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A08712 Summary:

BILL NOA08712B
 
SAME ASNo Same As
 
SPONSORRosenthal
 
COSPNSR
 
MLTSPNSR
 
Amd §235-a, RP L; amd §§33 & 116, Pub Serv L
 
Prohibits utility service terminations in multiple dwellings; authorizes utility companies or municipalities to commence an action against the owner of the premises affected to seek the appointment of a receiver of rents or payments for use and occupancy or common charges.
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A08712 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8712--B
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 2, 2025
                                       ___________
 
        Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
          Committee on Corporations, Authorities and Commissions --  recommitted
          to  the  Committee  on  Corporations,  Authorities  and Commissions in
          accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- again reported from said  committee  with  amendments,  ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend  the real property law and the public service law, in
          relation to  prohibiting  utility  service  terminations  in  multiple
          dwellings
 
          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 235-a of the real property law, as
     2  amended by chapter 143 of the laws  of  2020,  is  amended  to  read  as
     3  follows:
     4    1.  In  any  case  in which a residential tenant shall lawfully make a
     5  payment to a utility company pursuant to  the  provisions  of  [sections
     6  thirty-three,]  section  thirty-four  [and  one  hundred sixteen] of the
     7  public service law, or to a utility company as  defined  in  subdivision
     8  twenty-three of section two of the public service law, public authority,
     9  water-works  corporation,  as  defined  in  subdivision  twenty-seven of
    10  section two of the public service law, or  municipal  water  system,  as
    11  prescribed in section eighty-nine-l of the public service law, for water
    12  service which a landlord is responsible for but has failed or refused to
    13  provide  payment  therefor,  such  payment  shall be deductible from any
    14  future payment of rent.
    15    § 2. Section 33 of the public service law, as added by chapter 713  of
    16  the  laws of 1981, paragraphs (c) and (d) of subdivision 1 as amended by
    17  chapter 195 of the laws of 2010, is amended to read as follows:
    18    § 33. [Discontinuance  of  residential  utility  service  to  multiple
    19  dwellings]  Action for receivership of rents and common charges on resi-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13069-06-6

        A. 8712--B                          2
 
     1  dential utility service to multiple dwellings.  1.  Notwithstanding  any
     2  other  provisions  of law, no public utility company, including the Long
     3  Island power authority, or municipality shall discontinue gas,  electric
     4  or  steam  service  to  an  entire  multiple dwelling (as defined in the
     5  multiple dwelling law or the multiple residence law) located anywhere in
     6  this state for nonpayment of bills rendered for service [unless such]. A
     7  public utility company or municipality may commence  an  action  against
     8  the owner of the premises affected seeking the appointment of a receiver
     9  of rents or payments for use and occupancy or common charges, as defined
    10  in section three hundred thirty-nine-e of the real property law, against
    11  such  multiple  dwelling for the amount of such utility bills. A utility
    12  shall have given fifteen days written notice  of  its  intention  so  to
    13  [discontinue] seek such appointment of a receiver as follows:
    14    (a)  Such  notice shall be served personally on the owner of the prem-
    15  ises affected, or in lieu thereof, to the person, firm,  or  corporation
    16  to whom or which the last preceding bill has been rendered and from whom
    17  or  which  the  utility has received payment therefor, and to the super-
    18  intendent or  other  person  in  charge  of  the  building  or  premises
    19  affected,  if  it  can  be readily ascertained that there is such super-
    20  intendent or other person in charge.
    21    (b) In lieu of personal delivery to the person  or  persons,  firm  or
    22  corporation specified in paragraph (a) [above] of this subdivision, such
    23  notice may be mailed in a postpaid wrapper to the address of such person
    24  or persons, firm or corporation.
    25    (c)  In  addition  to the notice prescribed by paragraph (a) or (b) of
    26  this subdivision, fifteen days written notice shall be (i) posted in the
    27  public areas of such multiple dwelling, (ii) mailed to the "Occupant" of
    28  each unit in that multiple dwelling, (iii) mailed to  the  local  health
    29  officer  and  the director of the social services district for the poli-
    30  tical subdivision in which the multiple dwelling is located, (iv) if the
    31  multiple dwelling is located in a city or a village, mailed to the mayor
    32  thereof, or if there be none, to the manager, or, if the multiple dwell-
    33  ing is located in a town, then mailed to the town supervisor, (v) mailed
    34  to the county executive of the county in which the multiple dwelling  is
    35  located, or if there be none, then to the [chairman] chairperson of such
    36  county's legislative body, and (vi) mailed to the office of the New York
    37  state  long  term care ombudsman, if the multiple dwelling is a residen-
    38  tial health care facility as defined in  subdivision  three  of  section
    39  twenty-eight hundred one of the public health law, an adult care facili-
    40  ty  as  defined  in  subdivision twenty-one of section two of the social
    41  services law, or an assisted living residence as defined in  subdivision
    42  one  of  section forty-six hundred fifty-one of the public health law as
    43  added by chapter two of the laws of two thousand four.  Notice  required
    44  by  subparagraphs  (iv)  and  (v) of this paragraph may be mailed to the
    45  persons specified therein or to their respective designees.  The  notice
    46  required  by this paragraph shall state [the intended date of discontin-
    47  uance of service,] the amount due for such service, and  [the  procedure
    48  by  which  any tenant or public agency may make such payment and thereby
    49  avoid discontinuance of service] that the utility will  not  discontinue
    50  service  and  shall  seek  the  appointment  of  a  receiver of rents or
    51  payments against the owner.  The notice shall be  in  clear  and  under-
    52  standable  language and provided in any language required by the commis-
    53  sion pursuant to section forty-four of this article, provided  that  any
    54  more  expansive  language  requirement established as part of settlement
    55  with the commission or department shall be followed.

        A. 8712--B                          3
 
     1    [(d) The written notice required by subparagraphs (iii), (iv), (v) and
     2  (vi) of paragraph (c) of this subdivision shall  be  repeated  not  more
     3  than four days nor less than two days prior to such discontinuance.
     4    1-a. Whenever a notice of intention to discontinue utility service has
     5  been  made  pursuant  to  the provisions of this section and obligations
     6  owed the utility or municipality have been  satisfied,  the  utility  or
     7  municipality  shall notify, in the same manner as it gave such notice of
     8  intention, the occupant of each unit that the intention  to  discontinue
     9  utility service no longer exists.]
    10    2.  (a)  Following  the  notification  of  intent to seek an action as
    11  outlined in subdivision one of this section, a utility  corporation  may
    12  petition  the  court  of  competent  jurisdiction  for  appointment of a
    13  receiver of rents or payments for use and occupancy or  common  charges,
    14  as  defined  in section three hundred thirty-nine-e of the real property
    15  law, for any dwelling which the owner or the person, firm or corporation
    16  who received such notification is in default. The court shall  issue  an
    17  order  to show cause why a receiver should not be appointed, which shall
    18  be served upon the owner, the building's lessor, manager, or their agent
    19  in a manner prescribed by the court which shall include posting of  such
    20  order  on the premises of such multiple dwelling in question in a manner
    21  similar to paragraph (c) of subdivision one of this section. If a  peti-
    22  tion  or  petitions are filed by a single petitioner regarding more than
    23  one building under the same ownership, the court shall, if  practicable,
    24  appoint  a common receiver for all such buildings and, if filed as sepa-
    25  rate actions, may consolidate such petitions and treat them as a  single
    26  action.
    27    (b)  A  hearing  shall be held on such order no later than seventy-two
    28  hours after its issuance or the first court  day  thereafter.  The  sole
    29  purpose  of  such  a  hearing  shall be to determine whether there is an
    30  amount owed between the owner and the  utility  corporation.  The  court
    31  shall  make  a  determination of any amount due and any amount so deter-
    32  mined shall constitute a lien upon the real property of such  owner.  If
    33  after  determination  of  any  amount  due  by  the court the owner, the
    34  building's lessor, manager, or their agent petitions  the  court  to  be
    35  permitted  to  pay  such amounts, the court may, in lieu of appointing a
    36  receiver, issue an order permitting such owner, the  building's  lessor,
    37  manager,  or  agent  to  repay  the  amounts due the petitioning utility
    38  corporation within a time fixed by the court. If at the  time  fixed  in
    39  the order the amounts have not been repaid, the court shall appoint such
    40  receiver. Such lien shall include:
    41    (i)  the  name  and  address of the utility corporation, including any
    42  doing business as name or the corporation;
    43    (ii) the name and address of the corporation's attorney, if any;
    44    (iii) the name of the owner of the real property or properties against
    45  which such unpaid utility bills exist;
    46    (iv) the amount unpaid to the lienor for such arrearage; and
    47    (v) the property or properties  subject    to    the    lien,  with  a
    48  description  thereof  sufficient for identification; and if in a city or
    49  village, the property or properties location(s) by street and number.
    50    Such lien shall be filed  in   the   clerk's   office   of the  county
    51  where  the property or properties is situated. If such property or prop-
    52  erties is situated in  two  or   more   counties,   such lien  shall  be
    53  filed in the office of the clerk of each of such counties.
    54    (c)  As  soon  as  practicable,  but  no  more than ten days after the
    55  receipt of the order of appointment  of  such  receiver,  such  receiver
    56  shall  provide written notice to all occupants of the building or build-

        A. 8712--B                          4
 
     1  ings, delivered separately to  each  dwelling  unit,  stating  that  the
     2  receiver  has  been  authorized to collect all rents or payments for use
     3  and occupancy or common charges, as defined  in  section  three  hundred
     4  thirty-nine-e  of  the real property law due from such occupant and that
     5  the owner, the building's lessor, manager, or their agent is  prohibited
     6  from  collecting such rents or payments for use and occupancy, or common
     7  charges. The notice shall additionally be  sent  to  those  outlined  in
     8  paragraph  (c)  of  subdivision  one  of this section. Such notice shall
     9  include the address to which payments are to be  made  and  the  contact
    10  information  with  which  the  receiver  will  be contacted, which shall
    11  include at a minimum a telephone number. The notice shall  be  in  clear
    12  and understandable language and provided in any language required by the
    13  commission pursuant to section forty-four of this chapter, provided that
    14  any  more  expansive language requirement established as part of settle-
    15  ment between the commission or department and the  petitioner  shall  be
    16  followed.  A copy of the court order appointing the receiver and author-
    17  izing the collection of rents shall be attached to the notice.
    18    (d) The receiver appointed by the court shall  collect  all  rents  or
    19  payments  for  use  and occupancy or common charges forthcoming from the
    20  occupants of the building or buildings  in  question  in  place  of  the
    21  owner,  the  building's  lessor,  manager, or any agent. The court shall
    22  authorize the receiver to utilize such collected rents or payments   for
    23  expenses  reasonably  necessary to continue the operation and management
    24  of such building or buildings,  make  reasonable  repairs,  and  provide
    25  reasonable maintenance to the premises as determined by the court and in
    26  accordance  with  section two hundred thirty-five-b of the real property
    27  law,  the reasonable cost of which, should such actions not  be  covered
    28  by  the  rents  or payments received, shall be added to the total amount
    29  due and owing from the owner. The receiver may also petition  the  court
    30  in  order  to  recover  amounts due as determined under paragraph (b) of
    31  this subdivision and continuing charges for such gas, electric, or steam
    32  service until all such charges and other costs have been paid.
    33    (e) The receiver shall pay the petitioner or other supplier from  such
    34  rents  or payments for use and occupancy or common charges for electric,
    35  gas, water, or steam, supplied on and after the date of  their  appoint-
    36  ment. The owner, the building's lessor, manager, or their agent shall be
    37  liable  for such reasonable fees and costs determined by the court to be
    38  due to the receiver, which fees and costs  may  be  recovered  from  the
    39  rents or payments for use and occupancy under the control of the receiv-
    40  er,  provided  no  such fees or costs shall be recovered until after the
    41  payment for current electric, gas, water, or  steam  delivery  has  been
    42  made.  Any moneys from rental payments or payments for use and occupancy
    43  or common charges remaining after payment  for  current  electric,  gas,
    44  steam and water service deliveries, for expenses reasonably necessary to
    45  continue  the  operation and management of such building or buildings as
    46  determined by the court and in accordance with section two hundred thir-
    47  ty-five-b of the real property law, and  after  payment  for  reasonable
    48  costs  and fees to the receiver, shall be applied to any arrearage found
    49  by the court to be due and owing the petitioner from the owner or  their
    50  agent  for  service  provided  to such building or buildings. Any moneys
    51  remaining thereafter shall be turned over to the owner,  the  building's
    52  lessor, manager, or their agent. The court may order an accounting to be
    53  made  at  such times as it determines to be just, reasonable, and neces-
    54  sary.
    55    (f) For the purposes of this  section,  the  department  charged  with
    56  enforcing  the  multiple  dwelling  law  shall prepare a schedule of all

        A. 8712--B                          5
 
     1  multiple dwellings within its jurisdiction and shall provide a  copy  of
     2  such  schedule to any gas, steam or electric corporation or municipality
     3  subject to the provisions  of  this  section.  Such  schedule  shall  be
     4  revised  semi-annually  and a revised copy provided to such corporation.
     5  Every county, and every municipality to which the multiple dwelling  law
     6  does  not  apply, which county or municipality has compiled or hereafter
     7  may compile a listing of all multiple dwellings within its  jurisdiction
     8  shall  make  such  listing available without charge to any gas, steam or
     9  electric corporation providing service in such county or municipality.
    10    3. [Any gas, electric or steam corporation or municipality which will-
    11  fully fails to comply with the  provisions  of  this  section  shall  be
    12  liable  for  a  penalty of twenty-five dollars for each occupied unit of
    13  the multiple dwelling for each day during which  service  is  unlawfully
    14  discontinued;  provided, however, that when the only non-compliance with
    15  this section is failure to mail notice to each "Occupant" as required by
    16  clause (ii) of paragraph (c) of subdivision one above the penalty  shall
    17  be  twenty-five  dollars for each occupied unit of the multiple dwelling
    18  to which notice was not mailed for each  day  during  which  service  is
    19  unlawfully  discontinued.  An  action  to  recover  a penalty under this
    20  section may be brought by the counsel to the commission in any court  of
    21  competent  jurisdiction  in  this state in the name of the people of the
    22  state of New York. Any moneys recovered in such action shall be paid  to
    23  the state treasury to the credit of the general fund.
    24    4.]   Any receivership established pursuant to subdivision two of this
    25  section shall be terminated by  the  court  upon  its  finding,  through
    26  notification  by  the receiver, that the arrearage which was the subject
    27  of the original petition has been satisfied, or that  the  building  has
    28  been  sold  and  the  new  owner  has  assumed liability for prospective
    29  service supplied by the petitioner. Upon the court's termination of  any
    30  receivership  established  pursuant  to subdivision two of this section,
    31  the receiver shall provide written notice to all occupants of the build-
    32  ing or buildings, delivered in the same manner as notification was  sent
    33  pursuant  to  paragraph  (c) of subdivision two of this section, stating
    34  that the receivership has been terminated by the court  and  the  owner,
    35  the  building's  lessor,  manager, or their agent is again authorized to
    36  collect rents or payments for use and occupancy, or common charges.
    37    4. Nothing in this section shall prevent the petitioner from  pursuing
    38  any other action or remedy it may have against the owner, the building's
    39  lessor, manager, or their agent.
    40    5.  Nothing  in  this  section  shall prevent an action by a tenant or
    41  tenants from pursuing any other  action  or  remedy  available  to  them
    42  against  the owner or their agent, or limit any provision of law provid-
    43  ing for the protection or rights of a tenant in regards to eviction.
    44    6. Any owner or agent of  such  owner  who  collects  or  attempts  to
    45  collect any rent or payment for use and occupancy from any occupant of a
    46  building  subject  to an order appointing a receiver may be found, after
    47  due notice and hearing, to be in contempt of court.
    48    7. Any person who willfully interferes with the posting of the  notice
    49  specified  in  [clause] subparagraph (i) of paragraph (c) of subdivision
    50  one [above], subdivision two, or in subdivision three of this section by
    51  any gas, steam or electric corporation or municipality, or agent of  the
    52  court  willfully  defaces  or  mutilates  any  such notice, or willfully
    53  removes the same from the place where it is posted by  such  company  or
    54  court  agent prior to the date specified therein for the [discontinuance
    55  of service] notice to seek lien, order  to  show  cause,  or  notice  of
    56  termination  of  receiver  shall  be  guilty  of  a  violation and, upon

        A. 8712--B                          6

     1  conviction, shall be  punished  by  a  fine  not  exceeding  twenty-five
     2  dollars.
     3    [5.  The  commission  shall  maintain  rules  and  regulations for the
     4  payment by tenants of utility bills for gas, electric or  steam  service
     5  in  a multiple dwelling to which this section applies where the owner of
     6  any such multiple dwelling, or the person, firm or corporation  to  whom
     7  or which the last preceding bill has been rendered or from whom or which
     8  the utility or municipality has received payment therefor, has failed to
     9  pay  such  utility  bills.  Such rules and regulations shall (a) provide
    10  that utility service may not be discontinued to any such multiple dwell-
    11  ing as long as the tenants continue to make timely payments  in  accord-
    12  ance  with  established procedures; (b) include designation of an office
    13  to advise tenants of the rights and  procedures  available  pursuant  to
    14  such  rules and regulations; (c) assure that tenants shall not be liable
    15  for bills more than two months in arrears; and (d) require  the  commis-
    16  sion  upon petition of twenty-five percent of the tenants of such multi-
    17  ple dwelling to meet with representatives of such tenants and the owner,
    18  person, firm or corporation to whom or which the last preceding bill has
    19  been rendered or from whom or which the  utility  has  received  payment
    20  therefor.]
    21    §  3. Section 116 of the public service law, as amended by chapter 713
    22  of the laws of 1981, subdivision 5 as separately amended by chapter  511
    23  of the laws of 1981, is amended to read as follows:
    24    § 116. [Discontinuance of water service to multiple dwellings.] Action
    25  for  receivership  of  rents  and  common  charges  on residential water
    26  service to multiple dwellings. 1. Notwithstanding any  other  provisions
    27  of  law, no public utility company shall discontinue water service to an
    28  entire multiple dwelling (as defined in the multiple dwelling law or the
    29  multiple residence law) located anywhere in this state for nonpayment of
    30  bills rendered for service [unless such]. A public  utility  company  or
    31  municipality  may  commence  an action against the owner of the premises
    32  affected seeking the appointment of a receiver of rents or payments  for
    33  use and occupancy or common charges, as defined in section three hundred
    34  thirty-nine-e  of  the real property law, against such multiple dwelling
    35  for the amount of such utility bills. A utility shall have given fifteen
    36  days' written notice of its intention  so  to  [discontinue]  seek  such
    37  appointment of receiver as follows:
    38    (a)  Such  notice shall be served personally on the owner of the prem-
    39  ises affected, or in lieu thereof, to the person, firm,  or  corporation
    40  to whom or which the last preceding bill has been rendered and from whom
    41  or  which  the  utility has received payment therefor, and to the super-
    42  intendent or  other  person  in  charge  of  the  building  or  premises
    43  affected,  if  it  can  be readily ascertained that there is such super-
    44  intendent or other person in charge.
    45    (b) In lieu of personal delivery to the person  or  persons,  firm  or
    46  corporation specified in paragraph (a) [above] of this subdivision, such
    47  notice may be mailed in a postpaid wrapper to the address of such person
    48  or persons, firm or corporation.
    49    (c)  In  addition  to  the  notice  prescribed by paragraph (a) or (b)
    50  [above] of this subdivision, fifteen days' written notice shall  be  (i)
    51  posted in the public areas of such multiple dwelling, (ii) mailed to the
    52  "Occupant"  of  each unit in that multiple dwelling, (iii) mailed to the
    53  local health officer and the director of the  social  services  district
    54  for the political subdivision in which the multiple dwelling is located,
    55  (iv)  if the multiple dwelling is located in a city or a village, mailed
    56  to the mayor thereof, or if there be none, to the manager,  or,  if  the

        A. 8712--B                          7
 
     1  multiple dwelling is located in a town, then mailed to the town supervi-
     2  sor,  and  (v) mailed to the county executive of the county in which the
     3  multiple dwelling is located, or if there be none, then to  the  [chair-
     4  man]  chairperson  of such county's legislative body. Notice required by
     5  subparagraphs (iv) and (v) of  this  paragraph  may  be  mailed  to  the
     6  persons  specified  therein or to their respective designees. The notice
     7  required by this paragraph shall state the [intended date of  discontin-
     8  uance  of  service, the] amount due for such service, and [the procedure
     9  by which any tenant or public agency may make such payment  and  thereby
    10  avoid  discontinuance  of service] that the utility will not discontinue
    11  service and shall seek  the  appointment  of  a  receiver  of  rents  or
    12  payments against the owner. The notice shall be in clear and understand-
    13  able  language  and  provided in any language required by the commission
    14  pursuant to section forty-four of this chapter, provided that  any  more
    15  expansive  language  requirement  established as part of settlement with
    16  the commission or department shall be followed.
    17    [(d) The written notice required by clauses (iii),  (iv)  and  (v)  of
    18  paragraph  (c)  above shall be repeated not more than four days nor less
    19  than two days prior to such discontinuance.
    20    1-a. Whenever a notice of intention to discontinue utility service has
    21  been made pursuant to the provisions of  this  section  and  obligations
    22  owed  the  utility have been satisfied, the utility shall notify, in the
    23  same manner as it gave such notice of intention, the  occupant  of  each
    24  unit  that  the  intention  to  discontinue  utility  service  no longer
    25  exists.]
    26    2. (a) Following the notification of  intent  to  seek  an  action  as
    27  outlined  in  subdivision one of this section, a utility corporation may
    28  petition the court  of  competent  jurisdiction  for  appointment  of  a
    29  receiver  of  rents or payments for use and occupancy or common charges,
    30  as defined in section three hundred thirty-nine-e of the  real  property
    31  law, for any dwelling which the owner or the person, firm or corporation
    32  who  received  such notification is in default. The court shall issue an
    33  order to show cause why a receiver should not be appointed, which  shall
    34  be served upon the owner, the building's lessor, manager, or their agent
    35  in  a manner prescribed by the court which shall include posting of such
    36  order on the premises of such multiple dwelling in question in a  manner
    37  similar  to paragraph (c) of subdivision one of this section. If a peti-
    38  tion or petitions are filed by a single petitioner regarding  more  than
    39  one  building under the same ownership, the court shall, if practicable,
    40  appoint a common receiver for all such buildings and, if filed as  sepa-
    41  rate  actions, may consolidate such petitions and treat them as a single
    42  action.
    43    (b) A hearing shall be held on such order no  later  than  seventy-two
    44  hours  after  its  issuance  or the first court day thereafter. The sole
    45  purpose of such a hearing shall be to  determine  whether  there  is  an
    46  amount  owed  between  the  owner and the utility corporation. The court
    47  shall make a determination of any amount due and any  amount  so  deter-
    48  mined  shall  constitute a lien upon the real property of such owner. If
    49  after determination of any amount  due  by  the  court  the  owner,  the
    50  building's  lessor,  manager,  or  their agent petitions the court to be
    51  permitted to pay such amounts, the court may, in lieu  of  appointing  a
    52  receiver,  issue  an order permitting such owner, the building's lessor,
    53  manager, or agent to repay  the  amounts  due  the  petitioning  utility
    54  corporation  within  a  time fixed by the court. If at the time fixed in
    55  the order the amounts have not been repaid, the court shall appoint such
    56  receiver. Such lien shall include:

        A. 8712--B                          8
 
     1    (i) the name and address of the  utility  corporation,  including  any
     2  doing business as name or the corporation;
     3    (ii) the name and address of the corporation's attorney, if any;
     4    (iii) the name of the owner of the real property or properties against
     5  which such unpaid utility bills exist;
     6    (iv) the amount unpaid to the lienor for such arrearage; and
     7    (v)  the  property  or  properties subject   to   the   lien,   with a
     8  description thereof sufficient for identification; and if in a  city  or
     9  village, the property or properties location(s) by street and number.
    10    Such  lien  shall be filed   in   the   clerk's  office  of the county
    11  where the property or properties is situated. If such property or  prop-
    12  erties  is  situated in   two   or   more  counties,  such lien shall be
    13  filed in the office of the clerk of each of such counties.
    14    (c) As soon as practicable, but  no  more  than  ten  days  after  the
    15  receipt  of  the  order  of  appointment of such receiver, such receiver
    16  shall provide written notice to all occupants of the building or  build-
    17  ings,  delivered  separately  to  each  dwelling  unit, stating that the
    18  receiver has been authorized to collect all rents or  payments  for  use
    19  and  occupancy  or  common  charges, as defined in section three hundred
    20  thirty-nine-e of the real property law due from such occupant  and  that
    21  the  owner, the building's lessor, manager, or their agent is prohibited
    22  from collecting such rents or payments for use and occupancy, or  common
    23  charges.  The  notice  shall  additionally  be sent to those outlined in
    24  paragraph (c) of subdivision one of  this  section.  Such  notice  shall
    25  include  the  address  to  which payments are to be made and the contact
    26  information with which the  receiver  will  be  contacted,  which  shall
    27  include  at  a  minimum a telephone number. The notice shall be in clear
    28  and understandable language and provided in any language required by the
    29  commission pursuant to section forty-four of this chapter, provided that
    30  any more expansive language requirement established as part  of  settle-
    31  ment  between  the  commission or department and the petitioner shall be
    32  followed. A copy of the court order appointing the receiver and  author-
    33  izing the collection of rents shall be attached to the notice.
    34    (d)  The  receiver  appointed  by the court shall collect all rents or
    35  payments for use and occupancy or common charges  forthcoming  from  the
    36  occupants  of  the  building  or  buildings  in question in place of the
    37  owner, the building's lessor, manager, or any  agent.  The  court  shall
    38  authorize  the receiver to utilize such collected rents or payments  for
    39  expenses reasonably necessary to continue the operation  and  management
    40  of  such  building  or  buildings,  make reasonable repairs, and provide
    41  reasonable maintenance to the premises as determined by the court and in
    42  accordance with section two hundred thirty-five-b of the  real  property
    43  law,    the reasonable cost of which, should such actions not be covered
    44  by the rents or payments received, shall be added to  the  total  amount
    45  due  and  owing from the owner. The receiver may also petition the court
    46  in order to recover amounts due as determined  under  paragraph  (b)  of
    47  this subdivision and continuing charges for such gas, electric, or steam
    48  service until all such charges and other costs have been paid.
    49    (e)  The receiver shall pay the petitioner or other supplier from such
    50  rents or payments for use and occupancy or common charges for  electric,
    51  gas,  water,  or steam, supplied on and after the date of their appoint-
    52  ment. The owner or their agent shall be liable for such reasonable  fees
    53  and  costs determined by the court to be due to the receiver, which fees
    54  and costs may be recovered from the rents or payments for use and  occu-
    55  pancy  under the control of the receiver, provided no such fees or costs
    56  shall be recovered until after the payment for  current  electric,  gas,

        A. 8712--B                          9

     1  water,  or steam delivery has been made. Any moneys from rental payments
     2  or payments for use and occupancy  or  common  charges  remaining  after
     3  payment  for  current electric, gas, steam and water service deliveries,
     4  for  expenses reasonably necessary to continue the operation and manage-
     5  ment of such building or buildings as determined by  the  court  and  in
     6  accordance  with  section two hundred thirty-five-b of the real property
     7  law, and after payment for reasonable costs and fees  to  the  receiver,
     8  shall be applied to any arrearage found by the court to be due and owing
     9  the  petitioner  from  the  owner or their agent for service provided to
    10  such building or buildings. Any moneys  remaining  thereafter  shall  be
    11  turned  over  to  the  owner,  the  building's lessor, manager, or their
    12  agent. The court may order an accounting to be made at such times as  it
    13  determines to be just, reasonable, and necessary.
    14    (f)  For  the  purposes  of  this section, the department charged with
    15  enforcing the multiple dwelling law shall  prepare  a  schedule  of  all
    16  multiple  dwellings  within its jurisdiction and shall provide a copy of
    17  such schedule to any water corporation subject to the provisions of this
    18  section. Such schedule shall be revised semi-annually and a revised copy
    19  provided to such corporation. Every county, and  every  municipality  to
    20  which  the multiple dwelling law does not apply, which county or munici-
    21  pality has compiled or hereafter may compile a listing of  all  multiple
    22  dwellings  within  its  jurisdiction  shall  make such listing available
    23  without charge to any water corporation providing service in such county
    24  or municipality.
    25    3. [Any water corporation which willfully fails  to  comply  with  the
    26  provisions  of this section shall be liable for a penalty of twenty-five
    27  dollars for each occupied unit of the multiple  dwelling  for  each  day
    28  during which service is unlawfully discontinued; provided, however, that
    29  when the only non-compliance with this section is failure to mail notice
    30  to each "Occupant" as required by clause (ii) of paragraph (c) of subdi-
    31  vision one above the penalty shall be twenty-five dollars for each occu-
    32  pied  unit  of  the multiple dwelling to which notice was not mailed for
    33  each day during which service is unlawfully discontinued.  An action  to
    34  recover  a  penalty  under this section may be brought by the counsel to
    35  the commission in any court of competent jurisdiction in this  state  in
    36  the name of the people of the state of New York. Any monies recovered in
    37  such  action  shall  be  paid to the state treasury to the credit of the
    38  general fund.
    39    4.] Any receivership established pursuant to subdivision two  of  this
    40  section  shall  be  terminated  by  the  court upon its finding, through
    41  notification by the receiver, that the arrearage which was  the  subject
    42  of  the  original  petition has been satisfied, or that the building has
    43  been sold and the  new  owner  has  assumed  liability  for  prospective
    44  service  supplied by the petitioner. Upon the court's termination of any
    45  receivership established pursuant to subdivision two  of  this  section,
    46  the receiver shall provide written notice to all occupants of the build-
    47  ing  or buildings, delivered in the same manner as notification was sent
    48  pursuant to paragraph (c) of subdivision two of  this  section,  stating
    49  that  the  receivership  has been terminated by the court and the owner,
    50  the building's lessor, manager, or their agent is  again  authorized  to
    51  collect rents or payments for use and occupancy, or common charges.
    52    4.  Nothing in this section shall prevent the petitioner from pursuing
    53  any other action or remedy it may have against the owner or their agent.
    54    5. Nothing in this section shall prevent an  action  by  a  tenant  or
    55  tenants  from  pursuing  any  other  action  or remedy available to them

        A. 8712--B                         10
 
     1  against the owner or their agent, or limit any provision of law  provid-
     2  ing for the protection or rights of a tenant in regards to eviction.
     3    6.  Any  owner  or  agent  of  such  owner who collects or attempts to
     4  collect any rent or payment for use and occupancy from any occupant of a
     5  building subject to an order appointing a receiver may be  found,  after
     6  due notice and hearing, to be in contempt of court.
     7    7.  Any person who willfully interferes with the posting of the notice
     8  specified in [clause] subparagraph (i) of paragraph (c)  of  subdivision
     9  one,  subdivision  two, and subdivision three [above] of this section by
    10  any water corporation or agent of the court, willfully defaces or  muti-
    11  lates  any  such  notice,  or  willfully removes the same from the place
    12  where it is posted by such company or court  agent  prior  to  the  date
    13  specified  therein  for  the  [discontinuance of service] notice to seek
    14  lien, order to show cause, or notice of termination of receiver shall be
    15  guilty of a violation and, upon conviction, shall be punished by a  fine
    16  not exceeding twenty-five dollars.
    17    [5.  The  commission  shall  maintain  rules  and  regulations for the
    18  payment by tenants of utility bills for  water  service  in  a  multiple
    19  dwelling  to  which  this  section  applies  where the owner of any such
    20  multiple dwelling, or the person, firm or corporation to whom  or  which
    21  the  last  preceding  bill  has  been rendered or from whom or which the
    22  utility has received payment therefore, has failed to pay  such  utility
    23  bills. Such rules and regulations shall (i) provide that utility service
    24  may  not  be  discontinued  to any such multiple dwelling as long as the
    25  tenants continue to make timely payments in accordance with  established
    26  procedures;  (ii)  include designation of an office to advise tenants of
    27  the rights and procedures available pursuant to  such  rules  and  regu-
    28  lations;  (iii)  assure  that tenants shall not be liable for bills more
    29  than two months in arrears; and (iv) require the commission  upon  peti-
    30  tion  of twenty-five percent of the tenants of such multiple dwelling to
    31  meet with representatives of such tenants and the owner, person, firm or
    32  corporation to whom or which the last preceding bill has  been  rendered
    33  or from whom or which the utility has received payment therefore.]
    34    §  4.  This  act shall take effect on the ninetieth day after it shall
    35  have become a law.
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