuit against a receiver or
the receiver has not been named or served with process in such
proceeding. Provides that the existence of a receiver prior to the
judgement or appointment of an administrator in such proceeding,
shall not affect the court's capacity to appoint or continue the
appointment of such administrator. The court may appoint an existing

receiver as an administrator when it is convinced
that such receiver will take responsibility for correcting all
existing violations and dangerous conditions to the dwelling. Lastly,
the bill puts the receiver at risk if the court order appointing him
in a foreclosure proceeding does not include the information mandated
by the legislature in subdivision 3 of section 1325. Also, mandates
that a receiver must register with the code enforcement agency within
seven days after being appointed receiver, receivership order is void
and receiver is stayed from commencing any action until he is
registered. Eliminates any requirement to request, or receive,
supreme court approval before a tenant or a municipal agent may
commence an action against a receiver.

JUSTIFICATION:
Article 7-A provides a method for tenants and municipal
authorities to use rents, and other funds, to improve slum buildings
where the owners and mortgagees did not correct housing code
violations and/or hazardous conditions. However, some landlords and
mortgagees attempt to use misrepresentations, delaying tactics and
total disregard of provisions, in order to frustrate the legislative
intent of this law.
This bill would amend the law to prohibit slum-mortgagees from arguing
that the receiver in a foreclosure should displace the 7-A
administrator or that the petitioners in the proceeding have not
gotten prior supreme court approval. This bill would also clarify the

section of the RPAPL which applies to the responsibility of a
receiver in a foreclosure and provides an enforcement mechanism for
ensuring that the receiver adheres to these responsibilities.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of October
next succeeding the date on which it shall have become a law.

2011-S1960 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1960

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 14, 2011
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN  ACT  to  amend  the  real  property  actions and proceedings law, in
  relation to proceedings to deposit rents

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property actions and proceedings law is amended by
adding a new section 773-a to read as follows:
  S  773-A.  RECEIVERSHIP  NOT  MATERIAL. 1. RECEIVERSHIP SHALL NOT BE A
DEFENSE TO ANY SPECIAL PROCEEDING PURSUANT TO THIS ARTICLE AND  NO  SUCH
PROCEEDING  SHALL  BE ADJOURNED, DELAYED OR DISMISSED EITHER BECAUSE THE
PETITIONER HAS  NOT  OR  PETITIONERS  HAVE  NOT  REQUESTED  OR  RECEIVED
APPROVAL  OF  SUCH  PROCEEDING BY THE SUPREME COURT OR A LAWSUIT HAS NOT
BEEN AUTHORIZED AGAINST A RECEIVER APPOINTED BY SUCH COURT OR A RECEIVER
HAS NOT BEEN NAMED OR SERVED WITH PROCESS IN SUCH PROCEEDING.
  2. THIS SECTION SHALL NOT PROHIBIT  A  RECEIVER  IN  FORECLOSURE  FROM
PARTICIPATION IN SUCH PROCEEDING, IF SUCH RECEIVER SO DESIRES.
  S  2.  Section 778 of the real property actions and proceedings law is
amended by adding a new subdivision 11 to read as follows:
  11. THE EXISTENCE  OF  A  RECEIVER  FOR  THE  DWELLING  PRIOR  TO  THE
COMMENCEMENT  OF  THE PROCEEDING, OR APPLICATION FOR OR APPOINTMENT OF A
RECEIVER AT ANY TIME PRIOR TO JUDGMENT OR APPOINTMENT OF AN  ADMINISTRA-
TOR PURSUANT TO THIS ARTICLE, SHALL NOT AFFECT THE POWER OF THE COURT TO
APPOINT  OR  CONTINUE  THE  APPOINTMENT OF SUCH AN ADMINISTRATOR, EXCEPT
THAT THE RIGHTS OF THE OWNER, INCLUDING THE RIGHTS TO ANY SURPLUS PURSU-
ANT TO PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, SHALL  PASS  TO
THE  RECEIVER.  IF SUCH RECEIVER HAS BEEN APPOINTED PRIOR TO APPOINTMENT
OF AN ADMINISTRATOR, THE COURT MAY APPOINT SUCH RECEIVER AS  ADMINISTRA-
TOR  UNDER  CIRCUMSTANCES  WHERE IT IS CONVINCED THAT SUCH RECEIVER WILL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07089-01-1

S. 1960                             2

PROPERLY UNDERTAKE RESPONSIBILITY FOR CORRECTING ALL THE VIOLATIONS  AND
DANGEROUS CONDITIONS, AND PROVIDE NECESSARY SERVICES TO THE DWELLING.
  S  3. Section 1325 of the real property actions and proceedings law is
amended by adding three new subdivisions 4, 5 and 6 to read as follows:
  4. ANY ORDER PURSUANT TO THIS  ARTICLE  WHICH  DOES  NOT  INCLUDE  THE
PROVISIONS REQUIRED BY SUBDIVISION THREE OF THIS SECTION, SHALL BE VOID-
ABLE.
  5.  IF  ANY  RECEIVER  DOES NOT REGISTER WITH THE MUNICIPAL DEPARTMENT
WITHIN SEVEN DAYS AFTER THE DATE OF THE ORDER APPOINTING SUCH  RECEIVER,
ALL  ACTIONS TAKEN BY SUCH RECEIVER AFTER SAID SEVENTH DAY MAY BE VOIDED
BY THE COURT; SUCH RECEIVER IS STAYED FROM COMMENCING ANY ACTIONS IN ANY
COURT UNTIL HE OR SHE IS SO REGISTERED.
  6. WHEN ANY RECEIVER IS APPOINTED PURSUANT TO THIS SECTION, NO  TENANT
OR  MUNICIPAL  AGENCY IS REQUIRED TO GET PRIOR APPROVAL FROM THE SUPREME
COURT BEFORE COMMENCING ANY ACTION AGAINST SAID RECEIVER.
  S 4. This act shall take effect on the first of October next  succeed-
ing the date on which it shall have become a law.

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Senate Bill S1960

Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2011-S1960 (ACTIVE) - Details

2011-S1960 (ACTIVE) - Summary

2011-S1960 (ACTIVE) - Sponsor Memo

2011-S1960 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1960

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Sponsored By

Carl Kruger

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

2011-S1960 (ACTIVE) - Details

2011-S1960 (ACTIVE) - Summary

2011-S1960 (ACTIVE) - Sponsor Memo

2011-S1960 (ACTIVE) - Bill Text download pdf

Comments