S T A T E O F N E W Y O R K
________________________________________________________________________
7834--B
R. R. 388
2013-2014 Regular Sessions
I N A S S E M B L Y
June 5, 2013
___________
Introduced by M. of A. WRIGHT -- read once and referred to the Committee
on Housing -- reported and referred to the Committee on Codes --
reported and referred to the Committee on Rules -- Rules Committee
discharged, bill amended, ordered reprinted as amended and recommitted
to the Committee on Rules -- amended on the special order of third
reading, ordered reprinted as amended, retaining its place on the
special order of third reading
AN ACT to amend the real property actions and proceedings law, in
relation to grounds for bringing a special proceeding, and payment to
and liability of administrators appointed pursuant to a special
proceeding
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 770 of the real property actions
and proceedings law, as amended by chapter 877 of the laws of 1982, is
amended to read as follows:
1. One-third or more of the tenants occupying a dwelling located in
the city of New York or the commissioner of the department of the city
of New York charged with enforcement of the housing maintenance code of
such city, or in the counties of Nassau, Suffolk, Rockland and Westches-
ter may maintain a special proceeding as provided in this article, upon
the ground that there exists in such dwellings or in any part thereof a
lack of heat or of running water or of light or of electricity or of
adequate sewage disposal facilities, or any other condition dangerous to
life, health or safety, which has existed for five days, or an infesta-
tion by rodents, or any combination of such conditions; or course of
conduct by the owner or [his] THE OWNER'S agents of harassment, illegal
eviction, continued deprivation of services or other acts dangerous to
life, health or safety, OR THE ISSUANCE OF AN ORDER TO THE OWNER OF SUCH
DWELLING BY THE COMMISSIONER OF SUCH DEPARTMENT OF THE CITY OF NEW YORK
PURSUANT TO THE ALTERNATIVE ENFORCEMENT PROGRAM UNDER SECTION 27-2153 OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10829-06-3
A. 7834--B 2
THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, PROVIDED THAT SUCH
DWELLING HAS NOT BEEN DISCHARGED FROM THE PROGRAM PURSUANT TO SUCH
SECTION AND THERE HAS NOT BEEN A DETERMINATION THAT THE OWNER HAS
SUBSTANTIALLY COMPLIED WITH SUCH ORDER.
S 2. Subdivision 1 of section 778 of the real property actions and
proceedings law, as amended by chapter 95 of the laws of 1989, is
amended to read as follows:
1. The court is authorized and empowered, in implementation of a judg-
ment rendered pursuant to section seven hundred seventy-six or seven
hundred seventy-seven of this article, to appoint a person other than
the owner, a mortgagee or lienor, to receive and administer the rent
moneys or security deposited with [him] SUCH OWNER, MORTGAGEE OR LIENOR,
subject to the court's direction. The court may appoint the commissioner
of the department of the city of New York charged with enforcement of
the housing maintenance code of such city or [his] THE COMMISSIONER'S
designee as such administrator, provided that [he] THE COMMISSIONER OR
THE COMMISSIONER'S DESIGNEE shall consent, in writing, to such appoint-
ment. Any administrator is authorized and empowered in accordance with
the direction of the court, to order the necessary materials, labor and
services to remove or remedy the conditions specified in the judgment,
and to make disbursements in payment thereof; and to demand, collect and
receive the rents from the tenants; and to institute all necessary legal
proceedings including, but not limited to, summary proceedings for the
removal of any tenant or tenants; and to rent or lease for terms not
exceeding three years any part of said premises, however, the court may
direct the administrator to rent or lease commercial parts of said prem-
ises for terms that the court may approve. In addition, such administra-
tor is authorized and empowered in accordance with the direction of the
court to accept and repay such moneys as may be received from the
department charged with enforcement of the housing maintenance code of
the city of New York for the purpose of replacing or substantially reha-
bilitating systems or making other repairs or capital improvements
authorized by the court. All moneys expended by the department pursuant
to the foregoing shall constitute a debt recoverable from the owner and
a lien upon the building and lot, and upon the rents and other income
thereof. Such lien shall be enforced in accordance with the provisions
of article eight of subchapter five of the housing maintenance code of
the city of New York. Such administrator, shall, upon completion of the
work prescribed in such judgment, file with the court a full accounting
of all receipts and expenditures for such work. Such administrator shall
dispose of the rents and other monies deposited with [him] SUCH ADMINIS-
TRATOR according to the following order of priority:
(a) Payment in full for all of the work specified in the judgment.
Until all of the work specified in the judgment has been completed and
payment for such work has been made, no other disbursements shall be
permitted, except for fuel bills, fire and liability insurance, and
bills for ordinary repairs and maintenance.
(b) Payment of a reasonable amount for the services of such adminis-
trator, INCLUDING REIMBURSEMENT OF ANY LEGAL FEES INCURRED BY SUCH
ADMINISTRATOR IN CONNECTION WITH MANAGEMENT OF THE BUILDING.
(c) Payment of outstanding real property tax liens claimed by the city
of New York.
(d) Payment of outstanding emergency repair liens filed and recorded
by the city of New York and outstanding liens filed and recorded by the
city pursuant to this section.
A. 7834--B 3
(e) Payment to the owner of any surplus remaining after payments of
paragraphs (a) through (d) of this subdivision have been made.
S 3. Subdivision 6 of section 778 of the real property actions and
proceedings law, as added by chapter 877 of the laws of 1982, is amended
to read as follows:
6. Such administrator shall be liable only in his OR HER official
capacity for injury to persons and property by reason of conditions of
the premises in a case where an owner would have been liable; he OR SHE
shall not have any liability in his OR HER personal capacity. APPOINT-
MENT OF AN ADMINISTRATOR PURSUANT TO SUBDIVISION ONE OF THIS SECTION
SHALL NOT RELIEVE AN OWNER OF LIABILITY FOR INJURY TO PERSONS AND PROP-
ERTY IN SUCH CASE.
S 4. Section 778 of the real property actions and proceedings law is
amended by adding a new subdivision 11 to read as follows:
11. THE COURT MAY ONLY DISCHARGE AN ADMINISTRATOR IF THE OWNER HAS
PAID IN FULL OR ENTERED INTO A PAYMENT AGREEMENT TO PAY IN FULL ALL
OUTSTANDING REAL PROPERTY TAX LIENS CLAIMED BY THE CITY OF NEW YORK, ALL
OUTSTANDING EMERGENCY REPAIR LIENS FILED AND RECORDED BY THE CITY OF NEW
YORK, ALL OUTSTANDING CHARGES AND LIENS ASSESSED IN CONNECTION TO THE
ALTERNATIVE ENFORCEMENT PROGRAM AUTHORIZED BY SECTION 27-2153 OF THE
ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, AND OUTSTANDING LIENS FILED
AND RECORDED BY THE CITY PURSUANT TO THIS SECTION. THE PROVISIONS OF
THIS SUBDIVISION SHALL NOT APPLY TO BUILDINGS TRANSFERRED PURSUANT TO
SUBDIVISION TEN OF THIS SECTION.
S 5. This act shall take effect immediately.