Bill Text: NY A10407 | 2021-2022 | General Assembly | Introduced
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
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 New5York 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. LBD15622-01-2A. 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-9er of the department of the city of New York charged with enforcement of10the housing maintenance code of such city, or in the counties of Nassau,11Suffolk, 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-33ment of the city of New York charged with enforcement of the housing34maintenance 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; orA. 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 petition21may 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 the42person set forth as the owner on the last recorded deed to the rented43property and]; 44 b. upon every mortgagee and lienor of record[, and upon the city of45New York, at least five days before the time at which the petition is46noticed 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 thisA. 10407 4 1 section. [Service upon the city of New York shall be made by personal2delivery to the commissioner of the city department charged with3enforcement of the housing maintenance code of such city, or to an agent4duly authorized to accept such service on his behalf. If service cannot5with due diligence be made within the city upon an owner, mortgagee or6lienor of record in such manner, it shall be made:7(1) upon the owner last registered with the department of housing8preservation and development pursuant to article forty-one of chapter9twenty-six of the administrative code of the city of New York and in10Nassau, Suffolk, Rockland and Westchester counties upon the person set11forth as the owner on the last recorded deed to the rented property by12delivering to and leaving personally with the person designated pursuant13to article forty-one of chapter twenty-six of such code as managing14agent of the subject dwelling, and in Nassau, Suffolk, Rockland and15Westchester counties upon the person designated as the managing agent of16the rented property if one shall have been designated, a copy of the17notice of petition and petition;18(2) upon a mortgagee or lienor of record, by registered or certified19mail, return receipt requested, at the address set forth in the recorded20mortgage or lien.21b. If such personal service upon the person designated pursuant to22article forty-one of chapter twenty-six of the administrative code of23the city of New York as managing agent of the subject dwelling and in24Nassau, Suffolk, Rockland and Westchester counties upon the person set25forth as the owner on the last recorded deed to the rented property26cannot be made with due diligence, service upon such last registered27owner shall be made by affixing a copy of the notice and petition upon a28conspicuous part of the subject dwelling; and in addition, within two29days after such affixing, by sending a copy thereof by registered or30certified mail, return receipt requested, to the owner at the last31address registered by him with the department of housing preservation32and development or, in the absence of such registration, to the address33set 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 shall39be given to the non-petitioning tenants occupying the dwelling by affix-40ing a copy of the notice of petition and petition upon a conspicuous41part 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 orA. 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 eitherA. 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 rentA. 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 York27charged 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-44ment 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 shallA. 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, and9bills 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 [the14city 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 suchA. 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 of11the 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 of41New York with the department charged with the enforcement of the housing42maintenance 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 housingA. 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.
