LBD01841-01-1
S. 6721 2
796-M. DEFENSE OF WARRANTY OF HABITABILITY INAPPLICABLE.
§ 796. DEFINITIONS. AS USED IN THIS ARTICLE:
1. "OWNER" MEANS THE OWNER OR OWNERS OF THE DWELLING, MORTGAGEE OR
VENDEE IN POSSESSION, ASSIGNEE OF RENTS, RECEIVER, EXECUTOR, TRUSTEE,
LESSEE, AGENT, OR ANY OTHER PERSON OR ENTITY DIRECTLY OR INDIRECTLY IN
CONTROL OF A DWELLING, BUT SHALL NOT INCLUDE A RECEIVER APPOINTED PURSU-
ANT TO SECTION THREE HUNDRED NINE OF THE MULTIPLE DWELLING LAW.
2. "DWELLING" OR "PREMISES" MEANS ANY BUILDING OR STRUCTURE OR PORTION
THEREOF WHICH IS OCCUPIED IN WHOLE OR IN PART AS THE HOME, RESIDENCE OR
SLEEPING PLACE OF ONE OR MORE HUMAN BEINGS AND IS EITHER RENTED, LEASED,
LET OR HIRED OUT, TO BE OCCUPIED AS SUCH, INCLUDING, BUT NOT LIMITED TO,
AN APARTMENT BUILDING, A CONDOMINIUM, A TOWNHOUSE, A SINGLE-FAMILY HOUSE
OR A MULTIPLE-FAMILY RESIDENCE BUILDING. "DWELLING" OR "PREMISES" SHALL
ALSO INCLUDE PREMISES ZONED FOR MIXED RESIDENTIAL AND COMMERCIAL USE,
PROVIDED THAT A PORTION OF SUCH PREMISES ARE, IN FACT, OCCUPIED BY ONE
OR MORE TENANTS FOR RESIDENTIAL PURPOSES.
3. "COMMISSIONER" MEANS THE COMMISSIONER, CHIEF SUPERVISOR OR CHIEF
OFFICER OF A DEPARTMENT.
4. "DEPARTMENT" MEANS A DEPARTMENT, AGENCY OR OFFICE.
5. "MUNICIPALITY" MEANS A COUNTY, CITY, TOWN OR VILLAGE.
6. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI-
ATION, TRUST OR OTHER GROUP OR LEGAL ENTITY, HOWEVER ORGANIZED.
§ 796-A. JURISDICTION; COURT; VENUE. 1. A SPECIAL PROCEEDING FOR A
JUDGMENT DIRECTING THE DEPOSIT OF RENTS INTO COURT AND THE USE OF SUCH
MONIES FOR THE PURPOSE OF REMEDYING CONDITIONS AT A DWELLING DANGEROUS
TO LIFE, HEALTH OR SAFETY MAY BE MAINTAINED BY TENANT OR TENANTS OF THE
DWELLING IN THE COUNTY COURT, DISTRICT COURT OR CITY COURT HAVING JURIS-
DICTION IN THE MUNICIPALITY IN WHICH THE DWELLING IS LOCATED.
2. A SPECIAL PROCEEDING AS DESCRIBED IN SUBDIVISION ONE OF THIS
SECTION MAY ALSO BE COMMENCED BY THE COMMISSIONER OF THE DEPARTMENT
CHARGED WITH ENFORCEMENT OF THE HOUSING MAINTENANCE CODE IN THE MUNICI-
PALITY WHERE THE DWELLING IS LOCATED.
(A) IF THE PROCEEDING IS INSTITUTED BY SUCH COMMISSIONER, ONE-THIRD OR
MORE OF THE TENANTS OF THE DWELLING MAY, AT ANY TIME THEREAFTER DURING
THE PENDENCY OF THE PROCEEDING OR AFTER FINAL JUDGMENT PURSUANT TO
SECTION SEVEN HUNDRED NINETY-SIX-H OR SEVEN HUNDRED NINETY-SIX-I OF THIS
ARTICLE, PETITION FOR SUBSTITUTION OF THEMSELVES IN PLACE AND INSTEAD OF
SUCH COMMISSIONER. SUCH SUBSTITUTION SHALL BE ORDERED BY THE COURT
UNLESS GOOD REASON TO THE CONTRARY SHALL BE SHOWN.
(B) A SPECIAL PROCEEDING PURSUANT TO THE PROVISIONS OF THIS ARTICLE
MAY ONLY BE COMMENCED WITH RESPECT TO THE SAME PREMISES BY ONE MUNICI-
PALITY AT A TIME.
3. THE PLACE OF TRIAL OF THE SPECIAL PROCEEDING SHALL BE WITHIN THE
COUNTY IN WHICH THE DWELLING OR A PORTION THEREOF FROM WHICH THE RENTS
ISSUE IS SITUATED.
4. THE PROVISIONS OF THIS ARTICLE SHALL NOT APPLY TO DWELLINGS LOCATED
IN THE CITY OF NEW YORK OR IN THE COUNTIES OF NASSAU, SUFFOLK, ROCKLAND
AND WESTCHESTER OR IN ANY CITIES, TOWNS OR VILLAGES OF SUCH COUNTIES.
§ 796-B. GROUNDS FOR THE PROCEEDING. ONE-THIRD OR MORE OF THE TENANTS
OCCUPYING A MULTIPLE RESIDENCE DWELLING OR A TENANT OCCUPYING A SINGLE
RESIDENCE DWELLING OR THE COMMISSIONER OF THE DEPARTMENT CHARGED WITH
ENFORCEMENT OF THE HOUSING MAINTENANCE CODE IN THE MUNICIPALITY WHERE
THE DWELLING IS LOCATED MAY MAINTAIN A SPECIAL PROCEEDING AS PROVIDED IN
THIS ARTICLE, UPON THE GROUNDS THAT THERE EXISTS IN SUCH DWELLING, OR IN
ANY PART THEREOF:
S. 6721 3
1. A LACK OF HEAT, RUNNING WATER, LIGHT, ELECTRICITY, ADEQUATE SEWAGE
DISPOSAL FACILITIES, OR ANY OTHER CONDITION DANGEROUS TO LIFE, HEALTH OR
SAFETY, WHICH HAS EXISTED FOR FIVE DAYS, OR AN INFESTATION BY RODENTS,
OR ANY COMBINATION OF SUCH CONDITIONS; OR
2. A COURSE OF CONDUCT BY THE OWNER OR THE OWNER'S AGENTS OF HARASS-
MENT, ILLEGAL EVICTION, CONTINUED DEPRIVATION OF SERVICES OR OTHER ACTS
DANGEROUS TO LIFE, HEALTH OR SAFETY.
§ 796-C. COMMENCEMENT; NOTICE OF PETITION; TIME AND MANNER OF SERVICE.
1. A SPECIAL PROCEEDING PRESCRIBED BY THIS ARTICLE SHALL BE COMMENCED
BY THE SERVICE OF A PETITION AND NOTICE OF PETITION. A NOTICE OF PETI-
TION MAY BE ISSUED ONLY BY A JUDGE OR THE CLERK OF THE COURT.
2. THE NOTICE OF PETITION SHALL SPECIFY THE TIME AND PLACE OF THE
HEARING ON THE PETITION AND STATE THAT IF AT SUCH TIME, A DEFENSE TO
SUCH PETITION IS NOT INTERPOSED AND ESTABLISHED BY THE OWNER OR ANY
MORTGAGEE OR LIENOR OF RECORD, A FINAL JUDGMENT MAY BE RENDERED DIRECT-
ING THAT:
(A) THE RENTS DUE ON THE DATE OF ENTRY OF SUCH JUDGMENT FROM THE PETI-
TIONING TENANTS AND THE RENTS DUE ON THE DATES OF SERVICE OF SUCH JUDG-
MENT ON ALL OTHER TENANTS OCCUPYING SUCH DWELLING, FROM SUCH OTHER
TENANTS, SHALL BE DEPOSITED WITH THE ADMINISTRATOR APPOINTED PURSUANT TO
SECTION SEVEN HUNDRED NINETY-SIX-J OF THIS ARTICLE;
(B) ANY RENTS TO BECOME DUE IN THE FUTURE FROM SUCH PETITIONERS AND
FROM ALL OTHER TENANTS OCCUPYING SUCH DWELLING SHALL BE DEPOSITED WITH
SUCH ADMINISTRATOR AS THEY FALL DUE; AND
(C) SUCH DEPOSITED RENTS SHALL BE USED, SUBJECT TO THE COURT'S DIREC-
TION, TO THE EXTENT NECESSARY TO REMEDY THE CONDITION OR CONDITIONS
ALLEGED IN THE PETITION.
3. THE NOTICE OF PETITION AND PETITION SHALL BE SERVED UPON THE PERSON
SET FORTH AS THE OWNER ON THE LAST RECORDED DEED TO THE RENTED DWELLING
AND UPON EVERY MORTGAGEE AND LIENOR OF RECORD, AT LEAST FIVE DAYS BEFORE
THE TIME AT WHICH THE PETITION IS NOTICED TO BE HEARD.
4. THE PROOF OF SERVICE SHALL BE FILED WITH THE COURT BEFORE WHICH THE
PETITION IS TO BE HEARD ON OR BEFORE THE RETURN DATE.
5. (A) SERVICE OF THE NOTICE OF PETITION AND PETITION SHALL BE MADE BY
PERSONALLY DELIVERING THEM TO THE PERSON OR PERSONS REQUIRED TO BE
SERVED PURSUANT TO SUBDIVISION THREE OF THIS SECTION. IF SERVICE CANNOT
WITH DUE DILIGENCE BE MADE UPON AN OWNER, MORTGAGEE OR LIENOR OF RECORD
IN SUCH MANNER, IT SHALL BE MADE:
(I) UPON THE PERSON SET FORTH AS THE OWNER ON THE LAST RECORDED DEED,
TO THE RENTED DWELLING BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, AT THE ADDRESS SET FORTH IN THE RECORDED DEED AND BY DELIVER-
ING TO AND LEAVING COPIES OF THE NOTICE OF PETITION AND THE PETITION
PERSONALLY WITH THE PERSON DESIGNATED AS THE MANAGING AGENT OF THE
DWELLING, IF ONE SHALL HAVE BEEN DESIGNATED;
(II) UPON A MORTGAGEE OR LIENOR OF RECORD, BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, AT THE ADDRESS SET FORTH IN THE RECORDED
MORTGAGE OR LIEN.
(B) IF SUCH PERSONAL SERVICE UPON THE PERSON SET FORTH AS THE OWNER ON
THE LAST RECORDED DEED TO THE RENTED PROPERTY CANNOT BE MADE WITH DUE
DILIGENCE, SERVICE UPON SUCH LAST REGISTERED OWNER SHALL BE MADE BY
AFFIXING A COPY OF THE NOTICE AND PETITION UPON A CONSPICUOUS PART OF
THE SUBJECT DWELLING; AND IN ADDITION, WITHIN TWO DAYS AFTER SUCH AFFIX-
ING, BY SENDING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO THE OWNER AT THE ADDRESS SET FORTH IN THE LAST
RECORDED DEED WITH RESPECT TO SUCH DWELLING.
S. 6721 4
6. NOTICE OF THE PROCEEDING SHALL BE GIVEN TO THE NON-PETITIONING
TENANTS OCCUPYING THE DWELLING BY AFFIXING A COPY OF THE NOTICE OF PETI-
TION AND PETITION UPON A CONSPICUOUS PART OF THE SUBJECT DWELLING.
§ 796-D. CONTENTS OF PETITION. THE PETITION SHALL:
1. ALLEGE MATERIAL FACTS SHOWING THAT THERE EXISTS IN SUCH DWELLING OR
ANY PART THEREOF ONE OR MORE OF THE FOLLOWING:
(A) A LACK OF HEAT, RUNNING WATER, LIGHT, ELECTRICITY, ADEQUATE SEWAGE
DISPOSAL FACILITIES, OR ANY OTHER CONDITION DANGEROUS TO LIFE, HEALTH OR
SAFETY, WHICH HAS EXISTED FOR FIVE DAYS, OR AN INFESTATION OF RODENTS;
OR
(B) A COURSE OF CONDUCT BY THE OWNER OR HIS AGENTS OF HARASSMENT,
ILLEGAL EVICTION, CONTINUED DEPRIVATION OF SERVICES OR OTHER ACTS
DANGEROUS TO LIFE, HEALTH OR SAFETY.
2. IF THE PETITIONERS SHALL BE TENANTS OCCUPYING THE DWELLING, THEY
SHALL ALLEGE THE NUMBER OF PETITIONERS MAKING THE PETITION AND THAT:
(A) IN THE CASE OF A MULTIPLE RESIDENCE DWELLING, THEY CONSTITUTE
ONE-THIRD OR MORE OF THE TENANTS IN OCCUPANCY THEREOF; OR
(B) IN THE CASE OF A SINGLE RESIDENCE DWELLING, THEY ARE THE OCCUPANTS
OF SUCH SINGLE-RESIDENCE DWELLING.
3. ALLEGE A BRIEF DESCRIPTION OF THE NATURE OF THE WORK REQUIRED TO
REMOVE OR REMEDY THE CONDITION AND AN ESTIMATE AS TO THE COST THEREOF
EXCEPT THAT IF THE PETITIONERS SHALL BE TENANTS OCCUPYING THE DWELLING,
THE PETITION MAY ALLEGE THE CONDITIONS COMPLAINED OF IN WHICH EVENT SUCH
DESCRIPTION SHALL NOT BE REQUIRED TO BE MADE BY ANYONE NOT A PARTY TO
THE PETITION.
4. IF THE PETITIONERS SHALL BE TENANTS OCCUPYING THE DWELLING, THEY
SHALL ALLEGE THE AMOUNT OF RENT DUE FROM EACH SUCH PETITIONER, MONTHLY.
5. STATE THE RELIEF SOUGHT.
§ 796-E. ANSWER. AT THE TIME WHEN THE PETITION IS TO BE HEARD, THE
OWNER AND ANY MORTGAGEE OR LIENOR OF RECORD, SHALL ANSWER IN WRITING. IF
THE NOTICE OF PETITION WAS SERVED AT LEAST EIGHT DAYS BEFORE THE TIME AT
WHICH IT WAS NOTICED TO BE HEARD AND IT SO DEMANDS, THE ANSWER SHALL BE
SERVED AT LEAST THREE DAYS BEFORE THE TIME THE PETITION IS NOTICED TO BE
HEARD AND ANY REPLY SHALL BE SERVED AT LEAST ONE DAY BEFORE SUCH TIME.
§ 796-F. TRIAL. WHERE TRIABLE ISSUES OF FACT ARE RAISED, THEY SHALL BE
TRIED BY THE COURT WITHOUT A JURY AT THE TIME WHEN ISSUE IS JOINED;
PROVIDED, HOWEVER, THAT THE COURT, IN ITS DISCRETION, MAY GRANT AN
ADJOURNMENT OF SUCH TRIAL AT REQUEST OF EITHER PARTY, IF IT DETERMINES
THAT AN ADJOURNMENT IS NECESSARY TO ENABLE EITHER OF THE PARTIES TO
PROCURE THE NECESSARY WITNESSES, OR UPON CONSENT OF ALL THE PARTIES WHO
APPEAR. SUCH ADJOURNMENT SHALL NOT BE FOR MORE THAN FIVE DAYS EXCEPT BY
CONSENT OF ALL THE PARTIES WHO APPEAR.
§ 796-G. DEFENSES. IT SHALL BE A SUFFICIENT DEFENSE TO THE PROCEEDING,
IF THE OWNER OR ANY MORTGAGEE OR LIENOR OF RECORD ESTABLISH THAT:
1. THE CONDITION OR CONDITIONS ALLEGED IN THE PETITION DID NOT IN FACT
EXIST OR THAT SUCH CONDITION OR CONDITIONS HAVE BEEN REMOVED OR REME-
DIED; OR
2. SUCH CONDITION OR CONDITIONS HAVE BEEN CAUSED BY A PETITIONING
TENANT OR TENANTS OR MEMBERS OF THE FAMILY OR FAMILIES OF SUCH PETITION-
ER OR PETITIONERS OR OF THEIR GUESTS OR BY OTHER RESIDENTS OF THE DWELL-
ING OR THEIR FAMILIES OR GUESTS; OR
3. ANY TENANT OR RESIDENT OF THE DWELLING HAS REFUSED ENTRY TO THE
OWNER OR THE OWNER'S AGENT TO A PORTION OF THE PREMISES FOR THE PURPOSE
OF CORRECTING SUCH CONDITION OR CONDITIONS.
§ 796-H. JUDGMENT. 1. THE COURT SHALL RENDER A FINAL JUDGMENT EITHER:
S. 6721 5
(A) DISMISSING THE PETITION FOR FAILURE TO AFFIRMATIVELY ESTABLISH THE
ALLEGATIONS THEREOF OR BECAUSE OF THE AFFIRMATIVE ESTABLISHMENT BY THE
OWNER OR A MORTGAGEE OR LIENOR OF RECORD OF A DEFENSE OR DEFENSES SPECI-
FIED IN SECTION SEVEN HUNDRED NINETY-SIX-G OF THIS ARTICLE; OR
(B)(I) DIRECTING THAT:
(A) THE RENTS DUE ON THE DATE OF THE ENTRY OF SUCH JUDGMENT FROM THE
PETITIONING TENANTS AND THE RENTS DUE ON THE DATES OF SERVICE OF THE
JUDGMENT ON ALL OTHER RESIDENTIAL AND NON-RESIDENTIAL TENANTS OCCUPYING
SUCH DWELLING FROM SUCH OTHER TENANTS, SHALL BE DEPOSITED WITH THE
ADMINISTRATOR APPOINTED BY THE COURT, PURSUANT TO SECTION SEVEN HUNDRED
NINETY-SIX-J OF THIS ARTICLE;
(B) ANY RENTS TO BECOME DUE IN THE FUTURE FROM ALL TENANTS OCCUPYING
SUCH DWELLING SHALL BE DEPOSITED WITH SUCH ADMINISTRATOR AS THEY COME
DUE;
(C) SUCH DEPOSITED RENTS SHALL BE USED, SUBJECT TO THE COURT'S DIREC-
TION, TO THE EXTENT NECESSARY TO REMEDY THE CONDITION OR CONDITIONS
ALLEGED IN THE PETITION; AND
(D) UPON THE COMPLETION OF SUCH WORK IN ACCORDANCE WITH SUCH JUDGMENT,
ANY REMAINING SURPLUS SHALL BE TURNED OVER TO THE OWNER, TOGETHER WITH A
COMPLETE ACCOUNTING OF THE RENTS DEPOSITED AND THE COSTS INCURRED; AND
(II) GRANTING SUCH OTHER AND FURTHER RELIEF AS TO THE COURT MAY SEEM
JUST AND PROPER.
2. (A) A CERTIFIED COPY OF SUCH JUDGMENT SHALL BE SERVED PERSONALLY
UPON EACH NON-PETITIONING TENANT OCCUPYING SUCH DWELLING. IF PERSONAL
SERVICE ON ANY SUCH NON-PETITIONING TENANT CANNOT BE MADE WITH DUE DILI-
GENCE, SERVICE ON SUCH TENANT SHALL BE MADE BY AFFIXING A CERTIFIED COPY
OF SUCH JUDGMENT ON THE ENTRANCE DOOR OF SUCH TENANT'S APARTMENT OR
OTHER UNIT AND, IN ADDITION, WITHIN ONE DAY AFTER SUCH AFFIXING, BY
SENDING A CERTIFIED COPY THEREOF BY REGISTERED MAIL, RETURN RECEIPT
REQUESTED, TO SUCH TENANT.
(B) ANY RIGHT OF THE OWNER OF SUCH DWELLING TO COLLECT SUCH RENT
MONEYS FROM ANY PETITIONING TENANT OF SUCH DWELLING ON OR AFTER THE DATE
OF ENTRY OF SUCH JUDGMENT, AND FROM ANY NON-PETITIONING TENANT OF SUCH
DWELLING ON OR AFTER THE DATE OF SERVICE OF SUCH JUDGMENT ON SUCH NON-
PETITIONING TENANT AS HEREIN PROVIDED, SHALL BE VOID AND UNENFORCEABLE
TO THE EXTENT THAT SUCH PETITIONING OR NON-PETITIONING TENANT, AS THE
CASE MAY BE, HAS DEPOSITED SUCH MONEYS WITH THE ADMINISTRATOR IN ACCORD-
ANCE WITH THE TERMS OF SUCH JUDGMENT, REGARDLESS OF WHETHER SUCH RIGHT
OF THE OWNER ARISES FROM A LEASE, CONTRACT, AGREEMENT OR UNDERSTANDING
HERETOFORE OR HEREAFTER MADE OR ENTERED INTO OR ARISES AS A MATTER OF
LAW FROM THE RELATIONSHIP OF THE PARTIES OR OTHERWISE. IT SHALL BE A
VALID DEFENSE IN ANY ACTION OR PROCEEDING AGAINST ANY SUCH TENANT TO
RECOVER POSSESSION OF REAL PROPERTY FOR THE NON-PAYMENT OF RENT OR FOR
USE OR OCCUPATION TO PROVE THAT THE RENT ALLEGED TO BE UNPAID WAS DEPOS-
ITED WITH THE ADMINISTRATOR IN ACCORDANCE WITH THE TERMS OF A JUDGMENT
ENTERED UNDER THIS SECTION.
§ 796-I. APPLICATION BY MORTGAGEE OR LIENOR OF RECORD OR OTHER PERSON
HAVING AN INTEREST IN THE PROPERTY. 1. IF, AFTER A TRIAL, THE COURT
SHALL DETERMINE THAT THE FACTS ALLEGED IN THE PETITION HAVE BEEN AFFIR-
MATIVELY ESTABLISHED BY THE PETITIONERS, THAT NO DEFENSE THERETO SPECI-
FIED IN SECTION SEVEN HUNDRED NINETY-SIX-G OF THIS ARTICLE HAS BEEN
AFFIRMATIVELY ESTABLISHED BY THE OWNER OR A MORTGAGEE OR LIENOR OF
RECORD, AND THAT THE FACTS ALLEGED IN THE PETITION WARRANT THE GRANTING
OF THE RELIEF SOUGHT, AND IF THE OWNER OR ANY MORTGAGEE OR LIENOR OF
RECORD OR OTHER PERSON HAVING AN INTEREST IN THE PROPERTY, SHALL APPLY
TO THE COURT TO BE PERMITTED TO REMOVE OR REMEDY THE CONDITIONS SPECI-
S. 6721 6
FIED IN SUCH PETITION AND SHALL (I) DEMONSTRATE THE ABILITY PROMPTLY TO
UNDERTAKE THE WORK REQUIRED AND (II) POST SECURITY FOR THE PERFORMANCE
OF SUCH WORK WITHIN THE TIME, AND IN THE AMOUNT AND MANNER, DEEMED
NECESSARY BY THE COURT, THEN THE COURT, IN LIEU OF RENDERING JUDGMENT AS
PROVIDED IN SECTION SEVEN HUNDRED NINETY-SIX-H OF THIS ARTICLE, MAY
ISSUE AN ORDER PERMITTING SUCH PERSON TO PERFORM THE WORK WITHIN A TIME
FIXED BY THE COURT.
2. IF, AFTER THE ISSUANCE OF AN ORDER PURSUANT TO SUBDIVISION ONE OF
THIS SECTION, BUT BEFORE THE TIME FIXED IN SUCH ORDER FOR THE COMPLETION
OF THE WORK PRESCRIBED THEREIN, IT SHALL APPEAR TO THE PETITIONERS THAT
THE PERSON PERMITTED TO DO THE SAME IS NOT PROCEEDING WITH DUE DILI-
GENCE, THE PETITIONS MAY APPLY TO THE COURT ON NOTICE TO THOSE PERSONS
WHO HAVE APPEARED IN THE PROCEEDING FOR A HEARING TO DETERMINE WHETHER
JUDGMENT SHOULD BE RENDERED IMMEDIATELY AS PROVIDED IN SUBDIVISION THREE
OF THIS SECTION.
3. IF, UPON A HEARING AUTHORIZED IN SUBDIVISION TWO OF THIS SECTION,
THE COURT SHALL DETERMINE THAT THE OWNER, MORTGAGEE, LIENOR OR OTHER
PERSON IS NOT PROCEEDING WITH DUE DILIGENCE, OR UPON THE FAILURE OF THE
OWNER, MORTGAGEE, LIENOR OR OTHER PERSON TO COMPLETE THE WORK IN ACCORD-
ANCE WITH THE PROVISIONS OF THE ORDER, THE COURT SHALL RENDER A FINAL
JUDGMENT APPOINTING AN ADMINISTRATOR AS AUTHORIZED IN SECTION SEVEN
HUNDRED NINETY-SIX-J OF THIS ARTICLE. SUCH JUDGMENT SHALL DIRECT THE
ADMINISTRATOR TO APPLY THE SECURITY POSTED BY SUCH PERSON TO THE REMOV-
ING OR REMEDYING OF THE CONDITION OR CONDITIONS SPECIFIED IN THE PETI-
TION. IN THE EVENT THAT THE AMOUNT OF SUCH SECURITY SHOULD BE INSUFFI-
CIENT FOR SUCH PURPOSE, SUCH JUDGMENT SHALL DIRECT THE DEPOSIT OF RENTS
WITH THE ADMINISTRATOR, AS AUTHORIZED BY SECTION SEVEN HUNDRED NINETY-
SIX-H OF THIS ARTICLE, TO THE EXTENT OF SUCH DEFICIENCY. IN THE EVENT
THAT SUCH SECURITY SHOULD EXCEED THE AMOUNT REQUIRED TO REMOVE OR REMEDY
SUCH CONDITION OR CONDITIONS, SUCH JUDGMENT SHALL DIRECT THE ADMINISTRA-
TOR TO FILE WITH THE COURT, UPON COMPLETION OF THE WORK PRESCRIBED THER-
EIN, A FULL ACCOUNTING OF THE AMOUNT OF SUCH SECURITY AND THE EXPENDI-
TURES MADE PURSUANT TO SUCH JUDGMENT, AND TO TURN OVER SUCH SURPLUS TO
THE PERSON WHO POSTED SUCH SECURITY, TOGETHER WITH A COPY OF SUCH
ACCOUNTING.
§ 796-J. APPOINTMENT OF ADMINISTRATOR. 1.(A) THE COURT IS AUTHORIZED
AND EMPOWERED, IN IMPLEMENTATION OF A JUDGMENT RENDERED PURSUANT TO
SECTION SEVEN HUNDRED NINETY-SIX-H OR SEVEN HUNDRED NINETY-SIX-I OF THIS
ARTICLE, TO APPOINT A PERSON OTHER THAN THE OWNER, A MORTGAGEE OR A
LIENOR, TO RECEIVE AND ADMINISTER THE RENT MONEYS OR SECURITY DEPOSITED
WITH SUCH OWNER, MORTGAGEE OR LIENOR, SUBJECT TO THE COURT'S DIRECTION.
(B) THE COURT MAY APPOINT THE COMMISSIONER OF THE DEPARTMENT CHARGED
WITH ENFORCEMENT OF THE HOUSING MAINTENANCE CODE IN THE MUNICIPALITY
WHERE THE DWELLING IS LOCATED OR THE COMMISSIONER'S DESIGNEE AS SUCH
ADMINISTRATOR, PROVIDED THAT THE COMMISSIONER OR THE COMMISSIONER'S
DESIGNEE SHALL CONSENT, IN WRITING, TO SUCH APPOINTMENT.
(C) ANY ADMINISTRATOR IS AUTHORIZED AND EMPOWERED IN ACCORDANCE WITH
THE DIRECTION OF THE COURT, TO:
(I) ORDER THE NECESSARY MATERIALS, LABOR AND SERVICES TO REMOVE OR
REMEDY THE CONDITIONS SPECIFIED IN THE JUDGMENT, AND TO MAKE DISBURSE-
MENTS IN PAYMENT THEREOF;
(II) DEMAND, COLLECT AND RECEIVE THE RENTS FROM THE TENANTS OF THE
DWELLING;
(III) INSTITUTE ALL NECESSARY LEGAL PROCEEDINGS INCLUDING, BUT NOT
LIMITED TO, SUMMARY PROCEEDINGS FOR THE REMOVAL OF ANY TENANT OR
TENANTS;
S. 6721 7
(IV) 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 PORTIONS OF A PREMISES ZONED FOR MIXED COMMERCIAL
AND RESIDENTIAL USE FOR TERMS THAT THE COURT MAY APPROVE; AND
(V) IN ACCORDANCE WITH THE DIRECTION OF THE COURT, TO ACCEPT AND REPAY
SUCH MONEYS AS MAY BE RECEIVED FROM THE DEPARTMENT OR DEPARTMENTS
CHARGED WITH ENFORCEMENT OF THE HOUSING MAINTENANCE CODE IN THE MUNICI-
PALITY OR MUNICIPALITIES WHERE THE DWELLING IS LOCATED FOR THE PURPOSE
OF MANAGING THE PREMISES, REPLACING OR SUBSTANTIALLY REHABILITATING
SYSTEMS OR MAKING OTHER REPAIRS OR CAPITAL IMPROVEMENTS AUTHORIZED BY
THE COURT. ALL MONEYS EXPENDED BY SUCH DEPARTMENT OR DEPARTMENTS PURSU-
ANT 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.
(D) UPON COMPLETION OF THE WORK PRESCRIBED IN SUCH JUDGMENT, THE
ADMINISTRATOR, SHALL FILE WITH THE COURT A FULL ACCOUNTING OF ALL
RECEIPTS AND EXPENDITURES FOR SUCH WORK. THE ADMINISTRATOR SHALL DISPOSE
OF THE RENTS AND OTHER MONIES DEPOSITED WITH SUCH ADMINISTRATOR ACCORD-
ING TO THE FOLLOWING ORDER OF PRIORITY:
(I) 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.
(II) PAYMENT OF A REASONABLE AMOUNT FOR THE SERVICES OF THE ADMINIS-
TRATOR, INCLUDING REIMBURSEMENT OF ANY LEGAL FEES INCURRED BY THE ADMIN-
ISTRATOR IN CONNECTION WITH MANAGEMENT OF THE BUILDING.
(III) PAYMENT OF OUTSTANDING REAL PROPERTY TAX LIENS CLAIMED BY ANY
MUNICIPALITY IN WHICH THE DWELLING IS LOCATED.
(IV) PAYMENT OF OUTSTANDING EMERGENCY REPAIR LIENS FILED AND RECORDED
BY ANY MUNICIPALITY IN WHICH THE DWELLING IS LOCATED AND OUTSTANDING
LIENS FILED AND RECORDED BY SUCH MUNICIPALITY OR MUNICIPALITIES PURSUANT
TO THIS SECTION.
(V) PAYMENT TO THE OWNER OF THE DWELLING OF ANY SURPLUS REMAINING
AFTER PAYMENTS OF SUBPARAGRAPHS (I), (II), (III) AND (IV) OF THIS PARA-
GRAPH HAVE BEEN MADE.
2. THE COURT MAY ALLOW FROM THE RENT MONEYS OR SECURITY ON DEPOSIT A
REASONABLE AMOUNT FOR SERVICES OF SUCH ADMINISTRATOR.
3. THE ADMINISTRATOR SHALL FURNISH A BOND, THE AMOUNT AND FORM OF
WHICH SHALL BE APPROVED BY THE COURT. IN ITS DISCRETION AND FOR GOOD
CAUSE SHOWN, THE COURT MAY DISPENSE WITH THE NECESSITY FOR A BOND. THE
COST OF A REQUIRED BOND SHALL BE PAID FROM THE MONEYS SO DEPOSITED.
4. THE ADMINISTRATOR SHALL FILE A TRANSCRIPT OF THE JUDGMENT APPOINT-
ING HIM OR HER WITH THE CLERK OF THE COUNTY IN WHICH THE SUBJECT PREM-
ISES IS LOCATED WITHIN FIFTEEN DAYS OF HIS OR HER APPOINTMENT.
5. THE DUTIES OF THE ADMINISTRATOR SHALL NOT BE AFFECTED BY THE
APPOINTMENT OF A RECEIVER IN AN ACTION TO FORECLOSE A MORTGAGE ON THE
PREMISES, EXCEPT THAT THE RIGHTS OF THE OWNER, INCLUDING THE RIGHT TO
ANY SURPLUS, PURSUANT TO SUBPARAGRAPH (V) OF PARAGRAPH (D) OF SUBDIVI-
SION ONE OF THIS SECTION, SHALL PASS TO THE RECEIVER. THE COURT IN WHICH
THE ACTION TO FORECLOSE A MORTGAGE ON THE PREMISES IS PENDING MAY
APPOINT SUCH ADMINISTRATOR TO SERVE AS RECEIVER IN THAT ACTION IN ADDI-
TION TO HIS OR HER DUTIES AS ADMINISTRATOR PURSUANT TO THIS ARTICLE.
6.(A) SUCH ADMINISTRATOR SHALL BE LIABLE ONLY IN HIS OR HER OFFICIAL
CAPACITY FOR INJURY TO PERSONS AND PROPERTY BY REASON OF CONDITIONS OF
S. 6721 8
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.
(B) APPOINTMENT OF AN ADMINISTRATOR PURSUANT TO SUBDIVISION ONE OF
THIS SECTION SHALL NOT RELIEVE AN OWNER OF LIABILITY FOR INJURY TO
PERSONS AND PROPERTY IN SUCH CASE.
7. NO MUNICIPALITY SHALL BE LIABLE TO ANY PARTY, INCLUDING THE ADMIN-
ISTRATOR OR THE OWNER OF THE DWELLING, FOR INJURY TO PERSONS OR PROPERTY
BY REASON OF CONDITIONS OF THE PREMISES OR THE ACTS OR OMISSIONS OF THE
ADMINISTRATOR.
8. THE COMMISSIONER OF THE DEPARTMENT CHARGED WITH ENFORCEMENT OF THE
HOUSING MAINTENANCE CODE IN THE MUNICIPALITY WHERE THE DWELLING IS
LOCATED SHALL PROMULGATE RULES AND REGULATIONS REGARDING CRITERIA FOR
THE SELECTION OF ADMINISTRATORS TO BE APPOINTED PURSUANT TO THIS SECTION
AND SHALL ESTABLISH AND MAINTAIN A LIST OF PERSONS APPROVED BY SUCH
DEPARTMENT. ANY PERSON APPOINTED AS AN ADMINISTRATOR WITHIN SUCH MUNICI-
PALITY SHALL BE SELECTED FROM AMONG THE PERSONS APPROVED AS ADMINISTRA-
TORS PURSUANT TO SUCH LIST. A CITY, TOWN OR VILLAGE MAY ESTABLISH AND
MAINTAIN SUCH LIST ITSELF OR ELECT TO HAVE SUCH LIST ESTABLISHED AND
MAINTAINED BY THE COMMISSIONER OF THE DEPARTMENT CHARGED WITH ENFORCE-
MENT OF THE HOUSING MAINTENANCE CODE IN THE COUNTY IN WHICH A DWELLING
IS LOCATED.
9. THE ADMINISTRATOR SHALL, WITHIN THIRTY DAYS OF APPOINTMENT, FILE
WITH THE COURT A PLAN FOR THE PROVISION OF ESSENTIAL SERVICES AND FOR
THE CORRECTION OF SUCH OTHER HAZARDOUS CONDITIONS AS MAY EXIST AT THE
PREMISES, SPECIFYING DATES BY WHICH SUCH SERVICES SHALL BE PROVIDED AND
SUCH CONDITIONS CORRECTED. IF SUCH ADMINISTRATOR CANNOT PROVIDE SUCH
SERVICES AND CORRECT SUCH CONDITIONS BY THE DATES SPECIFIED IN THE PLAN,
HE OR SHE SHALL BE REQUIRED TO FILE WITH THE COURT AN AMENDMENT TO THE
PLAN SETTING FORTH THE REASONS WHY SUCH SERVICES AND CORRECTIONS COULD
NOT BE PROVIDED BY SUCH DATE AND SPECIFYING NEW DATES FOR SUCH SERVICES
AND CORRECTIONS. SUCH PLAN AND ANY AMENDMENTS TO SUCH PLAN SHALL BE
PROVIDED TO THE TENANTS BY MAIL OR BY POSTING IN A COMMON AREA OF THE
BUILDING AND TO THE OWNER OF RECORD BY MAIL.
10. 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 ANY MUNICIPALITY IN WHICH
THE DWELLING IS LOCATED, ALL OUTSTANDING EMERGENCY REPAIR LIENS FILED
AND RECORDED BY ANY MUNICIPALITY IN WHICH THE DWELLING IS LOCATED AND
ALL OUTSTANDING LIENS FILED AND RECORDED BY SUCH MUNICIPALITY OR MUNICI-
PALITIES PURSUANT TO THIS SECTION.
§ 796-K. PRESENTATION OR SETTLEMENT OF ACCOUNTS. THE COURT SHALL
REQUIRE THE KEEPING OF WRITTEN ACCOUNTS ITEMIZING THE RECEIPTS AND
EXPENDITURES FOR WORK PERFORMED UNDER AN ORDER ISSUED PURSUANT TO
SECTION SEVEN HUNDRED NINETY-SIX-H OR SEVEN HUNDRED NINETY-SIX-I OF THIS
ARTICLE, WHICH SHALL BE OPEN TO INSPECTION BY THE OWNER OF THE DWELLING,
OR ANY MORTGAGEE OR LIENOR OR ANY OTHER PERSON HAVING AN INTEREST IN
SUCH RECEIPTS OR EXPENDITURES PROVIDED, HOWEVER, THAT NOTWITHSTANDING
ANY OTHER PROVISION OF LAW TO THE CONTRARY, SUCH INFORMATION AS MAY BE
IN THE POSSESSION OF THE DEPARTMENT CHARGED WITH THE ENFORCEMENT OF THE
HOUSING MAINTENANCE CODE OF THE COUNTY OR CITY SHALL BE AVAILABLE FROM
SUCH DEPARTMENT FOR INSPECTION ONLY BY THE OWNER OF THE DWELLING, THE
TENANT OF THE DWELLING, OR A PERSON HAVING A RECORDED INTEREST IN THE
PROPERTY. UPON MOTION OF THE COURT OR THE ADMINISTRATOR OR OF THE OWNER,
ANY MORTGAGEE OR LIENOR OF RECORD OR OF ANY PERSON HAVING AN INTEREST,
THE COURT MAY REQUIRE A PRESENTATION OR SETTLEMENT OF THE ACCOUNTS WITH
RESPECT THERETO. NOTICE OF A MOTION FOR PRESENTATION OR SETTLEMENT OF
S. 6721 9
SUCH ACCOUNTS SHALL BE SERVED ON THE OWNER, ANY MORTGAGEE OR OTHER
LIENOR OF RECORD WHO APPEARED IN THE PROCEEDING AND ANY PERSON HAVING AN
INTEREST IN SUCH RECEIPTS OR EXPENDITURES.
§ 796-L. WAIVER VOID. ANY PROVISION OF A LEASE OR OTHER AGREEMENT
WHEREBY ANY PROVISION OF THIS ARTICLE FOR THE BENEFIT OF A TENANT, RESI-
DENT OR OCCUPANT OF A DWELLING IS WAIVED, SHALL BE DEEMED AGAINST PUBLIC
POLICY AND SHALL BE VOID.
§ 796-M. DEFENSE OF WARRANTY OF HABITABILITY INAPPLICABLE. NOTWITH-
STANDING ANY OTHER PROVISION OF LAW, IN ANY PROCEEDING FOR THE PAYMENT
OF RENT COMMENCED BY AN ADMINISTRATOR APPOINTED PURSUANT TO THIS ARTI-
CLE, THE PROVISIONS OF SECTION TWO HUNDRED THIRTY-FIVE-B OF THE REAL
PROPERTY LAW PERTAINING TO THE WARRANTY OF HABITABILITY SHALL NOT BE A
DEFENSE TO SUCH A PROCEEDING FOR RENT WHICH ACCRUES DURING THE PERIOD OF
TIME THAT A JUDGMENT OR AN ORDER PURSUANT TO THIS ARTICLE IS IN EFFECT,
UNLESS THE COURT DETERMINES THAT THE CONDITIONS UPON WHICH SUCH DEFENSE
IS BASED WERE CAUSED BY THE FAILURE OF SUCH ADMINISTRATOR TO PERFORM HIS
OR HER DUTIES IN A REASONABLE MANNER.
§ 2. This act shall take effect immediately.
