Bill Text: NY S05465 | 2013-2014 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Authorizes the commissioner of housing preservation and development for the city of New York to bring a special proceeding for appointment of an administrator for distressed property; provides for owner liability for costs of operating property and costs of the administrator after the administrator takes over management of the property.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-06-21 - SUBSTITUTED BY A7834B [S05465 Detail]

Download: New_York-2013-S05465-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5465
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                     May 16, 2013
                                      ___________
       Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
         printed to be committed to the Committee on Housing, Construction  and
         Community Development
       AN  ACT  to  amend  the  real  property  actions and proceedings law, in
         relation to grounds for bringing a special proceeding, and payment  to
         and  liability  of  administrators  appointed  pursuant  to  a special
         proceeding
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Subdivision 1 of section 770 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.  One-third  or  more of the tenants occupying a dwelling located in
    5  the city of New York or the commissioner of the department of  the  city
    6  of  New York charged with enforcement of the housing maintenance code of
    7  such city, or in the counties of Nassau, Suffolk, Rockland and Westches-
    8  ter may maintain a special proceeding as provided in this article,  upon
    9  the  ground that there exists in such dwellings or in any part thereof a
   10  lack of heat or of running water or of light or  of  electricity  or  of
   11  adequate sewage disposal facilities, or any other condition dangerous to
   12  life,  health or safety, which has existed for five days, or an infesta-
   13  tion by rodents, or any combination of such  conditions;  or  course  of
   14  conduct  by the owner or [his] THE OWNER'S agents of harassment, illegal
   15  eviction, continued deprivation of services or other acts  dangerous  to
   16  life, health or safety; OR THE ISSUANCE OF AN ORDER TO THE OWNER OF SUCH
   17  DWELLING  BY THE COMMISSIONER OF SUCH DEPARTMENT OF THE CITY OF NEW YORK
   18  PURSUANT TO THE ALTERNATIVE ENFORCEMENT PROGRAM UNDER SECTION 27-2153 OF
   19  THE ADMINISTRATIVE CODE OF THE CITY OF  NEW  YORK,  PROVIDED  THAT  SUCH
   20  DWELLING  HAS  NOT  BEEN  DISCHARGED  FROM  THE PROGRAM PURSUANT TO SUCH
   21  SECTION AND THERE HAS NOT  BEEN  A  DETERMINATION  THAT  THE  OWNER  HAS
   22  SUBSTANTIALLY  COMPLIED  WITH SUCH ORDER; OR THE EXISTENCE OF ARREARS OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10829-01-3
       S. 5465                             2
    1  ANY MUNICIPAL CHARGE OR LIEN DUE AND OWING TO THE CITY OF  NEW  YORK  ON
    2  SUCH  DWELLING,  PROVIDED, HOWEVER THAT THE EXISTENCE OF SUCH ARREARS OR
    3  LIEN SHALL FORM THE GROUNDS FOR SUCH PROCEEDING ONLY WHEN SUCH  PROCEED-
    4  ING  HAS  BEEN  COMMENCED  BY THE COMMISSIONER OF SUCH DEPARTMENT OF THE
    5  CITY OF NEW YORK.
    6    S 2. Subdivision 1 of section 778 of the  real  property  actions  and
    7  proceedings  law,  as  amended  by  chapter  95  of the laws of 1989, is
    8  amended to read as follows:
    9    1. The court is authorized and empowered, in implementation of a judg-
   10  ment rendered pursuant to section seven  hundred  seventy-six  or  seven
   11  hundred  seventy-seven  of  this article, to appoint a person other than
   12  the owner, a mortgagee or lienor, to receive  and  administer  the  rent
   13  moneys or security deposited with [him] SUCH OWNER, MORTGAGEE OR LIENOR,
   14  subject to the court's direction. The court may appoint the commissioner
   15  of  the  department  of the city of New York charged with enforcement of
   16  the housing maintenance code of such city or  [his]  THE  COMMISSIONER'S
   17  designee  as  such administrator, provided that [he] THE COMMISSIONER OR
   18  THE COMMISSIONER'S DESIGNEE shall consent, in writing, to such  appoint-
   19  ment.  Any  administrator is authorized and empowered in accordance with
   20  the direction of the court, to order the necessary materials, labor  and
   21  services  to  remove or remedy the conditions specified in the judgment,
   22  and to make disbursements in payment thereof; and to demand, collect and
   23  receive the rents from the tenants; and to institute all necessary legal
   24  proceedings including, but not limited to, summary proceedings  for  the
   25  removal  of  any  tenant  or tenants; and to rent or lease for terms not
   26  exceeding three years ALL OR any part of  said  premises,  however,  the
   27  court may [direct] AUTHORIZE the administrator to rent or lease [commer-
   28  cial  parts]  ALL  OR ANY PART of said premises for terms that the court
   29  may approve. In addition, such administrator is authorized and empowered
   30  in accordance with the direction of the court to accept and  repay  such
   31  moneys  as  may be received from the department charged with enforcement
   32  of the housing maintenance code of the city of New York for the  purpose
   33  of  replacing  or  substantially  rehabilitating systems or making other
   34  repairs or capital improvements authorized  by  the  court.  All  moneys
   35  expended  by the department pursuant to the foregoing shall constitute a
   36  debt recoverable from the owner and a lien upon the  building  and  lot,
   37  and upon the rents and other income thereof. Such lien shall be enforced
   38  in accordance with the provisions of article eight of subchapter five of
   39  the  housing  maintenance  code  of the city of New York.  SUCH LIEN, IN
   40  ADDITION TO ANY OTHER OUTSTANDING MUNICIPAL CHARGE OR LIEN ON SUCH PREM-
   41  ISES, SHALL BE SATISFIED IN FULL BY SUCH OWNER AS  A  CONDITION  OF  THE
   42  COURT  GRANTING  DISCHARGE  OF  THE  ADMINISTRATOR.  Such administrator,
   43  shall, upon completion of the work prescribed  in  such  judgment,  file
   44  with  the  court  a full accounting of all receipts and expenditures for
   45  such work. Such administrator shall  dispose  of  the  rents  and  other
   46  monies  deposited with [him] SUCH ADMINISTRATOR according to the follow-
   47  ing order of priority:
   48    (a) Payment in full for all of the work  specified  in  the  judgment.
   49  Until  all  of the work specified in the judgment has been completed and
   50  payment for such work has been made, no  other  disbursements  shall  be
   51  permitted,  except  for  fuel  bills,  fire and liability insurance, and
   52  bills for ordinary repairs and maintenance.
   53    (b) Payment of a reasonable amount for the services of  such  adminis-
   54  trator,  INCLUDING  REIMBURSEMENT  OF  ANY  LEGAL  FEES INCURRED BY SUCH
   55  ADMINISTRATOR IN CONNECTION WITH MANAGEMENT OF THE BUILDING.
       S. 5465                             3
    1    (c) Payment of outstanding real property tax liens claimed by the city
    2  of New York.
    3    (d)  Payment  of outstanding emergency repair liens filed and recorded
    4  by the city of New York and outstanding liens filed and recorded by  the
    5  city pursuant to this section.
    6    (e)  Payment  to  the owner of any surplus remaining after payments of
    7  paragraphs (a) through (d) of this subdivision have been made.
    8    S 3. Subdivision 6 of section 778 of the  real  property  actions  and
    9  proceedings law, as added by chapter 877 of the laws of 1982, is amended
   10  to read as follows:
   11    6.  Such  administrator  shall  be  liable only in his OR HER official
   12  capacity for injury to persons and property by reason of  conditions  of
   13  the  premises in a case where an owner would have been liable; he OR SHE
   14  shall not have any liability in his OR HER personal  capacity.  APPOINT-
   15  MENT  OF  AN  ADMINISTRATOR  PURSUANT TO SUBDIVISION ONE OF THIS SECTION
   16  SHALL NOT RELIEVE AN OWNER OF LIABILITY FOR INJURY TO PERSONS AND  PROP-
   17  ERTY IN SUCH CASE.
   18    S 4. This act shall take effect immediately.
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