Bill Text: NY A10407 | 2021-2022 | General Assembly | Introduced

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Bill Title: Expands the right to seek the appointment of administrators of buildings to tenants and local governments throughout the state and to make procedures conform with realities of housing stock throughout the state.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-05-13 - referred to judiciary [A10407 Detail]

Download: New_York-2021-A10407-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10407

                   IN ASSEMBLY

                                      May 13, 2022
                                       ___________

        Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Meeks) --
          read once and referred to the Committee on Judiciary

        AN ACT to amend the real property actions and proceedings  law  and  the
          New  York  city civil court act, in relation to expanding the right to
          seek the appointment of administrators of buildings, pursuant to arti-
          cle 7-A of the real property actions and proceedings law,  to  tenants
          and  local  governments  throughout  the  state and to make procedures
          conform with realities of housing stock throughout the state; to amend
          chapter 570 of the laws of 1909 relating to the establishment  of  the
          city  court  of  Buffalo, in relation to actions and proceedings under
          article 7-A of the real property actions and proceedings law; to amend
          chapter 464 of the laws of 2021 relating  to  enacting  the  Rochester
          housing  court act, in relation to actions and proceedings under arti-
          cle 7-A of the real property  actions  and  proceedings  law;  and  to
          repeal  section  777  of the real property actions and proceedings law
          relating thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision 1 of section 769 of the real property actions
     2  and proceedings law, as amended by chapter 877 of the laws of  1982,  is
     3  amended to read as follows:
     4    1.  A  special proceeding by tenants of a dwelling [in the city of New
     5  York or the counties of Nassau, Suffolk, Rockland and Westchester] or by
     6  the department or agency of a city, town, village, or county responsible
     7  for the enforcement of the multiple dwelling law, the multiple residence
     8  law, the uniform fire prevention and building code, or  any  other  law,
     9  code or ordinance governing the occupancy and maintenance of residential
    10  property  or addressing conditions dangerous to health, life, and safety
    11  in the municipality or county where the dwelling is located (hereinafter
    12  in this article referred to as "the housing standards department") for a
    13  judgment directing the deposit of rents into court and their use for the
    14  purpose of remedying conditions dangerous to life, health or safety  may
    15  be  maintained  in the civil court of the city of New York, the district
    16  court of the counties of Suffolk and Nassau, the housing courts  in  the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15622-01-2
        A. 10407                            2

     1  cities of Buffalo and Rochester, and the county courts [or], city courts
     2  or  town  courts in [the counties of Rockland and Westchester] all other
     3  counties.
     4    §  2. Section 770 of the real property actions and proceedings law, as
     5  amended by chapter 655 of the laws of 1978, subdivision 1 as amended  by
     6  chapter 455 of the laws of 2013, is amended to read as follows:
     7    § 770. Grounds for the proceeding. 1. One-third or more of the tenants
     8  occupying a dwelling [located in the city of New York or the commission-
     9  er of the department of the city of New York charged with enforcement of
    10  the housing maintenance code of such city, or in the counties of Nassau,
    11  Suffolk,  Rockland and Westchester] and/or the housing standards depart-
    12  ment may [maintain] commence a special proceeding as  provided  in  this
    13  article,  upon  the ground that there exists in such dwellings or in any
    14  part thereof a lack of heat or of running water or of light or of  elec-
    15  tricity  or  of adequate sewage disposal facilities, or any other condi-
    16  tion dangerous to life, health or safety, which  has  existed  for  five
    17  days,  or  an  infestation by rodents, or any combination of such condi-
    18  tions; or course of conduct by  the  owner  or  the  owner's  agents  of
    19  harassment,  illegal  eviction,  retaliation  as  defined by section two
    20  hundred twenty-three-b of the real property law, interference  with  the
    21  right  of tenants to form, join or participate in tenants' groups pursu-
    22  ant to section two hundred thirty of the real  property  law,  continued
    23  deprivation of services or other acts dangerous to life, health or safe-
    24  ty, or a business practice of neglect as defined in subdivision three of
    25  this  section, or the issuance of an order to the owner of such dwelling
    26  by the commissioner of such department of the city of New York  pursuant
    27  to  the  alternative  enforcement  program  under section 27-2153 of the
    28  administrative code of the city of New York, provided that such dwelling
    29  has not been discharged from the program pursuant to  such  section  and
    30  there  has  not  been  a  determination that the owner has substantially
    31  complied with such order.
    32    2. If the proceeding is instituted by the [commissioner of the depart-
    33  ment of the city of New York charged with  enforcement  of  the  housing
    34  maintenance  code  of such city] housing standards department, one-third
    35  or more of the tenants may, at any time thereafter during  the  pendency
    36  of  the  proceeding  or  after  final judgment pursuant to section seven
    37  hundred seventy-six [or seven hundred seventy-seven]  of  this  article,
    38  petition  for substitution of themselves in place and [stead] instead of
    39  such [commissioner of such] housing standards  department,  or,  in  the
    40  alternative,  move to be joined as a party. Such substitution or joinder
    41  shall be ordered by the court unless good reason to the  contrary  shall
    42  be shown.
    43    3.  For  the  purposes of this article, a business practice of neglect
    44  shall be defined as a course of conduct comprising acts or omissions  by
    45  the owner, person acting on the owner's behalf, mortgagee, and/or lienor
    46  of  record, which results in a clear and convincing pattern of recurrent
    47  qualifying conditions and/or code violations, even if no such conditions
    48  or violations exist at the time of the filing of the petition. A  quali-
    49  fying condition for purposes of this article is a condition dangerous to
    50  health,  life,  or  safety.  A clear and convincing pattern of recurrent
    51  qualifying conditions and/or code  violations  exists  when  within  the
    52  twelve months preceding the date of the filing of the petition:
    53    (a)  for  at  least one-third of the dwelling units within the subject
    54  dwelling, there have existed at least two qualifying  conditions  and/or
    55  code violations for a qualifying condition; or
        A. 10407                            3

     1    (b)  the  sum  of  qualifying  conditions and/or code violations for a
     2  qualifying condition which have existed within the subject  dwelling  or
     3  dwelling  units  therein  equals or exceeds twice the number of dwelling
     4  units; or
     5    (c)  the sum of qualifying conditions and/or violations for qualifying
     6  conditions which the owner has failed to  promptly  correct  within  the
     7  subject  dwelling or dwelling units therein equals or exceeds the number
     8  of dwelling units; or
     9    (d) for at least one-third of the dwelling units  within  the  subject
    10  dwelling,  there  have  existed at least one qualifying condition and/or
    11  violation for a qualifying condition, and a clear and convincing pattern
    12  of recurrent qualifying conditions or  code  violations  as  defined  in
    13  paragraph  (a), (b), or (c) of this subdivision exists in another dwell-
    14  ing within New York state with the same owner.
    15    § 3. Section 771 of the real property actions and proceedings law,  as
    16  amended  by  chapter  877  of  the  laws  of 1982, is amended to read as
    17  follows:
    18    § 771. Commencement; notice of petition; time and manner  of  service.
    19  1. A special proceeding prescribed by this article shall be commenced by
    20  the service of a petition and notice of petition.  [A notice of petition
    21  may be issued only by a judge or the clerk of the court.]
    22    2.  The  notice  of  petition  shall specify the time and place of the
    23  hearing on the petition and state that if at such  time,  a  defense  to
    24  such  petition  is  not  interposed  and established by the owner or any
    25  mortgagee or lienor of record, a final judgment may be rendered  direct-
    26  ing  that  the  rents due on the date of entry of such judgment from the
    27  petitioning tenants and the rents due on the dates of  service  of  such
    28  judgment  on  all other tenants occupying such dwelling, from such other
    29  tenants, shall be deposited with the administrator appointed pursuant to
    30  section seven hundred seventy-eight of this article, and  any  rents  to
    31  become  due  in  the  future  from  such  petitioners and from all other
    32  tenants occupying such dwelling shall be deposited with such administra-
    33  tor as they fall due; and that  such  deposited  rents  shall  be  used,
    34  subject  to the court's direction, to the extent necessary to remedy the
    35  condition or conditions alleged in the petition.
    36    3. The notice of petition and petition shall be served:
    37    a. upon the owner of such dwelling last registered with the department
    38  of housing preservation and development of such city pursuant to article
    39  [forty-one of chapter twenty-six] two of subchapter four of chapter  two
    40  of title twenty-seven of the administrative code of the city of New York
    41  [and  in  Nassau,  Suffolk,  Rockland  and Westchester counties upon the
    42  person set forth as the owner on the last recorded deed  to  the  rented
    43  property and];
    44    b.  upon  every  mortgagee and lienor of record[, and upon the city of
    45  New York, at least five days before the time at which  the  petition  is
    46  noticed to be heard];
    47    c. upon the municipality where the dwelling is located; and
    48    d. upon any non-petitioning tenants.
    49    4. The proof of service shall be filed with the court before which the
    50  petition is to be heard on or before the return date.
    51    5.  Manner of service of the notice of petition and petition.  a. Upon
    52  the owner. (1) Service [of the notice of petition and petition] shall be
    53  made upon the owner at least five days before  the  time  at  which  the
    54  petition  is  noticed  to  be  heard by personally delivering [them] the
    55  notice of petition and petition to the person or persons required to  be
    56  served  pursuant  to  paragraphs  a  and  b of subdivision three of this
        A. 10407                            4

     1  section. [Service upon the city of New York shall be  made  by  personal
     2  delivery  to  the  commissioner  of  the  city  department  charged with
     3  enforcement of the housing maintenance code of such city, or to an agent
     4  duly  authorized to accept such service on his behalf. If service cannot
     5  with due diligence be made within the city upon an owner,  mortgagee  or
     6  lienor of record in such manner, it shall be made:
     7    (1)  upon  the  owner  last  registered with the department of housing
     8  preservation and development pursuant to article  forty-one  of  chapter
     9  twenty-six  of  the  administrative  code of the city of New York and in
    10  Nassau, Suffolk, Rockland and Westchester counties upon the  person  set
    11  forth  as  the owner on the last recorded deed to the rented property by
    12  delivering to and leaving personally with the person designated pursuant
    13  to article forty-one of chapter twenty-six  of  such  code  as  managing
    14  agent  of  the  subject  dwelling,  and in Nassau, Suffolk, Rockland and
    15  Westchester counties upon the person designated as the managing agent of
    16  the rented property if one shall have been designated,  a  copy  of  the
    17  notice of petition and petition;
    18    (2)  upon  a mortgagee or lienor of record, by registered or certified
    19  mail, return receipt requested, at the address set forth in the recorded
    20  mortgage or lien.
    21    b. If such personal service upon the  person  designated  pursuant  to
    22  article  forty-one  of  chapter twenty-six of the administrative code of
    23  the city of New York as managing agent of the subject  dwelling  and  in
    24  Nassau,  Suffolk,  Rockland and Westchester counties upon the person set
    25  forth as the owner on the last recorded  deed  to  the  rented  property
    26  cannot  be  made  with  due diligence, service upon such last registered
    27  owner shall be made by affixing a copy of the notice and petition upon a
    28  conspicuous part of the subject dwelling; and in  addition,  within  two
    29  days  after  such  affixing,  by sending a copy thereof by registered or
    30  certified mail, return receipt requested,  to  the  owner  at  the  last
    31  address  registered  by  him with the department of housing preservation
    32  and development or, in the absence of such registration, to the  address
    33  set forth in the last recorded deed with respect to such premises.]
    34    (2)  If such service cannot be made with due diligence within the city
    35  of New York if the dwelling is located therein or otherwise  within  the
    36  county  where  the  dwelling  is located, it shall be made by affixing a
    37  copy of the notice and petition upon a conspicuous part of  the  subject
    38  dwelling; and in addition, within two days after such affixing, by send-
    39  ing  to the owner a copy thereof by registered or certified mail, return
    40  receipt requested, and a copy thereof  by  registered  or  certified  or
    41  regular  first-class  mail,  no return receipt requested. If the subject
    42  dwelling is located in the city of New York, such mailing shall be  sent
    43  to  the address last registered with the department of housing preserva-
    44  tion and development pursuant to article two of subchapter four of chap-
    45  ter two of title twenty-seven of the administrative code of the city  of
    46  New  York,  or  in  the absence of such registration, to the address set
    47  forth in the last recorded deed for the subject dwelling. If the subject
    48  dwelling is located outside the city of New York, such mailing shall  be
    49  sent  to  the  address  where  local  property tax bills for the subject
    50  dwelling are sent or, in the alternative if the  jurisdiction  in  which
    51  the  court  sits  has  a  rental registry requirement, at the registered
    52  address for the subject dwelling.
    53    (3) Upon receipt of service of the petition, the owner  shall  provide
    54  to  the petitioners, within three days, a written list of all mortgagees
    55  and lienors of which the owner is aware and addresses for each.
        A. 10407                            5

     1    b. Upon mortgagees and lienors. (1) Service shall be  made  upon  each
     2  mortgagee  and  lienor  of  record at least five days before the time at
     3  which the petition is noticed to be heard by either personally  deliver-
     4  ing  the notice of petition and petition or, in the alternative, sending
     5  a copy thereof to each mortgagee and lienor of record at the address set
     6  forth  in the recorded mortgage or lien by certified or registered mail,
     7  return receipt requested, and a second  copy  thereof  by  certified  or
     8  registered or regular first-class mail, no return receipt requested.
     9    (2)  For  the  purposes  of  this  article,  a "mortgagee or lienor of
    10  record" shall include only those mortgagees or lienholders whose  inter-
    11  est  is recorded in a publicly accessible database or can be provided on
    12  request by the municipal or county registrar, as  long  as  the  request
    13  includes,  at minimum, the address and borough, block, and lot number of
    14  the subject dwelling, and follows the applicable rules  and  regulations
    15  of  the registrar of the county or municipality in which the property is
    16  located for requesting such information.
    17    c. Upon the municipality. Service shall be made  at  least  five  days
    18  before  the  time  at which the petition is noticed to be heard upon the
    19  municipality as required by paragraph c of  subdivision  three  of  this
    20  section to the official charged with management of the housing standards
    21  department  of  such  municipality,  or  to  an agent duly authorized to
    22  accept service on their behalf,  either  by  personally  delivering  the
    23  notice  of  petition and petition or, in the alternative, sending a copy
    24  thereof to the address designated by the official for receipt of service
    25  or, if no such address is designated, to the headquarters of the depart-
    26  ment, by registered or certified mail, return receipt requested,  and  a
    27  second  copy  by registered or certified or regular first-class mail, no
    28  return receipt requested.
    29    d. Upon non-petitioning tenants. Service shall be made at  least  five
    30  days  before  the time at which the petition is noticed to be heard upon
    31  non-petitioning tenants occupying the dwelling by affixing a copy of the
    32  notice of petition and petition upon a conspicuous part of  the  subject
    33  dwelling  or,  in  the  alternative,  by mailing a copy of the notice of
    34  petition and petition to each dwelling unit not occupied by a  petition-
    35  ing tenant, addressed to "Current Tenant(s)", by registered or certified
    36  mail,  and  a  second  copy by registered or certified or regular first-
    37  class mail, no return receipt requested.
    38    6. [Notice to non-petitioning tenants.  Notice of the proceeding shall
    39  be given to the non-petitioning tenants occupying the dwelling by affix-
    40  ing a copy of the notice of petition and  petition  upon  a  conspicuous
    41  part  of the subject dwelling] Contesting service. Defects in service of
    42  notice to non-parties are not jurisdictional. The court upon  motion  or
    43  sua  sponte  may adjourn the proceeding for five days, or up to ten days
    44  if requested by petitioners, within which time  petitioners  shall  cure
    45  any defects identified by the court.
    46    §  4. Subdivisions 1 and 2 of section 772 of the real property actions
    47  and proceedings law, as amended by chapter 877 of the laws of 1982,  are
    48  amended to read as follows:
    49    1. Allege material facts showing that there exists in such dwelling or
    50  any  part  thereof  one  or more of the following:  a lack of heat or of
    51  running water or of light or electricity or of adequate sewage  disposal
    52  facilities,  or any other condition dangerous to life, health or safety,
    53  which has existed for five days, or an infestation of rodents or  course
    54  of  conduct  by the owner or his agents of harassment, illegal eviction,
    55  retaliation as defined by section two hundred twenty-three-b of the real
    56  property law, interference with the right of tenants to  form,  join  or
        A. 10407                            6

     1  participate in tenants' groups pursuant to section two hundred thirty of
     2  the  real  property law, continued deprivation of services or other acts
     3  dangerous to life, health or safety; or a business practice  of  neglect
     4  as defined in subdivision three of section seven hundred seventy of this
     5  article;  or  the  issuance of an order to the owner of such dwelling by
     6  the commissioner of such housing standards department of the city of New
     7  York pursuant to  the  alternative  enforcement  program  under  section
     8  27-2153  of  the  administrative  code of the city of New York, provided
     9  that such dwelling has not been discharged from the program pursuant  to
    10  such  section  and there has not been a determination that the owner has
    11  substantially complied with such order.
    12    2. If the petitioners shall be tenants occupying  the  dwelling,  they
    13  shall allege the number of petitioners making the petition and that they
    14  constitute one-third or more of the tenants of said dwelling in occupan-
    15  cy  thereof,  or,  in the case of a single residence dwelling, that they
    16  are the occupants of such dwelling.
    17    § 5. Section 774 of the real property actions and proceedings law,  as
    18  added by chapter 909 of the laws of 1965, is amended to read as follows:
    19    §  774.  Trial. 1. Where triable issues of fact are raised, they shall
    20  be tried by the court without a jury at the time when issue  is  joined.
    21  However,  the  court[,  in  its  discretion,]  may  grant  [an] a single
    22  adjournment of such trial [at] upon request of [either]  any  party  who
    23  appears,  if [it determines] the requesting party shows that an adjourn-
    24  ment is necessary [to enable either  of  the  parties]  to  procure  the
    25  necessary witnesses, or upon consent of all the parties who appear. Such
    26  adjournment  shall  not  be for more than five days except by consent of
    27  all the parties who appear.
    28    2. The proceeding shall not be adjourned more than once at the request
    29  of the same party except by consent of all the parties who  appear,  and
    30  such adjournments shall not be for more than five days except by consent
    31  of all the parties who appear.
    32    3.  The  trial must take place each court day whenever the court is in
    33  session until the conclusion of the  trial,  and  accordingly  no  other
    34  cases should be scheduled on the court's calendar for dates prior to the
    35  anticipated  conclusion  of  the  trial,  except  by  consent of all the
    36  parties who appear or during adjournments pursuant to subdivision one or
    37  two of this section.
    38    § 6. Subdivision c of section 775 of the  real  property  actions  and
    39  proceedings  law,  as  amended  by  chapter  877 of the laws of 1982, is
    40  amended and a new subdivision d is added to read as follows:
    41    c. Any tenant or resident of the dwelling has expressly refused  entry
    42  to  the  owner or his agent with access to a portion of the premises for
    43  the purpose of correcting such condition or conditions  after the  owner
    44  or  their  agent  provided  the tenant or resident with no less than one
    45  week written notice of a desire for access, except where such  condition
    46  requires  immediate  access  in  order  to  prevent injury to persons or
    47  damage to property, in which case notice shall be provided by telephone,
    48  email, or by knocking on the tenant or occupant's door at  a  reasonable
    49  time when he or she would be expected to be present.
    50    d.  A tenant's request to reschedule dates of access to a time conven-
    51  ient for the tenant or a household member shall not be deemed an express
    52  refusal for the purposes of this section.
    53    § 7. Section 776 of the real property actions and proceedings law,  as
    54  added  by  chapter  909 of the laws of 1965, subdivision b as amended by
    55  chapter 877 of the laws of 1982, is amended to read as follows:
    56    § 776. Judgment. The court shall render a final judgment either
        A. 10407                            7

     1    a. Dismissing the petition for failure to affirmatively establish  the
     2  allegations  thereof  or because of the affirmative establishment by the
     3  owner or a mortgagee or lienor of record of a defense or defenses speci-
     4  fied in section seven hundred seventy-five of this article; or
     5    b.  Directing  that (1) the rents due on the date of the entry of such
     6  judgment from the petitioning tenants and the rents due on the dates  of
     7  service  of  the  judgment  on all other residential and non-residential
     8  tenants occupying such dwelling from such other tenants, shall be depos-
     9  ited with the administrator appointed by the court, pursuant to  section
    10  seven hundred seventy-eight of this article; (2) any rents to become due
    11  in the future from all tenants occupying such dwelling shall be deposit-
    12  ed  with  such  administrator as they fall due; (3) such deposited rents
    13  shall be used, subject to the court's direction, to the extent necessary
    14  to remedy the condition or conditions or course of  conduct  alleged  in
    15  the petition and (4) upon the completion of such work in accordance with
    16  such  judgment, any remaining surplus shall be turned over to the owner,
    17  together with a complete accounting of the rents deposited and the costs
    18  incurred; and granting such other and further relief as to the court may
    19  seem just and proper. A certified copy of such judgment shall be  served
    20  personally,  by  the  administrator  appointed  by the court pursuant to
    21  section seven hundred seventy-eight of this article, upon each non-peti-
    22  tioning tenant occupying such dwelling and [upon the city of  New  York]
    23  the  housing  standards department by service as provided in subdivision
    24  five of section seven hundred seventy-one of this article.  If  personal
    25  service on any such non-petitioning tenant cannot be made with due dili-
    26  gence, service on such tenant shall be made by affixing a certified copy
    27  of  such judgment on the entrance door of such tenant's apartment, store
    28  or other unit and, in addition, within one day after such  affixing,  by
    29  sending a certified copy thereof by certified or registered mail, return
    30  receipt requested, to such tenant. Any right of the owner of such dwell-
    31  ing  to  collect  such  rent  moneys from any petitioning tenant of such
    32  dwelling on or after the date of entry of such judgment,  and  from  any
    33  non-petitioning  tenant of such dwelling on or after the date of service
    34  of such judgment on such  non-petitioning  tenant  as  herein  provided,
    35  shall  be  void and unenforceable to the extent that such petitioning or
    36  non-petitioning tenant, as the case may be, has  deposited  such  moneys
    37  with  the  administrator  in accordance with the terms of such judgment,
    38  regardless of whether such right of  the  owner  arises  from  a  lease,
    39  contract,  agreement  or  understanding  heretofore or hereafter made or
    40  entered into or arises as a matter of law from the relationship  of  the
    41  parties  or  otherwise.  It  shall  be  a valid defense in any action or
    42  proceeding against any such tenant to recover possession of real proper-
    43  ty for the non-payment of rent or for use or occupation  to  prove  that
    44  the  rent  alleged  to be unpaid was deposited with the administrator in
    45  accordance with the terms of a judgment entered under this section.
    46    c. Directing the owner to provide written notice to the court,  court-
    47  appointed  administrator,  housing standards department, and petitioning
    48  tenants within ten days of entering into  a  contract  of  sale  with  a
    49  prospective purchaser of the premises.
    50    d.  Neither the owner nor a court-appointed administrator shall, with-
    51  out good cause, serve a notice to quit upon any tenant or  commence  any
    52  action  to  recover  real  property  or  summary  proceeding  to recover
    53  possession of real property, or  substantially  alter  the  terms  of  a
    54  tenant's  lease,  including,  but not limited to, refusing to continue a
    55  tenancy of the tenant upon expiration of the tenant's  lease,  to  renew
    56  the  lease  or  offer  a  new lease, or offering a new lease with a rent
        A. 10407                            8

     1  increase equal to or greater than five percent above the current  lease,
     2  within one year of a judgment pursuant to this section; provided, howev-
     3  er,  that  an  owner shall not be required under this section to offer a
     4  new lease or a lease renewal for a term greater than one year.
     5    §  8.  Section 777 of the real property actions and proceedings law is
     6  REPEALED.
     7    § 9. Section 778 of the real property actions and proceedings law,  as
     8  amended  by  chapter  963  of  the laws of 1974, subdivisions 1 and 6 as
     9  amended and subdivision 11 as added by chapter 455 of the laws of  2013,
    10  the  opening  paragraph of subdivision 1 as amended by chapter 48 of the
    11  laws of 2015, subdivision 3 as amended by chapter 305  of  the  laws  of
    12  1978,  subdivision 4 as added by chapter 521 of the laws of 1979, subdi-
    13  vision 5 as added by chapter 769 of the laws of 1981, subdivision  7  as
    14  added  by chapter 737 of the laws of 1985, subdivisions 8 and 9 as added
    15  by chapter 95 of the laws of 1989, subdivision 10 as amended by  chapter
    16  40  of  the  laws of 2001, paragraph (a) of subdivision 10 as amended by
    17  chapter 387 of the laws of 2003 and paragraph (b) of subdivision  10  as
    18  amended  by  chapter  265  of  the  laws  of 2009, is amended to read as
    19  follows:
    20    § 778. Appointment of administrator. 1. The court  is  authorized  and
    21  empowered,  in implementation of a judgment rendered pursuant to section
    22  seven hundred seventy-six [or seven hundred seventy-seven] of this arti-
    23  cle, to appoint a person other than the owner, a mortgagee or lienor, to
    24  receive and administer the rent moneys or security deposited  with  such
    25  owner, mortgagee or lienor, subject to the court's direction.  The court
    26  may  appoint the [commissioner of the department of the city of New York
    27  charged with enforcement of the housing maintenance code of  such  city]
    28  official  charged  with managing the housing standards department or the
    29  commissioner's designee as such administrator, provided that the commis-
    30  sioner or the commissioner's designee shall consent, in writing, to such
    31  appointment. Any administrator is authorized and empowered in accordance
    32  with the direction of the court, to order the necessary materials, labor
    33  and services to remove or remedy the conditions specified in  the  judg-
    34  ment,  and  to  make  disbursements  in  payment thereof; and to demand,
    35  collect and receive the rents from the tenants;  and  to  institute  all
    36  necessary  legal  proceedings  including,  but  not  limited to, summary
    37  proceedings for the removal of any tenant or tenants;  and  to  rent  or
    38  lease  for  terms  not  exceeding three years any part of said premises,
    39  however, the court may direct the administrator to rent or lease commer-
    40  cial parts of said premises for terms that the  court  may  approve.  In
    41  addition,  such  administrator is authorized and empowered in accordance
    42  with the direction of the court to accept and repay such moneys  as  may
    43  be received from the housing standards department [charged with enforce-
    44  ment  of  the  housing maintenance code of the city of New York] for the
    45  purpose of managing the premises, replacing or  substantially  rehabili-
    46  tating  systems  or making other repairs or capital improvements author-
    47  ized by the court. All moneys expended by the department pursuant to the
    48  foregoing shall constitute a debt recoverable from the owner and a  lien
    49  upon  the building and lot, and upon the rents and other income thereof.
    50  Such lien shall be enforced in accordance with the provisions of article
    51  eight of subchapter five of the housing maintenance code of the city  of
    52  New  York, or in accordance with any applicable provisions for all other
    53  counties.   Such administrator,  shall,  upon  completion  of  the  work
    54  prescribed  in  such  judgment, file with the court a full accounting of
    55  all receipts and expenditures for such work.  Such  administrator  shall
        A. 10407                            9

     1  dispose  of the rents and other monies deposited with such administrator
     2  according to the following order of priority:
     3    (a)  Payment  in  full  for all of the work specified in the judgment,
     4  fuel bills, fire and liability insurance, and bills for ordinary repairs
     5  and maintenance, including correcting conditions  in  violation  of  the
     6  law.  Until all of the work specified in the judgment has been completed
     7  and payment for such work has been made, no other disbursements shall be
     8  permitted[, except for fuel bills, fire  and  liability  insurance,  and
     9  bills for ordinary repairs and maintenance].
    10    (b)  Payment  of a reasonable amount for the services of such adminis-
    11  trator, including reimbursement of  any  legal  fees  incurred  by  such
    12  administrator in connection with management of the building.
    13    (c)  Payment  of  outstanding  real property tax liens claimed by [the
    14  city of New York] any municipality or county in which  the  dwelling  is
    15  located.
    16    (d)  Payment  of outstanding emergency repair liens filed and recorded
    17  by [the city of New York] any municipality or county in which the dwell-
    18  ing is located and outstanding liens filed and recorded  by  [the  city]
    19  such municipality or county pursuant to this section.
    20    (e)  Abatements  for  all tenants of up to twenty-five percent of rent
    21  for the period during which the administrator is appointed.  Nothing  in
    22  this  paragraph  shall  prevent any tenant from prosecuting a claim in a
    23  court of competent jurisdiction for breach of warranty of  habitability;
    24  however,  any  resulting  relief  from such claim will be reduced by the
    25  amount of the abatement awarded herein.
    26    (f) Payment to the owner of any surplus remaining  after  payments  of
    27  paragraphs (a) through [(d)] (e) of this subdivision have been made.
    28    2.  Unless the administrator is the [city of New York] municipality or
    29  county, the court may allow from the rent moneys or security on  deposit
    30  a reasonable amount for services of such administrator.
    31    3. Unless such administrator is the [city of New York] municipality or
    32  county,  the administrator so appointed shall furnish a bond, the amount
    33  and form of which shall be approved by the court. In its discretion  and
    34  for  good  cause  shown, the court may dispense with the necessity for a
    35  bond. The cost of a required bond shall  be  paid  from  the  moneys  so
    36  deposited.
    37    4. Such administrator shall file a transcript of the judgment appoint-
    38  ing  [him] them with the county clerk within fifteen days of [his] their
    39  appointment.
    40    5. The duties of such administrator  shall  not  be  affected  by  the
    41  appointment  of  a  receiver in an action to foreclose a mortgage on the
    42  premises, except that the rights of the owner, including  the  right  to
    43  any  surplus,  pursuant  to  paragraph  (e)  of  subdivision one of this
    44  section, shall pass to the receiver. The court in which  the  action  to
    45  foreclose  a mortgage on the premises is pending may appoint such admin-
    46  istrator to serve as receiver in that action in addition to [his]  their
    47  duties as administrator pursuant to this article.
    48    6.  Such  administrator  shall  be  liable only in his or her official
    49  capacity for injury to persons and property by reason of  conditions  of
    50  the  premises in a case where an owner would have been liable; he or she
    51  shall not have any liability in his or her personal capacity.   Appoint-
    52  ment  of  an  administrator  pursuant to subdivision one of this section
    53  shall not relieve an owner of liability for injury to persons and  prop-
    54  erty in such case.
    55    7. No [city] municipality or county specified in section seven hundred
    56  sixty-nine  of this article shall be liable to any party, including such
        A. 10407                           10

     1  administrator or the owner, for injury to persons or property by  reason
     2  of  conditions of the premises or the acts or omissions of such adminis-
     3  trator, except that when the [city of New York] municipality  or  county
     4  is  appointed administrator, liability shall be determined in accordance
     5  with subdivision six of this section.
     6    8. The commissioner of the department of the city of New York  charged
     7  with  the enforcement of the housing maintenance code of such city shall
     8  promulgate rules and regulations regarding criteria for the selection of
     9  administrators to be appointed pursuant to this section and shall estab-
    10  lish and maintain a list of organizations and persons approved  by  such
    11  department.    If  the dwelling is located outside the city of New York,
    12  the official charged with management of the housing standards department
    13  shall promulgate  rules  and  regulations  regarding  criteria  for  the
    14  selection of administrators to be appointed pursuant to this section and
    15  may  establish and maintain a list of organizations and persons approved
    16  by such department. Unless the administrator is the [city of  New  York]
    17  municipality  or county, any person appointed as an administrator within
    18  such city shall be selected from among  the  organizations  and  persons
    19  approved  as  administrators pursuant to such list, any organizations or
    20  individuals submitted to the court for consideration by the  petitioning
    21  tenants pursuant to paragraph (a) of this subdivision, and the petition-
    22  ing  tenants  deemed to have sufficient knowledge and expertise to serve
    23  as the administrator.
    24    (a) Where an article seven-A proceeding is initiated by  tenants,  the
    25  petitioning  tenants  shall have the right to submit to the court a list
    26  of three preferred organizations and/or individuals  selected  from  the
    27  approved  list  of  administrators provided that, if the tenants find no
    28  organization or individual on the list to be suitable, the  tenants  may
    29  nominate  organizations  or  individuals  outside of the list, including
    30  from among the petitioning tenants, along with a summary of  each  nomi-
    31  nee's experience and credentials, for consideration by the court.
    32    (b)  Where  petitioning tenants have submitted preferred organizations
    33  and/or individuals selected from the approved  list  of  administrators,
    34  the  court  must  appoint  an  administrator  from among the petitioning
    35  tenants' preferred approved administrators  absent  good  cause  to  the
    36  contrary.
    37    (c)  Where  petitioning tenants have not submitted preferred organiza-
    38  tions or individuals or where the court declines to appoint an  adminis-
    39  trator  from  among the petitioning tenants' preferred administrators or
    40  nominees, priority of  appointment  shall  be  given  to  not-for-profit
    41  corporations formed for the purpose of preserving or developing afforda-
    42  ble  housing  whenever  there  is no eligible for-profit organization or
    43  individual that is clearly more competent.
    44    9. (a) Such administrator shall, within thirty  days  of  appointment,
    45  file  with  the court a plan for the provision of essential services and
    46  for the correction of such other hazardous conditions as  may  exist  at
    47  the  premises, specifying dates by which such services shall be provided
    48  and such conditions corrected. If such administrator cannot provide such
    49  services and correct such conditions by the dates specified in the plan,
    50  [he] they shall be required to file with the court an amendment  to  the
    51  plan  setting  forth the reasons why such services and corrections could
    52  not be provided by such date and specifying new dates for such  services
    53  and  corrections.  Such  plan  and  any amendments to such plan shall be
    54  provided to the tenants by first-class or registered or  certified  mail
    55  [or]  and by conspicuously posting in a common area of the building, and
    56  to the owner of record by first-class or registered or certified mail.
        A. 10407                           11

     1    (b) Where an organization has been  appointed  as  the  administrator,
     2  such  administrator  shall  promptly  delegate the responsibilities to a
     3  single individual and inform the court of such designation within thirty
     4  days.  Such person shall remain accountable to the court as the adminis-
     5  trator's representative until the administrator's discharge.
     6    10. (a) Where a building for which an administrator has been appointed
     7  pursuant  to  this  section  is  transferred  to a new owner at any time
     8  following the appointment of such administrator,  whether  or  not  such
     9  building  remains  subject  to such administrator, the housing standards
    10  department [charged with enforcement of the housing maintenance code  of
    11  the  city  of  New York] may enter into a regulatory agreement with such
    12  new owner. Such regulatory agreement may impose such  terms  and  condi-
    13  tions  upon the operation and repair of such building as such department
    14  may determine.  Notwithstanding any general, special or local law to the
    15  contrary, such regulatory agreement may provide that, upon  transfer  of
    16  such  building  to  the  new owner, any outstanding liens filed with and
    17  recorded by the city pursuant to this section  or  pursuant  to  section
    18  three  hundred  nine  of  the multiple dwelling law shall immediately be
    19  reduced to zero, provided that such regulatory agreement shall  require,
    20  in  consideration for such reduction to zero, the provision of adequate,
    21  safe and sanitary housing accommodations for persons of low income for a
    22  period of not less  than  [thirty]  ninety-nine  years.  Any  regulatory
    23  agreement  pursuant to this subdivision shall include a certification by
    24  the new owner of the real property that  (i)  the  prior  owner  has  no
    25  direct  or  indirect  interest in such real property, and (ii) the prior
    26  owner has no direct or indirect interest in such new owner.
    27    (b) On or about June thirtieth, two thousand [nine] twenty-two and for
    28  every three years thereafter for as long as the program continues to  be
    29  in  effect,  the  [city] municipality or county shall submit a report to
    30  the governor, the temporary president of the senate, the speaker of  the
    31  assembly,  the  minority leader of the senate and the minority leader of
    32  the assembly. Each report following the initial  report  shall  describe
    33  the program activities carried out during the three prior calendar years
    34  pursuant to this subdivision.
    35    11.  (a)  The  court  may only discharge an administrator if the owner
    36  makes a prima facie showing that the conditions and  course  of  conduct
    37  which required the appointment of the article seven-A administrator have
    38  been  cured  and  that  the  owner has a detailed plan for the continued
    39  maintenance and operation of the dwelling, the owner has paid in full or
    40  entered into a payment agreement to pay in  full  all  outstanding  real
    41  property tax liens claimed by [the city of New York] any municipality or
    42  county  in  which  the  dwelling  is  located, all outstanding emergency
    43  repair liens filed and recorded by [the city of New  York]  any  munici-
    44  pality  or  county  in  which  the  dwelling is located, all outstanding
    45  charges and liens assessed in connection to the alternative  enforcement
    46  program  authorized by section 27-2153 of the administrative code of the
    47  city of New York, and outstanding liens filed and recorded by [the city]
    48  such municipality or county pursuant to this section. The provisions  of
    49  this  subdivision  shall  not apply to buildings transferred pursuant to
    50  subdivision ten of this section.
    51    (b) A detailed plan for the continued maintenance of the operations of
    52  the dwelling shall include sufficient submissions for the court to eval-
    53  uate the owner's willingness and  ability  to  make  repairs,  including
    54  specifying the repairs they will undertake, an estimated budget, a time-
    55  table  for  doing so, identifying the source of funds for those expendi-
    56  tures, and balance sheets or income statements.
        A. 10407                           12

     1    (c) In assessing an owner's fitness for the continued maintenance  and
     2  operation  of  the  dwelling, the court shall consider the conditions of
     3  other properties owned or managed by the owner and shall  not  discharge
     4  the article seven-A administrator where it is found that the owner oper-
     5  ates  a  separate property or separate properties at a standard which is
     6  contrary to public health and safety. The court may rely on the visually
     7  displayed or the printed computerized violation files of the  department
     8  responsible  for  maintaining such files and all other computerized data
     9  as shall be relevant to the enforcement of state and local laws for  the
    10  establishment and maintenance of housing standards.
    11    12.  (a)  Where  a judgment has been entered pursuant to section seven
    12  hundred seventy-eight of this article, the municipality must, within six
    13  months of such a judgment, certify a finding pursuant to  paragraph  (c)
    14  of subdivision one of section nineteen hundred seventy-one of this chap-
    15  ter.
    16    (b)  Where  a  finding  of abandonment has been certified, the munici-
    17  pality may commence a proceeding pursuant to  section  nineteen  hundred
    18  seventy-three  of  this  chapter,  or, in the alternative, authorize the
    19  court-appointed administrator  to  sell  the  property  to  a  purchaser
    20  approved  by  the court pursuant to section seven hundred eighty-four of
    21  this article.
    22    (c) Notice of such authorization must be issued to all owners, mortga-
    23  gors, lienors and lessees of record pursuant to section nineteen hundred
    24  seventy-two of this chapter, as well as to all tenants  of  the  subject
    25  building.
    26    (d)  Any owner, mortgagor, lienor or lessee may challenge the authori-
    27  zation of sale, provided that the burden of proof is on the  challenging
    28  party  to  demonstrate  its  capacity  to resume control of the premises
    29  pursuant to subdivision eleven of this section.
    30    § 10. Section 779 of the real property actions and proceedings law, as
    31  amended by chapter 95 of the  laws  of  1989,  is  amended  to  read  as
    32  follows:
    33    §  779.  Presentation  or  settlement  of  accounts.   The court shall
    34  require the keeping of  written  accounts  itemizing  the  receipts  and
    35  expenditures  under  an  order  issued pursuant to section seven hundred
    36  seventy-six [or seven hundred  seventy-seven]  of  this  article,  which
    37  shall be open to inspection by the owner, any mortgagee or lienor or any
    38  other  person  having  an  interest  in  such  receipts  or expenditures
    39  provided, however, notwithstanding any other provision  of  law  to  the
    40  contrary,  such  information as may be in the possession of the [city of
    41  New York with the department charged with the enforcement of the housing
    42  maintenance code of such city] housing  standards  department  shall  be
    43  available  from such department for inspection only by the owner, tenant
    44  of such property, or person having a recorded interest in the  property.
    45  Upon motion of the court or the administrator or of the owner, any mort-
    46  gagee  or  lienor  of record or of any person having an interest, or the
    47  petitioning tenants, the court may require a presentation or  settlement
    48  of  the  accounts with respect thereto. Notice of a motion for presenta-
    49  tion or settlement of such accounts shall be served on  the  owner,  any
    50  mortgagee  or  other lienor of record who appeared in the proceeding and
    51  [any person having an interest in such  receipts  or  expenditures]  the
    52  petitioning tenants.
    53    § 11. Section 782 of the real property actions and proceedings law, as
    54  amended  by  chapter  877  of  the  laws  of 1982, is amended to read as
    55  follows:
        A. 10407                           13

     1    § 782. "Dwelling" defined.  As used in this article, the term  "dwell-
     2  ing"  shall  mean  any building or structure or portion thereof which is
     3  occupied in whole or in part as the home, residence or sleeping place of
     4  one or more human beings and is either rented, leased, let or hired out,
     5  to  be  occupied, or is occupied as the residence or home of [three] one
     6  or more families [living independently of each other]; or is  a  garden-
     7  type maisonette dwelling project as defined in the multiple dwelling law
     8  or  other  similar  dwellings  which  in their aggregate are arranged or
     9  designed to provide three or more  apartments,  have  common  facilities
    10  such  as  but  not limited to a sewer line, water main, or heating plant
    11  and are operated as a unit under common ownership, notwithstanding  that
    12  certificates of occupancy were issued for portions thereof as one or two
    13  family  dwellings  or  that the dwellings are not a multiple dwelling as
    14  defined in the multiple dwelling law.   "Dwelling"  shall  also  include
    15  premises zoned for mixed residential and commercial use, provided that a
    16  portion  of  such premises are, in fact, occupied by one or more tenants
    17  for residential purposes.
    18    § 12. Section 783 of the real property actions and proceedings law, as
    19  added by chapter 95 of the laws of 1989, is amended to read as follows:
    20    § 783. Defense of warranty of  habitability  inapplicable.    Notwith-
    21  standing  any  other provision of law, in any proceeding for the payment
    22  of rent commenced by an administrator appointed pursuant to  this  arti-
    23  cle,  the  provisions  of  section two hundred thirty-five-b of the real
    24  property law pertaining to the warranty of habitability shall not  be  a
    25  defense to such a proceeding for rent which accrues during the period of
    26  time  that a judgment or an order pursuant to this article is in effect,
    27  unless the court determines that the conditions upon which such  defense
    28  is based were caused by the failure of such administrator to perform his
    29  duties  in  a  reasonable  manner.  The burden of showing performance of
    30  duties in a reasonable manner shall be made by the administrator in such
    31  summary proceeding.
    32    § 13. The real property actions and  proceedings  law  is  amended  by
    33  adding a new section 784 to read as follows:
    34    §  784.  Sale  of  premises;  court review. Prior to entering into any
    35  contract of sale of the premises subject to judgment, an owner, adminis-
    36  trator, mortgagor, or lienor shall submit the proposed contract of  sale
    37  for review before the court.
    38    §  14.  The  real  property  actions and proceedings law is amended by
    39  adding a new section 785 to read as follows:
    40    § 785. Waiver void. Any provision of a lease or other agreement where-
    41  by any provision of this article for the benefit of a  tenant,  resident
    42  or  occupant  of  a  dwelling  is waived, shall be deemed against public
    43  policy and shall be void.
    44    § 15. Paragraph 5 of subdivision (a) of section 110 of  the  New  York
    45  city  civil court act, as amended by chapter 849 of the laws of 1977, is
    46  amended to read as follows:
    47    (5) Actions and proceedings under article seven-A of the real property
    48  actions and proceedings law, and  all  summary  proceedings  to  recover
    49  possession  of  residential premises to remove tenants therefrom, and to
    50  render judgment for rent due, including without limitation  those  cases
    51  in  which  a tenant alleges a defense under section seven hundred fifty-
    52  five of the real property actions and proceedings law, relating to  stay
    53  or  proceedings or action for rent upon failure to make repairs, section
    54  three hundred two-a of the multiple dwelling law, relating to the abate-
    55  ment of rent in case of certain violations of section D26-41.21 of  such
    56  housing maintenance code. Where one or multiple parts within the housing
        A. 10407                           14

     1  part  have been designated to hear trials, actions and proceedings under
     2  article seven-A of the real property actions and proceedings  law,  such
     3  proceedings  shall  be  held before those trial parts and not before the
     4  part within the housing part.
     5    §  16.  Subdivision  (e)  of section 202 of chapter 570 of the laws of
     6  1909, relating to the establishment of the city  court  of  Buffalo,  as
     7  added by chapter 516 of the laws of 1978, is amended to read as follows:
     8    (e)  [All]  Actions  and proceedings under article seven-A of the real
     9  property actions and proceedings law, and  all  summary  proceedings  to
    10  recover  possession of residential premises to remove tenants therefrom,
    11  and to render judgment for rent due, in which a tenant alleges a defense
    12  under section seven hundred fifty-five of the real property actions  and
    13  proceedings law, relating to stay or proceedings or action for rent upon
    14  failure  to  make  repairs,  section three hundred two-a of the multiple
    15  dwelling law, relating to the abatement  of  rent  in  case  of  certain
    16  violations  of  any housing codes, and section two hundred thirty-five-b
    17  of the real property law, relating to  a  landlord's  duty  to  maintain
    18  habitable premises, or any other law involving housing code enforcement.
    19  The  administrative  judge  of  Buffalo  city  court may, in [his] their
    20  discretion, empower the housing part to hear all summary proceedings  to
    21  recover  possession  of  residential  premises,  regardless of whether a
    22  tenant alleges a defense, at any time when [he] the administrative judge
    23  feels that  housing  part  is  capable  of  handling  all  such  summary
    24  proceedings.
    25    §  17. Subdivision (e) of section 3 of chapter 464 of the laws of 2021
    26  relating to enacting the Rochester housing court act, is amended to read
    27  as follows:
    28    (e) [All] Actions and proceedings under article seven-A  of  the  real
    29  property  actions  and  proceedings  law, and all summary proceedings to
    30  recover possession of residential premises to remove tenants  therefrom,
    31  and to render judgment for rent due, in which a tenant alleges a defense
    32  under  section seven hundred fifty-five of the real property actions and
    33  proceedings law, relating to stay or proceedings or action for rent upon
    34  failure to make repairs, section three hundred five-a  of  the  multiple
    35  residence  law,  relating  to  the  abatement of rent in case of certain
    36  violations of any housing codes, and section two  hundred  thirty-five-b
    37  of  the  real  property  law,  relating to a landlord's duty to maintain
    38  habitable premises, or any other law involving housing code enforcement.
    39  The administrative judge of Rochester city court  may,  in  his  or  her
    40  discretion,  empower the housing part to hear all summary proceedings to
    41  recover possession of residential  premises,  regardless  of  whether  a
    42  tenant  alleges a defense, at any time when he or she feels that housing
    43  part is capable of handling all such summary proceedings.
    44    § 18. This act shall take effect on  the  one  hundred  eightieth  day
    45  after it shall have become a law; provided, however, that the amendments
    46  to  subdivision  10  of  section  778  of  the real property actions and
    47  proceedings law made by section nine of this act shall  not  affect  the
    48  repeal of such subdivision and shall be deemed repealed therewith.